Target contributes to next chapter in company’s sustainability journey

(ASX: ORA): Orora Limited, leading provider of packaging and visual solutions, announced it has committed to achieving net zero Scope 1 and Scope 2 greenhouse gas emissions across its operations by 2050 as part of the next important chapter in its sustainability journey.

In announcing this commitment, the company also disclosed an interim goal of 40% reduction in emissions (Scope 1 and 2) by 2035, from financial year 2019 levels. The well-defined plan to achieving this interim goal includes increased use of recycled glass cullet at the company’s Gawler facility in South Australia to leverage energy-reducing benefits; implementing less greenhouse gas-intensive furnace technology at Gawler such as oxy-fired furnaces; and procuring greenhouse gas-free electricity for Orora businesses globally.  The pathway between 2035 and 2050 will be firmed up over time and will require advances in technology.

With operations spanning Australasia and North America, the company has already driven strong progress in sustainable practices in partnership with its customers and suppliers, to contribute to better, more sustainable outcomes for the communities where it operates.  

In FY21, Orora drove good progress on its five-year Eco Targets across the areas of Co2e emissions reduction, waste to landfill and water use[1]. The company is a leader in large-scale recycling, with its glass production facility utilising the majority of recycled content taken from the newly operational Western Australian Container Deposit Scheme, as well as from the South Australia scheme and other state initiatives. 

An average of 60% of the aluminium flat sheet used to manufacture cans is from recycled content, and Orora has invested in the supply of wind-generated electricity across its operations in Australia, which provide renewable energy volumes equivalent to more than 80% of the company’s electricity requirements in Australia. Solar energy systems have also been installed across a number of sites. 

Beyond climate and the environment, Orora also made progress in the areas of diversity, equity and inclusion.

As part of an ongoing focus on gender equality, 32% of all new team member hires in FY21 were female, while Orora’s Board composition is 33% female and 67% male, exceeding the company’s target of greater than 30% of all new hires being female and not less than 30% of each gender represented on the Board.

In recent months the company undertook a comprehensive review of its approach to sustainability, assessing the areas of greatest relevance and importance to its customers, investors and the broader community.

As part of its financial year 2021 results announcement, Orora unveiled a new chapter in its sustainability strategy, with the pillars of its sustainability framework redefined to Circular Economy, Climate Change and Community

According to Orora Chief Executive Officer Brian Lowe, the focus pillars of Circular Economy, Climate Change and Community represent a more aspirational approach to sustainability for the company, while building on its significant progress and achievements to date.

“Sustainability is fundamental to the way we operate at Orora, and evident in our company ambition to be a leading sustainable packaging solutions company. I’m proud to say our track record is strong.

“Not only do we continue to drive reductions across important areas such as Co2e emissions, waste to landfill and water use across our operations, but we work closely with our customers to lead innovations in packaging and visual solutions that are better for the planet, in turn playing an important role in their sustainability story,” Mr Lowe said.

“We care about making a difference at Orora, and we recognise the important contribution we must make for the sake of future generations. Our stated target of reaching net zero greenhouse gas emissions by 2050, with an interim goal for 2035, is the next logical step in our sustainability journey, and our redefined approach elevates our focus on sustainability for years to come,” Mr Lowe said.

Orora is a signatory to the United Nations Global Compact (UNGC) and reports on its annual sustainability activity via Communications on Progress to the UNGC, which outlines its activities in relation to human rights, labour, environment and anti-corruption. Orora also supports the CDP[2] and voluntarily discloses information under the Climate, Water and Forest Risk CDP sections.

Further detail on Orora’s approach to sustainability and related achievements can be found in the company’s 2021 Annual Report and FY21 results materials.

 

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[1] Specific details on the company’s Eco Targets are outlined in Orora’s 2021 Annual Report

[2] CDP, formerly known as the Carbon Disclosure Project