Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — ESG Presentation (November 2020)
39 slides from Huhtamaki Oyj's sustainability presentation, Nov 9, 2020
Slide 1: Building our sustainability legacy
Building our sustainability legacy Charles Héaulmé, President and CEO Thomasine Kamerling, EVP Sustainability and Communications November 9, 2020
Slide 2: We serve food-on-the-go and food-on-the-shelf
We serve food-on-the-go and food-on-the-shelf Food-on-the-go Food-on-the-shelf Markets & Customers QSR Food Delivery FMCG Retail Products Convenience Food safety Food availability Food waste reduction Technologies Foodservice packaging Molded fiber packaging Flexible packaging 2
Slide 3: We operate on a global scale
We operate on a global scale MANUFACTURING UNITS 81 OPERATING COUNTRIES 35 EMPLOYEES 18,598 Figures for 2019 3
Slide 4: We believe in protecting food, people and the planet
We believe in protecting food, people and the planet … enabling wellbeing and convenience for people around the world
Slide 5: Our 2030 Strategy: Protecting food, people and the planet
Our 2030 Strategy Protecting food, people and the planet Our ambition is to be the first choice in sustainable packaging solutions, enabling wellbeing and convenience for people around the world DELIVERING DRIVING DEVELOPING GROWTH COMPETITIVENESS TALENT EMBEDDING SUSTAINABILITY IN EVERYTHING WE DO
Slide 6: First choice in sustainable packaging solutions
We are focused on creating value Our ambition First choice in sustainable packaging solutions Comparable growth Adjusted EBIT margin Net debt/Adjusted EBITDA Dividend payout ratio 5+% 10+% 2-3 40-50% Carbon neutral 100% >80% 100% >90% 100% production of products designed renewable or recycled of fib
Slide 7: Our strategy builds on transformative trends impacting the future of packaging
Our strategy builds on transformative trends impacting the future of packaging – The next billion consumers will come from emerging markets – Future consumer will require packaging to be innovative, individual and sustainable – Digitalization will influence packaging and the way we do business – Sus
Slide 8: How we define sustainability
How we define sustainability ENVIRONMENTAL ‐ Raw materials used ‐ Production process ‐ Product end-of-life SOCIAL ‐ Working conditions ‐ Human rights, fair living wage ‐ Local communities GOVERNANCE ‐ Global Code of Conduct ‐ Ethics and compliance ‐ Corporate governance and management policies 8
Slide 9: Sustainability is complex and is still being defined
Sustainability is complex and is still being defined Consumer perceptions around packaging An evolving regulatory agenda – Impact of climate change – Legislation emerging across all – The industry is seen as responsible geographies and must find solutions – Spearheaded by EU Green economy – Litter i
Slide 10: The value of packaging is more than its impact on the planet
We believe that the value of packaging is more than its impact on the planet … Food availability Food safety and hygiene Food waste prevention … and there is so much more packaging will do 10
Slide 11: Embedding sustainability in everything we do
Embedding sustainability in everything we do Thomasine Kamerling, EVP Sustainability and Communications November 9, 2020
Slide 12: Demand for food is increasing, food systems have huge environmental impact
Demand for food … our food systems is increasing … already have a huge impact on the environment 12
Slide 13: By 2050 the world population will surpass 9 billion
By 2050 the world population By then, food production will surpass must be increased by 135 million 9 billion 70% people still suffer to meet the demand from acute hunger 25% 1/3 70% of global greenhouse gas of all food produced is wasted of the world’s fresh water emissions today withdrawal is used
Slide 14: Packaging helps …
Packaging helps … Keeps food safe from spoilage and preserves its original properties Delivers hygiene and safety… helps prevent the spread of disease Ensures food availability globally and allows food to be transported affordably Preserves food in edible condition, longer 14
Slide 15: … but clearly comes with its own challenges
… but clearly comes with its own challenges 8 million tons of plastic end up in oceans every year 1/3 people worldwide have to dump or burn their waste, causing the spread of disease, polluting the oceans and adding to the climate crisis Source: International Union for Conservation of nature; Waste
Slide 16: We are facing a progress paradox within packaging
We are facing a progress paradox within packaging ... Less packaging More packaging driven by regulatory driven by agenda consumer need *packaging represents 1% of global Green House Gas emissions, while food waste represents 8% Source: Climate Collaborative 16
Slide 17: The debate shouldn't be about more or less
The debate ... it should be about shouldn’t be about smarter, better and more or less ... more sustainable 17
Slide 18: Smarter, better, more sustainable packaging is grounded in facts
Smarter, better, more sustainable packaging is grounded in facts ... Life Cycle Assessments are a critical tool for fact- based decision making ‐ Paper and fiber are renewable and recyclable ‐ In many cases, there is no viable alternative to polymers (with the same properties) ‐ Paperboard single-us
Slide 19: We believe in ...
We believe in ... ‐ Prioritizing renewable sources & recycling ‐ Innovation is the key to unlocking sustainability ‐ Digitalization is essential for collection and recycling ‐ Partnering to innovate, develop collection & recycling infrastructure will make the difference ‐ Consumer behavior change, t
Slide 20: We have an ambitious 2030 sustainability agenda
We have an ambitious 2030 sustainability agenda Our ambition First choice in sustainable packaging solutions Carbon neutral 100% >80% 100% >90% 100% production of products designed renewable or recycled of fiber from recycled of non-hazardous renewable and science-based to be recyclable, materials o
Slide 21: We select the best raw materials from suppliers we trust
We select the best raw materials from suppliers we trust How we deliver on our ambition Our 2030 ambition Materials ‐ Continuous product innovation, with special effort on plastic substitution >80% Renewable or recycled ‐ R&D to improve the composition of our products (~67% today) material Certified
Slide 22: We strive to reduce resource consumption and use renewable energy
We strive to reduce resource consumption and use renewable energy How we deliver on our ambition Our 2030 ambition Energy 100% Renewable electricity ‐ Shift to renewable energy sources and reach carbon neutral production (~5% today) ‐ Taking a holistic approach: avoid emissions, reduce emissions, re
Slide 23: Safe working environment and respect for human rights
We work relentlessly to ensure a safe working environment and respect for human rights, throughout our value chain How we deliver on our ambition Our 2030 ambition Occupational Health and Safety ‐ Provide the most engaging, motivating and safest workplace for our people Zero Accident culture ‐ Raise
Slide 24: We minimize and recycle our production waste
We minimize and recyle our production waste How we deliver our ambition Our 2030 ambition Minimize production waste ‐ Measure precisely material waste generated; report and classify >90% Of non-hazardous waste recycled ‐ Analyze and identify root causes for waste modes, targeting eradication (~71% t
Slide 25: Our products are designed for the circular economy
Our products are designed for the circular economy How we deliver on our ambition Our 2030 ambition Product design ‐ Formalize the Huhtamaki design guide for circularity ‐ Key definitions Products designed to be ‐ Guiding principles for product development 100% recyclable, compostable, ‐ Material gu
Slide 26: Our Global Sustainability Dashboard - Q3 2020
Our Global Sustainability Dashboard - Q3 2020 Our Global Sustainability Dashboard - Q3 2020 Renewable or recycled materials Renewable electricity Non-hazardous waste recycled Health and safety (% of total materials, mass) (% of total electricity consumed, MWh) (% of total non-haz. Waste, mass) Lost
Slide 27: We partner across the value chain to address challenges
We partner across the value chain to address challenges and create a common understanding Trade associations Facilitate fact-based discussion between packaging Advocacy industry and regulators to create a favorable environment for innovation Cross value chain initiatives Thought Develop the vision f
Slide 28: Delivering incremental innovation for our customers every day
Delivering incremental innovation for our customers every day ... Picadeli saves 42 000 kg of Future Smart plastic every year ‐ Reduced PE coating by 50%, from 2 layers to just 1 layer ‐ Uses renewable materials and 30% recycled fiber ‐ Manufactured by Huhtamaki 100% renewable FutureSmart product li
Slide 29: Developing new sustainable and transformative products
... and developing new sustainable and transformative products Blueloop technology Fresh Mars, with SABIC and Huhtamaki, Introduces Recycled Content into Petfood Packaging to Support a Circular Economy Fiber lids and other products Paper straws Fully commercialized Recently launched 29
Slide 30: We also partner to spearhead change through pilot projects
We also partner to spearhead change through pilot projects Acting today Educating for tomorrow Innovating for the future – Donation of 0.6 MEUR to clean plastic – Donation of 0.9 MEUR to provide – Donation of 1 MEUR to run a start-up waste from the Mithi river in Mumbai, education and training on wa
Slide 31: Our ESG focus has been recognized externally
Our ESG focus has been recognized externally Climate aware ‐ Huhtamaki achieved a rating of ”A” in the MSCI ESG rating (Aug 2020) ‐ Rating upgraded from ”BBB”, where it has been last 4 years ‐ A-rating places us in industry top 3 ‐ Although the result is good, there is significant improvement potent
Slide 32: Looking to the Future
Looking to the Future Huhtamaki
Slide 33: We have an ambitious 2030 sustainability agenda
We have an ambitious 2030 sustainability agenda Our ambition First choice in sustainable packaging solutions Carbon neutral 100% >80% 100% >90% 100% production of products designed renewable or recycled of fiber from recycled of non-hazardous renewable and science-based to be recyclable, materials o
Slide 34: As an advanced manufacturer, we are at the center of the value chain
As an advanced manufacturer, we are at the center of value chain Raw material Suppliers Huhtamaki Customers Consumers Innovation themes Innovation focus Renewable materials We identify, enable Simplified composition and monetize Design for circularity sustainable Ease of recycling innovation across
Slide 35: What is needed to drive systemic change
What is needed to drive systemic change Innovating for circularity Promoting renewable sources & recycling Developing collection & recycling infrastructure Investing in education Behaving responsibly Innovation, education, incentivization 35
Slide 36: Future consumers have higher expectations of packaging
Future consumers have higher expectations of packaging Sustainable Safe Traceable 36
Slide 37: Imagine a world where packaging is ...
Imagine a world where packaging is ... Renewable Recycled Smart Carbon neutral All material is from All packaging is collected Packaging is active, Production is carbon neutral, renewable or recycled post-consumption, recycled, intelligent (digital identity) with all waste recycled or sources compos
Slide 38: Thank you!
Thank you! Huhtamaki
Slide 39: Disclaimer
Disclaimer Information presented herein contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or Huhtamäki Oyj’s or its affiliates’ (“Huhtamaki”) future financial performance, including, but not limited to, strategic plans, potential growth, expe