Smurfit Kappa Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 12:53:16 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 Case study: How Smurfit Kappa promotes responsible sourcing https://sustaincase.com/case-study-how-smurfit-kappa-promotes-responsible-sourcing/ Fri, 16 Sep 2022 06:10:06 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14086 Smurfit Kappa is one of the largest integrated manufacturers of paper-based packaging solutions globally, operating across 35 countries with around 46,000 employees in over 350 production sites. Sourcing materials, goods and services represents the single largest cost item for Smurfit Kappa. Accordingly, This case study is based on the 2020 Sustainable Development Report by Smurfit Kappa, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy […]

The post Case study: How Smurfit Kappa promotes responsible sourcing appeared first on SustainCase - Sustainability Magazine.

]]> Smurfit Kappa is one of the largest integrated manufacturers of paper-based packaging solutions globally, operating across 35 countries with around 46,000 employees in over 350 production sites. Sourcing materials, goods and services represents the single largest cost item for Smurfit Kappa. Accordingly, Sustainable and Responsible Sourcing is an integral part of Smurfit Kappa’s sustainability vision and strategy.  Tweet This!

This case study is based on the 2020 Sustainable Development Report by Smurfit Kappa, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Smurfit Kappa seeks to make sure that its materials, goods and services not only have the right quality and cost but are also sourced securely in a sustainable and responsible way, as described in its Sustainable and Responsible Sourcing Policy and in alignment with the objectives of the 2030 UN SDGs. In order to promote responsible sourcing Smurfit Kappa took action to:

  • promote compliance
  • audit suppliers

What are the material issues the company has identified?            

In its 2020 Sustainable Development Report Smurfit Kappa identified a range of material issues, such as climate change awareness, energy use and emissions, responsible forestry, high-quality and sustainable products, health and safety. Among these, promoting responsible sourcing stands out as a key material issue for Smurfit Kappa.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Smurfit Kappa engages with:

Stakeholder Group                Method of engagement
Customers ·      Regular business meetings at Smurfit Kappa’s Experience Centres

·      Customer conferences

·      WBCSD membership

·      Awards and competitions run by customers

·      Collaboration through the full packaging value chain in the 4evergreen initiative, in collaboration with large FMCG companies
Investors ·      Investor days and conferences

·      One-to-one meetings

·      ESG ratings by rating agencies

·      Feedback from sustainability analysts

·      Queries directly from investors
Employees ·      MyVoice engagement surveys

·      Global, regional and local learning and development programmes

·      Works Councils

·      Social committees

·      Support to employees through the Employee Assistance Programme

·      Enable reporting of any possible wrongdoing through the Speak Up service
Communities

 

 ·      Initiation of and participation in local social activities by members of Smurfit Kappa’s workforce

·      Supporting social investment projects by local Smurfit Kappa companies and Smurfit Kappa Foundations

·      Supporting various local COVID-19 focused projects by local Smurfit Kappa operations
Suppliers

 

 ·      Supplier sustainability audits

·      Participating in the development of Forest Certification as members of the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC)

·      WBCSD membership

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Smurfit Kappa interviewed external stakeholders (customers, investors and suppliers) and offered an online survey to its own employees.

What actions were taken by Smurfit Kappa to promote responsible sourcing?

In its 2020 Sustainable Development Report Smurfit Kappa reports that it took the following actions for promoting responsible sourcing:

  • Promoting compliance
  • To meet the requirements of its vision and strategy, Smurfit Kappa’s suppliers must adhere to the Smurfit Kappa Suppliers’ Code of Conduct. Those who do not sign up to it must be committed to a compatible code in compliance with the UN Declaration of Human Rights and the ILO Principles and Rights at Work covering: freedom of association, prohibiting child labour and forced labour, treating employees humanely, working times in accordance with internationally recognised standards, respecting employee contributions, fair compensation with no wage deduction as disciplinary measure, encouragement of continuous training and development, Health and Safety at work, non-discrimination, prohibit harassment, bullying, other unfair practices and promoting community involvement. They will recruit, hire and train without regard to race, colour, gender, sexual orientation, age, religion, creed, national origin, disability or any other legally protected status in the countries where they do business. Smurfit Kappa’s suppliers are also required to follow its Sustainable and Responsible Sourcing Policy, and all other relevant policies which also cover the safeguarding of the natural environment and respecting indigenous peoples and traditional livelihoods. Smurfit Kappa’s suppliers are required to sign a declaration for compliance with its Sustainable and Responsible Sourcing Policy, its Suppliers’ Code of Conduct, its Modern Slavery Act Statement and a Statement on controversial sources of Raw Materials, Goods and Services. These standards should be extended upstream in the suppliers’ supply chain. This declaration is signed every three years and Smurfit Kappa monitors its suppliers’ compliance through its Sustainable and Responsible Sourcing audit programme. 251 suppliers have signed this declaration and 67% of Smurfit Kappa’s suppliers of key materials, representing 77% of the relevant sourcing spend.
  • Auditing suppliers
  • Since launching its Sustainable and Responsible Sourcing programme in 2010, Smurfit Kappa has been auditing 354 of its suppliers to make sure they meet its standards. Smurfit Kappa also monitors whether suppliers are a member of SEDEX or are assessed on their ethical practices by EcoVadis. Smurfit Kappa believes on-site audits increase competence and commitment in its supplier base, while training and enhancing mutual understanding of key requirements. Based on their scoring at the audit, follow-up programmes are designed on a supplier-by-supplier basis. This includes further strengthening their understanding of, and compliance to, Smurfit Kappa’s Sustainable and Responsible Sourcing principles and indicators. Since 2010, Smurfit Kappa has reduced unsatisfactory scores of strategic suppliers by 75% through improvement plans and follow up. Audits result in a rating against each of the seven sections of Smurfit Kappa’s Sustainable and Responsible Sourcing programme. If the result is below ‘acceptable’ (scoring less than 40%), an obligatory improvement programme is devised. Major non-conformities need to be addressed within two weeks and resolved within six months. Minor non-conformities need to be solved within 12 months during a surveillance audit. Failure to commit to the improvement action list may, ultimately, lead to termination of the business relationship. The supplier assessment is repeated every three years through a re-approval audit process. Smurfit Kappa’s risk mapping, combined with supplier audit results, showed that 81% of its suppliers of key materials audited in 2020 carried moderate to low risk. A total of 94% of all suppliers audited during 2020 scored at least mark ‘acceptable’ (2019: 87%), and the remaining will pass the audit once they complete improvement plans.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Smurfit Kappa, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.smurfitkappa.com/-/m/files/publications—global/sustainability-reports/smurfit_kappa_sustainable_development_report_2020.pdf?rev=bb4686e0b49f4e13b0ece77b46f714c7

Note to Smurfit Kappa: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Smurfit Kappa promotes responsible sourcing appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Smurfit Kappa supports the communities where it operates https://sustaincase.com/case-study-how-smurfit-kappa-supports-the-communities-where-it-operates/ Wed, 08 Sep 2021 06:06:19 +0000 https://ccprowebs.com/new-sustaincase.com/?p=12880 Smurfit Kappa is one of the largest integrated manufacturers of paper-based packaging solutions in the world, operating across 35 countries with around 46,000 employees in over 350 production sites. , while its Foundation empowers people to improve their lives. This case study is based on the 2019 Sustainable Development Report by Smurfit Kappa published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, […]

The post Case study: How Smurfit Kappa supports the communities where it operates appeared first on SustainCase - Sustainability Magazine.

]]> Smurfit Kappa is one of the largest integrated manufacturers of paper-based packaging solutions in the world, operating across 35 countries with around 46,000 employees in over 350 production sites. Smurfit Kappa is committed to the communities in which it operates  Tweet This!, while its Foundation empowers people to improve their lives.

This case study is based on the 2019 Sustainable Development Report by Smurfit Kappa published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Layout 1Abstract

Smurfit Kappa actively supports local communities, through its Smurfit Kappa Foundation and local operations. In order to support the communities where it operates Smurfit Kappa took action to:

  • promote community involvement
  • launch the Smurfit Kappa Foundation

What are the material issues the company has identified?            

In its 2019 Sustainable Development Report Smurfit Kappa identified a range of material issues, such as climate change awareness, energy use and emissions, responsible forestry, high-quality and sustainable products. Among these, supporting the communities where it operates stands out as a key material issue for Smurfit Kappa.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Smurfit Kappa engages with: 

Stakeholder Group                Method of engagement
Customers ·      Regular business meetings at Smurfit Kappa’s Experience Centres

·      Customer conferences

·      WBCSD membership

·      Awards and competitions run by customers
Investors ·      Investor days and conferences

·      One-to-one meetings

·      ESG ratings by rating agencies

·      Feedback from sustainability analysts

·      Queries directly from investors
Employees ·      MyVoice engagement surveys

·      Day-to-day interactions

·      Works Councils

·      Social committees
Communities

 

 ·      Participation in local initiatives

·      Supporting social investment projects
Suppliers

 

 ·      Supplier sustainability audits

·      Participating in the development of Forest Certification as members of the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC)

·      WBCSD membership

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Smurfit Kappa conducted an online survey for internal stakeholders (employees) and interviews with key external stakeholders, such as customers, investors and suppliers.

What actions were taken by Smurfit Kappa to support the communities where it operates?

In its 2019 Sustainable Development Report Smurfit Kappa reports that it took the following actions for supporting the communities where it operates:

  • Promoting community involvement
  • Smurfit Kappa always considers the concerns of the wider community at national and international level. Community involvement builds trust and serves as a link to the issues important to Smurfit Kappa. Local general managers are expected to represent the Group as part of the local community and play a positive part in its development. In its philanthropic work, Smurfit Kappa focuses on self-help initiatives, education and health programmes, and contributes through financial donations and volunteering by local employees. The circular economy has an impact on communities as well, and Smurfit Kappa participates widely in local circular operations. Some examples of these are:
    • Delivering district heating from Smurfit Kappa’s paper mill to the residents of Piteå, Sweden
    • Supporting municipality water treatment systems with Smurfit Kappa’s effluent that has nutrients that help treat municipality waste water in Nettingsdorf, Austria and Nervión, Spain
    • Treating municipality waste water in Morava, Czech Republic
    • Maintaining rural road structures at Smurfit Kappa’s Colombian Forestry Operations
    • Collecting city-recovered paper in Malaga, Spain
  • Launching the Smurfit Kappa Foundation
  • The Smurfit Kappa Foundation was formed in 2011 and supports sustainable projects in the countries where Smurfit Kappa Smurfit Kappa focuses on projects involving disadvantaged children in the areas of health and nutrition, basic care and early education. Smurfit Kappa is particularly interested in projects in which Smurfit Kappa employees or their families are involved and where they would benefit from support from Smurfit Kappa’s Foundation. Any support Smurfit Kappa gives is in addition to and not a substitute for funding such projects might already receive from the local Smurfit Kappa operations. The Foundation’s goal is to end the cycle of poverty and dependence that exists in some of the communities and countries in which Smurfit Kappa operates, using the UN 2030 Agenda for Sustainable Development as a guide. The projects Smurfit Kappa supports tackle global issues with local relevance, and operate under the ethos: ’Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.’ Thus, Smurfit Kappa supports sustainable projects which involve input from the local community and are capable of becoming self-sufficient in the long-term.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this are:

1) Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs

2) Disclosure 413-2 Operations with significant actual and potential negative impacts on local communities

 

Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs does not correspond to any SDG.

Disclosure 413-2 Operations with significant actual and potential negative impacts on local communities corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by Smurfit Kappa, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Smurfit Kappa: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Smurfit Kappa supports the communities where it operates appeared first on SustainCase - Sustainability Magazine.

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