Sustainability Report. A Summary of the Sustainability

Transcription

1 Sustainability Report A Summary of the Sustainability

2 QP 3 QuadPackaging Sustainability Contents LETTER FROM THE PRESIDENT 3 QUADPACKAGING SUSTAINABILITY STATEMENT 4 TRIPLE BOTTOM LINE 5 QUADPACKAGING AREAS OF MATERIALITY MATRIX 6 3E SUSTAINABILITY 8 ENERGY 8 EDUCATION 8 ENVIRONMENT 8 RECYCLING 12 EMPLOYEE 14 SUSTAIN 16 SOCIAL 16 CONTINUOUS IMPROVEMENT 17 SAFETY 17 CUSTOMERS 18 COMMUNITY 22 PROCUREMENT 26 CHAIN OF CUSTODY 27 LOGOS & LABELS 28 WATER 29 ENERGY 30 OUR LONG-TERM STRATEGY 32 QUAD/GRAPHICS ENERGY MANAGEMENT POLICY 34 VENDOR ENERGY 35 Letter From the President Tom Garland, President of QuadPackaging I am pleased to share with you our first sustainability report. When we hosted our first Sustainability Symposium last year, we were determined to release a report that reflects our commitment to sustainability as well as our accountability goals the following year. Even as a new brand formed in 2015, we believe that this is a critical next piece of our evolution. The contents of our inaugural sustainability report highlights our progress in 2016 and underscores our belief that sustainability and profitability go handin-hand. Our report features our 3Es of Sustainability - Energy, Education and Environment - as well as a Triple Bottom Line approach of People, Profit and Planet. We remain dedicated to delivering leading-edge performance to our clients while we develop innovations in sustainable packaging solutions. At the same time, social, economic and political factors are making people more aware of the environment and the impacts of their decisions. Because of this, the role of companies has also evolved. Packaging companies like us must now anticipate and address the needs of consumers quickly and with accountability. Addressing environmental challenges, partnering with our suppliers and supporting the communities where we operate is unquestionably an integral part of how we do business. As we embark on our journey, we recognize that our sustainability program will continue to be a work in progress. In partnership with our vendors, customers and employees, we will continue to imagine more, and create sustainable solutions. PHILANTHROPY QuadPackaging, Inc. All Rights Reserved 09/17

3 QP 4 QP 5 QuadPackaging Sustainability Statement PROFIT EQUITABLE PEOPLE SUSTAINABLE VIABLE BEARABLE PLANET Triple Bottom Line QuadPackaging believes that sustainability and profitability are not mutually exclusive. Corporate social responsibility is common sense and makes good business sense. Managing our resources, investing in people and educating our communities helps us provide responsible products and services without compromising on quality, service or price.» Sustainability and profits go hand-in-hand From the forests to the pressroom and the eventual end life of the product, we understand our responsibility for the planet and the products we produce. Triple bottom line is a phrase introduced by John Elkington in his 1997 book Cannibals With Forks: The Triple Bottom Line of 21st Century Business, which seeks to broaden the focus on a business s financial bottom line to include social and environmental responsibilities. A triple bottom line measures a company s degree of social responsibility, economic value and environmental impact. A key challenge with the triple bottom line, according to Elkington, is the difficulty of measuring the social and environmental bottom lines, which necessitates the three separate accounts being evaluated on their own merits. Elkington J. (1997). Cannibals with Forks: The Triple Bottom Line of 21st Century Business (The Conscientious Commerce Series).

4 QP 6 QP 7 «Education Our partnership with Pine View Wildlife Rehabilitation and Education Center brings us into local schools to engage students on the subject of packaging, and what part they can take in promoting sustainability in their everyday lives. - Stormonth Elementary School, Fox Point, WI, April 2017 QuadPackaging Materiality Matrix When QuadPackaging began to think about our sustainability journey we decided it was critical to explore and itemize our current state before we embarked on any form of reporting. The first step we took was to perform a Materiality Assessment. Simply put, we assessed what our stakeholders found important around environmental, social and governance issues and rated the level of importance in relationship to our business strategy and financial strength. Clear patterns appeared which became QuadPackaging s first Materiality Matrix (see fig.1a). The QuadPackaging Materiality Matrix is a document that will continue to evolve and will be used to track our progress, report data and clearly communicate our journey. It is a powerful tool that makes clear where we have been successful and also where we have work yet to do. QuadPackaging uses the Materiality Matrix as a device to identify where our 3E program (see pg.8) is having impact while keeping us true to our overarching Sustainability Statement. Finally it also ENERGY gives us the ability to start mapping out longer term goals that our customers find important to their businesses. VENDOR ENERGY QUADPACKAGING ENERGY PHILANTHROPY WATER CHAIN OF CUSTODY» Figure 1A QuadPackaging Materiality Matrix ENVIRONMENT RECYCLING COMMUNITY LOGOS & LABELS CUSTOMERS EDUCATION EMPLOYEE SUSTAIN SAFETY CI SOCIAL

5 QP 8 QP 9» Education We are committed to our continuous education as an organization and to share our knowledge freely with our industry, the community and customers. 3E Sustainability Sustainability is a wideranging topic that can be overwhelming at first glance. We determined the need for a more concise way to group sustainability topics. The Three Es of Energy, Education, and Environment were chosen as touchstones to guide our endeavors and assist in making the seemingly complex simple. Throughout this report we will call out the Three Es that each one of our efforts can be linked to with an icon (see pg.8). At times it will be just one icon and at others two or three. Building awareness of the Three Es is one way we ensure that our program is understood and on track. ENERGY EDUCATION ENVIRONMENT Continually assess sustainable energy practices while appreciating the complexities of sustainable energy efforts. Invest in education that promotes understanding and action around packaging sustainability. Engage employees, customers, vendors and the community. Promote and integrate sustainable best practices that support a sustainable environment for employees, customers, vendors and the community.

6 QP 10 QP 11 The manufacturing of packaging requires large amounts of machinery and transportation to create and deliver a world-class product. We need energy to run our plants and are committed to finding creative ways to reduce energy use. This is not only of environmental importance but is simply good business practice. The environment we live in, raise our families in and work in every day is critical to our longevity and success. We are committed to being good stewards by creating programs and goals that support environmental health. It is not only good business but simply the right thing to do. Knowledge of sustainability in the packaging industry is crucial for our continuing evolution into a more sustainable organization and member of our community. You cannot change and make thoughtful decisions that guide corporate strategy on what you do not understand. We are committed to continuous education as an organization and share our knowledge freely with our industry, the community and customers.» Our Commitment to Education Our partnership with Pine View Wildlife Rehabilitation & Education Center continues to grow every year. We educate students on recycling, and also send each one home with their very own spruce seedling to plant at home SCHOOLS 700 STUDENTS 10 SCHOOLS 950 STUDENTS

7 QP 12 QP 13 Recycling Reducing waste is a natural behavior for us as a fiscally responsible organization. Reducing consumption and recycling what we use is the right thing to do for our environment and has a direct impact on our performance. We demonstrate Triple Bottom Line thinking of People, Profit and Planet in our plants by creating and maintaining robust programs to recapture and recycle waste where possible with a goal of zero landfill inputs. Simply put, recycling makes good business sense for QuadPackaging and our customers. As a responsible business one of the most effective actions we can take in recycling is reducing and reclaiming as much paperboard as possible in our production process. We invest in leading-edge processes and technology to reclaim waste for recycling. This has an added benefit of directly controlling a major line item of cost for our customers, creating a true win/win scenario. 64,790,534 GALLONS OF WATER 9,256 TONS OF RECYCLED PAPER 157,348 TREES SAVED 37,948,741 KILOWATTS OF ELECTRICITY ENOUGH TO HEAT 9,256 HOMES FOR 6 MONTHS Some of our efforts: Reducing packaging size and thickness Maximizing efficiency on production layouts to reduce raw material usage Employing technology that automates ink and coating usage Using scrap collection systems that include automated separation of materials Reclaiming waste streams for recycling and using recycled paper vs. virgin pulp 30,544 OF LANDFILL SPACE» Recycling Efforts Through our recycling efforts in 2016, paired with sustainable practices, we did our part in lightening the load on our environment. CUBIC YARDS

8 QP 14 QP 15 We believe that an employee-focused organization is a healthier organization, allowing our team to flourish and offer their best to our customers. Investing in ongoing education programs and sponsored social activities is one way we demonstrate our commitment to educating and engaging our employees. Monthly training around safety and continuous improvement (CI), regular updates on sustainability and opportunities to play as hard as we work are all an integral part of our employee-focused culture. Employee

9 QP 16 QP 17 SUSTAIN Each QuadPackaging employee receives annual training on our Sustainability Statement and Procurement Policy. We find it critical that our team fully understands our vision and procedures as it relates to fiber sourcing, chain of custody, energy use, recycling, community and more. Each employee who understands sustainability can spread this knowledge and help us continuously improve our programs. CONTINUOUS IMPROVEMENT We believe the more our employees know about continuous improvement and the role they play in it, the more successful we ll be in our journey to improve our company s productivity while sustainably reducing waste and costs. That s the goal of our thinkci monthly educational program. The thinkci program is really meant to expand employees familiarity with CI concepts so that anyone not just our CI Leaders can understand and actively participate in process improvement. SOCIAL Being a part of the Quad/Graphics family, we have adopted its core values as our own. Promoting healthy and happy employees is at the forefront. As hard as we work here at QuadPackaging, we stress having a sensible work / life balance. Our employees are rewarded throughout the year with picnics, holiday parties, Think Small team-building activities, and numerous other events that cultivate trust, growth and camaraderie within the QuadPackaging family. QuadMed, the company s health and wellness entity, keeps our employees and their families healthy through prevention, fitness and injury rehabilitation programs, and top-quality health services that also happen to control ever-growing costs. SAFETY Promoting a safe workplace is at the foundation of our culture and a centerpiece of our employee education programs. Our company-wide safety education and awareness program, thinksafe, helps employees learn about a different safety topic each month. thinksafe is a powerful tool to share best safety practices and raise awareness. Being current on safety education is discussed in annual performance reviews and as a data point for employee engagement and to track employee progress. Other safety engagement programs such as The Race for Safety and The Safety Cup are tools we use at the plant level to inspire teamwork and a culture where employees hold each other accountable.

10 QP 18 QP 19 The customer is always at the center of QuadPackaging s thoughts, goals and programs. We learn every day from our customers that sustainability is important to their corporate mission. Customers Our own sustainability program is a reflection of us having listened to our customers. Together we all succeed from open collaboration.

11 QP 20 QP 21 One key point that our customers have communicated is that they on us heavily for education on sustainability trends in packaging and how it is perceived by shoppers and consumers of their products. QuadPackaging takes this request seriously and regularly partners with customers to learn together and evolve our sustainably programs. Some of our activities One-on-one training sessions with our customers: Chain of Custody & Fiber Sourcing Paperboard Recyclable & Recycled Fiber Claims Ink and Coatings Proper Use of Logos & Labels QuadPackaging Sustainability Symposium In 2016, QuadPackaging held its first annual Sustainability Symposium. The Symposium was designed to bring together thought leaders from our diverse customer base, educators, and sustainability experts to examine myriad issues surrounding packaging sustainability. QuadPackaging continues to regularly sponsor this event at Quad/Graphics world headquarters in Sussex, WI. There is no fee for attendance. Changing Retail Packaging Requirements Active Members of: Paper Board Packaging Council Sustainable Packaging Coalition Milwaukee Sustainability Roundtable

12 QP 22 QP 23 Community The relationship of community and business is symbiotic. We believe it is people who are the key to our success and the most important factor in all we do. We live, raise our families, pull together in times of need and celebrate in the communities we call home. Our active community participation has always been an essential element that demonstrates our commitment to customers and employees alike. A major cornerstone of this commitment is our Environmental Education & Sustainability Outreach Program. We have partnered with the educators at Pine View Wildlife Rehabilitation & Education Center for the past several years (see fig.24a) to bring education on the relationship between paperboard, the ecosystem and our communities. Our program continues to grow and, in addition to schools we also offer education resources to businesses and our local communities. The partnership (cont pg.24)

13 QP 24 QP 25 between Pine View and QuadPackaging demonstrates a tangible action supporting our sustainability statement that sustainability and profitability are not mutually exclusive.» Figure 24A QuadPackaging and Pine View Wildlife develop a 4-tiered environmental education, and sustainability outreach program QuadPackaging and Pine View Wildlife present their first program to schools throughout Southeastern Wisconsin, with an overall number of participants eclipsing 700 students from 4 schools Reach of program expands to elementary schools, to growing the overall reach to 10 schools combined, elementary and middle 2014 QuadPackaging holds its first-ever Sustainability Symposium, reaching out to the business community and thought leaders within the industry 2015 Sustainability program continues to expand to focus on buisnesses and communities 2016 Celebrate 3rd year of symposium with goals to bring message to consumer and provide outlets for action Create awareness among associates, clients, and individuals WHAT S NEXT? PHASE 1 Design and Implement program to target middle schools in southeastern Wisconsin As part of the program, each student will go home with a live pine tree to plant PHASE 2 As implementation continues, faculty, students and parents provide overwhelming response TICCIT INTRODUCED Trees into Cartons, Cartons into Trees PHASE 3 Expand program into 2 high schools, and initiate an elementary outreach program GOALS- Grow understanding of sustainable practices at corporate and personal level Discuss challenges regarding energy, waste stream and social responsibility People, Profit, Planet 3Es OF SUSTAINABILITY- Introduce our 3Es of Sustainability Energy Education Environment GROWING OUR REACH Grow educational program to 10 different middle and elementary schools throughout Southeastern Wisconsin, educating over 950 students and young adults Part of the Environmental Education & Sustainably Outreach Program involves teaching school-age children how to recycle packaging and understand it s importance.

14 QP 26 QP 27 Procurement Chain of Custody QuadPackaging is committed to providing customers with products sourced from forests that are managed sustainably. To meet this commitment, we have established a chain of custody system that provides a link between certified forests and the raw materials we use at our facilities. QuadPackaging will: Maintain a system to ensure the flow of forest-based products through our facility conform to the internationally recognized SFI and FSC Chain of custody standards. Monitor our supply chain to better understand the origin of raw materials used in the production process. Understanding and controlling the procurement of all materials that are used in our packaging process is a fundamental necessity to managing a sustainable business. Without strong Standard Operating Procedures (SOPs), combined with training for employees on procurement, our business could not operate optimally and provide a reliable supply chain. We provide our customers peace of mind that their packaging is free of contamination and sourced free of controversy. One way we take action is by sourcing materials from forests that are managed responsibly. We have implemented a system that ensures that forest-based products flowing through our facilities conform to internationally recognized Forest Stewardship Council (FSC ), Programme for the Endorsement of Forest Certification (PEFC) and Sustainable Forestry Initiative (SFI ) chainof-custody certification standards. Annual thirdparty audits enable us to remain current on everevolving requirements and best practices within the chain-of-custody certification process. Additionally, these chainof-custody certifications enable us to offer our customers packaging materials that have been traced to responsibly managed woodlands. In doing so, we help support responsible forestry practices related to harvesting, biodiversity and protecting endangered species. Educate our employees, suppliers, customers and other interested parties regarding responsible procurement practices.» Tree to Paper Our focus on chain of custody allows transparency in every step of the process, from forests that are responsibly managed all the way to the printed product. Continue to identify opportunities to minimize our environmental footprint.

15 QP 28 QP 29 Water Logos & Labels Understanding and responsibly managing our water usage has been a key data point for many years. As a printer we rely on water as an integral part of our production process, so tracking it is nothing new to us. In 2016 we continued investing in equipment and technology to control the amount of water we use and reuse wherever possible. In 2017 we are defining our first water reduction goals and working hard to balance our growth, producing high-quality packaging and water usage. We believe if done correctly we will combine environmental stewardship of our water resources with improvement of our bottom line. QuadPackaging holds these certifications: SFI PEFC/ As a producer of printed packaging we believe it our responsibility to educate clients on printed claims for packaging sustainability. Logos & Labels are ever evolving and, at times, can be difficult to understand. With our triple chain of custody certification we are well versed in certified paper labels and often hold informational meetings with customers to assist them in making educated business decisions. Another area we actively assist in is helping customers better understand claims they may want to make involving recycled paper content and recyclability of packaging. The more we communicate early in the process, the better opportunity our clients to clearly identify their packaging for proper recycling. QuadPackaging is knowledgeable about: How2Recycle 10 0 % R e c yc le d Pa p e r b o a rd Paperboard is Recyclable

16 QP 30 QP 31 After we have met our standards of service and quality, the next priority is the conservation of materials. While we have no control over the ever increasing cost of energy, we do have the responsibility to minimize its use.» Harry V. Quadracci, Company Founder, Energy Managing our energy use thoughtfully in conjunction with being fiscally responsible is critical to our organization s success. Manufacturing equipment has historically been energy intensive to power but, like all technology, has steadily been improved to do more with less. Ever-improving integrated energy management systems link to our equipment and help us make faster and better decisions about our energy consumption. QuadPackaging utilizes carbon footprint tracking and has a Director of Environmental Management who sets energy goals with our executive team. We collect and analyze data in an effort to verify trends for process improvements and provide justification for environment-related projects. We also benchmark our performance results to evaluate the effectiveness of our programs and identify program areas that need focused attention.

17 QP 32 QP 33 REDUCTION EFFORTS INCLUDE: Base Load Energy Audit Reduction Converted to automated energy-demand response-tracking system Reviewed and improved automatic manufacturing equipment shut offs and E-stops Installed electrical interlocks between manufacturing equipment and support equipment (fans and pumps) High Pressure Air (HPA) Audits with Ultrasonic Leak Detection (ULD) Created air conservation program based on audit Tracked and repaired hidden air loss Implemented preventive maintenance for air systems Eliminated excessive pressure settings Heating, Ventilation & Air Conditioning (HVAC) Reviewed HVAC systems at each plant Upgraded systems and replaced components that were not efficient Installed automated time-of-day scheduling based on production schedule Lighting OUR LONG-TERM STRATEGY We support a strategy that embraces many forms of energy while expanding existing conservation and efficiency efforts. The use of renewable energy and alternative fuels are reviewed annually and promoted whenever fiscally viable. We participate locally, regionally and nationally with energy providers to partner on combining environmentally proven best practices with our vision of disciplined business growth.» Efforts Paying Off From , QuadPackaging saw a 26.37% reduction in CO 2 emissions. CO EMISSIONS ARE DOWN % Audited system components (ballasts, bulbs and fixtures) Replaced lighting components with more efficient units Added additional occupancy sensing for lighting control with motion detection Installed bilevel lighting in low use areas

18 QP 34 QP 35 QUAD/GRAPHICS ENERGY MANAGEMENT POLICY Vendor Energy Quad/Graphics provides premium desktop to doorstep print services and products. An inherent part of our commitment to excellence is to continuously identify, implement and improve financial and operational efficiencies throughout all of our operations. A strong, integrated energy management program that identifies costing, consumption, conservation opportunities, technology utilization and environmental impact is crucial in sustaining our world-class status within our industry. As a global packaging provider we spend significant dollars with our vendor partners to provide the best possible products. Partnering with our vendors to share energy information is one of our newest initiatives. We truly want to get better together. In order for us to make more thoughtful decisions about our global energy use we first have to better understand what we require of our vendors. Thinking strategically smarter in energy-use areas such as logistics, warehousing, inks and coatings, etc., our goal is to first understand and then start to make improved choices in areas we can easily influence.

19 QP 36 QP 37 Philanthropy There are many ways we contribute our time, talent and financial support to our communities in the causes we care about, including in-kind expertise, corporate contributions and extensive employee volunteerism and donations. Because our individual locations are most closely connected to the communities where they operate, our plants and people are given the freedom to determine how they can best contribute locally. We support a wide variety of initiatives, from arts and culture to community cleanups to education and addressing basic human needs. HUNGER TASK FORCE We proudly support the Milwaukee Hunger Task Force, an organization dedicated to preventing hunger and malnutrition through community food drives and food banks. We collect canned goods for drives that put together meals for local families in need. PINE VIEW WILDLIFE REHABILITATION EDUCATION CENTER QuadPackaging has been supporting the Pine View Wildlife Rehabilitation & Education Center for more than 12 years. Our support includes printing materials for many of their fundraising events and financial support. The goals of Pine View include raising consciousness about the changing status of wildlife in Wisconsin, and meeting the medical needs of the increasing number of wildlife patients admitted to animal hospitals. It is also a goal of Pine View to promote and foster awareness as to the impact human activities have on our fragile environment. TREK 100: A RIDE FOR HOPE Since 2006, QuadPackaging has participated in the Trek 100, an annual bike ride to raise money for the MACC Fund (Midwest Athletes Against Childhood Cancer), an organization dedicated to funding research childhood cancer and related blood disorders research. QuadPackaging has helped to raise over $10, THE WINDHOVER FOUNDATION The Windhover Foundation seeks to give flight to organizations dedicated to meeting a pressing, unfilled social need from women s centers to hospices, libraries, arts centers, playgrounds, parks, food pantries and more. Founded in 1983 by Harry and Betty Quadracci, the Windhover Foundation continues to be guided by the Quadracci family who is committed to building strong communities. The Windhover Foundation follows specific grant outlines when evaluating applications, and often chooses to support organizations in the communities where Quad/Graphics has a presence.

20 QuadPackaging Sustainability *All consumer, energy and environmenta l studies within the QuadPackaging 2017 Sustainability Report contain data from 2016.