Packaging
for better
Packaging
for better
Packaging for better
Governance
2
9
Growing demand for packaged food
and beverages
Widening our portfolio of sustainable
packaging solutions
17
Demonstrating our packs’
environmental credentials
24
Creating more thriving forests
Our Company
31
Letter from the Chair and
the Chief Executive Officer
35 Our business model
37 Our strategy
43 Our team
45 Technology and innovation
Business review
49 Regional review
49
52
54
57
Europe
Middle East and Africa
Asia Pacific (APAC)
Americas
62 Key performance highlights
63 Financial review
73 Enterprise risk management
The Way Beyond Good
79 Strategy and governance
92 Approach and performance
166 Performance summary
178 Board of Directors
181 Group Executive Board
184 Corporate Governance Report
Compensation
213 Letter from the Chair of the
Compensation Committee
215 Compensation Report
Financials
239 Consolidated financial statements
343 Financial statements of the Company
EU taxonomy
361 EU taxonomy regulations
Task Force on Climate-related
Financial Disclosures
366 TCFD report
Appendix
371 ESG disclosures
373 Stakeholder engagement
376 Contribution to the United Nations
Sustainable Development Goals
380 Greenhouse gas emissions basis for reporting
387 GRI content index
411 Assurance statement
Want the full experience?
Our 2022 Annual Report is also published online. The online
version offers additional interactive features and content.
Visit the report at
https://reports.sig.biz/annual-report-2022
Annual Report 2022 Growing
demand for
packaged
food and
beverages
Annual Report 2022 Packaging for better
Growing demand for packaged food and beverages
3
The world needs
more food
There are 8 billion people on Earth and
every year the global population increases
by another 50 million people – most of
them in emerging markets and big cities.
By 2030, it is forecast that the world will
have a population of 8.5 billion people¹.
1 Food | United Nations.
Annual Report 2022 Packaging for better
Growing demand for packaged food and beverages
4
8.5 billion
people will live on the
planet by 2030¹.
approx.
750 million
people are going
hungry every year
There is growing and urgent demand for access to
nutritious food and beverages. Two billion people lack
regular access to safe, healthy and sufficient food², and
it is estimated that approximately 750 million people are
going hungry every year. Yet, at the same time, there
is enormous food loss from farmers to manufacturers
and from retailers to consumers, as edible and valuable
food is unnecessarily discarded or improperly stored.
Better packaging is part of the solution. SIG’s aseptic
packs retain the nutrients and vitamins of their
contents over many months without the addition of
preservatives. The availability of different pack sizes
helps the consumer to avoid overbuying. In addition,
food and beverages can be transported and stored
in ambient conditions, avoiding the need for energy-
intensive cold chains.
1 UN projects world population to reach 8.5 billion by 2030, driven by growth in developing countries.
2 Healthy diet (who.int).
Annual Report 2022 Packaging for better
Growing demand for packaged food and beverages
5
SIG provides aseptic packaging solutions
for affordable, long-life, portable and – most
importantly – nutritious liquid food and beverages.
Around 60% of the Group’s sales are packaging
solutions for white milk and other liquid dairy
products. This represents efficient, readily
available protein for a growing world population.
Customers in growth regions
are increasingly recognising the
advantages of aseptic carton
packaging.
“Milky Mist is a front runner in deploying the latest,
next-generation, state-of-the-art technologies and
was exploring differentiated packs in the UHT category.
That’s where we came across SIG’s unique aseptic
filling technology. Together with its innovative on-the-
go combismile packaging, it was a perfect fit to provide
our customers with a long-life product offering that
maintains the nutritional content of the product. We’re
proud to state that our association with SIG has given
us an opportunity to be a first mover in the dairy drinks
category in the Indian market.”
Dr. Rathnam
CEO, Milky Mist
Annual Report 2022 Packaging for better
Growing demand for packaged food and beverages
6
SIG PACKAGING IS
PART OF THE SOLUTION
Long-life, shelf-stable protection
Lowest carbon choice
Best package-to-product ratio
Designed for circularity
All our packaging solutions
have the lowest carbon
footprint compared with
competing substrates.
We continuously improve
our offering through
innovation and R&D.
Annual Report 2022 Packaging for better
Growing demand for packaged food and beverages
7
SIG’s aseptic carton packaging solutions are at the forefront
of better packaging:
• 75–80% of our standard aseptic carton packs come from
renewable resources. We were the first in the industry
to have 100% FSC™-certified paperboard.
• We were the first in the aseptic carton industry to
eliminate the layer of aluminium foil – cutting CO₂ per
pack by up to 58%.
• We were the first to use packaging material with polymers
that are 100% linked to forest-based, renewable materials
via a certified mass-balance system.
• Our aseptic carton production is carbon neutral and
uses 100% renewable electricity.
• We were the first aseptic carton maker to introduce
paper straws.
• We were the first to offer carton packs made with
recycled polymers produced from post-consumer
plastic waste.
Annual Report 2022 Packaging for better
Growing demand for packaged food and beverages
8
But we need to go further and we are on a journey to
create “The Perfect Pack”. A pack that gives more to
people and planet than it takes. A pack that ultimately
has a net positive impact on the world in which we live.
The perfect pack
does not exist… yet.
But one day it will,
and it will:
Remove more carbon from the
atmosphere than is emitted
during its life-cycle.
Be made from endlessly
renewable materials and end
the use of aluminium.
Bring safe, healthy nutrition to
everyone.
Be fully and easily recyclable -
anywhere in the world.
For more information,
see pages 9–23,
“Widening our portfolio
of sustainable packaging
solutions”.
Annual Report 2022 Widening our
portfolio of
sustainable
packaging
solutions
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
10
Our aseptic carton portfolio offers customers
unrivalled flexibility across a wide range of products.
In 2022, we expanded our packaging portfolio
through the acquisitions of Evergreen Asia and
Scholle IPN, allowing us to serve more customers
and consumers across more categories.
Serving demand for
milk in China
The acquisition of the Evergreen Asia business enables us to serve
the entire Chinese milk market, building on our established expertise
in liquid dairy. Per capita consumption of milk in China is rising, and
chilled milk is a popular choice among more affluent consumers in
urban areas. Many of these consumers drink milk at breakfast or
another mealtime, often in family-sized packs. This opens up a new
market segment for us, as our aseptic cartons in China are largely
single-serve and for on-the-go consumption.
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
11
A broader universe
of opportunity
The spouted pouch and bag-in-box solutions acquired
with Scholle IPN are enabling us to reach more customers
and consumers globally through more channels - and
to pack a much greater variety of products. In doing
so, we aim to offer the most sustainable substrates
across categories and product sizes.
76% of 2022 pro forma revenue
24% of 2022 pro forma revenue
Aseptic cartons:
format flexibility
80 ml - 2 L
Bag-in-box:
large sizes for retail,
industrial and
institutional use
2 L - 1,300 L
Spouted pouch:
small sizes for
on-the-go
50 ml - 500 ml
Chilled cartons:
1 L
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
12
Spouted pouches are used for small quantities of liquid of up
to 500 ml and are ideal for contents such as baby food, fruit
purées, yoghurts and puddings. They are easy to carry around
so that hungry infants and toddlers can be fed whenever
needed. The structure of the pouch and spout enables the last
drops of liquid to be squeezed out, reducing food waste.
Bag-in-box is suitable for quantities ranging from 2 to
1,300 litres and therefore taps into markets that would be
inaccessible for carton. It greatly expands our food service
presence, taking us into beverage concentrates, milk shakes
and ice cream for fast-food and dine-in restaurants.
Frappé and coffee drinks
Frappé and coffee drinks
Frappé and coffee drinks
Frappé and coffee drinks
Smoothies and ice drinks
Smoothies and ice drinks
Smoothies and ice drinks
Smoothies and ice drinks
Coca-Cola beverages
Coca-Cola beverages
Coca-Cola beverages
Coca-Cola beverages
Soft serve ice cream & shakes
Soft serve ice cream & shakes
Soft serve ice cream & shakes
Soft serve ice cream & shakes
These outlets are supplied with the aid of our specialised
dispenser connections, which offer the customer convenience
and security, and underpin long standing customer relationships.
In the industrial segment, we serve large food and vegetable
processors, providing them with a safe, high-quality package
that protects their valuable crops as they are transported
across the world from grower to processor.
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
13
Sustainability at the
heart of our portfolio
Sustainability will continue to be a key focus area
across our enlarged portfolio. We have succeeded
in reducing the quantity of material needed for our
aseptic cartons while maintaining their protective
qualities. Bag-in-box has been steadily replacing
rigid plastic: for water, it can represent an 86%
reduction in plastic use compared with a premium
PET bottle. Ours was the first bag-in-box package
recognised as 100% recyclable by the Association
of Plastic Recyclers.
APR-recognised recyclable bag-in-box
First-ever bag-in-box package
recognised as 100% recyclable by
the Association of Plastic Recyclers
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
14
Our mono-material pouches are fully recyclable
and can be formed at speed using our patented
induction sealing technology, providing a cost-efficient
alternative to multi-material pouches.
Combined with our aseptic carton in-line
sterilisation expertise, we plan to industrialise
the output of high-speed aseptic mono-
material spouted pouches.
The Scholle IPN expertise in mono-material structures
and barrier technology will accelerate our aluminium-
free journey in aseptic carton, and we have a line of
sight to achieve cost parity with standard aluminium
structures.
This journey began in 2010 with the world’s first
aluminium-layer-free carton and has continued apace
with further innovations, including the first carton made
entirely from renewable materials. Today, these formats
are used by a number of food and beverage companies
who want to underline the sustainability of their products.
In order to enable mass-market adoption of aluminium-
layer-free structures, we need to develop cost-efficient
barrier films to replace aluminium. Scholle IPN’s mono-
material technologies are a major stepping stone in this
direction. And as we increase the fibre content of our
cartons, a fibre-based pouch could become a reality.
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
15
World’s first
with no
aluminium
foil (aseptic
carton)
World’s first
aseptic carton
with all main raw
materials from
responsible
sources
World’s first
aseptic carton
with polymers
100% linked to
recycled
plastics
Cost parity
of aluminium-
layer-free
cartons with
standard alu
structures
“The Perfect Pack”
90%
FIBRE
World’s first
aseptic carton
100% linked to
forest-based
materials
World’s first
paper straw
for aseptic
carton packs
NO
ALUMINIUM
LAYER
World’s first
full barrier
aseptic
carton with no
aluminium foil
Aseptic carton
made with 90%
fibre content
ready to go into
the paper
recycling stream
World’s first
with no
aluminium
foil (aseptic
carton)
World’s first
aseptic carton
with all main raw
materials from
responsible
sources
World’s first
aseptic carton
with polymers
100% linked to
recycled
plastics
Cost parity
of aluminium-
layer-free
cartons with
standard alu
structures
“The Perfect Pack”
90%
FIBRE
World’s first
aseptic carton
100% linked to
forest-based
materials
World’s first
paper straw
for aseptic
carton packs
NO
ALUMINIUM
LAYER
World’s first
full barrier
aseptic
carton with no
aluminium foil
Aseptic carton
made with 90%
fibre content
ready to go into
the paper
recycling stream
Annual Report 2022 Packaging for better
Widening our portfolio of sustainable packaging solutions
16
Overview of expanded SIG Group
Revenue by region (in € million)
20221 919
332
1,008
840
3,099
2018
690
602
297
1,676
87
Europe
MEA2
APAC
Americas
Revenue by end market (in € million)
20221 1,761
2018
1,148
939
358
3,099
41
390
138
1,676
LD
NCSD
Food
Non-food
Revenue by sales channel (in € million)
20221 2,620
2018
1,676
300
179
3,099
1,676
Retail
Industrial
Institutional
1
2
Incl. Scholle IPN and Evergreen Asia pro forma (12 months).
2018 MEA revenue represents sales from SIG to its former joint ventures,
which since 2021 are fully consolidated by SIG.
Visit the online report for more information about revenue
breakdown: https://reports.sig.biz/annual-report-2022
Annual Report 2022 Demonstrating
our packs’
environmental
credentials
Annual Report 2022 Packaging for better
Demonstrating our packs’ environmental credentials
18
By bringing carton, bag-in-box and spouted
pouch together in our portfolio, we have
further strengthened our ability to support
customers in their transition to more
sustainable packaging across a wide range
of market applications – from dairy and fruit
juice to water, wine and baby food – in retail,
food service and industry settings.
This opens up even greater potential for our business
to deliver a net positive impact on people and the planet
by helping customers get more food to consumers around
the world in more settings – all in a safe, sustainable and
affordable way.
Annual Report 2022 Packaging for better
Demonstrating our packs’ environmental credentials
19
Aseptic cartons
Our aseptic cartons help customers deliver billions of
litres of food to consumers around the world every
year, keeping food safe for months without the need for
refrigeration or preservatives.
Critically reviewed life-cycle assessments, conducted
in line with recognised international standards, show
that SIG’s aseptic cartons have a 28–70% lower carbon
footprint than alternative packaging such as plastic
and glass bottles and aluminium cans for dairy, non-
carbonated soft drinks and food.
Our most sustainable innovations cut this even further.
Packaging materials in our SIGNATURE portfolio cut
carbon by up to 58% compared with standard SIG
aseptic cartons.
SIG standard aseptic
cartons offer
28–70 %
less CO₂ than plastic and
glass bottles, or cans
Our SIGNATURE portfolio
cuts CO₂ by up to
58 %
compared with our standard
aseptic cartons
Annual Report 2022 Packaging for better
Demonstrating our packs’ environmental credentials
20
Carbon footprint: how aseptic beverage cartons compare1
Liquid dairy
kg CO₂ equivalent per packaging
required for 1,000 litres UHT milk
Non-carbonated soft drinks
kg CO₂ equivalent per packaging
required for 1,000 litres
non-carbonated soft drinks
Food
kg CO₂ equivalent per
packaging required for
1,000 litres food
-70%
-39%
-28%
-63%
-61%
-58%
-40%
-45%
-34%
85.46
129.18
155.16
87.72
121.18
144.67 295.25
224
378
540 580 609
Aseptic
carton
HDPE bottle
PET bottle
Aseptic
carton
Monolayer
PET bottle
Multilayer
PET bottle
Disposable
glass bottle
Aseptic
carton
Pouch
Pot
Can
Glass
1 Based on life-cycle assessments for UHT milk, non-carbonated soft drinks and long-life food.
Carbon footprint: additional savings
with our SIGNATURE portfolio for aseptic cartons
Milk
kg CO₂ equivalent per packaging required
for 1,000 litres of milk in 1 litre cb3 pack
format (with cSwift)1
Fruit juice
kg CO₂ equivalent per packaging required
for 1,000 litres of fruit juice in 1 litre cb2
pack format (with cSwift)²
-27%
-45%
-58%
-36%
63
45
35
26
65
41
Standard SIG
packaging
material for
aseptic cartons
combibloc
ECOPLUS
packaging
material
SIGNATURE
FULL BARRIER
packaging
material
SIGNATURE
100
packaging
material
Standard SIG
packaging
material for
aseptic cartons
SIGNATURE
FULL BARRIER
packaging
material
1 Results based on ISO-compliant life-cycle assessment CB-100732c for Europe.
2 Results based on ISO-compliant life-cycle assessment CB-100733 for Europe.
Annual Report 2022 Packaging for better
Demonstrating our packs’ environmental credentials
21
“Being the first to offer Dutch consumers such a great, convenient
and sustainable packaging solution for our on-the-go juices is an
important step forward for Riedel. We conducted an independent
life-cycle assessment, and the positive results show SIG’s
combismile pack has 75% less CO₂ emissions than our previous
PET bottles. On the one hand we are following our carton pack
roots, while on the other bringing true innovation with combismile
and SIGNATURE FULL BARRIER, as our busy consumers gravitate
towards more sustainable and convenient packaging options.”
Julie van Bergen
Marketeer, Riedel
Annual Report 2022 Packaging for better
Demonstrating our packs’ environmental credentials
22
Bag-in-box and
spouted pouch
Our newly acquired bag-in-box and spouted pouch
packaging solutions offer significant sustainability
benefits by design.
Both offer strong product-to-packaging ratios, optimising
material use while still effectively protecting the food inside.
The protection they offer also helps to avoid potential
food waste from spoilage and the extra pressure this puts
on resources.
Preliminary results of a life-cycle assessment – conducted
in line with recognised international standards and to be
confirmed through an independent critical review process –
show significant carbon savings compared with alternative
types of packaging.
Bag-in-box for wine offers an approximate 80% smaller
carbon footprint than glass bottles. Meanwhile, mono-
material spouted pouches for baby food offer an
11% reduction in carbon footprint compared with plastic
tubs and a 59% reduction compared with glass jars.
Noah Buscher/Unsplash
Annual Report 2022 Packaging for better
Demonstrating our packs’ environmental credentials
23
Sustainable
innovation
SIG’s standard packs – cartons, bag-in-box and pouches – already
offer the most sustainable packaging solutions in each relevant market
segment. We are innovating to make them even more sustainable as part
of our commitment to go Way Beyond Good for people and planet.
The SIGNATURE portfolio of our most sustainable solutions for aseptic
cartons continues to grow. SIGNATURE EVO, launched this year, is the
latest development from SIG’s sustainable innovation pipeline. The world’s
first full barrier solution for aseptic cartons with no aluminium layer,
it extends our aluminium-free¹ aseptic carton portfolio beyond dairy to
more oxygen-sensitive products such as fruit juices. It follows the recent
launch of SIG NEO, our next-generation filling machine, which further
reduces the environmental footprint of filling.
In our bag-in-box and spouted pouch businesses, innovations are focused
on increasing the recyclability of these types of packaging and exploring
alternatives to virgin fossil-based plastics. We already offer the first
APR²-recognised recyclable bag-in-box. Other innovations include
recycle-ready mono-material spouted pouches and the world’s first bag-
in-box linked to post-consumer recycled content – both being trialled by
major customers.
We see great potential to catalyse sustainable innovation across our
portfolio by harnessing complementary know-how and experience
across our carton, bag-in-box and spouted pouch businesses to go
Way Beyond Good.
See > page 126 for more on our sustainable innovation.
1 With no aluminium layer.
2 Association of Plastic Recyclers.
Annual Report 2022 Creating
more thriving
forests
Annual Report 2022 Packaging for better
Creating more thriving forests
25
Our planet depends
on forests
They maintain climate and rainfall patterns, store carbon
and provide a home to most of the Earth’s land-based
biodiversity.
For over a decade, we have led the industry in sustainable
sourcing of liquid packaging board, the main raw material
in our packs, through FSC™ certification. Now, we are going
even further on The Way Beyond Good.
Not only will we continue to protect 100% of the sustainable
forests that supply the wood fibres we need to make
SIG packs now and in future, but by 2030 we will also
create, restore, protect or improve the management of
an additional 650,000 hectares of biodiverse sustainable
forest area. That’s the equivalent forest area needed to
produce all the packs we made in 2020 all over again.
100 %
of the liquid packaging
board for our aseptic
packs is procured with
FSC™ certification
650,000 ha
of additional forests to be created,
restored, protected or improved
by 2030
Annual Report 2022 Packaging for better
Creating more thriving forests
26
Pioneering partnership
In a major new partnership, SIG is joining forces with WWF
Switzerland to invest directly in field projects to protect, restore
or improve thousands of hectares of forests, with a strong
focus on enhancing our positive impact on biodiversity.
Over the next five years, we will work together to help build
resilient forest ecosystems globally by strengthening and
expanding sustainable forest management, protection and
landscape restoration.
We have also joined WWF’s Forests Forward programme,
publicly committing to a series of actions designed to scale up
our impact by engaging with suppliers, customers and others
to boost the industry’s commitment to sustainable forestry and
contribute to global goals.
“SIG’s strong commitment on thriving
forests aligns well with our Forests
Forward vision. Our new partnership will
enable us to work together to deliver
targeted support for at-risk forests in
biodiversity hotspots and deforestation
fronts. These projects will help forests
thrive, together with the wildlife and
people who depend on them.”
Thomas Vellacott
Chief Executive Officer, WWF Switzerland
Annual Report 2022 Packaging for better
Creating more thriving forests
27
Restoring forest ecosystems in Mexico
Our first project on the ground with
WWF Switzerland will help support
some of Mexico’s richest natural
landscapes. The Central Pacific
Landscape on the country’s western
coast holds key ecosystems and
biodiversity and provides a critical
corridor for jaguars to move across
forest and mangrove habitats.
Mexico
Through Forests Forward, SIG and
WWF will work with local communities
to improve the management of
100,000 hectares of forest landscape
and restore 750 hectares of
degraded forest.
The project will help secure threatened
ecosystems, promote sustainable
productive practices, and support
habitable conditions in productive areas,
as well as allowing jaguars and other
wildlife to move through them.
Together
supporting
thriving
forests
© WWF, Nick Hawkins
Annual Report 2022 Packaging for better
Creating more thriving forests
28
Leading the industry
on sustainable forestry
Our pioneering partnership with WWF reinforces
SIG’s bold Forest+ ambition and leadership within
the beverage carton industry. We have a strong
commitment to FSC™ certification and all the
liquid packaging board for our aseptic cartons is
procured with FSC™ certification – one of many
industry firsts for SIG on forests. See > page 105 for
more on our Forest+ commitments and progress.
“SIG is a good example of going Way Beyond Good.
They have led the industry in terms of getting FSC™
certification of their products. Already in 2009, they
had worldwide Chain of Custody certification and
since 2021 they have 100% of their liquid packaging
material FSC™-certified. This is impressive and, I think,
a very good example for the rest of the industry.”
Kim Carstensen
Director General, Forest Stewardship Council
Annual Report 2022 Packaging for better
Creating more thriving forests
29
First in the industry to establish FSC™
Chain of Custody certification at all the
paper mills we source from and all our
production plants, procurement and
sales units
First aseptic carton provider to enable
customers to include the FSC™ label
on any of our packs
2009
2009
-2011
2016
2017
First to introduce the FSC™ label in high
volumes for dairy and non-carbonated
soft drink cartons – in Germany in 2009,
China in 2010 and Thailand in 2011
Helped launch the FSC™’s Vancouver
Declaration encouraging companies to
pledge support for the United Nations
Sustainable Development Goals through
FSC™ certification
Passed the milestone of 100 billion
SIG packs sold with FSC™ label
2018
First in the industry to purchase 100%
of our liquid packaging board with FSC™
certification for our aseptic cartons
2020
2021
2022
Set ambitious new target not only to
protect the forests we source from,
but to create, restore, protect or improve
the management of an additional
650,000 hectares of thriving forests
Launched five-year partnership with
WWF Switzerland to protect, restore or
improve thousands of hectares of forests
Together
supporting
thriving
forests
Annual Report 2022 30
Our
Company
31
Letter from the Chair and
the Chief Executive Officer
35 Our business model
37 Our strategy
43 Our team
45 Technology and innovation
Annual Report 2022 Our Company
Letter from the Chair and the Chief Executive Officer
31
Letter from the Chair and
the Chief Executive Officer
Andreas Umbach
Chair
Samuel Sigrist
Chief Executive Officer
Strongly positioned for future growth
2022 was an eventful year for SIG. In line with our ambition to be the global leader in
sustainable packaging for liquid food and beverages, we expanded our offering of systems
and solutions to include – in addition to aseptic carton - bag-in-box and spouted pouch, as
well as chilled carton in Asia.
In our aseptic carton business, which represented 85% of our revenue in 2022, we
achieved excellent organic revenue growth of 8.0% for the year compared with 2021. This
included both price and volume gains. Higher volumes were achieved through continued
geographic, category and channel expansion, allowing us to achieve market share gains
in multiple markets.
One of our most successful expansions during the year was in India, where we won a
significant number of new filling machine contracts, securing our presence with the leading
dairy and NCSD players. Over the next two years we expect to deploy approximately 35 new
filling machines. In response to this rapid growth, we will commence the first phase of
construction of a local aseptic carton packaging plant in 2023, with completion expected
in 2024. The plant will initially provide printing and finishing capabilities.
Robust revenue growth and profitability
Group revenue of €2.8 billion in 2022 reflected growth of 27.4% including the contribution
from acquisitions (constant currency), with strong organic growth of 8.0% (constant
currency) in the aseptic carton business. Adjusted EBITDA for the year was €652 million,
an increase of 14% compared with the prior year. The adjusted EBITDA margin of 23.5%
reflected dilution from the Scholle IPN and Evergreen Asia acquisitions, higher raw material,
Annual Report 2022 Our Company
Letter from the Chair and the Chief Executive Officer
32
energy and freight costs, and a mathematical compression from price increases, which did,
however, help to offset the rising costs in absolute terms. The ability to offset inflationary
pressures through price increases, albeit with a lag, is testimony to the strength of our
business model.
Adjusted net income was €287 million (2021: €266 million) and diluted adjusted EPS was
stable at €0.79, against the backdrop of an increase in the number of shares following
the Scholle IPN and Evergreen Asia acquisitions. Free cash flow was €263 million (2021:
€258 million) despite acquisition-related costs. Capital expenditure was below the
guided range of 7–9% of revenue, even with continuing investment in our first aseptic
carton production plant in Mexico – which commenced commercial production in mid-
February 2023 – and a high level of filling machine investments. Given the increased
number of shares outstanding, the Company has undertaken to deliver a progressive
increase in the dividend per share. We are therefore proposing to increase the dividend
to CHF 0.47 per share, compared with CHF 0.45 per share in 2021. This represents 64% of
adjusted net income.
Both Standard and Poor’s and Moody’s have reaffirmed their ratings of the Company,
confirming our strong credit profile. This has enabled us to secure long-term financing for
the acquisitions on attractive terms. Net leverage at the end of 2022 was 3.1x, and we remain
committed to a ratio of towards 2x mid-term, with a milestone of 2.5x by the end of 2024.
Strong pipeline sustaining future growth
We are delighted to report that we placed 91 aseptic carton filling machines during the year.
This is an exceptionally high number, which will drive mid-term market share gains. We also
have a strong pipeline for 2023 showing that, even in periods of high inflation and economic
uncertainty, customers are willing to invest in growth. Our customers are attracted by the
volume flexibility of our filling machines, which in the current environment allows them to
switch to smaller sizes in order to maintain affordability. They also appreciate the ability to fill
particulates, fuelling the trend for healthy innovative drinks post-COVID-19. Additionally, our
aluminum-layer-free packaging solution, which reduces the carbon footprint of a carton by
up to 58%, enables customers to respond to increasing pressure from consumers to reduce
their carbon footprint.
Broadening our reach and our resilience
Since the IPO in 2018, SIG has consistently met or exceeded its constant currency revenue
growth guidance of 4–6%. We are committed to sustaining above-market growth along
with best-in-class margins and strong recurring cash flows. The acquisitions made in
2022 continue a strategy of geographic expansion implemented over many years, which
has increased the level of sales outside Europe from less than 25% in 2008 to around 70%
today on a pro forma basis. These acquisitions also accelerate our category and channel
expansions.
Scholle IPN broadens our growth platform
Scholle IPN enjoys competitive advantages due to its know-how and intellectual property in
barrier films and fitments. Its engineering solutions are deeply embedded within the customer’s
value chain, contributing to the development of longstanding customer relationships that
generate recurring revenue.
Annual Report 2022 Our Company
Letter from the Chair and the Chief Executive Officer
33
Scholle IPN strengthens our foothold in the Americas market and provides access to the
leading global beverage and quick-service restaurant customers in the world. This provides
meaningful opportunity for growth, especially through SIG’s well-established emerging
market platform, as we launch bag-in-box and spouted pouch solutions in Asia Pacific,
South America, and the Middle East and Africa.
Together, the R&D capabilities of SIG and Scholle IPN will accelerate our journey towards a
full barrier aluminium-layer-free carton portfolio at cost parity with our standard cartons.
Drawing on SIG’s core technical competences of aseptic high-speed filling will allow us
to develop high output solutions for spouted pouch customers, reducing the total cost of
ownership for our clients. Combined with Scholle’s proprietary sealing equipment and its
mono-material packaging substrates, we aim to deliver an industry leading solution which is
fully recyclable, has improved nutrient preservation and reduces food waste.
We see opportunities to increase the margins of spouted pouch and bag-in-box through
geographic expansion, an increased share of aseptic sales and the further development of
systems and solutions. With our FMCG expertise and state-of-the art technology centres,
we will be able to drive joint innovation together with customers.
We are pleased that we can already report initial revenue synergy wins in Europe, MEA,
Thailand, Indonesia and Brazil.
Category expansion with Evergreen Asia
The acquisition of Evergreen Asia's chilled milk business complements SIG’s aseptic carton
platform in Asia. Based on an increasingly developed cold chain in China’s urban centres, the
chilled and extended shelf-life milk category is experiencing robust growth. This creates a
significant opportunity for cross-selling as SIG aims to increase share of wallet with existing
key customers in Asia. Evergreen Asia also provides access to many dynamic regional
dairies in China, which primarily focus on chilled milk. Drawing on SIG’s core technical
competences, we plan to accelerate new product development and drive future market
share gains in the category.
Corporate responsibility and sustainability at our core
Our net positive ambition is encompassed in our commitments around Forest+, Climate+,
Resource+ and Food+. You can read more about these key areas in this Annual Report:
https://reports.sig.biz/annual-report-2022/the-way-beyond-good/approach-and-performance.
To touch briefly on two of them:
Forests are at the heart of our business, with 75% or more of our cartons made from liquid
packaging board sourced from responsibly managed forests. We have a long history of
Forest Stewardship Council (FSC™) certification, and since 2021 all the liquid packaging
board we use has been FSC™-certified. Our commitment to create more thriving forests
goes way beyond our own supply – it recognises their importance for humanity as a carbon
sink and a habitat for wildlife. This commitment was instrumental in SIG qualifying as a
partner to WWF Switzerland, and together we are committed to accelerating progress in
forest management and restoration.
Annual Report 2022 Our Company
Letter from the Chair and the Chief Executive Officer
34
Our aseptic carton production has been carbon neutral since 2018, and in 2022 we
announced that we would further extend our use of renewable electricity, currently in use in
Thailand, Brazil, China and Germany, via the construction of a new vast solar installation at
our production sites in Linnich and Wittenberg, Germany. Further installations are planned
globally, as we focus on reducing our carbon emissions for our business and our customers.
We use the EcoVadis ratings platform to measure our progress on sustainability on an
annual basis as it covers a broad range of criteria in the areas of environment, labour and
human rights, ethics and sustainable procurement. These criteria have a bearing on many
facets of our business and touch on the work of many of our employees. In 2022, we once
again achieved a platinum rating from EcoVadis, putting SIG in the top 1% of all businesses
participating in the sustainability assessment.
We were delighted to be included as a constituent of the FTSE4Good index following the
December 2022 Index review. We believe this is recognition of our ESG commitment and
how sustainability remains at the core of our business.
We are extending our sustainability strategy across our entire operations and supply chain
as we integrate the acquired businesses. We have set ambitious new targets to reduce
scope 1, 2 and 3 emissions across the enlarged group by 52% per litre packed by 2030. We
are currently awaiting approval of our targets from the Science Based Target initiative.
Fostering diversity and an inclusive culture
Management and the Board of Directors are firmly committed to increase the number
of women on the Board and in leadership positions within the Company. In 2022, we
made further progress towards our ambitious targets, with the percentage of women in
leadership positions increasing to 23% compared with 20% in 2021. Women on our Board
of Directors currently represent one third of the members and we remain committed to at
least maintaining that level. Management continuously consults with employees in order to
monitor whether we are taking the right measures and sustaining our culture.
Appreciation for our people
This year, SIG welcomed approximately 2,900 new employees, taking our Group total
to around 9,000 people. We are pleased to observe a common sense of purpose and a
shared passion for our business. We would like to thank all our employees, from those who
have recently joined to those who have been with us for many years, for their exceptional
performance in driving the business forward at a time of change and in a challenging
environment. We look forward to continuing to build on our combined energy and enthusiasm.
Andreas Umbach
Chair
Samuel Sigrist
Chief Executive Officer
Annual Report 2022 Our Company
Our business model
35
Our business model
Our unique technology and outstanding
innovation capability enable us to provide
our customers with end-to-end solutions for
differentiated products, including our newly
expanded packaging substrates. Together
with our smarter factories and connected
packs, we aim all to address the ever-
changing needs of consumers.
INPUTS
141,368
hours of training¹
A focus on diversity,
equity and inclusion
People
~9,000
employees of
> 80 nationalities
Environment
100 %
of paperboard
purchased has
FSC™ certification
100 %
renewable electricity
for aseptic carton
production
100 %
of aluminium for
aseptic cartons
purchased with
ASI certification²
Financial
€ 1,668 m
property, plant &
equipment
€ 36 m
net filler capital
expenditure
€ 60 m
investment in R&D
THE SIG DIFFERENCE
1
PROPRIETARY
TECHNOLOGY,
KNOW-HOW AND
INNOVATION
2
BROAD
GEOGRAPHIC
BASE
Operations
27
production plants
1 Excludes Scholle IPN.
2 From January 2023.
6
equipment
assembly plants
1,359
aseptic carton filling
machines in the field
3
The full interactive version of our business model can
be found online at https://reports.sig.biz/annual-
report-2022/our-company/our-business-model.html
PARTNERSHIPS
WITH
CUSTOMERS
Annual Report 2022 Our Company
Our business model
36
1
2
3
Proprietary technology,
know-how and innovation
Our unique sleeve-based filling technology
offers our customers unmatched volume and
format flexibility, enabling them to meet the
rapidly changing demands of consumers.
The breadth of our filling capabilities is
complemented by consumer-centric innovation
and a focus on sustainability. Our superior
system reliability, supported by over 600 service
engineers worldwide, ensures that our customers
are part of a safe and efficient supply chain.
Our new packaging formats and substrates
broaden our ability to offer the most flexible
and sustainable packaging solutions for liquid
food and beverages. We intend to combine
our engineering expertise to increase output of
aseptic bag-in-box and spouted pouches and to
expand the use of recyclable mono-materials.
Broad geographic base
Originally a European business, SIG has steadily
expanded its presence in Asia Pacific, the
Americas and the Middle East and Africa. This
expansion has contributed to the resilience
of the business by diversifying the drivers of
growth. With the acquisitions of Evergreen Asia
and Scholle IPN, we have further increased our
presence in Asia Pacific and in the Americas.
We have also created new opportunities for
growth in emerging markets. We operate
production facilities in each of our regions. With
our globally integrated footprint and supply
chain, we are able to support customers locally
and to meet their needs quickly and efficiently.
Partnerships with customers
Our systems and solutions-based approach
underpins our customer partnership model.
Our aseptic filling and packaging technology
is at the heart of our customers’ operations
and the co-development of fitment solutions
and unique connectors for bag-in-box
supports long-term customer relationships.
We work in close collaboration with our
customers to develop innovative product
and packaging solutions that meet consumer
demand for differentiation, convenience and
sustainability. We enable customers to increase
their efficiency with solutions for intelligent,
automated and fully integrated plants.
OUTPUTS
People
23 %
women in
leadership positions
0.35
lost-time
case rate¹
6.6 %
voluntary
turnover rate²
Environment
12.1 bn litres
25 %
All aseptic cartons
designed to be fully
recyclable
of nutritious³ food
and drinks delivered
by our customers
in SIG aseptic and
chilled cartons
lower carbon footprint
for SIG NEO filing
machines
Financial
8.0 %
organic revenue
growth¹ at constant
currency
Operations
~49 bn
packs produced
in 2022
27.3 %
ROCE
€ 263 m
free cash flow
up to
1,300 L
per pack
>10,000
different
products filled
1 Excludes Scholle IPN and Evergreen Asia.
2 Excludes Scholle IPN.
3
Defined by the independent Health Star Rating System as food and
drinks that contribute to a balanced diet and lead to better health.
Our Company
Our strategy
37
Sustainability
S h a p e the future
Our purpose
Working in partnership with our customers to
bring food products to consumers around the
world in a safe, sustainable and affordable way.
Growth
T
a
k
e
o
w
n
Our dream
Every consumer in the world with an SIG
packed product in their hand and a smile
e
rs
hip
on their face, every single day
h i n
T
er
k c ustom
People
Customer
Our strategy
SIG is working in partnership with its customers to
bring food products to consumers around the world
in a safe, sustainable and affordable way. That’s our
role for people and society, that’s our purpose as a
company. We want to fulfill our role for ever more
people, following our dream to see every consumer
in the world with an SIG packed product in their hand
and a smile on their face, every single day.
Annual Report 2022
Our Company
Our strategy
38
Our Corporate Compass
For better, our dream and our purpose are at the heart of our Corporate
Compass – a strategy made for growth. Founded on three clear principles,
our compass guides the choices we make every day. The choices for our
people, who always strive for better. For our customers, who can expect
packaging solutions for better, every time. For more growth to come
closer to our dream and to create sustainable value for our stakeholders.
For creating food packaging that makes the world a better place.
Our dream
Every consumer in the world with
an SIG packed product in their hand
and a smile on their face, every single day.
Our purpose
Working in partnership with
our customers to bring food
products to consumers around the
world in a safe, sustainable and
affordable way.
Our principles
Shape the future.
Think customer.
Take ownership.
READ MORE
Annual Report 2022 Our Company
Our strategy
39
GROWTH
CUSTOMER
PEOPLE
SUSTAIN-
ABILITY
Growth
Our strategic priorities
Grow our core business by increasing
market share in established markets
and categories.
Win new customers by bringing choice,
differentiation and added value through our
unique packaging systems in chilled and
aseptic carton, bag-in-box and spouted pouch.
Enter new and emerging categories
with our innovative and sustainable
packaging solutions.
Leverage the environmental benefits of the
beverage carton, bag-in-box and spouted pouch
and SIG’s innovative edge in sustainability.
Our progress
Revenue at constant currency:
1 Like-for-like.
Our achievements
Our global aseptic carton share has
increased as we have won new customers
and increased our share of wallet with
existing customers.
We placed 91 aseptic carton filling machines
during the year, an exceptionally high
number which will drive mid-term market
share gains.
In India, we won 22 new filling machine contracts
during the year, securing our presence with the
leading dairy and NCSD players. In Europe, our
plant-based category continued to expand with
60 new SKUs launched during the year.
In North America, bag-in-box achieved strong
market share gains.
READ MORE
202220212020+8.0%+6.2% 1+5.6%organicAnnual Report 2022 Our Company
Our strategy
40
GROWTH
CUSTOMER
PEOPLE
SUSTAIN-
ABILITY
Customer
Our strategic priorities
Create total customer satisfaction
and increase our Net Promoter Score (NPS)
at all touchpoints.
Continuously improve customer experience
through operational excellence by rigorously
executing the SIG Excellence System (SES).
Continuously gain market share by
consistently applying our Solution-Selling
approach to create added value for
customers.
Position SIG as the industry’s innovation and
sustainability leader and win business
from new and existing customers with our
innovation portfolio.
Our progress
Net Promoter Score (NPS) – Delta to competition1
1 SIG NPS minus NPS of next best alternative at a customer;
NPS value ranges from –100 to +100.
Our achievements
Around 80% of our aseptic carton volumes are
processed on filling machines that are connected,
allowing us to collect data on the performance of the
filling machine, the number of packs produced and
also the asset condition. This enables preventative
and condition-based maintenance, and improves the
productivity of our filling machines at customers' sites.
Our PAC.TRUST solution provides customers with
complete visibility of the production process, from
arrival of raw materials to delivery of the finished
product at the point of sale. Full product traceability
within minutes increases customer efficiency and offers
added security for retailers and consumers.
Until recently, technical challenges have meant that
almost all spouted pouch launches in the industry have
consisted of multi-layer polymer materials, impeding
recycling. Mono-materials are key to enabling recycling.
In 2022, we began trialling our mono-material pouches
with two large customers in Europe.
The roll-out of our on-the-go formats in Europe has
enabled the region to reach more customers and
consumption occasions, as the focus in Europe has
traditionally been on the one litre at-home market.
Conversely, in South-East Asia, nine of the filling
machine contracts won during the year were for one-
litre formats, providing further traction in a market which
has traditionally focused on on-the-go consumption.
READ MORE
202243-538SIGDeltaCompetition201937-631202140-1030Annual Report 2022 Our Company
Our strategy
41
GROWTH
CUSTOMER
PEOPLE
SUSTAIN-
ABILITY
People
Our strategic priorities
Diversity, equity and inclusion
Creating an inclusive culture which engages
our people. Building a diverse workforce
to support our customers in diverse markets
and foster innovation by bringing different
perspectives to our business.
Employee satisfaction
Listening and responding to our people,
recognising the work they do and rewarding
performance. This helps us to sustain
high levels of job satisfaction, motivation
and engagement.
Fair labour practices
Upholding labour rights and providing fair
working conditions is a fundamental
responsibility as an employer and part of
our commitment to respecting human rights.
Talent development
Investing in employees to help them
achieve their goals and build their careers.
Creating a workforce that meets the needs
of our business now and in the future.
Our progress
Percentage of women in leadership positions
Our achievements
Women now represent a third of our Group Executive
Board. Female representation at leadership level is
at 23% in 2022, up from 20% in 2021, and we remain
on track to achieve our target to increase women in
leadership positions to 30% by 2025.
Coaching and mentoring continue to have a high take-up
in the organisation with 58 mentors and 54 mentees
actively participating in 2022. Other programmes offered
included Transformational Leadership, Operations
Leadership and new leader programmes as well as on-
demand training through Bookboon e-library.
We already integrated Scholle IPN and Evergreen Asia
into our emerging market teams.
In our biennial employee survey, we significantly
outperformed industry benchmarks on corporate
responsibility, equal opportunities and inclusion, learning
and development (particularly career advancement
opportunities), fairness of pay and retention. We
achieved Great Place to Work™ certification in South
America for the second time and in North America for
the first time (for both Mexico and the USA).
READ MORE
2022GOAL 202520212019+23%+20%+19%+30%Annual Report 2022 Our Company
Our strategy
42
GROWTH
CUSTOMER
PEOPLE
SUSTAIN-
ABILITY
Sustainability
Our strategic priorities
Forest+
Create more thriving forest than it
takes to make our products.
Climate+
Continue to reduce our carbon footprint
until we capture more carbon from the
atmosphere than we emit.
Resource+
Increase use of renewable materials and
help turn more used cartons into resource.
Food+
Strive to provide access to safe and
affordable nutrition to more people than
we ever have before.
Our progress
Total Scope 1 and 2 greenhouse gas emissions for our aseptic carton production
(thousand tonnes CO2 equivalent)
Our achievements
SXI Switzerland Sustainability 25® Index - We
maintained our position among the top 25 most
sustainable companies listed on SIX Swiss Exchange
based on a third-party assessment.
FTSE4Good – SIG Group AG is now a constituent of the
FTSE4Good index series, which is designed to measure
the performance of companies demonstrating strong
Environmental, Social and Governance (ESG) practices.
Ecovadis Platinum – Our 2022 Platinum rating from
EcoVadis again puts SIG in the top 1% of businesses
participating in its latest sustainability assessment.
We have cut our value chain carbon footprint by 20%
in Scope 1, 2 and 3 greenhouse gas emissions per litre
packed for our aseptic carton business since 2016.
We have set a new target for a 52% reduction by 2030
(from 2020) for SIG Group (including aseptic and chilled
carton, bag-in-box and spouted pouch).
Renewable, fibre-based packaging solutions –
100% liquid packaging board for our aseptic cartons
purchased with FSC™ certification, and our major new
partnership with WWF Switzerland is driving progress
on our Forest+ ambitions.
READ MORE
202220212016(from 2016)25.129.8113.1-78%Annual Report 2022 Our Company
Our team
43
Our team
The best place to turn your dreams into reality
We aim to create an environment where all of our approximately 9,000 employees
worldwide feel free to believe in more by helping our Company to explore new paths and
create what’s next. We believe that by fostering an inclusive culture, supporting fair and
equal opportunities for everyone and creating a working environment free of biases, we
enable our employees to develop their full potential and to feel recognised and rewarded.
Talent development
Our Company offers a wide range of positions, which are as individual as our people. We
aim to match the skills of each employee to the opportunities within the Company and to
continuously improve the way we address employee needs. We undertake to give every
employee the chance to take part in internal or external training programmes, coaching
and mentoring, plus on-the-job learning experiences. All upskilling and development
requirements are identified as part of the review and feedback process throughout the
year. We identify talents that we need to foster as well as gaps in our succession pipeline
that we need to fill. The idea of our talent and succession management is to establish
frameworks, processes, tools and skills to systematically and effectively identify, manage,
actively develop and retain employees with high performance and potential. We adapt our
talent advancement approach to certain career paths in order to prepare our talents for
success in their targeted future role.
Our leadership programmes provide intensive training in the SIG Leadership Model so that
transformational leadership becomes our common leadership philosophy – inspiring and
empowering others to continuously learn, innovate and grow.
Employee satisfaction
By creating an engaging and energising working environment, we aim to enable our
employees to realise their full potential and to improve their workplace experience. By
listening to them and responding to their views, we help to sustain high levels of job
satisfaction.
To further foster engagement, we give our employees a voice in our biennial Employee
Engagement Survey and in the implementation of concrete improvement measures in their
area of responsibility, scope of influence and direct working and team environment. We also
engage employees in the business through virtual town hall meetings and smaller group
sessions with SIG C-level executives. Our employee value proposition, "Believe in More",
encourages our employees to create what’s next, inspire real change and make a positive
impact. As a result, our sustainable engagement score was very close to the industry
benchmark in the 2022 survey.
To ensure that our employees feel motivated and energised at work, we are implementing
measures that support a healthy work–life balance. We offer employee benefits reflecting
the regional, legal and cultural context. These include retirement benefits, health and
life insurance, flexible work arrangements (eg. part-time positions, working from home
where possible) and parental benefits and leave. We remunerate employees in line with
existing market practices. We benchmark our compensation approach against other
Annual Report 2022 Our Company
Our team
44
companies to ensure that our compensation packages are competitive in each of our
markets. The Company ensures that performance is recognised and rewarded in a fair and
transparent manner.
We have received external recognition for our efforts on employee satisfaction, achieving
Great Place to Work™ certification – the global benchmark for outstanding employee
experience based on employee surveys – in South America for the second time and in North
America for the first time.
Employment and labour rights
The SIG Code of Conduct addresses ethical and legal principles in general, whilst the
SIG Business Ethics Code sets out more specific principles regarding employment and
labour rights. Employees are encouraged to report any violation of the principles through
the SIG Ethics & Compliance Hotline or any other available channel. As part of our Sedex
(Supplier Ethical Data Exchange) membership, all our production sites undergo SMETA
(Sedex Members Ethical Trade Audit) four-pillar audits every two years. Moreover, our
global policies and performance are assessed by EcoVadis.
We have continued to review and strengthen our human rights due diligence by assessing
our operations and supply chain against upcoming regulatory requirements.
Diversity, equity and inclusion
We believe that by fostering a more inclusive culture, empowering people with different
abilities and supporting equal opportunities, we can add value to our business, improve the
lives of our employees and make a significant contribution to society. We have established
a diversity, equity and inclusion strategy with an overarching vision and set targets to
improve our gender equality. One of our main priorities is to improve gender balance in
our traditionally male-dominated industry by attracting and developing more women,
particularly in leadership roles. We are doing this by collaborating with universities to attract
female engineers, engaging women and minorities better in our recruitment processes,
and defining requirements in our career development processes to help us select the
best candidates from a diverse pool of internal and external applicants. In addition, we are
creating a working environment that strengthens our ability to attract and retain women,
eg. by offering more flexible working options where feasible.
Our leaders have been trained to recognise their unconscious biases and to create relevant
conditions to foster diversity and inclusion by actively driving change. The Company is fully
committed to preventing discrimination on any grounds, and we have publicly committed
to promoting diversity throughout our organisation as a signatory of the German Diversity
Charter (Charta der Vielfalt).
In our last Employee Engagement Survey, the vast majority of respondents agreed that the
Company is perceived as an open-minded organisation with a broad diversity of employees.
Annual Report 2022 Our Company
Technology and innovation
45
Technology and innovation
Through our proprietary technology, know-how and continuous innovation, we aim to
deliver benefits to consumers and attractive returns for our customers. Sustainability is a
key priority, and we devote significant resources to driving our net positive ambition. Our
extensive internal R&D competences are augmented through external partnerships with
innovative suppliers to the packaging and food and beverage industries.
Product development:
extending aluminium-layer-free solutions to more products
SIGNATURE EVO provides full barrier
protection, without an aluminium layer, for
oxygen sensitive products such as fruit
juices, flavoured milk and plant-based
beverages.
In 2022, SIG continued to lead the industry with our pioneering SIGNATURE portfolio of full
barrier aseptic cartons without an aluminium layer. Our SIGNATURE portfolio reduces the
CO₂ footprint of a carton by up to 58% compared with our standard carton structures. In
January, we launched SIGNATURE EVO, which expands this offering – already available for
plain white milk – to oxygen-sensitive products such as fruit juices, nectars, flavoured milk
and plant-based beverages.
Our packaging protects these products over long periods of time without the need for
refrigeration and without preservatives. This enables our customers to bring low-impact
packaging solutions to more categories and more consumers around the world, supporting
their public commitments to reduce CO₂ emissions. Our SIGNATURE EVO sleeves are
compatible with our installed base of filling machines and, like all our packs, SIGNATURE EVO
is fully recyclable in existing recycling streams.
The next phase of product development for our aluminium-layer-free portfolio is to
further optimise its cost structure to reach levels in line with our standard carton structures
containing aluminium. This will ensure aluminium-layer-free solutions are more affordable
and more widely available. Our acquisition of Scholle IPN is contributing significantly to
this area, bringing in-depth expertise in barrier films. Technical feasibility studies using
Scholle IPN barrier technologies in our extrusion process commenced in 2022 and will
continue in 2023.
Annual Report 2022 Our Company
Technology and innovation
46
Leveraging technologies across the portfolio
Building on our longstanding expertise in aseptic carton, we aim to develop high-speed
aseptic filling machines with in-line sterilisation for our spouted pouch offering. Our first in-
line aseptic prototype will be installed in Costa Rica in the first quarter of 2023 for a large
banana producer.
Until recently, technical challenges have meant that almost all spouted pouch launches in
the industry have consisted of multi-layer polymer materials, impeding recycling. Mono-
materials are key to a circular economy, and Scholle IPN has met this challenge with its
proprietary Induction Bossar Motion Series (iBMS) capability – a revolutionary technology
using induction sealing that allows mono-material pouches to be formed at a high production
speed. Our patented diamond-shaped fitment provides improved sealability, and our fully
recyclable RecShield™ mono film will ensure product quality and long shelf life.
In 2022, we began trialling our mono-material pouches with two large customers in Europe.
By leveraging our aseptic capabilities, we plan to industrialise the output of high-speed
aseptic mono-material pouches. Ultimately, we aim to revolutionise the aseptic carton
market with a mono-material carton that can be recycled entirely in the paper stream.
Fast-track consumer-centric innovation: benefits for customers and consumers
SIG has three major Tech Centres located in Germany, China and Dubai, where we conduct
consumer-led research, enabling us to meet the needs of consumers in each region. We
work with our customers to co-create innovative recipes that can be piloted on processing
equipment and then on our filling lines. The Tech Centre in Germany is food-certified,
allowing us to produce initial small batches that are launched into the market for testing.
This reduces time to market for our customers and speeds up their innovation cycle.
Our SIGCUBATOR programme targets start-ups and small companies that do not have
the means to manufacture at scale. Prototype testing takes place at a Tech Centre and
is supported by expert advice and consumer-focused insights. The commercial launch of
the product is facilitated through our global network of food and beverage companies. This
programme has helped start-ups such as GROUNDED and The Good Pea Co. bring cutting-
edge innovations to market.
Innovative filling machines with high levels of flexibility
The perfect package is delivered through a solution-based approach that includes filling
technology and technical service. The size flexibility of our aseptic carton-filling machines
contributes to an attractive total cost of ownership by reducing changeover times and
enabling the customer to respond to changing retailer and consumer requirements more
quickly. This includes the ability to reduce carton size to ensure that customers are able to
maintain an important psychological price point for consumers during inflationary periods,
especially in emerging markets.
Annual Report 2022 Our Company
Technology and innovation
47
Digital solutions further increasing customer efficiency
Around 80% of aseptic carton volume is processed on filling machines that are connected,
allowing us to collect data on the performance of the filling machine, the number of
packs produced and also the asset condition. We have developed a Smart Maintenance
programme with GE Digital to leverage that data connectivity. The programme includes two
software applications: Asset Performance Management and Field Service Management.
These applications enable preventative and condition-based maintenance, and improve
the productivity of our field service engineers.
Our PAC.TRUST solution provides the customer with complete visibility of the production
process, from arrival of raw materials to delivery of the finished product at the point of sale.
Full product traceability within minutes increases customer efficiency and offers added
security for retailers and consumers.
This year, our highly intuitive user interface, SIG CRUISER, won two prestigious awards – the
iF DESIGN AWARD 2022 Gold and a Red Dot Award Brands & Communication Design 2022.
Developed as part of our next-generation SIG NEO filling technology, SIG CRUISER enables
customers to set their complete production process and makes handling much easier for
the operator, reducing the need for training or experience.
Annual Report 2022 48
Business
review
49 Regional review
49
Europe
52
Middle East and Africa
54
Asia Pacific (APAC)
57
Americas
62 Key performance highlights
63 Financial review
73 Enterprise risk management
Annual Report 2022 Business review
Regional review
49
Regional review
Europe
Revenue 3rd
Revenue growth1
Organic growth2
€ 849 m
+ 15.9 %
+ 4.4 %
Introduction
In Europe, we have a strong focus on productivity, high output, flexibility and low waste
rates. We deliver a superior cost of ownership to our customers and continue to invest in
connected machines and reliability centres to further improve our operational efficiency.
R&D is conducted at our Tech Centre in Linnich, Germany, which includes a consumer
testing facility where we co-develop recipes and formats for new and growing categories
such as plant-based milk alternatives. The region is at the forefront of sustainable packaging
structures, driving demand for our aluminium-layer-free sleeves.
2022 overview
Our business in Europe continued to show solid growth in 2022 despite the return of at-
home consumption to more usual levels, as more time was spent out of the home following
the recovery from the COVID-19 pandemic. Volume growth was supplemented by price
increases, which took effect from the second quarter onwards. In retail, many of our
customers provide non-discretionary products for daily consumption, where demand
remains resilient.
Performance highlights
In 2022, we placed 15 new aseptic carton filling machines with Hochwald, a leading German
dairy co-operative. These machines ramped up during the course of the year and made
a significant contribution to growth. Hochwald’s choice of SIG reflects a number of
advantages, including a competitive total cost of ownership and a track record of efficiency
and product safety. Waste rates are low, which not only improves profitability but also
resonates with the increasing concern for sustainability. The flexibility of the system allows
the customer to respond rapidly to changing market needs.
1 At constant currency.
2
At constant currency, excluding the impacts of the Scholle IPN acquisition and adjusting for the consolidation of the former
Middle East joint ventures.
Annual Report 2022 Business review
Regional review
50
Entering new categories and growing our customer base
Hochwald is partnering with SIG to test our latest-generation filling machine, SIG NEO, with
combivita cartons to fill plant-based milk alternatives – an example of the latest technology
being deployed in a rapidly growing market segment.
Also within plant-based milk alternatives, Framptons, in the UK, launched eight brands with
SIG cartons.
Traditionally our European business has been focused on litre packs, and these remain
a mainstay of consumer demand. However, the roll-out of combismile in Europe has
continued and is enabling us to serve demand for smaller packs, often for on-the-go
consumption. Danone, which first launched combismile for flavoured waters under the
Volvic brand, has expanded the offer to still water.
Furthermore, our most sustainable packs continue to gain traction. Olympia Dairy became
the first company in Belgium to fill products in SIG aseptic carton packs with SIGNATURE 100
packaging material with no aluminium layer and with no fossil-based plastics. 100% of the
carton packaging is linked to forest-based renewable materials. As such, SIGNATURE 100
lowers the carbon footprint of our carton packs even further.
In the Netherlands, Riedel is combining combismile with SIGNATURE FULL BARRIER, linked
to forest based renewable materials, for its range of juices, and Unilever has switched to
SIGNATURE FULL BARRIER for Lipton Iced Tea, in line with its commitment to a circular
economy.
All our packs, including the standard structures, offer an attractive environmental profile with
the lowest CO₂ footprint compared with other packaging substrates. In addition, the cost
competitiveness of carton is playing an increasing role in a context of higher commodity prices,
with some customers considering changing from metal cans to carton for food products.
Annual Report 2022 Business review
Regional review
51
Olympia Dairy has taken
a big step forward in
sustainability as it becomes
the first company in Belgium
to fill products in SIG
aseptic carton packs with
SIGNATURE 100 packaging
material with no aluminium
layer. 100% linked to forest-
based renewable materials,
SIGNATURE 100 lowers the
carbon footprint of carton
packs even further.
Looking ahead
Our new bag-in-box and spouted pouch substrates offer additional opportunities in Europe.
Existing liquid dairy customers are excited by the expansion of our packaging range, while
industrial bag-in-box opens new avenues to access processors of fresh produce in Europe.
In aseptic carton, we will continue to deploy filling machines over the coming years. This
includes deployment of the first SIG NEO lines with our customers in 2023, and we expect to
see continuing demand for our aluminium-layer-free carton structures.
Annual Report 2022 Business review
Regional review
52
Middle East and Africa
Revenue 3rd
Revenue growth1
Organic growth2
€ 332 m
+ 22.6 %
+ 12.1 %
Introduction
The Middle East and Africa (MEA) region has the fastest-growing populations in the
world. With GDP per capita also on the rise, there is enormous potential for increasing
the consumption of processed and packaged food. There is an urgent need to provide
affordable and nutritious food and beverages to a growing population with income levels
that are still relatively low. As cold chains are lacking in many parts of the region, aseptic
carton packaging solutions are sought after as a way of bringing more products to more
people. The addition of bag-in-box and spouted pouches to the SIG portfolio presents new
opportunities for the safe delivery of a wider range of products.
2022 overview
The ending of COVID-19 restrictions – in particular the re-opening of schools – contributed
to strong revenue growth for SIG, with in particular a rebound in portion packs of non-
carbonated soft drinks. The placing of new aseptic carton filling machines and the ramping-
up of machines placed in earlier periods also played a significant role.
Given that disposable incomes in MEA remain relatively low compared with international
standards, the need for affordability becomes even more acute, especially in an inflationary
environment. The flexibility of SIG filling machines enables our customers to respond to
consumer needs by switching to smaller formats, thereby limiting the need for consumer
price rises.
Performance highlights
Seizing the dairy opportunity
Several years ago, SIG initiated a strategy to increase the weighting of liquid dairy in its
portfolio. We did so in the knowledge that, while the demand for milk as a cheap source of
protein is growing, per capita milk consumption in the region remains very low – around one
tenth of the level in Europe. Our strategy has led to an expansion of liquid dairy volumes
from 54% in 2018 to 64% in 2022. This has been accompanied by a strengthening of our
position with key customers. We have expanded our liquid dairy share in South Africa with
new installations at Lactalis and FairCape Dairies. We have also seen market share gains in
liquid dairy in Saudi Arabia and Egypt.
1 At constant currency.
2 At constant currency, adjusted for the consolidation of the former Middle East joint ventures.
Annual Report 2022 Business review
Regional review
53
“It was vital for us to find a premium packaging which
complemented the superior quality, modern image and
innovative ingredients of our existing liquid dairy product.
We were looking to relaunch in the Saudi Arabian market
with a new look and feel. Following our close cooperation
with the team at SIG, we quickly found an innovative
solution that allows us to offer additional benefits to our
consumers. combismile not only ensures differentiation on
the shelf due to its unique shape and modern look, but it
also clearly shows the high product quality and offers our
mobile consumers unmatched on-the-go convenience.”
Hisham Ezz El-Arab
Chief Executive Officer (CEO) at Al Safi Danone
Innovation and service excellence
In MEA, food is a relatively new category for aseptic carton and one where we are also
growing our presence with customers such as Arla and Baladna.
It is not just about the quality of our packs and the innovation that lies behind them. Service
is a key component of our offering and is tailored to the needs of our customers. Our 24/7
remote service, provided through our Reliability Centre, provides immediate and efficient
problem-solving for customers in hard-to-reach areas and makes the best use of the
expertise we have available.
Pioneering in sustainability
We welcome the increasing interest in sustainability that is spreading across the region. We
are not just promoting the environmental benefits of our cartons – we are taking an active
role in promoting a circular economy. In Egypt, we have launched “Recycle for Good”, an
innovative recycling initiative to enable households to arrange direct collection of used
aseptic carton packs using a mobile app. The programme, in partnership with Tagaddod, is
the first of its kind in the Egyptian market.
Looking ahead
SIG’s business in MEA covers 18 countries, yet the region comprises 70 countries, offering
significant scope for expansion. Our expansion strategy is to establish a foothold in one
country and use it as a base to serve neighbouring countries. For example, from Mauritania
we can reach into Mali, Chad, Niger and Senegal.
The Middle East and Africa represent unexplored markets for Scholle IPN. That is already
starting to change. Our Centre of Excellence at the Dubai Silicon Oasis is now demonstrating
to customers the expanded range, including bag-in-box and spouted pouch as well as carton.
Annual Report 2022 Business review
Regional review
54
Asia Pacific (APAC)
Revenue 3rd
Revenue growth1
Organic growth2
€ 900 m
+ 19.1 %
+ 7.8 %
Introduction
The Asia Pacific region covers a vast range of customer requirements, ranging from
the developed markets of Australia and Japan to the emerging consumers of India. In
the developing countries of the region, an increasing focus on health, convenience and
sustainability is running alongside an ongoing need for affordability, particularly at a time of
inflationary pressures.
2022 overview
The start of the year saw strong demand as many South-East Asian countries recovered
from COVID-19 restrictions. Later in the year, headwinds emerged with the renewed
lockdowns in China and milk shortages in Indonesia and Thailand due to higher feedstock
costs. The resilient performance of the aseptic carton business reflected volume and price
gains, the ramp-up of new filling machines across the region, and continuing expansion in
countries such as India. The region won a record number of new filling machine contracts in
2022, primarily in India and South-East Asia. Customers recognise the superior flexibility of
our filling machines, which allows for downsizing in an inflationary environment.
In China, the team produced a record 10.6 billion aseptic carton sleeves in 2022, which was a
resilient performance in a market effected by COVID-19 lockdown measures.
Evergreen Asia: building on our strong position in liquid dairy in China
SIG announced the acquisition of Evergreen Asia early in 2022 and the business was
consolidated from the beginning of August. Evergreen Asia supplies filling machines,
cartons, closures and after-sales service to customers in the chilled segment, mainly for
milk. It is the market leader in China, where demand for milk is robust, driven by awareness
of its health benefits. As chilled milk is mainly consumed at home, the acquisition broadens
our offering with an increase in litre-sized packs, complementing our on-the-go range.
Our aseptic team in China is able to leverage its marketing and technical expertise into
chilled and extended shelf-life packaging while also bringing innovation to this segment of
the market. Initial innovations will focus on a one-stop opening spout to improve pouring,
while we also plan to upgrade filling machine performance to increase output per hour.
The acquisition is already generating new cross-selling opportunities with existing aseptic
customers.
1 At constant currency.
2 At constant currency, excluding the impacts of the paper mill divestment and the Scholle IPN and Evergreen Asia acquisitions.
Annual Report 2022 Business review
Regional review
55
Performance highlights
Outperforming in India
In 2022, the expansion of our business in India accelerated. India is the largest aseptic carton
market in APAC and is growing by around 12% annually – twice the average growth rate for
the region. In India, SIG has grown from just two filling machines in 2018 to 35 filling machines
in 2022 and we are partnering with all the top liquid dairy and non-carbonated soft drinks
companies. Our format flexibility ensures that our customers can achieve the price points
which local consumers can afford.
“In a dynamic market like India, where there is constant
evolution in consumer preferences, trends and behaviour
patterns, it is essential for the FMCG industry to be agile
and respond quickly to market changes. In order to swiftly
cater to the continually changing trends, we’ve joined
hands with SIG Group. With their cutting-edge Swiss
packaging technology, we have high flexibility to introduce
our beverages in a variety of pack sizes and price points
to match the buying power of our consumers – from
affordable to premium. The goal is to build the Indian
beverage market, unlock its full potential and hit new levels
of growth with strong partners who are as invested as us
in making this vision happen. Moreover, SIG shares our
organisation principle of sustainable growth and expansion.”
Nadia Chauhan
Joint Managing Director of Parle Agro Pvt Ltd
Premiumisation and sustainability
Elsewhere in APAC, health awareness is increasing and there is a trend towards premium
products with high-quality and innovative ingredients. Roots in Taiwan launched its first
plant-based drink, using apricot kernels from Asian apricot trees. TH in Vietnam adopted
SIG’s drinksplus technology to create a pioneering healthy snack drink containing milk, oats
and nuts.
Sustainability is becoming a driving force across the region – and SIG is at the forefront.
In China, we have set ourselves the ambitious goal of upgrading all our portion packs to
aluminium-free structures by 2026. In December, we received our first commercial order for
our aseptic aluminium-free packaging for Yili’s premium white milk product, Satine.
Annual Report 2022 Business review
Regional review
56
In Australia, Massel
has introduced its
liquid stock range in
SIG SIGNATURE FULL
BARRIER packaging
formats.
“We always strive to develop benefits through innovation.
Starting 2022 with an Australian first by offering
consumers of our popular liquid stock range one of
the most sustainable packaging solutions continues
our longstanding commitment to improving the overall
sustainability of our products.”
Michael Caine
Managing Director of Massel
In Australia, Massel became the first company to launch SIGNATURE FULL BARRIER for
its plant-based range of cooking stocks.
Category growth in China
In 2022, the Chinese team extended its packaging portfolio to include plant-based milk
alternatives in both the ambient and chilled market segments, with packs for oat milk and
buffalo milk.
Looking ahead
We do not have to look far ahead to see the benefits of SIG’s expanded portfolio in the Asia
Pacific region. Chilled carton enhances our relationship with existing customers and gives us
access to new customers, including regional and city dairies. Bag-in-box and spouted pouch
establish SIG as a strategic partner providing total filling solutions, enabling our customers
to serve wider consumer needs. Cimory in Indonesia, which has chosen SIG as a partner
for its new aseptic carton factory, already had a relationship with our acquired chilled and
spouted pouch businesses. This illustrates the signficant cross-selling opportunities for our
broadened portfolio.
Annual Report 2022 Business review
Regional review
57
Americas
Revenue 3rd
Revenue growth1
Organic growth2
€ 697 m
+ 66.4 %
+ 11.5 %
Introduction
With the acquisition of Scholle IPN, SIG has expanded its customer base in North America
while opening up new opportunities in South America. Large US beverage and quick-service
restaurant customers have been added to the co-packers who have traditionally been at
the heart of SIG’s US business. These co-packers serve not only food service producers
but also small start-up companies in areas such as plant-based beverages and nutritional
drinks. A joint market approach for our expanded portfolio has been adopted to leverage
client relationships. Strategic customer engagement sessions have resulted in a pipeline of
new projects in the food service and food and beverage space.
Mexico is a fast-growing milk market where the leading dairies play a key role. South America
is led by Brazil, the second-largest aseptic carton market in the world, where we continue to
gain market share. Smaller markets, such as Chile and Ecuador, are becoming increasingly
important too, with global food and beverage companies stepping up investment.
2022 overview
The Americas registered another strong performance in 2022. Growth in Brazil was driven by
price and volumes, augmented by the contribution of new filling machines. In the USA, food
service demand was strong as consumers stepped up their use of quick-serve restaurants.
Bag-in-box was able to increase its supply of syrup to existing and new customers.
Performance highlights
Building on our strong position in Brazil
In Brazil, innovative formats, volume flexibility and high-output filling machines are driving
growth with major clients in categories such as flavoured milk, sweetened condensed milk
and non-carbonated juices. We are also expanding into new South American markets
outside Brazil, including Peru, Ecuador and Columbia, enabling us to leverage our production
capabilities in Brazil.
1 At constant currency.
2 At constant currency, excluding the impacts of the Scholle IPN acquisition.
Annual Report 2022 Business review
Regional review
58
Partner of choice in Mexico
In Mexico, SIG has strong relationships with leading dairies, including Santa Clara, which is
owned by The Coca-Cola Company. Santa Clara’s white and flavoured milks have grown
continuously, leading to a need for more capacity. Santa Clara chose SIG for the installation
of three new filling machines to help achieve its objective of becoming the leading dairy brand
in Mexico.
“I’m confident that the reliable technology offered by
SIG and the very talented and passionate teams of both
companies have been and will continue to be the perfect
combination to write a unique, successful story within the
Coca-Cola system worldwide.”
Eduardo Ramírez
Commercial Director of Jugos Del Valle Santa Clara
Broad digital capability
The value of our offer to customers continues to be enhanced by the range of services we
provide, including our digital offering. The SIG Reliability Centre, a state-of-the-art remote
solutions centre located at the Company’s industrial complex in Paraná, Brazil, coordinates
the deployment of solutions such as our Plant 360 Remote Services and Plant 360 Asset
Health Monitoring. Our PAC.TRUST solutions enable customers to offer consumers full
transparency on the origin and processing of their products.
Mococa Produtos
Alimentícios, a well-
known company for dairy
products in Brazil, has
chosen to leverage the
technological capabilities
of SIG's PAC.TRUST
solution to sustain growth
and prepare for future
expansion. Already an
important partner of SIG,
the company relies on SIG’s
solutions and technologies
for the aseptic filling of
its products.
Annual Report 2022 Business review
Regional review
59
Brazil: Mococa expands partnership with SIG
with adoption of PAC.TRUST digital solution
Mococa Produtos Alimentícios, a well-known
company for dairy products in Brazil, has
chosen the technological capabilities of SIG's
PAC.TRUST solution. The Company has four
aseptic carton filling machines currently in
operation.
Through SIG's PAC.TRUST digital solution,
Mococa will have complete visibility of its
production process, from the arrival of raw
materials at the production plant to confirmation
of delivery of finished products at the point
of sale. This ensures real-time monitoring and
control, and full traceability in minutes, resulting
in increased factory efficiency.
For Mococa Information Technology Manager
Marcos Godinho, SIG’s technology now makes the
company's internal processes even more agile:
“With PAC.TRUST, it will be possible to reduce
manual operations, make the processes even
more reliable, and provide our management
team with information in real time. The team
has information in the palm of their hands,
making our decision-making process even more
accurate, reinforcing Mococa's commitment to
deliver accessible and high-quality products to
its consumers.”
The partnership between Mococa and SIG began
in 2021 with filling machines from SIG for filling
dairy blends. Today, Mococa fills cream, culinary
cream and dairy blends into aseptic carton
packs from SIG.
Environmental and social proof points
Sustainability is becoming increasingly important across the region. In North America, co-
packer Leahy became the first to offer aseptic cartons with SIGNATURE FULL BARRIER
packaging material in food service for the All Friends brand. Nutpods, the plant-based
creamer brand, also launched its first line of zero-sugar Barista oatmilks for home espresso
drinks using the SIGNATURE FULL BARRIER combifitMidi carton packs. In September,
Dos Pinos announced the migration of all its products to paper straws. SIG replaced the
straws with 100% natural, degradable and compostable fibre straws, which disintegrate in
12 weeks without harming the environment.
“This initiative is part of a series of actions that
we developed within the framework of our
2020–2024 Sustainability Strategy to become
a manager of sustainable development and
eliminate single-use plastics.”
Luis Mastroeni
Director of Corporate Relations and Sustainability, Dos Pinos
Annual Report 2022 Business review
Regional review
60
Bag-in-box and spouted pouch also fit perfectly into the trend of sustainable packaging
with its history of replacing rigid packaging with lighter structures that present a significant
reduction in greenhouse gas emissions compared with alternative substrates.
SIG invests in innovative recycling technology to increase value
of recycled aseptic cartons in Brazil
SIG recently announced a BRL 10 million
investment in innovative recycling technology
that will enable polymers and aluminium from
used aseptic carton packs to be recovered and
sold separately for the first time on an industrial
scale in Brazil. By expanding the range of
applications for recycled materials from used
aseptic cartons, SIG expects to increase their
value by more than 50%.
“We’re excited to introduce a new technology in
Brazil that will enable separation of aluminium
and polyethylene layers from carton packs,
thereby expanding the market for these
materials and generating more value from the
separated waste,” says Ricardo Rodriguez,
President and General Manager of the Americas
region. “This project is the latest in a series of
innovative collaborations led by SIG to boost
collection and recycling rates for used aseptic
cartons and grow the recycling chain in a
sustainable way.”
The new recycling plant is currently under
construction in the state of Paraná. It is expected
to begin operating in 2024 with an initial
production capacity of 200 tonnes per month.
Together with industry partners, SIG has also
invested in a plant that went into production
in Germany in 2021 to separate polymers and
aluminium from PolyAl.
Annual Report 2022 Business review
Regional review
61
Looking ahead
Our first aseptic
carton packaging
plant in Mexico.
The construction of our new aseptic carton packaging plant in Mexico proceeded as
planned in 2022. Commercial production commenced mid-February 2023. The plant will
support our ongoing growth trajectory in North America, allowing our team to respond to
market demand with greater agility and flexibility as well as offering improved lead times
and higher levels of service.
Santa Clara, an important strategic customer, participated in the start-up of the production
plant and witnessed the deployment of our technology in the manufacture of its sleeves.
Additional customer visits are scheduled to see our technology in action.
Mexico, the USA and Canada are poised for growth in several market segments. For
example, we are entering the school milk sector having recently secured several contracts
for the supply of aseptic single-serve cartons to schools. In collaboration with a co-packer,
multiple lines are being installed to take advantage of this growing opportunity.
There are many exciting new opportunities for our bag-in-box and spouted pouch business
in South America, such as fruit purée pouches in Chile and bag-in-box for agriculture
solutions in Brazil.
In the USA, strong demand for bag-in-box from major market players has led to market
share gains. We were very pleased to sign Keurig Dr Pepper as our latest customer for bag-
in-box during the year. We are also seeing robust demand for spouted pouch.
Annual Report 2022 Business review
Key performance highlights
62
Key performance highlights
Revenue
Revenue growth¹
Adjusted EBITDA
€ 2.78 bn
2021: €2.06bn
27.4 %
€ 652 m
2021: €571m
Adjusted net income
ROCE
Adjusted EBITDA margin
€ 287 m
2021: €266m
27.3 %
2021: 31.0%
23.5 %
2021: 27.7%
Adjusted EPS diluted
Free cash flow
€ 0.79
2021: €0.79
€ 263 m
2021: €258m
Leverage
3.1 x
2021: 2.5x
1 At constant currency.
Annual Report 2022 Business review
Financial review
63
Financial review
Resilient business model delivering strong revenue growth
The aseptic carton business delivered robust organic growth of 8% for the year, a
combination of volume and price, with share gains in multiple markets. Our customers
continue to invest in new filling machines even in an uncertain economic environment, and
this will underpin our growth for many years to come.
Key events in 2022 impacting the performance of the Group
Acquisition of Scholle IPN
On 1 June 2022, the Group acquired 100% of the shares of Clean Flexible Packaging
Holding B.V. (together with the acquired subsidiaries, “Scholle IPN”) from CLIL Holding B.V.
(“CLIL”). CLIL is controlled by Laurens Last and has subsequently been renamed Clean
Holding B.V. Scholle IPN provides packaging solutions for beverage, food and non-food
products.
The cash consideration for Scholle IPN amounted to €424.3 million. The Group also transferred
33.75 million newly issued SIG shares with a fair value of €686.8 million to CLIL as part of the
consideration. In addition, there is contingent consideration of a maximum of $300 million
(with an estimated fair value of €113.2 million as of 31 December 2022). The Group also repaid
the external loans of Scholle IPN at the closing. The goodwill from the acquisition accounting is
estimated at approximately €930 million as of 31 December 2022. For additional information
about the acquisition, see note 27 of the consolidated financial statements.
The operating performance presented below includes the consolidation of Scholle IPN for
seven months.
Acquisition of Evergreen’s chilled carton business in Asia Pacific
(“ Evergreen Asia”)
On 2 August 2022, the Group acquired Evergreen Asia from Evergreen Packaging
International LLC (“Evergreen”). Evergreen Asia offers chilled carton packaging solutions
in Asia.
The Group paid €329.5 million in cash (subject to customary closing adjustments) at the
time of the closing as consideration for Evergreen Asia. The goodwill from the acquisition
accounting is estimated at approximately €130 million as of 31 December 2022. For
additional information about the acquisition, see note 27 of the consolidated financial
statements.
The operating performance presented below includes the consolidation of Evergreen Asia
for five months.
Annual Report 2022 Business review
Financial review
64
Financing of the acquisitions
The initial cash portion of the consideration for Scholle IPN and the repayment of the
external loans of Scholle IPN were initially financed by proceeds from an unsecured bridge
loan facility. A large portion of this unsecured bridge loan facility was repaid on 30 June
2022 using proceeds from an unsecured Schuldscheindarlehen (“SSD”, a private German
debt placement). The remaining proceeds from the unsecured SSD, together with proceeds
received from a placement of newly issued SIG shares, were used to finance the consideration
for Evergreen Asia. On 28 July 2022, the Group entered into a US Dollar-denominated term
loan. The major part of the proceeds from the term loan was used to repay the remaining
portion of the unsecured bridge loan facility.
The impact on the Group’s financial position of these financing transactions, including the
SIG shares issued and transferred to CLIL as part of the consideration for Scholle IPN, is
described in more detail in notes 22 and 24 of the consolidated financial statements.
Financial performance
Revenue
Total revenue increased by 27.4% on a constant currency basis (34.8% as reported) to reach
€2,779.9 million (2021: €2,061.8 million). The organic revenue growth was 8.0% at constant
currency, approximately 4.5% of price increases, and 120 basis points negative impact
from the loss of aseptic carton sales to Russia. Organic growth of the Group represents
SIG revenue growth excluding the impacts of the acquisitions of Scholle IPN and Evergreen
Asia in 2022.
Scholle IPN contributed €362.6 million of incremental revenue to the Group in 2022, while
Evergreen Asia contributed €60.2 million (total contributions of €422.8 million).
Revenue growth in the segments
Revenue 3rd 2022
by segment
Revenue by product 2022
Carton vs bag-in-box and spouted pouch
€697m
€849m
13%
€900m
€332m
87%
Europe
MEA
APAC
Americas
Carton
Bag-in-box and
spouted pouch
Annual Report 2022 Business review
Financial review
65
In Europe, the ramp-up of 15 filling machines recently placed at a large German customer,
together with market share gains in Spain, drove liquid dairy sales. Growth of non-
carbonated soft drinks was driven by the launch of formats for on-the-go consumption.
Overall, Europe was impacted by the loss of sales to Russia which reduced the European
growth rate by approximately 300 basis points for the year. Customer market share gains in
Poland drove volume improvements through the launch of new products. The contribution
from price increases accelerated during the year. The acquisition of Scholle IPN contributed
€87.7 million to the European constant currency revenue growth of 15.9% in 2022. Organic
growth, excluding the impacts of the Scholle IPN acquisition and adjusting for the impacts
of the consolidation of the former Middle East joint ventures, was 4.4% at constant currency.
The Middle East and Africa (“MEA”) saw strong growth compared with 2021, which was
adversely impacted by COVID-19 and by drought in South Africa. A strategic push to
increase SIG’s presence in liquid dairy packaging has been very successful, with share
gains in South Africa and Saudi Arabia as well as new business in Egypt. SIG is also leading
sustainability in the region with the launch of Recycle for Good in Egypt, the first such
initiative in this country. For the year ended 31 December 2022, revenue growth for MEA was
22.6% at constant currency and 12.1% adjusting for the impacts of the consolidation of the
former Middle East joint ventures.
In Asia Pacific (“APAC”), the aseptic carton business in China was resilient in a market
affected by COVID-19 lockdown measures. Sales of soy milk contributed to revenue growth
and there were launches of new plant-based milk alternatives. In 2022, there were 42 filling
machine wins in APAC, which included further gains in India, where SIG now serves all the
leading customers for dairy and non-carbonated soft drinks. The acquisitions of Scholle IPN
and Evergreen Asia contributed €105.2 million to the revenue growth in APAC in 2022. For
the year ended 31 December 2022, revenue growth for APAC was 19.1% at constant currency.
Organic growth, excluding the impacts of the Scholle IPN and Evergreen Asia acquisitions
and the paper mill divestment, was 7.8% at constant currency.
Strong organic revenue growth in the Americas was driven by price increases and ongoing
volume momentum, especially for liquid dairy in Brazil and Mexico. In the USA and Canada,
there was high demand for broths in aseptic carton, and bag-in-box gained market share
in a buoyant food service market. The acquisition of Scholle IPN contributed €229.9 million
to the revenue growth in the Americas in 2022. Scholle IPN achieved strong revenue growth
in the Americas, reflecting bag-in-box market share gains in food service and processed
fruit as well as price pass-throughs to offset higher polymer costs. For the year ended
31 December 2022, revenue growth for the Americas was 66.4% at constant currency.
Organic growth, excluding the impacts of the acquisition of Scholle IPN, was 11.5% at
constant currency.
Revenue split 2022
Equipment
Carton
7%
74%
Bag-in-box and
spouted pouch
13%
Service
6%
Annual Report 2022
Business review
Financial review
66
Seasonality
The Group’s aseptic carton business experiences moderate seasonal fluctuations, primarily
due to seasonal consumption patterns and performance incentive programmes relating
to sleeves that generally end in the fourth quarter. Customers tend to purchase additional
sleeves prior to the end of the year to meet seasonal demand and to avail themselves
of annual volume rebates, typically resulting in higher sales during the fourth quarter.
Historically, this has resulted in relatively low sales in the first quarter. The chilled carton and
the bag-in-box and spouted pouch businesses are not significantly exposed to seasonality.
Adjusted EBITDA 2022
by segment
Net capex 2022
by segment
SIG aseptic filling machines 2022
by segment
€141m
€201m
€46m
€11m
€15m
173
469
€279m
€86m
1,359
473
€68m
244
Europe
MEA
APAC
Americas
Europe
MEA
APAC
Americas
Europe
MEA
APAC
Americas
EBITDA
Adjusted EBITDA margin1
EMEA
Europe
MEA
APAC
Americas
SIG Group
As of 31 Dec. 2022
As of 31 Dec. 2021
-
23.7%
26.0%
31.0%
20.2%
23.5%
32.2%
33.1%
31.1%
30.0%
26.5%
27.7%
1 Adjusted EBITDA divided by revenue from transactions with external customers.
Adjusted EBITDA increased by €81.6 million, from €570.6 million in 2021 to €652.2 million
in 2022. The increase was mainly driven by top-line contribution of €130.4 million. Adjusted
EBITDA includes initial contributions from acquisitions (€83.1 million) and foreign currency
tailwinds (€52.8 million). These positive impacts were partially offset by year-on-year
increases in raw material-related (€147.9 million) and production-related costs, including
energy and freight, of €50.1 million. Excluding the impacts of the acquisitions and foreign
currency movements, SG&A costs reduced by a marginal amount and as a percentage of
revenue decreased to 11.2% in 2022 compared with 13.2% in 2021.
Annual Report 2022 Business review
Financial review
67
EBITDA decreased by €80.9 million to €481.5 million (2021: €562.4 million). The decrease
was largely due to changes in the unrealised hedging positions (€47.3 million), negative
year-on-year movements in acquisition- and divestiture-related costs (€31.4 million) as
well as an incremental expense in the fourth quarter related to an increase of €74.0 million
in the fair value of the contingent consideration for Scholle IPN (see further note 33 of the
consolidated financial statements).
The adjusted EBITDA margin was 23.5% (2021: 27.7%) reflecting higher raw material, energy
and freight costs as well as the consolidation of Scholle IPN and Evergreen Asia. The
successful implementation of price increases to compensate for the higher absolute input
costs also had a dilutive effect on the margin.
The adjusted EBITDA margin in Europe was positively impacted by top-line contribution.
These impacts were more than offset by higher Input costs and, to a lesser extent, by the
acquisition of Scholle IPN. In 2021, the Europe adjusted EBITDA margin included positive
hedging results in the procurement entity, relating to other segments of the business, which
did not recur in 2022. The MEA adjusted EBITDA margin had strong contributions from
top-line and foreign currencies, which were more than offset by higher input costs. The
Americas adjusted EBITDA margin was impacted by higher input costs (notably freight) and
by dilution from the acquisition of Scholle IPN, which has a large presence in the Americas.
These were only partially offset by positive top-line contribution and foreign currency
tailwinds. APAC benefited from positive top-line contribution, offset by the contribution
from the acquisitions of Scholle IPN and Evergreen Asia and raw material cost inflation. Raw
material cost inflation was less pronounced in the segment due to more localised sourcing.
The APAC margin in the prior year was also negatively impacted when hedging benefits
relating to the segment were included in the Europe segment.
Net income
Adjusted net income in 2022 was €286.8 million compared with €265.7 million in 2021.
The increase of €21.1 million was primarily due to higher adjusted EBITDA, partly offset by
incremental depreciation and higher interest expense.
Net income was €37.8 million in 2022 compared with €172.1 million in 2021. The decrease
of €134.3 million was mainly due to the movements in EBITDA described above, notably
the expense recognised relating to the contingent consideration for Scholle IPN, and to
incremental depreciation and amortisation.
The effective tax rate increased from around 23% in 2021 to around 57% in 2022. The increase
is primarily related to the contingent consideration expense recognised in the fourth quarter.
The adjusted effective tax rate increased slightly from around 23% in 2021 to around 24%
in 2022; the acquisitions of Scholle IPN and Evergreen Asia had a minor negative impact on
the effective tax rate. The effective tax rate is impacted by the relative mix of profits and
losses taxed at varying tax rates in the jurisdictions where we operate.
Annual Report 2022 Business review
Financial review
68
(In € million)
Profit for the period
Non-cash foreign exchange impact of non-functional currency loans and
realised foreign exchange impact due to refinancing
Amortisation of transaction costs
Net change in fair value of financing-related derivatives
Realised gain on settlement of deal-contingent derivative
(relating to repayment of loan)
Year ended
31 Dec. 2022
Year ended
31 Dec. 2021
37.8
(4.6)
7.0
(9.0)
(15.5)
172.1
(10.6)
3.6
-
-
PPA depreciation and amortisation – Onex acquisition
103.5
103.1
PPA amortisation – other acquisitions1
Net effect of early repayment of loans
Interest on out-of-period indirect tax recoveries
Adjustments to EBITDA:
Unrealised loss/(gain) on operating derivatives
Replacement of share of profit or loss of joint ventures with
cash dividends received from joint ventures
Restructuring costs, net of reversals
Loss on sale of subsidiary
Transaction- and acquisition-related costs
Integration costs
Realised gain on settlement of deal-contingent derivatives
Fair value adjustment on inventories
Change in fair value of contingent consideration
Gain on pre-existing interest in former joint ventures
Out-of-period indirect tax recoveries
Impairment losses
Other
Tax effect on above items
Adjusted net income
34.1
1.0
-
39.5
-
4.9
-
24.1
17.1
(16.6)
20.6
74.0
-
-
6.3
0.8
(38.2)
286.8
14.1
3.7
(3.1)
(7.8)
1.6
26.0
12.1
16.5
2.5
-
10.4
-
(48.8)
(10.3)
4.4
1.6
(25.4)
265.7
1
For the year ended 31 December 2022, the Group has adjusted out of net income all PPA amortisation (net of tax) related to
acquisitions. See note 9 of the consolidated financial statements.
Return on capital employed
Post-tax ROCE, computed at an unchanged reference tax rate of 30%, decreased by
370 basis points in 2022 to 27.3% (31.0% in 2021). At the adjusted effective tax rate of
23.7% in 2022, ROCE was 29.7% (34.0% in 2021). The decrease is primarily attributable to
higher PP&E in 2022 due to higher capital expenditure and consolidation of the acquired
businesses.
ROCE
27.3%
Capital expenditure1
Net capital expenditure was €144.0 million in 2022 (2021: €142.7 million), representing 5.2%
of revenue (6.9% in 2021). Investments in property, plant and equipment (“PP&E”) included
the ramp-up of our first aseptic carton plant in Mexico, which started commercial production
in February 2023. This was offset by the sale of a production-related building as part of
1
For the year ended 31 December 2022, the Group also considers proceeds from sales in its calculation of capital expenditure
for PP&E (excluding filling lines and other related equipment) and intangible assets. See note 11 of the consolidated financial
statements.
Annual Report 2022
Business review
Financial review
69
a footprint rationalisation in the Americas. Capital expenditure also included investments
by the acquired companies and innovation-related development costs. High upfront cash
payments from customers in the period reduced the level of net capital expenditure.
We placed 91 aseptic carton filling machines in the field in 2022. Taking account of
withdrawals, the number of SIG aseptic carton filling machines globally reached 1,359, a net
increase of 64.
Net capex 2022
Upfront cash
-137
173
108
PP&E and intangible assets (net of sales)
Gross filler
Cash flows
Our strong cash flow generation continued in 2022, with net operating cash inflows of
€578.2 million (€47.3 million higher than in 2021) and free cash flow1 of €263.1 million
(€4.8 million higher than in 2021).
Net cash from operating activities was positively impacted by contributions from Scholle IPN
and Evergreen Asia. These positive contributions were offset by acquisition-related costs,
including higher interest due to the acquisition financing. Strong upfront cash collection in
the period and net working capital movements, including an expansion of our securitisation
programme, led to an increase in operating cash inflows.
Cash used in investing activities increased in 2022 due to the acquisitions of Scholle IPN
and Evergreen Asia (cash outflow of €700.4 million, net of cash acquired). This increase was
partially offset by the cash inflow resulting from the settlement of deal-contingent derivatives
that were entered into to manage the foreign currency exposure on the acquisitions. The
cash inflows of €76.6 million from these derivatives have been presented in investing
(€61.1 million) and financing (€15.5 million) cash flows. See note 27 of the consolidated
financial statements for further information on these deal-contingent derivatives.
Gross capital expenditure increased with the consolidation of Scholle IPN and Evergreen
Asia, innovation-related development costs (primarily relating to the ongoing development
of the next-generation SIG NEO VITA aseptic carton packaging filling line) and our
investments in filling lines and other related equipment. This increase was offset by the cash
inflows from the sale of a production-related building in the Americas.
Net cash from financing activities increased in 2022. This increase reflects impacts from the
acquisition financing (net cash inflow of €521.0 million), gross proceeds from the issue and
placement of shares (€203.5 million) and the settlement of a deal-contingent derivative as
described above. This was partially offset by an increased dividend payment in 2022 and
the purchase of treasury shares to settle obligations under equity-settled employee share-
based payment plans.
1
For the year ended 31 December 2022, the Group also considers proceeds from sales of PP&E, other than filling lines and
other related equipment, and intangible assets in its calculation of free cash flow. See note 11 of the consolidated financial
statements.
Free cash flow
€ 263.1 m
Annual Report 2022 Business review
Financial review
70
Net debt and leverage
(In € million)
Gross debt
Cash and cash equivalents
Net debt
Net leverage ratio
As of
31 Dec. 20221
As of
31 Dec. 2021²
Net leverage ratio
2,684.1
503.8
2,180.3
3.1x
1,732.4
304.5
1,427.9
2.5x
3.1 x
1
2
In the calculation of the net leverage ratio as of 31 December 2022, adjusted EBITDA includes the adjusted EBITDA of Scholle IPN
and Evergreen Asia from 1 January 2022.
In the calculation of the net leverage ratio as of 31 December 2021, adjusted EBITDA includes the adjusted EBITDA of the former
joint ventures in the Middle East from 1 January 2021.
Leverage increased compared with 31 December 2021 due to the financing of the Scholle
IPN and Evergreen Asia acquisitions. The issue of the SSD totalling €650 million in June
2022 and the term loan for $270 million agreed in July 2022, together with higher lease
liabilities, have resulted in an increase of the Group’s net debt and net leverage ratio.
The new borrowings, together with the proceeds of €204 million from the placement of new
shares in May 2022, secured the long-term financing of the acquisitions and enabled the
repayment or cancellation of the acquisition bridge loan facilities.
The Group signed a €400 million unsecured bridge loan facility agreement on 9 January
2023. The facility may be accessed in June 2023, when €450 million of the Group’s senior
unsecured notes are due for repayment.
Company rating
Ba1
BBB-
Stable
Stable
As of
October 2021
March 2020
Debt rating
Moody‘s
S&P
Other
Dividend
To allow our shareholders to participate in the cash-generative nature of our business, we
have set a dividend pay-out target of 50-60% of adjusted net income.
At the Annual General Meeting to be held on 20 April 2023, the Board of Directors will propose
a dividend of CHF 0.47 per share (2021: CHF 0.45 per share), totalling CHF 179.7 million
(equivalent to €182.5 million as per the exchange rate as of 31 December 2022). This
represents a dividend pay-out ratio of 64% of adjusted net income. If approved by the
shareholders, the dividend will be paid from the foreign capital contribution reserve.
Dividend per share
CHF 0.47
The first aseptic carton production plant in India
The Group announced in February 2023 that it will construct its first aseptic carton production
plant in India. Operations are planned to start in 2024. SIG will invest around €60 million
to reach a production capacity of up to four billion packs. In addition, land and buildings
will be financed through a long-term lease with a net present value of approximately €30
million.
Annual Report 2022 Business review
Financial review
71
Foreign currencies
We operate internationally and transact business in a range of currencies. Whilst our
reporting currency is the Euro, we generate a significant portion of our revenue and costs in
currencies other than the Euro. Increases or decreases in the value of the Euro against other
currencies in countries where we operate can affect our results of operations and the value
of balance sheet items denominated in foreign currencies. Our strategy is to reduce this
exposure through the natural hedging that arises from the localisation of our operations. In
addition, we systematically hedge all key currencies against the Euro using a twelve-month
rolling layered approach.
We supply semi-finished and finished goods to certain of our non-European operations in
Euros, and a number of our key raw material suppliers charge us for raw materials in Euros
or US Dollars. As a result, a greater portion of our costs is denominated in Euros and, to a
lesser extent, US Dollars compared with the related revenue generated in those currencies.
Accordingly, changes in the exchange rates of the Euro and the US Dollar compared with
the currencies in which we sell our products could adversely affect the results of operations.
We expect to mitigate some of these cost mismatches through the opening and expansion
of local production facilities in certain markets, ongoing efforts to qualify local suppliers and
by using foreign currency derivatives.
Outlook
For 2023, the Company expects revenue growth of 20-22% at constant currency. Scholle IPN
and Evergreen Asia will be consolidated for an additional five months and seven months
respectively. Organic revenue growth is expected to be 7-9%. Price increases in the carton
business are expected to continue to contribute to top-line growth (resin escalators for the
bag-in-box and the spouted pouch businesses are not included in the guidance).
The adjusted EBITDA margin is expected to increase by 50-150 basis points, implying a
range of 24-25%. The expected improvement compared with 2022 is subject to input cost
and foreign currency volatility.
Net capital expenditure is forecast to be within a range of 7-9% of revenue and the dividend
pay-out ratio is expected to be within a range of 50-60% of adjusted net income.
The Company maintains its mid-term revenue growth guidance of 4-6% at constant
currency, with the two acquisitions expected to enable resilient growth in the upper half
of this range across an expanded platform. For the enlarged Group, the adjusted EBITDA
margin is expected to be above 27% in the mid-term, driven by continued margin expansion
in the aseptic carton business and the acquired businesses as well as the realisation of
synergies from the acquisitions. Net capital expenditure is forecast to be within a range
of 7-9% of revenue and the dividend pay-out ratio is expected to be within a range of
50-60% of adjusted net income. SIG’s business is expected to continue to be strongly cash-
generative, and the Company maintains its mid-term leverage guidance of towards 2x with
a milestone of around 2.5x at the end of 2024.
Annual Report 2022 Business review
Financial review
72
7,721.4
382.3
20.20
(18.9%)
25.92
18.46
902,934
Share information
for the year ended 31 December 2022
Market capitalisation1 (CHF million)
Number of shares (in million)
Share price (in CHF)
Total shareholder return
Share price closing high (in CHF)
Share price closing low (in CHF)
Average daily volume
1 Excludes treasury shares.
120
100
80
60
31 December
2021
March
2022
June
2022
September
2022
30 December
2022
SIG
SMIM
Alternative performance measures
Additional information about alternative performance measures used by management
(including reconciliations to measures defined in IFRS and the refined definitions of adjusted
net income, free cash flow and net capital expenditure) is included in the consolidated
financial statements for the year ended 31 December 2022.
Definitions of the Group’s alternative performance measures can be found via the following
link: https://www.sig.biz/investors/en/performance/definitions
Annual Report 2022 Business review
Enterprise risk management
73
Enterprise risk management
The Group’s enterprise risk management process is designed to identify, assess and
mitigate actual and potential, as well as emerging risks to our business in order to protect
the Group from negative financial and/or reputational impact. Furthermore, the risk
management process facilitates the disclosure of risks to key stakeholders. It also raises
internal awareness and provides a basis for informed decision-making. The process, which
is periodically reviewed by the Audit and Risk Committee and approved by the Board of
Directors, is led by the Group General Counsel & Chief Compliance Officer.
Our risk management process is carried out in conformity with the Swiss Code of Best
Practice for Corporate Governance. In addition, climate change-related risks and
opportunities are identified following the recommendations of the Task Force for Climate-
related Financial Disclosures (TCFD), see > page 366. Our approach to addressing climate-
related risks and opportunities is integrated in our risk management process and includes
transition risks in fast moving consumer goods markets and physical risks for our supply
chain as well as opportunities related to our low carbon footprint innovations. For more
information on identified climate-related risks and opportunities see > page 96.
Management is responsible for identifying and reporting risks and for implementing and
tracking mitigation measures. Each top risk is owned by a member of the Group Executive
Board. Each mitigation action has an owner at Group level who works closely with the
respective regional functions to ensure local implementation. The mitigation actions
are frequently reviewed as part of our strategic initiatives and management processes
throughout the year.
At least annually, we review our top risks and mitigation actions in workshops with our
regional and functional leadership teams. The results of these workshops are then discussed
with the Group Executive Board. The top risks and mitigation actions are subsequently
reviewed by the Audit and Risk Committee and ultimately by the Board of Directors. The
Audit and Risk Committee also reviews the implementation of the risk management system
and the integrity and accountability of the risk management function on an annual basis.
As part of the enterprise risk management process, the Audit and Risk Committee also
regularly discusses risks that could materially impact our business and financial position,
as well as the development of internal controls to mitigate such risks. In addition, the Audit
and Risk Committee periodically reviews the internal policies and procedures designed to
secure compliance with laws, regulations and internal rules regarding insider information,
confidentiality, bribery and corruption, sanctions and adherence to ethical standards, and
assesses the effectiveness thereof. The Audit and Risk Committee also discusses with the
Group CFO and the Group General Counsel & Chief Compliance Officer any legal matters
that may have a material impact on the Group’s business or financial position and any
material reports or inquiries by regulatory or governmental agencies that could materially
impact the Group’s business or financial position. The Audit and Risk Committee reports
material matters to the Board of Directors on a regular basis.
The risks that we may be exposed to are particularly in the areas of strategy, operations,
sustainability, regulatory, legal and compliance, as well as finance.
Annual Report 2022 Business review
Enterprise risk management
74
Strategic risks
Description
We are exposed to several strategic risks, such as:
• The risk that our business model no longer adequately addresses the needs of customers
and consumers.
• The risk of changing customer or consumer preferences.
• The risk of existing competitors or new market players.
• The risk that we do not keep up with new technology trends.
How we mitigate risk
• We regularly review our strategy.
• We monitor and assess the competitive landscape.
• We constantly seek feedback from our customers, suppliers and other stakeholders.
• We monitor technology trends and invest in development of new technology.
• Our business is geographically diversified.
How we turn risk into opportunity
• We adapt our strategy where appropriate to be a pioneer in our industry.
• We explore new markets and business opportunities to expand our business.
• We implement new technology to meet and exceed customer and consumer expectations.
Operational risks
Description
We are exposed to several operational risks, such as:
• The risk that our supply chains are disrupted.
• The risk that we are not able to attract and retain employees, resulting in limitations to
maintaining, developing and growing the business.
• The risk that our operations may have a negative impact on the environment or
communities.
• The risk that we do not meet our high standards to ensure the health and safety of our
employees.
• The risk that our employees cannot perform their duties due to events such as a pandemic.
• The risk of loss of or damage to key manufacturing facilities (incl. IT failures).
Annual Report 2022 Business review
Enterprise risk management
75
How we mitigate risk
• We expand our supply base where appropriate, including new suppliers and materials.
• We take measures and foster a culture that prevents people incidents and work-related
illness.
• We have implemented processes to ensure business continuity planning, including a
pandemic contingency plan.
• We constantly monitor cybersecurity risks and have implemented an information security
management system to prevent security incidents (including cyber attacks).
• We take care of the wellbeing of our employees to be an employer of choice.
How we turn risk into opportunity
• Our responsible sourcing programme as part of our Way Beyond Good offers opportunities
to develop sustainable suppliers that are more resilient towards climate change impacts.
• Our employer branding and employee wellbeing programmes help us become an
employer of choice for our existing and new talent.
ESG risks
Description
We are exposed to several sustainability risks, such as
• The risk that acute or chronic impacts resulting from climate change affect forests and
thus the availability of and costs for wood, one of our key raw materials.
• The risk that regulators introduce stricter climate-related regulations, such as GHG taxes
or requirements regarding the environmental performance of our products.
• The risk of potential negative impacts on human rights of our own operations, our supply
chain or with respect to our major business relationships.
How we mitigate risk
• We have set GHG reduction targets in line with the Science Based Targets initiative.
• We drive innovation to further reduce the carbon footprint of our packaging solutions.
• Through our partnerships, we help to mitigate negative environmental impacts and
enhance positive impacts, including for example initiatives to create additional sustainably
managed forest land, and foster the collection and recycling of used beverage cartons
in priority markets.
• We source 100% of our aseptic carton paperboard from FSC™-certified suppliers.
• We engage with our suppliers to further reduce the climate impact of key raw materials.
• We source 100% of the aluminium for our aseptic carton packs from ASI-certified
suppliers.
• We are a signatory to the United Nations Global Compact and committed to adhering to
the standards encompassed within the International Bill of Human Rights, the International
Labour Organization’s core labour standards and the Ethical Trading Initiative Base Code.
• We conduct human rights due diligence.
Annual Report 2022 Business review
Enterprise risk management
76
How we turn risk into opportunity
• We invest in research and development to better meet the needs of customers and
consumers, including enhancing the environmental performance of our packaging
solutions.
• We are committed to reducing the carbon footprint of all our packaging and pioneer
carbon negative packaging concepts.
• An increasing demand for sustainable products offers great business opportunities.
Regulatory, legal & compliance risks
Description
We are exposed to several regulatory, legal and compliance risks, such as
• The risk of increasing regulatory requirements regarding, for example, the environmental
performance of our products.
• The risk of stricter trade restrictions, including economic sanctions and export controls,
prohibiting or restricting us from doing business in certain countries or with certain
designated persons.
• The risk that managers or employees fail to act with integrity, in compliance with
applicable laws and regulations or in accordance with our internal policies and processes,
which could result in reputational and financial impact for the Group.
• The risk of legal disputes.
How we mitigate risk
• We maintain a compliance management system, including regular compliance risk
assessments and process-oriented controls.
• We provide guidance to our employees on acting with integrity through our compliance
policies and training.
• We have implemented control systems to ensure compliance with applicable trade
restrictions.
• We operate a grievance mechanism for reporting any compliance issues or concerns.
• We monitor legislative developments and take action to comply with upcoming applicable
laws and regulations.
How we turn risk into opportunity
• Acting with integrity, also beyond compliance with applicable laws and regulations, and
conducting business based on values, enhances our Group’s reputation.
• We invest in research and development of sustainable and environmentally friendly
products to meet and exceed regulatory requirements and customer expectations.
Annual Report 2022 Business review
Enterprise risk management
77
Financial risks
Description
We are exposed to several financial risks, such as
• The risk of increased costs (including commodity, freight, energy and other input costs)
due to, for example, inflation.
• The risk of fluctuations in exchange rates.
• The risk that our financial reporting is inadequate.
• The risk of increasing interest rates.
• The risk that we do not have sufficient financial resources and liquidity.
How we mitigate risk
• We have implemented an internal control system for financial reporting.
• We have established treasury policies that identify risks faced by the Group and set out
policies and procedures to mitigate those risks.
• We maintain a broad network of financing sources, including bank financing and debt
capital markets, in different geographies, and we maintain adequate cash and liquidity
reserves.
• We have implemented hedging policies to manage the risk of fluctuations in exchange
rates and commodity prices.
• We have processes in place to monitor and manage our costs.
How we turn risk into opportunity
• Our reporting of risks and opportunities adds transparency, permitting investors to make
informed decisions.
Annual Report 2022 78
The Way
Beyond Good
79 Strategy and governance
80
84
Introduction to our CR Reporting
Responsibility built in
92 Approach and performance
93
Climate+
105
Forest+
109
Resource+
121
Food+
126
Sustainable innovation
135
Responsible culture
135 Our supply chain
141 Human rights
145 Our people
154 Health, safety and wellbeing
160 Communities
163 Governance and ethics
166 Performance summary
167
Key performance indicators
170
Progress towards our 2025+ targets
Annual Report 2022
The Way Beyond Good
Strategy and governance
79
Strategy and
governance
80
Introduction to our CR Reporting
84 Responsibility built in
Annual Report 2022 The Way Beyond Good
Strategy and governance
Introduction to our CR Reporting
80
Introduction to our
CR Reporting
We’re on a journey to create the perfect pack –
a pack that gives more to people and planet than
it takes out.
The perfect pack
does not exist… yet.
But one day it will,
and it will:
Remove more carbon from the
atmosphere than is emitted during
the pack's life-cycle.
Be made from endlessly renewable
materials and end the use of
aluminium.
Bring safe, healthy nutrition to
everyone.
Be fully and easily recyclable -
anywhere in the world.
Getting there will stretch us further than we have ever gone. But we have already started
that journey. We call it The Way Beyond Good.
The Way Beyond Good sets out industry-leading goals in four interconnected action
areas – Climate+, Forest+, Resource+ and Food+ – all underpinned by our commitment
to sustainable innovation and our responsible culture. These priorities are informed by an
assessment of our most material environmental and social topics (see > pages 390-391).
Together, our actions in each of these areas will produce lasting change and a net positive
impact on people and the planet as we strive to give back more than we take.
Annual Report 2022
The Way Beyond Good
Strategy and governance
Introduction to our CR Reporting
81
The Way Beyond Good
SUSTAINABLE INNOVATION & RESPONSIBLE CULTURE
Annual Report 2022
The Way Beyond Good
Strategy and governance
Introduction to our CR Reporting
82
About our CR reporting
Our corporate responsibility (CR) reporting on
environmental, social and governance (ESG)
topics is included within SIG’s Annual Report.
This Way Beyond Good chapter provides
an overview of CR governance, progress
towards our Way Beyond Good ambitions,
and performance on our most material
environmental and social topics. Further
ESG disclosures can be found in the
appendix (see > pages 371-372).
Reporting standards
We report in accordance with the Global
Reporting Initiative (GRI) Standards and a
GRI content index is included in the appendix
(see > pages 387-410). We also align our
CR reporting and ESG disclosures with
various other recognised external frame works
(see > pages 371-372), including the United Nations
Global Compact, the United Nations Sustainable
Development Goals, the Task Force on Climate-
related Financial Disclosures (TCFD) framework
and the EU Taxonomy.
Assurance
Key performance indicators (summarised
on > pages 167-169) have been externally
assured with limited assurance by Pricewater-
house Coopers GmbH Wirtschafts prüfungs-
gesellschaft. See assurance statement
on > pages 411-413.
Scope of our CR reporting
Our CR reporting covers the 2022 calendar year.
Unless otherwise stated, CR data in this report:
covers all operations globally that were fully
owned by SIG at the start of 2022, which includes
all operations related to our aseptic carton
business (including research and develop ment,
sleeve and spout production, filling machine
assembly, technical service and offices); and
excludes our new bag-in-box and spouted
pouch business (formerly Scholle IPN) and our
new chilled carton business (acquired from
Evergreen Asia) – both acquired mid-way
through 2022 – as well as our joint venture
in Japan.
Find out more about our approach to ESG topics
We publish detailed policies, including public
commitments, on ESG topics on our website.
For each topic, we explain why it is material for
SIG, state what our commitment is, and set out
our policy and approach. This publicly available
summary is supported by an in-depth internal
ESG Policy Manual to guide our approach across
the business.
We want to hear from you
We welcome stakeholder feedback on our
CR approach, performance and reporting.
Please contact Ingo Büttgen, Head of Corporate
Communication, at waybeyondgood@sig.biz.
Annual Report 2022
The Way Beyond Good
Strategy and governance
Introduction to our CR Reporting
83
External recognition for CR performance and disclosure
EcoVadis Platinum
Our Platinum rating from EcoVadis
again puts SIG in the top 1%
of businesses participating in
its latest sustainability assessment.
MSCI AA
Our AA rating from MSCI places SIG
as an industry leader on ESG criteria.
Sustainalytics
We further improved our ESG Risk Rating
score from Sustainalytics this year from
13.4 to 13.3 out of 100, positioning
SIG as low-risk for investors.
FTSE4Good Index Series
SIG Group AG is a constituent of the
FTSE4Good Index Series following
the FTSE4Good Index Series
December 2022 review. Created by
the global index provider FTSE Russell,
the FTSE4Good Index Series is
designed to measure the performance
of companies demonstrating strong
ESG practices.¹
The Sustainability Yearbook 2023
SIG received the distinction of
becoming a member of The Sustainability
Yearbook 2023 based on the
S&P Global Corporate Sustainability
Assessment survey (used to inform the
Dow Jones Sustainability Indices, DJSI),
which we responded to for the second
time. We performed in the top decile of the
Containers & Packaging Industry with a
score of 74, reflecting an improvement of
seven points compared with
the previous year.²
SXI Switzerland Sustainability 25® Index
We maintained our position among the top
25 most sustainable companies listed on
the SIX Swiss Exchange based on a third-
party assessment.
1
FTSE Russell (the trading name of FTSE International Limited and
Frank Russell Company) confirms that SIG Group AG has been
independently assessed according to the FTSE4Good criteria,
and has satisfied the requirements to become a constituent of
the FTSE4Good Index Series. The FTSE4Good indices are used
by a wide variety of market participants to create and assess
responsible investment funds and other products.
2 As at 31 December 2022.
Annual Report 2022
The Way Beyond Good
Strategy and governance
Responsibility built in
84
Responsibility built in
Sustainability is built into our Corporate Compass – our business strategy, which guides our
business decisions at every level – as one of four key business priorities (see > pages 37-42).
The Way Beyond Good drives our progress on sustainability, as well as supporting our other
three business priorities on growth, customer and people. It is also fundamental to our
purpose – to partner with customers to bring food products to consumers around the world
in a safe, sustainable and affordable way.
Governance
The Nomination & Governance Committee (NGC) oversees the Company’s strategy and
governance on corporate responsibility for ESG matters, in particular regarding key issues
that may affect the Company’s business and reputation. The NGC advises the Board of
Directors (BoD) on such matters, and reviews and recommends to the BoD the Company’s
public reporting on ESG. The Group CR Director provides to the Committee, and sub-
sequently to the BoD, twice-yearly updates on ESG strategy and performance, as well as
presenting to the BoD in its annual strategy meeting.
Ultimate accountability for our performance and progress on The Way Beyond Good lies
with our CEO and Group Executive Board (GEB) – and this is built into their remuneration via
our Short-Term Incentive Plan. Every GEB meeting includes standing items on responsibility
topics. GEB members are part of our Responsibility Steering Group (RSG), which meets
twice a year to review progress and ensure alignment across the business.
Each of the Way Beyond Good action areas and enablers is owned by a member of the RSG –
which includes senior representatives of key functions and each region – who is accountable for
setting stretching goals and delivering progress through targeted work streams. Responsibility
leaders from relevant functions and regions are responsible for implementing the Way Beyond
Good targets, with support from relevant experts across the business.
Our network of local Way Beyond Good Champions gets employees involved through regular
campaigns and local community engagement programmes (see > pages 160-162). In our
latest employee survey, we achieved outstanding results on CR, significantly outperforming
both industry and high-performance benchmarks.1 Of the employees who participated,
82% are pleased with the contribution SIG is making towards community and society (Way
Beyond Good) and 89% believe SIG does a good job promoting environmental responsibility
(with our products) in the packaging industry.2
The SIG Way Beyond Good Foundation supports our ambitions through targeted charitable
projects and partnerships that strengthen civil society and create positive impacts for the
environment (see > pages 160-162). Members of our GEB and senior management sit on the
Foundation’s Board of Trustees.
We also collaborate with partners, such as Forum for the Future and the Sustainability and
Health Initiative for NetPositive Enterprise (SHINE), to drive the wider net positive agenda
and catalyse transformative change – beyond our own business and value chain – to create
wider benefits for society and the environment (see > pages 373-375).
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
2
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
85
Responsibility governance structure
Group Executive Board (GEB)
Role: Accountable for Responsibility Roadmap
Responsibility Steering Group (RSG)
Role: Ensure alignment and cross-functional collaboration in the implementation
of SIG's sustainability goals on The Way Beyond Good.
Chair: Director Corporate Responsibility
Chief
Executive
Officer
Chief
Financial
Officer
Chief
Technology
Officer
(CEO)
(CFO)
(CTO)
Chief
People &
Culture
Officer
(CPCO)
President &
General
Manager
Europe
President &
General
Manager
Asia Pacific
North
President &
General
Manager
Asia Pacific
South1
President &
General
Manager
Americas
President &
General
Manager
Middle
East & Africa
President
Scholle IPN,
an SIG
company1
Vice President Global Product Marketing2
Vice President
Group Legal & Compliance
Senior Vice President Commercial
Director Investor Relations
Vice President
Global Sourcing & Procurement
Head of Corporate Communication
Vice President
Global Research & Development
Managing Director
Way Beyond Good Foundation
External
Responsibility
Advisory Group
(RAG)
Role: Provide
strategic input in
the development
of SIG’s CR agenda
and feedback on
SIG’s approach
and performance.
Responsibility leaders from
functions/regions
Role: Responsible for
implementing SIG's strategy
and delivering must wins.
Way Beyond
Good Champions
Role: Engage employees
on key topics related to
The Way Beyond Good.
Way Beyond
Good Foundation
Role: Drive activities and
projects that strengthen civil
society and create positive
impacts for the environment.
1 Joined the GEB and RSG as of 1 June 2022.
2 Joined the RSG as of 1 July 2022 in place of Senior Vice President Innovation / Vice President Global Marketing.
Integrating external insight
Members of our C-suite meet twice a year with our independent Responsibility Advisory
Group (RAG), a group of external experts who provide strategic input to our RSG and GEB
and challenge us to improve. This year, we discussed opportunities for our business in the
context of a rapidly evolving ESG environment and the integration of our newly acquired
bag-in-box and spouted pouch business.
RAG members emphasised the importance of focusing on positive impact across our Way
Beyond Good targets and communications, and supported our focus on increasing positive
impact in the Food+ action area – by helping customers deliver more nutritious food to
people who need it most around the world – as part of our net positive ambition.
All five RAG members, including new members from SATS and WWF, offer their views on the
following pages.
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
86
Greg Norris (RAG Chair)
Co-Director of the
Sustainability and Health
Initiative for NetPositive
Enterprise (SHINE)
“Discussions at the RAG meetings remained
strong this year and we welcomed two new
members who bring really valuable NGO and
food sector perspectives to the group.
I continue to be impressed by the level of
participation from SIG’s CEO and other
executives, and their genuine openness to critical
challenge. The focus is very much on what we,
as independent advisors, think they need to
hear, not on what they might want to hear.
SIG’s aspiration to be net positive is highly
ambitious. When combined with science-based
footprint reduction targets, that’s really as
ambitious as it gets. This powerful combination
has already helped SIG gain significant
momentum on climate action and offers great
potential to help the company drive progress
on forests and biodiversity.
The COP15 global biodiversity summit made
clear that preserving natural habitats must be a
top priority and SIG’s exciting new partnership
with WWF Switzerland will support this. I also
see an opportunity for SIG to build on its
contributions to net positive and handprinting
methodologies on climate by pioneering the
development of state-of-the-art assessments
on biodiversity that can help show companies
the way to becoming truly regenerative.”
Gail Klintworth
Chair, Non-Executive
Director and Board Advisor:
Shell Foundation, Integrity
Action, Globescan, Tiger
Brands, MAS Holdings,
Al Dabbagh Group, Third
Way Africa, Savo Project
Developers, SYSTEMIQ
“SIG is deeply committed to its mission to offer
the most sustainable packaging solution for liquid
food. This mission is embedded in the purpose
of the company and SIG’s executives are driving
progress in their functions and regions.
The Way Beyond Good sets out ambitious
targets to tackle major global challenges and
the new WWF partnership raises SIG’s level of
ambition further on forests. I believe SIG has the
heart, commitment and resources to turn these
commitments into action, and is nimble enough
to disrupt the market and help shape the future
of liquid food packaging.
Acquisitions this year offer great potential for
SIG to expand its contribution to food availability
by, for example, using bag-in-box solutions
for bulk storage to avoid harvest food loss in
emerging markets. A strong focus on innovation,
in partner ship with customers, will be vital for SIG
to develop solutions that can be scaled up quickly
to get more nutrition to the people who need it
in a sustainable way and at an affordable price.
Going forward, I want to see SIG think deeply
about what its ideal packaging portfolio would
be in 20 years’ time in terms of its contribution
to society, climate action, biodiversity and waste
management – not only taking a global view,
but also looking at specific local impacts in the
places where the company operates, sources
from and serves.”
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
87
Matt Sherwood
Chief Executive Officer,
WeVidIt
“SIG’s Way Beyond Good targets are way beyond
ambitious and, as they deliver, the company is
continually moving the goalposts to go even
further. A strong focus on ESG and exciting new
acquisitions put SIG in a phenomenal position
to grow its business and its positive impact on
society.
On top of a great environmental track record,
SIG has made impressive strides in its social
responsibility by creating a great place to work
for employees at all levels of the business
through its focus on education, high quality
working standards, inclusion and gender
equality. This culture is supporting retention by
empowering people to advance their careers at
SIG and will help secure the buy-in needed for a
smooth integration of newly acquired businesses.
The latest acquisitions make great business
sense. Adding bag-in-box and pouch solutions to
SIG’s portfolio will unlock value for shareholders
by moving into new verticals where the company
has the right intellectual capital, clients and
consumers to accelerate revenue growth
exponentially. It’s also a game-changer for the
industry as SIG is miles ahead on sustainability.
Improving recyclability of bag-in-box bags and
pouches is a huge challenge and SIG is already
getting ahead on this through innovation in
mono-materials.”
Thomas Vellacott
Chief Executive Officer,
WWF Switzerland
“SIG’s targets offer the level of ambition that
we need to meet global challenges, including
science-based climate targets to achieve a 1.5°C
scenario. The breadth of its ambition, integrating
climate, forest, resource and food, really sets
SIG apart from other companies.
SIG also has an impressive track record of
putting its commitments into action. Sourcing
100% FSC™-certified liquid packaging board is
a huge achievement in itself and the company
is now going further on forest management and
restoration to support biodiversity.
We are seeing growing interest in biodiversity,
but SIG is one of very few companies that are
taking large-scale action on this. Its commitment
to restore, protect or improve the management
of 650,000 hectares of forest by 2030, and
its partner ship with WWF Switzerland to drive
progress on this, goes way beyond what others
are doing. This is the kind of pioneering role
SIG can play, setting the benchmark for what a
credible commitment looks like.
Pioneers like SIG play an important role in
showing that what many consider impossible
is in fact possible and can be done profitably.
The next big challenge – and opportunity – is to
magnify SIG’s positive impact beyond its own
business by engaging suppliers, customers and
peers to deliver at scale across the sector as
a whole.”
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
88
Veronique
Cremades-Mathis
Chief Strategy &
Commercial Officer, SATS
“SIG is clearly taking sustainability to heart by
leveraging its relationships and know-how to
be the best contributor to society in its field.
The company is ambitious, but it is realistically
ambitious with tangible plans to translate
ambition into action. This is a vital distinction
because good intentions alone cannot change
the world.
Aseptic packaging plays a key role in protecting
food, ensuring effective distribution and avoiding
food waste through long-life ambient storage.
Simplifying packaging materials for its cartons
through aluminium-free1 solutions is SIG’s key
achievement on The Way Beyond Good to date,
made all the more impressive because this
innovation has not been driven by regulations but
by purpose. Now SIG has an opportunity to use
its know-how to simplify materials and increase
recyclability of its newly acquired bag-in-box
packaging, which offers the ability to preserve
food on a bigger scale.
It's also important to remain vigilant on the
social and governance aspects of ESG. SIG
takes great pride in its commitment to diversity
and inclusion, and there is an opportunity to
look beyond aspects such as gender to lead on
economic inclusion, through a focus on living
wages not just for SIG employees but for workers
in the packaging value chain, such as those who
are involved in waste collection and recycling.”
1
With no aluminium layer.
Embedding corporate responsibility in core business processes
CR is built into the way we do all aspects of our business. For example:
• Solutions selling: Sustainability is a key value driver for our packaging solutions. Sales
teams are trained to make this part of every conversation with customers. We include
our SIGNATURE portfolio and other sustainable innovations in our marketing globally,
and our Fill Beyond Good programme helps customers improve the sustainability of their
factories.
• Product innovation: The Way Beyond Good ambitions are driving specific sustainable
innovation workstreams, and environmental performance is one of the core value drivers
for our product innovation, alongside product safety and commercial considerations.
• Manufacturing: The safety of our people and products is critical to our manufacturing
operations and quality controls, as is managing environmental impacts from production.
• Procurement: Working with responsible suppliers and sourcing raw materials from
responsibly managed resources is central to procurement at SIG and we train the teams
involved.
• People and culture: Way Beyond Good goals on topics such as diversity, equity and
inclusion, talent development and employee satisfaction support our people and culture
strategy to foster a winning team.
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
89
• Remuneration: Our Short-Term Incentive Plan for members of our Group Executive
Board, as well as managers and experts with a variable income component, includes a
measure linked to a third-party assessment of our ESG performance by EcoVadis. For
certain teams, such as procurement, we also link their remuneration to specific ESG
performance indicators related to their roles.
Investor relations: Interest in ESG topics continues to grow in the investment community.
Our investor engagement includes dedicated ESG meetings and we publish detailed
policies and commitments on our website. SIG has continued to score well in recognised
ESG ratings (see > page 83) and we have raised further finance based on ESG credentials
this year (see box below).
•
Securing further ESG-linked finance
SIG issued a €650 million Schuldschein
sustainability-linked loan in 2022. The high
level of demand from a wide range of investors
resulted in the transaction being upsized
from a launch amount of €300 million.
The Schuldschein is linked to the Company’s
ESG performance as assessed by EcoVadis, with
the margins adjusted up or down accordingly.
Achieving its target EcoVadis score therefore
results in a reduction in overall funding costs.
This sustainability-linked Schuldschein adds
to existing loan facilities that are linked to our
EcoVadis score and to reductions in Scope 1
and 2 greenhouse gas emissions.
In line with our ambition to have a net positive
impact on people and the planet, we track
and report our progress through external
assessments. Ecovadis is a global independent
sustainability ratings provider that analyses
our performance within the categories of
environment, labour and human rights, ethics
and sustainable procurement. This year, we
were again awarded a Platinum rating, putting
us, for the sixth consecutive year, in the top 1%
of businesses participating in the assessment.
SIG’s specific strengths include our purchase
and generation of renewable energy, actions
to promote gender inclusion in the workplace,
and comprehensive reporting on sustainable
procurement issues.
• Risk management: Our most material ESG risks – including climate-related risks
(see > page 96) – are integrated into our annual enterprise risk management process,
which assesses risks based on potential financial and reputational implications for the
business. ESG topics are integral to several of the main business risks identified in our
latest enterprise risk assessment (see next page). See > pages 73-77 for more on our
enterprise risk management. Each key ESG risk has an owner at executive management
level who is responsible for the implementation of risk management measures in their
area of responsibility, as well as a mitigation action owner within the relevant global
function supported by regional teams to ensure local implementation.
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
90
Key business risks related to CR topics
• Environment – risks of environmental
regulations on recycling of beverage cartons,
aseptic carton packaging systems, closures,
straws and raw materials; shift in public
opinion regarding carton packaging.
• Supply – risks of disruptions in the supply
chain, strikes or similar employee actions,
resulting in the inability to supply our
customers.
• Compliance – risks of non-compliance
with applicable laws, regulations and internal
policies in areas such as environment,
health and safety, human rights, unfair
competition, insider trading, tax, sanctions,
fraud/embezzlement or money laundering.
Information security – risks of cyber attacks
and breach of data privacy.
•
• Quality – risks of supplying faulty products
or non-compliance with product and safety
regulations.
• Human resources – risks of loss of key
personnel, inability to attract new talent and
inability to drive diversity and inclusion.
Managing ESG through certification to recognised standards
We use independent third-party certifications to recognised external standards to demon-
strate our robust management of ESG topics and support continuous improvement in line
with best practice. These include:
• ASI (Aluminium Stewardship Initiative): ASI Performance Standard certification is in
place for our aseptic carton business, all related SIG production plants have ASI Chain of
Custody certification and, from January 2023, all aluminium foil for our aseptic cartons is
purchased with ASI certification.
• BRCGS (Brand Reputation Compliance Global Standards) packaging standard (Issue 6):
AA Grade certification maintained at all our aseptic carton production plants.
•
•
• FSC™ (Forest Stewardship Council™): Chain of Custody certification in place at all our
carton production plants – including the three chilled carton production plants acquired
in 2022 – and related sales offices (licence code FSC™ C020428). All our liquid packaging
board is purchased with FSC™ certification.
ISCC PLUS: Certification to control ISCC PLUS materials is in place at all our aseptic
carton production plants and two bag-in-box production plants to handle polymers
linked to renewable or recycled material via an independently certified mass balance
system that we use in some of our packaging solutions.
ISO 14001: Global certification for environmental management is in place for our aseptic
carton business, with certification planned for SIG Group, including our newly acquired
bag-in-box and spouted pouch business and chilled carton business, in 2023.
ISO 14040 and ISO 14044: Independent experts use these standards to carry out ISO-
conformant life-cycle assessments of our packaging solutions that are critically reviewed
by an independent panel for additional verification.
ISO 27001: Certification achieved for information security management at SIG IT in
China, Germany and Romania.
ISO 45001: Global certification achieved for health and safety management for our
aseptic carton production plants, and at our chilled carton production plant in Taiwan.
•
•
•
Annual Report 2022 The Way Beyond Good
Strategy and governance
Responsibility built in
91
•
•
ISO 50001: Certification for energy management maintained at four of our aseptic carton
sleeve production plants (all three plants in Europe and our plant in Rayong, Thailand).
ISO 9001: Global certification for quality management is in place for our aseptic carton
business.
• LEED: Platinum certification for sustainable buildings achieved at SIG’s Middle East and
Africa headquarters in Dubai. Gold certification achieved at SIG’s second plant in Suzhou
(China) and planned for the new SIG plant in Mexico.
• SEDEX Members Ethical Trade Audits (SMETA): Audits completed at all our aseptic
carton production plants, as well as our office site in Mexico and several SIG legal entities
in Germany and Switzerland, on a two-yearly cycle. The next scheduled audits in 2023 will
also include the production plants we acquired this year.
Integrating new businesses
During 2022, we welcomed our new bag-in-box, spouted pouch and chilled beverage carton
businesses to SIG Group through the acquisitions of Scholle IPN and Evergreen Asia’s
chilled carton business. We are working to integrate these businesses into our established
ESG governance, policies and processes – including relevant Way Beyond Good ambitions.
Completing this integration will take time and for this reason the newly acquired businesses
are excluded from the scope of our CR reporting in 2022, except where otherwise stated.
But we have already made progress in some areas.
In 2022, Ross Bushnell, President Scholle IPN, joined our GEB and RSG to represent our
bag-in-box and spouted pouch business as complementary packaging solutions to SIG’s
beverage cartons. The new chilled carton business – which includes three production
plants in China, South Korea and Taiwan – is represented on both the GEB and RSG by SIG’s
President & General Manager Asia Pacific North as part of our carton business in this region.
Our Code of Conduct was communicated from day one of the integrations and virtually
all new colleagues have completed training on ethical compliance. We are working to fully
integrate newly acquired operations into our established health and safety management
systems, and we have already trained the approximately 2,100 employees joining us from
Scholle IPN on our Life Saving Rules that form the cornerstone of our health and safety
programme. We also invited colleagues joining us through the acquisitions to participate in
our latest Group-wide employee survey.
We have incorporated the new businesses into our greenhouse gas emissions accounting
and Net Zero pathway, and begun work to include them in our Group-wide ISO 14001
environmental management certification in 2023. The three new plants that use liquid
packaging board have also achieved FSC™ Chain of Custody certification this year.
Annual Report 2022 The Way Beyond Good
Approach and performance
92
Approach and
performance
93 Climate+
105 Forest+
109 Resource+
121 Food+
126 Sustainable innovation
135 Responsible culture
135 Our supply chain
141 Human rights
145 Our people
154 Health, safety and wellbeing
160 Communities
163 Governance and ethics
Annual Report 2022
The Way Beyond Good
Approach and performance
Climate+
93
Climate+
We are committed to keep reducing our carbon
footprint until we capture more carbon from the
atmosphere than we emit.
Limiting global warming to 1.5°C is critical to prevent catastrophic climate change. To do
this, the world needs to reach Net Zero – the point at which we achieve a balance between
emissions that may not be avoided and emissions removed from the atmosphere – by 2050.
Everyone has a part to play in this, including us.
Our aseptic cartons play a key role in minimising carbon emissions by keeping food safe and
fresh for long periods without the need for refrigeration in the supply chain. They have a 28–
70% lower carbon footprint than other packaging formats, such as plastic and glass bottles
or aluminium cans – and solutions in our innovative SIGNATURE portfolio offer even further
reductions of up to 58%. They are made mainly from renewable materials and we source
the fibre used to make their main raw material, liquid packaging board, from sustainably
managed forests that act as important carbon sinks. The electricity used to produce our
aseptic carton packs is 100% renewable and we offset all emissions from non-renewable
energy through Gold Standard CO₂ offset.
Tackling climate change helps us mitigate risks (physical and transitional), meet growing
expectations from stakeholders on climate action and harness opportunities for our
business.
We are well positioned to grow our market share in a low carbon economy as our solutions
provide a strong differentiator for customers seeking to meet growing consumer demand
for low carbon products and packaging. The addition of spouted pouches and bag-in-box
(see > pages 11-12 and > page 22), as well as chilled cartons, to our portfolio through acquisitions
in 2022 extends our range of low carbon solutions across further market segments.
Our commitment
We are committed to reducing our greenhouse gas emissions to the levels demanded by
science to keep global warming below 1.5°C. Our goal is to achieve Net Zero greenhouse gas
emissions by 2050.
Building on our current 1.5°C science-based target that was approved by the Science Based
Targets initiative in 2019, we are now going further with even more stretching 2030 emissions
reduction targets for our operations and our value chain (see targets table on > page 97).
At the same time, we are committed to pioneering even lower carbon packs to bring our
customers the lowest carbon packaging solutions.
We have developed a series of workstreams to support progress on our path to Net
Zero – including a strong alignment with other focus areas of Way Beyond Good, such as
sustainable innovation and supply chain, that support our Climate+ targets. Together, these
workstreams will help us meet our science-based targets and expand our positive impact
by delivering greenhouse gas emissions reductions across the value chain and beyond.
Areas of focus include:
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
94
Our operations
• Seeking further energy savings through efficiencies and technology changes where
feasible
• Directly investing in more renewable energy capacity through on-site solar and power
purchase agreements1
• Seeking viable alternatives to natural gas, such as biogas or green hydrogen, to reduce
emissions from heating (which are currently offset through Gold Standard CO₂ offset
certificates)
• Replacing solvent-based printing with water-based inks.
Our value chain
• Encouraging suppliers to set their own science-based targets and take action to cut their
greenhouse gas emissions
• Reducing our use of carbon-intensive raw materials, such as fossil-based polymers and
aluminium foil
• Supporting carbon storage by sourcing from sustainably managed forests
• Working with suppliers and logistic providers to reduce emissions from inbound and
outbound logistics
• Helping customers cut emissions from their factories by reducing energy requirements
for our next-generation filling machines and offering upgrade kits to cut energy use in
existing filling machines
Increasing collection and recycling rates for used beverage cartons to avoid emissions
from landfill
•
• Seeking lasting uses for the recycled material that store embodied carbon over the long
term.
Beyond our value chain
• Continuing to offer the lowest carbon alternative to other types of packaging and
increase uptake of our lowest carbon solutions, supported by critically reviewed life-
cycle assessments based on the ISO 14040 and 14044 international standards
• Mitigating food loss and waste (and associated greenhouse gas emissions) through our
long-life packaging solutions and technical innovations
• Driving carbon reductions in the supply chain for our industry and beyond as an early
adopter of transformative initiatives, such as certification to the Aluminium Stewardship
Initiative (ASI) which includes strict requirements for carbon reductions in the production
of aluminium2
• Enabling carbon capture by accelerating efforts to restore or create additional hectares
of thriving forests beyond those we need to provide raw materials for our cartons
• Using recycled materials from used beverage cartons to create a low carbon alternative
to carbon-intensive materials, such as materials for construction.
1
2
We currently purchase renewable electricity through guarantees of origin and international renewable energy certificates, as
well as directly through on- or off-site power purchase agreements, to maintain 100% renewable electricity for production of
our aseptic cartons.
ASI-certified smelters must achieve a level of Scope 1 and 2 greenhouse gas emissions below 8 tonnes of CO₂ equivalent
per tonne of aluminium produced by 2030 (or immediately for smelters starting production after 2020). This is a significant
reduction from the current global average of 12 tonnes of CO₂ equivalent per tonne of aluminium ingot produced.
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
95
We have extended our greenhouse gas accounting and ambitions to include our new bag-
in-box, spouted pouch and chilled carton businesses, which joined SIG Group through
acquisitions this year. See > pages 380-386 for more on our greenhouse gas emissions
basis for reporting. We will use the data we gathered to integrate these businesses into our
workstreams to reduce greenhouse gas emissions across all our operations and along our
broadened value chain.
Our path to Net Zero
Tonnes of CO2
equivalent
1.66M
0.13M
0
2016
2021
2030
2050
Operational emissions (Scope 1 + 2 GHG emissions)
Value chain emissions (Scope 3 GHG emissions)
Carbon removed
Carbon removed
exceeds carbon emitted
Reducing the carbon footprint of our packaging at every stage of the life-cycle
(% life-cycle carbon footprint of an aseptic beverage carton1)
60% 8% 16% 6% 10%
Design
Minimising the life-cycle
impacts of our packaging
solutions starts with design.
Environmental factors are
core value drivers in our
product development. All
our new packaging designs
must demonstrate optimised
resource use compared
with previous models. And
we are cutting carbon
further through sustainable
innovation.
Sourcing
Our packs are made
mainly from renewable
liquid packaging board
from certified sources that
support sustainable forestry.
We partner with suppliers
on innovative solutions for
renewable and recycled
polymers, and we aim to
source all our main materials
from certified responsible
sources, including aluminium
foil certified to the ASI
standard that requires
smelters to limit their carbon
emissions. See > page 105
and > page 135.
Manufacturing
We make our sleeves
and closures using 100%
renewable electricity,
and our environmental
management systems,
certified to ISO 14001 for
our aseptic carton business,
support continuous
improvement in energy
use and emissions at our
plants. See > page 94 and
> page 101.
Transport
We reduce transport
emissions by delivering our
carton sleeves in flat-
packed form and filling
trucks fuller for fewer
journeys and less fuel use.
Our lightweight packs
also help customers cut
emissions from distributing
their products and avoid
the need for refrigeration.
See > page 104.
Filling
We improve the efficiency
of our filling machines with
every new generation, and
our technical service teams
help customers minimise the
energy needed to operate
our existing machines.
See > page 104.
Recycling
We make sure all our packs
are designed to be fully
recyclable, and we partner
with stakeholders to raise
consumer awareness
and support efforts
to improve local
collection and recycling.
See > page 109.
1
Indicative figures referring to the climate impact of an average 1 litre SIG pack in EU28 based on our LCA tool.
NET ZERO-97% per litre packed (vs 2020)Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
96
Climate-related risks and opportunities for our business
Our risk management approach builds on
best available practice. Climate-related risks
and opportunities are identified following the
recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD). These
inform several risk categories in the portfolio of
risks in our annual corporate risk assessment,
which identifies our main business risks based
on financial and reputational implications.
Climate-related risks to our business include
transitional risks – such as regulations (existing
and emerging), availability of technology,
reputation and changes in market demand –
which we assess regularly. They also include
physical risks, such as more frequent extreme
weather that could affect our production plants
and supply chain resilience.
We disclose further information on climate risks
and opportunities for our business – including
potential financial impact – through our CDP
Climate and DJSI responses. This year, we
have also aligned our public reporting with the
elements of the TCFD framework, including
scenario analysis, to address climate-related
risks and opportunities and related impacts
(see > pages 366-369).
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
97
Our targets
2025 target
Net Zero value chain greenhouse gas emissions by 20501
Reduce Scope 1 and 2 greenhouse gas emissions by 50% by 2025
and by 60% by 2030 (from 2016)
Reduce Scope 1 and 2 greenhouse gas emissions by 42% by 2030 –
and by 90% by 2050 (from 2020)1
Reduce Scope 1, 2 and 3² greenhouse gas emissions by 25%
per litre of food packed by 2030 (from 2016)
Reduce Scope 1, 2 and 3 greenhouse gas emissions by 52%
per litre packed by 2030 (from 2020)1
Reduce Scope 3 greenhouse gas emissions by 97%
per litre packed by 2050 (from 2020)1
Maintain 100% renewable energy and Gold Standard CO₂ offset
for all non-renewable energy (at production plants)
Expand use of on-site solar power to meet at least 10% of our
global electricity use as part of overall renewable power purchase
agreements (PPAs) to meet 25% of our global electricity use
Transition to 100% bioethanol or other bio-materials for printing
(also a target for Supply chain, see > pages 135-140)
Progress tracker
New target
On track
New target
On track
New target
New target
On track
On track
On track
Reduce CO₂ emissions from inbound and
outbound logistics by 25% (from 2016)
More work to do
1
Our new targets were developed in line with the latest guidance of the Science Based Targets initiative (SBTi) and in support of
its Business Ambition for 1.5°C and the United Nations-led campaign Race to Zero. Now also included are our new bag-in-box,
spouted pouch and chilled carton businesses, which joined SIG Group through the acquisitions of Scholle IPN and Evergreen Asia
in 2022.
2
This value chain target covers our most significant Scope 3 emissions – from our supply chain, use of our filling machines and
recycling or disposal of packs.
Our progress
We have formally committed to achieving Net Zero greenhouse gas emissions by 2050 and
set stretching targets to help us get there. We maintained carbon neutral production for
our aseptic carton packs with 100% renewable electricity and Gold Standard CO₂ offset for
all non-renewable energy. We also invested in more on-site solar installations and power
purchase agreements that support further investment in renewable energy as part of
the global energy mix. Sales of our lowest carbon packaging materials – our SIGNATURE
portfolio – grew by a further 13% this year and we launched the world’s first full barrier
solution for aseptic carton packs for use with products such as juices, as well as liquid dairy.
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
98
Extending SIG’s industry lead on renewable energy with physical PPAs
We have used 100% renewable electricity to
make our aseptic carton packs since 2017.
Initially, we sourced renewable power mainly
through Guarantees of Origin certificates. Now
we are going further by sourcing more directly
through power purchase agreements (PPAs)
that support further investment in renewable
energy as part of the global energy mix.
We have now secured physical PPAs to power
100% of our carton packaging production in
Germany from January 2023. These include
a combination of on-site solar installations,
renewable electricity from on-shore wind
turbines in Germany on a real-time supply basis
and a flexible top-up of hydropower.
And we’re not stopping there. Two vast solar
arrays at our plants in Linnich and Wittenberg,
currently in construction, will enable us to
power more of our production with renewable
power generated at our own sites. Together
with planned installations in Mexico and Saudi
Arabia, these will triple our total on-site energy
generation worldwide.
Performance in 2022
Integrating new businesses
• We have integrated our new bag-in-box, spouted pouch and chilled carton businesses,
which joined SIG Group through the acquisitions of Scholle IPN and Evergreen Asia in
2022, into our greenhouse gas inventory (see > pages 380-386) and relevant activities
related to our Net Zero pathway. These new acquisitions are also included in the scope of
our new targets on Scope 1, 2 and 3 greenhouse gas emissions and related reporting of
data for SIG Group from 2020 to 2022.
Value chain emissions
• Since 2016, we have reduced Scope 1 and 2 emissions and our most significant Scope 3
emissions3 from our aseptic carton business by 20% from the 2016 baseline, putting us on
track to meet our science-based target to cut these relative emissions by 25% by 2030.
• We have set a new and expanded target to reduce Scope 1, 2 and 3 greenhouse gas
emissions – including all Scope 3 categories – by 52% per litre packed by 2030 from a
2020 baseline for SIG Group (including our new bag-in-box, spouted pouch and chilled
carton businesses). Once approved by the SBTi, this target will replace our current value
chain target. SIG Group’s Scope 1, 2 and 3 emissions per litre packed have decreased
slightly from 2020 to 2022, and we aim to drive progress towards this new target through
our Net Zero workstreams.
3
Includes Scope 3 emissions from our supply chain, use of our filling machines and recycling or disposal of our cartons.
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
99
• Cutting our Scope 3 emissions is central to our path to Net Zero and we have set a target
to achieve a 97% reduction per litre packed by 2050 (from a 2020 baseline) for SIG Group.
SIG Group’s total Scope 3 emissions remained at a steady level from 2020 to 2022, and
we aim to drive progress towards this new target through our Net Zero workstreams.
Value chain carbon footprint for our aseptic carton business1
(thousand tonnes of CO₂ equivalent)
Scope 1
Scope 2
(market based)2
Scope 3
Total
2016
2017
2018
2019
2020
29.1
84.0
38.5
28.6
34.4
32.5
34.5
27.9
31.1
22.9
2021
29.8
0
2022
25.1
0
1,541.9
1,461.1
1,530.6
1,575.4
1,534.1
1,572.4
1,602.1
1,655.0
1,528.2
1,597.5
1,637.8
1,588.1
1,602.1
1,627.2
1
2
Data on greenhouse gas emissions for previous years have been restated to reflect revised scope of greenhouse gas targets and
baselines as a result of changes to the business, and in line with Greenhouse Gas Protocol requirements.
Location-based emissions (based on the electricity grid average amount) totalled 103.1 thousand tonnes of CO₂ equivalent in 2022
for our aseptic carton business.
Value chain emissions rate
for our aseptic carton business1
(grams CO₂ equivalent/
litre of food packed)
2022
2021
2020
2019
2018
2017
2016
79
79
81
90
93
91
99
1
Includes Scope 1 and 2 greenhouse gas emissions, and most
material Scope 3 emissions (from our supply chain, use of our
filling machines and recycling or disposal of our cartons).
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
100
Value chain carbon footprint for SIG Group1
(thousand tonnes of CO₂ equivalent)
Scope 1
Scope 2 (market based)²
Scope 3
Total
2020
2021
2022
32.4
64.5
31.3
41.0
26.6
48.8
1,863.7
1,901.9
1,927.5
1,965.6
1,979.2
2,022.9
1
2
Includes our new bag-in-box, spouted pouch and chilled carton businesses, which joined SIG Group through the acquisitions
of Scholle IPN and Evergreen Asia in 2022.
Location-based emissions (based on the electricity grid average amount) totalled 151.7 thousand tonnes of CO₂ equivalent in 2022
for SIG Group.
Value chain emissions rate for SIG Group1
(grams CO₂ equivalent/
litre of food packed)
Scope 3 emissions by category in 2022
for SIG Group1
2022
2021
2020
70
70
73
1.2%
0.4%
3.6%
6.1%
9.9%
1
Includes our new bag-in-box, spouted pouch and chilled
carton businesses, which joined SIG Group through the
acquisitions of Scholle IPN and Evergreen Asia in 2022.
14.6%
64.1%
Purchased goods and services
End-of-life treatment of products
Use of products
Upstream transportation
Downstream transportation
Fuel and energy related activities
Other (waste and business travel)
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
101
Raw materials
• We continued to work with suppliers to cut emissions from the production of the main raw
materials for our aseptic cartons. We engaged with aluminium suppliers to encourage
more of them to achieve ASI Chain of Custody certification, which includes strict
requirements on carbon reductions in the smelting process, and secured further supplies
of ASI-certified aluminium to enable us to procure 100% of the aluminium foil for our
aseptic carton packs with ASI certification from January 2023 (see > page 137). We sourced
a considerable amount of low-density polyethylene from INEOS Olefins and Polymers
Europe, made with certified renewable power, which reduces the carbon footprint by
21%. And we held top management-level discussions on emissions reductions plans with
Stora Enso, one of our main liquid packaging board suppliers.
• 71% (by volume) of the A-materials4 for our aseptic cartons came from renewable
sources in 2021 – mostly liquid packaging board as well as the polymers linked to 100%
renewable materials5 for the growing number of packs sold with our SIGNATURE 100 and
SIGNATURE FULL BARRIER solutions.
• Seven of our eight aseptic carton production plants have already moved from fossil-based
solvents to plant-based bioethanol for our printing processes and we are continuing to
explore how to extend the switch to renewable alternatives worldwide. The plant-based
ethanol we use is made from agricultural residues, not food crops.
Operations
• We have cut Scope 1 and 2 emissions from our aseptic carton business by 78% from the
2016 baseline, putting us on track to meet our current science-based target to reduce
these emissions by 60% for 2030. Switching to renewable electricity to power 100% of
our production in 2017 made the biggest contribution to this progress.
• We are now going further by targeting a reduction of 42% by 2030 – and 90% by 2050 – for
SIG Group (including our new bag-in-box, spouted pouch and chilled carton businesses)
from a baseline of 2020, when we had already moved to 100% renewable electricity at all
the plants we owned then. Once approved by the SBTi, this target will replace our current
science-based target. We cut our total Scope 1 and 2 emissions by 22% from the 2020
baseline for the new target.6
• We maintained carbon neutral production for our aseptic carton packs by using 100%
renewable electricity for production and offsetting non-renewable energy through Gold
Standard CO₂ offset. Since we first achieved this milestone in 2018, this has avoided over
246,000 tonnes of CO₂ equivalent emissions.
• Our existing 11.3 MWp of on-site solar power met 2.6% of global electricity use for our
aseptic carton business in 2022. More is in development, including two huge roof and
ground-mounted arrays at our sites in Wittenberg and Linnich (both in Germany) as well
as installations in Mexico and Saudi Arabia. Together, these will triple total on-site energy
generation for production of our aseptic cartons. Three of our newly acquired sites – in
Australia, China and the USA – have rooftop solar arrays and we have begun feasibility
studies to develop new on-site solar at others.
4
5
6
A-materials are those that go directly into our packs – paperboard, polymers, aluminium foil and ink.
Linked to wood residues from paper making via an independently certified mass balance system.
Includes our new bag-in-box, spouted pouch and chilled carton businesses, which joined SIG Group through the acquisitions of
Scholle IPN and Evergreen Asia in 2022.
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
102
• We continued to increase the positive impact we deliver through our sourcing of
renewable power by securing more physical power purchase agreements (PPAs) that
support further investment in renewable energy as part of the global energy mix. PPAs
met 12% of global electricity use for our aseptic carton business in 2022 and we have
secured PPAs that are expected to increase this to 29% in 2023, including enough to
power 100% of our aseptic carton production in Germany (see case study on > page 98).
• The greenhouse gas emissions intensity of our aseptic carton production decreased by a
further 19% to 12 tonnes CO₂ equivalent/million m² of sleeves produced in 2022.
• Energy conservation programmes contributed to a 7% reduction in the energy intensity
of our aseptic carton production to 183 MWh/million m² of sleeves produced in 2022.
Our three aseptic carton production plants in Europe continued to demonstrate annual
energy reductions to maintain their certification to ISO 50001, and our plant in Rayong
(Thailand) achieved this certification for the first time.
• We continued to explore ways to cut emissions from generation of thermal energy by
reducing or replacing use of fossil fuels. A new system to recover heat from production
processes at Saalfelden (Austria) is expected to reduce the site’s natural gas consumption
by 45%, avoid an estimated 790 tonnes of CO₂ emissions per year and deliver annual
savings of around €30,000 in energy costs. We are also exploring the feasibility of green
hydrogen and carbon capture technologies in the longer term.
• We completed construction of our new plant in Querétaro (Mexico), which has been
designed in line with criteria set by the LEED sustainable buildings standard (targeting
Gold level) and will feature solar panels on its rooftop.
• We maintained our global ISO 14001 certification for our aseptic carton business –
and began work to extend it to newly acquired sites in 2023 – for our environmental
management systems that include management of energy use and greenhouse gas
emissions. We also designed and launched new interactive online training on ISO 14001
to help employees understand how our environmental management systems can help
us cut environmental impacts and how they can do their part to help. Initially rolled out
to colleagues in our new bag-in-box and spouted pouch business, we plan to roll out
this training across SIG Group in the coming year through our established learning and
development channels.
Scope 1 and 2 greenhouse gas emissions intensity from aseptic carton production1
(tonnes CO₂ equivalent/million m² of sleeves produced)
68
42
40
35
17
15
12
2016
2017
2018
2019
2020
2021
2022
1
Energy use, energy intensity and emissions intensity are reported per million square metres of sleeves produced and exclude energy
use at our closure production plant in Switzerland.
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
103
Energy intensity of aseptic carton production1 (MWh/million m² of sleeves produced)
223
216
210
194
201
197
183
2016
2017
2018
2019
2020
2021
2022
1
Energy use, energy intensity and emissions intensity are reported per million square metres of sleeves produced and exclude energy
use at our closure production plant in Switzerland.
Energy use for aseptic carton production1 (GWh, by type)
Natural gas
Liquified natural gas
Diesel
Electricity
(non-renewable)
Electricity (renewable)
Total
2016
96
12
0
157
71
335
2017
123
12
0
40
189
363
2018
132
10
0
45
198
386
2019
134
8
0
41
201
385
2020
133
6
1
34
209
383
2021
133
2022
112
7
1
0
261
402
6
1
0
269
388
1
Energy use, energy intensity and emissions intensity are reported per million square metres of sleeves produced and exclude energy
use at our closure production plant in Switzerland.
Packs
• Sales of our lowest carbon packaging materials – combibloc ECOPLUS, SIGNATURE 100
and SIGNATURE FULL BARRIER – increased by 13% this year, with 611.6 million litres of food
packed in SIG aseptic cartons with these three SIGNATURE portfolio packaging materials in
2022. We have now sold enough packs with SIGNATURE portfolio solutions to fill more than
2.7 billion litres of food. Together, these products have saved an estimated 56,000 tonnes
of CO₂ equivalent emissions compared with standard SIG aseptic carton packs. As sales of
these sustainable innovations grow, so will the associated carbon reductions.
• We launched SIGNATURE EVO, the world’s first full barrier solution for aseptic carton
packs with no aluminium layer that can be used with oxygen-sensitive products, such as
juices, as well as liquid dairy. This aluminium-free7 solution provides comparable barrier
properties to our standard aseptic carton solutions that include a layer of aluminium foil.
SIGNATURE EVO was launched in early 2022 in our combiblocMini portion-sized format
and will be extended to other formats. We are currently working on a life-cycle assessment
to quantify the carbon footprint reduction that can be achieved using SIGNATURE EVO
compared with a standard SIG aseptic carton pack, with results expected in 2023.
7 With no aluminium layer.
Annual Report 2022 The Way Beyond Good
Approach and performance
Climate+
104
• An independent life-cycle assessment with Riedel found that our new combismile pack
with SIGNATURE FULL BARRIER offers a carbon footprint reduction of 75% or more
compared with the PET bottles that Riedel was using previously for its on-the-go juices
(see > page 21).
• We remain the only carton producer to offer packs with ASI-certified aluminium and,
from January 2023, we are sourcing 100% ASI-certified aluminium foil. We sold over
8.6 billion SIG packs in 2022 with the ASI code, showing that ASI-certified aluminium foil
was sourced for their production. Of these, nearly 1.4 billion feature the ASI label – almost
three times the number in 2021 as more customers opt to include the ASI label on their
packs to demonstrate and raise awareness of responsible aluminium sourcing.
• We commissioned the Institute for Energy and Environmental Research (IFEU) to
conduct independent ISO-conformant life-cycle assessments for our newly acquired
bag-in-box and spouted pouch solutions. Preliminary results, to be confirmed through
an independent critical review process, show significant carbon savings compared with
alternative types of packaging: bag-in-box solutions for wine offer an 80% lower carbon
footprint compared with glass bottles; and mono-material spouted pouches for baby
food offer an 11% reduction in carbon footprint compared with plastic tubs and a 59%
reduction compared with glass jars.
See > pages 126-134 for more on our SIGNATURE portfolio, our latest sustainable innovation
developments and uptake of the lowest carbon solutions for our packs.
Logistics
• We continued efforts to cut emissions from logistics by reducing the distances our raw
materials and finished packaging need to travel, working to qualify more suppliers in the
regions where we operate and increasing local aseptic carton production capacity to
serve the Americas with our new plant in Mexico.
• Emissions from outbound logistics decreased by 21% in 2022 to 51,382 tonnes of
CO₂ equivalent. This reduction was supported by moving production for some of our
customers in Asia that previously received cartons from our former plant in Australia, to
instead deliver from our plants in China and Thailand. We also maintained a high rate of
full truck loads (95%) for delivery to our aseptic carton customers.
• Overall, upstream logistics emissions (inbound and outbound transportation) for our
aseptic carton business have increased by 7% from the 2016 target baseline.
Filling machines
• Our next-generation filling machine for SIG aseptic cartons, SIG NEO, launched at the
end of 2021, is designed to cut energy use and offer a 25% lower carbon footprint for
the filling and packaging process per pack compared with our third-generation filling
machines. Field testing planned for 2022 has been delayed and we now expect to report
on carbon reductions achieved by customers in practice in 2024.
Recycling
See > pages 109-120 for information on how we are supporting efforts to increase recycling
of used beverage cartons.
Removing carbon from the atmosphere
See > pages 105-108 for information on how we are taking carbon out of the atmosphere by
supporting thriving forests.
Annual Report 2022 The Way Beyond Good
Approach and performance
Forest+
105
Forest+
We aim to create more thriving forests
than it takes to make our products.
The world’s forests play a critical role in regulating the climate as well as supporting
biodiversity, ecosystem functions and communities. They can provide a wealth of resources
and materials that can be continually renewed – including the wood fibres used to produce
the liquid packaging board that makes up an average of 75% (and up to 82%) of SIG’s carton
packs, as well as the polymers used to link some of our SIGNATURE solutions to up to 100%
renewable materials.¹
Forestry operations must be managed sustainably to protect biodiversity, maintain eco-
system services and carbon storage, avoid forest degradation or deforestation, respect
the rights of workers, local communities and indigenous peoples, and ensure a sustainable
supply of raw materials now and in the future.
Forest Stewardship Council™ (FSC™) certification assures us and our customers that all the
liquid packaging board we use in our carton packs comes from sustainably managed forests
and other controlled sources. The FSC™ label, which can be included on all SIG cartons,
enables customers to confidently communicate to consumers that the board used in their
packaging contains material from forests that are continually regrown.
Our ambitious commitments to protect and regenerate our planet’s forests contribute to
wider global goals – reinforced at the COP15 biodiversity conference in 2022 – to conserve,
protect, restore and sustainably manage biodiversity and ecosystems for the next decade.
Our commitment
We are committed to protecting 100% of the sustainable forests we source from by
purchasing all our liquid packaging board with FSC™ certification. We maintain our Chain of
Custody certification at all our carton production sites and sales offices to enable the board
used in our packs to be traced through the supply chain to sustainably managed forests.
On top of this, for every hectare that we sourced from in 2020, we will create, restore,
protect or improve management of an additional hectare of healthy forest by 2030. That’s
an additional 650,000 hectares of thriving forest by 2030 – the equivalent forest area
needed to continually generate the wood needed to produce all the packs we made in 2020
all over again.
This commitment is based on the area of FSC™-certified forest (in hectares²) that would
be needed to regrow the estimated 2 million m³ of wood that it took to produce the
400,000 tonnes³ of liquid packaging board we used to make our packs in the year that we
set the commitment (2020). WWF has confirmed that this is a rigorous commitment and
rationale.
1
2
3
Polymers are linked to wood residues from paper making via an independently certified mass balance system.
Based on 1 hectare of Swedish FSC™-certified forest (where SIG mainly sources from) producing an estimated 3 m³ of wood.
Based on an estimated 5 m³ of wood to make 1 tonne of liquid packaging board.
Annual Report 2022 The Way Beyond Good
Approach and performance
Forest+
106
We will achieve the 650,000 hectare commitment by partnering with NGOs, such as WWF
and Brainforest, to identify and deliver forestry projects, and by seeking opportunities to
undertake joint projects with our suppliers and customers. Support from expert agricultural
scientists, botanists and foresters will help to ensure this work is grounded in science.
In addition, we will continue to empower and encourage our customers to put the FSC™
label on any SIG carton pack to champion packaging that helps create more thriving forests
and raise consumer awareness of sustainable forestry.
We also aim to reduce pressure on forest resources by designing our packs to minimise use
of materials, and by fostering recycling of beverage cartons after use to reclaim the fibres
so they can be used again to create new paper and board products (see > pages 109-120).
In 2022, we began using the Taskforce on Nature-related Financial Disclosures (TNFD)
framework to inform our assessment of risks and opportunities for our business. We also
updated our policies on Responsible Sourcing, Environment, Health and Safety, and Product
Stewardship to better reflect our commitment to uphold biodiversity.
Our targets
2025 target
Partner to create, restore, protect or improve management of at least 650,000
additional hectares of forest beyond what we need to make our products by 20301
Establish a partnership with Brainforest, an NGO, to contribute
to restoring or creating resilient and sustainable forests by 2025
Partner with an NGO to develop a methodology to measure
the impact of FSC™ certification by 2025
Work with customers to include the FSC™ label on 100% of the packs we sell,
closing the remaining 3% gap by 2025
Maintain 100% FSC™-certified supply of liquid packaging board for our packs
(also a target for Supply chain, see > pages 135-140)
Progress tracker
On track
Completed
More work to do
On track
On track
1 Target wording amended for clarity.
Our progress
We continued to purchase 100% of the liquid packaging board for our aseptic cartons
with FSC™ certification – an industry first – and sold more than 42 billion FSC™-labelled
packs in 2022. We launched a major new partnership with WWF Switzerland to directly
invest in projects designed to protect, restore or improve thousands of hectares of forests,
starting with a project in Mexico to secure critical habitat for jaguars. We also joined WWF’s
Forests Forward programme and made a series of public commitments to drive progress
towards our Forest+ ambitions and directly contribute to global goals on restoration of
forests and biodiversity.
Annual Report 2022 The Way Beyond Good
Approach and performance
Forest+
107
Championing sustainable forestry at the FSC™ General Assembly
SIG was the top ‘Green Sponsor’ of the FSC™
General Assembly in 2022, reinforcing our
longstanding partnership with the FSC™ and
our commitment to its rigorous certification
standard.
During the General Assembly, we announced our
partnership with WWF Switzerland to directly
invest in projects that will protect, restore
or improve thousands of hectares of forest
(see > page 27).
Our sponsorship helped ensure diverse social,
environmental and economic interests were
represented in critical discussions on forest
management and sustainability by enabling
FSC™ members who would otherwise lack
sufficient resources to attend.
Performance in 2022
Sourcing FSC™-certified board
• We continued to purchase 100% of the liquid packaging board for our aseptic cartons
with FSC™ certification – first achieved in January 2021. SIG is the only beverage carton
producer to have achieved this.
• More than 42 billion (99%) of the aseptic carton packs we sold in 2022 carried the FSC™
label, raising awareness of certified sustainable forest management by bringing the
FSC™ label to consumers around the world. To close the remaining gap to our target of
100%, we are continuing to promote the benefits of FSC™ labelling and encouraging our
customers to include the FSC™ label in décor designs for new products. This year, we
conducted an analysis of which existing customer product décors do not yet include the
FSC™ label and we plan to work with the relevant customers to integrate the label in their
next planned design change to avoid unnecessary waste of printing cylinders.
• We maintained FSC™ certification across SIG aseptic carton production sites, and added
our newly acquired chilled carton production sites in China, South Korea and Taiwan to
the SIG FSC™ multi-site certificate.
• Building on our longstanding work with the FSC™ to develop the certification scheme, we
sponsored its 2022 General Assembly, an event that sets the direction of the organisation
for the coming years (see case study above).
• We are working with the Institute for Energy and Environmental Research (IFEU) on a
project to measure the impact of sourcing FSC™-certified raw materials using life-
cycle assessment techniques focusing on carbon and biodiversity. This year, we worked
together to refine our approach and agreed a plan to help develop a methodology.
Annual Report 2022 The Way Beyond Good
Approach and performance
Forest+
108
Partnering to expand sustainable forestry
• We launched a five-year partnership with WWF Switzerland to directly invest in projects
designed to protect, restore or improve thousands of hectares of forests. The first joint
project on the ground aims to improve forest management of 100,000 hectares and
restore a further 750 hectares of forest to secure a landscape in Mexico that serves as
a critical jaguar habitat. Read more about our partnership with WWF on > pages 26-29.
• Through our partnership with WWF Switzerland, we joined WWF’s Forests Forward
programme, which brings together businesses, local communities and other key forest
stakeholders to transform the way forests are valued, managed, protected and restored
for the benefit of nature, people and climate. As a member of the programme, we have
made a series of public commitments (see box below) that are designed to contribute
to specific UN Sustainable Development Goals (SDGs) as well as supporting our own
Forest+ ambitions.
• We began engaging with customers and suppliers to explore the potential to amplify our
positive impact by working together on joint forest projects, including inviting them to
join our partnership with WWF Switzerland. We also partnered with Brainforest – a Swiss
for-impact venture studio for forests and climate, co-founded by WWF Switzerland and
made possible by the Migros Pioneer Fund – and its venture Xilva AG to help us identify
projects that would be suitable for SIG to undertake jointly with customers or suppliers.
We are looking for science-based projects that are designed to create resilient forest
ecosystems to improve biodiversity and store carbon to unlock the full climate potential
of forests.
• Following our Way Beyond Good Champions’ Forest+ campaign in 2021, some of our
local teams continued to support efforts on the ground to restore or create forests in
their communities this year. In Switzerland, a group of SIG volunteers planted around
230 saplings to restore parts of the forest near our Neuhausen site that had been
destroyed by bark beetle. In Romania, almost 100 colleagues from our Cluj site planted an
“SIG forest” of around 1,200 trees on a hill near the city in a teambuilding event organised
in partnership with a local NGO. In Germany, new trainees joining our team at Wittenberg
were introduced to The Way Beyond Good and our focus on Forest+ through a trip to
the Mittlere Elbe biosphere reserve, where they learned about nature conservation and
helped out with tree protection measures.
Our Forests Forward commitments
Commitment
Maintain achievement of SIG’s 100% FSC™ sourcing goal
(first reached in 2021)
By end of 2024, key liquid packaging board suppliers move forest
sourcing from FSC™-controlled wood to FSC™ forest management
certification
By end of 2024, at least two of SIG’s major suppliers engage in
afforestation or restoration of additional forest area beyond direct
purchase by co-financing relevant forest projects
SIG shows the way in this partnership for key customers, investors and
peers to contribute and join efforts to facilitate market shift
SIG and WWF co-develop SIG’s comprehensive approach to support
thriving forests, building upon SIG’s 100% FSC™ sourcing achievements
By 2025, invest in forest restoration in at least three ecologically
important landscapes
1
See > pages 376-379 for more detail on UN Sustainable Development Goals supported.
UN Sustainable Development
Goals supported1
12.6 & 12.7
15.7
15.2
Annual Report 2022
The Way Beyond Good
Approach and performance
Resource+
109
Resource+
We aim to lead the way towards a
fully circular packaging system.
Our planet’s resources are finite and its capacity to absorb waste is limited. As a society,
we need to move towards a circular economy that stops producing waste and strengthens
natural systems. We know SIG can play a big part in this.
SIG cartons contribute to the circular economy from the start of their life because they are
made mainly from renewable materials that are naturally regenerated. They are designed
to be fully recyclable after use, which helps to keep high-quality materials in circulation and
avoid uncontrolled waste entering the world’s oceans as litter that can harm wildlife.
Our packaging solutions, including sustainable innovations such as our paper straws and
tethered caps, help our customers comply with growing regulations and fulfil their ambitions
to reduce the environmental impact of packaging.
We work with customers and others in our industry to extend recycling infrastructure and
collection systems around the world as part of our shared responsibility to enhance the rate
of cartons that are recycled. Many of the programmes we support have a wider positive
impact by increasing collection and recycling of other types of packaging, and by adopting
ethical standards and innovative models that support underprivileged people.
Optimising our packs and cutting waste in our own operations helps us minimise material
use and enhance the efficiency of our production processes. Certified environmental
management systems help to preserve water resources in our operations and supply chain,
and our innovative filling technology helps customers to reduce water use at their factories.
Our commitment
Our goal is to design cartons that support increased circularity by stepping up our use
of renewable or recycled materials and fostering recycling to turn more used packs into
valuable resources that can be used again.
We are committed to the principles of the circular economy, set out by the Ellen MacArthur
Foundation, to design out waste, regenerate natural systems and keep products and
materials in circulation, underpinned by use of renewable energy (see > pages 93-104).
In Europe, we are also fully committed to the ten industry commitments set out
in the ambitious 2030 roadmap set by the Alliance for Beverage Cartons and the
Environment (ACE), of which SIG is a member (see box on the next page).
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
110
ACE 2030 roadmap: industry commitments in Europe
Through ACE, together with others in our
industry, by 2030 we are committed in Europe to:
• deliver the lowest carbon footprint packaging
• design for circularity
• achieve a 90% collection rate of beverage
• produce beverage cartons only from
cartons for recycling
renewable materials
• achieve at least a 70% recycling rate verified
• and/or produce beverage cartons from
by third parties
recycled materials
• use more fibre and less plastic
• decarbonise our value chain in line with
1.5°C target
• meet the highest sustainability sourcing
•
standards for all materials
increase carbon sequestration, enhance
biodiversity and increase forest growth.
Partnering to foster collection and recycling
We are committed to collaborating through industry associations (see box on the next page),
and with other stakeholders, to significantly increase recycling rates for used beverage
cartons globally.
The high-quality fibre that makes up the majority of our cartons can be separated and
recycled relatively easily for reuse at paper mills, so our main focus for investment to increase
recycling capacity is on more facilities to recycle the remaining polymer and aluminium –
either together as a robust PolyAl material for roof tiles or furniture, or separately to enable
wider applications for the recycled materials. Through EXTR:ACT, we keep apprised of new
recycling technologies and facilities being developed independently and through industry
associations. We also strive to increase demand for recycled materials from used beverage
cartons by showcasing potential uses.
Used beverage cartons must be collected before they can be recycled. To support this, we
advocate for enabling regulatory frameworks (including extended producer responsibility
legislation), raise consumer awareness to support collection of used beverage cartons for
recycling, and develop innovative models for collection that provide additional societal
benefits for underprivileged people.
Our tailored local Going Circular roadmaps are designed to catalyse collection and recycling,
and to promote the beverage carton as a sustainable packaging option, in 25 priority
countries that together account for around 90% of our global carton sales (by weight).
We are also embarking on plans to enhance collection and recycling systems for our newly
acquired bag-in-box and spouted pouch solutions. Some of the industry partnerships that
SIG supports in relation to beverage cartons, such as the Consumer Goods Forum, already
include collection and recycling of these types of packaging.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
111
Industry partnerships
We are advocating and driving initiatives to increase collection and recycling of used beverage
cartons through industry partnerships, including:
We are also part of national producer responsibility organisations (PROs), industry associations and
other interest groups that seek to promote recycling in countries such as Australia, India, Indonesia,
Malaysia, New Zealand, South Korea, Thailand, Vietnam and the USA.
Designing for circularity
We are committed not just to increasing collection and recycling rates for cartons as they
are designed today, but to designing our cartons to support increased circularity in the
future. Our standard procedures mandate that all new carton packs must be fully recyclable
by design.¹
Through our focus on sustainable innovation (see > pages 126-134), we have developed
circular solutions, such as paper straws for on-the-go cartons and tethered closures
that ensure the cap stays with the rest of the pack for recycling. We are also innovating
to increase use of renewable or post-consumer recycled materials across our packaging
portfolio – particularly to replace virgin fossil-based polymers.
Our industry-leading aluminium-free² solutions for aseptic cartons offer the potential to
simplify the recycling process for beverage cartons, with just two materials to separate
rather than three, and to enhance the quality of the recycled polymers recovered –
in addition to further reducing the carbon footprint of our cartons (see > pages 93-104).
The box that makes up the majority of the materials in all our bag-in-box solutions can
already be recycled through widely available paper recycling streams. We are working to
make more of the bags in these solutions, as well as our spouted pouches, fully recyclable
by design (see > pages 126-134).
1 Our evaluation of recyclability is based on the relevant EN643 standard.
2 With no aluminium layer.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
112
Optimising resource use in filling
SIG filling machines have an industry-leading waste rate that means less than 0.5% of our
packs are wasted during the filling process. We are committed to designing each next-
generation machine to help customers further optimise the amount of resources – including
water, energy and hydrogen peroxide for sterilisation – they need to fill our carton packs
at their factories compared with previous models (see > pages 126-134). We also work with
customers to ensure that our filling machines, and their parts, are recycled or disposed of
responsibly at end of life.
Minimising waste and water use in production
We are committed to monitoring and managing environmental impacts from our operations –
including minimising waste and use of resources such as water. Robust environmental
management systems, certified to ISO 14001 at all our sleeve and spout production plants
for our aseptic cartons, support continuous improvement across our operations.
Our main focus is on eliminating waste to landfill by reusing or recycling waste – or, where this
is not feasible, by choosing the next best option, such as energy recovery. We also implement
responsible disposal options for hazardous and electronic waste to avoid environmental
harm and ensure hazardous waste does not end up in landfill.
We use relatively little water in our operations, but we monitor and aim to minimise water
use where feasible. All our sites in water-stressed areas are required to have a water
management system.
Sourcing sustainable materials
We aim to source all our raw materials with certifications to rigorous external standards that
ensure the resources we purchase are produced responsibly (see > pages 135-140).
The liquid packaging board that makes up 75% of our cartons on average comes from
renewable wood fibre and is procured with FSC™ certification, which requires forest
operations to be sustainably managed so nature is protected and natural resources are
continually regenerated. FSC™ certification also requires forest operations to protect and
restore natural water sources and avoid or mitigate any negative impact on water quality or
quantity. We also cover relevant sustainability topics through our working groups with liquid
packaging board suppliers, including checking that they have water management systems
in place.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
113
Our targets
2025 target1
Launch a full barrier carton linked to 100% renewable materials
(see Sustainable innovation on > pages 126-134)
Further reduce the amount of non-fibre materials in our carton packs
to increase the share of renewable materials and to enable SIG cartons
to go into paper recycling streams where relevant by 2030
(see Sustainable innovation on > pages 126-134)
Progress tracker
On track
New target
Partner with stakeholders to implement dedicated and country-specific roadmaps
to support increased collection and recycling of beverage cartons
On track
25% reduction in grams of waste per m² of packaging material (from 2016)
More work to do
Zero landfill – all waste to be recycled or used as renewable biofuel
More work to do
Maintain certification to ISO 14001:2015 at all production plants
On track
1 A target, and accompanying KPI, for the newly identified material issue of water is in development.
Our progress
We made further strides on the road to circularity for our cartons this year with new industry
guidelines on design for recycling developed through ACE in Europe and expansion of
our innovative Recycle for Good social models for collection of used beverage cartons
in several countries around the world. A new recycling facility we funded with partners
opened in Australia to boost recycling capacity and create a new market for recycled
cartons by turning them into innovative construction materials. The latest launches from
our sustainable innovation pipeline bring further benefits for circularity by expanding our
range of aluminium-free³ solutions for our aseptic cartons, introducing a paper blister for
our paper straw solution and reducing resource use during filling – as well as introducing
recycled content and enhancing recyclability of our newly acquired bag-in-box and spouted
pouch solutions.
The Cidade+Recicleiros
programme in Brazil enables
cities, companies and
communities to establish
effective municipal systems
to collect and separate
consumer waste and ensure
decent working conditions
for waste pickers. SIG is
leading business support
for the project.
3 With no aluminium layer.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
114
Recycle for Good in Egypt
We extended our Recycle for Good programme
this year with two innovative recycling initiatives
in Egypt, where there is currently no segregation
of waste at household level. Both use technology
to offer full traceability to show the volumes
of materials recycled and offer wider societal
benefits, including verifying ethical working
conditions for waste collectors.
Our partnership to collect used beverage cartons
with Tagaddod – the first company in Egypt to
enable direct household and food service waste
collection through tech-based solutions – builds
on its existing app solution, logistics network and
operations to collect other recyclable waste.
People in Cairo can now use the app to arrange
for used cartons to be collected from their home
or workplace, and we can use it to trace the
cartons to a specific waste collection point and
recycler and check ethical working conditions
for waste collectors. Households and businesses
can earn points for each carton collected, which
can be exchanged for rewards such as food
products or a donation to local charities. We are
raising awareness of the programme through a
campaign targeting 3 million households.
In a second programme, with the international
organisation Plastic Bank, we are piloting the
use of blockchain technology to verify ethical
working conditions and enable full traceability
of the volume of used beverage cartons and
other waste removed from the environment.
By the end of 2022, around 100 tonnes of used
beverage cartons had been collected and
tracked in just three months. The pilot, in a
coastal area of Egypt on the Red Sea, aims to
empower waste pickers by ensuring they receive
appropriate personal protective equipment,
training and pay for their work. An app enables
them to log each piece of waste they collect and
receive their choice of payment in exchange –
either cash (via an online wallet), food products
or school fees. More than 60 workers have
participated so far.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
115
Boosting recycling capacity for beverage cartons in Australia
The initiative builds on advocacy efforts over
the last two years via the GRACE partnership,
which we have worked together to expand this
year with other applications for government
funding for additional recycling capacity. Further
funding has already been secured for the
construction of a second saveBOARD recycling
facility in Victoria. These concrete achievements
demonstrate the value of sector cooperation
to deliver system-level solutions.
In December 2022, the first batch of innovative
new construction materials rolled off the
production line at the saveBOARD recycling
facility in Sydney, Australia – made from
recycled SIG beverage cartons.
These high-performance recycled board
materials are designed for use in building
interiors and exteriors as a low carbon
alternative to products such as plasterboard
and particle board. They are suitable for use
in homes and commercial buildings. They also
offer benefits for indoor air quality, with zero
volatile organic compounds, because they are
bonded using heat and compression rather
than glues or chemicals.
Together with partners, SIG has provided funding
support for this innovative recycling facility,
which will process more than 4,000 tonnes of
material a year. It will help create a new market
for post-consumer recycled materials made
from beverage cartons and paper cups by
producing high-performance construction
materials. The facility has also been awarded
public grants through the Australian
Government’s Recycling Modernisation Fund
and the New South Wales Government’s
Waste Less, Recycle More initiative.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
116
Performance in 2022
Designing for circularity
See > pages 126-134 for information on how we are designing for circularity through our
focus on sustainable innovation.
Partnering to foster collection and recycling
• Through the platforms we are part of, we continued to work together with others in our
industry this year on practical guidelines to reinforce our collective commitment to
increase recycling rates:
• ACE: We were instrumental in the development of ACE’s Design for Recycling
Guidelines that provide producers of beverage cartons with technical guidance
to identify materials in the packaging that are compatible with existing recycling
processes and how the recyclability of beverage cartons can be optimised.
Development of these guidelines fulfils an important commitment of the ACE 2030
roadmap for the industry.
• 4evergreen: We supported the development of guidance published by 4evergreen
in 2022 on improved collection and sorting for recycling and circularity by design
for fibre-based packaging. We are now working to develop further guidance on
circularity and recycling processes, including recommendations specifically for
beverage cartons.
• Consumer Goods Forum: With the addition of bag-in-box and spouted pouch
solutions to our portfolio for the first time this year, we have now committed to
the Consumer Goods Forum’s Golden Design Rule to increase recycling value in
flexible consumer packaging. This follows our previous commitment in 2021 to the
two Golden Design Rules that are relevant to SIG’s cartons – to remove elements
from packaging that could lower recyclate value and reduce virgin plastic use in
business-to-business plastic packaging.
• We added five additional priority countries for our local Going Circular roadmaps in
2022 – four from our Middle East and Africa region (fully owned by SIG since 2021) plus
India. Going Circular roadmaps have been developed for each.
• We launched and expanded innovative new programmes this year that offer social
benefits as well as boosting collection of used beverage cartons:
•
• Egypt: Two new Recycle for Good partnerships using technology to collect and
trace recycled materials are enabling collection of used beverage cartons, while
improving working conditions for waste pickers (see case study on > page 114).
Indonesia: Building on our successful co-operation in Brazil, the SIG Way Beyond
Good Foundation is working with the NGO so+ma to develop a rewards-based
community recycling programme in Jakarta. In 2023, a Recycle for Good container
will be set up for people to return their used packaging in exchange for rewards.
• Brazil: Our pioneering programmes in Latin America expanded this year with
significant increases in the amount of waste collected, rewards for communities
and support for workers. Five collection points have now been established in Brazil
through our partnership with social enterprise so+ma and we plan to extend this to
Chile. More than 1,300 families are participating in the so+ma vantagens rewards
programme. Over the last four years, they have collected 306 tonnes of waste in
exchange for rewards such as training courses and essential food products, including
products provided by SIG customers. New so+ma activations in municipalities
where Recicleiros Cidades is in place will enable us to integrate these two flagship
programmes for the first time. The Recicleiros Cidades partnership to boost
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
117
municipal recycling programmes and ensure decent working conditions for waste
pickers – through seed investment from SIG and targeted support from more than
60 businesses that also helps them meet their regulatory requirements in relation
to recycling – is now operational in 14 municipalities. A further two municipalities
have joined the programme and we aim to reach 60 by 2027. The programme has
collected more than 6,300 tonnes of waste, reached 847,000 citizens and created
239 jobs for waste pickers over the last five years. SIG teams also offered their
expertise to help the waste pickers’ cooperative in Campo Largo enhance safety,
ergonomics and work protocols and make production processes more efficient. The
results will be shared with other cooperatives across Brazil through the Recicleiros
Waste Pickers’ Academy.
• Capacity to recycle beverage cartons and PolyAl continued to increase in 2022:
• Australia: The new saveBOARD recycling facility established with support from
SIG and our GRACE industry partnership went into production at the end of 2022,
making high-performance construction materials from used SIG beverage cartons
(see case study on > page 115). We also supported the successful government grant
application for a second saveBOARD facility in Victoria .
• Brazil: We began construction of a new recycling plant for beverage cartons that is
expected to begin operating in 2024 with an initial capacity to process 200 tonnes
of PolyAl per month. The plant will use innovative technology that makes it possible
to separate the polyethylene from the aluminium in PolyAl to create a wider market
and demand for these recycled materials, increasing their value by more than 50%.
Developed over five years with project partner ECS Consulting, the new technology
has already undergone a pilot project that proved the effectiveness of the chemical
recycling process.
• Germany: The Palurec facility, in which SIG is a major investor together with two
industry partners, has increased its capacity for recovering polymers and aluminium
from PolyAl and enhanced the quality of the recovered polymers to expand the
range of products they can be used for. Through FKN, the German packaging
association, we also welcomed the prototype flexible packaging developed and
presented by Saperatec as a potential new application for recycled PolyAl.
• Through EXTR:ACT, we are keeping apprised of new recycling technologies and facilities
being developed independently and through industry associations – including initiatives
in Czechia, Italy, the Netherlands and Poland. Together with Palurec in Germany, these
facilities can already process around 50,000 tonnes of PolyAl annually – enabling polymer
and aluminium to be recovered from approximately 30% of the total PolyAl produced
from recycled beverage cartons in Europe.
• Local programmes launched this year to raise awareness of the importance of recycling
among consumers and facilitate the return of used beverage cartons include:
• Austria: We partnered with industry peers to run a communications campaign to
emphasise to consumers, including schoolchildren, that used beverage cartons are
a valuable resource, and to encourage people to put them in the appropriate bin or
bag to be recycled.
• Brazil: We began working with Menos 1 Lixo, an online sustainability platform focused
on reducing waste that has over 600,000 Instagram followers, to raise awareness of
our recycling programmes.
• Dominican Republic: We collaborated with SIG customer Nestlé and major retailer
•
Grupo Ramos to establish 40 collection points for used beverage cartons.
Indonesia: We launched a programme with SIG customer Frisian Flag Indonesia
to install collection points in 13 stores in the Greater Jakarta area and enable
consumers to collect stamps for returning used beverage cartons that they can
redeem for rewards in store.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
118
• Mexico: We completed research in preparation for a pilot of an innovative system
that offers credits for collection, transportation and sorting of used beverage
cartons that supports integration of the hotel, restaurant and catering (HORECA)
sector as a major driver for achieving national recycling targets. We also promoted
collection of used beverage cartons at more than 100 schools and used the recycled
materials to support social organisations, including partnering with SIG customer
Alpura to collect enough used beverage cartons from schools to build a PolyAl roof
for an orphanage.
• Thailand: We extended our collaboration with other packaging manufacturers –
and began partnering with the largest chain of convenience stores in Thailand – to
raise awareness and provide guidance on how to sort used packaging for collection
and recycling through the Beverage Carton Recyclable Project (BECARE) in
20 provinces across the country. We also launched a new project to educate
children at 13 international schools on recycling.
• Vietnam: Through the national PRO, we are supporting a one-year pilot in Ho Chi
Minh City that aims to collect and deliver 800 tonnes of used beverage cartons
for recycling by March 2023. Working with aggregators and a recycler, the pilot
will test out a system to certify and audit the volume of cartons that are collected
and recycled to support compliance with regulations on extended producer
responsibility that will come into force in January 2024.
• Through industry organisations, we continued to advocate for enabling regulatory
frameworks to support collection and recycling of packaging. In Europe, ACE called for a
mandatory beverage carton collection target for EU Member States, and in the USA the
Carton Council supported new extended producer responsibility legislation that has been
rolled out in several states this year.
• Our Way Beyond Good Champions, together with local teams, ran a global campaign in
2022 to get employees and communities involved in activities to support our Resource+
action area. In Linnich (Germany), they joined a local clean-up activity in the city and
organised a donation of unwanted clothes for reuse to help Ukrainian refugees. In
Neuhausen (Switzerland), they cleared litter from the banks of the River Rhine and
partnered with WWF Switzerland to raise awareness about correct disposal of waste to
support recycling. In Cairo (Egypt), they organised a clean-up of part of the River Nile,
as well as sponsoring the removal of two tonnes of packaging waste from the river in
collaboration with a local NGO. And in Melbourne (Australia), they donated electronic
waste to a local charity that repairs and resells equipment to disadvantaged members of
the community or uses it to train job seekers.
Optimising resource use in filling
• We sold a further 21 water reduction kits, designed to cut water consumption during
production by up to 50%, to upgrade existing third-generation filling machines that are
already in use in customers’ factories. We have also extended our water reduction kit to
another SIG filling machine format and almost all new filling machines are now sold with
water reduction upgrade kits already installed.
• Our SIG NEO next-generation filling machine for family-size carton packs, launched in
late 2021, is designed to reduce overall use of utilities (hydrogen peroxide, compressed
air and water) by 30% on average. Field tests with customers planned for 2022 have been
delayed and we now expect to be able to confirm actual reductions in 2024.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
119
Minimising waste and water use in production
• We maintained our global ISO 14001 certification for our aseptic carton business –
and began work to extend it to newly acquired sites in 2023 – for our environmental
management systems, which help to drive continuous
in waste
management and water management. We also designed and launched new interactive
online training on ISO 14001 to help employees understand how our environmental
management systems can help us cut environmental impacts and how they can do their
bit to help. Initially rolled out to colleagues in our newly acquired bag-in-box and spouted
pouch business, we plan to roll out this training across SIG Group in the coming year
through our established learning and development channels.
improvements
• We generated a total of 64,724 tonnes of waste at our aseptic carton production sites in
2022, including 1,521 tonnes of hazardous waste that was disposed of by certified waste
management contractors. Our waste rate for production of aseptic cartons decreased
by 6% to 32 grams per m² of packaging material.
In 2022, 91.6% of waste from production of our aseptic carton packs was reused or
recycled, 1.5% was recovered for energy and only around 0.2% went to landfill. We have
achieved zero waste to landfill at six of our aseptic carton production plants in China,
Europe and Saudi Arabia.
•
• We continue to seek ways to minimise production waste through local initiatives. For
example, the team at Suzhou (China) introduced closer monitoring of the extrusion process
to avoid excess polymer being used in the lamination process. They also introduced a
new process to treat and recycle ethanol from printing processes, previously disposed of
as hazardous waste, for reuse in production processes, saving over 20 tonnes of ethanol
in 2022. In Rayong (Thailand), waste polyethylene was recycled into robust, hardwearing
pallets.
• Our operations do not require a lot of water, but we continued to ensure that water
management systems are in place at our sites in water-stressed areas. We used a total of
200.1 million litres of water in 2022, including 100.3 million litres in water-stressed areas.⁴
The SIG plants in water-stressed areas – Riyadh (Saudi Arabia) and Suzhou (China) –
together accounted for 33% of our production plants.
Production waste rate for aseptic carton packs1
(grams of waste per m² of sleeves produced)
35
35
37
37
35
35
33
33
32
32
34
34
32
32
2016
2017
2018
2019
2020
2021
2022
1 Production waste and waste rate are for sleeves production only, and exclude our closures plant in Switzerland.
2016
2017
2018
2019
2020
2021
2022
4 Based on an assessment using the World Resources Institute water risk atlas.
Annual Report 2022 The Way Beyond Good
Approach and performance
Resource+
120
Production waste for aseptic carton packs by type1 (thousand tonnes)
Raw and laminated
carton
Polyethylene
Hazardous waste
Aluminium (<1%)
2016
44.7
2017
47.2
2.3
2.7
-
1.7
2.7
-
Total
49.9
51.6
2018
46.5
1.6
0.2%
2.8
1.5%
-
2.5%
51.0
2019
48.3
2020
48.4
2021
58.3
2022
57.3
1.6
2.7
6.7%
-
1.6
2.9
-
3.5
3.7
-
3.3
3.8
0.3
52.7
53.1
65.5
64.7
1 Production waste and waste rate are for sleeves production only, and exclude our closures plant in Switzerland.
Production waste for aseptic carton packs by disposal method in 20221
6.7%
0.2%
1.5%
2.5%
89.1%
Recycled
Reused
Recovered for energy
Landfill
Other disposal options2
89.1%
1
2
Production waste and waste rate are for sleeves production only, and exclude our closures plant in Switzerland.
Recycled
Such as incineration without energy recovery.
Reused
Recovered for energy
Landfill
Production waste for aseptic carton packs by disposal method in 2022 (tonnes)1
Other disposal options2
Reused
Recycled
Recovered for energy
Landfill
Other disposal options2
Total waste
Non-hazardous waste
Hazardous waste
Total waste
1,100
57,400
160
130
4,410
63,200
510
170
840
0
0
1,520
1,610
57,570
1,000
130
4,410
64,720
1 Production waste and waste rate are for sleeves production only, and exclude our closures plant in Switzerland.
2 Such as incineration without energy recovery.
Sourcing sustainable materials
See > pages 135-140 for information on how we are sourcing sustainable raw materials from
certified responsible sources.
Annual Report 2022 The Way Beyond Good
Approach and performance
Food+
121
Food+
Our packs help bring safe and affordable food
and drink to millions of people every day.
SIG packaging systems are well suited to deliver nutritious food and drinks which support the
healthy lifestyles that consumers increasingly aspire to. Our aseptic technology means this
can be done without chilling, helping to make safe nutrition accessible to people who need
it most in emerging markets and regions of the world affected by wars or natural disasters.
The integration of bag-in-box and spouted pouches into our portfolio through acquisitions
this year offers significant potential to expand the amount and types of nutritious food we
help customers deliver by providing solutions for products like fruit and vegetable purees as
well as larger sizes of milk products. The very high evacuation rates for these solutions also
minimise food waste during use.
Together with their strong environmental credentials, our packaging solutions are extremely
well placed to contribute to a net positive food system – while helping our customers and
our business grow.
Our commitment
We partner with customers to deliver food in a safe, sustainable and affordable way to
people around the world. That’s our purpose. Through our focus on Food+, we aim to deliver
even more safe and nutritious food and drink to people around the world.
We will do this by increasing access so that consumers can buy nutritious food in more
locations and outlets, and by keeping food in aseptic packs safe for up to 12 months without
refrigeration. We are also actively seeking to secure more partnerships with customers that
provide nutritious food and drink, and to help customers reach more people in the markets
where this can make the biggest difference.
Beyond this, we are committed to minimising food loss during filling by our customers, and
sharing our technology with communities through our innovative Cartons for Good project,
led by the SIG Way Beyond Good Foundation, to pack and store surplus food crops that
would otherwise be lost.
Annual Report 2022 The Way Beyond Good
Approach and performance
Food+
122
Our targets
2025 target
Use SIG’s position within a more sustainable food supply system to create
demonstrable positive impacts on nutrition and hydration
Increase the total volume of nutritious1 food and beverage products brought to
consumers in SIG packs by 50% by 2030 (from 2020)
Support two start-ups per year through our SIGCUBATOR programme to share
unused aseptic filling capacity to deliver nutritious food safely and efficiently
Maintain certification to ISO 9001:2015 at all production plants
Progress tracker
On track
On track
On track
On track
Maintain BRCGS AA Grade certification at all sleeve and spout production plants
On track
1
Different types of product are categorised according to their nutritional profile based on the independent Health Star Rating System.
Our progress
Customers used our aseptic and chilled cartons to deliver 12.1 billion litres of nutritious¹ food
and drinks in 2022, and our new bag-in-box and spouted pouch business offers opportunities
to grow this significantly. We also enabled more start-ups to launch nutritious new products
through our SIGCUBATOR programme. We maintained robust food safety standards with
ISO 9001 and BRCGS AA certification at all our aseptic carton production plants, minimised
food loss for customers with our industry-leading waste rate of less than 0.5% for filling, and
developed plans to scale up our pilot Cartons for Good project.
SIGCUBATOR kickstarts successful launches of nutritious products
Our SIGCUBATOR programme gives start-ups
an extra boost to help them launch nutritious
new food and beverage products. Successful
applicants get access to advice, expertise and
consumer-focused insights – and use of our
filling machines either at our own Tech Centres
or at existing SIG customers’ plants.
Since we launched the programme in 2020,
SIGCUBATOR alumni have gone on to prosper.
GROUNDED, one of the very first participants,
has launched its plant-based protein shakes
with a major UK online retailer and was named
one of the Top 10 Fastest Growing Companies
in 2022 by London Daily News. A round of seed
investment for the start-up, whose mission is
to “make the cleanest protein shakes on the
planet”, was oversubscribed this year.
Another UK-based start-up, Bear Paw, won
the World Plant Based Taste Award for its
pumpkin spice creamer and the Plant Based
Expo Taste Awards’ Best Dairy Alternative for its
Madagascan vanilla coffee creamer. In Belgium,
Tiptoh’s national listing at Delhaize has put its
pea-based drinks on the shelf in more than
360 stores across the country.
1
Defined by the independent Health Star Rating System as food and drinks that contribute to a balanced diet and lead to better health.
Annual Report 2022 The Way Beyond Good
Approach and performance
Food+
123
Hannah Pathak
Director of UK and Europe,
Forum for the Future
“SIG plays a key role in a resilient food system –
one in which safe, nutritious and reliable food
supports humans to thrive. The company has
been on a journey in developing its Way Beyond
Good ambitions amidst the linked global
challenges of climate change, rising inequality
and nature loss, led by its deep commitment to
contribute a Net Positive impact on people and
planet.
Alongside other leading global companies such
as Nestlé, Unilever and INGKA, SIG contributed
to the Business Transformation Compass –
guidance for just and regenerative business.
In 2022, SIG and Forum for the Future used this
framework to explore how SIG can build on the
robust foundations of its existing commitments,
extend its ambition to have a greater positive
impact, and increase integration between the
Way Beyond Good pillars of Food+, Climate+,
Forest+ and Resource+. Together, we established
key areas for future focus, including supporting
nutrition and food equality, tackling food
loss and food insecurity, building livelihoods
and supporting the adoption of regenerative
agriculture.
There is huge scope for SIG to increase its net
positive impact by scaling up the SIGCUBATOR
and Cartons for Good programmes, using its
influence as a packaging partner to shape the
nutritional content of customers’ products
and encouraging adoption of regenerative
agricultural practices by contributing to the
growing dialogue on this topic.”
Performance in 2022
Delivering nutrition
• Our aseptic and chilled beverage cartons helped customers deliver 19.6 billion litres of
food and beverages to consumers around the world in 2022, including 12.1 billion litres of
nutritious products, such as milk and fruit juice, that contribute to a balanced diet and
better health (as defined by the independent Health Star Rating System).² Since 2020,
the amount of nutritious food and beverage products we have helped customers deliver
to consumers has increased by 8%. This year, we also began exploring how to integrate
our newly acquired bag-in-box and spouted pouch solutions into our Food+ strategy and
key performance indicators to realise their potential to increase the amount and types of
nutritious food we help customers deliver.
• We continued our partnership with Forum for the Future to explore ways to increase our
positive impact on a resilient food supply system. This includes our potential to influence
how much of the food we pack is sustainably sourced (including accelerating adoption
of regenerative agricultural practices), and how much of it is delivering nutrition to the
people who need it most based on a heatmap of malnutrition in the regions we serve.
Building on this initial analysis, we are working to define activities and indicators to take
our Food+ strategy forward. Together, we identified relevant risks and opportunities and
2
Includes the chilled carton business we acquired in 2022.
Annual Report 2022 The Way Beyond Good
Approach and performance
Food+
124
looked at how global trends interact across our other Way Beyond Good action areas to
enrich our understanding of barriers and enablers. One of the tools we used was Forum
for the Future’s Business Transformation Compass for a regenerative and just transition,
which we helped develop for businesses to create transformational strategies to address
global societal challenges together with other leading companies (see quote from Forum
for the Future on > page 123).
• We began an analysis of our key customers’ ambitions in relation to delivery of sustainably
produced food products, reduction of food loss or food waste, and support for a healthier,
more balanced diet. This analysis will enable us to engage in focused discussions with
customers on how we can help them achieve their ambitions, including through our know-
how of aseptic processing and filling technology or our capacity to offer pilot filling trials
under consumable food conditions to support market research on consumer appetite
for new nutritious products. For example, our combiLab team is currently working with
Givaudan to explore how to optimise the aseptic processing of a plant-based drinking
yoghurt.
• By moving from retort cans to SIG aseptic cartons, Daesang Wellife in South Korea has
been able to extend the reach of its nutritious products to more people in more settings
by providing convenient on-the-go packs. In 2022, the company launched a nutritional
drink made with purified water, soy, whey and casein protein concentrates – enriched
with fibre, calcium, yeast extract, nutritional fortifying agent and plant-based ingredients
such as barley, rice, bean sprouts, oats and sesame – in our combismile 250 ml on-the-go
cartons.
• We welcomed two more start-ups to our SIGCUBATOR programme (see case study on
> page 122) to gain advice, consumer insights and access to our filling machines to pack
nutritious new products on a small scale: MAD Foods with its pea-based drinks in Asia
Pacific; and Earth & Iron with its ready-to-drink plant protein milk in the UK. More start-
ups have also been selected for support through the SIGCUBATOR programme.
• SIG won the award for Breakthrough Food Technology at the Gulfood Manufacturing
Industry Excellence Awards 2022 for Heat&Go, the first aseptic carton that can be
heated in the microwave. This innovation enables us to help customers like Daesang
Wellife deliver nutrition in our cartons in a new way, meeting growing consumer demand
for nutritious hot breakfast drinks for both immediate and on-the-go consumption, while
benefiting from the lower environmental impact that beverage cartons offer compared
with alternative types of packaging.
• Our Way Beyond Good Champions’ global Food+ campaign engaged employees to raise
awareness of SIG’s role in preventing food waste and delivering nutrition to people around
the world, and reaching out to support communities (see > page 161). We also donated
unopened food packs that underwent quality testing at our tech centre to charities,
including local foodbanks near our sites and an organisation supporting aid for Ukraine.
Maintaining food quality and safety
• We continued to assess the health and safety impacts of all our products and services
regularly in relation to food quality and safety. There were no incidents of non-compliance
concerning the health and safety impacts of products and services in 2022.
• We maintained global certification to the ISO 9001:2015 quality management standard
for our aseptic carton business and ran an online training programme for employees in
relevant roles on how we implement the requirements.
Annual Report 2022 The Way Beyond Good
Approach and performance
Food+
125
• All our aseptic carton production plants have achieved AA Grade certification to the
Brand Reputation Compliance Global Standards (BRCGS) packaging standard (Issue 6).
• The SIG combiLab at our Tech Centre Europe, where we work together with customers
to develop new nutritious recipes for their products, maintained certification to the
International Featured Standards (IFS) Food Standard.
Minimising food loss from filling and using our packs
• Our highly efficient filling machines continue to lead the beverage carton industry with a
waste rate of 0.5% or less, minimising not only the number of packs wasted in the filling
process, but also the potential loss of food products inside.
• SIG NEO, our next-generation machine launched at the end of 2021 and currently
being prepared for field testing, is designed to cut our waste rate even further. The
accompanying combivita pack and truTwist closure also improve pourability to further
reduce the amount of food residue left in a pack after use.
Turning food loss into safe nutrition for those most in need
• Cartons for Good, the SIG Way Beyond Good Foundation’s flagship project, continued
in Bangladesh using our specially designed Cartons for Good food filling unit to turn
five tonnes of harvest food loss that farmers could not otherwise sell into more than
24,600 nutritious meals preserved in SIG cartons in 2022. Our project partner BRAC, a
local NGO, distributed filled Cartons for Good packs to schools to offer regular hot meals
for 130 children in the urban slums of Dhaka. We also provided 3,000 packs to families in
the region who were affected by flooding in 2022.
• Building on the experience of the pilot project, we are developing plans to scale up
Cartons for Good to save more food from being lost by turning it into nutritious meals.
We have developed a technical concept and begun discussions with potential partners
who can help us implement it.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
126
Sustainable innovation
SIG’s packs offer the most sustainable packaging
solutions in each relevant market segment and
we are innovating to reduce their environmental
impact even further.
Independent life-cycle assessment shows that aseptic cartons – made from around 75%
renewable liquid packaging board – offer significant reductions in life-cycle environmental
impacts compared with other types of packaging, such as glass, plastic bottles or cans.
SIG’s most sustainable product innovations – our SIGNATURE portfolio – lower their life-
cycle impact even further.
The addition of bag-in-box, spouted pouch and chilled carton solutions to our portfolio
through acquisitions this year extends our offering of the most sustainable packaging
solutions across more market segments. This enables us to significantly extend our overall
net positive impact by helping customers get more food to consumers around the world in
more settings – all in a safe, sustainable and affordable way.
Our packs’ strong sustainability credentials are an increasingly important differentiator,
helping customers and retailers meet growing regulatory requirements and achieve their
own targets on sustainable packaging. We are further enhancing these credentials through
sustainable innovation.
Across our portfolio, our product innovation includes a strong focus on optimising material
use, replacing virgin fossil-based polymers with renewable or recycled alternatives,
and designing packaging solutions to be fully recyclable. By innovating to make our
filling machines even more efficient, we can also enable customers to reduce resource
consumption, emissions and running costs from packing products in their factories.
Sustainable innovation supports our Way Beyond Good commitments to reduce the carbon
footprint of our packs and filling machines (Climate+), regenerate resources and contribute
to a circular economy (Resource+), use more materials from sustainably managed forests
(Forest+), and support customers with ways to deliver more nutritious food and minimise
food loss and waste (Food+).
Our commitment
We are committed to investing in research and development to better meet the needs of
customers and consumers, including enhancing the environmental performance of our
packaging solutions.
Sustainability criteria are core value drivers in our product development. We consider the
environmental impacts of our packaging innovations through robust life-cycle assessments
carried out by independent experts using the ISO 14040 and 14044 international standards
and critically reviewed by an independent panel.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
127
Our standard procedures mandate that new packaging designs must demonstrate optimised
resource use compared with previous models, while continuing to deliver the quality and
functionality that customers and consumers demand. The innovative RS structure for
SIG carton packs and the exceptionally high product-to-package ratio of bag-in-box and
spouted pouches (see > pages 9-23) already optimise material use in our existing solutions.
All our beverage cartons are designed to be fully recyclable and we are introducing tethered
closures across our portfolio to help ensure that the caps get recycled together with the
carton.
The cardboard box of bag-in-box solutions is fully recyclable in paper recycling streams
and the mono-material polymer bags used in bag-in-box solutions for dairy are already
recyclable. We are innovating to make more of our newly acquired bag-in-box solutions
fully recyclable via mainstream recycling channels through the development of mono-
material polymer structures. The closures for bag-in-box solutions are tethered by design
and several of our spouted pouches also include tethered closures, including the LinkCap
for retail applications.
A priority for our sustainable innovation is to find ways to introduce renewable or recycled
alternatives to virgin fossil-based polymers. We have already launched the world’s first
packaging materials for aseptic cartons that are linked to up to 100% renewable materials1 –
SIGNATURE 100 and SIGNATURE FULL BARRIER. We also offer the world’s first packaging
materials linked to post-consumer recycled content2 for both aseptic cartons and the bags
of bag-in-box solutions, which will support customers in meeting forthcoming EU regulations
that are expected to increase focus on recycled plastic.
We link the polymers in these solutions to renewable or recycled materials via an innovative
mass balance approach, independently verified through ISCC PLUS or Redcert² certification,
that ensures the same amount of renewable or recycled raw materials that we use to make
the relevant packs is physically mixed in with conventional fossil-based feedstock to produce
polymers to the required grade, and recorded separately to ensure full traceability through
the supply chain. The mass balance system supports a transition away from virgin fossil-
based materials within the conventional and highly efficient polymer industry. It is endorsed
by the Ellen MacArthur Foundation as a valid way to support the circular economy.3
We have led the industry with the first solutions for aseptic cartons with no aluminium layer.
combibloc ECOPLUS and SIGNATURE 100 are for use with oxygen-insensitive products,
such as white UHT milk. With our latest innovation, SIGNATURE EVO, we have launched the
world’s first aluminium-free4 packaging material for aseptic cartons that maintains the full
barrier properties required to preserve oxygen-sensitive products, such as juices, without
the need for an aluminium foil barrier layer. We are now working to achieve cost parity of
aluminium-free⁴ cartons with standard SIG carton packs to support increased uptake.
Where we still use aluminium foil in our cartons, we source aluminium that is certified to the
Aluminium Stewardship Initiative (ASI) standards – an industry first – and we offer customers
the opportunity to include the ASI label on their packs to demonstrate the aluminium has
been responsibly sourced. As of January 2023, we procure 100% of our aluminium foil for
our aseptic carton packs with ASI certification (see > page 137).
1
Linked to wood residues from paper making via an independently certified mass balance system.
2 Via an independently certified mass balance system.
3 The Ellen MacArthur Foundation Mass Balance White Paper.
4 With no aluminium layer.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
128
Our highly efficient filling machines for aseptic cartons already offer the lowest waste rate in
the beverage carton industry, and we aim to improve efficiency with each new generation by
reducing the amount of resources needed to run the machines at our customers’ factories.
This includes energy for heating and sealing the packs, and compressed air, hydrogen
peroxide and water used in cleaning, sterilisation and packaging processes.
We provide technical service upgrades together with support to help customers optimise
the operational and resource efficiency of existing machines – which often remain in use
for decades at their factories – and minimise downtime for repairs. Through our Fill Beyond
Good programme, we help customers improve the sustainability of their factories, for
example by reducing energy and water use.
We also offer highly efficient filling machines and sealing equipment for bag-in-box solutions
and spouted pouches that require minimal inputs of energy, compressed air and hydrogen
peroxide.
Our strong focus on sustainable innovation has already enabled us to deliver significant
enhancements in the environmental credentials of our packaging solutions, including a
host of industry firsts (see > page 129). Through our marketing and sales, we aim to increase
customer uptake of our most sustainable solutions to help amplify our net positive impact
across our Way Beyond Good action areas.
SIG NEO, our next-generation
filling machine, is designed
to reduce overall use of
utilities (hydrogen peroxide,
compressed air and water) by
30%, plus a carbon footprint
reduction of up to 25% for
filling and packaging per pack
compared with our third-
generation filling machines.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
129
Our sustainable innovation journey so far
Our starting point
Standard SIG aseptic carton and
third-generation filling machine
- Packs made of, on average, 75% FSCTM-certified renewable
paperboard, 21% polymers and an ultra-thin layer of aluminium foil
2010
- 28–70% lower carbon footprint than alternative packaging,
such as plastic and glass bottles and aluminium cans7
- Industry-leading waste rate (<0.5%) through highly efficient
filling process
combibloc ECOPLUS
- World’s first aluminium-free1 packaging
material for aseptic cartons
- 82% renewable liquid packaging board
- Up to 27% less carbon than standard SIG
packaging material for aseptic cartons3
- For use with dairy products
Our starting point
2013
combidome
- Looks and pours like a bottle
- Environmental benefits of a carton
Standard SIG aseptic carton and
third-generation filling machine
- Packs made of, on average, 75% FSCTM-certified renewable
paperboard, 21% polymers and an ultra-thin layer of aluminium foil
2010
- 28–70% lower carbon footprint than alternative packaging,
such as plastic and glass bottles and aluminium cans7
- Industry-leading waste rate (<0.5%) through highly efficient
filling process
RS structure
- Optimises use of materials while improving the robustness
of our aseptic cartons during processing and distribution
2016
- Over 40,000 tonnes of polymer avoided since launch
SIGNATURE FULL BARRIER
- Polymers linked to 100% renewable material2
- Ultra-thin aluminium foil layer to protect oxygen-sensitive
products, such as orange juice
- Up to 45% less carbon than standard SIG packaging
material for aseptic cartons3
2017
2018
Paper straw solution
- World’s first paper straw for use with aseptic carton packs
- Straight, U-shaped and telescopic options
- FSCTM-certified paper
SIGNATURE CIRCULAR
- First aseptic carton solution offered with
post-consumer recycled content
- Polymers linked to 100% recycled plastics4
SIGNATURE 100
RS structure
- World’s first aseptic carton linked to
100% renewable material2
- Optimises use of materials while improving the robustness
of our aseptic cartons during processing and distribution
2016
- Aluminium-free1, for use with dairy products
- Over 40,000 tonnes of polymer avoided since launch
- Up to 58% less carbon than standard SIG
packaging material for aseptic cartons3
HEAT&GO
SIGNATURE FULL BARRIER
- World’s first aseptic carton that can be heated in the microwave
- Polymers linked to 100% renewable material2
- Enhanced barrier film and pigmented laminated layer
replace aluminium foil
- Ultra-thin aluminium foil layer to protect oxygen-sensitive
products, such as orange juice
- Up to 45% less carbon than standard SIG packaging
material for aseptic cartons3
2019
ASI-labelled packs
- The world’s first aseptic carton packaging
materials with ASI-certified aluminium foil
- The only cartons that can carry the ASI label
Paper straw solution
- World’s first paper straw for use with aseptic carton packs
- Straight, U-shaped and telescopic options
- FSCTM-certified paper
2020
2021
SIG NEO
- Next-generation filling machine for family-size carton packs
SIGNATURE CIRCULAR
- 25% less carbon for the filling and packaging per pack5
- 30% less consumables (hydrogen peroxide, compressed air and water)5
- First aseptic carton solution offered with
post-consumer recycled content
- Polymers linked to 100% recycled plastics4
SIG NEO
SIGNATURE EVO
- World’s first full barrier aluminium-free1 solution
for aseptic cartons
- For use with both liquid dairy and oxygen-sensitive
products, such as fruit juices, nectars, flavoured
milk or plant-based beverages
Industry leader
Bag-in-box and spouted pouch solutions join our portfolio
- High product-to-packaging ratio
2022
- Less carbon than alternatives, such as plastic and glass
bottles, tubs and jars
- Recycle-ready mono-material spouted pouch
SIGNATURE EVO
- First APR6-recognised recyclable bag-in-box
- World’s first full barrier aluminium-free1 solution
for aseptic cartons
- World’s first bag-in-box linked to recycled content4
- For use with both liquid dairy and oxygen-sensitive
products, such as fruit juices, nectars, flavoured
milk or plant-based beverages
Linked to wood residues from paper making via an independently certified mass balance system.
1 With no aluminium layer.
2
3 Results based on ISO-compliant life-cycle assessment CB-100732c for Europe.
4 Via an independently certified mass balance system.
5
6 Association of Plastic Recyclers.
7 Based on life-cycle assessments for UHT milk, non-carbonated soft drinks and long-life food.
Anticipated savings compared with our third-generation filling machines, to be confirmed through field testing.
Industry leader
combibloc ECOPLUS
- World’s first aluminium-free1 packaging
material for aseptic cartons
- 82% renewable liquid packaging board
- Up to 27% less carbon than standard SIG
packaging material for aseptic cartons3
- For use with dairy products
2013
combidome
- Looks and pours like a bottle
- Environmental benefits of a carton
2017
SIGNATURE 100
- World’s first aseptic carton linked to
100% renewable material2
- Aluminium-free1, for use with dairy products
- Up to 58% less carbon than standard SIG
packaging material for aseptic cartons3
2018
HEAT&GO
- World’s first aseptic carton that can be heated in the microwave
- Enhanced barrier film and pigmented laminated layer
replace aluminium foil
2019
ASI-labelled packs
- The world’s first aseptic carton packaging
materials with ASI-certified aluminium foil
- The only cartons that can carry the ASI label
2020
2021
- Next-generation filling machine for family-size carton packs
- 25% less carbon for the filling and packaging per pack5
- 30% less consumables (hydrogen peroxide, compressed air and water)5
Bag-in-box and spouted pouch solutions join our portfolio
- High product-to-packaging ratio
2022
bottles, tubs and jars
- Less carbon than alternatives, such as plastic and glass
- Recycle-ready mono-material spouted pouch
- First APR6-recognised recyclable bag-in-box
- World’s first bag-in-box linked to recycled content4
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
130
Our targets
2025 target
Launch a full barrier carton linked to 100% renewable materials
(also a target for Resource+, see > pages 109-120)
Further reduce the amount of non-fibre materials in our carton packs to increase the
share of renewable materials and enable SIG cartons to go into paper recycling streams
where relevant by 2030 (also a target for Resource+, see > pages 109-120)
Reduce energy use by 20%, hydrogen peroxide use by 35% and water use by
25% per hour of runtime in our next-generation filling machine for mid-size
format packs (by 2022)1
Reduce use of consumables by 25% for the next-generation filling machine
for small format packs
Progress tracker
On track
New target
Timeline extended
More work to do
1 Target date extended to 2024 due to further delays in field testing that is required to confirm whether the target has been met.
Our progress
In 2022, we launched our award-winning SIGNATURE EVO solution, the world’s first full
barrier packaging material for aseptic carton packs with no aluminium layer, which extends
our aluminium-free5 solutions for use with oxygen-sensitive products, such as juices, as well
as dairy. Uptake of existing solutions in our SIGNATURE portfolio has continued to increase
and we have expanded our range of tethered caps to more of our pack formats. The addition
of bag-in-box, spouted pouches and chilled cartons to our portfolio through acquisitions this
year extends our offering to include the most sustainable packaging solutions across more
segments, and innovation is under way to further enhance their sustainability credentials.
“Following our installation of SIG’s fast and
flexible CFA 812 filling machine last year – the
first in Belgium – we were able to open up a new
retail distribution channel for our liquid dairy
products. Now we are playing another pioneering
role in the European dairy market by being the
first in Belgium to choose SIG’s SIGNATURE 100
packaging material with no aluminium layer.
This sets a new benchmark in offering the most
sustainable dairy products, which meet the
needs of both retailers and our environmentally
conscious consumers.”
Kris Huygh
CEO, Olympia Dairy, Belgium
5 With no aluminium layer.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
131
Expanding our range of tethered cap solutions for SIG packs
“Sustainability is an integral part of our
corporate strategy as well as of Landliebe’s
brand values. Optimising the design of our
packaging for recycling is a top priority for
us, that’s why we didn’t want to wait until
2024 to introduce tethered caps. Being the
first to market globally with SIG’s combiSwift
closure with tethered cap means we are
already now providing our consumers with
a convenient drinking and pouring solution,
which they can then dispose of and recycle
with the carton pack. We have dedicated one
side of the carton pack to easily explain the
usage and environmental benefits of the new
tethered cap.”
Carola Knorr
Marketing Director, DACH, FrieslandCampina
First launched in 2021 for combidome,
tethered cap solutions are now available for a
wide range of SIG carton formats – including
combiblocSlimline and combiblocPremium,
and our next-generation family-size combivita
packaging – with more in the pipeline.
Tethered caps for SIG packs are designed to
be compatible with our existing filling lines
and closure applicators, and market research
shows consumer acceptance is strong with no
compromise in convenience. The pack can be
opened and closed easily as needed until it’s
empty, with an easy-to-use ‘parking mode’ that
keeps the cap out of the way for pouring, then
the cap and the pack can be recycled together.
Our initial focus is on supporting customers in
Europe to meet the EU’s Single-Use Plastics
Directive requirement that all single-use
beverage containers must come with attached
caps by July 2024. Three of the tethered cap
solutions we have already launched – tethered
domeTwist for combidome, and tethered
combiMaxx and combiSwift options for our core
family-size carton portfolio – together account
for around 90% of SIG’s European closures by
volume.
In 2022, FrieslandCampina became the first
customer to put our combiSwift tethered cap on
retail shelves, launching the solution in Germany
for its Landliebe (“Love for the countryside”)
UHT milk in combiblocSlimline carton packs.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
132
Performance in 2022
Driving sustainable innovation in our carton packs
• Environmental considerations informed all our product development and were the main
value driver for 62% of pre-development innovation projects for our aseptic carton
business in 2022. This year, we introduced new guidance on sustainable product design
for our research and development teams. The SIG Innovation Board continued to review
our innovation pipeline regularly in light of evolving sustainability considerations, such as
forthcoming regulations and customers’ sustainability ambitions.
• We launched SIGNATURE EVO, the world’s first full barrier solution for aseptic carton
packs with no aluminium layer. By providing comparable barrier properties to our standard
aseptic carton solutions that include a layer of aluminium foil, SIGNATURE EVO extends
our range of lower carbon aluminium-free6 packaging materials, already available for
plain white milk, for use with oxygen-sensitive products, such as juices, as well as liquid
dairy. SIGNATURE EVO was launched in early 2022 in our combiblocMini portion-size
format and will be extended to other formats. We also plan to offer a SIGNATURE EVO 100
version of this aluminium-free⁶ full barrier carton in future, which will be linked to 100%
renewable materials.7
• We extended our aluminium-free⁶ combibloc ECOPLUS solution to our 500 ml aseptic
carton pack. This format is also available as SIGNATURE 100 linked to 100% renewable
materials.⁷
• We developed and launched tethered cap solutions for more of our aseptic carton pack
formats to ensure the cap is kept together with the carton for recycling (see case study
on > page 131). We will introduce tethered cap solutions for all other pack formats sold in
the EU ahead of EU regulatory requirements that are due to come into force in 2024.
• Our focus on sustainable innovation garnered more awards this year. SIGNATURE EVO
was named Best Sustainable Product at the prestigious Gulf Sustainability Awards in
2022. Our next-generation family-size packaging combivita with truTwist tethered
closure – for use with our next-generation filling machines – won the coveted German
Packaging Award for Functionality and Convenience, with judges particularly impressed
by the tethered closure.
In addition to continuing our focus on increasing collection and recycling capacity for
used beverage cartons (see > pages 109-120), we have set a new target to further reduce
the amount of non-fibre materials in our carton packs to increase the share of renewable
materials and to enable our cartons to go into paper recycling streams where relevant
by 2030 so they can also be widely recycled in regions where only paper recycling streams
are available.
•
Growing uptake of our most sustainable innovations for aseptic cartons
• Sales of our SIGNATURE portfolio packaging materials for aseptic cartons increased
by 13% this year, with further expansion in Europe and North America, as well as market
debuts in Australia and the cream product category. We have now sold enough packs
with these solutions to fill 2.7 billion litres of food. In 2022 alone, 611.6 million litres of
food were packed in SIG packs with SIGNATURE portfolio packaging materials. This
accounted for 3.4% of the food packed in SIG packs worldwide – and 8.2% in Europe.
• Olympia Dairy became the first company in Belgium to launch SIGNATURE 100 for
its liquid dairy products. OSM Łowicz in Poland is the first customer globally to use
combibloc ECOPLUS in the cream category and in our small 500 ml size.
6 With no aluminium layer.
7
Linked to wood residues from paper making via an independently certified mass balance system.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
133
• New product launches with SIGNATURE FULL BARRIER this year included: Massel’s
liquid plant-based range and First Press’s almond and oat milk iced coffees in Australia;
Unilever’s Lipton Ice Tea and Riedel’s Appelsientje, CoolBest and DubbelDrank juice
brands in the Netherlands; Intermarché’s Regain Bio plant-based drinks in France; and
All Friends’ fruit infusions in the USA.
• We are promoting our new SIGNATURE EVO solution with customers around the world,
and several have already begun testing packs with SIGNATURE EVO.
• We remain the only carton producer to offer packs with ASI-certified aluminium and,
from January 2023, we are sourcing 100% ASI-certified aluminium foil. We sold over
8.6 billion SIG packs in 2022 with the ASI code, showing that ASI-certified aluminium
foil was sourced for their production. Of these, nearly 1.4 billion feature the ASI label –
almost three times the number in 2021 as more customers opt to include the ASI label
on their packs to demonstrate and raise awareness of responsible aluminium sourcing.
• We have now sold over 1 billion small-format on-the-go packs with our paper straw
solutions. We expanded uptake with customers in Costa Rica, Egypt, India and Taiwan
this year. We also launched a paper blister for the straw for the first time on the market
with our customer Beyti in Egypt.
• We continued to train sales and marketing teams on our SIGNATURE portfolio to help
them engage with customers to further increase uptake. This year, teams in our Asia
Pacific South and Middle East and Africa regions completed the training.
• Our RS structure reduced the amount of polymers used in SIG carton packs by
10,981 tonnes in 2022.
Uptake of SIGNATURE portfolio packaging materials for SIG aseptic beverage cartons
(million litres)
combibloc ECOPLUS (launched 2010)
SIGNATURE 100 (launched 2017)
SIGNATURE FULL BARRIER (launched 2018)
2020
329.4
86.9
40.9
2021
369.4
102.4
69.21
All SIGNATURE portfolio
457.2
540.91
2022 Total since launch
381
84.4
146.2
611.6
2,143.5
291.8
294.4
2,729.7
1 Previously published data restated in line with restatement policy.
Making our filling machines more efficient
• Our SIG NEO next-generation filling machine for family-size carton packs, launched in late
2021, offers significant improvements in efficiency and sustainability. SIG NEO reduces
our industry-leading waste rates even further, with almost no waste during production,
and is designed to reduce overall use of utilities (hydrogen peroxide, compressed air and
water) by 30%. By reducing energy use, it is designed to offer a 25% lower carbon footprint
for the filling and packaging process per pack compared with our third-generation filling
machines. Field tests planned for 2022 have been delayed and we now expect to be able
to confirm whether we have met our reduction targets for energy, hydrogen peroxide and
water use in 2024.
• Development of our next-generation filling machine for small-format packs has been
delayed. We plan to conduct a study on market requirements in 2023, building on field
tests of our mid-size SIG NEO filling machine.
Annual Report 2022 The Way Beyond Good
Approach and performance
Sustainable innovation
134
• We continued to offer and roll out technical service upgrade kits that offer sustainability
improvements for our third-generation filling machines. These include our water reduction
upgrade kit, designed to cut water consumption during production by up to 50%, and our
SureBrite semi-automated cleaning machine that can cut water use by 54% and energy
use by up to 82% compared with manual cleaning. This year, we extended our water
reduction kit to another SIG filling machine format and launched new upgrade kits to
reduce use of energy and compressed air.
• We continued to support customers in identifying ways to improve the sustainability
of their filling machines and factories as part of our Fill Beyond Good initiative. For
example, we helped a major dairy group in Germany save 15 million litres of water and
avoid 14 tonnes of CO₂ emissions a year through a programme that included installing
our water reduction kit on all its SIG filling machines. Other Fill Beyond Good sustainability
optimisation initiatives for 20 customers this year collectively contributed to annual
reductions of 7.5 million litres of water, 111.4 MWh of energy, 230,000 m³ of compressed
air and 33 tonnes of CO₂ emissions.
Innovating in spouted pouch and bag-in-box
• The addition of bag-in-box and spouted pouches to our portfolio through the acquisition
of Scholle IPN this year extends our offering to include the most sustainable packaging
solutions across more segments (see > pages 11-12 and > page 22). We have begun
integrating these into our sustainability marketing strategies to extend the range of
solutions we offer customers.
• We launched our first recycle-ready mono-material spouted pouch solution with our
largest pouch customer this year. In 2022, the customer, one of the world’s largest fruit
puree brands, used 182,000 m² of our mono-material RecShield® polymer film, enough to
make over 8 million pouches and fill more than 680,000 litres of food. We aim to roll out
this innovation to more customers in 2023.
• Our bag-in-box for water is the first bag-in-box to be recognised as 100% recyclable by
the US Association of Plastic Recyclers (APR), based on a third-party verification process.
APR issued a letter in 2021 to confirm that the polyethylene-based film bag (made up of
a RecShield® outer layer and a 2Pure™ inner layer) and the polyethylene closure meet
or exceed the most strict APR Polyethylene (PE) Film and Flexible Packaging Critical
Guidance protocol, FPE-CG-01. As the cardboard box part of the solution is already
100% recyclable in the paper recycling stream, this means that consumers simply need
to take the bag out of the box and put each element in the appropriate recycling stream.
• The Coca-Cola Company rolled out our 250 litre nylon-free recycle-ready bag-in-box
for its beverage concentrate in 12 markets in Europe in 2022.
• We worked with supplier Sabic on a bag-in-box solution made with polymers linked to
post-consumer recycled content this year.8 Following trials in 2021, customers began
using the solution for a 20 litre bag-in-box in 2022. The polymers are linked to post-
consumer recycled plastics via the same independently certified mass balance system
that we use for our SIGNATURE Circular solution for aseptic carton packs, which was
also developed with Sabic. Like SIGNATURE Circular, chemical recycling is used to
process post-consumer recycled plastics into food-grade polymers that offer the same
properties as polymers made with virgin fossil feedstock.
8 Via an independently certified mass balance system.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our supply chain
135
Responsible culture:
our supply chain
We strive to work with suppliers that share our
commitment to act responsibly and support us in
sourcing sustainable raw materials.
We spend over €1.7 billion a year with more than 6,500 suppliers around the world to support
our aseptic carton business, 56% of which goes on raw materials to make our packs.
Demonstrating that our suppliers uphold high ethical, labour, safety and environmental
standards is critical to meet customer and investor requirements, and to avoid breaches in
our supply chain that could affect our reputation or cause disruptions to supply.
Sourcing raw materials independently certified to standards such as the Forest Stewardship
Council™ (FSC™), Aluminium Stewardship Initiative (ASI) and International Sustainability &
Carbon Certification (ISCC) PLUS enhances the environmental credentials of our packs.
Sustainable sourcing helps us secure supplies to meet the needs of our customers now and
in the future. It also plays a critical role in driving progress in the Way Beyond Good action
areas of Forest+, Resource+ and Climate+, and in achieving our overarching ambition to
have a net positive impact across the value chain.
Our commitment
All our suppliers are expected to meet our responsibility requirements. For those supplying
our aseptic carton business, we monitor their compliance to assess and mitigate social
and environmental risks in our supply chain. Assessments focus on the suppliers that are
considered most significant to our business – based on their potential to affect our ability
to meet customer needs, the high volumes we purchase from them, or sustainability risks
identified in the supply chain – as well as the key equipment suppliers for our Global Assembly
business that makes filling machines for our aseptic carton packs.
For parts sourced for filling machines, we expect suppliers to confirm that no conflict
minerals sourced from conflict-affected or high-risk areas are included in the product.
We are committed to sourcing the A-materials that go into our carton packs – liquid
packaging board, polymers, aluminium foil, ink and solvents – from certified, responsible
sources. We also strive to increase use of renewable and recycled materials to replace
virgin and fossil-based materials. One way we do this is by linking polymers to renewable or
recycled materials through an independently certified mass balance system that supports
a broader transition away from fossil-based feedstock within the mainstream polymer
industry, helping to maintain security of supply and reliable quality for our customers.
Where feasible, we also aim to source locally within each region to increase resilience, support
local economies and communities, and reduce environmental impacts from transporting
goods over long distances.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our supply chain
136
Supply chain for our aseptic carton packs
We source A-materials for our aseptic carton packs from around 45 suppliers, ranging from local paper
mills that source wood from their own forests to major multinational mining and chemical companies.
Norway
Netherlands
Scotland
Norway
Netherlands
Scotland
Belgium
France
Spain
Belgium
France
Spain
Finland
Sweden
Poland
Germany
Finland
Austria
Sweden
Italy
Poland
Germany
Austria
Italy
USA
USA
South Korea
Japan
China
Saudi Arabia
South Korea
Japan
Saudi Arabia
China
Thailand
Thailand
Brazil
Brazil
Polymers
Liquid packaging board
Aluminium foil
Polymers
Liquid packaging board
Aluminium foil
Our targets
2025 target
Ensure 100% of significant suppliers1 accept our Supplier Code of Conduct or
Business Ethics Code for Suppliers or have an equivalent code in place²
(also a target for Human rights, see > pages 141-144)
Audit 50% of high-risk significant suppliers each year
(also a target for Human rights, see > pages 141-144)
Provide regular training (at least every two years) on ethical supplier standards and
sustainable sourcing to all employees who interact frequently with suppliers
(also a target for Human rights, see > pages 141-144)
Progress tracker
On track
On track
On track
100% A-materials³ from certified sources
More work to do
Maintain 100% FSC™-certified supply of liquid packaging board for our packs
(also a target for our Forest+ action area, > pages 105-108)
Transition to 100% bioethanol or other bio-materials for printing
(also a target for our Climate+ action area, > pages 93-104)
On track
On track
1
2
3
Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers
that are managed separately) – based on their potential to affect our ability to meet customer needs, the high volumes we
purchase from them, or sustainability risks identified in the supply chain.
Target wording changed to include new Supplier Code of Conduct, which we began rolling out in 2022.
A-materials are those that go directly into our aseptic carton packs – paperboard, polymers, aluminium foil, ink and solvents.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our supply chain
137
Our progress
In 2022, we launched a new Supplier Code of Conduct that reinforces our strict
requirements on responsible sourcing, and we made further inroads on our journey to
100% certified raw materials. We maintained our industry lead as the only carton provider
to procure 100% FSC™-certified liquid packaging board or offer ASI-certified aluminium
and, as of January 2023, all aluminium foil for our aseptic carton packs is procured with
ASI certification. We are also using more ISCC PLUS-certified renewable polymers1 as
uptake of solutions in our SIGNATURE portfolio grows. Our SIGNATURE FULL BARRIER
solution remains the only packaging material for aseptic cartons with all three main
materials – liquid packaging board, polymers and aluminium – from certified sources.
Procuring 100% ASI-certified aluminium for aseptic cartons
SIG is the first to offer aseptic cartons with
ASI-certified aluminium foil and, from
January 2023, we are procuring 100% of the
aluminium foil for our aseptic carton packs
with ASI certification.
The ultra-thin layer of aluminium foil we use in
standard SIG aseptic cartons makes up just 4%
of the pack on average, but contributes a much
higher proportion of the pack’s life-cycle carbon
footprint due to the energy-intensive processes
needed to produce aluminium.
We are leading the industry by offering the
world’s only packaging materials for aseptic
cartons with no aluminium layer. But these are
not yet available in all formats. In the meantime,
we are working with suppliers to improve
standards in the supply chain and reduce
the carbon footprint of the aluminium foil we
source through certification to the Aluminium
Stewardship Initiative (ASI) standard for
responsible aluminium sourcing, which includes
strict limits for emissions from smelting.
By encouraging suppliers to meet ASI standards,
we are also contributing a wider positive impact
because the same suppliers will deliver carbon
reductions for other companies purchasing
aluminium foil for use in our sector and
beyond. By enabling our customers to include
the ASI label on their products, we are also
increasing consumer awareness and demand
for responsibly sourced aluminium.
Performance in 2022
Working with responsible suppliers
• We continued to screen 100% of our significant2 suppliers on social and environmental
criteria as part of our onboarding process.
• We launched our new Supplier Code of Conduct in 2022 as part of our efforts to enhance
human rights due diligence in the supply chain. The Code applies to all new suppliers, and
we have also begun rolling it out to existing suppliers in place of the SIG Business Ethics
Code for Suppliers.
1 Via an independently certified mass balance system.
2
Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers
that are managed separately) – based on their potential to affect our ability to meet customer needs, the high volumes we
purchase from them, or sustainability risks identified in the supply chain.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our supply chain
138
• We asked our 581 significant suppliers – representing 68% of SIG’s total spend – to respond
to a self-assessment on our responsibility requirements. Of these, 218 (86%) of the direct
suppliers3 and 212 (65%) of the indirect suppliers4 responded (see charts below).
• 74% of our significant suppliers have accepted the SIG Business Ethics Code for Suppliers
or our new Supplier Code of Conduct or have an equivalent code in place (up from 61%
in 2021), and we are engaging with those currently under review to bring this up to 100%.
• No audits were required this year as we did not identify any significant suppliers as high-
risk in 2021 because all those completing assessments had signed our new Supplier Code
of Conduct or our Business Ethics Code for Suppliers, or provided evidence of EcoVadis
assessments, SEDEX audits or equivalent third-party programmes. We identified six
high-risk suppliers in 2022 and will audit 50% of these in 2023 in line with our target.
• We developed a separate Responsible Sourcing Directive specifically tailored to our
Global Assembly business, to be rolled out in 2023. In 2022, 76 of the 81 key suppliers
supporting our Global Assembly function have signed up to our new Supplier Code of
Conduct, our Business Ethics Code for Suppliers or equivalent, and five of them have
achieved certification to recognised external standards (EcoVadis or SEDEX).
• Through our membership of AIM-PROGRESS – a forum of leading fast moving consumer
goods manufacturers and common suppliers to promote responsible sourcing practices
and sustainable supply chains – we used its established methodology to assess the
maturity of our responsible sourcing programme and identify areas to enhance our
human rights due diligence processes (see > page 143) related to our supply chain.
• We began exploring how to align supplier assessment processes used by our newly
acquired businesses with SIG’s established responsible sourcing programme, and we met
with polymer suppliers in the Americas that supply our carton business as well as our
new bag-in-box and spouted pouch business to raise awareness of our expectations on
responsible sourcing.
Rating significant1 suppliers on responsible sourcing standards
% direct
significant suppliers
11%
22%
2%
% indirect
significant suppliers
35%
27%
4%
36%
34%
2% 2%
0%
25%
High risk
Failed to sign up to our Supplier
Code of Conduct or the SIG
Business Ethics Code for
Suppliers (or equivalent), or to
provide evidence of third-party
assessments; or failed to show
improvement or willingness to
improve after signing up to a
relevant code (status valid for
one year)
Re-assessment in progress
Currently undergoing
re-assessment
Under review
Currently undergoing initial
assessment
Advanced
Demonstrated strong
performance through SEDEX
audit findings, EcoVadis Silver/
Gold/Platinum or equivalent
evidence (status valid for up to
three years)
Compliant
Demonstrated compliance
through SEDEX audit, EcoVadis
Bronze or equivalent evidence
(status valid for two years)
Accepted
Signed up to our Supplier Code
of Conduct or the SIG Business
Ethics Code for Suppliers and
achieved the minimum standard
in our assessment. Depending
on the type of supplier, some
are expected to submit plans
to achieve certification to
recognised standards or third-
party assessments (status valid
for two years)
1
Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers that are managed separately) –
based on their potential to affect our ability to meet customer needs, the high volumes we purchase from them, or sustainability risks identified in the supply chain.
3 Direct suppliers provide raw materials for our packs and secondary packaging, and manufacture the spouts used on our packs.
4
Indirect suppliers provide services such as facilities management, HR and logistics.
Annual Report 2022
The Way Beyond Good
Approach and performance
Responsible culture: our supply chain
139
Sourcing sustainable raw materials
• We remain the only carton producer to offer packs with ASI-certified aluminium, and
we continued to offer the world’s first and only packaging material (SIGNATURE FULL
BARRIER) for aseptic cartons with all three main materials – liquid packaging board,
polymers and aluminium foil – from certified sources.
• We increased the proportion of A-materials5 from certified sources to 74% (by volume)
in 2022. We continued to lead the industry as the only beverage carton producer to
procure 100% FSC™-certified liquid packaging board for our aseptic carton packs –
since January 2021. We engaged with aluminium suppliers to encourage more of them
to achieve ASI Chain of Custody certification and secured further supplies of ASI-
certified aluminium to enable us to procure 100% of the aluminium foil for our aseptic
carton packs with ASI certification from January 2023 (see case study on > page 137).
We also increased sales of solutions in our SIGNATURE portfolio that linked to renewable
polymers⁶ certified to ISCC PLUS (or in some cases REDcert²). There remains no suitable
certification for fossil-based polymers and our focus is on increasing use of renewable or
recycled alternatives.
•
• 71% (by volume) of our A-materials⁵ came from renewable sources in 2022 (up from 69%
in 2021), mostly liquid packaging board. Growing customer demand for our SIGNATURE
portfolio solutions has increased our use of polymers linked to 100% renewable materials,6
but the overall amount remains low compared with the amount of fossil-based polymers
we source for our aseptic cartons.
In 2022, we maintained our Group certification to the ASI Performance Standard for our
aseptic carton business. We had FSC™ and ASI Chain of Custody certification, as well
as certification to control ISCC PLUS materials, in place at all our operational aseptic
carton production plants – including ASI and ISCC PLUS certification for the first time at
our former joint venture in Riyadh (Saudi Arabia) and ISCC PLUS for the first time at our
second production plant in Suzhou (China). We achieved FSC™ and ASI Chain of Custody
certification at our newly constructed plant in Mexico ahead of production commencing
in 2023. In addition, we added our recently acquired chilled carton production sites in
China, South Korea and Taiwan to the SIG FSC™ multi-site certificate, and maintained
ISCC PLUS certification at two newly acquired sites in Europe for handling polymers
linked to recycled material for bag-in-box solutions.
• Seven of our eight aseptic carton pack production plants have already moved from
fossil-based solvents to plant-based bioethanol for our printing processes, and we are
continuing to explore how to extend the switch to renewable alternatives worldwide.
• We continued to source 100% of the corrugated cardboard boxes we use as secondary
packaging for our aseptic cartons in Europe, Latin America and Asia Pacific South from
FSC™-certified sources, and we aim to extend this to our Middle East and Africa region
through our upcoming tender process.
5
6
A-materials are those that go directly into our aseptic carton packs – paperboard, polymers, aluminium foil, ink and solvents.
Via an independently certified mass balance system.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our supply chain
140
Sourcing A-materials1 for our aseptic carton packs
2016
2017
2018
2019
2020
2021
2022
550,000
533,000
550,000
582,000
594,000
666,000
687,000
70%
71%
72%
73%
72%
69%
71%
53%
63%
64%
63%
62%
70%
74%
Raw materials
purchased (tonnes
of liquid packaging
board, aluminium and
polymers)
% A-materials from
renewable sources
(by volume)
% A-materials from
certified sources
(by volume)
1 A-materials are those that go directly into our aseptic carton packs – paperboard, polymers, aluminium foil, ink and solvents.
At our aseptic carton
production plants, we process
raw paperboard, aluminium
and polymers – first into
coated paperboard and then
into carton sleeves.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: human rights
141
Responsible culture:
human rights
We strive to identify, prevent and manage negative
potential and actual human rights impacts in
our operations, supply chain and with respect to
our major business relationships.
In doing so, we can contribute to global respect for human rights and support our ambition
to have a scalable, systemic net positive impact on society, as well as meeting growing
regulatory demand for human rights due diligence. Our approach is guided by the United
Nations Guiding Principles on Business and Human Rights and the relevant Organisation for
Economic Co-operation and Development (OECD) frameworks.
Our commitment
SIG is a signatory to the United Nations Global Compact. We are committed to adhering
to the standards encompassed by the International Bill of Human Rights, the International
Labour Organization’s (ILO) core labour standards and the Ethical Trading Initiative (ETI)
Base Code.
We are working to apply a systematic implementation process – informed by a gap analysis
of existing measures, structures and responsibilities – to help us identify and address our
salient human rights issues in our own operations and supply chain, as part of strengthening
our due diligence framework.
Our commitment to promoting fair labour practices and upholding labour rights for our
employees, which is embedded in our Human Rights, Labour and Community Engagement
Policy, includes: providing fair pay and decent working conditions to enable adequate living
standards; recognising the right to freedom of association and collective bargaining; and
preventing discrimination, child labour and modern slavery (including human trafficking,
forced and compulsory labour, bonded labour and slavery). We also ensure working
conditions and terms of employment for employees not covered by collective bargaining
agreements are in line with our standards and local requirements.
Two-yearly SEDEX Members Ethical Trade Audits (SMETA) at our production sites, which
include an assessment of potential human rights risks and impacts as part of the labour
pillar, help us check that we are living up to our commitments in our own operations. If the
audit findings identify any issues, corrective action plans help us to remediate these and
establish mechanisms to prevent similar issues in the future.
We extend requirements and expectations on human and labour rights to suppliers through
our Supplier Code of Conduct to protect supply chain workers. Suppliers are expected to
communicate and apply the principles throughout their supply chain. Criteria for our own
audits of high-risk suppliers, as well as third-party assessments such as SMETA audits
requested from significant suppliers, include human and labour rights. FSC™ certification,
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: human rights
142
required for all the liquid packaging board we purchase, also includes criteria on protection
of human and indigenous rights in communities. See > pages 135-140 for more on working
with responsible suppliers.
Annual certification on the SIG Code of Conduct, which includes our requirements on
human rights, is mandatory for all employees. Any grievances can be reported through our
Integrity & Compliance Hotline. We investigate all reported issues, take appropriate action
and seek to find solutions together with the affected person.
Our targets
2025 target
Advance our human rights risk identification and assessment processes
in our own operations and supply chain to define salient human rights issues
Conduct assessments of potential human rights risks and impacts in 50%
of our own plants every two years
Progress tracker
On track
On track
Maintain SEDEX Members Ethical Trade Audit (SMETA) at all production sites
On track
Ensure 100% of significant1 suppliers accept our Supplier Code of Conduct
or Business Ethics Code for Suppliers or have an equivalent code in place2
(see Supply chain on > pages 135-140)
Audit 50% of high-risk significant suppliers each year
(see Supply chain on > pages 135-140)
Provide regular training (at least every two years) on ethical supplier standards
and sustainable sourcing to all employees who interact frequently with suppliers
(see Supply chain on > pages 135-140)
On track
On track
On track
1
Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers that
are managed separately) – based on their potential to affect our ability to meet customer needs, the high volumes we purchase from
them, or sustainability risks identified in the supply chain.
2
Target wording changed to include new Supplier Code of Conduct, which we began rolling out in 2022.
Our progress
We continued to review and strengthen our human rights due diligence this year by:
assessing our operations and supply chain against upcoming regulatory requirements; using
a methodology developed by AIM-PROGRESS to help us identify opportunities to better
integrate human rights due diligence in our responsible sourcing programme; and launching
a new Supplier Code of Conduct that more explicitly addresses our requirements on this
than the previous SIG Business Ethics Code for Suppliers. We also appointed an executive
sponsor for human rights at Group Executive Board level to help drive progress in this area.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: human rights
143
Thailand plant recognised for excellent labour practices
Our aseptic carton production plant in Rayong,
Thailand, received the 2022 Excellent Practices
Establishment on Labour Relations and Welfare
National Level as the 2nd Year of Achievement
award from the Thai Ministry of Labour.
together to develop a labour relations and
welfare management system that provides
employees with good working conditions and
a good quality of life that provides stability and
enables them to feel happy at work.
The award is based on the implementation of
a labour management system according to
international standards that meet 148 specified
requirements in four categories, including
cooperation with the trade union. It aims to
encourage employers and employees to work
Of the 11,500 companies in Rayong Province,
SIG is one of just 99 companies to receive the
award. This latest recognition follows similar
Ministry of Labour awards for the Rayong plant
at national level in 2021 and provincial level
in 2020.
Performance in 2022
Strengthening human rights due diligence
•
In 2022, we appointed our Chief People and Culture Officer, Suzanne Verzijden, who is
a member of our Group Executive Board, as executive sponsor for human rights to help
drive our progress in continually improving our human rights due diligence.
• We completed an assessment of our operations (including the businesses we acquired
this year), and the supply chain for our aseptic carton business, to identify any changes
required to our human rights due diligence policies and processes to ensure compliance
with forthcoming regulatory requirements on this topic. Based on this assessment, we
have developed a roadmap to implement the required changes in our operations and
supply chain over the next two years.
• We launched a new Supplier Code of Conduct in 2022 that reinforces our human rights
due diligence requirements and expectations, and addresses these more explicitly than
the previous SIG Business Ethics Code for Suppliers. This follows updates to the SIG Code
of Conduct and our Human Rights, Labour and Community Engagement Policy last year to
more explicitly address human rights due diligence and grievance processes in relation
to our operations.
• Through our membership of AIM-PROGRESS – a forum of leading fast moving consumer
goods manufacturers and common suppliers to promote responsible sourcing practices
and sustainable supply chains – we used its established methodology to assess the
maturity of our responsible sourcing programme and identify areas to enhance our
human rights due diligence processes related to our supply chain.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: human rights
144
Raising awareness and acting on concerns
• 99%1 of SIG Group employees completed their annual certification on the SIG Code of
Conduct, including virtually everyone who joined the business through acquisitions this
year. We also provided in-depth training for employees in high-risk roles on topics such
as anti-harassment.
• We advertised our Integrity & Compliance Hotline through various channels, including
the SIG Code of Conduct – as well as including information in our Supplier Code of
Conduct on how to raise a concern – to encourage employees and suppliers to speak
up if they have any concerns. We investigated all reports and took disciplinary action,
including reprimands and dismissals, where appropriate. No incidents of discrimination
were substantiated in 2022.
Upholding labour rights in our operations
• All our aseptic carton production sites, our office site in Mexico and several of our legal
entities in Germany and Switzerland completed SEDEX SMETA audits – which include an
assessment of potential human rights risks and impacts as part of the labour pillar – in
2021. The next scheduled two-yearly audits in 2023 will also include the production plants
we acquired this year.
• Our production plant in Rayong (Thailand) received the 2022 Excellent Practices Estab-
lishment on Labour Relations and Welfare National Level as the 2nd Year of Achievement
award from the Thai Ministry of Labour (see case study on > page 143).
• Globally, around 46%2 of employees in our carton business were covered by collective
bargaining agreements in 2022, and we continued to engage on pay, benefits and other
locally relevant topics in formal consultations with employee representatives.
See > pages 145-153 for more on employee topics such as diversity, equity and inclusion, and
see > pages 154-159 for more on employee health, safety and wellbeing.
Extending requirements to our supply chain
See > pages 135-140 for more on upholding labour and human rights in our supply chain as
part of our commitment to source from responsible suppliers.
1
2
Includes employees joining SIG from Scholle IPN and Evergreen Asia, both acquired in 2022.
Includes employees joining SIG in 2022 through the acquisition of Evergreen Asia. Excludes employees joining SIG in 2022
through the acquisition of Scholle IPN.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
145
Responsible culture:
our people
We strive to create a strong and supportive culture
where our people feel empowered to dream big,
go beyond and make the impossible possible.
Fostering a winning team is one of the three main business goals in our Corporate Compass.
To support this goal, we strive to create an inclusive culture and embrace diversity, invest in
training and development to help employees achieve their goals and build their careers with
SIG, listen and respond to our people, recognise and reward the work they do, and create a
positive working environment.
These commitments help us recruit and retain the best people, maintain strong levels of
job satisfaction, motivation, engagement and productivity, support our diverse customers,
foster innovation, develop the skills we need to support our business now and in the future,
and meet growing expectations from investors and other stakeholders on these issues.
Our commitment
We employed approximately 8,700 employees in 2022, including nearly 2,500 joining us
through acquisitions part way through the year.
We are committed to providing an inclusive working environment where everyone can bring
their true selves to work. We do not tolerate discrimination based on race, religion, national
origin, political affiliation, gender, sexual orientation, disability, age or any other relevant
category. Improving gender balance, particularly at senior levels of the business, is a priority
and we aim to do so through enhanced efforts to attract and develop female employees and
leaders.
We strive to provide opportunities for career development and to lead the industry in our
investment in training and development. We continually work to improve the frequency and
quality of feedback and appraisal sessions to support employee engagement, development
and performance.
We are committed to creating an open, engaging and energising work environment where
our people feel that their ideas, needs and concerns are heard and valued, they are
recognised and rewarded for what they do, and they understand how their work contributes
to the success of the business. Positive working conditions are reinforced by ensuring fair
pay, working hours and days off, providing job security and offering competitive benefits in
each local market.
Our commitment to uphold fair labour practices is part of our wider commitment on human
rights (see > pages 141-144).
Annual Report 2022
The Way Beyond Good
Approach and performance
Responsible culture: our people
146
Our targets
2025 target
Progress tracker
Increase percentage of women in leadership positions to 30%
On track
Maintain survey score linked to inclusive environment above industry benchmark1
On track
Sustain our training and development investment above industry benchmark
More work to do
Ensure 100% of key talent (current and future business leaders for critical positions)
have a defined development plan
Discontinued
2
Achieve engagement level above industry benchmark1
More work to do
Increase % of employees who feel we have responded to their feedback
based on the last survey
Increase % of employees who feel SIG makes adequate use of recognition and
reward other than money
More work to do
More work to do
1
2
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
We have discontinued our target on development plans for key talent and instead we will focus on wider talent development for
employees across the business.
Our progress
Women now represent a third of our Group Executive Board and 23%1 of our leaders
worldwide, and we continued efforts to recruit and develop women across our business. We
extended our range of learning and development programmes, and introduced a mobility
policy to encourage opportunities for international assignments. In our latest employee
survey, engagement levels remained strong and we continued to outperform the industry
benchmark in half the categories, even during a period of change in the business with two
major acquisitions in 2022. Engaging employees on our plans and welcoming new colleagues
joining us through acquisitions were important areas of focus this year.
In 2022, we welcomed
another two women to the
Group Executive Board
(GEB) – Angela Lu, President
& General Manager Asia
Pacific South, and Suzanne
Verzijden, Chief People &
Culture Officer. Women now
make up 33% (three of nine
members) of the GEB.
1
Includes employees joining SIG from Evergreen Asia.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
147
Accelerating development for women at SIG
The first cohort of 15 female SIG employees
completed our new Women Acceleration
Programme this year and the next cohort has
begun. The programme offers virtual learning,
coaching and mentoring, as well as project
challenges over nine months. Feedback has
been very positive.
Tania de la Cruz
Key Account Manager in
Mexico and participant in
our Women Acceleration
Programme
“Being part of this amazing programme has
helped me gain confidence in my own set of
skills that make me unique as a professional
woman. I have learned effective new techniques
to analyse challenges and overcome obstacles,
and expanded my support network to help me
find better solutions to complex challenges.
The programme has given me the opportunity
to get to know myself better and develop my
own leadership style to become a better leader,
a better colleague and a better version of me.”
Performance in 20222
Diversity, equity and inclusion
•
In 2022, we welcomed another two women to the Group Executive Board (GEB) –
Angela Lu, President & General Manager Asia Pacific South, and Suzanne Verzijden,
Chief People & Culture Officer. Women now make up 33% (three of nine members) of the
GEB and 33% (three of nine members) of our Board of Directors.
• Women represented 23% of our leaders in 2022, up from 20% last year, and we remain on
track with our roadmap to achieve our target to increase women in leadership to 30% by
2025. Fifteen female leaders completed our new Women Acceleration Programme and a
second cohort began the programme in December 2022 (see case study above).
• We worked to enhance gender diversity in our Middle East and Africa business, fully
owned by SIG since 2020. We have appointed our first female function leader in the
region, the new head of Human Resources, who is also the first woman in our Middle East
and Africa management team. Women also joined our business in Saudi Arabia for the
first time this year, with four new female employees at our Riyadh site, and we welcomed
our first female employee in Nigeria as Head of Sales in our Lagos sales office.
In line with our global approach, we promoted diversity and inclusion from the beginning
of the recruitment process for our new plant in Mexico this year. We featured images
of women in job postings and social media, included female candidates in shortlists
regardless of position, trained recruitment teams on unconscious bias, and offered
suitable benefits and facilities to attract and retain women. We also refreshed our
collaboration with RWTH Aachen University
in Germany to encourage female
engineering students to consider careers at SIG.
•
2
Except where otherwise noted, all employee performance data includes employees joining SIG in 2022 through the acquisition
of Evergreen Asia, but excludes those joining through the acquisition of Scholle IPN.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
148
• We celebrated International Women’s Day with a series of initiatives on the 2022 theme
#BreakThe Bias, including an informal virtual coffee meeting for SIG women to connect
with colleagues across the organisation, as well as local talks and celebrations.
• We completed the rollout of mandatory training on unconscious bias and inclusion to
all SIG leaders, and in 2023 we will extend this to leaders who have joined us through
acquisitions this year.
• We have begun to look at diversity beyond gender, starting with a virtual fireside chat
on LGBTQIA+ with an external expert who shared personal experiences and thoughts on
how SIG can become a more inclusive workplace and create a safe environment for all
employees to bring their whole selves to work.
• We achieved a score of 83%3 for diversity, equity and inclusion in our 2022 employee
survey, six points above the industry benchmark.4
Women in management (%)
Women in leadership positions3
(target 30% by 2025)
Group Executive Board
Senior management
Middle management
Junior management
All management
All employees
20182
20192
20202
17%
18%
2021
20%
20221
23%
–
0
15%
17%
21%
17%
18%
0
0
14%
(1 of 7)
33%
(3 of 9)
13%
18%
25%
18%
19%
22%
18%
24%
19%
19%
16%
20%
25%
22%
19%
8%
19%
25%
23%
20%
1
Includes employees joining SIG in 2022 through the acquisition of Evergreen Asia. Excludes employees joining SIG in 2022 through
the acquisition of Scholle IPN.
2 Data not assured for 2018–2020, except for “all employees”, as we changed the categorisation of managers.
3
Includes GEB, senior and middle management roles.
Talent development
• We continued to offer coaching opportunities and launched a global mentoring programme,
open to all employees, in January 2022. By the end of the year, 58 mentors and 54 mentees
were actively participating.
• The first cohort of 75 participants embarked on our Transformational Leaders training,
with cross-functional workshops and face-to-face workshops with leaders and direct
teams. Separately, 16 employees are participating in our Operations Leaders Development
programme as the second cohort for this programme. We plan to extend both programmes
in 2023. We also piloted a four-month programme that provided coaching and workshops
on leadership and management for 12 new leaders, or people who will soon be leaders.
• We launched a six-month pilot for on-demand training through the Bookboon e-library,
with more than 1,000 employees using the service to access nearly 8,400 units of content
by the end of the year. We also continued to offer access to Speex for language learning,
used by employees to complete around 1,400 hours of training.
3
4
Includes employees joining SIG in 2022 through the acquisitions of Scholle IPN and Evergreen Asia.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
149
• Overall, we provided an average of 20.9 hours of training per employee in 2022, up slightly
from 20.5 hours last year but still falling short of the pre-pandemic industry benchmark
of 24.0 hours. We provided an average of 21.0 hours per employee for men and 20.6 hours
per employee for women.
• We have introduced a new global mobility policy, with central coordination of long-term
international assignments to create a more consistent approach across the business.
We are also offering opportunities to enhance cross-functional experiences through
short-term assignments on specific projects. For example, we offered international
assignments to Mexico in 2022 to prepare for and support operations at our new aseptic
carton production plant in Querétaro.
• We have discontinued our target on development plans for key talent and instead we will
focus on wider talent development for employees across the business following on from
the training and guidance we introduced for managers and employees last year on setting
effective development plans. In 2022, 57% of employees received regular performance
and career development reviews.
• Feedback from employees5 participating in our survey this year showed we are four
points above the industry benchmark6 for learning and development opportunities.
Average hours of training (per employee)
Employee category
2015
2016
2017
2018
2019
2020
2021
20221
Management
Non-management
Total
39.4
32.8
33.5
37.9
28.0
29.0
33.5
24.1
25.1
31.7
22.4
23.4
35.5
22.7
24.3
26.3
18.4
19.4
24.8
19.9
20.5
31.9
19.3
20.9
1
Includes employees joining SIG in 2022 through the acquisition of Evergreen Asia. Excludes employees joining SIG in 2022 through
the acquisition of Scholle IPN.
Employee satisfaction
• Globally, 78% of our employees – including those joining through acquisitions part way
through the year – participated in our biennial employee survey in 2022. Despite the
survey taking place during a period of significant change in the business, shortly after
two major acquisitions, our overall engagement score remained strong at 83%⁵, just one
point below the industry benchmark.6
• Overall, we significantly outperformed industry benchmarks in six of the 11 categories,
most notably on corporate responsibility, equal opportunities and inclusion, learning
and development (particularly career advancement opportunities), fairness of pay
and retention. We also identified room for improvement, where we scored below the
industry benchmark, in relation to empowerment, non-monetary recognition and survey
follow-up. We have a clear roadmap in place for our leaders and employees to discuss
survey results at global and local level, define and implement actions, and communicate
progress on an ongoing basis to demonstrate more clearly how we are responding to
feedback from the survey. This includes engagement plan workshops for managers to
address specific local feedback with their teams.
5
6
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
150
• 60%7 of employees felt that significant actions have been taken to address priorities
identified through the previous employee survey, compared with 61% in 2020. This
year, we continued to look for ways to further improve on priority areas identified in the
previous employee survey, including:
• Making more use of non-monetary recognition: Top teams and leaders from across
SIG were recognised through our global SIG Shine awards, presented by SIG CEO
Samuel Sigrist at our townhall meeting in March 2022. We introduced non-monetary
recognition programmes in our Middle East and Africa region for the first time this
year. Other local and regional programmes to recognise employee contributions
to the Company’s success included regular recognition at group meetings and
quarterly awards of a special performance bonus in China, everyday appreciation
cards in Thailand, Stars Awards in our Asia Pacific region, Believe in + Recognition
awards in North America, personal thank you posters drawn by our plant manager
in Linnich (Germany) and thanks to colleagues celebrating milestone anniversaries
at SIG. 58%8 of employees participating in our latest biennial survey in 2022 felt
that SIG makes adequate use of recognition and rewards other than money to
encourage good performance, six points below the industry benchmark.9
• Communicating long-term goals better: We communicated our business strategy
and engaged employees on our goals and other topics through quarterly townhall
meetings, a roundtable with members of the GEB, extended leadership team
meetings and local communications. The integration of newly acquired businesses
was a key focus of our dialogue with employees this year (see > page 151). In South
America, all SIG managers took part in a communicative leadership programme to
support them in engaging their teams through clear communication.
• Clarifying possible career paths: We continued to expand our range of training and
development programmes, including introducing a new mentoring programme and
mobility policy. We have discontinued our target for key talent to have development
plans in place to focus on wider development opportunities for employees across
the business.
Improving physical working conditions at some sites: Following on from work to
improve ventilation and temperature control at our plant in Linnich (Germany)
last year, we are now investing in similar improvements at our plant in Neuhausen
(Switzerland).
•
• We introduced a hybrid working model for office workers, with an average of three days
in the office and two days with employees working wherever they feel they work best,
depending on their roles. This flexibility is designed to help employees meet the demands
of work and home in the most productive and healthy way, while encouraging impactful
collaboration and meaningful connections with colleagues and customers. A toolkit for
leaders helps them with decisions on when and how to manage teams who are not in the
office and provides ideas to foster a positive in-office environment. We also launched a
new global programme to support employee wellbeing (see > page 159).
• We continued to review pay and benefits to ensure they remain competitive within each
local market, including in light of rising inflation rates.
7
8
9
Excludes employees from parts of the business that were not included in our previous survey: the Middle East and Africa region,
which SIG took full ownership of in 2021, and the businesses acquired from Scholle IPN and Evergreen Asia in 2022.
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
151
• We received external recognition for our efforts on employee satisfaction this year. We
achieved Great Place to Work™ certification – the global benchmark for outstanding
employee experience based on surveys of employees – in South America for the second
time and in North America for the first time (for both Mexico and the USA). Our Rayong
plant received the 2022 Excellent Practices Establishment on Labour Relations and
Welfare National Level as the 2nd Year of Achievement award from the Thai Ministry of
Labour (see > page 143). SIG Combibloc China was honoured with the title of Greater
Suzhou Best Employer for the second year running in an assessment that included both
employee perception and expert evaluation
• Our voluntary turnover rate was 6.6% in 2022.
Biennial employee survey results
2016 survey 2018 survey 2020 survey1 2022 survey
Sustainable engagement score
74%
78%
Diversity, equity and
inclusion score
% employees who feel SIG
makes adequate use of
recognition and reward other
than money
% employees who feel we have
responded to their feedback
based on the last survey
-
-
-
–
-
-
87%
-
63%
83%³
83%³
58%³
61%
60%⁴
Comparison
with 2022
industry
benchmark²
-1
+6
-6
-2
1 Scores were unusually high in 2020 due to the exceptional circumstances at the start of the COVID-19 pandemic.
2
3
4
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Excludes employees from parts of the business that were not included in our previous survey: the Middle East and Africa region,
which SIG took full ownership of in 2021; and Scholle IPN and Evergreen Asia, both acquired in 2022.
Managing change
• We completed two major acquisitions in 2022. We communicated regularly with existing
SIG employees and colleagues joining us from Scholle IPN and Evergreen Asia to set
out our strategy and keep them updated on our plans and next steps, both prior to
the acquisitions and as we begin to integrate the newly acquired businesses into SIG
policies and processes. We held a series of events to welcome the approximately
2,100 employees joining from Scholle IPN and 385 from Evergreen Asia, and feedback
was very positive.
In June 2022, when the acquisition of Scholle IPN completed, we held a series of Day
One events around the world to celebrate. The events kicked off with a joint video
message from SIG CEO Samuel Sigrist and Scholle IPN President Ross Bushnell setting
out our Better Together approach. During the events, SIG leaders were on site at various
Scholle IPN locations to engage with new colleagues face to face and answer their
questions.
•
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
152
• When the acquisition of Evergreen Asia’s chilled carton business completed in August
2022, we held a series of townhall meetings to welcome new colleagues and introduce
SIG’s business strategy. These were followed up with team meetings and sessions with
SIG representatives and the general managers of the three former Evergreen plants in
China, South Korea and Taiwan to enable employees to ask questions.
• 79%10 of employees participating in our 2022 survey – including those joining us from
Scholle IPN and Evergreen – said SIG does a good job of keeping them informed about
matters that affect them (two points above the industry benchmark11).
Our workforce1
Total number of
employees:
Male
Female
Employees with a
permanent contract:
Male
Female
Aged up to 30
Aged 31 to 50
Aged above 50
Full-time employees:
Male
Female
Part-time employees:
Male
Female
Employees with a
fixed-term contract:
Male
Female
thereof Apprentices
Asia Pacific
Americas
Europe
2,445
874
2,907
1,927
518
1,726
1,427
299
173
1,317
236
1,726
1,427
299
0
0
0
719
500
219
0
619
255
828
600
228
240
535
53
826
600
226
2
0
2
46
19
27
20
2,387
520
2,665
2,185
480
305
1,256
1,104
2,517
2,108
409
148
77
71
242
202
40
134
Middle East
and Africa
524
470
54
521
469
52
63
398
60
521
469
52
0
0
0
3
1
2
0
Total
6,750
5,403
1,347
5,740
4,681
1,059
781
3,506
1,453
5,590
4,604
986
150
77
73
1,010
722
288
154
%
80
20
82
18
14
61
25
82
18
51
49
71
29
1
Includes employees joining SIG in 2022 through the acquisition of Evergreen Asia. Excludes employees joining SIG in 2022 through
the acquisition of Scholle IPN.
10
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
11
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: our people
153
New hires1
Total number of
new hires:
Male
Female
Aged up to 30
Aged 31 to 50
Aged above 50
Rate of new hires:
Male
Female
Aged up to 30
Aged 31 to 50
Aged above 50
Asia Pacific
Americas
Europe
MEA
106
76
30
35
67
4
6%
4%
2%
20%
5%
2%
175
116
59
72
94
9
21%
14%
7%
30%
18%
17%
136
81
55
56
77
3
5%
3%
2%
18%
6%
0%
73
62
11
23
45
5
14%
12%
2%
37%
11%
8%
Total
490
335
155
186
283
21
9%
6%
3%
24%
8%
1%
%
68
32
38
58
4
1
Includes employees joining SIG in 2022 through the acquisition of Evergreen Asia. Excludes employees joining SIG in 2022 through
the acquisition of Scholle IPN.
Employee turnover1
Asia Pacific
Americas
Europe
Total employee turnover
Voluntary employee
turnover rate
Total employee turnover:
Aged up to 30
Aged 31 to 50
Aged above 50
Male
Female
19%
8%
331
50
240
41
229
102
17%
8%
139
74
58
7
89
50
12%
5%
319
121
123
75
239
80
MEA
12%
9%
65
25
37
3
58
7
Total
15%
6.6%
854
270
458
126
615
239
%
31
54
15
72
28
1
Includes employees joining SIG in 2022 through the acquisition of Evergreen Asia. Excludes employees joining SIG in 2022 through
the acquisition of Scholle IPN.
Governance bodies by age group
Board of Directors
Aged up to 30
Aged 31 to 50
Aged above 50
Group Executive Board
Aged up to 30
Aged 31 to 50
Aged above 50
0 of 9 (0%)
1 of 9 (11%)
8 of 9 (89%)
0 of 9 (0%)
4 of 9 (44%)
5 of 9 (56%)
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: health, safety and wellbeing
154
Responsible culture:
health, safety and wellbeing
We strive to ensure everyone can go home safe
and well every day.
Enabling employees to stay safe and healthy at work is a prerequisite for any responsible
company. By empowering our people to adopt safe behaviours at work, we can also have a
wider positive impact when they take the same safe behaviours home to their families. Our
focus on preventing injuries and promoting health and wellbeing also supports our business
by reducing lost time, enhancing productivity and improving employee engagement.
Our commitment
We aim to prevent work-related incidents and illnesses through our Life Saving Rules that
target the biggest risks to our people (see > page 155) and through robust health and safety
management systems, certified to ISO 45001 standards at all our aseptic carton production
plants, which promote continuous improvement.
We train all employees on health and safety, including how to manage risks specific to their
role, be that in our production plants or offices, working from home or providing technical
service support at our customers’ sites. We also provide health and safety training for
contractors working at our sites.
We go further by empowering our people to provide input and feedback through our
behaviour-based safety programme and safety opportunity cards. Each production plant
must ensure that at least 15% of employees have completed training on behaviour-based
safety – with some sites targeting 100% – and we track progress as part of our monthly
health and safety metrics.
Employees also participate in our health and safety steering committees. These include
plant management and employee representatives, as well as other participants, such as local
environment, health and safety and human resources teams, works council representatives
and medical doctors.
We conduct annual risk assessments at each site, and we are committed to monitoring
incidents and near misses, systematically analysing their root causes and targeting
improvements through local corrective action plans. We also recognise sites that have
achieved exceptionally strong safety performance through our Safety Awards scheme.
We are committed to supporting the health and wellbeing of our employees, including
helping them through the challenges of the COVID-19 pandemic. We aim to extend our
behaviour-based model to occupational health issues, such as ergonomics. Many of our
larger sites offer access to medical professionals, health insurance, health check-ups,
fitness programmes and counselling.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: health, safety and wellbeing
155
Musculoskeletal health issues, such as back problems, can also be an indicator of wider
health and wellbeing issues such as workload and stress, and we take a holistic approach to
supporting physical health and mental, emotional, financial and social wellbeing to enable
our employees to lead fuller, more productive lives both at work and at home.
Our Life Saving Rules
1. Work with a valid work permit when required
2. Check equipment is isolated before work begins
3. Obtain a permit for entry into a confined space
4. Use fall protection when working at height
5. Wear a seatbelt in motor vehicles when provided
The Golden Rule: Intervene to stop work if conditions
or behaviour are unsafe.
Our targets
2025 target
Zero recordable cases1
Progress tracker
More work to do
Achieve a lost-time case² rate in the top 20% of industry peers³
More work to do
Define a holistic strategy and roadmap to foster wellbeing at SIG
More work to do
1
2
3
Total recordable cases include lost-time, medical treatment and restricted work cases.
A lost-time case is defined as absence for one or more shifts or loss of one or more working days.
Based on the latest published lost-time cases for companies listed in our industry in the Dow Jones Sustainability Index.
Our progress
In 2022, we achieved global certification to the ISO 45001 standard for health and safety
management for our aseptic carton business, and we made safety an immediate priority for
our new acquisitions. Several sites reached significant safety milestones and six achieved
zero recordable cases – an achievement we aim to extend across our business by 2025.
We have continued to roll out our behaviour-based safety programme and took action to
address the barriers identified through employee observations. We also refined and began
to implement our holistic strategy to support employee health and wellbeing.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: health, safety and wellbeing
156
Safety first for new acquisitions
Safety comes first in everything we do –
including in the integration of new businesses.
When new colleagues joined SIG through the
acquisition of our bag-in-box and spouted
pouch business in 2022, one of the very first
things we did was to communicate and train
them on our Life Saving Rules, the cornerstone
of our health and safety programme.
We are now working to fully integrate newly
acquired operations into our established health
and safety management systems, and we will
begin rolling out our behaviour-based safety
programme at new plants in the coming years.
In addition to focusing on the Life Saving Rules
to help all employees avoid the biggest safety
Riyadh team win Gold Safety Award
Our Riyadh aseptic carton production plant
in Saudi Arabia is the first to win SIG’s new
Gold Safety Award for its excellent safety
performance.
The Riyadh team earned the award by
achieving more than 1,300 safe days and over
4.2 million working hours with zero lost-time
cases, as well as demonstrating a strong focus
on safe behaviour through its Safety First
culture. This milestone could not have been
achieved without every employee at the plant
making safety a priority each and every day.
risks associated with our business, we also
designed and ran workshops for plant leadership
teams to guide them on how they as leaders can
help to strengthen the health and safety culture.
The workshops were so successful with leaders
at our newly acquired plants that we now plan to
roll these out across SIG Group.
“It’s great when successes are recognised
and celebrated. Leadership and support from
management are extremely important to
maintain our safety record, as well as consistent
implementation of the Life Saving Rules and
behaviour-based safety. Our target now is to
remain incident-free for as long as possible.”
Mosharraf Hossain,
Deputy Safety Manager at the Riyadh plant
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: health, safety and wellbeing
157
Performance in 2022
Preventing injuries
• Six of our sites achieved zero recordable cases in 2022, showing that our target of zero
recordable cases is possible. Overall, there were 33 recordable cases in 2022 across our
aseptic carton business (up from 31 in 2021). This included 18 cases leading to lost working
time, six requiring medical treatment and nine resulting in restricted work.
• The lost-time case rate for our aseptic carton business remained low at 0.35 lost-time
cases per 200,000 hours worked in 2022, placing us among the top 50% of industry
peers.1 The rate of severity2 of lost-time cases was 0.433 in 2022 and we maintained our
track record of zero fatalities.
• There were seven recordable cases, all resulting in lost time, among the 867 contractors
working at our aseptic carton production sites this year. The lost-time injury frequency
rate for contractors was 0.67 per 200,000 hours.
• Several of our sites celebrated safety milestones without a lost-time case this year ( so-
called safe manhours), including: 4.5 million hours at our plant in Riyadh (Saudi Arabia)
and at our original production plant in Suzhou (China), 2 million hours at Wittenberg
(Germany), 12 years at the Suzhou assembly plant (China), five years at Neuhausen
(Switzerland) and three years for our field service engineers in China.
• Performance against other leading indicators also stayed strong. We recorded 302 near
misses in 2022 (compared with 314 in 2021) and a frequency rate of 5.9 near misses per
200,000 working hours (compared with 6.1 in 2021). We conducted an in-depth analysis
of near misses at two of our European production sites this year to help us identify ways
to prevent these causing incidents in future.
• We achieved global certification to the ISO 45001 standard for health and safety
management for our aseptic carton production business for the first time in 2022, building
on the existing certification at our plant in Riyadh (Saudi Arabia), which won our Gold
Safety Award this year (see case study on > page 156). All our aseptic carton production
sites completed SEDEX SMETA audits – which include health and safety as one of the
four pillars – in 2021. The next scheduled two-yearly audits in 2023 will also include the
production plants we acquired this year.
• We rolled out our behaviour-based safety programme – which encourages employees
to observe colleagues’ unsafe behaviours and provide feedback to correct them –
at our second site in Suzhou (China) and it is now established at all our aseptic carton
production plants. In 2022, 16% of employees across these plants made and reported
a total of more than 35,000 observations of at-risk behaviours, each of which led to
an average of at least one colleague receiving feedback to prevent unsafe behaviour.
These observations enabled us to remove over 3,200 barriers to safe behaviour this
year – from moving ladders or widening their steps to installing warning alert systems and
additional safety guards on machinery. The wider rollout of our new advanced behaviour-
based safety process, piloted in Linnich (Germany) last year, has been delayed due to
ongoing COVID-19 social distancing as positive feedback based on close observation of
colleagues is a key element.
• The new smart factory model being implemented at both SIG production plants in
Suzhou (China) will help to reduce safety risks by automatically monitoring behaviours,
such as how fast a forklift truck is driven and whether seatbelts are fastened.
• Topics discussed by our employee-management health and safety committees this year
included noise measurements, protective equipment (including head protection and helmets),
ergonomics, COVID-19 control measures and risk assessment of psychological stress.
1
2
Based on the latest published lost-time cases for companies listed in our industry in the Dow Jones Sustainability Index.
Severity rate based on number of days away from work x 1,000 / 1,000,000.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: health, safety and wellbeing
158
• 88% of employees participating in our employee survey3 in 2022 agreed SIG does a good
job of ensuring workers’ health and safety wherever we operate, two points above the
industry benchmark4.
Recordable and lost-time cases across our aseptic carton business
Total recordable cases1
Lost-time cases2
Lost-time case rate
(per 200,000 hours worked)
2015
2016
2017
2018
2019
2020
2021
2022
53
23
51
26
41
16
43
20
39
17
33
13
31
17
33
18
0.55
0.62
0.38
0.49
0.43
0.31
0.33
0.35
Severity rate of lost-time cases3
0.414
0.675
0.934
0.785
0.628
0.204
0.395
0.433
1 Total recordable cases include lost-time, medical treatment and restricted work cases.
2 A lost-time case is defined as absence for one or more shifts or loss of one or more working days.
0% 3%
3 Severity rate based on number of days away from work x 1,000 / 1,000,000.
21%
Recordable injuries across our aseptic carton business by type in 2022 (%)
0% 3%
21%
9%
67%
Hand or finger
Head
Foot or leg
Back/lower back
Other
67%
9%
Hand or finger
Embedding a safety first culture in our new businesses
Head
Foot or leg
Back/lower back
Other
• We are working to fully integrate our newly acquired bag-in-box and spouted pouch
business and chilled carton business into our established health and safety management
systems. We have already begun work to align our incident reporting. Initial indications
show that incident rates at the plants we acquired this year are much higher than for
our aseptic carton business, where our systems are well established. For our bag-in-
box and spouted pouch business in the USA, where the data is most robust, there were
28 recordable cases (including six lost-time cases), the lost-time case rate was 0.56 per
200,000 hours worked and the severity rate of lost-time cases was 0.054 in 2022. We aim
to achieve a step change in performance across our new businesses by implementing our
tried and tested policies and procedures.
In 2022, we communicated and trained new colleagues on our Life Saving Rules (see
> pages 155-156), and we will begin rolling out our behaviour-based safety programme at
newly acquired plants in the coming years. We also designed and ran workshops for plant
leadership teams to guide them on how they as leaders can help to strengthen the health
and safety culture. Launched initially with leaders at our newly acquired plants, we now
plan to roll out these safety leadership workshops across SIG Group.
•
3
4
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Annual Report 2022
The Way Beyond Good
Approach and performance
Responsible culture: health, safety and wellbeing
159
• The chilled carton production plant in Taiwan that we acquired this year has already
achieved ISO 45001 certification and we will work to integrate all our newly acquired
plants into SIG’s ISO 45001 global certification in future. Our newly acquired plants will
also be included in our next scheduled two-yearly SEDEX SMETA audits in 2023.
Promoting health and wellbeing
• Our health rate5 improved slightly to 95.6% in 2022 (from 95.4% in 2021) across our
aseptic carton business. Prevention of COVID-19 transmission through the ongoing
pandemic remained central to our efforts to promote good health this year, with a strong
focus on mask wearing, regular testing and making vaccinations available. Encouraging
people to stay at home if they feel unwell is particularly important as we have found that
most transmissions happen outside of work. In China, where a new wave of COVID-19
led to an extended lockdown, we created a new chat group to share government and
company guidance, provided essential supplies to employees working from home and
offered support to help them better manage the emotional challenges of lockdown.
• We refined our holistic wellbeing strategy to include financial wellbeing in addition to
physical, emotional and social wellbeing. We included questions in our global employee
engagement survey6 to help us define a roadmap of activities to foster wellbeing at SIG:
81% of those surveyed feel they have the flexibility they need to balance their work and
personal responsibilities (one point above the industry benchmark7); 75% said they are
able to finish their work within the agreed working hours most of the time (two points
above the industry benchmark); and 77% agreed that the physical working conditions
(such as facilities, hygiene, ventilation and temperature) at their location are good (on a
par with the industry benchmark).
• We launched a working manifesto to help employees cope with new ways of working
by, for example, blocking time in their calendars to get things done, not checking emails
out of hours, and adding pauses to their working day to think and rest. To reinforce this
message, we changed the default meeting length in our calendar system to 25 minutes
instead of 30, and 50 minutes instead of an hour to empower people to build in pauses
between meetings. We also rolled out a hybrid working model to enhance work–life
balance (see > page 150).
• We introduced Wellbeing Wednesdays on the last Wednesday of each month to host
panel discussions, interviews and other activities designed to raise awareness of mental
health, resilience and work–life balance. Topics covered in 2022 include the working
manifesto, resilience and mindfulness.
• Teams across our regions continued to implement local health and wellbeing initiatives
this year, including: a bike to work campaign and free fitness programmes at a local park
in Linnich (Germany); sports, games and a new canteen designed to foster wellbeing
at Riyadh (Saudi Arabia); rewards for counting steps to promote physical health and
resources to promote emotional wellbeing available to employees and their families
through our More Health for You programme in Brazil; and wellbeing apps to promote
fitness challenges in North America. Several of our sites also ran teambuilding events and
family days to give people a chance to get together informally for fun activities.
5
6
7
Based on a sickness absence rate of 4.4% (sick days per total days worked). Sickness absence and health rates are based on
available data covering more than 90% of employees.
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: communities
160
Responsible culture:
communities
We engage and support our communities
to help them thrive.
Supporting local communities where we operate also helps us strengthen our business by
being a good neighbour and an employer of choice, enhancing our corporate image, and
exploring new models and markets.
Our commitment
We are committed to engaging with local people to understand how we can make a difference
in our communities as part of our wider ambition to deliver positive societal impact.
We contribute through local community engagement programmes, led by our network of
Way Beyond Good Champions with support from employee volunteers. We also channel
support for wider communities through the SIG Way Beyond Good Foundation, which focuses
on projects that strengthen civil society and create positive impact for the environment.
Our targets
2025 target
Increase the impact of community engagement programmes by 50%
(from 2020)
Create self-sustaining, scalable models for the Way Beyond Good
Foundation’s Cartons for Good project
Scale up and expand our community recycling model
Progress tracker
On track
On track
On track
Our progress
In 2022, we increased the overall impact of our community engagement programmes
through global campaigns on Resource+ and Food+, led by our Way Beyond Good
Champions, and local initiatives around the world. We also expanded our community
recycling models to more locations and sought partners to help us create a scaled-up
model for our Cartons for Good programme that turns food loss into nutritious meals for
people in need.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: communities
161
Engaging communities by championing Food+
Teams across our Asia Pacific South region
ran a “Clean Plate Challenge” to demonstrate
how to eat without food waste and we set up
a “Help Yourself” area in the office canteen in
Taiwan to share unwanted food rather than
throwing it away.
Our Way Beyond Good Champions’ global Food+
campaign this year aimed to have a positive
impact on communities, while raising awareness
of SIG’s role in preventing food waste and
delivering nutrition to people around the world.
Employees at our plants in Saalfelden (Austria)
and Rayong (Thailand) prepared meals for local
people in need, and members of our team in
Linnich (Germany) coordinated donations of
food products from SIG and other businesses.
In Brazil, our Way Beyond Good Champions held
a webinar on how food can impact our lives and
quality of life, as well as organising a lunch for 80
waste workers to thank them for their support in
recycling of our products.
Cooking workshops at our sites in Neuhausen
(Switzerland) and Cluj (Romania) brought groups
of employees together to prepare recipes from
leftovers and share ways to tackle food waste.
Performance in 2022
Delivering positive impact through community engagement
• Our Way Beyond Good Champions celebrated their fifth anniversary this year. The
community engagement programmes they led contributed to a total impact score1 of
21,417 through 28 programmes in 2022, up by 25% from 17,096 in 2020. We held a second
global conference for the Champions, joined by our Chief People & Culture Officer, as
well as establishing a new award programme to recognise their efforts in future.
• Local teams used our Way Beyond Good Champions engagement campaigns to support
communities while learning about the featured topics of Food+ (see > page 124 and
box above) and Resource+ (see > page 118). For example, our team in Australia donated
electronic waste to a local charity that repairs and resells the equipment to disadvantaged
members of the community or uses it to train jobseekers. In Mexico, we sponsored the
collection and sale of recyclable materials to raise funds for a centre that supports people
with autism. Teams in Austria and Thailand prepared meals for local people in need as
part of our Food+ campaign (see case study above). Several of our sites also continued
to regularly collect and donate food products to NGOs to support local communities.
1
Impact score is derived through an assessment by the employees and communities involved in our community engagement
projects based on who benefits from the project, the type of impact it has and its potential to contribute to the United Nations
Sustainable Development Goals.
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: communities
162
• To support emergency aid for those affected by the war in Ukraine, SIG matched
donations by employees to UNHCR’s Ukraine emergency response and UNICEF’s life-
saving support for children from Ukraine. Teams around the world also offered their
support for Ukrainian refugees, including collecting donations of clothes, food, hygiene
articles and toys in Germany, preparing and distributing meals to refugees in Poland,
fundraising through sales of a painting by an SIG employee in the USA, and holding an art
exhibition in Romania to raise money for a talented 15-year-old Ukrainian refugee artist
and the Red Cross.
• Other community engagement programmes supported local causes. For example,
our team in the United Arab Emirates donated more than 40 laptops to a local centre
for children with autism, and employees in Mexico built bicycles for donation to a local
children’s organisation at a teambuilding event at the new SIG plant in Querétaro.
• Sites in several countries ran campaigns encouraging employees to give blood to support
local health services, and SIG was awarded the Solidarity Certificate of the German Red
Cross Blood Donation Service.
Contributing through the SIG Way Beyond Good Foundation
• We contributed €235,000 in grants to support the work of the SIG Way Beyond Good
Foundation in 2022.
•
• Building on the experience of our pilot, we are developing plans to scale up Cartons for
Good, the Foundation’s flagship project, to save more food from being lost by turning it
into nutritious meals. We have developed a technical concept and begun discussions with
potential partners who can help us implement it (see > page 125).
In cooperation with the NGO so+ma in Brazil, the SIG Way Beyond Good Foundation is
working to extend our community recycling model to Indonesia in 2023 (see > page 116).
• We directed our annual corporate festive donation, via the SIG Way Beyond Good
Foundation, to a WWF project that will improve learning conditions at a school in an
extremely hot region close to the Marismas Nacionales Biosphere Reserve in Mexico by
installing solar panels to provide electricity to power fans and other equipment.
Community investment (philanthropic activities) by type in 2022
Cash contributions
Time: employee volunteering during paid working hours
In-kind giving: donation of products or services, projects or partnerships
Management overheads
Total
€524,220
€268,306
€44,885
€171,983
€1,009,394
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: governance and ethics
163
Responsible culture:
governance and ethics
We expect everyone working with us
to act with integrity, always.
Integrity is one of our core values. Operating ethically and adopting fair business practices
is fundamental to our responsible culture, essential to comply with applicable laws and
regulations, and critical to protect our reputation and maintain stakeholder trust.
Our commitment
We are committed to acting professionally and with integrity in everything we do, abiding by
the ethical principles set out in the SIG Code of Conduct which include:
• Ethical and legal behaviour
• Fair, courteous and respectful treatment of fellow employees and others with whom we
interact
• Fair and appropriate consideration of the interests of other stakeholders (customers,
business partners, government authorities and the public) as well as of the environment
• Professionalism and good business practice.
The SIG Code of Conduct, approved by the SIG Board of Directors and detailed by policies on
specific topics, sets out our expectations on topics such as anti-bribery and anti-corruption,
avoidance of conflicts of interest, anti-trust and fair business practices, privacy and data
protection, human rights compliance, equal employment opportunity, anti-harassment and
anti-discrimination, and political and charitable activities.
Our zero-tolerance approach to bribery or corruption in any form is included in the SIG
Code of Conduct and our Anti-bribery and Anti-corruption Policy, and reinforced through
training.
All employees are trained on the SIG Code of Conduct as part of their induction when they
join the business and are expected to complete mandatory refresher training every year.
We encourage people to speak up if they have any questions or concerns, without fear
of retaliation, via their line managers, Human Resources teams, global and regional Legal
and Compliance officers, or our confidential Integrity & Compliance Hotline (anonymously
where permitted by local legislation). We are committed to investigating all concerns and
taking appropriate action, including, but not limited to, disciplinary measures.
Our target
2025 target
Progress tracker
Mandatory annual Code of Conduct training for all employees
On track
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: governance and ethics
164
Our progress
In 2022, we rolled out training on the SIG Code of Conduct to the employees we welcomed
through acquisitions during the year. Mandatory annual compliance certification continued
for all employees, as well as additional training for those in high-risk roles, and we raised
awareness of our Integrity & Compliance Hotline to encourage people to speak up if they
have any concerns. We also introduced several new and updated policies that offer further
guidance on key compliance topics, as well as on remaining vigilant on information security.
Training new colleagues on the SIG Code of Conduct
Nearly 2,500 new colleagues joined us this year
through the acquisitions of Scholle IPN and
Evergreen Asia’s chilled carton business. We
made them aware of the SIG Code of Conduct
and the importance of compliance in a joint
welcome letter from SIG’s Chief People &
Culture Officer and Vice President Group Legal &
Compliance.
The SIG Code of Conduct was communicated,
together with policies on anti-bribery and anti-
corruption and other key compliance topics,
through online channels and townhall meetings.
Training began shortly thereafter through in-
person and online live sessions delivered by
Legal and Compliance colleagues with local
teams translating where needed.
By the end of the year, virtually all the employees
who joined us through acquisitions in 2022 had
completed training on the SIG Code of Conduct
and our compliance curriculum.
Performance in 2022
Updating our policies
• As we integrated operations in new countries, we checked that the SIG Code of Conduct
was available in relevant languages and translated it where needed. It is now available in
19 languages.
• We introduced policies offering detailed guidance on the topics of anti-trust and trade
and sanctions compliance. We implemented a revised Anti-bribery and Anti-corruption
Policy – which includes our policies on gifts and entertainment, as well as political and
charitable donations – and we updated our directive on handling of personal data. We
also began rolling out our new Supplier Code of Conduct to new and existing suppliers in
place of the previous SIG Business Ethics Code for Suppliers (see > pages 135-140).
Annual Report 2022 The Way Beyond Good
Approach and performance
Responsible culture: governance and ethics
165
Training our people
• 99%1 of SIG Group employees (including virtually all of those joining us through
integrations this year) completed their annual certification on the SIG Code of Conduct,
which includes topics such as anti-bribery and anti-corruption.
• More than 6,300¹ employees completed additional training on the SIG Code of Conduct.
This training was offered through video and in-person sessions for employees without
regular access to computers at work. We also provided in-depth training for employees in
high-risk roles on topics such as anti-bribery and anti-corruption, anti-trust, data privacy
and anti-harassment.
• We continued to raise awareness on ethics and compliance topics through various
channels, including internal newsletters, emails, local campaigns and posters advertising
our Integrity & Compliance Hotline.
Investigating and acting on concerns
• Concerns reported via our Integrity & Compliance Hotline and other channels in 2022
mainly related to workplace and employment-related matters.
• We investigated all concerns and took disciplinary action, including reprimands and
dismissals, where appropriate.
• No cases of corruption were substantiated in 2022.
Maintaining ethical standards
• All our aseptic carton production sites, our office site in Mexico and several of our legal
entities in Germany and Switzerland completed SEDEX SMETA audits – which include
business ethics as one of the four pillars – in 2021. The next scheduled two-yearly audits
in 2023 will also include the production plants we acquired this year.
Focusing on security
• We achieved certification to the international ISO 27001 standard on information security
management for SIG IT in Germany, China and Romania. We also launched a new security
acceleration programme to further bolster our security posture.
• 99%2 of employees completed security awareness training this year. We reinforced the
training through our internal communications with reminders of how to guard against
cyberattacks, such as vishing (voice phishing), which are on the rise.
1
2
Includes employees joining SIG from Scholle IPN and Evergreen Asia, both acquired in 2022.
Includes employees joining SIG from Scholle IPN, acquired in 2022.
Annual Report 2022 The Way Beyond Good
Performance summary
166
Performance
summary
167 Key performance indicators
170 Progress towards our 2025+ targets
Annual Report 2022 The Way Beyond Good
Performance summary
Key performance indicators
167
Key performance indicators
Here we provide a summary of the key performance indicators we use to measure our
performance on our most material corporate responsibility (CR) issues.
Data assured
In the table below, data for 2021 and 2022 has been assured with limited assurance by
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, except where otherwise
noted. We made great efforts to include as much data as possible from the businesses
acquired in 2022. Due to the ongoing implementation of processes for non-financial
reporting, some of this data is not yet complete and represents our best estimate. Accordingly,
this data has not been assured yet. The footnotes in the data table below clearly indicate
which data includes the new businesses. During 2023, we will continue our efforts to include
the complete data for these KPIs in the next Annual Report. See assurance statement on
> pages 411-413. KPI data was assured in previous years as part of our CR reporting process
(see previous years’ reports for details of assured data and assurance scope). Some data
for previous years has been restated in this report in line with changes to our business to
enable a better understanding of performance trends on a like-for-like basis. See footnotes
for clarification.
Unless otherwise stated, CR data in this report: covers all operations globally that were fully
owned by SIG at the start of 2022, which includes all operations related to our aseptic carton
business (including research and development, sleeve and spout production, filling machine
assembly, technical service and offices); and excludes our new bag-in-box and spouted
pouch business (formerly Scholle IPN) and our new chilled carton business (acquired from
Evergreen Asia) – both acquired mid-way through 2022 – as well as our joint venture in Japan.
The Way
Beyond Good
action area
Climate+
Material
issue
Climate
change
Metric
Total Scope 1 and 2 greenhouse
gas emissions (thousand tonnes
CO₂ equivalent)1
Total Scope 1 and 2 green-
house gas emissions for
SIG Group² (thousand tonnes
CO₂ equivalent)³
Total Scope 3 greenhouse
gas emissions (million tonnes
CO₂ equivalent)
Total Scope 3 greenhouse
gas emissions for SIG Group²
( million tonnes CO₂ equivalent)³
Scope 1 and 2 and most
material Scope 3⁵ green-
house gas emissions
(grams CO₂ equivalent/
litre of food packed)
Scope 1, 2 and 3 greenhouse
gas emissions for SIG Group²
(grams CO₂ equivalent/
litre of food packed)³
2016
113.1
2017
67.1
2018
66.9
2019
62.3
2020
53.9
2021
29.8
2022
25.1
-
-
-
-
96.8⁴
72.3⁴
75.4⁴
1.5
1.5
1.5
1.6
1.5
1.6
1.6
-
-
-
-
1.9⁴
1.9⁴
1.9⁴
99
92
93
90
81
79
79
-
-
-
-
73⁴
70⁴
70⁴
Annual Report 2022 The Way Beyond Good
Performance summary
Key performance indicators
168
The Way
Beyond Good
action area
Climate+
Material
issue
Climate
change
Forest+
Bio diversity
and forest
ecosystems
Resource+⁷ Waste
management
and circular
economy
Food+
Product
safety and
integrity
Access to
nutrition and
hydration⁹
Metric
Scope 1 greenhouse gas
emissions for our aseptic carton
production⁶ (thousand tonnes
CO₂ equivalent)
Scope 2 greenhouse gas
emissions for our aseptic
carton production (market
based) (thousand tonnes
CO₂ equivalent)
Scope 1 and 2 greenhouse
gas emissions intensity for our
aseptic carton production⁶
(tonnes CO₂ equivalent/million
m² of sleeves produced)
Energy used for our aseptic
carton production from
renewable sources (power
purchase agreements or
certified guarantees of origin)
or compensated using Gold
Standard CO₂ offset (%)
Operational energy use for
our aseptic carton production
(GWh)
Energy intensity for our aseptic
carton production⁶ (MWh/
million m² of sleeves produced)
SIG aseptic carton packs sold
labelled with FSC™ logo (%)
SIG aseptic carton packaging
portfolio that is recyclable⁸ (%)
Waste rate for aseptic carton
production⁶ (grams of waste per
m² of packaging material)
Significant product and service
categories in our aseptic carton
business for which health and
safety impacts are assessed for
improvement (%)
Non-compliance concerning
the health and safety impacts
of products and services in
our aseptic carton business
( number of incidents)
Nutritious food and beverage
products10 brought to
consumers in SIG aseptic
and chilled carton packs
(billion litres)⁴
2016
29.1
2017
38.5
2018
34.4
2019
34.5
2020
31.1
2021
29.8
2022
25.1
84.0
28.6
32.5
27.9
22.9
0
0
68
42
40
35
17
15
12
22.6
58.4
100
100
100
100
100
335
363
386
386
383
402
388
194
216
223
210
201
197
183
56
80
93
96
97
98
99
100
100
100
100
100
100
100
35
37
35
33
32
34
32
100
100
100
100
100
100
100
0
-
0
-
0
-
0
0
0
0
-
11.24,11
11.84,11
12.14,11
Sustainable
innovation
Innovation in
products and
services
Food packed in SIG aseptic
carton packs with SIGNATURE
portfolio packaging materials
(million litres)
199.7⁴
198.8⁴
227.3⁴
334.8⁴
457.2⁴
540.9³,⁴
611.6
Food packed in SIG aseptic
carton packs with SIGNATURE
portfolio packaging materials
(% of total litres packed in
SIG packs)
SIG aseptic carton packs
sold labelled with ASI logo
( million packs)
1.5⁴
1.5⁴
1.7⁴
2.3⁴
3.1⁴
3.5³,⁴
3.4
-
-
-
3.4⁴
80.0⁴
577.0
1,383.7
Annual Report 2022 The Way Beyond Good
Performance summary
Key performance indicators
169
The Way
Beyond Good
action area
Material
issue
Sustainable
innovation
Innovation in
products and
services
Responsible culture
Supply chain Responsible
suppliers
Metric
2016
2017
2018
2019
2020
2021
2022
Impact mitigation potential of
innovations related to current
standard product (polymer
savings from RS structure
versus standard SIG aseptic
carton pack per year, tonnes)
New suppliers screened using
social responsibility criteria
(% of significant suppliers12)
-
750
4,850
6,500
7,800
9,803
10,981
100
100
100
100
100
100
100
Sustainable
raw materials
A-materials13 from certified
sources (% by volume)
53⁴
63⁴
64⁴
63⁴
62⁴
70
74
Human
rights
Human
rights14
Our people
Diversity,
equity and
inclusion
Employee
satisfaction,
development
and working
environment
Plants that have completed a
SEDEX Members Ethical Trade
Audit (of total number of plants)
Women in leadership positions
Sustainable engagement score
(% favourable responses)
Training and development
investment (average training
hours/employee)
Health,
safety and
wellbeing
Health,
safety and
wellbeing19
Total recordable cases20
Lost-time cases21
Lost-time case rate
(per 200,000 hours worked)
7 of 7
7 of 7
8 of 8
8 of 8
8 of 915
9 of 915
8 of 816
-
74
-
-
-
17%⁴
18%⁴
20%
23%17
78
-
87
-
8318
29.0
25.1
23.4
24.3
19.4
20.5
20.917
51⁴
26
41⁴
16
43⁴
20
39⁴
17
33⁴
13
31⁴
17
33
18
0.62
0.38
0.49
0.43
0.31
0.33
0.35
1
We have invested in Gold Standard CO₂ offset for our Scope 1 emissions to achieve carbon neutral production for all our plants fully owned since 2018
(including our former joint venture in the Middle East and Africa region from 2021).
2
Includes our bag-in-box and spouted pouch business and our chilled carton business – both acquired in 2022.
3 Data for previous years adjusted in line with restatement policy and methodologies, and revised scope of reporting resulting from changes to the business where applicable.
4 Not assured.
5
Includes most material Scope 3 categories only: goods and services, use of our products (filling machines) and end-of-life treatment (cartons).
6 Aseptic carton sleeves production plants only. Includes semi-finished products. Excludes SIG closures plant in Switzerland.
7 A KPI for the newly identified material issue of water is in development.
8 Our evaluation of recyclability is based on the relevant EN643 standard.
9 Additional strategic topic for our Way Beyond Good Food+ action area (not a material issue).
10 Defined by the independent Health Star Rating System as food and drinks that contribute to a balanced diet and lead to better health.
11 Includes volumes filled in chilled cartons by the business acquired from Evergreen Asia in 2022 (data from previous years restated to include Evergreen Asia).
12 Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers that are managed separately) –
based on their potential to affect our ability to meet customer needs, the high volumes we purchase from them, or sustainability risks identified in the supply chain.
13 A-materials are those that go directly into SIG aseptic carton packs – paperboard, polymers, aluminium foil and ink.
14 Includes freedom of association, freely chosen labour, living standards and protection of the child.
15 The Australia production site acquired in 2020 completed its first SEDEX audit in 2021 as part of our two-yearly audit cycle. The site ceased production in mid-2021.
16 All our aseptic carton production sites completed SEDEX SMETA audits in 2021. The next scheduled two-yearly audits in 2023 will also include the production plants we
acquired this year.
17 Includes employees joining SIG in the chilled carton business acquired from Evergreen Asia in 2022. Excludes employees joining SIG in the bag-in-box and spouted pouch
business acquired from Scholle IPN.
18 Includes employees joining us from Scholle IPN and Evergreen Asia in 2022.
19 Data on health, safety and wellbeing in this table is for our aseptic carton business only. We report these indicators separately for our bag-in-box and spouted pouch
business and our chilled carton business – both acquired in 2022.
20 Total recordable cases include medical treatment and restricted work cases as well as lost-time cases.
21 A lost-time case is defined as absence for one or more shifts or loss of one or more working days.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
170
Progress towards our 2025+ targets
Climate+
Material
issue
Climate
change
2025 target
Progress tracker
2022 performance
Net Zero value chain
greenhouse gas emissions
by 20501
Reduce Scope 1 and 2
greenhouse gas emissions
by 50% by 2025 and by 60%
by 2030 (from 2016)
Reduce Scope 1 and 2
greenhouse gas emissions by
42% by 2030 – and by 90%
by 2050 (from 2020)1
Reduce Scope 1, 2 and 3²
greenhouse gas emissions by
25% per litre of food packed
by 2030 (from 2016)
Reduce Scope 1, 2 and 3
greenhouse gas emissions by
52% per litre packed by 2030
(from 2020)1
Reduce Scope 3 greenhouse
gas emissions by 97% per litre
packed by 2050 (from 2020)1
Maintain 100% renewable
energy and Gold Standard CO₂
offset for all non-renewable
energy (at production plants)
Expand use of on-site solar
power to meet at least 10%
of our global electricity use
as part of overall renewable
power purchase agreements
(PPAs) to meet 25% of our
global electricity use
Transition to 100%
bioethanol or other bio-
materials for printing
Reduce CO₂ emissions from
inbound and outbound logistics
by 25% (from 2016)
New target
On track
New target
On track
New target
New target
On track
On track
We have committed to achieving Net Zero greenhouse gas emissions
across our value chain by 2050, and we have developed a series of
workstreams designed to meet our science-based targets and help
us on our path to Net Zero by delivering greenhouse gas emissions
reductions across the value chain and beyond.
We have cut Scope 1 and 2 emissions from our aseptic carton business
by 78% from the 2016 baseline of our science-based target, putting us
on track to meet our 2030 target of 60%.
We cut our total Scope 1 and 2 emissions by 22% from the 2020
baseline for this new and expanded target for SIG Group1, which will
replace our current science-based target (above) once approved by
the SBTi.
Since 2016, we have reduced Scope 1 and 2 emissions and our most
significant Scope 3 emissions² from our aseptic carton business by 20%
from the 2016 baseline for our science-based target.
SIG Group’s Scope 1, 2 and 3 emissions per litre packed have decreased
slightly from 2020 to 2022. Through our Net Zero workstreams, we aim
to drive progress towards this new target, which will replace our current
value chain target (above) once approved by the SBTi.
SIG Group’s total Scope 3 emissions remained at a steady level from
2020 to 2022. We aim to drive progress towards this new target through
our Net Zero workstreams.
We have maintained carbon neutral production for our aseptic carton
packs with 100% renewable electricity and Gold Standard CO₂ offset
for all non-renewable energy at production plants.
In 2022, on-site solar power met 2.6% of our global electricity use for
aseptic carton production – and overall PPAs met 12% including our off-
site PPA in Germany. More on-site solar is in development at our sites in
Germany, Mexico and Saudi Arabia, and we have secured enough PPAs
(on- and off-site) to power 100% of our aseptic carton production in
Germany from January 2023.
On track
Seven of our eight aseptic carton production plants have already moved
from fossil-based solvents to plant-based bioethanol for our printing
processes and we are continuing to explore how to extend the switch
to renewable alternatives worldwide.
More work to do
CO₂ emissions from our inbound and outbound logistics have increased
by 7% from 2016.
1
2
Includes our new bag-in-box, spouted pouch and chilled carton businesses, which joined SIG Group through the acquisitions of Scholle IPN and Evergreen Asia in 2022.
Includes Scope 3 emissions from our supply chain, use of our filling machines and recycling or disposal of our cartons.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
171
Forest+
Material
issue
Biodiversity
and forest
ecosystems
2025 target
Progress tracker
2022 performance
Partner to create, restore,
protect or improve
management of at least
650,000 additional hectares
of forest beyond what we
need to make our products
by 20301
Establish a partnership
with Brainforest, an NGO,
to contribute to restoring
or creating resilient and
sustainable forests by 2025
Partner with an NGO to
develop a methodology to
measure the impact of FSC™
certification by 2025
On track
Completed
More work to do
We launched a five-year partnership with WWF Switzerland to directly
invest in projects designed to protect, restore or improve thousands
of hectares of forests, starting with a project in Mexico that aims to
improve forest management of 100,000 hectares and restore a further
750 hectares of forest to secure critical habitat for jaguars. We began
engaging with customers and suppliers to identify opportunities to
partner on joint forest projects. We also joined WWF’s Forests Forward
programme, publicly committing to a series of actions designed to scale
up our impact (see > page 108).
In addition to the WWF partnership above, we also began working
in partnership with Brainforest – a Swiss for-impact venture studio
for forests and climate, co-founded by WWF Switzerland and made
possible by the Migros Pioneer Fund – and its venture Xilva AG
to identify potential joint forest projects we could undertake with
customers and suppliers.
We worked with the Institute for Energy and Environmental Research
(IFEU) to refine our approach, and agreed a plan to help us develop a
methodology to measure the impact of sourcing FSC™-certified raw
materials using life-cycle assessment techniques focusing on carbon
and biodiversity.
Work with customers to include
the FSC™ label on 100% of
the packs we sell, closing the
remaining 3% gap by 2025
Maintain 100% FSC™-certified
supply of liquid packaging
board for our packs
On track
On track
99% of the packs we sold in 2022 carried the FSC™ label (up from 98%
in 2021). To close the remaining gap, we are encouraging our customers
to include the FSC™ label on all pack décors for new products and on
existing products when décors are changed.
We continued to purchase 100% of the liquid packaging board for
our aseptic cartons with FSC™ certification – first achieved in January
2021 – and remained the only aseptic carton producer to achieve this.
1 Target wording amended for clarity.
Resource+
Material
issue1
2025 target
Progress tracker
2022 performance
Waste and
circular
economy
Launch a full barrier carton
linked to 100% renewable
materials
On track
2022 performance is reported later in this table under Sustainable
innovation on > page 172.
Further reduce the amount
of non-fibre materials in our
carton packs to increase the
share of renewable materials
and to enable SIG cartons
to go into paper recycling
streams where relevant
by 2030
Partner with stakeholders to
implement dedicated and
country-specific roadmaps to
support increased collection
and recycling of beverage
cartons
New target
On track
We have roadmaps in place for 25 priority countries across our
regions, and we continued to work with industry partners, governments,
municipalities, customers and communities to implement country-
specific programmes to support increased collection and recycling –
including innovative tech-based solutions in Egypt that monitor ethical
working conditions for waste pickers, the expansion of our social model
for collection in Brazil and Indonesia, new recycling facilities in Australia
and another planned in Brazil, and consumer awareness and collection
programmes in a range of other countries. In Europe, we focused our
efforts on influencing policy and legislative developments that enable
more collection of used packaging via legislation.
25% reduction in grams of
waste per m² of packaging
material (from 2016)
More work to do
Our waste rate from production of our aseptic carton packs decreased
by 6% from 2016.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
172
Material
issue1
2025 target
Progress tracker
2022 performance
Zero landfill – all waste
to be recycled or used as
renewable biofuel
Maintain certification to
ISO 14001:2015 at all
production plants
More work to do
In 2022, 91.6% of waste from production of our aseptic carton packs
was reused or recycled, 1.5% was recovered for energy and only around
0.2% went to landfill. We have achieved zero waste to landfill at six of
our aseptic carton production plants in China, Europe and Saudi Arabia.
On track
We maintained our global ISO 14001 certification for our aseptic carton
business – and began work to extend it to newly acquired sites in 2023.
1 A target, and accompanying KPI, for the newly identified material issue of water is in development.
Food+
Material
issue
2025 target
Progress tracker
2022 performance
Product
safety and
integrity
Maintain certification
to ISO 9001:2015 at all
production plants
Maintain BRCGS AA Grade
certification at all sleeve and
spout production plants
Access to
nutrition
and
hydration1
Use SIG’s position within
a more sustainable food
supply system to create
demonstrable positive
impacts on nutrition and
hydration
Increase the total volume
of nutritious2 food and
beverage products brought
to consumers in SIG packs by
50% by 2030 (from 2020)
Support two start-ups per year
through our SIGCUBATOR
programme to share unused
aseptic filling capacity to
deliver nutritious food safely
and efficiently
On track
On track
On track
On track
On track
We maintained global certification to the ISO 9001:2015 quality
management standard for our aseptic carton business and ran an
online training programme for employees in relevant roles on how we
implement the requirements.
All our sleeve and spout production plants for our aseptic carton
business have achieved AA Grade certification to the Brand Reputation
Compliance Global Standards (BRCGS) packaging standard (Issue 6).
We continued our partnership with Forum for the Future to better
understand SIG’s role in the food value chain, and to define activities
and indicators to progress our Food+ strategy. We also began
exploring how to integrate our newly acquired bag-in-box and spouted
pouch solutions into this strategy to harness their potential to further
increase the amount of nutritious food we help customers deliver.
Our aseptic and chilled beverage cartons enabled customers to
bring 12.1 billion litres of nutritious food and beverage products to
consumers in 2022, up 8% from the 2020 baseline.³
Two more start-ups joined our SIGCUBATOR programme to gain advice,
consumer insights and access to our filling machines to pack nutritious
new plant-based products on a small scale. More start-ups have also
been selected for support through the SIGCUBATOR programme.
1 Additional strategic topic (not a material issue).
2 Different types of product are categorised according to their nutritional profile based on the independent Health Star Rating System.
3
Includes the chilled carton business we acquired from Evergreen in 2022.
Sustainable innovation
Material
issue
Innovation
in products
and
services
2025 target
Progress tracker
2022 performance
Launch a full barrier carton
linked to 100% renewable
materials
On track
Further reduce the amount
of non-fibre materials in our
carton packs to increase the
share of renewable materials
and enable SIG cartons to go
into paper recycling streams
where relevant by 2030
New target
SIGNATURE EVO, launched in early 2022, is the world’s first full barrier
solution for aseptic carton packs with no aluminium layer that can be
used with oxygen-sensitive products, such as juices, as well as liquid
dairy. This aluminium-free1 solution provides comparable barrier
properties to our standard aseptic carton solutions that include a layer
of aluminium foil. We plan to launch a SIGNATURE EVO 100 version of
this aluminium-free1 full barrier carton in future with all materials 100%
linked to forest-based renewable sources via an independently certified
mass balance system.
SIG carton packs already contain 75% wood-based fibre on average,
sometimes more, and we want to increase this even further as the fibres
yield a high value that contributes to the circular economy. In addition to
a continued focus on our target to partner with stakeholders to support
increased collection and recycling of beverage cartons (see our 2022
performance earlier in this table on > page 171), we have set this new
target to enable our cartons to also be widely recycled in regions where
only paper recycling streams are available.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
173
Material
issue
2025 target
Progress tracker
2022 performance
Reduce energy use by 20%,
hydrogen peroxide use by
35% and water use by 25%
per hour of runtime in our
next-generation filling machine
for mid-size format packs
(by 2022)2
Reduce use of consumables
by 25% for the next-generation
filling machine for small
format packs
Timeline extended
We launched our next-generation filling machine, SIG NEO, in late 2021.
It is designed to reduce use of energy, hydrogen peroxide and water.
Field testing to confirm whether we have met our reduction targets has
been delayed and we now expect to be able to report results in 2024.
More work to do
Development of our next-generation filling machine for small format
packs has been delayed. We plan to conduct a study on market
requirements in 2023, building on field tests of our mid-size SIG NEO
filling machine.
1 With no aluminium layer.
2 Target date extended to 2024 due to further delays in field testing that is required to confirm whether the target has been met.
Responsible culture
Our supply chain
2025 target
Progress tracker
2022 performance
Material
issue
Responsible
suppliers
Sustainable
raw
materials
Ensure 100% of significant
suppliers1 accept our Supplier
Code of Conduct or Business
Ethics Code for Suppliers or
have an equivalent code in
place²
Audit 50% of high-risk
significant suppliers each year
Provide regular training (at
least every two years) on
ethical supplier standards
and sustainable sourcing to
all employees who interact
frequently with suppliers
100% A-materials³ from
certified sources
On track
On track
On track
74% of all active significant suppliers (up from 61% in 2021) have
accepted our new Supplier Code of Conduct (launched in 2022) or the
existing SIG Business Ethics Code for Suppliers or have an equivalent
code in place, and we continue to engage with those due to be
reassessed or currently under review to bring this up to 100%.
No significant suppliers were identified as high-risk in 2021. We
identified six high-risk suppliers in 2022 and will audit 50% of these in
2023.
In 2021, we trained all our global, regional and local procurement
teams in our aseptic carton business to introduce them to the updated
Responsible Sourcing Directive and test their knowledge on key topics.
The next round of training is planned for 2023.
More work to do
We increased the proportion of A-materials from certified sources to
74% (by volume) in 2022 by securing more ASI-certified aluminium
and increasing sales of solutions in our SIGNATURE portfolio that are
linked to renewable polymers⁴ certified to ISCC PLUS (or in some cases
REDcert²).
2022 performance is reported earlier in this table under Forest+
on > page 171.
2022 performance is reported earlier in this table under Climate+
on > page 170.
Maintain 100% FSC™-certified
supply of liquid packaging
board for our packs
Transition to 100% bioethanol
or other bio-materials for
printing
On track
On track
1
Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers that are managed separately) –
based on their potential to affect our ability to meet customer needs, the high volumes we purchase from them, or sustainability risks identified in the supply chain.
2 Target wording changed to include new Supplier Code of Conduct, which we began rolling out in 2022.
3 A-materials are those that go directly into our aseptic carton packs – paperboard, polymers, aluminium foil, ink and solvents.
4 Via an independently certified mass balance system.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
174
Human rights
Material
issue
Human
rights1
2025 target
Progress tracker
2022 performance
We completed an assessment of our operations (including the
businesses we acquired in 2022) and the supply chain for our aseptic
carton business to identify any changes required to our human rights
due diligence policies and processes to ensure compliance with
forthcoming regulatory requirements on this topic. Based on this
assessment, we have developed a roadmap to implement the required
changes in our operations and supply chain over the next two years.
All our aseptic carton production sites completed SEDEX SMETA
audits – which include an assessment of potential human rights risks
and impacts as part of the labour pillar – in 2021. The next scheduled
two-yearly audits in 2023 will also include the production plants we
acquired this year.
2022 performance is reported earlier in this table under Our supply
chain on > page 173.
Advance our human rights
risk identification and
assessment processes in our
own operations and supply
chain to define salient human
rights issues
Conduct assessments of
potential human rights risks
and impacts in 50% of our own
plants every two years
Maintain SEDEX Members
Ethical Trade Audit (SMETA)
at all production sites
Ensure 100% of significant2
suppliers accept our Supplier
Code of Conduct or Business
Ethics Code for Suppliers or
have an equivalent code in
place3
Audit 50% of high-risk
significant suppliers each year
Provide regular training
(at least every two years) on
ethical supplier standards
and sustainable sourcing to
all employees who interact
frequently with suppliers
On track
On track
On track
On track
On track
On track
1
2
Includes freedom of association, freely chosen labour, living standards and protection of the child.
Significant suppliers are those considered most significant to our aseptic carton business (excluding Global Assembly suppliers that are managed separately) – based on
their potential to affect our ability to meet customer needs, the high volumes we purchase from them, or sustainability risks identified in the supply chain.
3 Target wording changed to include new Supplier Code of Conduct, which we began rolling out in 2022.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
175
Our people
Material
issue
Diversity,
equity and
inclusion
Employee
satisfaction,
development
and working
environment
2025 target
Progress tracker
2022 performance
Increase percentage of women
in leadership positions to 30%
On track
We welcomed two more women to our Group Executive Board (GEB),
bringing the total to three female members, making up a third of the
GEB. Overall, women represented 23%1 of our leaders in 2022, up from
20% last year, and we remain on track with our roadmap to achieve our
target to increase women in leadership to 30% by 2025.
Maintain survey score linked to
inclusive environment above
industry benchmark²
Sustain our training and
development investment
above industry benchmark
Ensure 100% of key
talent (current and future
business leaders for critical
positions) have a defined
development plan
Achieve engagement level
above industry benchmark²
Increase % of employees who
feel we have responded to
their feedback based on the
last survey
On track
We achieved a score of 83%³ for diversity, equity and inclusion in our
2022 employee survey, six points above the industry benchmark.
More work to do
We provided an average of 20.91 hours of training per employee in
2022, up slightly from 20.5 hours last year, but still falling short of the
pre-pandemic industry benchmark of 24.0 hours.
Discontinued
We have discontinued our target on development plans for key talent.
Instead, we will focus on wider talent development activities for
employees across the business.
More work to do
More work to do
Despite a period of significant change in the business (with two major
acquisitions this year), our overall engagement score remained strong at
83%³, just one point below the industry benchmark.
In our 2022 survey, 60%⁴ of employees felt that significant actions
have been taken to address priorities identified through the previous
employee survey, compared with 61% in 2020. We have a clear
roadmap in place for our leaders and employees to discuss survey
results, define and implement actions, and communicate progress on
an ongoing basis to demonstrate more clearly how we are responding to
feedback from the survey.
58%³ of employees participating in our latest biennial survey in 2022
felt that SIG makes adequate use of recognition and rewards other than
money to encourage good performance, six points below the industry
benchmark². We have continued to extend non-monetary recognition
programmes this year.
Increase % of employees who
feel SIG makes adequate use
of recognition and reward
other than money
More work to do
1
2
3
4
Includes employees joining SIG from Evergreen Asia.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee engagement survey.
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Excludes employees from parts of the business that were not included in our previous survey: the Middle East and Africa region, which SIG took full ownership of in 2021,
and Scholle IPN and Evergreen Asia, which both joined SIG in 2022.
Health, safety and wellbeing
Material
issue
Health,
safety and
wellbeing
2025 target
Progress tracker
2022 performance
Zero recordable cases1
Achieve a lost-time case²
rate in the top 20% of
industry peers³
Define a holistic strategy and
roadmap to foster wellbeing
at SIG
More work to do
More work to do
More work to do
There were 33 recordable cases across our aseptic carton business
in 2022 (up from 31 in 2021). We continued to embed our behaviour-
based safety programme to target unsafe behaviours across the
business. We also began work to integrate our newly acquired
businesses into our Group health and safety systems and reporting.
The lost-time case rate across our aseptic carton business remained
low at 0.35 lost-time cases per 200,000 hours worked in 2022, placing
us among the top 50% of industry peers.
We refined and began to implement our holistic wellbeing strategy, and
included questions on wellbeing in our global employee engagement
survey to help us define a roadmap of activities to foster wellbeing
at SIG.
1 Total recordable cases include lost-time, medical treatment and restricted work cases.
2 A lost-time case is defined as absence for one or more shifts or loss of one or more working days.
3 Based on the latest published lost-time cases for companies listed in our industry in the Dow Jones Sustainability Index.
Annual Report 2022 The Way Beyond Good
Performance summary
Progress towards our 2025+ targets
176
Communities
Material
issue
Thriving
communities1
2025 target
Progress tracker
2022 performance
Increase the impact of
community engagement
programmes by 50%
(from 2020)
Create self-sustaining,
scalable models for the Way
Beyond Good Foundation’s
Cartons for Good project
On track
On track
Scale up and expand our
community recycling model
On track
We increased the overall impact of our community engagement
programmes through global campaigns on Resource+ and Food+,
led by our Way Beyond Good Champions, and local initiatives around
the world. Overall, we achieved an impact score of 21,417 through
28 community engagement programmes in 2022, up by 25% from
the 2020 baseline of 17,096.
Building on the experience of the pilot project, we are developing
plans to scale up Cartons for Good to save more food from being
lost by turning it into nutritious meals. We have developed a technical
concept and begun discussions with potential partners who can help us
implement it.
We introduced new recycling programmes that support communities
and waste workers in Egypt. We also continued to expand our
community recycling partnership with so+ma in Brazil and, through the
SIG Way Beyond Good Foundation, developed a similar community
recycling model for launch in Indonesia in 2023.
1
Additional strategic topic (not a material issue).
Governance and ethics
Material
issue
Fair
business
practices1
2025 target
Progress tracker
2022 performance
Mandatory annual Code
of Conduct training for all
employees
On track
99%2 of SIG Group employees (including virtually all of those joining us
through integrations this year) completed their annual certification on
the SIG Code of Conduct.
1 Additional strategic topic (not a material issue).
2
Includes employees joining SIG from Scholle IPN and Evergreen Asia.
Annual Report 2022 177
Governance
178 Board of Directors
181 Group Executive Board
184 Corporate Governance Report
1. Group structure and shareholders
2. Capital structure
3. Board of Directors
4. Committees
5.
Frequency of meetings of the
Board of Directors and its Committees
6. Areas of responsibility
7.
Information and control instruments
vis-à-vis the Group Executive Board
8. Group Executive Board
9. Compensation, shareholdings and loans
10. Shareholders’ rights of participation
11. Change of control and defence measures
12. Auditors
13. Information policy
14. General blackout periods
Annual Report 2022 Governance
Board of Directors
178
Board of Directors
Andreas Umbach
Chair of the Board,
Nomination and Govern. Com. Chair
Matthias Währen
Audit and Risk Committee Chair
> Read the CV
> Read the CV
Colleen Goggins
Compensation Committee Chair
Werner Bauer
Audit and Risk Committee Member,
Nomination and Govern. Com. Member
> Read the CV
> Read the CV
Annual Report 2022 Governance
Board of Directors
179
Board of Directors
Wah-Hui Chu
Compensation Committee Member,
Nomination and Govern. Com. Member
Mariel Hoch
Audit and Risk Committee Member,
Compensation Committee Member
> Read the CV
> Read the CV
Abdallah al Obeikan
> Read the CV
Martine Snels
Audit and Risk Committee Member,
Nomination and Govern. Com. Member
> Read the CV
Annual Report 2022 Governance
Board of Directors
180
Board of Directors
Laurens Last
> Read the CV
Annual Report 2022 Governance
Group Executive Board
181
Group Executive Board
Samuel Sigrist
Chief Executive Officer
> Read the CV
Frank Herzog¹
Chief Financial Officer
> Read the CV
Ian Wood
Chief Supply Chain Officer
> Read the CV
Suzanne Verzijden
Chief People and Culture Officer
> Read the CV
1
Frank Herzog was the CFO until 31 December 2022, when he left the Group.
Annual Report 2022 Governance
Group Executive Board
182
Group Executive Board
José Matthijsse
President and General Manager,
Europe
Fan Lidong
President and General Manager,
Asia Pacific North
> Read the CV
> Read the CV
Angela Lu
President and General Manager,
Asia Pacific South
Ricardo Rodriguez
President and General Manager,
Americas
> Read the CV
> Read the CV
Annual Report 2022 Governance
Group Executive Board
183
Group Executive Board
Abdelghany Eladib
President and General Manager,
MEA
> Read the CV
Ross Bushnell
President, Scholle IPN,
a SIG Company
> Read the CV
Annual Report 2022 Governance
Corporate Governance Report
184
Corporate Governance Report
This Corporate Governance Report contains the
information that is stipulated by the directive on
information relating to corporate governance issued
by SIX Swiss Exchange AG (“SIX Swiss Exchange”)
and follows its structure.
Unless expressly stated otherwise, this Corporate Governance Report presents the
circumstances and legal position as of the balance sheet date (31 December 2022). References
to legal provisions are, therefore, references to the law applicable as of 31 December 2022.
On 1 January 2023, the Swiss Corporate Law Reform (Aktienrechtsreform) came into force,
which has an impact on some of the legal provisions and descriptions of the law cited in this
Corporate Governance Report. Among other changes, the Ordinance against Excessive
Compensation in Listed Stock Corporations (VegüV) was repealed as of 1 January 2023 and
its provisions were transferred to the Swiss Code of Obligations with certain amendments.
Articles of association and organisational regulations that do not comply with the revised
provisions must be adapted to the revised provisions within a transitional period of two years
from the entry into force of the Swiss Corporate Law Reform (Aktienrechtsreform), ie. by
1 January 2025.
1.
Group structure and shareholders
1.1
Group structure
SIG Group AG (formerly SIG Combibloc Group AG), Neuhausen am Rheinfall (the
“Company”), is the parent company of SIG Group1, which directly or indirectly holds
all other Group companies and interests in joint venture companies. The shares of the
Company are listed on SIX Swiss Exchange (symbol: SIGN, valor symbol: 43 537 795,
ISIN: CH0435377954). The market capitalisation of the Company amounted to
CHF 7,722 million as of 31 December 2022.
Please see note 26 of the consolidated financial statements for the year ended
31 December 2022 for a comprehensive list of the Group’s subsidiaries and its joint venture
company. Except for the Company, the Group does not include any listed companies.
The Group has effective oversight and efficient management structures at all levels. The
operational Group structure as of 31 December 2022 is as follows:
The Company’s board of directors (“Board of Directors” or “Board”), acting collectively,
has ultimate responsibility for the conduct of business of the Company and for delivering
sustainable shareholder and stakeholder value. The Board sets the Company’s strategic
aims, ensures that the necessary financial and human resources are in place to meet the
Company’s objectives, and supervises and controls the management of the Company.
1 References to “SIG Group”, “Group” or “we” are to the Company and its consolidated subsidiaries.
Annual Report 2022 Governance
Corporate Governance Report
185
There are three permanent Board committees: an audit and risk committee (“Audit and Risk
Committee”), a compensation committee (“Compensation Committee”), and a nomination
and governance committee (“Nomination and Governance Committee”; collectively
“Committees”).
In accordance with, and subject to, Swiss law, the Company’s articles of association
(“Articles of Association”) and the Company’s organisational regulations (“Organisational
Regulations”), the Board of Directors has delegated the executive management of the
Company’s business (Geschäftsleitung) to the Group Executive Board (“Group Executive
Board”), which is headed by the chief executive officer (“Chief Executive Officer” or
“CEO”) pursuant to the Organisational Regulations.2 The Group Executive Board comprises
ten members, specifically the CEO, the chief financial officer (“Chief Financial Officer”
or “CFO”), the chief technology officer (“Chief Technology Officer” or “CTO”), the chief
people and culture officer (“Chief People and Culture Officer” or “CPCO”), the president
and general manager of Europe (“President and General Manager Europe”), the president
and general manager of Asia Pacific North (“President and General Manager Asia
Pacific North”), the president and general manager of Asia Pacific South (“President and
General Manager Asia Pacific South”), the president and general manager of Americas
(“President and General Manager Americas”), the president and general manager of Middle
East and Africa (“President and General Manager MEA”) and the president of Scholle IPN
(“President Scholle IPN”). For further information on the Group’s segments, please refer to
note 7 of the consolidated financial statements for the year ended 31 December 2022. The
Group Executive Board is directly supervised by the Board of Directors and its Committees.
1.2
Significant shareholders
According to the disclosure notifications reported to the Company during 2022 and
published by the Company via the electronic publishing platform of SIX Swiss Exchange,
the following shareholders had holdings of 3% or more of the voting rights of the Company
as of 31 December 20223:
Significant shareholders
% of voting rights1
Number of shares2
Haldor Foundation³
Laurens Last⁴
Fahad al Obeikan⁵
9.95%
9.1897%
4.9976%
31,849,994
35,129,733
17,417,632
BlackRock, Inc. (mother company)
3.57% / 0.01%
11,434,168⁶ / 45,468
UBS Fund Management (Switzerland) AG
Swisscanto Fondsleitung AG
3.18%
3.1255%
10,176,211
10,549,237
1 According to SIX: https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html/
2 According to SIX: https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html/
3 Direct shareholder: Winder Investment Pte Ltd.
4 Direct shareholder: Clean Holding B.V. (formerly CLIL Holding B.V.).
5 Direct shareholder: Al Obeikan Group for Investment Company CJS.
6
Of which the following voting rights were delegated by a third party and can be exercised at BlackRock, Inc.’s own discretion:
627,144 company shares.
2
3
For a comprehensive description of the delegation please refer to art. 19 of the Articles of Association and sections 2.3 and 4.1
of the Organisational Regulations.
The number of shares shown here as well as the holding percentages are based on the last disclosure of shareholdings
communicated by the shareholder to the Company and the Disclosure Office of SIX Swiss Exchange. The number of shares
held by the relevant shareholder may have changed since the date of such shareholder‘s notification.
Annual Report 2022 Governance
Corporate Governance Report
186
Notifications made in 2022 in accordance with art. 120 et seqq. of the Financial Market
Infrastructure Act (“FMIA”) can be viewed at https://www.ser-ag.com/en/resources/
notifications-market-participants/significant-shareholders.html#/.
As regards the value of the percentage of voting rights shown, it should be noted that any
changes in the percentage voting rights between the notifiable threshold values are not
subject to disclosure requirements.
As of 31 December 2022, the Company held 23,295 treasury shares.
1.3
Cross-shareholdings
The Company has no cross-shareholdings exceeding 5% in any company outside the Group.
2.
Capital structure
2.1
Ordinary share capital
The ordinary share capital of the Company as registered with the commercial register of the
Canton of Schaffhausen amounts to CHF 3,822,708.72 as of 31 December 2022.
It currently consists of 382,270,872 fully paid-up registered shares with a nominal value of
CHF 0.01 per share.
2.2
Authorised and conditional share capital
The Company has authorised share capital of CHF 565,062.61 and conditional share capital
of CHF 640,106.48, each as of 31 December 2022.
The Board of Directors is authorised to increase the share capital at any time until
21 April 2023 by a maximum of CHF 565,062.61 through the issue of up to 56,506,261 shares
of CHF 0.01 nominal value each.
The conditional share capital of CHF 640,106.48 (ie. 64,010,648 shares of CHF 0.01 nominal
value each) is divided into the following amounts:
• CHF 160,026.62 for employee benefit plans
• CHF 480,079.86 for equity-linked financing instruments
Capital increases from authorised and conditional share capital are subject to a single
combined limit, ie. the total number of new shares that may be issued from the authorised
and conditional share capital together in accordance with art. 4, 5 and 6 of the Articles of
Association may not exceed 64,010,648 shares (ie. CHF 640,106.48). Within the limit outlined
above, the proportion of new shares assigned to each of the categories is stipulated by the
Board of Directors. Any newly issued shares are subject to the restrictions set out in art. 7 of
the Articles of Association. However, the shares issued from authorised and conditional share
capital under the exclusion of subscription and advance subscription rights respectively is
limited until 21 April 2023 to a single combined maximum of 22,754,174 shares (equalling
CHF 227,541.74).
Annual Report 2022 Governance
Corporate Governance Report
187
Reference is made to the Articles of Association for the precise wording of provisions
relating to authorised and conditional share capital, in particular art. 4, 5 and 6 of the Articles
of Association. Among other matters, these contain details regarding the beneficiaries
of the employee benefit plan and the entitlements to withdraw or restrict shareholders’
subscription rights. The relevant provisions can be downloaded as a PDF document at
https://www.sig.biz/investors/en/governance/articles-of-association.
2.3 Changes in capital
During 2022, the Company increased its share capital in the course of two capital increases
by a total of CHF 447,500.00, from CHF 3,375,208.72 to CHF 3,822,708.72, through the
issuance of 44,750,000 fully paid-up registered shares with a nominal value of CHF 0.01 per
share from its authorised share capital.
On 18 May 2022, the Company increased its share capital by CHF 110,000.00, from
CHF 3,375,208.72 to CHF 3,485,208.72, through the issuance of 11,000,000 fully paid-up
registered shares with a nominal value of CHF 0.01 per share from its authorised share
capital. The net proceeds from the capital increase were used to partially finance the
acquisition of Pactiv Evergreen Inc.’s Asia Pacific Fresh operations, which consisted of the
three target companies Evergreen Packaging Korea Limited, Seoul, Evergreen Packaging
(Shanghai) Co. Ltd, Shanghai, and Evergreen Packaging (Taiwan) Co. Ltd, Taiwan.
On 23 May 2022, the Company increased its share capital by CHF 337,500.00, from
CHF 3,485,208.72 to CHF 3,822,708.72, through the issuance of 33,750,000 fully paid-
up registered shares with a nominal value of CHF 0.01 per share from its authorised share
capital. The newly issued shares had been fully allocated to Clean Holding B.V. as part of the
consideration for the acquisition of Scholle IPN.
In 2021, the Company increased its share capital by CHF 174,676.32, from CHF 3,200,532.40
to CHF 3,375,208.72, through the issuance of 17,467,632 fully paid-up registered shares with
a nominal value of CHF 0.01 per share from its authorised share capital. The newly issued
shares had been fully allocated to Al Obeikan Group for Investment Company CJS as part
of the purchase price for the remaining shares of its joint venture companies in Saudi Arabia
(Al Obeikan SIG Combibloc Company Ltd., Riyadh) and in the UAE (SIG Combibloc
FZCO, Dubai).
2.4
Shares, participation certificates and profit-sharing certificates
The shares are registered shares with a nominal value of CHF 0.01 each and are fully paid
in. Each share carries one vote at a shareholders’ meeting. The shares rank pari passu with
each other in all respects, including in respect of entitlements to dividends, to a share in the
liquidation proceeds in the case of a liquidation of the Company, and to subscription and
advance subscription rights.
The Company issues its shares as uncertificated securities (Wertrechte), within the meaning
of art. 973c para. 1 of the Swiss Code of Obligations (“CO”), and in accordance with art. 973c
para. 2 CO the Company maintains a register of uncertificated securities (Wertrechtebuch).
The shares which are entered into the main register of SIX SIS AG consequently constitute
book-entry securities (Bucheffekten) within the meaning of the Federal Act on Intermediated
Securities (“FISA”).
The Company has neither outstanding participation certificates nor shares with preferential
rights.
Annual Report 2022 Governance
Corporate Governance Report
188
2.5
Dividend-right certificates (Genusscheine)
The Company has not issued any profit-sharing certificates (Genussscheine).
2.6
Limitations on transferability and nominee registrations
According to art. 7 of the Articles of Association, any person holding shares will, upon
application, be entered in the share register without limitation as a shareholder with voting
rights, provided they expressly declare that they have acquired the shares in their own name
and for their own account.
Any person who does not expressly state in their application to the Company that the
relevant shares were acquired for their own account may be entered in the share register
as a shareholder with voting rights without further inquiry up to a maximum of 5% of the
issued share capital outstanding at that time. Above this limit, shares held by nominees
are entered in the share register with voting rights only if the nominee in question makes
known the names, addresses and shareholdings of the persons for whose account they are
holding 1% or more of the outstanding share capital available at the time, and provided that
the disclosure requirement stipulated in the FMIA is complied with. In addition, the Board of
Directors has the right to conclude agreements with nominees concerning their disclosure
requirements. Such agreements may further specify the disclosure of beneficial owners and
contain rules on the representation of shareholders and the voting rights. The percentage
limit mentioned above also applies if shares are acquired by way of exercising subscription,
advance subscription, option or conversion rights arising from shares or any other securities
issued by the Company or any third party.4
The setting and cancelling of the limitation on transferability in the Articles of Association
require a resolution of the shareholders’ meeting of the Company passed by at least
two-thirds of the represented share votes and an absolute majority of the par value of
represented shares.
2.7
Convertible bonds and warrants/options
As of 31 December 2022, the Company has no outstanding bonds or debt instruments
convertible into, or option rights in, the Company’s securities.
As of 31 December 2022, a total of 871,407 performance share units (“PSUs”) and restricted
share units (“RSUs”) awards were outstanding. Each awarded PSU and RSU represents
the contingent right to receive one SIG share subject to fulfilment of pre-defined vesting
conditions. The Group expects to settle its obligation under these plans and arrangements
by using own shares (treasury shares) or, alternatively, by using shares issued from
conditional share capital. If the PSUs and RSUs were fully vested and exclusively shares
from conditional share capital were used, this would increase the existing share capital by
approximately 0.002%. Please refer to the Compensation Report on > pages 215-235 for
further information pertaining to any PSUs and RSUs awarded as an element of executive
compensation.
Furthermore, in 2020 the Group introduced an equity investment plan (“EIP”) for a wider
group of management in leadership positions, other key employees and talents under
which the participants may choose to invest in shares in the Company at market value.
4
For a comprehensive description of the limitations to transferability and nominee registration, refer to art. 7
of the Articles of Association.
Annual Report 2022 Governance
Corporate Governance Report
189
The number of employees invited to participate in the EIP is limited per year to 2% of the
Group’s employees. The amount a participant may invest per year is limited to the value
of the annual short-term incentive target amount of such participant for the relevant year.
The shares are blocked for three years. For each purchased share, the Group grants the
participants two matching options to purchase another two shares at a pre-defined exercise
price at the end of a three-year vesting period. The Group expects to settle its obligations
under these plans and arrangements by using own shares (treasury shares) or, alternatively,
by using shares issued from conditional share capital. If the options were fully vested and
exclusively shares from conditional share capital were used, this would increase the existing
share capital by approximately 0.001%. Please refer to note 31 of the consolidated financial
statements for the year ended 31 December 2022 for additional information about the
EIP options.
3.
Board of Directors
3.1 Members of the Board of Directors
The Articles of Association provide that the Board of Directors shall consist of a minimum of
three members, including the chair of the Board (“Chair”). Currently, the Board consists of
the following nine members:
Name
Nationality
Andreas Umbach
Swiss and German
Position
Chair
Swiss and German
Vice-Chair
Werner Bauer
Wah-Hui Chu
Colleen Goggins
Mariel Hoch
Laurens Last
Chinese
American
Swiss and German
Dutch
Abdallah al Obeikan
Saudi Arabian
Martine Snels
Matthias Währen
Belgian
Swiss
Member
Member
Member
Member
Member
Member
Member
Since
2018
2022²
2018
2018
2018
2022
2021
2021
2018
Expires1
AGM 2023
AGM 2023
AGM 2023
AGM 2023
AGM 2023
AGM 2023
AGM 2023
AGM 2023
AGM 2023
1
All Board members are elected annually in accordance with Swiss corporate law and the Articles of Association.
2 Member since 2018.
At the annual general meeting of the Company (“Annual General Meeting” or “AGM”) on
7 April 2022 (“Annual General Meeting 2022” or “AGM 2022”), eight of the previous nine
members of the Board were re-elected5 and one new member was elected, each for a one-
year term of office.
All current members of the Board of Directors are non-executive directors. Abdallah al
Obeikan served from 2000 to 2021 as CEO of the SIG Combibloc Obeikan joint venture
companies, which became fully owned subsidiaries of the Company in February 2021.
Laurens Last served from 2015 until 2022 as chair of Scholle IPN, which became a fully
owned subsidiary of the Company in June 2022. All other members of the Board of Directors
were not members of the management of the Company or a subsidiary of the Group in
the three years preceding the year under review. The Board of Directors determines
independence annually in accordance with the Company’s independence criteria set forth
5 Nigel Wright had decided not to stand for re-election at the AGM 2022.
Annual Report 2022 Governance
Corporate Governance Report
190
in the Organisational Regulations. Pursuant to the Company’s independence criteria and
based on the last assessment performed before the AGM 2022, all members of the Board of
Directors are deemed to be independent, except for Abdallah al Obeikan and Laurens Last.
Andreas Umbach is a Swiss and German citizen and has served as Chair since the Initial
Public Offering on 28 September 2018 (“IPO”). Mr Umbach has further served as chair of the
board of directors of Landis+Gyr Group AG (SIX: LAND) since 2017, as chair of the supervisory
board of Techem Energy Services GmbH since 2018 and as chair of the board of directors
of Rovensa SA since 2020. He has been president of the Zug Chamber of Commerce and
Industry since 2016. Mr Umbach previously served as a member of the board of Ascom
Holding AG (SIX: ASCN) (2010-2020), from 2017 to 2019 as chair. He also served as a
member of the board of directors of WWZ AG (2013-2020) and as a member of the board
of directors of LichtBlick SE (2012-2016). From 2002 to 2017, Mr Umbach was president and
CEO/COO of Landis+Gyr AG. Prior to serving as CEO, Mr Umbach served as president of
the Siemens Metering Division within the Power Transmission and Distribution Group and
held other positions within Siemens. Mr Umbach holds an MBA from the University of Texas
at Austin and an MSc in mechanical engineering (Diplomingenieur) from the Technical
University of Berlin, Germany.
Matthias Währen is a Swiss citizen and has served as a member of the Board of Directors
since the IPO. Mr Währen has further served as a member of the board of directors of Keto
Swiss AG since 2020, of Bloom Biorenewables SA since 2020 and of ph. AG since 2020, as
well as being a member of the board of trustees of the Givaudan Foundation (since 2013)
and the HBM Fondation (since 2018). Mr Währen was previously a member of the regulatory
board of SIX Swiss Exchange from 2006 to 2017, a member of the board of scienceindustries
from 2009 to 2017, a member of the board of Swiss Holdings from 2015 to 2017 and a
member of the board of directors of various Givaudan subsidiaries from 2005 to 2019. Most
recently, he served as CFO and a member of the executive committee of Givaudan SA from
2005 until his retirement in 2017. Prior to that, he served as the global head of finance and
informatics of the Roche vitamin division and held a variety of other positions at Roche,
including vice president finance and informatics at Roche USA, Nutley, New Jersey, head of
finance and information technology at Nippon Roche, Tokyo, and finance director of Roche
Korea. Mr Währen started his career in corporate audit at Roche in 1983. Mr Währen holds a
Master’s degree in economics from the University of Basel, Switzerland.
Colleen Goggins is an American citizen and has served as a member of the Board of
Directors since the IPO. From 2015 until the IPO, she served as an advisory board member
for the Company. Ms Goggins is also a member of the board of directors of TD Bank Group
(TSW: TD) (since 2012), where she serves on the risk committee, a member of the supervisory
board of Bayer AG (ETR: BAYN) (since 2017), where she serves on the nominating and ad hoc
legal committee, and a member of the board of directors of IQVIA (NYSE: IQV) (since 2017),
where she sits on the audit and nominating and governance committees. Ms Goggins is also
a member of the advisory boards of ZO Skin Health (since 2020), Sabert Inc. (since 2020) and
Acacium (since 2021). She has been a member of the University of Wisconsin Foundation,
a member of the board of directors of New York Citymeals on Wheels and a trustee of the
International Institute of Education. Ms Goggins previously served as a supervisory board
member for KraussMaffei from 2013 to 2016 and as a member of the board of directors
of Valeant Pharmaceuticals International from 2014 to 2016, where she was a member of
the nominating committee and special ad hoc committee. Prior to that, Ms Goggins worked
at Johnson & Johnson until 2011, where she held various leadership positions, including
member of the Johnson & Johnson Executive Committee, worldwide chair of the consumer
group, company group chair of North America, and president of the Johnson & Johnson
Consumer Products Company. Ms Goggins holds a Bachelor of science degree in food
Annual Report 2022 Governance
Corporate Governance Report
191
chemistry from the University of Wisconsin-Madison and a Master’s degree in management
from the Kellogg Graduate School of Management at Northwestern University, USA.
Werner Bauer is a Swiss and German citizen and has served as a member of the Board of
Directors since the IPO. From 2015 until the IPO, he served as an advisory board member for
the Company. Mr Bauer is also currently vice chair of the board of directors of Givaudan SA
(SIX: GIVN) (since 2014) and of Bertelsmann SE & Co. KGaA (since 2012). He is further the
chair of the board of trustees at the Bertelsmann Foundation (since 2011). From 2013 to
2022 he served as a member of the board of directors of Lonza Group AG (SIX: LONN)
and from 2011 to 2018 as a member of the board of directors of GEA-Group AG. Prior to
that he held a number of other board positions, including chair of the board of directors of
Nestlé Deutschland AG (from 2005 to 2017) and chair of the board of directors of Galderma
Pharma SA (from 2011 to 2014). Most recently, Mr Bauer was executive vice president and
head of innovation, technology, research & development for Nestlé SA (from 2007 to 2013),
and prior to that he served as executive vice president and head of technical, production,
environment, research & development for Nestlé SA and held other positions within Nestlé.
Furthermore, Mr Bauer served as chair of the board of directors of Sofinol S.A. (from 2006
to 2012) and as a member of the board of directors of L’Oréal (from 2005 to 2012) and of
Alcon Inc. (from 2002 to 2010). Mr Bauer started his career in 1980 as a professor in chemical
engineering at Hamburg Technical University, after which he was a professor in food
bioprocessing and director of the Fraunhofer Institute for Food Technology & Packaging
at the Technical University of Munich. Mr Bauer holds a diploma and PhD in chemical
engineering from the University of Erlangen-Nürnberg, Germany.
Wah-Hui Chu is a Chinese citizen and has served as a member of the Board of Directors
since the IPO. From 2015 until the IPO, he served as an advisory board member for
the Company. Mr Chu is also the founder and chair of iBridge TT International Limited
(Hong Kong) since 2018 and a member of the board of directors of Mettler Toledo
International (NYSE: MTD) since 2007, and he was the founder of M&W Consultants Limited
(Hong Kong) in 2007. From 2013 to 2014, when he retired, Mr Chu served as CEO and a
member of the board of directors of Tingyi Asahi Beverages Holding, and from 2008 to 2011
he acted as executive director and CEO of Next Media Limited. He also served as a member
of the board of directors of Li Ning Company Limited from 2007 to 2012 and as chair of
PepsiCo Investment (China) Limited from 1998 to 2007, and again from 2012 to 2013. Mr Chu
spent many years as an executive at PepsiCo, serving as non-executive chair of PepsiCo
International’s Asia region in 2008 and president of PepsiCo International – China beverages
business unit between 1998 and 2007. Before joining PepsiCo, Mr Chu held management
positions at Monsanto Company, Whirlpool Corporation, H.J. Heinz Company and the
Quaker Oats Company. Mr Chu holds a BSc in agronomy from the University of Minnesota
and an MBA from Roosevelt University, USA.
Mariel Hoch is a Swiss and German citizen and has served as a member of the Board of
Directors since the IPO. Ms Hoch has been a partner at the Swiss law firm Bär & Karrer
since 2012. She is currently also a serving member and vice chair of the board of directors
of Comet Holding AG (SIX: COTN) (since 2016), where she also chairs the nomination and
compensation committee. Furthermore, she is a member of the board of directors of
Komax Holding AG (SIX: KOMN) (since 2019), where she also sits on the audit committee,
and of MEXAB AG (since 2014). Ms Hoch served as a member of the board of directors
of Adunic AG from 2015 to 2018. She has been a member of the foundation board of The
Schörling Foundation since 2013, a member of the foundation board of the Irene M Staehelin
Foundation since 2020 and a member of the Law and Economics Foundation St Gallen
since 2020. Ms Hoch was also co-chair of the Zurich Committee of Human Rights Watch
between 2017 and 2021. Ms Hoch was admitted to the Zurich bar in 2005 and holds a law
degree and a PhD from the University of Zurich, Switzerland.
Annual Report 2022 Governance
Corporate Governance Report
192
Abdallah al Obeikan is a Saudi Arabian citizen and has served as a member of the Board of
Directors since April 2021. Mr al Obeikan is also currently a member of the board of directors
of Arabian Shield Cooperative Insurance Company (TADAWUL: ARABIAN SHILED), listed
on Tadawul Stock Exchange, KSA. He further serves as a member of the board of directors
and CEO of the Obeikan Investment Group (OIG) – a major player in packaging, digital
solutions and education industries – where he also holds board and management positions
in several OIG subsidiaries. In addition, Mr al Obeikan is chair of Obeikan AGC Glass
Company (TADAWUL: OBEIKAN GLASS), chair of Riyadh Polytechnic Institute, a member
of the board of directors of National Water Company, a member of the board of directors of
Social Development Bank and a member of the advisory board of KSA agencies. Abdallah
al Obeikan joined the Obeikan family business in 1987 and was CEO of the SIG Combibloc
Obeikan joint venture companies from 2000 to 2021. Mr al Obeikan holds a BSc in electrical
engineering from King Saud University, Riyadh, K.S.A.
Martine Snels is a Belgian citizen and has served as a member of the Board of Directors
since April 2021. Ms Snels is also currently a member of the supervisory board of
Prodrive Technologies (since 2023) and a member of the board of directors of Electrolux
Professional AB (since 2019). In addition, Ms Snels is the founder and CEO of L’Advance BV
(since 2020) and a member of the supervisory board of URUS Group LLC (since 2021). She
previously served as a member of the supervisory board of VION Food Group NV (from
2020 to 2022) and as a member of the board of directors of Resilux NV (from 2019 to 2022).
Prior to that she was a member of the executive board of GEA Group AG (from 2017 to
2020) and held various leadership roles at Royal Friesland Campina NV (from 2012 to 2017)
including member of the Executive Board – C.O.O. Ingredients (2015-2017), Nutreco NV
(from 2003 to 2012) and Kemin Industries (from 1996 to 2003). Ms Snels holds an MSc in
Agricultural Engineering from K.U. Leuven, Belgium.
Laurens Last is a Dutch citizen and has served as a member of the Board of Directors since
April 2022. Mr Last is currently also Director of Clean Holding B.V., TSAL Holding NV and
Cycle Investments BV. He was founder and CEO of International Packaging Network (IPN)
and afterwards Chair and a member of the Board of Scholle IPN. Before pursuing his
entrepreneurial ventures, Mr Last studied at HEAO Business School in the Netherlands.
As of 31 December 2022, other than with respect to Laurens Last, there are no material
business relationships of any Board member with the Company or with any subsidiary or
joint venture company. With respect to Laurens Last, a contingent consideration may be
payable to Clean Holding B.V., a company ultimately controlled by Laurens Last, in three
annual instalments of up to $100 million per year for the years ending 31 December 2023,
2024 and 2025 as part of the consideration for the acquisition of Scholle IPN, contingent
upon Scholle IPN outperforming the top end of SIG’s mid-term growth guidance of 4–6%
per year in the respective years. Any payments for growth rates ranging from 6 to 11.5%
per year are subject to a pre-agreed ratchet structure. The Group has also entered into a
transitional service agreement in relation to an entity controlled by Laurens Last that was
not part of the acquisition of Scholle IPN. This transitional service agreement, ending in
May 2023, has no significant impact on the Group.
Annual Report 2022 Governance
Corporate Governance Report
193
SIG Group aims to have a well-balanced Board of Directors with individuals who bring a
variety of perspectives, backgrounds and skills, and who apply them to permit the Board
of Directors to offer informed stewardship. The Board skill matrix below summarises the
current set of skills/traits grouped into 13 categories:
Board skill matrix
m b a c h
W erner B auer
W a h- H ui C hu
C olleen G o g gins
M ariell H o c h
L aurens L ast
A b d allah al O b eikan
M artine S nels
M a tt hias W ä hren
B o ard m e m b er
A n dreas U
Qualifications and experience
Customer: fast moving consumer goods (FMCG)
Sector: packaging industry
Financial proficiency
Enterprise risk management
Leadership, incl. human capital development
Growth: strategy and business development / entrepreneurial
Technology and innovation management
Operational excellence (incl. quality management, supply chain)
Digitalisation, incl. cybersecurity
Environmental, social and governance (ESG)
International & global perspective
Mergers and acquisitions, integrations
Legal & regulatory affairs
Independence
Expert / very experienced
Proficient / relevant experience
Independent
3.2 Number of permissible activities
In the interest of good governance, the Company’s Articles of Association limit the number
of outside mandates of the members of our Board as follows:
(i) up to four mandates in listed firms;
(ii) up to ten mandates in non-listed firms6; and
(iii) up to ten mandates in foundations, associations, charitable organisations and
other legal entities.
Such a mandate is deemed to be any activity in superior governing or administrative
bodies of legal entities that are obliged to be registered in the commercial register or
any comparable foreign register, other than the Company and any entity controlled by
or controlling the Company. The Board members shall ensure that such activities do not
conflict with the exercise of their duties for the Group. Functions in various legal entities
that are under joint control, or in entities in which this legal entity has a material interest,
are counted as one function.
6 Pursuant to art. 727 para. 1 number 1 CO.
Annual Report 2022 Governance
Corporate Governance Report
194
3.3
Election and term of office
The members of the Board of Directors are elected individually each year by the Annual
General Meeting of the Company for a term of office of one year and can be re-elected. The
Chair of the Board of Directors is also elected each year by the Annual General Meeting for
a period of office of one year. There is no limit on the term in office. The initial election year
of each Board member is shown in the table on > page 189.
3.4
Internal organisation - division of roles
within the Board of Directors and working methods
The Board of Directors represents the Company vis-à-vis third parties and attends to all
matters which have not been delegated to or reserved for another corporate body of the
Company. The Chair convenes meetings of the Board of Directors as often as the Group’s
business requires, but at least four times a year. The Chair prepares the meetings, draws
up the agenda, and acts as chair. Any member of the Board can ask for a meeting to be
convened and for the inclusion of an item on the agenda. In order to pass resolutions, not
less than a majority of the Board members must be participating in the meeting. Except
as required by mandatory law, the Board will adopt resolutions by a simple majority of
the votes cast. In case of a tie, the Chair has no casting vote. Board resolutions may also
be passed in writing by way of circular resolution, provided that no member of the Board
of Directors requests oral deliberation (in writing, including by email) of the Chair or the
secretary. Board resolutions by means of a written resolution require the affirmative vote
of a majority of all the members of the Board.
4.
Committees
The Board of Directors may delegate the preparation and execution of its decisions to
committees or to its individual members. The Board of Directors has appointed three
standing committees: the Audit and Risk Committee, the Compensation Committee, and
the Nomination and Governance Committee. For each of the committees, the Board of
Directors elects a chair from the members of the Board of Directors. The period of office of
all Committee members is one year. Re-election is possible.
Subject to the provisions of the Articles of Association7, the Audit and Risk Committee
and the Compensation Committee shall generally comprise three or more members of the
Board of Directors. The Nomination and Governance Committee shall generally comprise
two or more members of the Board of Directors.
4.1
Compensation Committee
As required by Swiss law, the members of the Compensation Committee are elected
each year by the Annual General Meeting. As of 31 December 2022, the members of the
Compensation Committee were Colleen Goggins (chair), Mariel Hoch and Wah-Hui Chu.
Meetings of the Compensation Committee are held as often as required, but in any event at
least three times a year, or as requested by any of its members.
7 https://www.sig.biz/investors/en/governance/articles-of-association.
Annual Report 2022 Governance
Corporate Governance Report
195
The members of the Compensation Committee shall be non-executive and independent,
and a majority of the members of the Compensation Committee, including its chair, should
be experienced in the areas of succession planning and performance evaluation, as well as
the compensation of members of Boards of Directors and executive management boards.
The Compensation Committee shall assist the Board in fulfilling its responsibilities relating
to the compensation of the members of the Board of Directors and the Group Executive
Board. The Compensation Committee’s responsibilities include:
•
issuance and review of the compensation policy and the performance criteria,
and periodical review of the implementation and submission of suggestions and
recommendations to the Board, including as regards compliance with applicable laws;
• preparation of the Board of Directors’ proposals to the Annual General Meeting regarding
the compensation of the Board of Directors and the Group Executive Board;
• review of the principles and design of compensation plans, long-term incentive and
equity plans, pension arrangements and further benefits for the Group Executive Board,
including review of the contractual terms of the members of the Group Executive Board
and submission of adjustments to the Board of Directors for approval;
• for each performance period, preparation of the decisions for the Board of Directors
regarding the compensation of the members of the Board of Directors and the Group
Executive Board, including the breakdown of compensation elements (within the amount
approved by the Annual General Meeting);
• submission of suggestions to the Board of Directors regarding the recipients of
performance-related and/or long-term incentive compensation, and submission of
suggestions to the Board of Directors regarding the definition of the annual or other
targets for performance-related and/or long-term incentive compensation; and
• review of the compensation report and submission to the Board of Directors for approval.
The Board of Directors may entrust the Compensation Committee with additional duties in
related matters. The Compensation Committee is required to report its activities to the Board
of Directors on a regular basis and to make recommendations and propose appropriate
measures to the Board of Directors.8
4.2 Audit and Risk Committee
The members and the chair of the Audit and Risk Committee are appointed by the Board
of Directors. As of 31 December 2022, the members of the Audit and Risk Committee were
Matthias Währen (chair), Mariel Hoch, Martine Snels and Werner Bauer.
Meetings of the Audit and Risk Committee are held as often as required, but in any event at
least four times a year, or as requested by any of its members.
The members of the Audit and Risk Committee shall be non-executive and independent,
and a majority of the members of the Audit and Risk Committee, including its chair, must be
experienced in financial and accounting matters.
The Audit and Risk Committee: (i) assists the Board in fulfilling its supervisory responsibilities
with respect to (a) the integrity of the Company’s financial statements and financial reporting
process, (b) the Company’s compliance with legal, regulatory and compliance requirements,
(c) the system of internal controls, and (d) the audit process; (ii) monitors the performance
of the Company’s internal auditors and the performance, qualification and independence
8 The organisation and responsibilities of the Compensation Committee are stipulated in the Articles of Association (art. 21).
Annual Report 2022 Governance
Corporate Governance Report
196
of the Company’s independent auditors; and (iii) considers the proper assessment and
professional management of risks by supervising the Company’s risk management system
and processes.
The responsibilities of the Audit and Risk Committee include, in particular, reviewing and
discussing with the CFO and, both together with the CFO and separately, with the auditors
the Company’s annual and semi-annual and quarterly (if quarterly financial statements
are prepared) financial statements and reports intended for publication, as well as any
other financial statements intended for publication. The Audit and Risk Committee also
recommends the annual financial statements for approval by the Board of Directors
for submission to the Annual General Meeting, recommends the semi-annual financial
statements for approval by the Board of Directors and approves quarterly (if quarterly
financial statements are prepared) financial statements for publication. In addition, the Audit
and Risk Committee discusses with the CFO and the auditors significant financial reporting
issues and judgements made in connection with the preparation of the Company’s financial
statements, including any significant changes in the Company’s accounting policies, the
selection and disclosure of critical accounting estimates, and the effect of alternative
assumptions, estimates or accounting policies on the Company’s financial statements.
In connection with the risk management of the Company, the Audit and Risk Committee
discusses with the CFO and, if appropriate, the Group General Counsel any legal matters
(including the status of pending or threatened litigation) that may have a material impact
on the Company’s business or financial statements and any material reports or inquiries
from regulatory or governmental agencies that could materially impact the Company’s
business or contingent liabilities and risks. Its members periodically review the Company’s
policies and procedures designed to secure compliance with laws, regulations and internal
rules regarding insider information, confidentiality, bribery and corruption, sanctions
and adherence to ethical standards, and assess the effectiveness thereof. The Audit and
Risk Committee obtains and reviews reports submitted at least annually by the Group
General Counsel and any other persons the committee has designated as being responsible
for assuring the Company’s compliance with laws and regulations. In this context, it informs
the Board at least annually about the most significant risks for the Company and the Group,
and how such risks are managed or mitigated.
The Board of Directors may entrust the Audit and Risk Committee with additional duties
in financial matters. In discharging its responsibilities, the Audit and Risk Committee has
unrestricted and direct access to all relevant information in relation to the Company and
the Group. The Audit and Risk Committee ensures that it is informed by the independent
auditors on a regular basis. The Audit and Risk Committee is required to report its activities
to the Board of Directors on a regular basis and to make recommendations and propose
appropriate measures to the Board of Directors.
Annual Report 2022 Governance
Corporate Governance Report
197
4.3 Nomination and Governance Committee
The members and the chair of the Nomination and Governance Committee are appointed
by the Board of Directors. As of 31 December 2022, the members were Andreas
Umbach (chair), Wah-Hui Chu, Martine Snels and Werner Bauer.
Meetings of the Nomination and Governance Committee are held as often as required, but in
any event at least two times a year, or as requested by any of its members.
The majority of the members of the Nomination and Governance Committee shall be non-
executive, and a majority of the members of the Nomination and Governance Committee,
including its chair, must be experienced in nomination of members of Boards of Directors
and the Group Executive Board and in corporate governance matters.
The Nomination and Governance Committee assists the Board of Directors in fulfilling
its responsibilities and discharging the Board’s responsibility to (i) establish and maintain
a process relating to nomination of the members of the Board and the Group Executive
Board, and (ii) establish sound practices in corporate governance across the Group. Its
responsibilities include assisting the Board in identifying individuals who are qualified to
become members of the Board or qualified to become CEO when vacancies arise and,
in consultation with the CEO, members of the Group Executive Board. Furthermore, the
Nomination and Governance Committee reviews the performance of each current member
of the Board of Directors, the CEO and each of the other members of the Group Executive
Board. It also provides recommendations to the Board of Directors as to how the Board’s
performance can be improved.
The Nomination and Governance Committee also develops and makes recommendations
to the Board of Directors regarding corporate governance matters and practices, including
the effectiveness of the Board of Directors, its Committees and individual directors. It also
oversees the Company’s strategy and governance in relation to corporate responsibility
for environmental, social and governance (ESG) matters, in particular regarding key issues
that may affect the Company’s business and reputation. In doing so, the Nomination and
Governance Committee may consult with the Responsibility Advisory Group, which consists
of external ESG experts and was established to support the Group Executive Board with the
development of SIG’s Way Beyond Good approach by providing an external perspective.
The Board of Directors may entrust the Nomination and Governance Committee with
additional duties in related matters. The Nomination and Governance Committee is
required to report its activities to the Board of Directors on a regular basis and to make
recommendations and propose appropriate measures to the Board of Directors.
Annual Report 2022 Governance
Corporate Governance Report
198
5.
Frequency of meetings of the
Board of Directors and its Committees
The Chair convenes meetings of the Board of Directors as often as the Group’s business
requires, but at least four times a year, and whenever a member of the Board or the CEO
requests a meeting of the Board indicating the reasons for such meeting in writing.
The Board of Directors usually convenes four full-day ordinary meetings as well as an
annual joint strategy meeting with the Group Executive Board. The task at these meetings is
to analyse the positioning of the Group in the light of current macreconomic and Company-
specific circumstances, and to review and, if necessary, redefine the strategic orientation.
In view of the ongoing COVID-19 situation in 2022, the Board of Directors has adapted the
schedule and format of its meetings by increasing the number of meetings but shortening
their duration and holding some meetings virtually.
In the period under review, the Board held six ordinary meetings, of which two were virtual
half-day meetings and four were in-person meetings, of which one was a strategy meeting
lasting two full days and one was a meeting combined with the Board of Directors visiting
one of the newly acquired Scholle IPN and customer facilities. In addition, the Board held one
extraordinary virtual meeting lasting for three hours. Overall, only one Board member missed
one Board meeting, resulting in an average attendance of 98% in the period under review.
Furthermore, the Board held one mandatory regulatory compliance training session, with all
Board members except one participating, and one half-day voluntary educational session
on market insights and packaging material developments in the context of sustainability, with
a large majority of the Board participating. In addition, the Board held a meeting regarding
the final offer price for the private placement of shares, with only the Chair and Mariel Hoch
being present. Furthermore, the Board held two declaratory meetings with respect to the
declarations regarding the authorised capital increases, one with only Matthias Währen
being present and the other one with only the Chair being present. Attendance at the Board
meetings in 2022 may be summarised as follows:
Meetings of the Board of Directors from 1 January 2022 to 31 December 2022
Dates
Andreas Umbach
Werner Bauer
Wah Hui-Chu
Colleen Goggins
Mariel Hoch
Abdallah al Obeikan
Laurens Last
Martine Snels
Matthias Währen
Nigel Wright
30.01.
24.02.
06.04.
17.–18.05.
21.07.
14.–15.09.
09.12.
x
n/a1
n/a1
n/a1
n/a²
n/a²
n/a²
n/a²
1
Laurens Last was elected at the AGM on 7 April 2022.
2 Nigel Wright had decided not to stand for re-election at the AGM 2022.
Annual Report 2022
Governance
Corporate Governance Report
199
For the period under review, the Compensation Committee held five ordinary meetings
with an average duration of approximately two hours, of which three were virtual meetings
and two were in-person meetings. Furthermore, the Compensation Committee held four
extraordinary virtual meetings with an average duration of approximately 45 minutes. All
meetings were attended by all Committee members, with the exception of one Committee
member not being able to join one extraordinary virtual meeting, resulting in an overall
attendance rate of 96%.
The Nomination and Governance Committee held three ordinary meetings with an average
duration of approximately two hours, of which one was an in-person meeting and two
were virtual meetings. Furthermore, the Nomination and Governance Committee held two
extraordinary meetings with an average duration of approximately 75 minutes, of which one
was a hybrid meeting, with half of the Committee being present in person, and one was a
virtual meeting. The meetings had an overall attendance rate of 100%.
The Audit and Risk Committee held five ordinary meetings and one extraordinary meeting
with an average duration of approximately three hours, of which four were in-person
meetings and two were virtual meetings. The meetings had an overall attendance rate of
100%. The five ordinary meetings of the Audit and Risk Committee were partially attended
by the external auditors.
With the exception of certain directors-only sessions, the Board meetings were usually
attended by the CEO, the CFO and other members of the Group Executive Board and other
representatives of senior management. Some meetings of the Board of Directors were
partially attended by external advisers. Meetings of the Audit and Risk Committee were
attended by the CFO and the Group General Counsel & Chief Compliance Officer, and
usually by the CEO. Meetings of the Compensation Committee were regularly attended by
an external adviser to the Compensation Committee, the CEO, the Chief People & Culture
Officer and the Group’s Global Compensation and Benefits Manager. The Nomination and
Governance Committee meetings were regularly attended by the CEO and by a member of
management acting as secretary.
Annual Report 2022 Governance
Corporate Governance Report
200
6.
Areas of responsibility
The Board, acting collectively, has the ultimate responsibility for the conduct of business
of the Company and for delivering sustainable shareholder and stakeholder value. The
Board sets the Company’s strategic aims, ensures that the necessary financial and
human resources are in place to meet the Company’s objectives, and supervises and
controls the management of the Company. It may take decisions on all matters that are
not expressly reserved to the shareholders’ meeting or to another corporate body by law,
by the Articles of Association or by the Organisational Regulations. The Board’s non-
transferable and irrevocable duties, as set out in the CO and art. 19 para. 3 of the Articles
of Association, include:9
• the ultimate direction of the Company and the power to issue the necessary directives;
• determining the organisation of the Company;
• the overall structure of the accounting system, financial control and financial planning;
• the appointment and dismissal of those persons responsible for the conduct of business
and for representing the Company, the regulation of signatory authorities and the
determination of their other authorities;
• the ultimate supervision of the persons entrusted with the management of the Company,
in particular with respect to their compliance with the law, the Articles of Association,
regulations and directives;
• the preparation of the annual report (incl. statutory financial statements), the
compensation report and the shareholders’ meeting, including the implementation of the
resolutions adopted by the shareholders’ meeting;
• the notification of a judge in case of over-indebtedness;
• the passing of resolutions regarding the subsequent payment of capital with respect to
non-fully paid-in shares and the respective amendments of the Articles of Association;
• the passing of resolutions concerning an increase in the share capital and regarding the
preparation of capital increase reports as well as the respective amendments to the
Articles of Association; and
• the non-transferable and inalienable duties and powers of the Board of Directors by law,
such as the Swiss Federal Merger Act on Merger, Demerger, Transformation and Transfer
of Assets of 1 July 2004, as amended, or the Articles of Association.
In addition, Swiss law and the Organisational Regulations reserve to the Board the powers,
inter alia,
• to determine the overall business strategy, taking into account the information, proposals
and alternatives presented by the CEO;
• to set financial objectives and approve, via the budget and financial planning process, the
necessary means to achieve these objectives, including approving a capital allocation
framework;
• to decide on the Group entering into substantial new business areas or exiting from a
substantial existing business area, insofar as this is not covered by the current approved
strategic framework;
• to appoint and remove the CEO and the other members of the Group Executive Board;
• to set the risk profile and the risk capacities of the Group; and
• to approve all matters and business decisions where such decisions exceed the authority
delegated by the Board to its Committees, the CEO or the Group Executive Board.
9
A detailed description of these responsibilities and duties of the Board of Directors, its Committees and the Group Executive
Board can be found in the Articles of Association (https://www.sig.biz/investors/en/governance/articles-of-association) and
the Organisational Regulations (https://www.sig.biz/investors/en/governance/organizational-regulations).
Annual Report 2022 Governance
Corporate Governance Report
201
The Board of Directors has delegated the operational management of the Company and the
Group to the Group Executive Board headed by the CEO, subject to the duties and powers
reserved to the Board by Swiss law, the Articles of Association and the Organisational
Regulations. The Group Executive Board is responsible for implementing and achieving
the Company’s corporate objectives, and for the management and control of all Group
companies.10 The Group Executive Board is directly supervised by the Board of Directors
and its Committees.
Pursuant to the Organisational Regulations, the CEO is appointed by the Board of Directors
upon recommendation by the Nomination and Governance Committee and may be removed
by the Board of Directors. The other members of the Group Executive Board are appointed
by the Board of Directors upon recommendation by the Nomination and Governance
Committee in consultation with the CEO and may be removed by the Board of Directors.
7.
Information and control instruments
vis-à-vis the Group Executive Board
The Board of Directors supervises the Group Executive Board and uses reporting and
controlling processes to monitor its operating methods. At each of its meetings, the Board
of Directors is informed by the CEO, or by another member of the Group Executive Board,
of the current business and significant events. At these meetings, members of the Board of
Directors may ask other members of the Board of Directors or the CEO to provide information
about the Group that they require in order to carry out their duties. The Chair has regular
interaction with the CEO between Board meetings. The course of business and all major
issues of corporate relevance are discussed at least once a month. Executive management
provides monthly reports to the Board regarding the financial and operational performance
of the business. All members of the Board of Directors are notified immediately of any
exceptional occurrences.
The Head of Internal Audit, the General Counsel and auditing bodies assist the Board of
Directors in carrying out its controlling and supervisory duties. In addition, the Committees
monitor the performance of the Group Executive Board. The scope of this remit is agreed
with the Board of Directors.
The Committees regularly receive information in the form of Group reports relevant to their
needs. These reports are typically discussed in depth at regular meetings of the Committees
involved. The Group Executive Board defines and evaluates the Group’s most significant
risks on the basis of a coordinated and consistent approach to risk management and
control. Based on a list of the most important risks, the Group Executive Board establishes a
list of measures to prevent and mitigate potential loss and damage. The list is presented to
the Audit and Risk Committee at least annually. After review and discussion, the Audit and
Risk Committee informs the Board of Directors, which directs the Group Executive Board to
ensure that the measures are put into practice.
In addition, the Board of Directors is supported by Internal Audit. The Audit and Risk
Committee reviews and discusses with the Head of Internal Audit material matters arising
in internal audit reports provided to the Audit and Risk Committee. Internal Audit has an
unrestricted right to demand information and examine the records of all Group companies
and departments. In addition, after consultation with the Audit and Risk Committee,
10
The Group Executive Board exercises those duties which the Board of Directors has delegated to the management in
accordance with the Company‘s Organisational Regulations and Swiss law.
Annual Report 2022 Governance
Corporate Governance Report
202
the Group Executive Board may ask Internal Audit to carry out special investigations above
and beyond its usual remit. The Head of Internal Audit submits a report to the Audit and Risk
Committee at least annually. The Audit and Risk Committee is responsible for reviewing and
discussing such reports, the internal audit plan for the Company and budgeted resources
for Internal Audit.
SIG Group has risk management systems in place at all its Group companies. Potential
risks are reviewed periodically and significant risks to which the Company is exposed are
identified and assessed for probability of occurrence and impact. Action to manage and
contain these risks is approved by the Board of Directors.
8.
Group Executive Board
8.1 Members of the Group Executive Board
The Group Executive Board is headed by the CEO and comprises ten members, specifically
the CEO, the CFO, the CTO, the CPCO, the President and General Manager Europe, the
President and General Manager Asia Pacific North, the President and General Manager Asia
Pacific South, the President and General Manager Americas, the President and General
Manager MEA and the President Scholle IPN.
After the acquisition of Scholle IPN, Ross Bushnell was appointed to the Group Executive
Board as President Scholle IPN with effect as of 1 June 2022.
The Company announced in a press release on 20 December 2022 the departure of Frank
Herzog, who has resigned as Chief Financial Officer and member of the Group Executive
Board. Until the appointment of a new CFO, Jessica Spence, Head of Group Accounting and
Financial Reporting, and Dmitry Lebedev, Head of Global Financial Planning and Analysis
and Markets Controlling, co-lead the finance function ad interim.
The Group Executive Board comprised the following members on 31 December 2022:
Name
Samuel Sigrist
Frank Herzog1
Ian Wood
Suzanne Verzijden
Ross Bushnell
Abdelghany Eladib
Fan Lidong
Angela Lu
José Matthijsse
Nationality
Swiss
German
Swiss and British
Dutch
American
Egyptian
Position
CEO
CFO
CTO
CPCO
President Scholle IPN
President and General Manager MEA
Chinese
President and General Manager Asia Pacific North
Chinese
President and General Manager Asia Pacific South
Dutch
President and General Manager Europe
Ricardo Rodriguez
Brazilian and Spanish
President and General Manager Americas
1
In office until 31 December 2022.
The biographies on the following pages provide information about the Group Executive
Board members in office on 31 December 2022.
Annual Report 2022 Governance
Corporate Governance Report
203
Samuel Sigrist is a Swiss citizen and served as CFO and chair of the Middle East joint
venture from 2017. With effect from 2021, he became the new CEO of SIG Group. Mr Sigrist
joined the Company in 2005 and has worked in various finance and corporate development
roles, including director of group controlling and reporting, head of finance/CFO of Europe
and head of group projects. From 2013 to 2017, Mr Sigrist was the Company’s President and
General Manager Europe, and prior to joining the Company he worked as a consultant. Mr
Sigrist holds a Bachelor’s degree in business administration from the Zurich University of
Applied Sciences, an MBA from the University of Toronto, Canada, and a Global Executive
MBA from the University of St. Gallen, Switzerland.
Frank Herzog is a German citizen and joined SIG in 2021 as CFO. Prior to SIG, Mr Herzog
was the CFO of VFS Global, based in Zurich and Dubai. He has previously held finance
leadership positions as CFO of Dematic Group in the USA and Head of Corporate Finance
at the KION Group in Germany. He also gained extensive experience in investment banking
at Goldman Sachs, Rothschild and Citigroup. Mr Herzog holds a graduate business degree
from WHU Koblenz, Germany, and a Master’s of Business Administration degree from the
University of Texas, USA.
Ian Wood is a Swiss and British citizen and joined SIG in 2018 as Chief Supply Chain Officer
and became CTO in 2020. Previously, Mr Wood spent 15 years at Honeywell, initially in the
supply chain function and later as vice president and general manager of various business
units within the home and building technologies segment. Prior to joining Honeywell,
Mr Wood worked at A.T. Kearney and Ford Motor Company. Mr Wood holds a Master’s
degree in manufacturing engineering from Cambridge University, UK, and an MBA from
Cranfield School of Management, UK.
Suzanne Verzijden is a Dutch citizen and joined SIG in 2022 as Chief People and Culture
Officer. In addition, Ms Verzijden is a member of the supervisory board of Essity (since 2021).
Prior to SIG, Ms Verzijden held various senior HR management positions with global
responsibilities at Philips. Most recently she was Head of HR for the Personal Health sector
as well as Head of HR for Benelux, where she focused on building and implementing an
integrated people strategy to enable customer success. Ms Verzijden has lived and worked
in the USA, the Netherlands, Chile and Spain. She holds an MSc in Business Administration
from the Erasmus University Rotterdam, the Netherlands, as well as a double Masters’
degree in International Management from Esade (Spain) / Erasmus University Rotterdam
(the Netherlands).
José Matthijsse is a Dutch citizen and has held the position of President and General
Manager Europe since she joined SIG in 2021. She came with considerable experience of
the food and beverage industry, having held senior and general management positions
at FrieslandCampina and Heineken in a number of countries in Europe, the Americas and
Africa. Ms Matthijsse holds a Master’s degree in Food Science Technology from Wageningen
Agricultural University, the Netherlands.
Fan Lidong is a Chinese citizen and has held the position of President and General Manager
Asia Pacific North since 2022. Mr Lidong has worked for SIG for a total of 12 years, serving
the company as Chief Operating Officer China before being promoted to CEO China
and SVP Technology Asia Pacific in 2020. Previously, he worked at Sidel as Managing
Director China and held leadership positions at Mars and Tetra Pak. Mr Lidong has more
than 30 years’ industry experience. He holds a double Master’s degree from the Swedish
University of Agricultural Sciences and the China Europe International Business School.
Annual Report 2022 Governance
Corporate Governance Report
204
Angela Lu is a Chinese citizen and joined SIG in 2022 as President and General Manager
Asia Pacific South. Ms Lu spent more than ten years with Nestlé in Switzerland and several
Asia Pacific key markets, including Singapore, Thailand, China and Australia, in various
leadership positions. Previously she worked at leading multinational FMCG companies,
including The Coca-Cola Company, Fonterra and Gillette. Most recently she worked at Yeo
Hiap Seng, a leading brand in the Asian drinks market. Ms Lu holds a Bachelor’s degree in
Industrial Management Engineering (Marketing) from Tongji University, China, and an MBA
from Nanyang Technological University, Singapore.
Ricardo Rodriguez is a Brazilian and Spanish citizen and has served as President and
General Manager Americas since 2015. Mr Rodriguez joined the Company in 2003 and
previously served as Director and General Manager, South America and Technical Service
Director, South America. Prior to joining the Company, Mr Rodriguez worked at Tetra Pak
in a number of roles, including general manager of the Belo Horizonte branch, key account
manager and technical service manager. He holds a BSc in aeronautical/mechanical
engineering from the Technological Institute of Aeronautics, Brazil, an MBA from the Getúlio
Vargas Foundation and graduated from a specialist business management course at IMD-
Lausanne, Switzerland.
Abdelghany Eladib is an Egyptian citizen and has held the position of President and General
Manager Middle East and Africa since 2021. Prior to his current position, he held the position
of Chief Operating Officer in the SIG Combibloc Obeikan joint venture companies, which he
joined in 2017. Mr Eladib started his career in 1992 at Procter & Gamble, where he held various
positions. Later on, he worked at other leading FMCG companies in the region. He holds a
BSc in Mechanical Engineering and an MBA and a Diploma in Strategic Management from
the Jack Welsh Institute, USA.
Ross Bushnell is a United States citizen and joined SIG as President Scholle IPN, an
SIG Company, in 2022. Prior to the acquisition of Scholle IPN by the Company, he had
served as President and CEO of Scholle IPN since 2019. Before this, Mr Bushnell was the
VP and General Manager of the Global Flexibles division of Sonoco Products, LLC, and
President of Mondi’s North American Flexibles Division. He has also held key leadership
positions within Graham Partners, including President & CCO of Comar and President &
CEO of Convergence Packaging, and management roles including SVP and GM of Food
Plastics at Silgan Plastics. Mr Bushnell received a BSc in English and Political Science from
the University of South Dakota and an MBA from Harvard University’s Graduate School of
Business Administration, USA.
8.2 Number of permissible activities
In the interest of good governance, the Company’s Articles of Association limit the number
of outside mandates of the members of the Group Executive Board as follows:
(i) up to one mandate in listed firms11;
(ii) up to five mandates in non-listed firms; and
(iii) up to five mandates in foundations, associations, charitable organisations and other
legal entities.
11 Pursuant to art. 727 para. 1 number 1 CO.
Annual Report 2022 Governance
Corporate Governance Report
205
Such a mandate is deemed to be any activity in superior governing or administrative
bodies of legal entities that are obliged to register in the commercial register or any
comparable foreign register, other than the Company and any entity controlled by or
controlling the Company. The Board of Directors shall ensure that such activities do not
conflict with the exercise of their duties for the Group. Functions in various legal entities
that are under joint control, or in entities in which this legal entity has a material interest,
are counted as one function.
8.3 Management contracts
The Company has not entered into any management contracts with persons outside the
Group for the delegation of executive management tasks.
9.
Compensation, shareholdings and loans
All details of compensation, shareholdings and loans are listed in the Compensation Report
on > pages 215–235.
10.
Shareholders’ rights of participation
10.1 Restrictions of voting rights and representation
Each share that is entered in the share register entitles the shareholder to one vote.
The voting rights may be exercised only after a shareholder has been registered in the
Company’s share register as a shareholder with voting rights up to a specific qualifying
day (record date) designated by the Board of Directors. On application, persons acquiring
shares are entered in the share register as shareholders with voting rights without
limitations, provided they expressly declare that they have acquired the shares in their
own name and for their own account and that they comply with the disclosure requirement
stipulated by the FMIA. Entry in the share register of registered shares with voting rights is
subject to the approval of the Company.
Entry may be refused based on the grounds set forth in art. 7 paras. 3, 4, 5 and 6 of the
Articles of Association. The respective rules have been described in Section 2.6 “Limitations
on transferability and nominee registrations” of this Corporate Governance Report. If the
Company does not refuse to register the applicant acquirer as a shareholder with voting
rights within 20 calendar days upon receipt of the application, the acquirer is deemed to be
a shareholder with voting rights. Acquirers who are not eligible for registration are entered
in the share register as shareholders without voting rights. The corresponding shares are
considered as not represented at the shareholders’ meeting. A revocation of the statutory
restrictions of voting rights requires the approval of a simple majority of votes cast,
regardless of the number of shareholders present or shares represented. Abstentions and
invalid votes do not count as votes cast.
The rights of shareholders to participate in shareholders’ meetings comply with legal
requirements and the Articles of Association (https://www.sig.biz/investors/en/governance/
articles-of-association). Every shareholder may personally participate in the shareholders’
meetings and cast their vote(s), or be represented by a proxy appointed in writing, who need
not be a shareholder, or be represented by the independent proxy. Shareholders may issue
their power of attorney and instructions to the independent proxy by post or electronically.
Annual Report 2022 Governance
Corporate Governance Report
206
The independent proxy is obliged to exercise the voting rights that are delegated to them
by shareholders according to their instructions. Should they have received no instructions,
they shall abstain from voting.
On an annual basis, the Annual General Meeting elects the independent proxy with the
right of substitution. Their term of office terminates at the conclusion of the next Annual
General Meeting. Re-election is possible. Should the Company have no independent
proxy, the Board of Directors shall appoint an independent proxy for the next Annual
General Meeting.
10.2 Quorum requirements
Unless a qualified majority is stipulated by law or the Articles of Association, the Annual
General Meeting makes its decisions on the basis of the relative majority of valid votes
cast, regardless of the number of shareholders present or shares represented. Resolutions
require the approval of a simple majority of votes represented.
10.3 Convening the Annual General Meeting
The Annual General Meeting is convened by the Board of Directors or, if necessary, by
the Company’s independent auditors. Extraordinary shareholders’ meetings may be held
when deemed necessary by the Board of Directors or the Company’s auditors. Liquidators
may also call a shareholders’ meeting. Furthermore, Extraordinary shareholders’ meetings
must be convened if resolved at a shareholders’ meeting or upon written request by one or
more shareholder(s) representing in aggregate at least 10% of the Company’s share capital
registered in the commercial register.
Shareholders’ meetings are convened by publication in the Swiss Official Gazette of
Commerce (Schweizerisches Handelsamtsblatt) at least 20 days prior to the date of the
meeting. Such publication and letters of invitation must indicate the date, time and venue
of the meeting, the items on the agenda and the wording of any motions proposed by the
Board of Directors or by shareholders who have requested the convening of a shareholders’
meeting or the inclusion of an item on the meeting’s agenda.
10.4
Inclusion of agenda items
The Board of Directors is responsible for specifying the agenda. Registered shareholders
with voting rights individually or jointly representing at least 5% of the Company’s share
capital or shares with a nominal value of at least CHF 1 million may request that an item be
placed on the agenda of a shareholders’ meeting of the Company, provided they submit
details thereof to the Company in writing at least 45 calendar days in advance of the
shareholders’ meeting concerned.
10.5 Registration in the share register
Only shareholders who are registered in the share register as shareholders with voting
rights on a specific qualifying day (record date) designated by the Board of Directors
are entitled to attend a shareholders’ meeting and to exercise their voting rights. In the
absence of a record date designated by the Board of Directors, the record date shall be
ten days prior to the shareholders’ meeting.
Annual Report 2022 Governance
Corporate Governance Report
207
11.
Change of control and defence measures
11.1
Duty to make an offer
The Company does not have a provision on opting-out or opting-up in its Articles of
Association. Thus, the provisions regarding the legally prescribed threshold of 331/₃% of the
voting rights for making a public takeover offer set out in art. 135 para. 1 FMIA are applicable.
11.2 Change-of-control clauses
There are no change-of-control provisions in favour of any member of the Board of Directors
and/or the Group Executive Board and/or other management personnel. However, in the
event of a change of control, restricted share units, performance share units and shares
subject to transfer restrictions or vesting periods granted to members of the Board and the
Group Executive Board may be subject to accelerated vesting or early lifting of restrictions
under the applicable plans.12
12. Auditors
12.1
Duration of the mandate and term of
office of the auditor in charge
The auditors are elected annually at the Annual General Meeting for a term of one year.
The grounds for selection of external auditors are customary criteria such as independence,
quality, reputation and cost of services. PricewaterhouseCoopers AG, St. Jakobstrasse 25,
4002 Basel, Switzerland (“PwC”), have been the statutory auditors of the Company since the
migration of the Company from Luxembourg to Switzerland on 27 September 2018 and were
re-elected at the AGM 2022. Prior to the Company’s migration, the independent registered
auditors (réviseur d’entreprises agréé) of SIG Group AG (formerly SIG Combibloc Group AG
and before that SIG Combibloc Group Holdings S.à r.l.) were PricewaterhouseCoopers,
Société cooperative, Luxembourg, who had been the independent registered auditors of
the Company since the period ended 31 December 2015. The main Group companies are
also audited by PwC.
Bruno Rossi (audit expert) as auditor in charge has been responsible for auditing the financial
statements of the Company as well as the consolidated financial statements of the Group
since March 2020. The lead auditor has to rotate every seven years in accordance with
Swiss law.
12
For further information on compensation with respect to a change of control, please refer to > page 230 of the
Compensation Report.
Annual Report 2022 Governance
Corporate Governance Report
208
12.2 Fees
The fees charged by PwC as the auditors of the Company and of the Group companies
audited by it, as well as its fees for audit-related and additional services, are as follows:
(In CHF thousand)
Audit
Audit-related services
Tax and other services
Total
2022
1,819
480
184
2,483
12.3
Informational instruments pertaining to the auditors
The Board exercises its responsibilities for supervision and control of the external auditors
through the Audit and Risk Committee. The Audit and Risk Committee assesses the
professional qualifications, independence, quality and expertise of the auditors as well as
the fees paid to them each year and prepares an annual appraisal. It recommends to the
Board proposals for the shareholders’ meeting regarding the election or dismissal of the
Company’s independent auditors. The assessment of the performance of the external
auditors is based on key criteria, such as efficiency in the audit process, validity of the
priorities addressed in the audit, objectivity, scope of the audit focus, quality and results of
the audit reports, resources used and the overall communication and coordination with the
Audit and Risk Committee and the Group Executive Board, as well as the audit fees. The
Audit and Risk Committee further coordinates cooperation between the external auditors
and the internal auditors.
Prior to the audit, the auditors agree the proposed audit plan and scope, approach, staffing
and fees of the audit with the Audit and Risk Committee. Special assignments from the
Board of Directors are also included in the scope of the audit.
PwC presents to the Audit and Risk Committee, on an annual basis, a comprehensive
report on the results of the audit of the consolidated financial statements, the findings on
significant accounting and reporting matters, and findings on the internal control system,
including any significant changes in the Company’s accounting policies, the selection
and disclosure of critical accounting estimates, and the effect of alternative assumptions,
estimates or accounting policies on the Company’s financial statements as well as the
status of findings and recommendations from previous audits. The results and findings
of this report are discussed in detail with the CFO and the Audit and Risk Committee, with
representatives of the auditor explaining their activities and responding to questions. The
Audit and Risk Committee also monitors whether and how the Group Executive Board
implements measures based on the auditor’s findings.
Each year, the Audit and Risk Committee evaluates the effectiveness of the external audit,
performance, fees and independence of the auditors and the audit strategy. The Board of
Directors discusses and reviews the scope of the audits and the resulting reports. On this
basis, it decides on any changes or improvements to be made. Representatives of the auditor
attend individual meetings or individual agenda items of meetings of the Audit and Risk
Committee. There is also regular contact between the auditors, the Group Executive Board
and the Audit and Risk Committee outside of meetings. PwC as external auditor of the Group
partially attended the five ordinary meetings of the Audit and Risk Committee in 2022 at which
they discussed, amongst other topics, the scope and certain results of the audit and reviews.
Annual Report 2022 Governance
Corporate Governance Report
209
Additional services or consulting assignments are delegated to the auditors only if they
are permitted by law and the auditor’s code of independence. The auditors are required to
confirm that their performance of these additional services will not affect the independence
of their auditing mandate. The Audit and Risk Committee pre-approves all permitted non-
audit services performed by the auditors, and reviews the compatibility of non-audit
services performed by them with their independence requirements. This procedure is aimed
at ensuring PwC’s independence in its capacity as auditors to the Group. PwC monitors
its independence throughout the year and confirms its independence to the Audit and
Risk Committee annually.
13.
Information policy
The Group is committed to communicating in a timely and transparent way to shareholders,
potential investors, financial analysts and customers. To this end, the Board of Directors
takes an active interest in fostering good relations and engagement with shareholders and
other stakeholders. In addition, the Company complies with its obligations under the rules of
SIX Swiss Exchange, including the requirements on the dissemination of material and price-
sensitive information.
The Group publishes an annual report that provides audited consolidated financial
statements, audited financial statements and information about the Company, including
the business results, strategy, products and services, corporate governance, corporate
responsibility and executive compensation. The annual report is published within four
months after the 31 December balance sheet date. The annual results are also summarised
in the form of a press release. In addition, the Company releases results for the first half of
each year within three months after the 30 June balance sheet date. The published half-
year and annual consolidated financial statements comply with the requirements of Swiss
company law, the listing rules of SIX Swiss Exchange and International Financial Reporting
Standards (“IFRS”). Furthermore, the Group publishes trading statements for the first and
third quarters in the form of a press release. The quarterly press releases contain unaudited
financial information prepared in accordance with IFRS.
The Company’s annual report, half-year report and quarterly releases are distributed
pursuant to the rules and regulations of SIX Swiss Exchange and are announced via press
releases and investor conferences in person or via telephone. An archive containing annual
reports, half-year reports, quarterly releases and related presentations can be found at
https://investor.sig.biz.
The corporate responsibility section of the annual report is prepared in accordance with
the Global Reporting Initiative (GRI) G4 Guidelines Core option. An archive containing the
corporate responsibility reports that have been prepared in previous years can be found
in the “Responsibility” section at https://www.sig.biz/investors/en/responsibility/corporate-
responsibility-report.
The Group reports in accordance with the disclosure requirements of art. 124 FMIA and
the ad hoc publication requirements of art. 53 of the listing rules of SIX Swiss Exchange.
At https://investor.sig.biz/en-gb/contact/,
interested parties can register for the free
Company email distribution list in order to receive direct, up-to-date information at the time
of any potentially price-sensitive event (ad hoc announcements). Ad hoc announcements
may be viewed at https://www.sig.biz/investors/en/news-events/media-releases at the same
time as notification to SIX Swiss Exchange and for three years thereafter.
Annual Report 2022 Governance
Corporate Governance Report
210
Notices to shareholders are made by publication in the Swiss Official Gazette of Commerce
(Schweizerisches Handelsamtsblatt). To the extent the Company communicates with its
shareholders by mail, such communications will be sent by ordinary mail to the recipient
and address recorded in the share register or in such other form as the Board of Directors
deems fit.
14. General blackout periods
All directors, officers and employees of any Group company are subject to general blackout
periods between the last date of the period for which financial performance data for public
release are established and the close of trading on SIX Swiss Exchange one trading day
after the public release of the financial performance data for such period. During general
blackout periods, these persons are prohibited from trading in any shares of the Company
and in any option or conversion rights or any other financial instruments whose price is
materially dependent (meaning a degree of more than 33%) on the shares of the Company
(together the “Relevant Securities”).
Furthermore, members of the Board of Directors, the Group Executive Board as well as
certain employees of the Group notified by the Group General Counsel may only make
transactions in Relevant Securities during designated trading windows, subject to pre-
clearance by the Group General Counsel. The opening and closing of a trading window is
determined by the CEO in consultation with the CFO and the Group General Counsel.
Any exception to the aforementioned rules must be cleared through the Group General
Counsel.
Annual Report 2022 Governance
Corporate Governance Report
211
The Company’s website:
https://www.sig.biz
Ad hoc messages (pull system):
https://www.sig.biz/investors/en/news-events/media-releases
Subscription for ad hoc messages (push system):
https://www.sig.biz/investors/en/contact
Financial reports:
https://www.sig.biz/investors/en/performance/historical-financial-statements
Corporate Responsibility reports:
https://www.sig.biz/investors/en/responsibility/corporate-responsibility-report
Corporate calendar:
https://www.sig.biz/investors/en/news-events/overview
Contact address:
The SIG Group Investor Relations Department can be contacted through the website or by
telephone, email or letter.
SIG Group AG
Attn. Ingrid McMahon
Laufengasse 18
8212 Neuhausen am Rheinfall
Switzerland
+41 52 543 1224
Ingrid.mcmahon@sig.biz
Financial calendar
The important dates for 2023 include:
Publication of 2022 full-year results and date of earnings call
28 February 2023
Annual General Meeting 2023
Publication of Q1 2023 trading statement
Publication of 2023 half-year report
Publication of Q3 2023 trading statement
20 April 2023
4 May 2023
25 July 2023
24 October 2023
Annual Report 2022 212
Compensation
213
Letter from the Chair
of the Compensation Committee
215 Compensation Report
1.
Introduction
2. Compensation governance
3. Compensation principles
4.
Compensation framework
for the Board of Directors
5.
Compensation framework
for the Group Executive Board
6. Shareholding Guidelines
7.
Loans granted to members of
the Board of Directors or the
Group Executive Board
236
Report of the statutory auditor
Annual Report 2022 Compensation
Letter from the Chair of the Compensation Committee
213
Letter from the Chair of the
Compensation Committee
Colleen Goggins
Chair of the Compensation
Committee
Dear Shareholders,
On behalf of the Board of Directors and the Compensation Committee, I am pleased to
introduce the Compensation Report of SIG Group AG (“SIG” or the “Company”) for the
year ended 31 December 2022. This report on compensation complements our business,
financial, social responsibility and corporate governance reports, and describes SIG’s
compensation system and its governance, as well as the underlying principles that
ensure that compensation, particularly the variable components, is linked to the overall
performance of SIG.
The principles guiding SIG’s compensation framework are to attract, engage and retain
executives and employees, to drive sustainable performance and to encourage behaviours
that are in line with SIG’s values as well as with the long-term interests of shareholders. The
Compensation Committee regularly assesses, reviews and develops the compensation
framework to ensure that it is aligned with these principles.
As a continuation of prior-year efforts and to accommodate the two successful acquisitions
of Scholle IPN and Evergreen Asia completed during 2022, the Compensation Committee
worked closely with the committee overseeing and supporting the integration process.
This included the planning for the personnel changes to the Group Executive Board. On the
compensation side, the performance of these acquisitions from a financial and particularly
from a share price-related perspective is reflected via the outcomes of the variable
compensation. This is especially the case for the long-term compensation element, which
makes up a meaningful part of the overall compensation packages of SIG’s Group Executive
Board members.
Annual Report 2022 Compensation
Letter from the Chair of the Compensation Committee
214
SIG is convinced that Diversity, Equity and Inclusion (DE&I) as well as an open corporate
culture are important drivers for innovation and successful collaboration. We are committed
to creating a workplace where employees are treated fairly with equal employment,
compensation and development opportunities. SIG has committed to running gender pay
analyses in future years, even though not required to do so under applicable local law,
thereby underpinning our commitment towards a gender-diverse workplace. We are happy
to provide you with additional insights into our initiatives and activities for our most valuable
asset – our employees – in the Corporate Responsibility Section of the Annual Report.
Please refer to > pages 145–153 to have a deeper dive into the topic.
A strong focus on ESG matters is integral to SIG’s business strategy and activities, including
the compensation framework. An ESG metric has been included in the short-term incentive
since 2021, and its weighting was increased from 5% to 10% for this reporting year, 2022.
Targeting an objective, relative and independent perspective on SIG’s ESG performance,
the Compensation Committee decided to continue using the respected EcoVadis
evaluation as an assessment tool. The EcoVadis score reflects SIG’s performance in the
areas of Environment, Labour & Human Rights, Ethics and Sustainable Procurement, and
encompasses a comprehensive view of ESG with relevance for all SIG employees.
In line with our values, we welcome feedback from shareholders and maintain a high level
of engagement with them. In 2022, we continued to work on addressing their comments
and questions. As part of its standard annual work, the Compensation Committee regularly
assesses, reviews and develops the compensation framework to foster sustainable
performance. Following periodic assessment of the compensation framework, the
Compensation Committee has concluded that the principles, elements and processes
currently in place continue to be appropriate for SIG. We are therefore not proposing any
changes to the framework, which provides stability and comparability, as well as alignment
of shareholder and management interests through its strong focus on performance-based,
variable compensation. The Compensation Committee will continue to regularly monitor
market trends and developments and to assess opportunities for further development.
At the upcoming Annual General Meeting (“AGM”), we will ask our shareholders to approve
prospectively, in binding votes, the maximum aggregate amount of compensation for
the Board of Directors until the next AGM in 2024 and the maximum aggregate amount
of compensation for the Group Executive Board for the year 2024. Furthermore, this
Compensation Report will be submitted to shareholders for a non-binding, consultative vote.
We believe that this report provides a comprehensive overview of SIG’s compensation
philosophy and approach. We are convinced that our remuneration system rewards
performance in a balanced and sustainable manner that is well aligned with shareholders’
interests and equips SIG with effective tools in a competitive work environment.
On behalf of SIG, the Compensation Committee and the entire Board of Directors, I would
like to thank you, our shareholders, for your contribution and your continued trust in SIG.
Colleen Goggins
Chair of the Compensation Committee
Annual Report 2022 Compensation
Compensation report
215
Compensation report
1.
Introduction
This Compensation Report has been prepared in compliance with Swiss laws and regulations,
including the Ordinance against Excessive Compensation in Listed Stock Companies. The
report is in line with the Directive on Information relating to Corporate Governance of SIX and
also takes into account the recommendations set out in the Swiss Code of Best Practice for
Corporate Governance of economiesuisse.
The Compensation Report contains the following information:
• A description of the compensation governance and compensation framework at SIG
• The compensation of the members of the Board of Directors (“Board”) for 2022
• The compensation of the Group Executive Board (“GEB”) for 2022
2.
Compensation governance
Figure 1: compensation governance at SIG
Articles of
Association
approve
defined in
Annual
General
Meeting
Compensation
governance
decisions by …
Board of
Directors &
Compensation
Committee
defined in
Compensation
Committee
Charter
The compensation governance structure at SIG involves three primary bodies, as depicted
in Figure 1: (1) the Board, (2) the Compensation Committee, acting in an advisory capacity
for the Board, and (3) SIG’s shareholders at the Annual General Meeting. The Compensation
Committee Charter and the Articles of Association outline and define the roles and
responsibilities of these bodies. Figure 2 shows the relevant provisions on compensation in
the Articles of Association.
Annual Report 2022 Compensation
Compensation report
216
Figure 2: relevant provisions on compensation in the Articles of Association of SIG
Principles for the compensation of
the members of the Board and the
Group Executive Board (art. 24 to 26)
Members of the Board of Directors receive fixed compensation, while members of the
Group Executive Board receive fixed and variable compensation. The variable compensation
may include short-term and long-term variable compensation components. These are
governed by quantitative and qualitative performance criteria that take into account the
performance of SIG.
Compensation approvals
by the General Meeting (art. 27)
The AGM has the authority to approve the maximum aggregate amount of compensation
for the Board of Directors for the ensuing term of office and the maximum aggregate
amount of compensation for the Group Executive Board for the following year.
Supplementary amounts available for
members joining the Group Executive
Board or being promoted within the
Group Executive Board to CEO after the
relevant approval of compensation by
the AGM (art. 27, para. 4)
Retirement benefits (art. 30)
SIG is authorised to pay compensation to such members of the Group Executive Board
without further approval even in excess of the maximum aggregate amount approved
by the AGM for the relevant year, provided that the sum of such excess amount is not
greater than 40% of the approved maximum aggregate amount of compensation for
the Group Executive Board for such year.
SIG may establish or join one or more independent pension funds for occupational
pension benefits. Instead, or in addition, SIG may directly offer retirement benefits (such as
pensions, purchase of health care insurances, etc.) outside the scope of occupational
pension benefit regulations to members of the Group Executive Board and may pay them
out after retirement.
The Articles of Association can be found on the SIG home page for investors:
https://www.sig.biz/investors/en/governance/articles-of-association or downloaded
directly here: https://cms.sig.biz/media/5241/aoa-sig-combibloc-group-ag.pdf
The roles of the AGM and the Compensation Committee are described in more detail in
the following paragraphs. The general split and delegation of responsibilities and authorities
between the Board, the Compensation Committee and the AGM is illustrated in Figure 3.
Figure 3: authority table regarding compensation
Compensation principles (Articles of Association)
Compensation strategy and guidelines
Key terms of compensation plans and programmes for
members of the Board of Directors and Group Executive Board
Total compensation for members of the Board of Directors
Total compensation and benefits for members of the
Group Executive Board
Employment and termination agreements for the CEO
Employment and termination agreements for members
of the Group Executive Board
Proposal
CEO
Compensation
Committee
Board of
Directors
AGM
Approval
(subject to
AGM approval)
Approval
(in case of changes,
binding vote)
Proposal
Proposal
Proposal
Proposal
Proposal
Review
Approval
Approval
Approval
(subject to
AGM approval)
Approval
(subject to
AGM approval)
Approval
Approval
Approval
(binding vote)
Approval
(binding vote)
Compensation Report
Individual total compensation of the CEO
Individual total compensation of other members
of the Group Executive Board
Proposal
Approval
Approval
(consultative vote)
Proposal
Proposal
Review
Approval
Approval
Annual Report 2022 Compensation
Compensation report
217
Role of the shareholders - shareholder engagement
In line with SIG’s Articles of Association, particularly Art. 11 and Art. 27, the Board will submit
three separate compensation-related resolutions for shareholder approval at the 2023
AGM, as illustrated in Figure 4:
Figure 4: overview of votes at the 2023 AGM
AGM 2023
AGM 2024
Vote at AGM 2023
Maximum aggregate
amount for the term
AGM 2023 – AGM 2024
Vote at AGM 2023
Maximum aggregate
amount for FY 2024
Board vote
(binding)
Group Executive
Board vote
(binding)
Report vote
(consultative)
Vote at AGM 2023
Compensation
Report FY 2022
2022
2023
2024
Role of the Compensation Committee - activities during 2022
The Compensation Committee consists of three independent, non-executive Board
members who are elected annually and individually by the Annual General Meeting for a one-
year term until the following Annual General Meeting. The main role of the Compensation
Committee is to assist the Board in fulfilling its responsibilities relating to the compensation
of the members of the Board and the Group Executive Board of SIG. The Compensation
Committee supports the Board in discharging its duties; proposes guidelines regarding the
compensation of the members of the Board; the Chief Executive Officer (“CEO”) and the
other members of the Group Executive Board, proposes the maximum aggregate amounts
of compensation to be submitted to the Annual General Meeting for approval; and assists
the Board in preparing the related motions for the Annual General Meeting.
The Compensation Committee Chair ensures that the Board members are kept informed
in a timely and appropriate manner of all material matters within the Compensation
Committee's area of responsibility.
The Compensation Committee Chair convenes the meetings of the Compensation
Committee as often as the business affairs of SIG require, but at least three times a year. In
2022, the Compensation Committee held nine meetings. Some of the meetings were held as
video conferences or hybrid meetings. The topics covered are described in Figure 5. Details
of the Compensation Committee members are provided in the Corporate Governance
Report on > pages 194 and 195. All members of the Compensation Committee had full
meeting attendance during 2022.
Annual Report 2022 Compensation
Compensation report
218
Figure 5: topics covered by the Compensation Committee in 2022
Agenda Item
Jan
Feb
Jul
Oct
Nov
Dec
Principles
and design of
compensation
plans
Market intelligence (recent developments in
compensation, legal, governance landscapes)
Review of general target framework for Short-Term
Incentive and Long-Term Incentive Plan
Policy review and updates implemented
– Performance Share Unit Plan
– Restricted Share Unit Plan
– Equity Investment Plan
– Board of Directors Pay Policy
Compensation
Group Executive
Board
Short-Term Incentive Plan
– Target achievement 2021
– Target setting 2022
– Define KPI measures 2023
Long-Term Incentive Plan
– Recommendation of plan participants and target
setting for grant 2022
– Plan 2019-2022: target achievement and
vesting multiple
Group Executive Board: employment matters related to
succession planning and organisational development
Review of compensation for members
of the Group Executive Board
Review of compensation for the Board of Directors
Compensation
Board of Directors
General framework
Shareholding Guidelines Assessment
Communication
Approval of share-based incentive programmes to ensure
successful integration of newly acquired businesses
Pay equity road map
Swiss Pension Fund tutorial
AGM invitation, including determination of the maximum
amounts of compensation for the Board of Directors
(for the term AGM 2022 to AGM 2023) and the
Group Executive Board (year 2023)
Analysis of the compensation voting results of the AGM
and the proxy advisers’ feedback
Compensation Report
A performance review of the Board, the Committees and the Group Executive Board was
conducted by the Nomination and Governance Committee during 2022, including certain
members of the Compensation Committee, to ensure close coordination.
The Compensation Committee may ask members of the Group Executive Board, one
or more senior managers in the human resources function and third parties to attend
meetings in an advisory capacity and may provide them with appropriate information.
However, the Compensation Committee also regularly holds private sessions (ie. without
the presence of members of the Group Executive Board, senior managers or third parties).
Further, all members of the Board may attend any Compensation Committee meeting
as guests. The Chair of the Board and the members of the Group Executive Board did
not attend the meeting when their own compensation was discussed. The Chair of the
Compensation Committee reported to the Board after each meeting on the substance of
the meeting and explained the proposals of the Compensation Committee to the Board.
The documents and the minutes of the Compensation Committee meetings are available
to all members of Board.
Annual Report 2022 Compensation
Compensation report
219
The Compensation Committee may decide on consult external advisers on
specific compensation matters.
In 2022, the Compensation Committee appointed
HCM International Ltd. (“HCM”) as an external independent adviser on certain compensation
matters as well as on target setting for the Long-Term Incentive Plan, as described in
the section Long-Term Incentive Plan. Other than for the aforementioned advice on
compensation matters, HCM was not appointed for any other mandates in 2022.
3.
Compensation principles
The compensation framework of SIG reflects the commitment to attract, engage and
retain top talent globally and to align the interests of SIG leaders with those of shareholders.
SIG’s overall compensation framework is long-term in nature and designed to reward
outperformance and effectively address underperformance, with performance defined
relative to targets and, in some cases, relative to peers. SIG endeavours to make its
compensation principles simple and transparent for the benefit of shareholders, Board and
management. The compensation principles are illustrated in Figure 6. They are reviewed by
the Compensation Committee on a regular basis.
Figure 6: SIG compensation framework, objectives and principles
Objectives and principles
Be competitive to
attract and retain top
talent and at the same
time be reasonable in
terms of amount and
composition
Be balanced in terms
of weight between
base salary,
Short-Term Incentive
Plan and Long-Term
Incentive Plan
Be long-term as well
as simple and
transparent
Be developed
to reward
outperformance
and effectively tackle
underperformance
Be fully compliant
with relevant laws
and regulations
Be aligned with
shareholders'
interests
To assess SIG’s compensation system not only from an internal equity perspective but also
from an external competitiveness perspective, compensation is periodically benchmarked
against that of similar roles in comparable companies. The Compensation Committee uses
this analysis to review the composition, level and structure of the compensation of the
Board and the Group Executive Board on a regular basis.
For the Board, Swiss listed industrial companies are considered the most relevant reference
market for compensation comparison, reflecting the specific governance regime and
regulatory aspects of the Swiss market1. For the Group Executive Board, a broader industry-
related European comparator group is considered appropriate to assess compensation
practices, structure and pay levels given SIG’s international footprint and reflecting the
recruiting market2. In both cases, size criteria apply.
1
The comparator group used for the compensation benchmarking analysis of the Board conducted in 2021 consisted of the
following Swiss listed industrial companies: ARYTZA, Barry Callebaut, BKW, Bucher, Clariant, DKSH, dormakaba, Dufry,
Flughafen Zürich, Geberit, Georg Fischer, OC Oerlikon, SFS Group, Straumann, Sulzer, Vifor Pharma.
2 The comparator group used for the compensation benchmarking analysis of the Group Executive Board conducted in 2021
consisted of the following comparators: Aalberts, AMS, ARYTZA, Barry Callebaut, BKW, Bucher, Clariant, DKSH, DMG MORI,
dormakaba, Duerr, Dufry, Flughafen Zürich, GEA, Georg Fischer, IMI, Kingspan, OC Oerlikon, SFS Group, Spirax-Sarco,
Straumann, Sulzer, Vifor Pharma, Weir.
Annual Report 2022 Compensation
Compensation report
220
Figure 7 provides an overview of the compensation elements for the Board and the
Group Executive Board:
Figure 7: overview of compensation elements for
the Board of Directors and the Group Executive Board
Board of Directors
Group Executive Board
Annual base salary
Annual base fee
Annual Committee fee(s)
Pension contributions
Other benefits
Short-Term Incentive Plan
Long-Term Incentive Plan
n
o
i
t
a
s
n
e
p
m
o
c
n
o
i
t
a
s
n
e
p
m
o
c
s
t
n
e
m
e
e
l
s
t
n
e
m
e
e
l
d
e
x
F
i
l
e
b
a
i
r
a
V
Where required by Swiss law, members of the Board of Directors may be insured via the
pension fund of the Company. In this case, contributions will be fully funded by the respective
member of the Board. Additional details for each compensation element are included later
in this report.
4.
Compensation framework for the Board of Directors
Compensation overview for the Board of Directors
To underline the role of the Board to perform independent oversight and supervision of
SIG, the entire compensation of the Board is fixed and does not contain any variable pay
component.
The compensation for the members of the Board of Directors has two components: a
fixed annual base fee and one or more fixed annual Committee fees for assuming the
role of Chair of a Board Committee or member of a Board Committee. Only ordinary
members of the Board are entitled to the additional Committee fees. The compensation
of the Chair of the Board consists of the annual base fee only. Required employee social
security contributions under the relevant country’s applicable law are included in the
compensation. Where required by Swiss law, members of the Board of Directors are
insured via the Company’s pension plan. However, the employer pension contribution
is entirely funded by the respective member of the Board of Directors. This means that
the member of the Board pays for the totality of the pension contributions (employee
and employer portion), while the Company does not make any contributions. In 2022,
only the Chair of the Board was insured via the Company’s pension plan. No additional
compensation components such as lump-sum expenses or attendance fees are awarded
to any member of the Board. The compensation levels for the members of the Board of
Directors remained unchanged from those established in 2018.
Annual Report 2022
Compensation
Compensation report
221
The amounts of the annual base fee and annual Committee fees for the Chair and the
members of the respective Committees are illustrated in Figure 8.
Figure 8: overview of the Board of Directors’ fees
Annual Committee fees (in CHF, gross)
Annual base
fee (in CHF,
gross)
Audit and Risk
Compensation
Nomination and
Governance
Chair
Member
Chair
Member
Chair
Member
Chairperson
550,000
Not entitled
Ordinary member
175,000
50,000
25,000
40,000
15,000
40,000
15,000
The individual sum of the annual base fee and, where applicable, the annual Committee fees
per member are paid 60% in cash and 40% in equity (blocked SIG shares).
The equity component is intended to further strengthen the long-term focus of the Board
in performing its duties and to align the Board members’ interests with those of SIG’s
shareholders. Both the cash and equity elements are paid out on a quarterly basis in four
equal instalments. A three-year blocking period is applied to the SIG shares, expiring at the
third anniversary of each respective allocation. This approach is illustrated in Figure 9.
Figure 9: compensation approach of the Board of Directors
Equity element
40%
Cash element
3-year blocking period
Equity
element
60%
Cash
element
Pay mix
Term
Term +1
Term +2
Term +3
Annual Report 2022 Compensation
Compensation report
222
Compensation awarded to the Board of Directors (audited)
Table 1 summarises the compensation for 2022 of the nine non-executive members of the
Board. The Board was expanded at the AGM in 2022 to include one additional member, as
outlined in the Corporate Governance Report.
Table 1: total compensation of the Board of Directors in 2022 (1 January–31 December),
including comparative figures for the prior year
Members of
the Board of
Directors on
31 December 2022
Board
member-
ship
ARC1
CC2
NGC3
Settled in
cash, CHF⁴
Settled in
SIG shares,
CHF⁵
Other
compen-
sation
elements
Social
security
payments,
CHF⁶
Total com-
pensation
earned in
2022, CHF
Total com-
pensation
earned in
2021, CHF
Andreas Umbach
Chair
Chair
330,000⁷
220,068
Chair
135,000
90,030
-
-
34,774
584,842
584,389
12,831
237,861
237,895
Matthias Währen
Colleen Goggins
Werner Bauer
Wah-Hui Chu
Mariel Hoch
Martine Snels
Abdallah al Obeikan
Laurens Last11
Nigel Wright12
Total
🌑
🌑
🌑
🌑
🌑
🌑
🌑
🌑
🌑
1 Audit and Risk Committee.
2 Compensation Committee.
3 Nomination and Governance Committee.
Chair
129,000
86,028
9,109⁸
23,151
247,288
227,236
🌑
🌑
🌑⁹
🌑
🌑
🌑
🌑
129,000
86,028
-
12,211
227,239
227,236
123,000
82,028
8,686⁸
22,024
235,738
216,623
129,000
86,028
🌑⁹
123,000
82,032
105,000
70,047
78,750
52,537
🌑
-
-
-
-
-
-
-
15,397
230,425
230,421
-
205,032
121,52710
12,732
187,779
130,36710
9,532
140,819
-
-
-
-
1,281,750
854,825
17,795
142,652 2,297,023
1,975,694
4 Represents gross amounts paid, prior to any deductions such as employee social security and income withholding tax.
5
Represents gross amounts settled in blocked SIG shares, prior to any deductions such as employee social security and income withholding tax. The number of
blocked SIG shares is determined by dividing each Board member’s individual compensation amount (settled in shares) for one award cycle by the average closing
price of the SIG share over the first ten trading days of the third month of the quarter for which the blocked SIG shares are granted.
6 Employer social security contributions.
7
Includes employer pension contributions of CHF 46,880 funded by the Chair through a reduction of the cash portion of the fee.
8
9
Dividend equivalents attributable to the years 2020, 2021 and 2022 paid in line with the vesting of restricted share units (“RSUs"), granted in the financial year 2019
as the equity element of the Board fee. Dividend equivalents were paid in cash, consistent with dividend paid on actual shares.
Martine Snels replaced Nigel Wright as member of the NGC and has become a member of the ARC as of the Annual General Meeting in April 2022.
The respective numbers disclosed reflect the Committee remuneration for the period from 7 April 2022 to 31 December 2022.
10 Martine Snels and Abdallah al Obeikan were elected as members of the Board at the Annual General Meeting in April 2021.
The total compensation disclosed for 2021 reflects the period from 21 April 2021 to 31 December 2021.
11 Laurens Last was elected as member of the Board at the Annual General Meeting in April 2022. The respective numbers disclosed reflect
the period from 7 April 2022 to 31 December 2022.
12 Mandate until AGM 2022. Nigel Wright was associated with Onex Corporation, a former major shareholder of SIG, and waived any form of compensation for his
services on the Board in 2021 and 2022.
Annual Report 2022 Compensation
Compensation report
223
Reconciliation of compensation approved for and paid to the Board of Directors
The reconciliation of the approved and granted amounts is illustrated in Figure 10.
Figure 10: reconciliation of compensation of the Board of Directors
2021
2022
2023
Start of year
01.01.2022
End of year
31.12.2022
AGM 2021
21.04.2021
AGM 2022
07.04.2022
AGM 2023
20.04.2023
CHF 1.5m
Compensation for the
period AGM 2021 to
December 2021
CHF 0.5m
Compensation for the
period January 2022 to
AGM 2022
CHF 1.8m
Compensation for the period
AGM 2022 to December 2022
CHF 2.3m
Compensation for 2022
CHF 2.0m
Compensation for the term
AGM 2021 to AGM 2022
CHF 1.8m
Compensation for the term
AGM 2022 to December 2022
CHF 2.3m
Amount approved by shareholders at the
AGM 2021 (for the term AGM 2021 to AGM 2022)
CHF 2.7m
Amount approved by shareholders at the
AGM 2022 (for the term AGM 2022 to AGM 2023)
Annual Report 2022
Compensation
Compensation report
224
5.
Compensation framework for the Group Executive Board
Compensation overview for the Group Executive Board
Compensation for the members of the Group Executive Board is provided through the
following main components: an annual base salary and pension benefits/other benefits,
which together form the fixed compensation component; a Short-Term Incentive Plan
(“STIP”) and a Long-Term Incentive Plan (“LTIP”), which together form the variable
compensation component. See Figure 11.
Figure 11: illustrative overview of the compensation framework of the Group Executive Board in 2022
Long-Term
Incentive Plan
(LTIP) at target
Short-Term
Incentive Plan
(STIP) at target
LTIP grant
3-year performance/vesting period
Payment of Short-Term
Incentive Plan (STIP)
0–200% of target value
Base salary
Base salary
+ Pension contributions
+ Pension contributions
+ Other benefits
+ Other benefits
Vesting of
Long-Term
Incentive Plan (LTIP)
0–200% of number of
granted performance
share units
Pay mix
Reporting year
Reporting year +1
Reporting year +2
Reporting year +3
Fixed compensation components:
Annual base salary
The base salary is the main fixed compensation component paid to the members of the
Group Executive Board at SIG. It is paid in cash in 12 equal monthly instalments unless local
law requires otherwise. The level of base salary is determined by the specific role performed
and the responsibilities accepted within that role. It rewards the experience, expertise and
know-how necessary to fulfill the demands of a specific position. In addition, the market
value of the role in the location where the Company competes for talent is considered.
Pension benefits/other benefits
As the Group Executive Board is international in its nature, the members participate in the
benefit plans available in the country of their employment contract. Benefits mainly include
insurance and health care plans as well as pension coverage, where applicable. SIG’s pension
benefits for members of the Group Executive Board employed under a Swiss employment
contract exceed the legal requirements of the Swiss Federal Law on Occupational
Annual Report 2022 Compensation
Compensation report
225
Retirement, Survivors’ and Disability Pension Plans (BVG) and are in line with the benefits
offered by other international companies. Members of the Group Executive Board who are
under a foreign employment contract are insured commensurately with market conditions
and with their positions. The plans vary in accordance with the local competitive and legal
environment and are structured in accordance with local practice and in line with local legal
requirements.
In line with general market practice and Swiss law, new members joining the Group Executive
Board may be granted replacement awards to compensate for forfeited compensation at
prior employers caused by their joining SIG. Such replacement awards are structured on
a “like-for-like” basis regarding instrument and performance conditions and never exceed
the forfeited amount at the prior employer, which is verified based on written documentation
provided by the recipient. If applicable, they are reported accordingly in the compensation
table for the relevant financial year.
In addition, the Group Executive Board members are also provided with certain executive
perquisites and benefits in kind according to competitive market practice in the country
of their employment (eg. company cars). The fair value of these benefits is part of the
compensation and disclosed in Table 2.
Variable compensation components:
The variable compensation consists of a short-term incentive and a long-term incentive
component.
Short-Term Incentive Plan (“STIP”)
Under the STIP, the members of the Group Executive Board are rewarded for the
achievement of pre-defined annual targets for multiple key performance indicators
(“KPIs”), including financial aspects (for details see Figure 12) as well as an ESG element.
Incorporating an ESG target in SIG’s short-term variable compensation underpins the
ongoing commitment to sustainability rooted in SIG’s business strategy and activities.
The assessment of achievements relating to the ESG element is based on the Company’s
EcoVadis score, enabling an objective and independent measurement approach. Essentially,
EcoVadis assesses the quality of a company’s sustainability management system through
its policies, actions and results. The assessment focuses on 21 criteria grouped into four
areas: Environment, Labour & Human Rights, Ethics and Sustainable Procurement. These
areas encompass a wide range of ESG activities and have relevance for all SIG employees.
The targets for both the financial KPIs and the ESG KPI are determined by the Board, based
on the advance recommendation of the Compensation Committee each year, following a
well-established process.
To calibrate the achievement curve for the following year for financial KPIs, a financial
target achievement level is identified based on the budget of the respective year. Minimum
and maximum performance achievement levels are defined, taking into consideration,
among other metrics, the previous year’s performance level as well as the notion that higher
payouts should require proportionally higher levels of performance achievement. This leads
to more ambitious target curves to achieve the maximum payout.
The target payout for the ESG KPI requires an improvement in the Company’s EcoVadis
score, thereby aligning compensation with the Company’s ambition to remain a leader in
ESG matters.
Annual Report 2022 Compensation
Compensation report
226
To determine the payout, the performance against each KPI is assessed individually in a
range from 0% to 200% and then combined according to the assigned weightings (see
Figure 12). The overall payout is capped at 200% of the target amount and can fall to zero
should the minimum performance achievement level for each KPI not be attained.
Group Executive Board members with regional responsibilities have KPIs reflecting their
regional as well as Group performance. To strengthen the focus of members with regional
responsibility on their region’s KPIs, the weighting of regional targets is set at 60%, while the
weighting of Group KPIs is 40%.
For other Group Executive Board members with a primary Group Function focus, including
the CEO and the CFO, performance is assessed based on Group performance only. The
framework is illustrated in Figure 12.
In 2022, the target individual short-term incentive equals 100% of the base salary for the
CEO and between 62% and 83% of the respective base salaries for other members of the
Group Executive Board. Information regarding the target achievement levels is provided
later in this report.
Figure 12: overview of the Group Executive Board STIP compensation framework in 2022
Target individual
short-term incentive
(100% of base salary for CEO,
62-83% of base salary for
other members of the
Group Executive Board)
Performance regarding
financial targets and
EcoVadis score
Actual individual
short-term incentive
(0–200% of individual
target short-term incentive)
KPIs
Group adjusted EBITDA
p
u
o
r
G
Group core revenue
Group free cash flow
EcoVadis score (sustainability metric)
l Regional adjusted EBITDA
a
n
o
g
e
R
Regional core revenue
i
Regional adjusted operating net working capital
(ONWC) as a % of revenue
Weight 2022
Members of the Group
Executive Board WITHOUT
regional responsibility
Members of the Group
Executive Board WITH
regional responsibility
55%
20%
15%
10%
50%
30%
20%
100%
40%
60%
Long-Term Incentive Plan (“LTIP”)
The LTIP offers eligible employees the opportunity to participate in the long-term success of
SIG, thereby reinforcing their focus on longer-term performance and aligning their interests
with those of shareholders. The following provides an outline of the plan specifics.
The mechanics behind the LTIP are illustrated in Figure 13. At the beginning of each three-
year vesting period, a certain number of performance share units (“PSUs”) is granted to
each participant, which represents a contingent entitlement to receive SIG shares in the
Annual Report 2022 Compensation
Compensation report
227
future. The number of granted PSUs depends on (i) the individual LTIP grant level in CHF,
determined by the Board each year but never exceeding 200% of the base salary of any
member of the Group Executive Board, including the CEO, and (ii) the reference price of one
PSU. The reference price reflects the 20-day volume-weighted share price before the grant
date as per the PSU regulations. In 2022, the LTIP grant in CHF amounted to 189% of the
base salary for the CEO and between 98% and 146% of the base salary for other members
of the Group Executive Board.
Figure 13: overview of the principles of the LTIP
LTIP grant in CHF
Reference price of one
performance share unit
(PSU) at grant date
Performance conditions
50%
3-year
relative TSR1 with a
cap at 100% for a
negative absolute TSR
25%
3-year
cumulative diluted
adjusted EPS
25%
3-year
cumulative FCF
200%
0%
200%
0%
200%
0%
Value of the vested
LTIP in CHF
Share price at
vesting date
Number of
granted PSUs
0-200% of the
number of granted PSUs
Number of PSUs
vested in SIG shares
1 SPI® ICB Industry 2000 “Industrials“ Total Return Index.
Performance period = 3 years
After the three-year vesting period, a certain number of the granted PSUs vest, depending
on the performance of SIG during that time. The number of PSUs vested in SIG shares may
vary between 0% and 200% of the granted PSUs and is based on the achievement of the
following three weighted performance measures.
Performance
measures
Weight
Description
Relative total
shareholder return (rTSR)
Adjusted earnings
per share (EPS)
Free cash flow (FCF)
50%
25%
25%
Total shareholder return
measured relative to the
SPI® ICB Industry 2000
”Industrials“ Total
Return Index
SIG’s cumulative
diluted adjusted
earnings per share
SIG’s cumulative
free cash flow
Annual Report 2022 Compensation
Compensation report
228
To determine the multiple of the granted PSUs ultimately vested in SIG shares, the
performance against each performance measure will be assessed individually in a range
from 0% to 200% and then combined according to the assigned weightings. This means
that a low performance on one performance measure can be balanced by a higher
performance on another performance measure. Overall, the combined vesting multiple will
never exceed 200%. If the performance on each of the three performance measures lies
below the respective minimum performance requirement, the resulting combined vesting
multiple is 0% and consequently no PSUs vest. Furthermore, if the absolute TSR falls below
zero over the respective performance period, the vesting factor of the relative TSR metric
would be capped at 100%.
The threshold, target and cap (together the “targets”) performance levels for the three
LTIP performance measures for the 2022 grant are illustrated in Figure 14 and were set by
the Compensation Committee based on a robust, stringent approach supported by HCM
International Ltd. The vesting curves for each performance measure under the LTIP are
defined with support the balanced performance and payout situations below and above the
target and allow for a realistic performance-related chance to realise vesting.
Figure 14: overview of the vesting curve of the LTIP 2022
Performance measures
3-year total shareholder
return measured relative to
the SPI® ICB Industry 2000
“Industrials” Total Return
Index
3-year cumulative diluted
adjusted earnings per share
3-year cumulative
free cash flow
Threshold
(0% vesting)
Target
(100% vesting)
Cap
(200% vesting)
–16% of index
–0% compared to index
+10% of index
64.4% of target
83.0% of target
100% target as set by
the Board of Directors
100% target as set by
the Board of Directors
135.6% of target
117.0% of target
Given the market sensitivity of the EPS and FCF targets, the Board of Directors has decided to
provide additional insights into the robust target-setting process by disclosing the targets for
these measures on a relative basis. Investors’ return expectations on market value, stock risk
profile, investment projections and current profitability levels were taken as a starting point
and translated into EPS and FCF targets, using multifactor valuation models and statistical
analyses in order to establish an appropriate link between LTIP payouts and the value created
for investors. The results of the outside-in approach were assessed against historical company
performance, as well as equity analysts’ expectations and the strategic plan as approved by
the Board, in order to reinforce the Compensation Committee’s and Board’s confidence in the
overall quality and robustness of the EPS and FCF targets. The Compensation Committee
discussed different options for target setting and the corresponding vesting curves for each
performance measure and submitted a recommendation to the Board, which approved the
respective vesting curves for the LTIP 2022 grant.
In addition to a failure to meet the threshold performance level, other circumstances under
which no PSUs vest include various forfeiture clauses relating to termination of employment
during the vesting period of the LTIP.
Annual Report 2022 Compensation
Compensation report
229
The LTIP awards are subject to a clawback provision. In the event of a financial restatement
due to a material non-compliance of the Company with applicable financial reporting
requirements, or in the event of fraudulent behaviour or other wilful misconduct by a plan
participant, the Board of Directors may review the specific facts and circumstances and
take clawback actions.
The Board has the right to allocate other, potentially non-recurring, equity-based awards
to employees. Any such awards allocated to members of the Group Executive Board are
reported accordingly in the compensation table for the relevant financial year.
Compensation mix
Figure 15 illustrates the compensation mix for the CEO and the Group Executive Board
at target level. This compensation mix reflects SIG’s high-performance orientation and
represents the Company’s strong emphasis on aligning the interests of the Group Executive
Board and the shareholders to create long-term shareholder value, by making a large part
of compensation dependent on the achievement of long-term goals.
Figure 15: overview of the compensation mix for the CEO and
the Group Executive Board (excl. CEO) at target level
29%
fixed
components
41%
fixed
components
24
46
CEO
%
5
25
71%
variable
components
37
GEB
excl. CEO
% average
31
10
22
59%
variable
components
Base salary
Pension benefits /
other benefits
Target short-term
incentive
Granted long-term
incentive
For the Group Executive Board members excluding the CEO, the fixed components (annual
base salary and pension benefits/other benefits) vary between 36% and 50% (41% on
average) of the total target compensation and the variable components vary between 50%
and 64% (59% on average) of total compensation as of 31 December 2022.
Employment conditions for the Group Executive Board
All members of the Group Executive Board have employment contracts of unlimited
duration and a notice period of 12 months, ensuring compliance with applicable laws and
regulations. The employment contracts may provide, for a period of up to one year, post-
termination compensation for adherence to non-compete clauses. Payment for the non-
compete period, if any, amounts to a maximum of one year’s compensation, unless otherwise
Annual Report 2022 Compensation
Compensation report
230
required by local law. Such contracts do not include any contractual severance payments
or any change of control provisions other than accelerated vesting and/or unblocking of
unvested share awards from the LTIP.
In the event of a change of control, the LTIP will be terminated while settling contractual
claims as of the date of the change of control (which will be defined by the Board if
unclear). There are generally no special arrangements in place from which Group Executive
Board members (as well as Board members) could benefit in divergence from other plan
participants.
Compensation awarded to the Group Executive Board (audited)
Table 2 summarises the total compensation for the ten members of the Group Executive
Board active during 2022, with three members joining at the beginning of the year and one
in June, and one member leaving at the end of 2021. The total regular compensation for the
Group Executive Board amounted to CHF 13.0 million, while the total compensation, including
payments to the former member who left at the end of 2021, amounted to CHF 13.7 million.
Table 2: total compensation of the Group Executive Board in 2022,
including comparative figures for the prior year
CHF1 gross amounts
Annual base salary
Pension benefits
Short-term variable compensation²
Long-term variable compensation
(granted)³
Other benefits⁴
Social security contributions⁵
Total regular compensation
Payments to former executives
Accruals for non-compete agreements
Total compensation
Group Executive Board
(including the CEO)
2022
Group Executive Board
(including the CEO)
2021
Highest payment
2022
Samuel Sigrist (CEO)
Highest payment
2021
Samuel Sigrist (CEO)
3,557,210
469,396
2,738,412
4,875,000
678,735
725,059
13,043,812
685,331⁶
-
13,729,142
2,771,577
461,446
3,232,186
4,175,000
453,095
756,048
11,849,352
2,482,407⁷
380,518⁸
14,712,277
700,000
121,346
732,830
1,325,000
39,278
224,692
3,143,147
-
-
700,000
129,121
1,109,479
1,325,000
39,416
256,147
3,559,163
-
-
3,143,147
3,559,163
1
Exchange rates 2022: AED/CHF 25.99787; EUR/CHF 1.00514; CNY/CHF 14.20261; BRL/CHF 18.51197; USD/CHF 0.95476; SGD/CHF 69.23617.
Exchange rates 2021: AED/CHF 24.88252; EUR/CHF 1.08142; THB/CHF 2.86176; CNY/CHF 14.16967; BRL/CHF 16.95797.
2
3
Represents an estimate of effective short-term variable compensation for 2022 which will be paid in 2023, after the publication of SIG’s audited consolidated
financial statements.
Amount granted under the LTIP; the number of PSUs that vests depends on achievement of the performance targets. The number of granted PSUs is equal to the
participants’ granted amounts under the LTIP divided by the volume-weighted average of the closing prices of the SIG share over the last 20 trading days prior to the grant
date as per the PSU regulations (for the 2019–2021 LTIPs: by the fair value of one PSU at the grant date). See note 31 to the consolidated financial statements for additional
details. In addition, this item includes a one-time grant of RSUs (vesting in SIG ordinary shares) to the value of CHF 150,000 to one of the new members of the Group
Executive Board. The RSUs vest after a three-year service period.
4
Comprise payments related to additional insurances, car benefits and other allowances and benefits. This item also includes a payment of CHF 156,710 to one of the
new members of the Group Executive Board, which has been paid to partly compensate for forfeited awards at a former employer.
5 Employer social security contributions include estimates for the Short-Term Incentive Plan as well as for the Long-Term Incentive Plan at target level on an accrual basis.
6
7
8
Includes payments to the former member of the Group Executive Board who left the Group Executive Board on 31 December 2022. The amount includes employer
social security contributions.
Includes payments to two former members of the Group Executive Board who left the Group Executive Board during 2020. The amount includes employer social security
contributions.
This item includes accruals for payment for a non-compete agreement to one member of the Group Executive Board who left the Company in 2022.
The amount includes employer contributions to social security insurances on an accrual basis.
Annual Report 2022
Compensation
Compensation report
231
Approved versus total regular compensation for the Group Executive Board
The total compensation for the Group Executive Board for 2022 is CHF 13.7 million (including
social security contributions), which is below the maximum aggregate compensation amount
of CHF 17.0 million approved for 2022 at the Annual General Meeting on 21 April 2021. This
amount includes CHF 0.7 million relating to payments to one former member of the Group
Executive Board.
Short-Term Incentive performance assessment
For 2022, the members of the Group Executive Board received base salary, payments under
the Short-Term Incentive Plan, awards under Long-Term Incentive Plans, and pension and
other benefits in line with the compensation framework, as detailed in Figure 11. For the
Group as a whole, as illustrated in Figure 16 below, financial KPIs for 2022 were only partly
overachieved. The Company was able to improve its EcoVadis score in 2022 versus the
prior year and able to achieve the ambitious targets that had been set. Please refer to the
Corporate Responsibility Report on > pages 167–169 for further information relating to the
Group’s environmental and sustainability performance.
Figure 16: 2022 performance at Group level relevant for STIP performance assessment
Target achievement
0%
50%
100%
150%
200%
Performance
measure
Group adjusted
EBITDA
Group core
revenue
Group free
cash flow
EcoVadis
score1
Actual target achievement
1
The EcoVadis score is a third-party assessment of our environmental, social and governance performance, measured relatively.
The Company received a platinum rating in 2022. For the Company‘s sustainability performance and its EcoVadis platinum rating,
see > page 83 of the Corporate Sustainability Report.
The target achievement for the 2022 STIP was 104.7% for the CEO (158.5% in 2021) and
between 56.8% and 113.6% for the other members of the Group Executive Board (98.5% to
181.0% in 2021).
Assessment of actual compensation paid/granted to the Group Executive Board
In comparison to the previous year, the total regular compensation of the Group Executive
Board increased by 10.1%. With the exception of a single salary increase for a member of
the Group Executive Board, based in a high-inflation country, all target salaries remained
at the same level and were not adjusted within the yearly salary review. The overall
Annual Report 2022 Compensation
Compensation report
232
movement is mainly driven by the personnel changes to the Group Executive Board with an
additional three members by 31 December 2022 versus the previous year and, in addition,
by the performance-related aspects of the STIP, as described previously, as well as some
exchange rate movements.
Personnel changes in the Group Executive Board:
• The President and General Manager of Asia Pacific left the Group Executive Board
effective 31 December 2021. Due to the Group’s growth in Asia Pacific, this role on the
Group Executive Board has been split into an Asia Pacific North role and an Asia Pacific
South role with effect from 1 January 2022.
• A new function of a Chief People and Culture Officer was created, effective from
1 January 2022.
• As a consequence of the acquisition of the Scholle IPN business, a new member joined
the Group Executive Board in June 2022. He took on the newly created role of President
of Scholle IPN.
In connection with these appointments, salary levels and compensations were reassessed.
Impact of currency exchange rates:
Seven members of the Group Executive Board are paid in foreign currencies. Their
compensation is converted into Swiss francs for the disclosures in this report and has
changed due to shifts in currency exchange rates even though the compensation amount in
local currency has remained unchanged. This leads to slightly different compensation levels
in comparison to the previous reporting period.
Figure 17 illustrates the 2022 actual compensation mixes for the CEO and the Group
Executive Board, which underlines the strong focus on the short- and long-term variable
compensation elements.
Figure 17: overview of the actual compensation mix in 2022 for the CEO and
the Group Executive Board (excl. CEO) (reflects the amount granted under the LTIP)
29%
fixed
components
41%
fixed
components
24
46
CEO
%
5
25
71%
variable
components
37
GEB
excl. CEO
% average
31
10
22
59%
variable
components
Base salary
Pension benefits /
other benefits
Paid short-term
incentive
Granted long-term
incentive
Annual Report 2022 Compensation
Compensation report
233
Long-Term Incentive performance assessment
In 2019, the PSU Plan was introduced, and the members of the Group Executive Board and
selected other members of management were granted PSUs for the first time. Since the
introduction of this plan, a PSU grant has been made yearly. For an overview of the annual
PSU Plans and the outstanding PSUs, see note 31 to the consolidated financial statements.
As the first grant under the current LTIP was in 2019, the first vesting occurred on
31 March 2022. The share price and operational performance in the three-year period
from 2019 to 2022 was strong and above the already high expectations, resulting
in a total vesting multiple of 180%. In particular, the free cash flow and relative TSR
performance measures were significantly overachieved, reflecting the outstanding
financial performance of SIG during the performance period and the value created for our
shareholders. In both cases, the vesting factor cap of 200% was applied, thereby limiting
the vesting under this plan.
The composition of the total vesting multiple is illustrated in Figure 18.
Figure 18: vesting multiple of the performance share unit grant 2019
for the period 2019 to 2022
Vesting multiple
0%
50%
100%
150%
200%
Performance
measure
3-year total
shareholder return
measured relative to
the SPI® ICB Industry
2000 “Industrials”
Total Return
3-year cumulative
diluted adjusted
earnings per share
3-year cumulative
free cash flow
Vesting multiple achieved
6.
Shareholding Guidelines
In order to further strengthen the long-term focus of the members of the Board and the
Group Executive Board and to increase the alignment of their interests with those of SIG’s
shareholders, Shareholding Guidelines are in place. These guidelines complement the long-
term vesting periods under the LTIP and essentially ensure a high level of alignment beyond
a limited number of years (ie. instead of post-vest holding requirements) and extending over
the entire term of office of the respective Board or Group Executive Board member.
Members of the Board (including the Chair) are required to build up an investment in SIG
shares worth the equivalent of 100% of their annual base fees within a three-year build-up
period from the first equity grant date.
Annual Report 2022 Compensation
Compensation report
234
Similarly, members of the Group Executive Board are required to build up an investment in
SIG shares worth the equivalent of 100% of their annual base salary, or 200% for the CEO,
within a five-year build-up period, starting with their first grant under the equity-based
compensation plan.
To assess whether the thresholds have been met, all blocked or unblocked SIG shares and
vested or unvested entitlements to SIG shares (such as RSUs, excluding PSUs received as
compensation), are considered. Additionally, SIG shares acquired privately, either outright
or beneficially, by the members of the Board or Group Executive Board or their immediate
family members count towards meeting the thresholds.
If the Shareholding Guidelines are not met by a member of the Board or a member of the
Group Executive Board at the end of the build-up period, non-fulfilment consequences,
including sale restrictions on equity instruments received as compensation, would apply
until the Shareholding Guidelines are met. Adherence is assessed by the Compensation
Committee on an annual basis.
Shareholdings (audited)
The following tables show the shareholdings of the members of the Board of Directors
as well as the members of the Group Executive Board as of 31 December 2022 and
31 December 2021.
Board of Directors
Table 3: shareholdings of the Board of Directors as of 31 December 2022,
including comparative figures for the prior year
Number of directly or
beneficially held SIG shares1
Number of indirectly
held shares
Total shareholdings
31 Dec. 2022
Total shareholdings
31 Dec. 2021
Andreas Umbach
Matthias Währen
Colleen Goggins
Werner Bauer
Wah-Hui Chu
Mariel Hoch
Martine Snels
Abdallah al Obeikan
Laurens Last
Nigel Wright
Total
100,407
34,414
39,690
59,516
51,915
20,141
5,683
5,127
2,437
n/a⁵
-
-
-
-
-
-
-
1,827,110²
35,129,733³
n/a⁵
100,407
34,414
39,690
59,516
51,915
20,141
5,683
1,832,237
35,132,170
n/a⁵
90,121
30,206
35,669
55,495
48,081
16,120
1,853
1,828,963
n/a⁴
-
319,330
36,956,843
37,276,173
2,106,508
1 Ordinary registered shares of SIG Group AG, including blocked shares.
2 Shares indirectly held by Abdallah al Obeikan via his shareholding in Al Obeikan Group for Investment Company CJS.
3 Shares indirectly held by Laurens Last via Clean Holding B.V.
4 Laurens Last was elected as member of the Board of Directors at the 2022 AGM, so he was not in office on 31 December 2021.
5 The mandate of Nigel Wright ended at the 2022 AGM, so the Shareholding Guidelines no longer apply for him.
The annual shareholding assessment showed full compliance with the regulation for all
members of the Board of Directors, also reflecting that for some members the build-up
period is still ongoing.
Annual Report 2022 Compensation
Compensation report
235
Group Executive Board
Table 4: shareholdings of the members of the Group Executive Board as of 31 December 2022,
including comparative figures for the prior year
Samuel Sigrist
Frank Herzog
Ian Wood
Suzanne Verzijden
Ricardo Rodriguez
Abdelghany Eladib
José Matthijsse
Angela Lu
Fan Lidong
Ross Bushnell
Lawrence Fok
Total
Number of directly
or beneficially held
SIG shares1
Number of
RSUs held²
Number of
indirectly held
shares
Total
shareholdings
31 Dec. 2022
Total
shareholdings
31 Dec., 2021
210,000
-
100,000
-
10,000
7,920
-
-
181,478
-
n/a⁴
-
-
-
6,831
-
-
-
-
-
-
-
-
-
–
225,000
-
-
-
-
-
n/a⁴
n/a⁴
210,000
200,063
–
100,000
6,831
235,000
7,920
-
-
181,478
-
n/a⁴
741,229
-
75,000
n/a3
250,002
7,420
-
n/a3
n/a3
n/a3
188,572
721,057
1 Ordinary registered shares of SIG Group AG.
2 The RSUs will vest in SIG shares, subject to the fulfilment of a three-year service period.
3
Fan Lidong, Angela Lu, Suzanne Verzijden and Ross Bushnell joined the Group Executive Board during 2022, so the Shareholding Guidelines did not apply to them as
of 31 December 2021.
4 Lawrence Fok left the Group Executive Board as of 31 December 2021, so the Shareholding Guidelines no longer apply to him.
Despite the ongoing build-up period for members of the Group Executive Board, the
members in office since the Company’s IPO in 2018 already fulfil the required shareholdings.
For other members, the compliance check will be done after the build-up period has expired.
7.
Loans granted to members of the Board of Directors or
the Group Executive Board (audited)
SIG’s Articles of Association do not allow loans to be granted by the Group or its
consolidated subsidiaries to members of the Board or the Group Executive Board. As
a consequence, no loans were granted to or are outstanding to either Board or Group
Executive Board members.
Annual Report 2022 Compensation
Report of the statutory auditor
236
Report of the statutory auditor
to the General Meeting of SIG Group AG
Neuhausen am Rheinfall
Report on the audit of the Compensation Report
Opinion
We have audited the Compensation Report of SIG Group AG (the Company) for the year
ended 31 December 2022. The audit was limited to the information on compensation,
loans and advances pursuant to articles 14 to 16 of the Ordinance against Excessive
Compensation in Listed Companies Limited by Shares (Ordinance) in the tables marked
'audited' on page 222, page 230 and pages 234-235 of the Compensation Report.
In our opinion, the information on compensation, loans and advances in the accompanying
Compensation Report complies with Swiss law and articles 14 to 16 of the Ordinance.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing
(SA-CH). Our responsibilities under those provisions and standards are further described
in the 'Auditor’s responsibilities for the audit of the Compensation Report' section of our
report. We are independent of the Company in accordance with the provisions of Swiss law
and the requirements of the Swiss audit profession, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Other information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the tables
marked 'audited' in the Compensation Report, the consolidated financial statements, the
financial statements and our auditor’s reports thereon.
Our opinion on the Compensation Report does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Compensation Report, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the audited financial information in the Compensation Report or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Annual Report 2022 Compensation
Report of the statutory auditor
237
Board of Directors' responsibilities for the Compensation Report
The Board of Directors is responsible for the preparation of a Compensation Report in
accordance with the provisions of Swiss law and the company's articles of incorporation,
and for such internal control as the Board of Directors determines is necessary to enable the
preparation of a Compensation Report that is free from material misstatement, whether due
to fraud or error. The Board of Directors is also responsible for designing the compensation
system and defining individual compensation packages.
Auditor’s responsibilities for the audit of the Compensation Report
Our objectives are to obtain reasonable assurance about whether the information on
compensation, loans and advances pursuant to articles 14 to 16 of the Ordinance is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Swiss law and SA-CH will always
detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this
Compensation Report.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement in the Compensation Report,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made.
We communicate with the Board of Directors or its relevant committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that
we have complied with relevant ethical requirements regarding independence, and
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied.
PricewaterhouseCoopers AG
Bruno Rossi
Audit expert
Auditor in charge
Manuela Baldisweiler
Audit expert
Basel, 23 February 2023
Annual Report 2022 238
Financials
239
Consolidated financial statements
343
Financial statements of the Company
Annual Report 2022 Financials ► Consolidated financial statements
Consolidated financial statements
Financials
1
239
Consolidated financial statements
for the year ended 31 December 2022
SIG Group AG
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes
Basis of preparation
Our operating performance
Our operating assets and liabilities
Our financing and financial risk management
Our Group structure and related parties
Our people
Other
Report of the statutory auditor on the audit of the consolidated financial statements
See note 3 for further details on the consolidated financial statements.
240
241
242
243
244
251
267
284
303
319
328
337
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
2
240
Consolidated statement of profit or loss and other comprehensive income
(In € million)
Revenue
Cost of sales
Gross profit
Other income
Selling, marketing and distribution expenses
General and administrative expenses
Other expenses
Share of profit/(loss) of joint ventures
Profit from operating activities
Finance income
Finance expenses
Net finance expense
Profit before income tax
Income tax expense
Profit for the period
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translations of foreign operations:
- recognised in translation reserve
- transferred from translation reserve
Cash flow hedges:
- effective portion of changes in fair value
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans
Total other comprehensive income, net of income tax
Total comprehensive income
Basic earnings per share (in €)
Diluted earnings per share (in €)
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
2,779.9
(2,204.7)
575.2
2,061.8
(1,577.2)
484.6
24.7
(110.6)
(200.6)
(173.9)
-
114.8
35.9
(61.9)
(26.0)
88.8
(51.0)
37.8
43.1
-
38.3
(81.8)
(0.4)
37.4
0.10
0.10
78.6
(90.8)
(181.8)
(33.2)
(1.6)
255.8
16.0
(47.4)
(31.4)
224.4
(52.3)
172.1
101.9
(3.5)
45.7
144.1
316.2
0.51
0.51
Note
6, 7
8
8
28
23
32
9
26, 27
27
30
10
10
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
3
241
Consolidated statement of financial position
As of
31 Dec.
2022
As of
31 Dec.
2021
Note
17
16
15
32
20
16
28
32
12
13
14
30
20
18
22
32
30
19
20
18
22
32
30
19
20
24
24
24
503.8
460.3
402.7
18.0
26.8
1,411.6
18.8
0.6
60.0
1,667.8
243.6
4,246.2
114.6
35.9
6,387.5
7,799.1
1,036.8
489.2
46.3
60.9
26.6
116.2
1,776.0
17.4
2,185.5
261.3
104.6
21.1
378.0
2,967.9
4,743.9
3.4
2,868.6
(79.2)
(1.3)
263.7
3,055.2
7,799.1
304.5
279.9
194.5
4.4
40.4
823.7
4.2
0.6
46.0
1,270.5
174.6
2,920.5
230.2
23.9
4,670.5
5,494.2
666.3
29.4
42.1
56.0
19.1
88.2
901.1
9.4
1,693.2
147.4
129.0
17.7
268.2
2,264.9
3,166.0
3.0
2,140.0
(122.3)
(0.1)
307.6
2,328.2
5,494.2
(In € million)
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax assets
Other current assets
Total current assets
Non-current receivables
Investments in joint ventures
Deferred tax assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Employee benefits
Other non-current assets
Total non-current assets
Total assets
Trade and other payables
Loans and borrowings
Current tax liabilities
Employee benefits
Provisions
Other current liabilities
Total current liabilities
Non-current payables
Loans and borrowings
Deferred tax liabilities
Employee benefits
Provisions
Other non-current liabilities
Total non-current liabilities
Total liabilities
Share capital
Additional paid-in capital
Translation reserve
Treasury shares
Retained earnings
Total equity
Total liabilities and equity
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
4
242
Consolidated statement of changes in equity
(In € million)
Equity as of 1 January 2022
Profit for the period
Other comprehensive income
Items that may be reclassified to
profit or loss
Currency translations of foreign operations:
- recognised in translation reserve
Cash flow hedges:
- effective portion of changes in fair value 27
Items that will not be reclassified to
profit or loss
Remeasurement of defined benefit plans
Total other comprehensive income,
net of income tax
Total comprehensive income
for the period
Adjustment of goodwill
Issue of shares, net of costs
Share-based payments
Purchase of treasury shares
Settlement of share-based payment
plans and arrangements
Dividends
Total transactions with owners
Equity as of 31 December 2022
27
24, 27
31
24
24, 31
24
Equity as of 1 January 2021
Profit for the period
Other comprehensive income
Items that may be reclassified to
profit or loss
Currency translations of foreign operations:
- recognised in translation reserve
- transferred from translation reserve 26, 27
Items that will not be reclassified to
profit or loss
Remeasurement of defined benefit plans
Total other comprehensive income,
net of income tax
Total comprehensive income
for the period
Issue of shares
Share-based payments
Purchase of treasury shares
Settlement of share-based payment
plans and arrangements
Dividends
Total transactions with owners
Equity as of 31 December 2021
Annual Report 2022
24, 27
31
24
24
24
-
-
0.2
0.2
3.0
Share
capital
Note
Additional
paid-in
capital
Trans-
lation
reserve
Hedging
reserve
Treasury
shares
Retained
earnings
Total
equity
3.0
2,140.0
(122.3)
-
(0.1)
307.6 2,328.2
37.8
37.8
43.1
38.3
43.1
38.3
-
-
-
-
43.1
38.3
43.1
38.3
(38.3)
0.4
886.3
(9.8)
(147.9)
728.6
-
2,868.6
(79.2)
0.4
3.4
2.8
1,945.0
(220.7)
(81.8)
(81.8)
-
-
(81.8)
(0.4)
(44.0)
37.4
5.4
(16.3)
15.1
(5.3)
(38.3)
886.7
5.4
(16.3)
-
(147.9)
-
-
-
(1.2)
(1.3)
(0.1)
0.1
727.9
263.7 3,055.2
86.7 1,813.7
172.1
172.1
101.9
(3.5)
-
-
98.4
98.4
323.1
-
-
(128.1)
195.0
-
2,140.0
(122.3)
-
-
-
-
101.9
(3.5)
45.7
45.7
45.7
144.1
217.8
3.8
316.2
323.3
3.8
(0.7)
-
(128.1)
0.7
(0.7)
-
3.1
198.3
(0.1)
307.6 2,328.2
-
-
(0.7)
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
5
243
Consolidated statement of cash flows
(In € million)
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
Note
27
31
26
27
28
23
22
32
11
12, 13, 14
12
Cash flows from operating activities
Profit for the period
Adjustments for:
Depreciation and amortisation
Impairment losses
Net change in fair value of operating derivatives
Realised gain on settlement of deal-contingent derivatives
Share-based payment expense
Gain on sale of property, plant and equipment and non-current assets
Loss on sale of subsidiary
Gain on pre-existing interest in former joint ventures
Share of loss of joint ventures
Net finance expense
Interest paid
Payment of transaction and other costs relating to financing
Income tax expense
Income taxes paid, net of refunds received
Change in trade and other receivables
Change in inventories
Change in trade and other payables
Change in provisions and employee benefits
Change in other assets and liabilities
Net cash from operating activities
Cash flows from investing activities
Acquisition of businesses, net of cash acquired
Settlement of deal-contingent derivatives
Sale of subsidiary, net of cash disposed of
Acquisition of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and other assets 27
Proceeds from sale of securities
Interest received
27
27
26
12, 14
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of costs for placement of shares
Proceeds from loans and borrowings
Repayment of loans and borrowings
Settlement of deal-contingent derivative
Payment of lease liabilities
Purchase of treasury shares
Payment of dividends
Other
Net cash from/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents as of the beginning of the period
Effect of exchange rate fluctuations on cash and cash equivalents
Cash and cash equivalents as of the end of the period
Annual Report 2022
11
24
24
22
22
27
22
24
24
11
17
37.8
172.1
366.7
6.3
39.5
(16.6)
5.4
(0.5)
-
-
-
26.0
(52.2)
(3.3)
51.0
(94.4)
365.7
(34.0)
(53.1)
234.3
(14.4)
79.7
578.2
(700.4)
61.1
-
(299.7)
19.1
0.4
1.6
(917.9)
203.5
(3.6)
1,710.0
(1,189.0)
15.5
(34.5)
(16.3)
(147.9)
1.1
538.8
199.1
304.5
0.2
503.8
306.6
4.4
(7.4)
-
3.8
(0.8)
12.1
(48.8)
1.6
31.4
(40.6)
-
52.3
(73.0)
413.7
(4.0)
(9.4)
62.5
14.9
53.2
530.9
(63.6)
-
3.1
(245.9)
1.1
-
1.5
(303.8)
-
-
100.0
(239.5)
-
(26.7)
(0.7)
(128.1)
1.4
(293.6)
(66.5)
355.1
15.9
304.5
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
6
244
BASIS OF PREPARATION
This section includes information on the parent company and the Group. It further
contains details about the preparation of the consolidated financial statements, including
general accounting policies and topics. An overview of the structure of the consolidated
financial statements is also provided. In addition, the key events and transactions are
highlighted.
1
Reporting entity and overview of the Group
SIG Group AG (“SIG” or the “Company”) is domiciled in Switzerland and has since
28
September 2018 been listed on SIX Swiss Exchange. On 13 April 2022, the Company
changed its name from SIG Combibloc Group AG to SIG Group AG.
The consolidated financial statements for the year ended 31 December 2022 comprise the
Company and its subsidiaries (together referred to as the “Group”). The subsidiaries and
joint venture reflected in the consolidated financial statements are listed in note 26.
August 2022, see notes
For information about the acquisitions of Scholle IPN on 1 June 2022 and Evergreen Asia
on 2
4 and 27. For information about the acquisition of the
remaining shares of the joint ventures in the Middle East and the sale of the paper mill in
New Zealand in the year ended 31 December 2021, see notes
26 and 27.
The Group is a global system supplier of aseptic carton packaging solutions for both
beverage and liquid food products. Following the acquisitions in 2022, the Group also
offers bag-in-box and spouted pouch packaging solutions on a global basis for beverage,
food and non-food products as well as chilled carton packaging solutions in Asia. The
packaging solution offerings consist of filling lines and other related equipment, packaging
material and after-market services.
2
Preparation of the consolidated financial statements
The consolidated financial statements for the year ended 31 December 2022 have been
prepared in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board (“IASB”). They were approved by
the Company’s Board of Directors on 23 February 2023. They also comply with the Listing
Rules of SIX Swiss Exchange and with Swiss company law.
The consolidated financial statements are presented in Euros (“€” or “EUR”) as the Euro is
deemed to be the currency most representative of the Group’s activities. The functional
currency of the Company is Swiss Franc.
The consolidated financial statements are prepared on a historical
basis except for
certain financial instruments such as derivatives, contingent purchase price obligations
relating to business combinations and liabilities for cash-settled share-based payment
plans that are measured at fair value, certain components of inventory that are measured
at net realisable value and defined benefit obligations that are measured under the
projected unit credit method.
cost
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
7
245
3
Structure of the consolidated financial statements
The consolidated financial statements are structured into different sections that should
facilitate an overview and understanding of the Group’s operations, financial position and
performance. The notes are included in these sections based on their relevance and
provide information that is material and relevant to the consolidated financial statements.
BASIS OF
PREPARATION
1 Reporting
entity and
overview of the
Group
2 Preparation
of the
consolidated
financial
statements
3 Structure
OUR
OPERATING
PERFORMANCE
6 Revenue
7 Segment
information
8 Other income
and expenses
9 Alternative
performance
measures
10 Earnings per
share
11 Cash flow
information
of the
consolidated
financial
statements
4 Key events
and
transactions
5 General
accounting
policies and
topics
OUR
OPERATING
ASSETS AND
LIABILITIES
12 Property,
plant and
equipment
13 Right-of-use
assets
14 Intangible
assets
OUR FINANCING
AND
FINANCIAL RISK
MANAGEMENT
OUR GROUP
STRUCTURE
AND RELATED
PARTIES
OUR PEOPLE
OTHER
21 Capital
26 Group entities
management
27 Business
30 Employee
benefits
32 Income tax
33 Financial
22 Loans and
borrowings
23 Finance
income and
expenses
combinations
31 Share-based
28 Joint ventures
29 Related
parties
payment plans
and
arrangements
instruments
and fair value
information
34 Contingent
liabilities
35 Subsequent
events
15 Inventories
24 Equity
25 Financial risk
management
16 Trade and
other
receivables
17 Cash and
cash
equivalents
18 Trade and
other
payables
19 Provisions
20 Other assets
and liabilities
Significant accounting policies and
judgements,
in the respective notes throughout the
estimates and assumptions are provided
consolidated financial statements. Accounting policies that relate to the financial
statements as a whole or are relevant for several notes are included in this “Basis of
preparation” section.
information about management
4
Key events and transactions
The following key events and transactions took place in the year ended 31
or were announced in 2023 before the consolidated financial statements were approved.
December 2022
Acquisition of Scholle IPN
On 1 June 2022, the Group acquired 100% of the shares of Clean Flexible Packaging
Holding
B.V. (together with the acquired subsidiaries, “Scholle IPN”) from CLIL Holding B.V.
(“CLIL”). CLIL is controlled by Laurens Last and has subsequently been renamed Clean
Holding B.V. Scholle IPN provides packaging solutions for beverage, food and non-food
products.
The cash consideration for Scholle IPN amounted to €424.3 million. The Group also
transferred 33.75 million newly issued SIG shares with a fair value of €686.8
million to CLIL
as part of the consideration. In addition, there is contingent consideration of a maximum
of $300
December 2022). The
Group also repaid the external loans of Scholle IPN at the closing. For additional
27.
information about the acquisition, see note
million (with an estimated fair value of €113.2 million as of 31
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
8
246
Acquisition of Evergreen’s chilled carton business in Asia Pacific
(“Evergreen Asia”)
On 2 August 2022, the Group acquired Evergreen Asia from Evergreen Packaging
International LLC (“Evergreen”). Evergreen Asia offers chilled carton packaging solutions
in Asia.
The Group paid €329.5 million in cash (subject to customary closing adjustments) at the
time of the closing as consideration for Evergreen Asia. For additional information about
the acquisition, see note 27.
Financing of the acquisitions
The initial cash portion of the consideration for Scholle IPN and the repayment of the
external loans of Scholle IPN were initially financed by proceeds from an unsecured bridge
loan facility. A large portion of this unsecured bridge loan facility was repaid on 30 June
2022 using proceeds from an unsecured Schuldscheindarlehen (“SSD”, a private German
debt placement). The remaining proceeds from the unsecured SSD, together with
proceeds received from a placement of newly issued SIG shares, were used to finance the
Dollar-
consideration for Evergreen Asia. On 28 July 2022, the Group entered into a US
denominated term loan. The major part of the proceeds from the term loan was used to
repay the remaining portion of the unsecured bridge loan facility.
The impact on the Group’s financial position of these financing transactions, including the
SIG shares issued and transferred to CLIL as part of the consideration for Scholle IPN, is
described in more detail in notes
22 and 24.
Organisational changes in the Group Executive Board and the Board
of Directors
The following persons joined the Group Executive Board in the year ended 31
2022.
December
Fan Lidong – President and General Manager Asia Pacific North
Angela Lu – President and General Manager Asia Pacific South
Suzanne Verzijden – Chief People and Culture Officer
Ross Bushnell – President Scholle IPN
Ross Bushnell became a member of the Group Executive Board on 1 June 2022, while all
other changes became effective as of 1 January 2022.
Frank Herzog, Chief Financial Officer, resigned as of 31 December 2022. See further notes
29 and 31.
Gavin Steiner will join the Group Executive Board as Chief Technology Officer on 1 April
2023. Ian Wood will take on the role of Chief Supply Chain Officer.
The following changes took place in the Board of Directors in the year ended 31 December
2022.
Laurens Last, the former owner of Scholle IPN, was elected to the Board of Directors
at the Annual General Meeting on 7 April 2022. He is the second largest disclosed
shareholder in SIG (see also notes 24 and 29).
Nigel Wright decided not to stand for re-election and stepped down from the Board of
Directors upon the conclusion of the Annual General Meeting on 7 April 2022.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
9
247
Bridge loan financing
January
The Group signed a €400 million unsecured bridge loan facility agreement on 9
2023. The facility may be accessed in June 2023, when €450 million of the Group’s senior
unsecured notes is due for repayment. See note 22.
5
General accounting policies and topics
5.1
Application of accounting policies
The accounting policies applied by the Group in the consolidated financial statements for
December 2022 are consistent with those applied in the consolidated
the year ended 31
December 2021, with one exception. The Group
financial statements for the year ended 31
applied cash flow hedge accounting for the first time in the year ended 31
December 2022.
27 for details about the accounting for the derivatives entered into by the Group
See note
in relation to the acquisitions of Scholle IPN and Evergreen Asia.
5.2
Impact of new or amended standards and interpretations
A number of new or amended standards and interpretations became effective for annual
periods beginning on 1
January 2022. The applicable standards and interpretations had no,
or no material, impact on the consolidated financial statements.
5.3 Adoption of standards and interpretations in 2023 and beyond
A number of new or amended standards and interpretations are effective for annual
January 2023 or later and have not been applied in preparing these
periods beginning on 1
consolidated financial statements. The Group does not plan to adopt these standards and
interpretations before their effective dates. Many of them are not applicable to the Group
or are expected to have no, or no material, impact on the consolidated financial
statements.
5.4 Critical accounting judgements, estimates and assumptions
In preparing these consolidated financial statements, management has made judgements,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities, income and expenses and disclosure of
contingent assets and liabilities. The estimates and associated assumptions are based on
historical experience and various other assumptions that are believed to be reasonable
under the circumstances. Actual results may differ from estimates and assumptions
made. The estimates and assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future periods if the
revision affects both the current and future periods.
Management believes that the following accounting policies involve the most significant
judgements, estimates and assumptions:
Liabilities for various customer incentive programmes – see notes 6 and 18.
Impairment testing and recognition of impairment losses – see notes 12 and 14.
Business combinations and fair value assessments, including fair value assessment of
contingent consideration – see notes 25, 27 and 33.
Measurement of obligations under defined benefit plans – see note 30.
Determination of income tax liabilities – see note 32.
Realisation of deferred tax assets – see note 32.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
10
248
Global economic uncertainty
Various events such as COVID-19, the war in Ukraine, the increase in raw material and
energy prices as well as rising inflation are contributing to global economic uncertainty.
The progress of the business during the COVID-19 pandemic has shown that the Group is
well placed to withstand the effects of COVID-19 due to its role in the supply chain for
essential food and beverages and its broad geographic reach. The Group overall has not
been, and is currently not, significantly impacted by the outbreaks of COVID-19 around
the world.
The ongoing war in Ukraine has had significant impacts on the global economy in general,
with sanctions against Russia impacting many areas such as the supply of raw materials
and energy prices. However, the Group overall has not been, and is currently not,
significantly impacted by these effects. The Group has not experienced any significant
shortfalls of raw materials, even if the Group is impacted by the global increase in raw
material and energy prices as well as higher inflation. These effects can be partially
mitigated by the Group’s diversified supply chain, its hedging strategy, long-term supply
contracts and ability to pass on higher costs to its customers.
The impact of sanctions against Russia on the Group’s sales is not significant, with sales to
customers in Russia and Ukraine representing less than 2% of the Group’s revenue in 2021
(including Scholle IPN’s unaudited revenue in 2021). Prior to the acquisition of Scholle IPN,
the Group had only sales and service activities in Ukraine and Russia. One of the acquired
Scholle IPN entities is incorporated and has a production plant in Russia, which represents
an insignificant part of the acquired net assets. For the year ended 31 December 2022,
sales to customers in Russia represented less than 1% of the Group’s revenue.
5.5 Accounting policies and other
topics
relating
to
the
consolidated financial statements as a whole
5.5.1 Foreign currency
Items included in the financial statements of individual Group entities are recognised in
their respective functional currency, which is the currency of the primary economic
environment in which each Group entity operates.
Foreign currency transactions
Foreign currency transactions are translated into the respective functional currency of the
Group entity at the exchange rates at the dates of the transactions. Monetary assets and
liabilities in foreign currencies at the reporting date are translated into the functional
currency at the exchange rate at that date. Non-monetary assets and liabilities in foreign
currencies that are measured based on historical cost are translated at the exchange
rates at the dates of the transactions. Foreign currency exchange gains or losses are
generally recognised in profit or loss.
Foreign operations
Assets and liabilities of foreign operations, including goodwill and fair value adjustments
arising on acquisitions, are translated into Euro at the exchange rates at the reporting
date. The income and expenses of foreign operations are translated into Euro at average
rates for the reported periods, which approximate the exchange rates at the dates of the
transactions. This also applies to the statement of cash flows and all movements in assets
and liabilities as well as any items of other comprehensive income. The foreign currency
exchange gains and losses arising on the translation of the net assets of foreign
operations are recognised in other comprehensive income, in the translation reserve.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
11
249
When a foreign operation is disposed of or liquidated, the cumulative amount in the
translation reserve related to that foreign operation is reclassified to profit or loss as part
of the gain or loss on disposal (or liquidation). The Group does not apply hedge accounting
to the foreign currency exchange differences arising between the functional currency of
the foreign operation and the Euro.
Significant exchange rates
The following significant exchange rates against the Euro applied during the periods
presented:
Average rate for the year
Spot rate as of
31 Dec.
2022
31 Dec.
2021
31 Dec.
2022
31 Dec.
2021
5.42968
7.07715
21.15826
1.00514
36.86058
1.05277
6.37706
7.63193
23.99444
1.08142
37.78863
1.18341
5.63860
7.35820
20.85601
0.98470
36.83504
1.06660
6.31010
7.19470
23.14380
1.03310
37.65298
1.13260
Brazilian Real (BRL)
Chinese Renminbi (CNY)
Mexican Peso (MXN)
Swiss Franc (CHF)
Thai Baht (THB)
US Dollar ($ or USD)
5.5.2 Lease accounting
The Group as lessor
The Group deploys aseptic carton filling lines at its customers’ sites under both lease and
sale contracts. In the newly acquired businesses, filling lines and other related equipment
are primarily deployed under sale contracts and in limited cases also under lease
contracts.
The aseptic carton filling line contracts generally contain certain terms showing that the
Group retains control of the filling line and does not transfer the significant risks and
rewards of ownership to the customer. Due to these contractual terms, the majority of the
Group’s aseptic carton filling line contracts qualify to be accounted for as operating
leases in accordance with IFRS 16 Leases. See further notes 6, 12, 18 and 20. Sale
15
contracts that do not contain such terms are accounted for in accordance with IFRS
Revenue from Contracts with Customers.
The Group’s aseptic carton filling line lease contracts do not include unconditional rights
for customers to extend the lease or to purchase the filling line at the end of the stated
lease term. Due to the Group’s long-term relationships with its customers and changing
customer needs, contracts can be modified or terminated at any time. Customers may for
example want to change to a different filling machine model. Filling lines taken back from
customers are generally overhauled and redeployed with other existing or new customers.
Filling line lease contracts in the newly acquired businesses generally qualify to be
accounted for as finance leases in accordance with IFRS 16 Leases. The impact of these
finance lease contracts is not material for the Group.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
12
250
The Group as lessee
The Group
warehouses and cars.
leases office buildings, production-related buildings and equipment,
The majority of the Group’s leased assets are recognised as right-of-use assets with
corresponding lease liabilities. See notes 13 and 22 for details about the accounting for
right-of-use assets and lease liabilities.
Leases of low-value assets and short-term leases (leases with a lease term of 12 months
or less) are accounted for off-balance sheet. The lease payments are recognised as an
expense on a straight-line basis over the lease term. Variable lease payments that are not
included in the measurement of lease liabilities are also accounted for off-balance sheet
and are recognised as an expense when incurred. The Group’s off-balance sheet leases
have an insignificant impact on the Group’s result.
5.5.3
Impairment of non-financial assets
The carrying amounts of the Group’s property, plant and equipment, right-of-use assets
and intangible assets with finite useful lives are reviewed regularly and at least annually to
identify whether there is an indication of impairment. If an impairment indicator exists, the
asset’s recoverable amount is estimated. Goodwill and intangible assets with indefinite
useful lives are tested for impairment on an annual basis and whenever there is an
indication that they may be impaired.
For impairment testing, assets are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or cash-generating units (“CGU”).
The recoverable amount of an asset or CGU is the greater of its value in use and its fair
value less costs of disposal. In assessing the value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its
recoverable amount. An impairment loss is allocated to first reduce the carrying amount
of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the
other assets in the CGU on a pro-rata basis. Impairment losses are recognised in profit or
loss.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortisation, if
no impairment loss had been recognised.
Further details on impairment testing are provided in the respective notes on property,
plant and equipment, right-of-use assets and intangible assets (see notes 12, 13 and 14).
5.5.4 Contingent assets
Contingent assets are possible assets arising from a past event to be confirmed by future
events not wholly within the control of the Group. Contingent assets are not recognised in
the statement of financial position but are disclosed separately. If realisation of a
contingent asset becomes virtually certain, it is no longer considered contingent and is
recognised as an asset.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
13
251
OUR OPERATING PERFORMANCE
This section covers our operating performance at Group as well as at segment level. It
includes alternative performance measures that management believes are relevant in
evaluating the Group’s performance and liquidity.
6
Revenue
Revenue derives from the sale of goods such as carton sleeves, closures, bag-in-box and
spouted pouches with associated materials (barrier film and fitments), filling lines and
other related equipment as well as the provision of after-market services. Revenue is
presented net of returns, trade discounts, volume rebates and other customer incentives.
In addition, the Group presents income from the deployment of filling lines and other
related equipment under contracts that qualify to be accounted for as operating leases as
part of revenue.
Composition of revenue
(In € million)
Revenue from sale and service contracts
Revenue from filling line and other related equipment contracts
accounted for as operating leases
Total revenue
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
2,621.0
1,932.5
158.9
2,779.9
129.3
2,061.8
The Group’s total revenue is disaggregated by major product/service line in the table
below.
(In € million)
Revenue from the sale of carton, bag-in-box and spouted pouches
Filling line and other related equipment revenue
Service revenue
Other revenue
Total revenue
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
2,415.1
200.3
164.0
0.5
2,779.9
1,758.6
141.1
140.1
22.0
2,061.8
Revenue from the sale of carton, bag-in-box and spouted pouches is mainly composed of
revenue from the sale of aseptic carton sleeves and closures. Since the acquisitions of
Scholle IPN on 1 June 2022 and Evergreen Asia on 2 August 2022, this line item also
includes revenue from the sale of bag-in-box and spouted pouches as well as carton
sleeves for the chilled market in Asia.
Filling line and other related equipment revenue is composed of revenue from the
deployment of equipment under contracts that qualify to be accounted for as operating
leases and from the sale of equipment.
Service revenue relates to after-market services in relation to the Group’s equipment.
Other revenue for the year ended 31 December 2021 included revenue under royalty
agreements and from the sales of liquid paper board and folding box board. As a
consequence of the acquisition of the remaining shares of the joint ventures in the Middle
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
14
252
East on 25
February 2021, the royalty agreement with the former joint ventures was
terminated. The Group’s sales of liquid paper board are mainly to the former joint ventures
and, since the acquisition, are intra-group sales rather than third-party sales. Sales of
folding box board have ceased as the Group sold its paper mill in June 2021 (see note
26).
The sale of the paper mill has resulted in the Group no longer making a distinction between
revenue from core and non-core activities. This has been reflected in the presentation of
revenue in the comparative period.
The Group’s revenue is disaggregated by type of business in the table below.
(In € million)
Revenue from the carton business
Revenue from the bag-in-box and spouted pouch business
Total revenue
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
2,417.3
362.6
2,779.9
2,061.8
-
2,061.8
Revenue from the carton business relates to the provision of aseptic carton packaging
solutions and, since the acquisition of Evergreen Asia, chilled carton packaging solutions in
Asia. Revenue from the bag-in-box and spouted pouch business relates to the provision
of packaging solutions by Scholle IPN.
Notes 18 and 20 include information about the Group’s liabilities relating to various
incentive programmes, advance payments from customers and deferred revenue, which
had or will have an impact on the amount of revenue recognised.
Accounting policy, significant judgements and estimates
Revenue from sale of carton, bag-in-box and spouted pouches with associated products,
deployment of filling lines and other related equipment under contracts accounted for as sale
contracts and provision of service is measured at the fair value of the consideration received or
receivable net of returns, trade discounts, volume rebates and other customer sales incentives.
Revenue is recognised when the Group transfers control over a product or service to a customer.
Transfer of control varies depending on the individual contract terms. Revenue from the sale of
carton, bag-in-box and spouted pouches with associated products as well as deployment of filling
lines and other related equipment under contracts accounted for as sale contracts is recognised at a
point in time, while revenue from service contracts is recognised over time.
Lease payments for filling lines and other related equipment that are deployed under operating lease
contracts are recognised on a straight-line basis over the lease period. The payment (ie. the sale
price) for the use of aseptic carton filling lines that are deployed under sale contracts that qualify to
be accounted for as operating leases is recognised as a deferred revenue liability in the statement of
financial position, and recognised as revenue on a straight-line basis over the shorter of the period
over which the customer relationship is expected to last and the ten-year estimated useful life of a
filling line. The control and significant risks and rewards of ownership are retained by the Group in
respect of such sale contracts (see further note 5.5.2).
When sales incentives are offered to customers, only the amount of revenue that is highly probable
not to be reversed is recognised. The amount of sales incentives expected to be earned or taken by
customers in conjunction with incentive programmes is therefore estimated and deducted from
revenue. Estimates in respect of the incentives are based on historical and current sales trends,
which are affected by the business seasonality and competitiveness of promotional programmes
being offered. Estimates are reviewed quarterly for possible revisions.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
15
253
7
Segment information
The Group has four operating segments, which are also the reportable segments: Europe,
Middle East and Africa (“MEA”), Asia Pacific (“APAC”) and Americas.
Prior to the acquisition of Scholle IPN on 1 June 2022, all segments provided the same
aseptic carton packaging solutions, comprising aseptic carton filling lines, aseptic carton
sleeves and closures as well as after-market services. The acquisition of Scholle IPN has
not resulted in a change in the Group’s segmentation. The business of Scholle IPN has
been allocated to Europe, MEA, APAC and Americas. The segments now also provide
bag-in-box and spouted pouch packaging solutions, including barrier film and fitments as
well as filling lines and other equipment for bag-in-box and spouted pouches with related
after-market services. Since the acquisition of Evergreen Asia on 2 August 2022, APAC
also provides chilled carton packaging solutions, comprising carton filling lines, carton
sleeves and closures as well as after-market services.
Prior to the acquisition of the remaining shares of the joint ventures in the Middle East on
25
February 2021, the Group had three operating (and reportable) segments: Europe,
Middle East and Africa (“EMEA”), APAC and Americas. The acquisition resulted in a split of
EMEA into two segments: segment Europe and segment MEA.
Overview of the segments and Group Functions
Europe includes production of aseptic carton sleeves and closures as well as barrier film
and fitments for bag-in-box and spouted pouches for the Group’s customers in Europe.
Europe also supplies the other segments with aseptic carton sleeves and, to a lesser
extent, closures from its plants in Europe. The Group’s central procurement activities,
including commodity hedging, are part of Europe, with the European production entities
being the main internal customers. In addition, Europe includes the European-based
assembly plant for equipment used for bag-in-box and spouted pouches.
MEA covers the Group’s customers in the Middle East and Africa. The operations of the
former joint ventures in the Middle East, including an aseptic carton sleeves production
plant, are part of this segment. MEA will include sales of bag-in-box and spouted pouch
packaging solutions to customers in the Middle East and Africa.
Until the end of February 2021, the former segment EMEA included the same activities as
included in segment Europe before the acquisition of Scholle IPN (see above). In addition,
EMEA included the result from the sale of supply from the Group’s European production
entities to the Middle Eastern markets. The Group’s former joint ventures in the Middle
East contributed to the performance of EMEA through dividend payments and royalty
payments related to the use of SIG technical solutions and aseptic carton sleeves sales in
the Middle East and Africa.
APAC includes production of aseptic carton sleeves, carton sleeves for the chilled market
as well as barrier film and fitments for bag-in-box and spouted pouches for the Group’s
customers in China, South East Asia and Oceania. In addition, APAC supplies the other
segments with aseptic carton sleeves. APAC also includes the aseptic carton filling
machine assembly plant in China, the assembly plant for filling lines and other related
equipment used for bag-in-box and spouted pouches in India and the assembly of filling
machines for the chilled market in Asia. Until the beginning of June 2021, when the Group
sold its paper mill in New Zealand, APAC also included production of liquid paper board
and folding box board (see note 26). The liquid paper board was mainly used by the
sleeves plants in Asia and the former joint ventures in the Middle East.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
16
254
Americas covers the Group’s customers in North and South America. South America has
its own aseptic carton sleeves production plant. North America has so far primarily been
supplied with aseptic carton sleeves from the Group’s European and Asian plants.
However, commercial production of aseptic carton sleeves for the North American
market started in the Group’s first plant in Mexico in February 2023. Americas also
includes the production of film and fitments for bag-in-box and spouted pouches as well
as the American-based assembly plant for filling lines and other related equipment used
for bag-in-box and spouted pouches.
The Group Functions include activities that support the Group’s business, such as the
global aseptic carton filling machine assembly, global technology (including R&D),
information technology, marketing, finance, legal, human resources and other support
functions. Global filling machine assembly sells aseptic carton filling machines and spare
parts, and provides assembly-related services, to all segments. The Group Functions are
not involved in any significant transactions with third parties. Their sales of filling lines to
the former joint ventures in the Middle East were reported as third-party sales until the
Group obtained control over the joint ventures as of the end of February 2021.
Inter-company transactions between the segments, and between the segments and the
Group Functions, are eliminated in consolidation. These mainly relate to the sale of aseptic
carton filling machines, aseptic carton sleeves and closures. Pricing is determined on a
cost-plus basis. The Group has limited inter-segment sales of products related to the
chilled carton operations.
Information about the Group’s segments is reported to the Chief Operating Decision
Maker (“CODM”) on a regular basis for the purposes of resource allocation and
assessment of performance of the segments. The performance of the segments is
assessed by the CODM primarily on the basis of adjusted EBITDA (as defined in note 9).
Segment financial information
The following tables present financial information about the Group’s segments and Group
is used when presenting the segment
Functions. The same measurement basis
information as is used in the Group’s consolidated financial statements.
Year ended 31 December 2022
(In € million)
Europe MEA
APAC Americas
Total
segments
Group
Functions
Recon-
ciling
items
Total
Revenue from transactions
with external customers
Revenue from inter-segment
transactions
Segment revenue
Adjusted EBITDA1
Capital expenditure:2
PP&E and intangible assets3,4
Net filling lines and
other related equipment4
Net capital expenditure2
849.4 331.5
900.0
697.4
2,778.3
1.6
- 2,779.9
397.2
4.9
1,246.6 336.4
16.7
916.7
201.4
86.3
278.7
(70.1)
(25.0)
(23.0)
(3.2)
(127.4)
(36.5)
14.5
(10.5)
(11.4)
(14.6)
(31.1)
(67.6)
7.9
705.3
141.1
(54.4)
(17.0)
(28.6)
(45.6)
426.7
3,205.0
707.5
(274.9)
(81.7)
(56.6)
(138.3)
74.7
76.3
(501.4)
-
(501.4) 2,779.9
(55.3)
(5.7)
(26.0)
20.3
(5.7)
-
-
-
652.2
(280.6)
(107.7)
-
(36.3)
- (144.0)
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
17
255
(In € million)
EMEA5 Europe6 MEA6
APAC Americas
Total
segments
Group
Functions
Recon-
ciling
items
Total
Year ended 31 December 2021
Revenue from
transactions with
external customers
Revenue from inter-
segment transactions
Segment revenue
119.3
615.7 251.9
705.6
365.6
2,058.1
3.7
- 2,061.8
40.8
160.1
260.7
0.6
876.4 252.5
14.5
720.1
-
365.6
316.6
2,374.7
62.3
66.0
(378.9)
-
(378.9) 2,061.8
Adjusted EBITDA1
38.4
203.7
78.5
211.8
96.7
629.1
(58.5)
(15.5)
(84.7)
(12.4)
(89.6)
(34.0)
(236.2)
(9.7)
(3.3)
(7.1)
(29.0)
(14.5)
(3.3)
(2.9)
(33.4)
(5.8)
(16.4)
(17.3)
(85.4)
(47.6)
(7.5)
(2.2)
-
-
-
-
570.6
(245.9)
(92.9)
(49.8)
Capital expenditure:2
PP&E and
intangible assets3,4
Net filling lines4
Net capital
expenditure2
(10.4)
(43.5)
(6.2)
(39.2)
(33.7)
(133.0)
(9.7)
-
(142.7)
1
2
3
The performance of the segments is presented with reference to adjusted EBITDA, excluding intra-group trademark and royalty payments. Refer to note 9 for
additional details about adjusted EBITDA.
Refer to note 11 for additional details about capital expenditure and net capital expenditure.
PP&E (excluding filling lines and other related equipment) and intangible assets.
4 Group Functions may report positive net filling lines and other related equipment capital expenditure if the capital expenditure of the global aseptic carton filling
machine assembly during a period is smaller than the payments it received under intra-group sales of filling machines. This could also happen occasionally in the
case of PP&E and intangible asset capital expenditure, excluding filling lines and other related equipment.
5
6
Segment financial information presented for January-February 2021.
Segment financial information presented for March-December 2021.
The increase from three to four segments in the year ended 31 December 2021 did not
result in any material changes that would have required restatement of segment
information. The Group’s reporting structure changed due to the acquisition of the
remaining shares of the joint ventures in the Middle East on 25 February 2021. The Group
did not have control over these entities before the acquisition. The Group accounted for
the joint ventures using the equity method as it only had joint control. The results of the
former joint ventures in the Middle East are fully consolidated and reported in the new
segment MEA since the end of February 2021, while the European activities of the former
EMEA segment are reported in the new segment Europe. Prior to the acquisition, the
former joint ventures in the Middle East contributed to the performance of EMEA through
dividend payments and royalty payments. The royalty agreement was terminated and
dividend payments ceased upon the Group’s acquisition of the remaining shares of the
joint ventures. No dividends were paid by the joint ventures to the former joint venture
partners in the first two months of 2021. Sales by various Group companies to the former
joint ventures were, prior to the acquisition, reported as external sales. Since the
acquisition, sales to the former joint ventures are reported as inter-segment transactions.
Based on these facts, the Group does not believe that a meaningful quantitative
comparability could have been achieved considering the nature of changes in the
relationship between the parties pre- and post-acquisition. Therefore, the table above for
the year ended 31 December 2021 should be read in conjunction with the descriptions in
this section.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
18
256
Disaggregation of segment revenue
The following table presents revenue from transactions with external customers for the
segments for the year ended 31 December 2022, split by major product/service line.
Year ended 31 December 2022
(In € million)
Europe MEA
APAC Americas
Total
segments
Group
Functions
Total
Revenue from the sale of carton,
bag-in-box and spouted pouches
Filling line and other related equipment
revenue
Service revenue
Other revenue
759.5 275.6
766.0
614.0
2,415.1
- 2,415.1
46.2
43.7
-
31.2
24.7
-
76.6
57.4
-
45.8
37.6
-
199.8
163.4
-
0.5
0.6
0.5
200.3
164.0
0.5
Total revenue
849.4 331.5
900.0
697.4
2,778.3
1.6 2,779.9
With regard to the Group’s sale of aseptic carton packaging solutions in the year ended
December 2021, the split of revenue between revenue from sale of sleeves and
31
is broadly the same at Group
closures, filling
level, between the Group’s segments and over recent years (see note 6). Other revenue,
until the acquisition of the remaining shares of the joint ventures in the Middle East on
25
February 2021, was mainly divided between APAC and the former segment EMEA.
line revenue and service revenue
The following table presents revenue from transactions with external customers for the
segments for the year ended 31 December 2022, split by type of business.
(In € million)
Europe MEA
APAC Americas
Total
segments
Group
Functions
Total
Year ended 31 December 2022
Revenue from the carton business
Revenue from the bag-in-box and
spouted pouch business
Total revenue
Geographic information
761.7 331.5
855.0
467.5
2,415.7
1.6 2,417.3
87.7
-
45.0
849.4 331.5
900.0
229.9
697.4
362.6
2,778.3
-
362.6
1.6 2,779.9
The Group operates nine plants that produce aseptic carton sleeves (two each in
Germany and in China, and one each in Austria, Thailand, Saudi Arabia, Brazil and Mexico).
The plant in Saudi Arabia was part of the acquisition of the remaining shares of the joint
ventures in the Middle East on 25 February 2021 (see note 27). The plant in Mexico became
operational in February 2023. The Group also intends to build an aseptic carton sleeves
plant in India.
The Group operates two assembly plants for aseptic carton filling machines in Germany
and China, and a production plant for closures in Switzerland. For the aseptic carton
business, it also operates three R&D centres (one each in Germany, Switzerland and
China), three technology centres (one each in Germany, the UAE and China) and five
training centres (one each in Germany, the UAE, China, Thailand and Brazil). The Group
sold its paper mill in New Zealand in 2021 (see notes 9 and 26).
In addition, the Group operates 15 plants that produce barrier film and fitments for bag-in-
box and spouted pouches (four in the USA, two each in the Netherlands and India, and one
each in Germany, Russia, Australia, China, Canada, Brazil and Chile), three assembly
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
19
257
plants for filling lines and other related equipment used for bag-in-box and spouted
pouches (one each in Spain, India and the USA) as well as two equipment-related R&D
centres (one in Spain and one in the USA).
For the chilled carton business, the Group has three plants in China, South Korea and
Taiwan that produce carton sleeves and one assembly plant for carton filling machines in
China.
The following table includes information about the Group’s non-current assets on a
country basis. Non-current assets exclude financial instruments, deferred tax assets and
net defined benefit assets.
(In € million)
Germany
USA
China
United Arab Emirates
Switzerland1
Thailand
Other countries
Total non-current assets
1
The Company’s country of domicile is Switzerland.
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
1,132.6
973.4
916.9
616.0
505.4
494.6
1,547.2
6,186.1
1,111.2
218.3
692.5
630.8
478.6
460.2
797.3
4,388.9
The non-current assets are reported based on the geographic location of the business
operations. The non-current assets are predominantly located in the countries in which
the Group’s production and assembly plants are situated. The Group’s intellectual
property is primarily held by a company based in Switzerland.
The following table includes information about the Group’s revenue from external
customers on a country basis.
(In € million)
China
USA
Germany
Switzerland
Other countries
Total revenue from external customers
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
410.4
290.2
235.4
13.4
1,830.5
2,779.9
324.7
95.8
217.9
12.4
1,411.0
2,061.8
Revenue is reported based on the geographic location of customers. The customer base
of the Group includes international companies, large national and regional companies as
well as small local companies.
Information about major customers
The Group does not have revenue from transactions with a single external customer
amounting to 10% or more of the Group’s revenue in any of the periods presented.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
20
258
8
Other income and expenses
Other income and expenses relate to activities and transactions that are outside the
Group’s principal revenue-generating activities. Foreign currency exchange gains and
losses as well as fair value changes on commodity and foreign currency derivatives
entered into as part of the operating business are also presented as other income and
expenses. Activities and transactions of a significant or unusual nature are generally
adjusted for in the performance measures adjusted EBITDA and adjusted net income used
by management (see note 9).
Composition of other income and expenses
(In € million)
Net change in fair value of operating derivatives
Realised gain on settlement of deal-contingent derivatives
Income from miscellaneous services
Rental income
Gain on pre-existing interest in former joint ventures
Indirect tax recoveries
Other
Total other income
Net foreign currency exchange loss
Net change in fair value of operating derivatives
Transaction- and acquisition-related costs
Integration costs
Change in fair value of contingent consideration
Loss on sale of subsidiary
Total other expenses
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
-
16.6
2.6
0.7
-
-
4.8
24.7
(19.2)
(39.5)
(24.1)
(17.1)
(74.0)
-
(173.9)
7.8
-
2.8
0.7
48.8
12.1
6.4
78.6
(2.1)
-
(16.5)
(2.5)
-
(12.1)
(33.2)
For the year ended 31 December 2022, the Group recognised a net foreign currency
exchange loss of €19.2 million. This mainly relates to a realised net loss on foreign
currency derivatives.
For the year ended 31 December 2022, the Group recognised an unrealised net loss on
commodity and foreign currency derivatives of €39.5 million. This arose primarily because
the Group has entered into commodity derivative contracts fixing prices for polymers and
aluminium at levels above the currently lower forward prices.
The indirect tax recoveries of €12.1 million in the year ended 31 December 2021 relate to a
Supreme Court ruling on sales tax in Brazil that was beneficial to the Group. Out-of-period
indirect tax recoveries of €10.3 million are excluded in the calculation of adjusted EBITDA
and adjusted net income (see note 9).
See note 9 for information about the realised gain on settlement of the deal-contingent
derivatives (relating to the acquisitions of Scholle IPN and Evergreen Asia), transaction-
and acquisition-related costs, integration costs, the change in the fair value of the
contingent consideration, the gain on the pre-existing interest in joint ventures and the
loss on sale of a subsidiary. These items are excluded in the calculation of adjusted
EBITDA and adjusted net income.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
21
259
9
Alternative performance measures
Management uses a number of measures to assess the performance of the Group that
are not defined in IFRS, including adjusted EBITDA, adjusted net income, adjusted
earnings per share, net capital expenditure, free cash flow and net leverage ratio.
These alternative non-IFRS performance measures are presented as management
believes that they are important supplemental measures of the Group’s performance.
Management believes that they are useful and widely used in the markets in which the
Group operates as a means of evaluating performance. In certain cases, these alternative
performance measures are also used to determine compliance with covenants in the
Group’s credit agreements and compensation of certain members of management.
However, these alternative performance measures should not be considered as
substitutes for the information contained elsewhere in these consolidated financial
statements.
This note includes information about adjusted EBITDA and adjusted net income. Adjusted
earnings per share is presented in note 10 while net capital expenditure and free cash flow
are presented in note
11. Information about the Group’s net leverage ratio is included in
21. In the prior period, management also used core revenue as an alternative
note
performance measure (see note
6). Core revenue excluded revenue from the sale of
folding box board.
Adjusted EBITDA
Adjusted EBITDA
is used by management for business planning and to measure
operational performance. Management believes that adjusted EBITDA provides investors
with further transparency on the Group’s operational performance and facilitates
comparison of the performance of the Group on a period-to-period basis and versus
peers.
EBITDA is defined by the Group as profit or loss before net finance expense, income tax
expense, depreciation of property, plant and equipment and right-of-use assets, and
amortisation of intangible assets. Adjusted EBITDA is defined by the Group as EBITDA,
adjusted to exclude certain non-cash transactions and items of a significant or unusual
nature including, but not limited to, transaction- and acquisition-related costs, integration
costs, restructuring costs, unrealised gains or losses on operating derivatives, gains or
losses on the sale of non-strategic assets, asset impairments and write-downs, and share
of profit or loss of joint ventures, and to include the cash impact of dividends received
from joint ventures.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
22
260
The following table reconciles profit for the period to EBITDA and adjusted EBITDA.
(In € million)
Profit for the period
Net finance expense
Income tax expense
Depreciation and amortisation
EBITDA
Adjustments to EBITDA:
Unrealised loss/(gain) on operating derivatives
Replacement of share of profit or loss of joint ventures with
cash dividends received from joint ventures
Restructuring costs, net of reversals
Loss on sale of subsidiary
Transaction- and acquisition-related costs
Integration costs
Realised gain on settlement of deal-contingent derivatives
Fair value adjustment on inventories
Change in fair value of contingent consideration
Gain on pre-existing interest in former joint ventures
Out-of-period indirect tax recoveries
Impairment losses
Other
Adjusted EBITDA
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
37.8
26.0
51.0
366.7
481.5
172.1
31.4
52.3
306.6
562.4
39.5
(7.8)
-
4.9
-
24.1
17.1
(16.6)
20.6
74.0
-
-
6.3
0.8
652.2
1.6
26.0
12.1
16.5
2.5
-
10.4
-
(48.8)
(10.3)
4.4
1.6
570.6
The transaction- and acquisition-related costs as well as the integration costs for the year
ended 31 December 2022 mainly relate to the acquisitions of Scholle IPN and Evergreen
Asia in 2022 (see notes 4 and 27). For the year ended 31 December 2021, the transaction-
and acquisition-related costs related to costs incurred for the acquisitions of Scholle IPN
and Evergreen Asia in 2022 as well as the acquisition of the remaining shares of the joint
ventures in the Middle East in 2021 (€6.5 million).
The settlement of the deal-contingent foreign currency derivatives that the Group
entered into relating to the consideration paid in cash for Scholle IPN on 1 June 2022 and
for Evergreen Asia on 2 August resulted in a total realised gain of €61.1
million in the year
million for Evergreen
ended 31 December 2022 (€25.5
million is recognised in profit or loss as part of other income
Asia), of which €16.6
(€11.9
million for Evergreen Asia). Due to the designation
of the derivatives as hedging instruments in a cash flow hedge, the larger part of the
realised gain reduced the amounts of goodwill recognised for Scholle IPN and Evergreen
Asia. See further note 27.
million for Scholle IPN and €35.6
million for Scholle IPN and €4.7
The fair value adjustment on inventories of €20.6 million in the year ended 31
December
2022 relates to the fair value increases of the inventories of Scholle IPN and Evergreen
Asia that were made in connection with the acquisition accounting (see note 27). These
inventories have subsequently been sold. The fair value adjustment on inventories of
€10.4
million in the year ended 31 December 2021 related to the fair value increase of the
inventories of the former joint ventures in the Middle East that was made in connection
with the acquisition accounting (see note
27). These inventories were subsequently sold.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
23
261
The change in the fair value of the contingent consideration of €74.0 million relates to the
remeasurement of the US Dollar contingent consideration for Scholle IPN at fair value as
of 31
December 2022 (see further notes 27 and 33).
The restructuring costs for the year ended 31 December 2021 mainly related to the
Group’s paper mill in New Zealand (€9.8 million, net of reversals of provisions – see
note
26) and to the closure of the Australian sleeves manufacturing operations
million). In light of the opening of the Group’s new plant for aseptic carton sleeves in
(€8.6
China in 2020, the Group decided to close its Australian sleeves manufacturing operations
and consolidate the production of aseptic carton sleeves into the Group’s existing plants.
The Australian sleeves plant was vacated in 2022.
A loss of €12.1 million arose upon the sale of the Group’s paper mill in New Zealand in the
year ended 31 December 2021 (see note 26).
The remeasurement to fair value of the Group’s pre-existing 50% interest in the former
joint ventures in the Middle East resulted in a gain of €48.8 million in the year ended
31
December 2021 (see note 27).
Adjusted net income
Adjusted net income is used by management to measure performance. Management
believes that adjusted net income is a meaningful measure because by removing certain
non-recurring charges and non-cash expenses, the Group’s operating result directly
associated with the period’s performance is presented. The use of adjusted net income
may also be helpful to investors because it provides better consistency and comparability
with past performance and facilitates period-to-period comparisons of results of
operations.
Adjusted net income is defined by the Group as profit or loss adjusted to exclude certain
items of a significant or unusual nature including, but not limited to, the non-cash foreign
exchange impact of non-functional currency loans, amortisation of transaction costs, the
net change in fair value of financing-related derivatives, purchase price allocation (“PPA”)
depreciation and amortisation, adjustments made to reconcile EBITDA to adjusted
EBITDA and the estimated tax
impact of the foregoing adjustments. The PPA
depreciation arose due to the acquisition accounting that was performed when the Group
was acquired by Onex in 2015. The PPA amortisation relates to all acquisitions of the
Group.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
24
262
The following table reconciles profit for the period to adjusted net income.
(In € million)
Profit for the period
Non-cash foreign exchange impact of non-functional currency loans
and realised foreign exchange impact due to refinancing
Amortisation of transaction costs
Net change in fair value of financing-related derivatives
Realised gain on settlement of deal-contingent derivative
(relating to repayment of loan)
PPA depreciation and amortisation – Onex acquisition
PPA amortisation – other acquisitions1
Net effect of early repayment of loans
Interest on out-of-period indirect tax recoveries
Adjustments to EBITDA2
Tax effect on above items
Adjusted net income
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
37.8
172.1
(4.6)
7.0
(9.0)
(15.5)
103.5
34.1
1.0
-
170.7
(38.2)
286.8
(10.6)
3.6
-
-
103.1
14.1
3.7
(3.1)
8.2
(25.4)
265.7
1
2
For the year ended 31 December 2022, the Group has adjusted out of net income all PPA amortisation (net of tax) related to acquisitions. The comparative
information has been adjusted to reflect the refined definition. Had the Group remained with its former definition of adjusted net income, adjusted net income for
the year ended 31 December 2022 would have been €257.9
million for the year ended 31 December 2021. Management believes
that this change brings adjusted net income closer to the operational performance of the Group in the period.
million compared with €252.4
For the different adjustments to EBITDA, refer to the adjusted EBITDA table at the beginning of this note.
See note 27 for information about the realised gain on settlement of the deal-contingent
derivative of €15.5 million, which relates to the repayment of the acquired US Dollar loan
of Scholle IPN.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
25
263
10
Earnings per share
Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the consolidated profit for the period by
the weighted average number of shares in issue during the period, excluding the weighted
average number of treasury shares.
Diluted earnings per share reflects the effect of dilutive potential (ordinary) shares under
the Group’s equity-settled share-based payment plans and arrangements. Awards
granted under these equity-settled plans and arrangements have been included in the
determination of diluted earnings per share considering the level of achievement of the
set targets (see note 31) at the reporting date, and to the extent to which they are dilutive.
Awards granted with only a service condition are included in the determination of diluted
earnings per share to the extent to which they are dilutive. The dilutive effect of the share-
based payment plans and arrangements is mainly related to the management PSU plans.
The following table shows the weighted average number of shares outstanding before and
after adjustments for the effect of all dilutive potential shares. The Group issued shares on
22
May 2022 (see note
February 2021, 18
May 2022 and 23
24).
Weighted average number of ordinary shares
Issued shares as of 1 January 2021
Effect of issue of shares on 22 February 2021
Effect of treasury shares held
Weighted average number of shares as of 31 December 2021 – basic
Effect of share-based payment plans and arrangements
Weighted average number of shares as of 31 December 2021 – diluted
Issued shares as of 1 January 2022
Effect of issue of shares on 18 May 2022
Effect of issue of shares on 23 May 2022
Effect of treasury shares held
Weighted average number of shares as of 31 December 2022 – basic
Effect of share-based payment plans and arrangements
Weighted average number of shares as of 31 December 2022 – diluted
320,053,240
14,979,092
(147,880)
334,884,452
777,937
335,662,389
337,520,872
6,871,233
20,619,863
(903,281)
364,108,687
466,019
364,574,706
The following table shows the calculation of basic and diluted earnings per share.
(In € million unless indicated)
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
Profit for the period
Weighted average number of shares for the period – basic (in numbers)
37.8
364,108,687
172.1
334,884,452
Basic earnings per share (in €)
0.10
0.51
Profit for the period
Weighted average number of shares for the period – diluted (in numbers)
37.8
364,574,706
172.1
335,662,389
Diluted earnings per share (in €)
0.10
0.51
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
26
264
Adjusted earnings per share
Adjusted earnings per share is defined by the Group as adjusted net income divided by the
weighted average number of shares. Management believes that adjusted earnings per
share is a useful measure as adjusted net income is used to measure performance.
Adjusted net income and adjusted earnings per share are not defined performance
measures in IFRS (see note 9).
The table below shows the calculation of basic and diluted adjusted earnings per share.
(In € million unless indicated)
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
Adjusted net income
Weighted average number of shares for the period – basic (in numbers)
286.8
364,108,687
265.7
334,884,452
Adjusted earnings per share – basic (in €)
0.79
0.79
Adjusted net income
Weighted average number of shares for the period – diluted (in numbers)
286.8
364,574,706
265.7
335,662,389
Adjusted earnings per share – diluted (in €)
0.79
0.79
11
Cash flow information
This note includes information about the Group’s cash flows as well as non-cash
transactions. Where more relevant for the understanding of a transaction, cash inflows
and outflows are described in the notes on the respective assets or liabilities to which the
cash flows relate. The same applies to non-cash transactions.
Net capital expenditure
The Group’s capital expenditure primarily relates to investments in own production, plant
and equipment (PP&E capital expenditure, excluding filling lines and other related
equipment) and to the assembly and deployment of filling lines and other related
equipment with customers under contracts accounted for as operating leases (filling lines
and other related equipment capital expenditure). The Group’s investments in intangible
assets are less significant.
Net capital expenditure is defined by the Group as capital expenditure (net of proceeds
from sales of PP&E, other than filling lines and other related equipment, and intangible
assets) less upfront cash. Upfront cash is defined as consideration received as an upfront
payment for filling lines and other related equipment from customers. Net capital
expenditure is not a defined performance measure in IFRS (see note 9).
Management uses net capital expenditure as
it demonstrates better than capital
expenditure how cash-generative the business is. As the Group typically receives a portion
of the total consideration for a filling line and other related equipment as an upfront
payment from the customer (see also note 20), the cash outflow relating to filling lines and
other related equipment is generally lower than implied by the gross filling lines and other
related equipment capital expenditure figure. Payments received for filling lines and other
related equipment (including upfront payments) are included in cash flows from operating
activities.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
27
265
The following table reconciles capital expenditure to net capital expenditure.
(In € million)
PP&E and intangible assets (net of sales and excl. filling lines
and other related equipment)1
Filling lines and other related equipment
Capital expenditure
Upfront cash
Net capital expenditure
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
107.7
172.9
280.6
(136.6)
144.0
92.9
153.0
245.9
(103.2)
142.7
1
For the year ended 31 December 2022, the Group also considers proceeds from sales in its calculation of capital expenditure for PP&E and intangible assets. Had
the Group remained with its former definition of capital expenditure, for the year ended 31 December 2022, capital expenditure for PP&E and intangible assets
would have been €126.8
million. The impact
of the refined definition on the comparative information is not material. Management has made this change to align with the refined definition of free cash flow
(see the section below).
million and net capital expenditure would have been €163.1
million, total capital expenditure would have been €299.7
Free cash flow
Free cash flow is used by management to evaluate the performance of the Group. Free
cash flow is defined by the Group as net cash from operating activities plus dividends
received from joint ventures less capital expenditure (net of proceeds from sales of PP&E,
other than filling lines and other related equipment, and intangible assets) and payments
of lease liabilities. Free cash flow is not a defined performance measure in IFRS (see
note
9).
The following table reconciles net cash from operating activities to free cash flow.
(In € million)
Net cash from operating activities
Acquisition of property, plant and equipment and intangible assets
(net of sales)1
Payment of lease liabilities
Free cash flow
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
578.2
530.9
(280.6)
(34.5)
263.1
(245.9)
(26.7)
258.3
1
For the year ended 31 December 2022, the Group also considers proceeds from sales of PP&E, other than filling lines and other related equipment, and intangible
assets in its calculation of free cash flow. Had the Group remained with its former definition of free cash flow, free cash flow for the year ended 31 December 2022
would have been €244.0
million. The impact of the refined definition on the comparative information is not material. Management believes that this change better
reflects the cash available to the Group after operational investments and divestments.
Non-cash transactions
Non-cash transactions for the year ended 31 December 2022 include the issue and
subsequent transfer of 33,750,000 SIG shares (with a nominal value of CHF
0.01 per
share) to CLIL on 1 June 2022 as part of the consideration for Scholle IPN. The fair value of
the shares was €686.8
million (see notes 24 and 27).
Non-cash transactions for the year ended 31 December 2021 included the issue and
0.01 per share)
subsequent transfer of 17,467,632 SIG shares (with a nominal value of CHF
to OIG on 25 February 2021 as part of the consideration for the remaining shares of the
joint ventures in the Middle East. The fair value of the shares was €323.3
million (see notes
24 and 27).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
28
266
Other non-cash transactions include the initial recognition of leases on the statement of
financial position (see notes 13 and 22) and the granting of instruments under the Group’s
2022 and 2021 share-based plans and arrangements (see note 31). Notably for the year
December 2022, the 15-year lease of the Group’s first aseptic carton sleeves
ended 31
production plant in Mexico commenced in October 2022 (with an initial lease liability and
related right-of-use asset recognised of approximately €29
million each).
There are no other material non-cash transactions for the years ended 31 December 2022
and 31 December 2021.
Cash outflows under lease contracts
The total cash outflow for the Group’s lease contracts for the year ended 31
2022 was €48.8 million (€38.2
million for the year ended 31 December 2021).
December
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
29
267
OUR OPERATING ASSETS
AND LIABILITIES
This section includes information about the Group’s operating assets and liabilities. The
main operating assets relate to the Group’s production equipment and its deployed filling
lines and other related equipment accounted for as operating leases. The Group also has
right-of-use assets resulting from lease contracts entered into as a lessee. The Group’s
trade receivables balance is reduced by selling trade receivables under securitisation and
factoring programmes. A substantial part of the Group’s assets relates to goodwill and
other intangible assets. Impairment testing of goodwill and trademarks with indefinite
useful lives is described in this section. The main operating liabilities relate to trade
payables and accruals for various incentive programmes. Other liabilities mainly comprise
deferred revenue relating to advance payments received for filling lines deployed under
contracts accounted for as operating leases, but also the contingent consideration for
Scholle IPN (see note 27).
12
Property, plant and equipment
Property, plant and equipment (“PP&E”) is mainly composed of filling lines that are
deployed at customers’ sites under contracts that qualify to be accounted for as
operating leases (see note 5.5.2) and the Group’s plant and production equipment. PP&E
also includes work in progress, which relates to construction of filling machines and to
filling lines and other related equipment under installation at customers’ sites as well as to
construction of various types of production equipment used by the Group in its production
and assembly plants. The Group is a lessor in respect of its filling lines and other related
equipment deployed with its customers.
Composition of PP&E
(In € million)
Cost
Accumulated depreciation
and impairment losses
Carrying amount as of 31 December 2021
Cost
Accumulated depreciation
and impairment losses
(8.6)
Carrying amount as of 31 December 2022
103.4
Carrying amount as of 1 January 2021
Additions
Additions through business combination
Sale of subsidiary
Disposals
Depreciation
Impairment losses
Transfers
Effect of movements in exchange rates
Carrying amount as of 31 December 2021
28.6
-
-
(0.8)
-
-
-
-
(0.1)
27.7
Annual Report 2022
Land Buildings
Plant and
equipment
Work in
progress
Filling
lines
Total
36.4
174.7
750.1
241.0
1,133.8 2,336.0
(8.7)
27.7
(71.4)
103.3
(477.4)
272.7
(6.5)
234.5
(501.5) (1,065.5)
632.3 1,270.5
112.0
265.2
920.5
364.2
1,274.8 2,936.7
(83.8)
181.4
108.8
0.6
0.7
-
-
(8.3)
-
0.7
0.8
103.3
(542.1)
-
378.4
364.2
(634.4) (1,268.9)
640.4 1,667.8
166.5
1.0
58.7
(0.1)
(0.1)
(51.7)
(1.4)
88.8
11.0
272.7
178.5
239.8
25.7
-
-
-
(0.1)
(217.1)
7.7
504.2
2.0
97.4
-
(0.2)
(107.4)
(2.7)
126.1
12.9
986.6
243.4
182.5
(0.9)
(0.3)
(167.4)
(4.2)
(1.5)
32.3
234.5
632.3 1,270.5
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
30
268
(In € million)
Land Buildings
Plant and
equipment
Work in
progress
Filling
lines
Total
Carrying amount as of 1 January 2022
Additions
Additions through business combinations
Disposals
Depreciation
Impairment losses
Transfers
Effect of movements in exchange rates
27.7
-
77.2
-
-
-
-
(1.5)
Carrying amount as of 31 December 2022
103.4
103.3
0.6
80.8
-
(12.1)
-
9.0
(0.2)
181.4
272.7
7.1
101.9
(1.5)
(57.9)
-
53.7
2.4
378.4
234.5
280.2
35.8
-
-
-
(185.4)
(0.9)
632.3 1,270.5
291.7
295.7
(2.0)
(192.2)
(6.3)
(0.6)
11.0
3.8
-
(0.5)
(122.2)
(6.3)
122.1
11.2
364.2
640.4 1,667.8
The increase in PP&E since 31 December 2021 is impacted by the acquisitions of
Scholle
IPN and Evergreen Asia in 2022 (see note 27).
Notes 7 and 11 include further information about the Group’s capital expenditure with
regard to its production equipment and filling lines and other related equipment.
Depreciation of PP&E
Depreciation of PP&E is recognised in the following components in the statement of profit
or loss and other comprehensive income.
(In € million)
Cost of sales
Selling, marketing and distribution expenses
General and administrative expenses
Total depreciation
Capital expenditure commitments
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
185.4
1.3
5.5
192.2
161.0
0.7
5.7
167.4
million (€112.6
As of 31 December 2022, the Group had entered into contracts to incur capital
expenditure of €144.7
million as of 31 December 2021) for the acquisition of
PP&E. The commitments relate to filling machine and other related equipment assembly,
certain downstream equipment and various equipment for the Group’s production plants
and similar facilities (both existing production-related buildings and production-related
buildings under construction that will be leased by the Group once finalised – see note 13).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
31
269
Accounting policy, significant judgements and estimates
Items of PP&E are measured at cost less accumulated depreciation and accumulated impairment
losses. Gains and losses on disposals of items of PP&E are recognised in profit or loss as part of other
income or expenses.
The cost of an acquired or self-constructed item of PP&E includes any costs directly attributable to
bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by management. Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset form part of the cost of that asset. The cost of the
Group’s filling lines and other related equipment also includes the estimated cost of dismantling to
the extent such an amount is recognised as a provision. Subsequent expenditure is capitalised only if
it is probable that the future economic benefits associated with the expenditure will flow to the Group
and the cost can be measured reliably. The costs of the day-to-day servicing of PP&E are
recognised in profit or loss as incurred.
Items of PP&E are depreciated on a straight-line basis over their estimated useful lives, with
depreciation generally recognised in profit or loss. Land is not depreciated. The estimated useful lives
for the current and comparative periods are as follows:
Buildings
Plant and equipment:
Production-related equipment and machinery 4 to 25 years
Furniture and fixtures
Filling lines (leased assets, SIG as lessor)
3 to 8 years
10 years
15 to 40 years
In connection with the building of the Group’s first Mexican aseptic carton sleeves plant and the
future project to build an aseptic carton sleeves plant in India, the Group reassessed and extended
the useful life of core production-related equipment and machinery from 12 to 25 years as of 1 July
2022. The change has been accounted for on a prospective basis as of 1 July 2022. For the year
ended 31 December 2022, the change resulted in a €5.7 million lower amount of depreciation (net of
tax) for the core production-related equipment and machinery that were in use as of 1 July 2022. The
average annual decrease
is
approximately €10
million (net of tax). The future annual impact will decline as this equipment (with
different remaining useful lives) will reach the end of its respective useful life at different times.
in depreciation for this equipment over the next three years
The Group as lessor – filling lines
The Group mainly deploys aseptic carton filling lines under contracts that qualify to be accounted for
as operating leases (see note 5.5.2 for additional details). As further described in this accounting
policy section, the filling lines are measured at cost and depreciated from the deployment date over
their estimated useful life of ten years and tested for impairment when there is an impairment
indicator.
Impairment of PP&E
Items of PP&E are reviewed regularly and at least annually to identify whether there is an indication
of impairment. If an impairment indicator exists, the asset’s recoverable amount is estimated. See
note 5.5.3 for details about impairment testing of non-financial assets.
A change in the Group’s intended use of certain assets, such as a decision to rationalise production
locations, may trigger a future impairment. Value in use calculations require management to estimate
the future cash flows expected to arise from an individual asset or CGU and to determine a suitable
discount rate to calculate present value.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
32
270
13
Right-of-use assets
The Group generally purchases its production-related buildings and equipment (see
note
12). However, it also enters into lease contracts. Right-of-use assets relate to lease
contracts that the Group has entered into as lessee. The contracts mainly cover leases of
assets such as office buildings, production-related buildings and equipment, warehouses
and cars.
Composition of right-of-use assets
(In € million)
Cost
Accumulated depreciation
and impairment losses
Carrying amount as of 31 December 2021
Cost
Accumulated depreciation
and impairment losses
Carrying amount as of 31 December 2022
Carrying amount as of 1 January 2021
Additions
Additions through business combination
Depreciation
Impairment losses
Effect of movements in exchange rates
Carrying amount as of 31 December 2021
Carrying amount as of 1 January 2022
Additions
Additions through business combinations
Depreciation
Effect of movements in exchange rates
Carrying amount as of 31 December 2022
Land and
buildings
Plant and
equipment
Cars
Total
156.7
65.8
9.6
232.1
(26.9)
129.8
219.2
(44.0)
175.2
100.5
5.8
26.5
(13.6)
-
10.6
129.8
129.8
39.2
23.7
(16.9)
(0.6)
175.2
(24.8)
41.0
107.7
(42.8)
64.9
36.7
13.7
0.2
(11.5)
(0.1)
2.0
41.0
41.0
33.7
5.8
(17.3)
1.7
64.9
(5.8)
3.8
11.8
(8.3)
3.5
3.9
2.2
-
(2.3)
(0.1)
0.1
3.8
3.8
2.2
-
(2.5)
-
3.5
(57.5)
174.6
338.7
(95.1)
243.6
141.1
21.7
26.7
(27.4)
(0.2)
12.7
174.6
174.6
75.1
29.5
(36.7)
1.1
243.6
December 2021 is mainly due to new leases of
The increase in right-of-use assets since 31
production equipment for closures and the commencement in October 2022 of the
15-year lease of the Group’s first aseptic carton sleeves production plant in Mexico (the
building). The production equipment for the plant has been invested in directly by the
Group. Commercial production started in February 2023. A purchase option, exercisable
by the Group after 15 years, has been considered when estimating the lease term and the
lease liability (with an impact also on the related right-of-use asset). In addition, a right-
of-use asset relating to a pre-paid land right-of-use in China was recognised in
connection with the Evergreen Asia acquisition accounting in 2022 (see note
27).
The Group’s most significant leases relate to its aseptic carton sleeves production plants
in China (the second plant), Saudi Arabia and Mexico as well as the lease of the SIG Tech
Centre in China. These leases, with a remaining lease term of between 11
and 18 years,
make up the larger part of the carrying amount of leased land and buildings. Another
significant lease is the pre-paid land right-of-use in China, with a remaining lease term of
22 years. The larger part of the plant and equipment category relates to leases of
production equipment for closures with a lease term of four to six years. The lease term of
other assets is most commonly in the range of three to five years.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
33
271
Depreciation of right-of-use assets
Depreciation of right-of-use assets is recognised in the following components in the
statement of profit or loss and other comprehensive income.
(In € million)
Cost of sales
Selling, marketing and distribution expenses
General and administrative expenses
Total depreciation
Lease commitments
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
27.7
5.5
3.5
36.7
19.7
4.4
3.3
27.4
The Group has entered into lease contracts that have not yet commenced. The present
value of estimated future lease payments under these lease contracts is approximately
€106 million as of 31 December 2022 (€77 million as of 31
December 2021).
These contracts mainly relate to leases of production equipment for closures that are
expected to commence within the next twelve months. As of 31 December 2022, the
committed lease payments also concern leases of production-related buildings in APAC
that are expected to commence within the next eight to eighteen months (see also
note
12). As of 31 December 2021, the committed lease payments also concerned the
lease of the Group’s first aseptic carton sleeves production plant in Mexico, which
commenced in October 2022.
Accounting policy
At the lease commencement date, the Group recognises a lease liability and a related right-of-use
asset. The accounting for lease liabilities is described in note 22.
The right-of-use asset represents the Group’s right to use the leased asset. A right-of-use asset is
initially measured at cost, which in many cases will equal the amount recognised as a lease liability.
lease
However, adjustments are required for any
commencement date and any initial direct costs incurred. The cost also includes the estimated cost
to dismantle and remove the leased asset, to restore it to the condition required under the lease
contract or to restore the site on which it is located, to the extent such an amount is recognised as a
provision.
lease payments made at or before the
Subsequent to initial recognition, a right-of-use asset is measured at cost less accumulated
depreciation and impairment losses. A right-of-use asset is subsequently also adjusted for certain
remeasurements of the related lease liability.
Right-of-use assets are depreciated on a straight-line basis from the lease commencement date
over the shorter of the lease term and their useful lives, unless it is reasonably certain that the Group
will obtain ownership by the end of the lease term.
As for PP&E, right-of-use assets are reviewed regularly and at least annually to identify whether
there is an indication of impairment. If an impairment indicator exists, the asset’s recoverable amount
is estimated. See note 5.5.3 for details about impairment testing of non-financial assets.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
34
272
14
Intangible assets
The largest portion of the Group’s intangible assets is goodwill. Around half of the goodwill
arose as a result of the acquisition of the SIG Group by Onex in 2015. The remaining half of
the goodwill mainly arose as a result of the acquisitions of Scholle IPN and Evergreen Asia
in 2022 and the remaining shares of the joint ventures in the Middle East in 2021. The other
intangible assets mainly consist of trademarks, customer relationships and technology-
related assets. The SIG trademarks have indefinite useful lives.
Composition of intangible assets
(In € million)
Goodwill
Trade-
marks
Customer
relation-
ships
Technology
and other
assets
Total
2,128.1
325.3
774.1
389.7
3,617.2
Cost
Accumulated amortisation
and impairment losses
Cost
Accumulated amortisation
and impairment losses
Carrying amount as of 31 December 2021
2,128.1
325.3
-
-
(433.1)
341.0
(263.6)
126.1
(696.7)
2,920.5
3,186.2
357.7
1,035.4
517.3
5,096.6
-
Carrying amount as of 31 December 2022
3,186.2
Carrying amount as of 1 January 2021
Additions
Additions through business combination
Amortisation
Effect of movements in exchange rates
1,566.7
-
518.4
-
43.0
Carrying amount as of 31 December 2021
2,128.1
Carrying amount as of 1 January 2022
Additions
Additions through business combinations
Disposals
Amortisation
Effect of movements in exchange rates
2,128.1
-
1,060.8
-
-
(2.7)
Carrying amount as of 31 December 2022
3,186.2
(1.4)
356.3
311.1
-
-
-
14.2
325.3
325.3
-
16.3
-
(1.4)
16.1
356.3
(526.5)
508.9
(322.5)
194.8
262.9
-
146.1
(74.0)
6.0
341.0
341.0
-
260.9
(1.5)
(89.9)
(1.6)
508.9
152.1
2.8
3.1
(37.8)
5.9
126.1
126.1
19.2
91.2
-
(46.5)
4.8
194.8
(850.4)
4,246.2
2,292.8
2.8
667.6
(111.8)
69.1
2,920.5
2,920.5
19.2
1,429.2
(1.5)
(137.8)
16.6
4,246.2
The increase in intangible assets since 31 December 2021 is primarily due to the
acquisitions of Scholle IPN and Evergreen Asia in 2022 (see note 27). In the year ended
31
December 2021, the Group acquired the remaining shares of the joint ventures in the
Middle East, which resulted in an increase in intangible assets (see note 27).
Research and development
million for the year ended 31
Research and development costs (excluding depreciation and amortisation expense)
recognised as a component of general and administrative expenses amount to
€45.0
million for the year ended
December 2021). In the year ended 31 December 2022, the Group has capitalised
31
development costs of €15.3
million, mainly relating to the ongoing development of the
next-generation SIG NEO VITA aseptic carton filling machine (included in “Technology
and other assets” in the table above).
December 2022 (€56.3
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
35
273
Amortisation of intangible assets
Amortisation of intangible assets is recognised in the following components in the
statement of profit or loss and other comprehensive income.
(In € million)
Cost of sales
Selling, marketing and distribution expenses
General and administrative expenses
Total amortisation
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
92.0
1.7
44.1
137.8
75.1
0.2
36.5
111.8
Annual impairment tests of goodwill and trademarks with indefinite
useful lives
million as of 31
Goodwill with a carrying amount of €3,186.2 million as of 31 December 2022
December 2021) and the SIG trademarks with indefinite useful
(€2,128.1
million as
lives with a carrying amount of €341.3 million as of 31
of 31
December 2021) are not subject to amortisation but are tested for impairment on an
annual basis and whenever there is an impairment indicator. The annual impairment tests
are performed in the fourth quarter each year.
December 2022 (€325.3
The Group does not monitor goodwill at a lower level than Group level for internal
management purposes but, for impairment testing purposes, goodwill must be allocated
to a CGU, or group of CGUs, that is not larger than an operating segment before
aggregation. The Group has allocated the goodwill for impairment testing purposes to its
four operating segments (Europe, MEA, APAC and Americas).
Goodwill
For the impairment test of goodwill, the recoverable amount has been estimated with
reference to value in use. In assessing the value in use, the estimated future cash flows (in
Euros) have been discounted to their present values using a pre-tax discount rate that
reflects current market assessments of the time value of money as well as the risks
specific to each segment. The weighted average cost of capital (“WACC”) is used to
determine the discount rate. Cash flows for the first five years are based on financial plans
approved by management. Cash flows after the five-year internal planning period are
extrapolated using terminal growth rates that are aligned with the estimated long-term
inflation. The terminal growth rates used by the Group for impairment testing purposes do
not exceed the estimated long-term growth rates in the packaging industry.
Goodwill is allocated to the Group’s four operating (and reportable) segments as per the
June 2022
following table. The goodwill that arose upon the acquisition of Scholle IPN on 1
has been allocated to all four segments, while the goodwill that arose upon the acquisition
of Evergreen Asia on 2 August 2022 has been fully allocated to APAC. The goodwill that
arose upon the acquisition of the remaining shares of the joint ventures in the Middle East
February 2021 has been allocated to MEA (see also note 7). At the same time, the
on 25
goodwill that had been allocated to the former segment EMEA was fully reallocated to
Europe. The table also includes information about the key assumptions used in the
impairment test.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
36
274
(In € million or %)
Europe
MEA
APAC
Americas
Total goodwill
Year ended 31 December 2022
Growth
rate
Carrying
amount
Pre-tax
discount rate
Year ended 31 December 2021
Growth
rate
Carrying
amount
Pre-tax
discount rate
1,000.7
533.4
949.2
702.9
3,186.2
2.5%
2.5%
2.5%
2.5%
8.1%
11.0%
8.6%
10.1%
757.2
526.4
656.3
188.2
2,128.1
2.0%
2.0%
2.0%
2.0%
6.6%
8.0%
5.6%
8.9%
No impairment of goodwill was identified in either of the periods. Management considers it
unlikely that any realistic change in the assumptions used, including changes in the
assessed future cash flows, would result in an impairment loss. The estimated recoverable
amounts of the goodwill allocated to the segments significantly exceed the respective
carrying amounts in both periods. The Group overall has not been, and is currently not,
significantly impacted by the COVID-19 pandemic and the effects of the war in Ukraine.
Management does not believe that these events and the current global economic
uncertainty in general will have any significant long-term negative impacts on the Group’s
estimated future cash flows (see note 5.4). However, there is no assurance that the
Group’s experience to date, which has been reflected in the assessment of future cash
flows, will be representative of future periods.
Trademarks with indefinite useful lives
The value of the SIG trademarks with indefinite useful lives is associated with the Group as
a whole. Trademarks are tested for impairment at Group level as all SIG entities benefit
from the trademarks. The entities are charged a royalty fee for the use of the SIG
trademarks. For the impairment test, the recoverable amount has been estimated with
reference to value in use. The assessed royalty fees have been discounted to their present
value using a pre-tax discount rate at Group level of 9.2% (6.6% in the 2021 annual
impairment test) and a terminal growth rate at Group level of 2.5% (2.0% in the 2021
annual impairment test). The WACC is used to determine the discount rate. The royalty
fees for the first five years are based on financial plans approved by management. Cash
flows after the five-year internal planning period are extrapolated using a terminal growth
rate that is aligned with the estimated long-term inflation. The terminal growth rate used
by the Group for impairment testing purposes does not exceed the estimated long-term
growth rates in the packaging industry.
No impairment of the SIG trademarks with indefinite useful lives was identified in any of
the periods. Management considers it unlikely that any realistic change in the assumptions
used would result in an impairment loss.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
37
275
Accounting policy
Goodwill arising upon business combinations is measured at cost less accumulated impairment
losses. With respect to investments in joint ventures accounted for using the equity method, the
carrying amount of goodwill is included in the carrying amount of the investment.
The SIG trademarks are assessed to have indefinite useful lives considering the long history of the
SIG brand and its expected future continuous use. They are measured at cost less accumulated
impairment losses. Other intangible assets, including customer relationships, Scholle trademarks and
technology assets, have finite useful lives and are measured at cost less accumulated amortisation
and accumulated impairment losses. Gains and losses on disposals of intangible assets are
recognised in profit or loss as part of other income or expenses.
Development expenditure is capitalised only if the expenditure can be measured reliably, the product
or process is technologically and commercially feasible, future economic benefits are probable, and
the Group intends to and has sufficient resources to complete the development and to use or sell the
asset. If the capitalisation criteria are not met, development expenditure is recognised in profit or loss
as incurred. Expenditure on research activities is recognised in profit or loss as incurred.
Intangible assets with finite useful lives are amortised on a straight-line basis over their estimated
useful lives, with amortisation generally recognised in profit or loss. The estimated useful lives of
amortisable intangible assets for the current and comparative periods, considering also the
acquisitions of Scholle IPN and Evergreen Asia in 2022, are as follows:
Customer relationships 10 to 15 years
Scholle trademarks 7 years
Technology assets (including patented and non-patented
technology and know-how) 6 to 10 years
Other intangible assets (including software) 3 to 6 years
Capitalised development costs are amortised over the period that is assessed to reflect the
expected useful life of the particular innovation.
Impairment of goodwill and other intangible assets
Intangible assets with finite useful lives are reviewed regularly and at least annually to identify
whether there is an indication of impairment. If an impairment indicator exists, the asset’s
recoverable amount is estimated. Goodwill and intangible assets with indefinite useful lives are tested
for impairment on an annual basis and whenever there is an indication that they may be impaired. See
note 5.5.3 for details about impairment testing of non-financial assets.
Significant judgements and estimates
Significant judgement is involved in the annual impairment testing of goodwill and trademarks with
indefinite useful lives. The judgements and assumptions used in estimating the recoverable amount
are included above under “Annual impairment tests of goodwill and trademarks with indefinite useful
lives”, where the outcome of the annual impairment tests is also described.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
38
276
15
Inventories
Composition of inventories and other financial information
(In € million)
Raw materials and consumables
Work in progress
Finished goods
Total inventories
As of
31 Dec.
2022
As of
31 Dec.
2021
143.0
96.7
163.0
402.7
71.2
22.6
100.7
194.5
The increase in inventories since 31 December 2021 is impacted by the acquisitions of
Scholle IPN and Evergreen Asia in 2022 (see notes 9 and 27).
As of 31 December 2022, inventories include a provision of €24.2 million due to write-
downs to net realisable value (€20.5
million as of 31 December 2021).
Raw materials and consumables recognised as an expense in cost of sales in the
statement of profit or loss and other comprehensive income amount to €1,257.0
million in
the year ended 31
December 2022 (€856.5 million in the year ended 31
December 2021).
Accounting policy
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
based on the weighted average cost formula and includes costs incurred in acquiring the inventories
and bringing them to their present location and condition. In the case of manufactured inventories
and work in progress, cost includes an appropriate share of production overheads based on normal
operating capacity. Net realisable value is the estimated selling price less the estimated costs of
completion and estimated costs necessary to make the sale.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
39
277
16
Trade and other receivables
Trade and other receivables mainly comprise trade receivables. The Group has a
securitisation programme under which it sells a portion of its aseptic carton sleeves-
related trade receivables without recourse. It also maintains a small number of minor
factoring programmes.
Composition of trade and other receivables
The table below provides an overview of the Group’s current and non-current trade and
other receivables. Trade receivables that will be sold under the securitisation and factoring
programmes are presented as trade receivables at fair value. Trade receivables that will
not be sold are presented as trade receivables at amortised cost.
(In € million)
Trade receivables at amortised cost
Trade receivables at fair value
Related party trade receivables
VAT receivables
Other receivables
Total current trade and other receivables
Non-current receivables
Total current and non-current receivables
As of
31 Dec.
2022
As of
31 Dec.
2021
294.1
33.7
3.8
56.3
72.4
460.3
18.8
479.1
171.3
25.7
0.4
35.4
47.1
279.9
4.2
284.1
The increase in trade receivables at amortised cost since 31 December 2021 is impacted
by the acquisitions of Scholle IPN and Evergreen Asia in 2022 (see note 27).
The payment terms for the Group’s trade receivables for packaging material is an average
of 30 to 45 days (an average of 40 days in the comparative period).
Trade receivables at amortised cost – loss allowance and ageing
(In € million)
Current
Past due up to 29 days
Past due 30 days to 89 days
Past due 90 days or more
Trade receivables at amortised cost, net of loss allowance
Loss allowance
Trade receivables at amortised cost, gross
As of
31 Dec.
2022
As of
31 Dec.
2021
226.5
31.4
17.2
19.0
294.1
(9.7)
303.8
122.8
21.4
7.0
20.1
171.3
(6.6)
177.9
The loss allowance represents the Group’s estimate of individually impaired trade
receivables as well as expected credit losses on trade receivables that are not individually
impaired. It primarily relates to trade receivables past due up to 29 days and past due
more than 90
days. The expected credit losses are calculated using a provision matrix
based on historical credit loss experience and assessments of current and future
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
40
278
conditions. The expected loss rate for trade receivables past due more than 90 days that
are not individually impaired is between 25% and 100% (with an expected loss rate of 100%
when past due more than 270
days that are
not individually impaired, the expected loss rate is around 5%.
days). For trade receivables past due 30 to 89
Management believes that the recognised loss allowance sufficiently covers the risk of
default based on historical payment behaviour and assessments of future expectations of
credit losses, including regular analysis of customer credit risk. The acquired trade
receivables of Scholle IPN, Evergreen Asia and the former joint ventures in the Middle East
were recognised at fair value at their respective acquisition dates in 2022 and 2021 (see
note 27). See also the section “Credit risk” in note
25.
The table below shows the movements in the loss allowance for trade receivables at
amortised cost.
(In € million)
Loss allowance as of 1 January
Change in loss allowance recognised in profit or
loss during the year
Foreign currency exchange differences
Loss allowance as of 31 December
Securitisation programme
As of
31 Dec.
2022
As of
31 Dec.
2021
6.6
2.9
0.2
9.7
5.0
1.6
-
6.6
The Group has an asset-backed securitisation programme under which it sells without
recourse a portion of its aseptic carton sleeves-related trade receivables to a special
purpose entity. This entity is not controlled by the Group and therefore not consolidated.
The trade receivables sold qualify for derecognition by the Group. The Group transfers the
contractual rights to the cash flows of the trade receivables at their nominal value less a
retained reserve in exchange for cash. The net amount is presented as part of other
current receivables and represents the Group’s right to receive this amount once the
trade receivables sold have been settled by the customers.
December
million as of 31 December
million as of 31 December
million as
Trade receivables sold under the securitisation programme amounted to €165.2
2021), of which €140.8 million
of 31 December 2022 (€119.5
million as of 31
2021) has been derecognised and €24.4 million
(€106.1
(€13.4
2021), representing the retained reserve, is presented as
part of other current receivables. The retained reserve represents the Group’s maximum
exposure to any losses in respect of trade receivables previously sold under the
programme. The interest expense paid under the asset-backed securitisation programme
amounted to €2.2 million in the year ended 31 December 2022 (€1.4
million as of
31
December 2021) and is presented as part of other finance expenses.
Factoring programmes
The Group has a small number of minor factoring programmes under which trade
receivables sold by the Group qualify for derecognition.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
41
279
Accounting policy
Trade and other receivables at amortised cost
Trade and other receivables that will not be sold under the Group’s securitisation and factoring
programmes are initially recognised at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these receivables are measured at amortised cost using the
effective interest method less a loss allowance. The loss allowance represents the Group’s estimate
of individually impaired trade receivables as well as expected credit losses on trade receivables that
are not individually impaired. The expected credit losses are calculated using a provision matrix
based on historical credit loss experience and assessments of current and future conditions. Any
subsequent recoveries of amounts previously written off relating to individually impaired trade
receivables are credited to the same line item in profit or loss where the original write-off was
recognised. The Group holds these trade receivables to collect the contractual cash flows, and these
cash flows are solely payments of principal and interest on the principal outstanding.
Trade receivables at fair value through profit or loss
Trade receivables that will be sold under the Group’s securitisation and factoring programmes are
initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial
recognition, they are recognised at fair value. These trade receivables are sold and derecognised
shortly after their initial recognition in the statement of financial position. Any change in fair value is
recognised through profit or loss. The objective of these trade receivables is to realise the cash flows
primarily through selling them.
Derecognition of trade receivables
A financial asset is derecognised when the contractual rights to the cash flows from the asset have
expired, when the contractual rights to receive the cash flows have been transferred and the Group
has transferred substantially all of the risks and rewards of ownership, or when the Group transfers a
financial asset but retains the contractual rights to receive the cash flows but at the same time
assumes a contractual obligation to pay the cash flows to another recipient (and remits the cash
flows to the other recipient without material delay once it has collected an amount from the original
asset, and is also prohibited to sell or pledge the original asset). Any interest in such a derecognised
financial asset that is retained by the Group is recognised as a separate asset or liability.
17
Cash and cash equivalents
(In € million)
Cash and cash equivalents (unrestricted)
Restricted cash
Total cash and cash equivalents
As of
31 Dec.
2022
490.0
13.8
503.8
As of
31 Dec.
2021
300.2
4.3
304.5
Cash and cash equivalents mainly consist of cash at bank but may, from time to time, also
include short-term bank deposits (€64.0 million as of 31 December 2022) with maturities
of three months or less that are subject to an insignificant risk of changes in value. The
restricted cash relates to cash collected for the benefit of the Group’s securitisation
partner.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
42
280
18
Trade and other payables
Trade and other payables mainly comprise trade payables, accruals for various customer
incentives and other accrued expenses.
Composition of trade and other payables
(In € million)
Trade payables
Related party payables
Liability for various customer incentive programmes
VAT payables
Accrued interest, third parties
Other current payables and accrued expenses
Current trade and other payables
Other non-current payables
Non-current payables
As of
31 Dec.
2022
406.6
2.4
369.5
17.5
8.5
232.3
1,036.8
17.4
17.4
As of
31 Dec.
2021
218.4
-
304.5
10.0
6.9
126.5
666.3
9.4
9.4
Total current and non-current trade and other payables
1,054.2
675.7
The increase in current trade and other payables since 31 December 2021 is impacted by
the acquisitions of Scholle IPN and Evergreen Asia in 2022.
Liabilities with an impact on the Group’s revenue
The Group has refund and contract liabilities in respect of liabilities relating to contracts
with customers accounted for under the revenue standard.
The Group’s incentive programmes relate to trade discounts, volume rebates and other
customer incentives linked primarily to aseptic carton sleeves volumes (see also note
6).
These programmes generally run over a calendar year, resulting in a gradual build-up over
the year of an accrual liability against revenue from the sale of aseptic carton sleeves. As
December 2021, the liabilities for customer incentive
of 31 December 2022 and 31
programmes mainly represent
incentives earned by customers under programmes
running over a calendar year that have not yet been settled by the Group. The remaining
part represents accruals built up for incentive programmes running over periods other
than a calendar year (ie. refund liabilities). The Group has recognised an insignificant
amount as revenue in the current period that was included in the balance of liabilities for
customer incentive programmes at the beginning of the period but was never paid out as
the conditions for the
incentive payments were not met (also applicable to the
comparative period).
The Group’s contract liabilities mainly comprise advance payments received from
customers in relation to the sale of aseptic carton sleeves and the sale of aseptic carton
filling lines under contracts accounted for under the revenue standard, but also to
advance payments in relation to the bag-in-box and spouted pouch business. These
advance payments are recognised as revenue within a short time frame from their initial
recognition in the statement of financial position. As of 31
December 2022, the Group had
million as of 31 December 2021). These advance
contract liabilities of €58.0 million (€24.9
payments are presented in the table above as part of other current payables and accrued
expenses. The amount of advance payments recognised as of 31
December 2021 relating
to the sale of sleeves and the sale of filling lines under contracts accounted for under the
revenue standard has been recognised as revenue in 2022.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
43
281
leases. If payments are received from customers before the filling
The Group also has advance payments received from customers relating to aseptic
carton filling lines that will be deployed under contracts that qualify to be accounted for as
operating
line
deployment date, they are initially presented as part of “Trade and other payables” and
included in other current payables and accrued expenses in the table above (€78.8 million
as of 31
December 2022 and €39.7 million as of 31 December 2021). Upon deployment of
the filling lines, the advance payments are reclassified to “Other liabilities” and presented
as deferred revenue liabilities. These deferred revenue liabilities are then released and
recognised as revenue over a certain period (see further note 20).
Accounting policy and significant estimates
Trade and other payables are initially recognised at fair value less any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are carried at amortised cost
using the effective interest method. The liability for accruals for various customer incentives is
estimated based on historical and current market trends as further described in note 6. The accruals
are presented against revenue.
19
Provisions
The Group’s provisions mainly relate to dismantling costs, warranties, restructuring
programmes as well as legal and regulatory matters.
Composition of provisions
(In € million)
Carrying amount as of 1 January 2021
Additions through business combination
Sale of subsidiary
Provisions made
Provisions used
Provisions reversed
Effect of movements in exchange rates
Carrying amount as of 31 December 2021
Current
Non-current
Carrying amount as of 31 December 2021
Carrying amount as of 1 January 2022
Additions through business combinations
Provisions made
Provisions used
Provisions reversed
Effect of movements in exchange rates
Carrying amount as of 31 December 2022
Current
Non-current
Carrying amount as of 31 December 2022
Dismantling
Product
warranty
Restructur
-ing
Other
Total
12.9
-
-
1.8
(0.4)
-
0.2
14.5
-
14.5
14.5
14.5
-
1.5
(0.1)
-
0.2
16.1
-
16.1
16.1
9.6
0.7
(0.3)
7.1
(2.5)
(6.0)
-
8.6
8.6
-
8.6
8.6
1.0
6.9
(1.5)
(7.1)
0.3
8.2
7.9
0.3
8.2
3.9
-
(9.6)
39.6
(10.4)
(13.6)
-
9.9
9.4
0.5
9.9
9.9
-
5.3
(10.9)
(0.4)
0.2
4.1
3.2
0.9
4.1
6.2
0.2
(1.8)
1.9
(2.4)
(0.3)
-
3.8
1.1
2.7
3.8
3.8
16.0
1.5
(0.9)
(0.3)
(0.8)
19.3
15.5
3.8
19.3
32.6
0.9
(11.7)
50.4
(15.7)
(19.9)
0.2
36.8
19.1
17.7
36.8
36.8
17.0
15.2
(13.4)
(7.8)
(0.1)
47.7
26.6
21.1
47.7
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
44
282
Restructuring provision
The Group has a small number of ongoing restructuring programmes. The Group’s
restructuring programmes are generally focused on reducing costs, streamlining the
organisation and adjusting headcount to be more closely aligned with the Group’s needs
and changing market demands. The main portion of the restructuring provision as of
31
December 2021 related to the closure of the Group’s Australian sleeves manufacturing
operations. Payments are usually expected to be executed within the next one or two
years. For further details, see note 9.
Other provisions
Other provisions mainly relate to legal and regulatory matters.
Accounting policy
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive
obligation that can be reliably estimated and it is probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are discounted if the time value of money is material.
The unwinding of the discount is recognised as part of finance expenses. A provision is classified as
current or non-current depending on whether the expected timing of the payment of the amounts
provided for is more than 12
months after the reporting date.
A provision for dismantling is recognised when the Group has an obligation to pay for dismantling
costs arising upon the return of a filling line and other related equipment. This obligation typically
arises upon deployment of aseptic carton filling lines (see also note 12). As such, the majority of the
obligations are non-current.
A provision for warranties is recognised for products under warranty as of the reporting date based
upon known failures and defects as well as sales volumes and past experience of the level of
problems reported and products returned. Warranty claims are expected to be settled within
12
months.
A provision for restructuring is recognised when the Group has approved a detailed and formal
restructuring plan, and the restructuring has either commenced or has been publicly announced. The
provision only includes direct costs that are necessarily entailed by the restructuring and not
associated with ongoing activities. No provision is made for future operating costs.
A provision for onerous contracts is recognised when the benefits expected to be derived by an
entity from a contract are lower than the unavoidable cost of meeting its obligations under the
contract.
A provision for legal and regulatory matters reflects management’s best estimate of the outcome
based on the facts known as of the reporting date.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
45
283
20 Other assets and liabilities
income, prepaid expenses and deferred
Other assets mainly comprise accrued
expenditure. Other liabilities mainly comprise deferred revenue relating to advance
payments received relating to aseptic carton filling lines deployed under contracts that
are accounted for as operating leases. The contingent consideration for Scholle IPN is also
liabilities are
liabilities. Moreover, the Group’s derivative assets and
part of other
presented as part of other assets or other liabilities. The derivatives primarily relate to
commodity and foreign currency derivatives but also to an interest rate swap. See notes
25 and 33 for additional details about the Group’s derivatives.
Composition of other assets
(In € million)
Derivative assets
Other current assets
Other current assets
Derivative assets
Other non-current assets
Other non-current assets
Total other current and non-current assets
Composition of other liabilities
(In € million)
Derivative liabilities
Deferred revenue
Other current liabilities
Contingent consideration
Deferred revenue
Other non-current liabilities
Total other current and non-current liabilities
As of
31 Dec.
2022
As of
31 Dec.
2021
4.3
22.5
26.8
8.9
27.0
35.9
62.7
26.3
14.1
40.4
-
23.9
23.9
64.3
As of
31 Dec.
2022
As of
31 Dec.
2021
23.4
92.8
116.2
113.2
264.8
378.0
494.2
6.3
81.9
88.2
-
268.2
268.2
356.4
Deferred revenue mainly relates to aseptic carton filling lines deployed under lease and
sale contracts that qualify to be accounted for as operating leases (see notes 5.5.2, 6, 12
and 18 for further details). Advance payments received under such contracts vary
between contracts and customers but are recognised as a deferred revenue liability in the
statement of financial position at the deployment date and released to profit or loss to
achieve recognition of revenue on a straight-line basis, generally over ten years for sale
contracts and over six years for lease contracts. Advance payments received before the
filling line deployment date are initially presented as part of “Trade and other payables”
and reclassified to this balance sheet position at the deployment date (see note 18).
See notes 9, 27 and 33 for details about the contingent consideration, which relates to the
acquisition of Scholle IPN.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
46
284
OUR FINANCING AND FINANCIAL RISK
MANAGEMENT
This section includes information about the Group’s financing in the form of loans and
borrowings and equity. The expenses for financing are also presented in this section.
Lastly, the Group’s financial risk management policy and exposure to liquidity, market and
credit risks are described.
21
Capital management
The Board of Directors is responsible for monitoring and managing the Group’s capital
structure, which comprises equity (share capital and additional paid-in capital) as well as
loans and borrowings.
The policy of the Board of Directors is to maintain an acceptable capital base to give
confidence to the Group’s shareholders and debtholders, and to sustain the future
development of the business. The Board of Directors monitors the Group’s financial
position to ensure that it complies at all times with its financial and other covenants as set
out in the indenture governing the senior unsecured notes, the SSD agreement and the
other credit agreements, as well as to ensure the payment of an appropriate level of
dividends to the shareholders.
As part of monitoring the Group’s financial position, the Board of Directors evaluates the
Group’s net debt and development of its net leverage ratio. Net leverage is defined by the
Group as net debt divided by adjusted EBITDA. Net debt comprises the Group’s current
and non-current loans and borrowings (including lease liabilities, and with notes and credit
facilities at principal amounts) less cash and cash equivalents (including any restricted
cash). See note
9 for the definition of adjusted EBITDA. Under the credit agreement for its
senior unsecured credit facilities, the Group is required not to exceed a net leverage ratio
Dollar term
of 4.0x (4.25x until 31
loan, the net leverage ratio cannot exceed 4.4x. Note
22 includes additional details about
the Group’s loans and borrowings.
December 2021). As per the credit agreement for the US
The gross debt as of 31 December 2022 was higher compared with 31 December 2021 as a
result of the financing of the acquisitions of Scholle IPN and Evergreen Asia in 2022, and
an increase in lease liabilities.
The table below presents the components of net debt and the net leverage ratio.
(In € million)
Gross debt
Cash and cash equivalents
Net debt
Net leverage ratio
As of
31 Dec.
20221
2,684.1
503.8
2,180.3
3.1x
As of
31 Dec.
20212
1,732.4
304.5
1,427.9
2.5x
1
2
In the calculation of the net leverage ratio as of 31 December 2022, adjusted EBITDA includes the adjusted EBITDA of Scholle IPN and Evergreen Asia from
1
January 2022.
In the calculation of the net leverage ratio as of 31 December 2021, adjusted EBITDA includes the adjusted EBITDA of the former joint ventures in the Middle East
from 1 January 2021.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
47
285
The Company purchases its own shares on the market. The repurchased shares are
intended to be used to settle obligations under the Group’s equity-settled share-based
payment plans and arrangements (see also notes 24 and 31).
In order to maintain or adjust the capital structure, the Board of Directors may elect to
take a number of measures, for example disposing of assets of the business, altering its
short- to medium-term plans with respect to capital projects and working capital levels, or
rebalancing the level of equity and debt in place.
22
Loans and borrowings
million on 27
May 2022. On 30 June 2022, the Company
To finance in part the acquisition of Scholle IPN and the repayment of the acquired
IPN external loans, the Group accessed an unsecured bridge loan facility of
Scholle
issued unsecured
€800
million.
Schuldscheindarlehen (“SSD”, a private German debt placement) totalling €650
Of this amount, €555
million was used on 30 June 2022 to reduce the unsecured bridge
loan facility. The remaining €95 million was used to partly finance the consideration for
July 2022, the Company entered into a new unsecured credit
Evergreen Asia. On 28
million). The major part
facility, consisting of a US
of the proceeds from the term loan was used to repay the remaining portion of the
unsecured bridge loan facility. Refer also to notes 4, 24 and
Dollar-denominated term loan ($270.0
27.
Apart from the borrowings taken up in June and July 2022, the Group’s loans and
borrowings mainly consist of senior unsecured Euro-denominated notes and senior
unsecured credit facilities. The senior unsecured credit facilities consist of one Euro-
denominated term loan and a multi-currency revolving credit facility. Liabilities under
lease contracts where the Group is the lessee are also included in loans and borrowings.
Composition of loans and borrowings
The table below shows the carrying amount of the Group’s loans and borrowings.
As of
31 Dec.
2022
As of
31 Dec.
2021
449.3
39.9
489.2
547.5
546.9
252.5
647.6
191.0
-
29.4
29.4
994.5
545.7
-
-
153.0
2,185.5
1,693.2
2,674.7
1,722.6
(In € million)
Senior unsecured notes
Lease liabilities
Current loans and borrowings
Senior unsecured notes
Senior unsecured Euro term loan
Unsecured US Dollar term loan
Unsecured SSD
Lease liabilities
Non-current loans and borrowings
Total loans and borrowings
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
48
286
Senior unsecured notes
The Group has two issues of senior unsecured notes from June 2020 at an aggregate
amount of €1,000
million. The notes are traded on the Global Exchange Market of
Euronext Dublin. The table below provides an overview of the main terms.
Principal amount
Maturity date
Interest rate
2023 notes
2025 notes
€450 million
€550 million
18 June 2023
18 June 2025
1.875%
2.125%
Interest on the notes is paid semi-annually. The notes can be redeemed in whole or in part
prior to 18 March 2023 for the 2023 notes, and prior to 18 March 2025 for the 2025 notes,
at par plus a make-whole premium. The notes can be redeemed in whole or in part on or
after 18 March 2023 for the 2023 notes, and on or after 18
March 2025 for the 2025 notes,
at a price equal to 100% of their respective principal amounts.
The obligations under the notes are guaranteed on a senior subordinated basis by the
Company on a stand-alone basis. Until September 2022, when the guarantor structure
changed, the obligations under the notes were guaranteed by Group subsidiaries. The
indenture governing the notes contains customary restrictive covenants and customary
events of default. The Group was in compliance with all covenants and there were no
events of default as of 31 December 2022 and 31
December 2021.
The Group has signed a €400 million unsecured bridge loan facility agreement (see
4). This facility may be used to repay the €450 million of the notes due in June 2023.
note
Senior unsecured credit facilities (Euro term loan and revolving credit
facility)
The Group’s senior unsecured credit facilities from June 2020 consist of one Euro-
denominated term loan and a committed multi-currency revolving credit facility. The
table below provides an overview of the main terms.
Principal amount Maturity date
Interest rate
Term loan
Revolving credit facility
€550 million
€300 million
June 2025
June 2025
Euribor+1.00%, with a Euribor floor of 0.00%
Euribor+1.00%, with a Euribor floor of 0.00%
Interest on the Euro term loan is paid semi-annually. The margin of 1.00% is subject to
semi-annual adjustments based on the Group’s net leverage (as defined in the credit
agreement). The margin is also subject to a maximum 0.05% per annum increase or
decrease based upon the achievement of certain annual sustainability-linked targets
(greenhouse gas emissions, or “GHG” emissions, and rankings per the EcoVadis Report).
No repayments of the term loan are due prior to maturity. The Group has the right to repay
the term loan in whole or in part without premium or penalty.
million as
The amount available under the multi-currency revolving credit facility is €295.1
million
of 31 December 2022 (€294.2 million as of 31 December 2021), due to €4.9
(€5.8
million as of 31 December 2021) in letters of credit being outstanding under an
ancillary facility. The Group pays a fee for the undrawn revolver amount per year for the
right to use the revolving credit facility (35% of the margin percentage on an annualised
basis, applied to the undrawn balance of the revolving credit facility).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
49
287
The obligations under the senior unsecured credit facilities are guaranteed by the
Company on a stand-alone basis. Until September 2022, when the guarantor structure
changed, the obligations under the senior unsecured credit facilities were guaranteed by
Group subsidiaries. The credit agreement contains customary positive and negative
covenants as well as customary events of default. The Group was in compliance with all
covenants and there were no events of default as of 31 December 2022 and 31 December
2021.
Unsecured bridge loan facility
On 27 May 2022, the Group accessed an unsecured bridge loan facility of €800
with an interest rate of Euribor+0.8% and a Euribor floor of 0.00%.
million,
million of the bridge loan facility using part of the
On 30 June 2022, the Group repaid €555
proceeds from the SSD (see below), without premium or penalty. On 29
July 2022, the
Group repaid the remaining €245 million of the bridge loan facility using the majority of
the proceeds from the new US Dollar term loan (see below), without premium or penalty.
Part of the proceeds from the bridge loan facility was used to finance the €415.5
million
cash portion of the consideration for Scholle IPN that was transferred to CLIL on 1 June
2022. The remaining part of the proceeds was used to repay external Euro and US Dollar
loans of Scholle IPN of €387.7
23 and 27 for the impact of a deal-
contingent derivative relating to the repayment of the US
million. See notes
Dollar loan.
Unsecured SSD
On 30 June 2022, the Group issued unsecured Schuldscheindarlehen (“SSD”, a private
million. Directly attributable transaction costs in
German debt placement) totalling €650
the form of arrangement and advisory fees for the six SSD tranches amounted to
€2.6
million. The table below provides an overview of the main terms of the six SSD
tranches.
Principal amount
Maturity date
Interest rate
SSD tranches 1-3
SSD tranches 4-6
€557.5 million June 2025–June 2029 Euribor+1.1%–1.6%, with a Euribor floor of 0.00%
2.79%–3.66%
€92.5 million June 2025–June 2029
The largest SSD tranche amounts to €423.5 million and is due in June 2027. The interest
rate is Euribor+1.3%, with a Euribor floor of 0.00%.
Interest on the SSD tranches with variable interest rates is paid semi-annually, while
interest on the SSD tranches with fixed interest rates is paid annually. The margin on the
SSD tranches is subject to a maximum 0.05% per annum increase or decrease based on
the achievement of certain annual sustainability-linked targets (with reference to the
Group’s EcoVadis score). The Group has the right to repay before maturity the three SSD
tranches with variable interest rates in whole or in part, without premium or penalty. The
three tranches with fixed interest rates can be repaid early against the payment of a
make-whole premium.
The obligations under the SSD are guaranteed by the Company on a stand-alone basis.
The SSD agreement contains customary events of default. There were no events of
default as of 31 December
2022.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
50
288
Unsecured credit facility (US Dollar term loan)
On 28 July 2022, the Group entered into a new unsecured credit facility, consisting of one
US Dollar-denominated term loan of $270.0 million. Directly attributable transaction costs
in the form of arrangement and advisory fees for the US Dollar term loan amounted to
€0.7 million. The table below provides an overview of the main terms.
Principal amount
Maturity date
Interest rate
Term loan
$270 million
29 July 2027
SOFR+1.25%, with an SOFR floor of 0.00%
Interest on the US Dollar term loan is payable quarterly. The margin of 1.25% is subject to
half-yearly adjustments based on the Group’s net leverage (as defined in the credit
agreement). The Group has entered into an interest rate swap to hedge the interest rate
cash flow exposure relating to the term loan (see also notes 25 and 33). No repayments of
the term loan are due prior to maturity. The Group has the right to repay the term loan in
whole or in part at the end of each interest period without premium or penalty.
The obligations under the US Dollar term loan are guaranteed by the Company on a stand-
alone basis. The credit agreement contains customary positive and negative covenants as
well as customary events of default. The Group was in compliance with all covenants and
there were no events of default as of 31 December 2022.
Unsecured credit facility
million. Cash
In March 2021, the Group accessed an unsecured credit facility of €100.0
from the new credit facility was drawn in two tranches of €50.0 million each on 31
March
2021 (at an interest rate lower than the applicable interest rate on the revolving credit
facility). The two tranches, as per the agreement, were repaid in September and
December 2021.
The amounts drawn in March 2021, together with available cash, were used to repay
external loans of €139.5 million of one of the former joint ventures in the Middle East. The
difference of €3.7
million between the carrying amount of the loans as of the repayment
date and the amount paid is presented as part of the net finance expense (see note
23).
Lease liabilities
A maturity analysis of the Group’s lease liabilities is provided below.
(In € million)
Less than 1 year
Between 1 and 5 years
More than 5 years
Contractual
undiscounted
cash flows
Interest
2022
52.8
139.1
146.3
338.2
2021
37.9
105.4
133.3
276.6
2022
2021
12.9
41.6
52.8
107.3
8.5
29.8
55.9
94.2
Lease liabilities
2022
2021
39.9
97.5
93.5
29.4
75.6
77.4
230.9
182.4
The Group’s lease liabilities mainly relate to leases of office buildings, production-related
buildings and equipment, warehouses and cars. See also note 13.
Note 13 includes information about lease contracts to which the Group has committed but
where the lease has not yet commenced.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
51
289
Changes in liabilities arising from financing activities
The following two tables present changes in liabilities arising from financing activities.
The main transactions in the year ended 31 December 2022 relate to the drawing and
subsequent repayment of an unsecured bridge loan facility, the repayment of the external
loans of Scholle IPN, the issue of SSD and the drawing of a new US
Dollar term loan. The
main transactions in the year ended 31 December 2021 related to the drawing and
subsequent repayment of two tranches under a new credit facility as well as the
repayment of external loans of one of the former joint ventures in the Middle East.
Cash flows
from/(used in):
1 Jan.
2022
Financing
activities
Operating
activities
Effect of
business
combi-
nations2
Effect of
move-
ments in
exchange
rates
31 Dec.
2022
Non-cash
movements
1,550.0
(8.7)
(1.1)
536.5
(3.0)
-
-
(3.3)
-
389.4
-
-
-
6.5
0.3
(22.7) 2,453.2
(8.6)
(0.8)
(0.1)
-
1,540.2
533.5
(3.3)
389.4
6.8
(22.8) 2,443.8
(In € million)
Principal amount1
Transaction costs
Original issue discount
Loans and borrowings,
excl. lease liabilities
Lease liabilities
182.4
Total loans and borrowings
1,722.6
Capitalised cost for revolving
credit facility
Interest: Accrued/(paid)
(1.2)
6.9
1,728.3
(34.5)
499.0
-
-
499.0
-
5.3
(3.3)
394.7
75.1
81.9
2.6
230.9
(20.2) 2,674.7
-
(52.2)
(55.5)
-
1.1
395.8
0.4
52.6
134.9
-
0.1
(0.8)
8.5
(20.1) 2,682.4
Derivative (assets)/liabilities
from financing activities
Total (assets)/liabilities
from financing activities
and cash/non-cash changes
-
-
-
-
(9.0)
0.1
(8.9)
1,728.3
499.0
(55.5)
395.8
125.9
(20.0) 2,673.5
1
2
million relating to the principal amount of loans and borrowings (excluding lease liabilities) shows the net effect of accessing
The financing cash inflow of €536.5
the unsecured bridge loan facility in May 2022 (€800.0
million of cash
outflow and €15.5 million of cash inflow resulting from the settlement of the foreign currency deal-contingent derivative that the Group had entered into for the
repayment of the US Dollar external loans – see notes 23 and 27), the issue of unsecured SSD in June 2022 (€650.0
million of cash inflow), a new unsecured
million of cash inflow), the subsequent repayments in June and July 2022 of the unsecured bridge loan facility that was accessed in
US
May 2022 (in total €800.0
million of cash outflow) and the repayment of other third-party debt of Scholle IPN (€1.3 million of cash outflow). See also the sections
”Unsecured bridge loan facility”, “Unsecured SSD” and “Unsecured credit facility (US Dollar term loan)” in this note.
million of cash inflow), the repayment of external loans of Scholle IPN in June 2022 (€387.7
Dollar term loan (€260.0
The addition of €389.4
presented in the column “Effect of business combinations” result from the accounting for the acquisitions of Scholle IPN and Evergreen Asia (see note 27).
million to the principal amount of loans and borrowings (excluding lease liabilities) and the addition of €5.3
million to lease liabilities
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
52
290
Cash flows
from/(used in):
1 Jan.
2021
Financing
activities
Operating
activities
Effect of
business
combi-
nation2
Effect of
move-
ments in
exchange
rates
31 Dec.
2021
Non-cash
movements
1,550.0
(11.9)
(1.4)
(139.5)
-
-
1,536.7
(139.5)
147.0
1,683.7
(26.7)
(166.2)
-
-
-
-
-
-
139.5
-
-
139.5
26.7
166.2
(1.5)
5.9
-
-
-
(40.6)
-
2.7
-
3.2
0.3
3.5
21.7
25.2
0.3
38.8
- 1,550.0
-
(8.7)
-
(1.1)
- 1,540.2
13.7
182.4
13.7 1,722.6
-
0.1
(1.2)
6.9
1,688.1
(166.2)
(40.6)
168.9
64.3
13.8 1,728.3
(In € million)
Principal amount1
Transaction costs
Original issue discount
Loans and borrowings,
excl. lease liabilities
Lease liabilities
Total loans and borrowings
Capitalised cost for revolving
credit facility
Interest: Accrued/(paid)
Total (assets)/liabilities
from financing activities
and cash/non-cash changes
1
2
million relating to the principal amount of loans and borrowings (excluding lease liabilities) shows the net effect of using the
million of cash inflow), repayment of external loans of one of the former joint ventures
million of cash outflow) and the subsequent repayments in September and December 2021 of the two tranches that had been drawn in March 2021 under
The financing cash outflow of €139.5
new unsecured credit facility in March 2021 (two tranches totalling €100.0
(€139.5
the new unsecured credit facility (in total €100.0
million of cash outflow). See also the section ”Unsecured credit facility” in this note and note 23.
The addition of €139.5
million to lease liabilities
million to the principal amount of loans and borrowings (excluding lease liabilities) and the addition of €26.7
presented in the column “Effect of business combination” result from the accounting for the acquisition of the remaining shares of the joint ventures in the Middle
East (see note 27). The line “Transaction costs” is also impacted by the acquisition of the remaining shares of the joint ventures, even if the net impact is zero. The
Group initially recognised transaction costs of €3.7
million relating to the external loans, but derecognised the same amount on the early repayment of the loans
that took place shortly after the acquisition.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
53
291
Accounting policy
Loans and borrowings (the Group’s notes, the SSD and the term loans) are initially recognised at fair
value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities
are measured at amortised cost using the effective interest method. Loans and other borrowings are
classified as current or non-current liabilities depending on whether the Group has an unconditional
right to defer settlement for at least twelve months after the reporting period.
The accounting for a change to the cash flows of a financial liability measured at amortised cost
(such as the Group’s notes, SSD and term loans) depends on the nature of the change. If a floating-
rate debt instrument is modified to change its interest rate, the modification is regarded as a
repricing to the new market interest rate, which is accounted for prospectively by adjusting the
effective interest over the remaining life of the debt instrument. A floating-rate instrument is one
whose original contractual terms contain a provision such that the cash flows will (or might) be reset
to reflect movements in market interest rates. If a change in cash flows arises due to renegotiation or
other modifications (including modifications that do not reflect movements in market interest rates),
and the renegotiation or modification does not result in the derecognition of the financial liability, the
gross carrying amount is recalculated and any gain or loss recognised in profit or loss as part of the
net finance expense. If a renegotiation or modification represents a settlement of the original debt, it
is accounted for as being extinguished.
A financial liability (or a part of it) is derecognised when it is extinguished, ie. when the contractual
obligations are discharged, cancelled, expired or replaced by a new liability with substantially
modified terms. The difference between the carrying amount of the financial liability (or part of a
financial liability) extinguished and the consideration paid is recognised in profit or loss as part of the
net finance expense. Any costs or fees incurred are recognised as part of the gain or loss on
extinguishment.
Lease liabilities
The Group’s lease liabilities are initially measured at the present value of the lease payments
outstanding as of the lease commencement date, discounted at the interest rate implicit in the lease
or, if that rate cannot be determined (which is normally the case), at the incremental borrowing rate.
Lease payments included in the measurement of the lease liabilities include fixed lease payments and
variable lease payments that depend on an index. Other variable lease payments are recognised in
profit or loss. The Group does not separate non-lease components from lease components in its
lease contracts. Extension, termination and purchase options that, at the lease commencement date,
are reasonably certain to be exercised are considered when assessing the lease term and/or
measuring the lease liability.
Subsequent to initial recognition, the lease liabilities are measured by increasing the carrying amount
to reflect interest on the lease liability (applying the effective interest method); reducing the carrying
amount to reflect lease payments made; and remeasuring the carrying amount to reflect any
contract modifications or reassessments relating to, for example, changed future lease payments
linked to changes in an index and changes in the assessment of whether an extension, termination or
purchase option will be exercised.
When a lease liability is remeasured, the corresponding adjustment is generally made to the carrying
amount of the related right-of-use asset (see note 13).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
54
292
23
Finance income and expenses
The Group’s net finance expense is mainly related to finance expenses for its loans and
borrowings, fair value changes on associated derivative instruments and foreign currency
exchange gains and losses relating to the loans and borrowings.
Composition of net finance expense
(In € million)
Interest income
Net foreign currency exchange gain
Realised gain on settlement of deal-contingent derivative
Net change in fair value of financing-related derivatives
Net interest income on interest rate swap
Finance income
Interest expense on:
- Loan and borrowings (excluding lease liabilities)
- Lease liabilities
Amortisation of original issue discount
Amortisation of transaction costs
Net effect of early repayment of loans
Other
Finance expenses
Net finance expense
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
2.1
8.8
15.5
9.0
0.5
35.9
(35.9)
(10.8)
(0.3)
(7.0)
(1.0)
(6.9)
(61.9)
(26.0)
4.6
11.4
-
-
-
16.0
(25.4)
(9.1)
(0.3)
(3.6)
(3.7)
(5.3)
(47.4)
(31.4)
For the year ended 31 December 2022, the net foreign currency exchange gain primarily
consists of positive translation effects on the portion of the Euro-denominated term loan
that is held by an entity with the US
Dollar as its functional currency resulting from the
strengthening of the US Dollar against the Euro. For the year ended 31 December 2021, the
net foreign currency exchange gain primarily consisted of positive translation effects on
Dollar as its functional currency
Euro-denominated debt held by an entity with the US
resulting from the strengthening of the US Dollar against the Euro.
The settlement of the deal-contingent foreign currency derivative that the Group entered
into relating to the repayment of the external US Dollar loan of Scholle IPN resulted in a
realised gain of €15.5
million in the year ended 31 December 2022 (see note 27).
See notes 25 and 33 for information about the net change in fair value of financing-
related derivatives (an interest-rate swap) and the net interest income on the interest
swap.
For the year ended 31
out-of-period indirect tax recoveries (see note 8).
December 2021, interest income included interest of €3.1
million on
Other finance expenses primarily consist of revolver commitment fees, securitisation and
factoring expenses and interest expense on current tax liabilities.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
55
293
24
Equity
This note includes information about the Company’s share capital and dividend payments.
The other components of equity consist of additional paid-in capital, the translation
reserve, treasury shares and retained earnings. See note 27 for information about the
hedging reserve (the sections “Deal-contingent derivatives” and “Accounting policy”). The
in the year ended
Group applied cash flow hedge accounting for the first time
31
December 2022.
The Company’s shares are listed on SIX
Swiss Exchange.
Issued share capital
The Company has 382,270,872 shares
(337,520,872
overview of these shares.
shares as of 31
issue as of 31 December 2022
December 2021), all fully paid. The table below provides an
in
Number of shares
Balance as of 1 January 2021
Issue of shares on 22 February 2021
Balance as of 31 December 2021
Balance as of 1 January 2022
Issue of shares on 18 May 2022
Issue of shares on 23 May 2022
Balance as of 31 December 2022
Total shares
320,053,240
17,467,632
337,520,872
337,520,872
11,000,000
33,750,000
382,270,872
On 18 May 2022, the Company issued 11,000,000 ordinary shares with a nominal value of
CHF 0.01 per share from authorised share capital under exclusion of the subscription
rights of existing shareholders. The new shares were offered to investors as part of an
19.40
accelerated book building process. The placement of the shares at a price of CHF
per share generated gross proceeds of CHF
million), resulting in an
million and an increase in the additional paid-in capital
increase in the share capital of €0.1
of €203.4
million that are directly attributable to the
placement of the shares have been recognised as a deduction from equity (additional
paid-in capital). The net proceeds from the capital increase amounted to €199.9
million
and were used to fund, in part, the acquisition of Evergreen Asia (see also notes 4, 22
27). The new shares were listed and admitted to trading on SIX Swiss Exchange on
and
19
May 2022. The newly issued shares have the same rights as the Company’s other
ordinary shares.
million. The costs incurred of €3.6
213,400,000 (€203.5
On 23 May 2022, the Company issued 33,750,000 ordinary shares with a nominal value of
CHF 0.01 per share from authorised share capital under exclusion of the subscription
of the
rights of existing shareholders. The shares, together with a cash payment, were part
consideration for Scholle IPN that was transferred to CLIL on 1
notes 27
and
value of the issued shares
and the fair value of the shares at the acquisition date is presented as additional paid-in
newly issued shares have the same rights as the Company’s other ordinary
capital. The
shares. CLIL has agreed to a lock-up period for these shares of 18-24
months, subject to
customary exceptions.
29). The difference of €686.5 million between the nominal
June 2022 (see
On 22 February 2021, the Company issued 17,467,632 ordinary shares with a nominal value
of CHF 0.01 per share from authorised share capital under exclusion of the subscription
rights of existing shareholders. The shares, together with a cash payment, were part of the
consideration transferred to OIG upon the acquisition of the remaining shares of the joint
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
56
294
27). The difference of
ventures in the Middle East on 25
€323.1
million between the nominal value of the issued shares and the fair value of the
shares at the acquisition date is presented as additional paid-in capital. The newly issued
shares have the same rights as the Company’s other ordinary shares. OIG has agreed to a
lock-up period for these shares of 24 months, subject to customary exceptions.
February 2021 (see note
The 382,270,872 shares in issue as of 31 December 2022 represent €3.4
December 2021).
capital (€3.0 million as of 31
million of share
Authorised share capital and conditional share capital
The Company has authorised share capital of CHF 565,062.61 as of 31
(CHF
(CHF 640,106.48 as of 31 December 2021).
December 2021) and conditional share capital of CHF
675,041.74 as of 31
December 2022
640,106.48
Before the Annual General Meeting held on 7 April 2022, the Board of Directors was
authorised, at any time until 21 April 2023, to increase the
Company’s share capital
through the issue of up to 67,504,174 shares. The
authority to issue shares from authorised
share capital under exclusion of the subscription rights of existing shareholders was
limited to a maximum of 33,752,087
shares, equalling CHF
337,520.87.
IPN having occurred or being
337,520.87), corresponding to 33.75
additional authorised share capital of 10% of the then
CHF
The Annual General Meeting held on 7 April 2022 approved, subject to consummation of
imminent, the creation
the acquisition of Scholle
issued share capital
of
million shares that could be issued without
(ie.
subscription rights of existing shareholders. Hence, the
authority to issue shares from
authorised share capital under exclusion of the subscription rights of existing shareholders
675,041.74, subject to the
increased to a maximum of 67,504,174 shares, equalling CHF
acquisition of Scholle IPN having occurred or being imminent. This allowed the Company,
after the issue of shares from authorised share capital on 18 May 2022, again to use
authorised share capital to issue and transfer shares to CLIL as part of the consideration
for Scholle IPN (see the section above and note 27).
Company’s share capital through the
April
As of 31 December 2022, the Board of Directors is authorised, at any time until 21
increase the
issue of up to
2023, to
56,506,261
shares. Capital increases from authorised and conditional share capital are
subject to a single combined limit, and may not exceed 64,010,648 shares, equalling
CHF
authority to issue shares from authorised and conditional
share capital under exclusion of the subscription and advance subscription rights
respectively is limited to a single combined maximum of 22,754,174 shares, equalling
CHF
640,106.48. However, the
227,541.74.
The authorised share capital can be used for various purposes. This provides flexibility to
seek additional capital, if required, for investment and acquisition opportunities or to take
advantage of favourable market conditions to further improve the Group’s capital
position. The conditional share capital is divided into CHF
160,026.62 for employee benefit
plans and CHF
480,079.86 for equity-linked financing instruments as of 31 December
2022 (also as of 31 December 2021).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
57
295
Treasury shares
The Company purchases its own shares on the market to settle its obligations under the
31). The
Group’s equity-settled share-based payment plans and arrangements (see note
shares as of
Company held 23,295
31 December 2021), representing an amount of €1.3
December
2021) and including foreign currency translation impacts. All treasury shares are carried at
acquisition cost.
December 2022 (2,430
million (€0.1 million as of 31
shares for this purpose as of 31
In the year ended 31 December 2022, the Company transferred 728,261 treasury shares
(representing €15.1 million) to participants in the Group’s equity-settled share-based
payment plans and arrangements.
2022
2021
(Number of treasury shares or in € million)
Number
Amount
Number
Amount
Balance as of 1 January
Purchases
Transfer under equity-settled share-based payment
plans and arrangements
Balance as of 31 December
2,430
749,126
(728,261)
23,295
(0.1)
(16.3)
15.1
(1.3)
6,274
26,739
(30,583)
2,430
(0.1)
(0.7)
0.7
(0.1)
Dividends
For the year ended 31 December 2022, the Board of Directors will propose to the Annual
General Meeting to be held on 20 April 2023 a dividend payment of CHF
0.47 per share,
totalling CHF 179.7 million (which, as per the exchange rate as of 31
December 2022, would
million). The dividend payment to be proposed is not recognised as a liability.
equal €182.5
A dividend of CHF 0.45 per share, totalling CHF 151.9 million (€147.9
million), was paid to
shareholders from the capital contribution reserve (additional paid-in capital) in April 2022.
The dividend payment was not recognised as a liability as of 31
December 2021.
A dividend of CHF 0.42 per share, totalling CHF 141.8 million (€128.1
million), was paid to
shareholders from the capital contribution reserve (additional paid-in capital) in April 2021.
Accounting policy
Incremental costs directly attributable to the issue of shares and purchase of treasury shares are
recognised as a deduction from equity. Any resulting tax effects of any transaction costs that are
recognised in equity are also reflected in equity.
Treasury shares
The cost of repurchased shares is presented as a deduction from equity, in the separate category
treasury shares. When treasury shares are subsequently transferred to settle the Group’s obligations
under its equity-settled share-based payment plans and arrangements (or sold, if applicable), the
related amount recognised as a share-based payment expense (or any amount received under a sale)
is recognised as an increase in equity. Any resulting surplus or deficit is presented as an adjustment
to additional paid-in capital. The Group applies the average cost method to calculate the surplus or
deficit on the transfer or sale of treasury shares.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
58
296
25
Financial risk management
In the course of its business, the Group is exposed to a number of financial risks: liquidity
risk, market risk (including currency risk, commodity risk and interest rate risk) and credit
risk. This note presents the Group’s objectives, policies and processes for managing its
exposure to these financial risks. Note 33 includes an overview of the derivative financial
instruments that the Group has entered into to mitigate its market risk exposure.
Exposure to liquidity, market and credit risks arises in the normal course of the Group’s
business. Management and the Board of Directors have overall responsibility for the
establishment and oversight of the Group’s financial risk management framework.
Management has established a treasury policy that identifies risks faced by the Group and
sets out policies and procedures to mitigate those risks. These policies and procedures are
now also followed by Scholle IPN and Evergreen Asia. Financial risk management is
primarily carried out by the Group’s Treasury function. Management has delegated
authority levels and authorised the use of various financial instruments to a restricted
number of personnel within the Treasury function.
Liquidity risk
Liquidity risk is the risk that the Group will not meet its contractual obligations as they fall
due. The Group evaluates its liquidity requirements on an ongoing basis using various cash
and financial planning analyses and ensures that it has sufficient cash to meet expected
lease
operating expenses, repayments of and
payments.
interest payments on
its debt and
The Group generates sufficient cash flows from its operating activities to meet obligations
arising from its financial liabilities. It has a multi-currency revolving credit facility in place
to cover potential shortfalls and access to local
working capital facilities in various
if needed to support the cash management of
jurisdictions, which are available
local
million
December 2021). Furthermore, as of
as of 31
31
December 2022, it had access to an additional €295.1 million under its committed
multi-currency revolving credit facility (€294.2
operations. The Group had unrestricted cash and cash equivalents of €490.0
million as of 31
December 2022 (€300.2
December 2021).
million as of 31
The following table includes information about the remaining contractual maturities for
the Group’s non-derivative financial liabilities as of 31 December 2022. The table includes
both interest and principal cash flows. Balances due within one year are equal to their
carrying amounts as the impact of discounting is not significant.
Carrying
amount
Total
Up to
1 year 1-2 years 2-5 years
More than
5 years
Contractual cash flows
(1,036.7)
(1,036.7)
(1,019.4)
(4.5)
(6.2)
(6.6)
(996.8)
(546.9)
(252.5)
(647.6)
(230.9)
(113.2)
(1,032.8)
(603.9)
(318.2)
(762.4)
(338.2)
(212.3)
(465.6)
(21.8)
(13.7)
(24.8)
(52.8)
-
(11.7)
(22.0)
(13.7)
(25.2)
(45.7)
(67.5)
(555.5)
(560.1)
(290.8)
(622.7)
(93.4)
(144.8)
-
-
-
(89.7)
(146.3)
-
(3,824.6)
(4,304.5)
(1,598.1)
(190.3)
(2,273.5)
(242.6)
(In € million)
As of 31 December 2022
Trade and other payables
Loans and borrowings:
- Senior unsecured notes
- Senior unsecured Euro term loan
- Unsecured US Dollar term loan
- Unsecured SSD
- Lease liabilities
Contingent consideration
Total non-derivative
financial liabilities
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
59
297
The agreements with the Group’s note holders and other lenders contain covenants and
certain clauses that may require earlier repayments than indicated in the table above. The
Group monitors the covenants as well as the aforementioned clauses on a regular basis to
ensure that it is in compliance with the agreements at all times.
The interest payments on the two term loans and three of the SSD tranches are variable.
The interest rate amounts included in the table above that relate to those borrowings will
therefore change if the market interest rates (Euribor or SOFR) change. The interest rate
amounts are also subject to change depending on the Group’s net leverage and/or the
achievement of sustainability-linked targets. See note 22.
The Group has entered into an interest rate swap that fixes the variable interest rate on its
US Dollar term loan for three years, which is not considered in the table above (see section
“Interest rate risk” in this note). As of 31 December 2022, the interest rate swap is
estimated to reduce the interest payments on the US Dollar term loan by approximately
€5
million in 2023, €3 million in 2024 and €1 million in 2025.
Significant judgement is involved in assessing the future cash flows relating to the
contingent consideration for Scholle IPN (see notes 27 and 33), and the final payments
may be different from the amounts in the table above. The contingent consideration is
included in other non-current liabilities.
The Group enters into derivative contracts as part of operating the business and may,
from time to time, also enter into financing-related derivatives. Commodity derivative
contracts are net cash-settled. Foreign currency derivative contracts and financing-
related derivative contracts are net or gross cash-settled. The related derivative assets
and liabilities recognised as of 31 December 2022 and 31 December 2021 represent the
Group’s liquidity exposure as of that date (see note 33). The cash flows resulting from a
settlement of the derivative contracts may change as commodity prices, exchange rates
and interest rates change. However, the overall impact on the Group’s liquidity from the
derivative contracts is not deemed to be significant. The expected impact of the Group’s
interest rate swap is described above. See sections “Currency risk” and “Commodity price
risk” in this note for additional details about the Group’s outstanding foreign currency and
commodity derivative contracts.
The following table includes information about the remaining contractual maturities for
the Group’s non-derivative financial liabilities as of 31 December 2021.
(In € million)
As of 31 December 2021
Trade and other payables
Loans and borrowings:
- Senior unsecured notes
- Senior unsecured Euro term loan
- Lease liabilities
Total non-derivative
financial liabilities
Carrying
amount
Total
Up to
1 year 1-2 years 2-5 years
More than
5 years
Contractual cash flows
(665.7)
(665.7)
(656.2)
(2.5)
(4.5)
(2.5)
(994.5)
(545.7)
(182.4)
(1,052.9)
(573.0)
(276.6)
(20.2)
(6.5)
(37.9)
(465.6)
(6.7)
(33.3)
(567.1)
(559.8)
(72.1)
-
-
(133.3)
(2,388.3)
(2,568.2)
(720.8)
(508.1)
(1,203.5)
(135.8)
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
60
298
Market risk
Market risk is the risk that changes in market prices, such as foreign currency exchange
rates, commodity prices and interest rates, will affect the cash flows or the fair value of
the Group’s holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters.
The Group buys and sells derivatives in the ordinary course of business to manage market
risks. The Group does not enter into derivative contracts for speculative purposes. Hedge
accounting under IFRS 9 is not applied. However, see the section “Currency risk” below
and note 27 for an exception to this policy in the year ended 31 December 2022.
Currency risk
As a result of the Group’s international operations, it is exposed to foreign currency risk on
sales, purchases, borrowings and dividend payments that are denominated in currencies
that are not the functional currency of the entity involved in the transaction. The Group is
also exposed to translation currency risk arising from the translation of the assets,
liabilities and results of its foreign entities from their respective functional currencies into
Euro, the Group’s presentation currency. The functional currencies of the subsidiaries are
mainly Euro, US
Dollar, Swiss Franc, Chinese Renminbi, Thai Baht, Brazilian Real and
Mexican Peso.
In accordance with the Group’s Treasury policy, the Group seeks to minimise transaction
currency risk via natural offsets wherever possible. Therefore, when commercially
feasible, the Group incurs costs in the same currencies in which cash flows are generated.
In addition, the Group systematically hedges its major transactional currency exposures
(by entering into foreign currency derivative contracts), using a twelve-month rolling
layered approach. See also note 8. The Group does not hedge its exposure to translation
gains or losses related to the financial results of its entities with a functional currency other
than the Euro.
Dollar payments relating to
To manage the foreign currency exposure arising from the US
the acquisitions of Scholle IPN and Evergreen Asia, the Group entered into deal-
contingent foreign currency derivatives in the year ended 31 December 2022. These
derivatives were designated as hedging instruments. See note 27 for further details.
The following table provides an overview of the outstanding foreign currency derivative
contracts entered into as part of the operating business as of 31
December
2022.
Type
Non-deliverable
forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Contract
type
Curr-
ency
Contracted
volume
Counter-
currency
Contracted
conversion range
Contracted
date of maturity
Buy
Buy
Buy
Sell
Buy
Buy
Buy
Buy
Buy
Buy
€
€
$
$
€
$
€
€
$
$
17,380,000
61,828,988
13,099,223
34,625,000
16,550,000
17,000,000
6,520,880
73,980,000
388,000
36,180,000
BRL
THB
THB
THB
CNY
CNY
AUD
$
AUD
MXN
Jan. 2023 - Dec. 2023
5.1890 - 6.7060
36.3065 - 37.7894
Jan. 2023 - Dec. 2023
34.5900 - 34.5930
Jan. 2023 - Jan. 2023
31.9681 - 37.7439
Jan. 2023 - Dec. 2023
6.9113 - 7.4471
Jan. 2023 - Dec. 2023
6.6625 - 7.2636 Apr. 2023 - Apr. 2023
1.5295 - 1.5698
Jan. 2023 - Jul. 2023
0.9905 - 1.1581
Jan. 2023 - Dec. 2023
Jan. 2023 - Mar. 2023
1.4801 - 1.4836
Jan. 2023 - Dec. 2023
19.5333 - 22.8202
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
61
299
The following table provides an overview of the outstanding foreign currency derivative
contracts entered into as part of the operating business as of 31
December
2021.
Type
Non-deliverable
forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Contract
type
Curr-
ency
Contracted
volume
Counter-
currency
Contracted
conversion range
Contracted
date of maturity
Buy
Buy
Sell
Sell
Buy
Buy
Buy
Buy
Buy
Buy
€
€
€
$
€
$
€
$
€
$
15,055,000
51,015,000
9,315,000
1,610,000
26,880,000
12,865,000
28,610,000
20,280,000
5,638,368
103,787
BRL
THB
THB
THB
CNY
CNY
$
MXN
AUD
AUD
6.3595 - 7.1603
36.7497 - 39.5041
36.9116 - 38.0044
30.0091 - 31.1080
7.2701 - 8.1547
6.4166 - 6.7201
1.1327 - 1.2342
20.4200 - 22.0138
1.5532 - 1.6039
1.3256 - 1.3508
Jan. 2022 - Oct. 2022
Jan. 2022 - Oct. 2022
Jan. 2022 - Mar. 2022
Jan. 2022 - Mar. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Oct. 2022
Jan. 2022 - Oct. 2022
Jan. 2022 - Jun. 2022
Jan. 2022 - Jun. 2022
The Group’s primary transaction currency exposure as of 31
December 2022 relates to
intra-group Euro-denominated loan receivables of entities with the Swiss Franc as their
functional currency and to US Dollar-denominated loan payables of entities with the Euro
as their functional currency. A 5% weakening of the Euro against the Swiss Franc as of
December 2022 would have resulted in an additional unrealised foreign currency
31
million as of 31 December 2022. A 5% weakening of the Euro
exchange loss of €18.4
against the US Dollar as of 31
December 2022 would have resulted in an additional
unrealised foreign currency exchange loss of €19.6
December 2022.
million as of 31
December 2021 related to
The Group’s primary transaction currency exposure as of 31
intra-group Euro-denominated loan receivables of entities with the Swiss Franc as their
functional currency and to intra-group US Dollar-denominated loan payables of entities
with the Euro as their functional currency. A 5% weakening of the Euro against the Swiss
December 2021 would have resulted in an additional unrealised foreign
Franc as of 31
million as of 31 December 2021. A 5% weakening of the
currency exchange loss of €5.6
Euro against the US Dollar as of 31
December 2021 would have resulted in an additional
unrealised foreign currency exchange loss of €3.2
December 2021.
million as of 31
Commodity price risk
Commodity price risk is the risk that changes in the prices of commodities purchased by
the Group and used as inputs in the production process may impact the Group, as such
price changes cannot always be passed on to the customers on a timely basis (see also
note 5.4). The majority of the Scholle IPN customer contracts include clauses that enable
commodity price fluctuations to be passed on to the customers. As this is not the case for
the customer contracts in the carton business, there is generally a time lag between
increased commodity prices and the implementation of higher customer prices.
The Group’s exposure to commodity price risk arises principally from the purchase of
polymers and aluminium. The Group’s objective is to ensure that the commodity price risk
exposure in the current year is kept at an acceptable level. The Group generally purchases
commodities at spot market prices and uses derivatives to hedge the exposure in relation
to the cost of polymers (and their feedstocks) and aluminium. This strategy means that
the Group is able to fix the raw material prices for the majority of its anticipated polymer
and aluminium purchases, which substantially reduces the exposure to raw material price
fluctuations over that period.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
62
300
The realised gain or loss arising from derivative commodity contracts is recognised in cost
of sales, while the unrealised gain or loss associated with derivative commodity contracts
is recognised in other income or expenses.
The Group recognised an unrealised loss of €46.0 million in the year ended 31 December
2022 and an unrealised gain of €12.7 million in the year ended 31
December 2021 relating
to its derivative commodity contracts as a component of other income. The Group
recognised a realised gain of €33.5 million in the year ended 31 December 2022 and a
realised gain of €63.2 million in the year ended 31
December 2021 relating to its derivative
commodity contracts as a component of cost of sales.
The following table provides an overview of the outstanding commodity derivative
contracts as of 31 December 2022.
Type
Unit of
measure
Contracted
volume
Contracted
price range
Contracted
date of maturity
Aluminium swaps
Aluminium premium swaps
Polymer swaps
Polymer swaps
Polymer swaps
Polymer swaps
Polymer swaps
Monomer swaps
Electricity swaps
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
megawatt hour
18,060
9,050
19,580
2,040
6,660
4,200
8,100
29,775
12,500
$2,268 - $3,409
$294 - $445
€2,025 - €2,307
€2,112
$1,250
$1,665
$1,560
€1,230 - €1,566
€200 - €235
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Jan. 2023 - Dec. 2023
Feb. 2023 - Oct. 2023
The following table provides an overview of the outstanding commodity derivative
contracts as of 31 December 2021.
Type
Unit of
measure
Contracted
volume
Contracted
price range
Contracted
date of maturity
Aluminium swaps
Aluminium premium swaps
Polymer swaps
Polymer swaps
Polymer swaps
Polymer swaps
Monomer swaps
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
metric tonne
23,060
6,630
16,620
9,780
6,000
21,820
39,410
$2,063 - $3,055
$174 - $353
€1,507 - €1,930
€1,230 - €1,477
$1,265
$1,265 - $1,620
€911 - €1,239
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Jan. 2022 - Dec. 2022
Assuming a 10% parallel upward or downward movement in the price curve used to value
the commodity derivative contracts with all other variables remaining constant, a
remeasurement of commodity derivative contracts as of 31
December 2022 would have
had an impact of €15.9 million on the Group’s profit before income tax (an impact of
€19.7
million on the profit before income tax as of 31
December 2021).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
63
301
Interest rate risk
The Group’s interest rate risk arises primarily from variable interest rates on its Euro and
US Dollar term loans, three of the tranches of its SSD and on potential drawings on its
revolving credit facility but also from cash and cash equivalents. The Group pays a fixed
interest rate on its notes and on three of the tranches of its SSD.
The Group has entered into a three-year interest rate swap to hedge the cash flow
exposure arising on its US Dollar term loan at variable interest rate. The swap is presented
as a financing-related derivative as part of other non-current assets. The fair value
changes are recognised in finance income or finance expenses. See section “Liquidity risk”
and note 33 for additional details.
The interest rate profile of the Group’s significant interest-bearing financial instruments
as of 31 December 2022 and 31 December 2021 is presented in the following table.
(In € million)
Fixed rate instruments
Financial assets
Financial liabilities
Effect of interest rate swap
Variable rate instruments
Financial assets
Financial liabilities
Effect of interest rate swap
As of
31 Dec.
2022
As of
31 Dec.
2021
6.9
(1,323.4)
(1,316.5)
(253.2)
(1,569.7)
503.8
(1,360.7)
(856.9)
253.2
(603.7)
2.7
(1,182.4)
(1,179.7)
-
(1,179.7)
304.5
(550.0)
(245.5)
-
(245.5)
A 100 basis point increase in the variable component (six-month Euribor) of the interest
rate on the Euro term loan and the three SSD tranches at variable interest rates would
increase the annual interest expense by €11.1
December 2022. The
US
Dollar term loan is not included in this analysis as the interest rate of this loan has been
fixed for three years with an interest rate swap. A 100 basis point increase in the variable
component (six-month Euribor) of the interest rate on the Euro term loan would have
increased the annual interest expense by €2.5 million as of 31
December 2021.
million as of 31
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
64
302
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a
financial instrument fails to meet its contractual obligations. The carrying amount of
financial assets represents the maximum credit exposure.
Credit risk arises principally from the Group’s receivables from its customers. Historically,
there has been a low level of losses resulting from default by customers. This also applies
for the customers of Scholle IPN and Evergreen Asia. As the Group’s customers are in the
food and beverage industry, management has not experienced any material changes to
the Group’s exposure to credit risk due to the COVID-19 pandemic (see note 5.4).
The credit risk relating to trade receivables is influenced mainly by the individual
characteristics of each customer. Given the diverse global operations and customers
across the Group, credit control procedures are jointly managed by the Group’s Treasury
function and each of the operating businesses within the Group. These joint responsibilities
include, but are not limited to, reviewing the individual characteristics of new customers
for creditworthiness before accepting the customer and agreeing upon purchase limits
and terms of trade as well as regularly reviewing the creditworthiness of existing
customers and previously agreed purchase limits and terms of trade.
The Group limits its exposure to credit risk by executing a credit limit policy, requiring
advance payments in certain instances, taking out insurance for specific debtors as well
as utilising securitisation and non-recourse factoring programmes. See further note 16.
In addition, concentration of credit risk is limited due to the customers comprising a
diversified mix of international companies, large national and regional companies as well
as small local companies, most of which have been customers of the Group for many
years.
Management believes that the recognised loss allowance sufficiently covers the risk of
default based on historical payment behaviour and assessments of future expectations of
credit losses, including regular analysis of customer credit risk.
In line with its Treasury policy, the Group generally enters into transactions only with banks
and financial institutions having a credit rating of at least investment grade (long term:
BBB or Baa rating or higher and short term: A-2 or P-2 rating or higher as per Standard &
Poor’s or Moody’s).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
65
303
OUR GROUP STRUCTURE AND
RELATED PARTIES
This section provides information about the Group’s subsidiaries and other related parties.
It includes details about the acquisitions of Scholle IPN on 1
June 2022 and Evergreen Asia
August 2022. It also covers certain information about the acquisition of the remaining
on 2
shares of the joint ventures in the Middle East and the sale of the paper mill in New Zealand
in the comparative period.
26 Group entities
The Company has changed its name from SIG Combibloc Group AG to SIG Group AG. The
name change became effective on 13 April 2022.
Overview of Group entities
The following table provides an overview of all the Group’s subsidiaries and joint venture,
including the subsidiaries acquired in the Scholle IPN acquisition (marked with *) and the
three subsidiaries acquired in the Evergreen Asia acquisition. For the other subsidiaries,
the ownership interests are the same as of 31
December 2021,
unless specifically stated. The ownership and voting interests are the same for all Group
entities. The Group owns 100% of the shares, unless specifically stated. The reporting date
of the entities is 31
December, unless specifically stated. The joint venture does not have
any subsidiaries.
December 2022 and 31
Companies and countries
Parent company
Switzerland
SIG Group AG, Neuhausen am Rheinfall2
Subsidiaries
Argentina
Combibloc S.R.L., Buenos Aires3
Australia
Scholle IPN Pty Ltd., Edinburgh North*
SIG Australia Holding Pty Ltd., Canberra
SIG Combibloc Australia Pty Ltd., Broadmeadows
Austria
SIG Austria Holding GmbH, Saalfelden
SIG Combibloc GmbH, Saalfelden
SIG Combibloc GmbH & Co. KG, Saalfelden
Bangladesh
SIG Combibloc Bangladesh Ltd., Dhaka
Brazil
Scholle Ltda., Vinhedo*
SIG Beverages Brasil Ltda., Sao Paulo
SIG Combibloc do Brasil Ltda., Sao Paulo
Annual Report 2022
As of 31 December 2022
Share capital1 Interest
3,822,709 CHF
100%
724,015,120 ARS
100%
2 AUD
32,100,000 AUD
40,000,001 AUD
1,000,000 EUR
35,000 EUR
4,500,000 EUR
100%
100%
100%
100%
100%
100%
50,000,000 BDT
100%
86,258,020 BRL
109,327,434 BRL
722,386,462 BRL
100%
100%
100%
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
66
304
Companies and countries
Canada
Scholle IPN Canada Ltd., Québec*
Chile
Scholle IPN SpA, Santiago*
SIG Combibloc Chile SpA, Santiago
China
Scholle IPN Packaging (Suzhou) Co. Ltd., Suzhou*
SIG Combibloc (Suzhou) Co. Ltd., Suzhou
SIG Combibloc (Suzhou) Technology Co. Ltd., Suzhou4
SIG Packaging (Shanghai) Co., Ltd., Shanghai5
Czechia
SIG Combibloc s.r.o., Hradec Králové
Egypt
SIG Combibloc Egypt LLC, Cairo6
France
Scholle IPN France SAS, Schalbach*
SIG Combibloc S.à.r.l., Courbevoie
Germany
Scholle IPN Germany GmbH, Eisfeld*
Scholle IPN Investment GmbH, Linnich7
SIG Combibloc GmbH, Linnich
SIG Combibloc Systems GmbH, Linnich
SIG Combibloc Zerspanungstechnik GmbH, Aachen
SIG Euro Holding GmbH, Linnich
SIG Information Technology GmbH, Linnich
SIG International Services GmbH, Linnich
India
Bossar Packaging Private Ltd., Pune*8,9
Scholle IPN India Packaging Private Ltd., Palghar*8,9
Scholle Packaging (India) Private Ltd., Palghar*8
SIG Combibloc India Private Ltd., Gurgaon, Haryana8
Indonesia
P.T. SIG Combibloc Indonesia, Jakarta Selatan
Italy
SIG Combibloc S.r.l., Parma
Luxembourg
SIG Combibloc Holdings S.à r.l., Munsbach
SIG Combibloc PurchaseCo S.à r.l., Munsbach
Malaysia
Scholle IPN Packaging (SEA) SDN. BHD, Kuala Lumpur*
SIG Combibloc Malaysia SDN. BHD, Kuala Lumpur
Mexico
SIG Combibloc Manufacturing México, S. de R.L. de C.V., Queretaro
SIG Combibloc México, S.A. de C.V., Mexico City
As of 31 December 2022
Share capital1 Interest
1,000 CAD
100%
9,006,501,235 CLP
5,016,722,134 CLP
15,400,000 USD
95,000,000 USD
3,800,000 USD
11,700,000 USD
100%
100%
100%
100%
100%
100%
200,000 CZK
100%
10,000 EGP
100%
1,000,000 EUR
31,000 EUR
100%
100%
500,000 EUR
25,000 EUR
34,494,382 EUR
1,000,000 EUR
256,000 EUR
10,000,000 EUR
500,000 EUR
1,000,000 EUR
100%
100%
100%
100%
100%
100%
100%
100%
17,649,000 INR
15,290,240 INR
155,254,700 INR
34,000,000 INR
84.71%
90%
100%
100%
13,549,682,000 IDR
100%
101,400 EUR
100%
2,000,001 EUR
4,012,500 EUR
100%
100%
445,500 MYR
1,000,000 MYR
100%
100%
142,010,000 MXN
1,000,000 MXN
100%
100%
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
67
305
Companies and countries
Netherlands
Clean Flexible Packaging B.V., Tilburg*
Clean Flexible Packaging Holding B.V., Tilburg*
Scholle IPN Europe B.V., Tilburg*
Scholle IPN Europe Holding B.V., Tilburg*
Scholle IPN Holding B.V., Tilburg*
Scholle IPN IP B.V., Tilburg*
Scholle IPN Netherlands B.V., Tilburg*
SIG Combibloc B.V., Hengelo
New Zealand
Scholle IPN New Zealand Ltd., Auckland*
SIG Combibloc New Zealand Ltd., Auckland
Nigeria
SIG Combibloc Nigeria Ltd., Lagos10
Poland
SIG Combibloc Sp. z o.o., Warsaw
Romania
SIG Combibloc Services S.R.L., Cluj
Russia
OOO SIG Combibloc, Moscow
Scholle IPN Eastern Europe LLC, Voronezh*9
Saudi Arabia
Al Obeikan SIG Combibloc Company Ltd., Riyadh
Serbia
SIG South East Europe d.o.o. Beograd, Beograd11
Singapore
SIG Combibloc Singapore Private Ltd., Singapore12
South Africa
SIG Combibloc (South Africa) Pty. Ltd., Cape Town13
South Korea
SIG Combibloc Korea Ltd., Seoul
SIG Packaging Korea Ltd., Seoul14
Spain
Bossar Packaging SL, Barbera del Valles*
SIG Combibloc S.A., Madrid
Sweden
SIG Combibloc AB, Eslöv
Switzerland
SIG allCap AG, Neuhausen am Rheinfall
SIG Combibloc Procurement AG, Neuhausen am Rheinfall
SIG Combibloc Receivables Management AG, Neuhausen am Rheinfall
SIG Combibloc Services AG, Neuhausen am Rheinfall15
SIG Schweizerische Industrie-Gesellschaft GmbH, Neuhausen am Rheinfall
SIG Technology AG, Neuhausen am Rheinfall15
Taiwan
SIG Combibloc Taiwan Ltd., Taipei
SIG Packaging (Taiwan) Co., Ltd., Hsinchu Hsien16
Thailand
SIG Combibloc Ltd., Rayong
Turkey
SIG Combibloc Paketleme ve Ticaret Ltd. Şirketi, Istanbul3
Annual Report 2022
As of 31 December 2022
Share capital1 Interest
2 EUR
2 EUR
20,000 EUR
18,000 EUR
20,220 EUR
18,000 EUR
18,000 EUR
40,000 EUR
100%
100%
100%
100%
100%
100%
100%
100%
0 NZD
0 NZD
100%
100%
10,000,000 NGN
100%
249,934 PLN
100%
1,000,000 RON
100%
5,000,000 RUB
221,331,321 RUB
100%
99.9%
75,000,000 SAR
100%
939,200 RSD
100%
1,000 SGD
100%
1,000 ZAR
100%
260,000,000 KRW
899,480,000 KRW
100%
100%
1,248,000 EUR
330,550 EUR
100%
100%
100,000 SEK
100%
7,000,000 CHF
2,000,000 CHF
1,000,000 CHF
37,931,400 CHF
20,000 CHF
100%
100%
100%
100%
100%
-
15,000,000 TWD
1,000,000 TWD
100%
100%
3,070,693,000 THB
100%
170,000 TRY
100%
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
68
306
Companies and countries
United Kingdom
Scholle IPN UK Ltd., Gateshead*
SIG Combibloc Ltd., Gateshead
UAE
SIG Combibloc FZCO, Dubai
USA
BBI Company Inc., Northlake*
Clean Flexible Packaging Inc., Northlake*
Scholle IPN Atlanta Corporation, Peachtree City*
Scholle IPN Corporation, Northlake*
Scholle IPN Packaging Inc., Northlake*
SIG Combibloc Inc., Wilmington
SIG Combibloc US Acquisition Inc., Wilmington
SIG Combibloc US Acquisition II Inc., Wilmington
SIG Holding USA, LLC, Wilmington
Vietnam
SIG Vietnam Ltd., Ho Chi Minh City
Joint venture
Japan
DNP • SIG Combibloc Co. Ltd., Tokyo
As of 31 December 2022
Share capital1 Interest
1 GBP
1,500,000 GBP
100%
100%
24,000,000 AED
100%
13,700 USD
20 USD
0 USD
0 USD
10,000 USD
27,000,000 USD
10 USD
10 USD
1,000 USD
100%
100%
100%
100%
100%
100%
100%
100%
100%
2,000,000,000 VND
100%
75,000,000
JPY
50%
* Subsidiary acquired as part of the acquisition of Scholle IPN on 1 June 2022 (see note 27).
1
2
3
Unaudited.
Previously SIG Combibloc Group AG. The name was changed to SIG Group AG on 13 April 2022. The registered address of SIG Group AG is Laufengasse 18,
8212
Neuhausen am Rheinfall, Switzerland.
Argentina and Turkey are regarded as hyperinflationary as of 31 December 2022. The impacts of applying hyperinflationary accounting as per IAS 29 Financial
Reporting in Hyperinflationary Economies is not material to the Group.
4 New entity, incorporated in the second quarter of 2022.
5
6
7
8
9
Evergreen Packaging (Shanghai) Co. Ltd. was acquired as part of the Evergreen Asia acquisition on 2 August 2022 (see note 27). The name was changed to
SIG
Packaging (Shanghai) Co. Ltd. after the acquisition.
Previously SIG Combibloc Obeikan Egypt LLC. The name was changed to SIG Combibloc Egypt LLC in the second quarter of 2022.
New entity, incorporated in the fourth quarter of 2022.
Reporting date is 31 March. Financial information prepared as of 31 December is used for consolidation purposes.
The non-controlling interests are not significant, which is why the Group does not make a distinction between profit, total comprehensive income and equity
attributable to the owners of the Company and the non-controlling interests.
10 Previously SIG Combibloc Obeikan Nigeria Ltd. The name was changed to SIG Combibloc Nigeria Ltd. in the second quarter of 2022.
11 New entity, incorporated in the third quarter of 2022.
12 New entity, incorporated in the first quarter of 2022.
13 Previously SIG Combibloc Obeikan (South Africa) Pty Ltd. The name was changed to SIG Combibloc (South Africa) Pty. Ltd in the first quarter of 2022.
14 Evergreen Packaging Korea Ltd. was acquired as part of the Evergreen Asia acquisition on 2 August 2022 (see note 27). The name was changed to SIG Packaging
Korea Ltd. after the acquisition.
15 SIG Technology AG was merged with SIG Combibloc Services AG in the third quarter of 2022.
16 Evergreen Packaging (Taiwan) Co. Ltd. was acquired as part of the Evergreen Asia acquisition on 2 August 2022 (see note 27). The name was changed to
SIG
Packaging (Taiwan) Co. Ltd., after the acquisition.
Sale of New Zealand paper mill
The Group announced in March 2021 that it would close its paper mill in New Zealand
(Whakatane Mill Ltd.) and increase the sourcing of liquid paper board from existing third-
party suppliers. The mill primarily produced liquid paper board for use by SIG entities and
the Group’s former joint ventures in the Middle East. After the closure announcement, the
Group was approached by potential buyers and the paper mill was sold on 3 June 2021 for
NZD 1. The net working capital and other adjustments to the completion settlement were
finalised in August 2021. The sale resulted in a loss of €12.1
million and a net cash inflow of
million. See note 9 for information about restructuring costs relating to the closure of
€3.1
December 2021.
the mill recognised in the year ended 31
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
69
307
Accounting policy/basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are consolidated from their respective
acquisition date, which is the date on which the Group obtains control.
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the
subsidiary, and any related non-controlling interests and other components of equity. Any resulting
gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured
at fair value when control is lost.
Interests in joint ventures
A joint venture is a contractual arrangement in which the Group has joint control and has rights to the
net assets of the arrangement rather than rights to its assets and obligations for its liabilities.
Investments in joint ventures are accounted for using the equity method. On the date joint control is
obtained, joint ventures are recognised at cost (including transaction costs). Subsequent to initial
recognition, the Group’s share of the profit or loss and other comprehensive income is included in the
consolidated financial statements until the date on which joint control ceases.
Intra-group transactions and balances
Intra-group transactions and balances are eliminated upon consolidation. Unrealised gains arising
from transactions with joint ventures are eliminated to the extent of the Group’s interest in the
investee. Unrealised losses are eliminated in the same manner as unrealised gains, but only to the
extent that there is no evidence of impairment.
27
Business combinations
Overview
This note covers the acquisitions of Scholle IPN on 1 June 2022 and Evergreen Asia on
2
August 2022. It also provides certain details about the acquisition of the remaining 50%
of the shares of the Group’s two joint ventures in the Middle East on 25
February 2021.
Scholle IPN
Overview
On 1 June 2022, the Group acquired 100% of Scholle IPN from CLIL. CLIL is controlled by
Laurens Last and has subsequently been renamed Clean Holding B.V. He was elected to
the Company’s Board of Directors on 7 April 2022.
and beverages, with retail, institutional
Scholle IPN provides packaging solutions for food
and industrial customers and has production plants mainly in the Americas and Europe but
also in Asia and Australia. Scholle IPN is the global leader in bag-in-box and number two in
spouted pouches. It has approximately 2,500 employees globally.
This acquisition will enable the Group to expand its product portfolio, increase its presence
in the USA and leverage its established presence in emerging markets. Synergies and cost
efficiencies are expected in areas such as commercial operations, technology, innovation
and sustainability as well as procurement and manufacturing.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
70
308
The following table provides an overview of the consideration transferred, the recognised
amounts of assets acquired and liabilities assumed at the acquisition date and the
resulting goodwill. Since the close of the acquisition on 1 June 2022, the Group has
finalised the completion accounts (see further section “Consideration” below) and the fair
valuation of inventories, property, plant and equipment and intangible assets. There have
been no material adjustments to the fair values initially recognised. As of 31 December
2022, the fair value of “Other net assets acquired” as well as current assets and liabilities
has been measured on a provisional basis.
(in € million)
Cash
Shares (33,750,000 ordinary SIG shares)
Contingent consideration
Fair value of consideration
Cash and cash equivalents
Trade and other current receivables
Inventories
Property, plant and equipment
Intangible assets
Asset held-for-sale
Trade and other current payables
Loans and borrowings
Deferred tax liabilities
Other net assets acquired
Fair value of identifiable net assets acquired
Goodwill, before impact of cash flow hedge accounting
Impact of deal-contingent derivative
Goodwill
“Other net assets acquired” mainly relates to deferred and current tax assets, right-of-
use assets and employee benefits.
424.3
686.8
38.6
1,149.7
46.6
117.2
125.0
210.3
290.3
15.1
(88.9)
(393.5)
(120.9)
5.1
206.3
943.4
(13.6)
929.8
For the seven months ended 31 December 2022, the acquisition of Scholle IPN contributed
revenue of €362.6
million and a profit of €2.1 million to the Group’s result (excluding
acquisition-related and integration costs reflected in the acquired business but including
the impact of provisional fair value adjustments, of which €19.4 million of fair value
January 2022,
adjustments on
management estimates that for the year ended 31 December 2022, consolidated revenue
would have been €3,021.5 million and consolidated profit would have been €42.1 million
(including the gains on settlement of the deal-contingent derivatives). In determining
these amounts, management has assumed that the provisional fair value adjustments as
of the acquisition date would have been the same if the acquisition had occurred on
1
If the acquisition had occurred on 1
January 2022.
inventories).
The Group has
€21.6
ended 31
incurred total acquisition-related costs relating to Scholle IPN of
million in 2021 and 2022, of which €16.5 million has been recognised in the year
December 2022 (as part of other expenses).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
71
309
Consideration
The consideration of €1,149.7 million for Scholle IPN is split between cash payments, newly
issued SIG shares and contingent consideration.
million ($445.1 million) in cash
At the acquisition date, the Company transferred €415.5
and 33,750,000 newly issued SIG ordinary shares with a fair value of €686.8
million to the
former owner as consideration for Scholle IPN. The shares were issued from authorised
share capital on 23
May 2022 (see note 24). The fair value of the shares was determined by
reference to SIG’s share price of CHF 20.92 as of closing of the transaction on 1 June
2022. See notes 24 and
29 for additional information on the shareholding of the former
ultimate beneficial owner of Scholle IPN, Laurens Last, who is also a related party to the
Company via his representation on the Group’s Board of Directors.
The Group had retained an amount of €18.7
million ($20.0 million) as per the share
purchase agreement. This was recognised as a current other liability and payable upon
finalisation of the completion accounts, when cash, third-party debt and net working
capital balances as of the acquisition date would be finally determined. The completion
accounts were finalised in September 2022 and resulted in a total cash consideration of
€424.3
million.
The contingent consideration depends on Scholle IPN outperforming the top end of the
Group’s mid-term revenue growth guidance of 4–6% per year for the years ending
December 2023, 2024 and 2025, and would be payable in cash in three annual
31
instalments of up to $100 million per year. Payments for growth rates ranging from
11.5% per the respective year will be made based on a pre-agreed ratchet structure.
6
to
fair value of the contingent consideration estimated as of the acquisition date is
The
€38.6
million. The contingent consideration is presented as part of other non-current
liabilities. As of 31 December 2022, the fair value of the contingent consideration is
€113.2
million (see further notes 9 and 33).
Identifiable net assets acquired
years but also technology-related assets with a useful
The intangible assets mainly comprise customer relationships with a useful life of
12.5
life of ten years and
trademarks with a useful life of seven years. The property, plant and equipment balance
primarily comprises production-related buildings and equipment.
One of the acquired production-related buildings was classified as held for sale at the
acquisition date. It is now leased by the Group. The production-related building was sold
million (its assessed fair value) in a sale and leaseback
by the Group in June 2022 for €15.1
transaction that had been entered into before the closing of the acquisition. The transfer
of the production-related building by the Group to the buyer qualifies to be accounted for
as a sale under IFRS 16 Leases. The derecognition of the production-related building did
not result in any gain or loss.
The fair value of trade receivables is assessed at €96.5
comprise gross contractual amounts due of €97.0
expected to be uncollectible as of the acquisition date.
million. Trade receivables
million, of which €0.5 million is
The Group repaid the external Euro and US Dollar loans of Scholle IPN in connection with
the acquisition (see note 22). See the section “Deal-contingent derivatives” below for the
impact of the settlement of a deal-contingent foreign currency derivative that the Group
entered into for the repayment of the US Dollar loan.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
72
310
Goodwill
Goodwill of €929.8 million for Scholle IPN has been recognised as of the acquisition date.
The designation of a deal-contingent derivative as a hedging instrument in a cash flow
hedge reduced the goodwill by €13.6
(see the section “Deal-contingent
derivatives” below). As of 31 December 2022, the goodwill amounts to €917.8 million. The
decrease from the amount initially recognised as goodwill relates to foreign currency
exchange rate changes.
million
The goodwill mainly comprises expectations about expansion of existing markets,
expansion
into new geographical markets and product categories, the skills and
competences of the workforce as well as cost savings and synergies. The goodwill is not
expected to be deductible for tax purposes. It has been allocated to the segments Europe,
MEA, APAC and Americas.
Assessment of fair values
The Group has applied generally accepted valuation methods in the assessment of the fair
values of the acquired net assets, including the multi-period excess earnings method to
assess the fair value of customer relationships. The fair value of the contingent
consideration has been estimated using a Monte Carlo simulation (see further note 33).
Deal-contingent derivatives
To manage the foreign currency exposure arising from the part of the consideration for
Scholle
Dollar
IPN that was payable in US Dollar and the repayment of the acquired US
loan at the acquisition date, the Group entered into deal-contingent foreign currency
derivatives after having signed the share purchase agreement.
The derivative for the consideration payable in cash was designated as a cash flow-
hedging
in April 2022. For further details about the cash flow hedge
accounting, refer to the section “Accounting policy” at the end of this note.
instrument
At the acquisition date, the cumulative positive fair value changes of the derivative of
€13.6
million recognised in other comprehensive income (“OCI”) (net of the cost of
hedging) reduced the amount of goodwill. Positive fair value changes recognised in other
million (see notes 8 and 9). In
income in the year ended 31 December 2022 amount to €11.9
total, the settlement of the derivative relating to the consideration paid in cash for
Scholle
IPN resulted in a net cash inflow of €25.5
million.
The Group did not apply hedge accounting under IFRS for the derivative relating to the
repayment of the US Dollar loan. Positive fair value changes of this derivative are
recognised in finance income (see notes 9 and 23). The settlement of the derivative
relating to the repayment of the US Dollar loan resulted in a net cash inflow of
€15.5
million.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
73
311
Evergreen Asia
Overview
The Group acquired Evergreen’s chilled carton business in Asia Pacific (“Evergreen Asia”)
on 2 August 2022 on a debt-free basis. It acquired 100% of the shares of Evergreen
Packaging Korea Ltd., Evergreen Packaging (Shanghai) Co. Ltd. and Evergreen Packaging
(Taiwan) Co. Ltd. from Evergreen Packaging International LLC (“Evergreen”).
Evergreen Asia provides filling machines, carton sleeves, closures and after-sales service
to its customers in the chilled segment for dairy and non-carbonated soft drinks and has
production plants in China, South Korea and Taiwan. Evergreen Asia has approximately
400 employees.
The acquisition will allow the Group access to a new customer base in an attractive growth
market in Asia, especially in China, and to expand its offering to existing customers. The
Group will use its experience to further develop the chilled carton business by drawing on
its regional R&D presence and innovation capabilities as well as its marketing expertise to
introduce more innovative packaging formats in the Asian chilled market. Synergies are
expected from commercial opportunities and cost optimisation.
The following table provides an overview of the consideration transferred, the recognised
amounts of assets acquired and liabilities assumed at the acquisition date and the
resulting goodwill. As of 31 December 2022, the fair value of “Other net liabilities acquired”
as well as current assets and liabilities has been measured on a provisional basis.
(in € million)
Cash
Fair value of consideration
Cash and cash equivalents
Trade and other current receivables
Inventories
Property, plant and equipment
Right-of-use assets
Intangible assets
Trade and other current payables
Deferred tax liabilities
Other net liabilities acquired
Fair value of identifiable net assets acquired
Goodwill, before impact of cash flow hedge accounting
Impact of deal-contingent derivative
Goodwill
“Other net liabilities acquired” mainly relates to deferred tax assets, current tax liabilities,
provisions and employee benefits.
For the five months ended 31 December 2022, the acquisition of Evergreen Asia
contributed revenue of €60.2
million and a profit of €2.8 million to the Group’s result
(excluding acquisition-related and integration costs reflected in the acquired business but
including the impact of provisional fair value adjustments). If the acquisition had occurred
January 2022, management estimates that for the year ended 31 December 2022,
on 1
million and consolidated profit would
consolidated revenue would have been €2,857.1
Annual Report 2022
329.5
329.5
7.5
31.2
26.8
85.4
23.7
78.2
(35.7)
(33.0)
(16.4)
167.7
161.8
(30.9)
130.9
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
74
312
have been €42.2 million (including the gain on settlement of the deal-contingent
derivative). In determining these amounts, management has assumed that the provisional
fair value adjustments as of the acquisition date would have been the same if the
acquisition had occurred on 1 January 2022.
The Group has incurred total acquisition-related costs relating to Evergreen Asia of
€10.0
million in 2021 and 2022, of which €7.2 million has been recognised in the year ended
31 December 2022 (as part of other expenses).
Consideration
in cash to Evergreen as
The Group transferred €329.5
consideration for Evergreen Asia on 2 August 2022. The final consideration was
determined upon the completion settlement in February 2023, with no significant impact
on the consideration transferred.
million ($335.9 million)
Identifiable net assets acquired
The intangible assets mainly comprise customer relationships with a useful life of 15
years
but also technology-related assets with a useful life of seven years. The property, plant
and equipment balance primarily comprises production-related buildings and equipment.
The right of-use assets primarily relate to a prepaid land right-of-use in China.
The fair value of trade receivables is assessed at €30.3
comprise gross contractual amounts due of €30.5
expected to be uncollectible as of the acquisition date.
million. Trade receivables
million, of which €0.2 million is
Goodwill
Goodwill of €130.9 million for Evergreen Asia has been recognised as of the acquisition
date. The designation of a deal-contingent derivative as a hedging instrument in a cash
flow hedge reduced the goodwill by €30.9
million (see the section “Deal-contingent
derivative” below). As of 31 December 2022, the goodwill amounts to €121.1 million. The
decrease from the amount initially recognised as goodwill relates to foreign currency
exchange rate changes.
The goodwill mainly comprises expectations about access to a new customer base in Asia,
expansion of product offerings to existing customers, the skills and competences of the
workforce as well as cost savings and synergies. The goodwill is not expected to be
deductible for tax purposes. It has been allocated to the APAC segment.
Assessment of fair values
The Group has applied generally accepted valuation methods in the assessment of the fair
values of the acquired net assets, including the multi-period excess earnings method to
assess the fair value of customer relationships.
Deal-contingent derivative
To manage the foreign currency exposure arising from the consideration for Evergreen
Asia that was payable in US Dollar, the Group entered into a deal-contingent foreign
currency derivative after having signed the share purchase agreement. The derivative was
designated as a cash flow-hedging instrument in April 2022. For further details about the
cash flow hedge accounting, refer to the section “Accounting policy” at the end of this
note.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
75
313
At the acquisition date, the cumulative positive fair value changes of the derivative of
€30.9
million recognised in OCI (net of the cost of hedging) reduced the amount of
goodwill. Positive fair value changes recognised in other income in the year ended
million (see notes 8 and 9). In total, the settlement of
31
the derivative resulted in a net cash inflow of €35.6
December 2022 amount to €4.7
million.
Former joint ventures in the Middle East
Overview
On 25 February 2021, the Company acquired the remaining 50% of the shares of its two
joint ventures in the Middle East from its joint venture partner Al Obeikan Group for
Investment Company CJS (“OIG”). The former joint ventures provide aseptic carton
packaging solutions in the Middle East and Africa.
million. The Group
The fair value of the consideration transferred to OIG was €490.3
transferred €167.0 million in cash and 17,467,632 newly issued SIG ordinary shares with a
million as consideration for the remaining shares of the joint ventures
fair value of €323.3
on 25 February 2021. The shares were issued from authorised share capital on 22
February
2021 (see note 24). There have been no post-closing adjustments to the consideration
transferred.
The remeasurement to fair value of the Group’s pre-existing 50% interest in the joint
ventures resulted in a gain of €48.8 million (including reclassification of amounts in the
foreign currency translation reserve to profit or loss). The gain is recognised as part of
other income (see notes 8 and 9).
The net assets acquired mainly consisted of property, plant and equipment, customer
relationships and loans. Cash and cash equivalents acquired amounted to €103.4
million.
For the ten months ended 31 December 2021, the acquisition of the former joint ventures
contributed incremental revenue of €166.0
million to the
Group’s result (excluding the gain on pre-existing interest in the former joint ventures and
acquisition-related costs but including fair value adjustments). If the acquisition had
occurred on 1
December
2021, consolidated revenue would have been €2,077.8
million and consolidated profit
million.
would have been €173.7
January 2021, management estimates that for the year ended 31
million and a profit of €8.5
The acquisition accounting was finalised in the fourth quarter of 2021 and resulted in
acquired net assets of €202.8 million and goodwill of €518.4 million as of the acquisition
date. Additional details about this acquisition and the outcome of the acquisition
accounting are
included in note 27 of the consolidated financial statements for the year
ended 31
December 2021.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
76
314
Accounting policy
Business combinations are accounted for using the acquisition method at the acquisition date when
the acquired set of activities and assets meets the definition of a business and control is transferred
to the Group.
The consideration transferred is generally measured at fair value, as are the identifiable net assets
acquired. The consideration transferred does not include amounts related to the settlement of pre-
existing relationships. Such amounts are generally recognised in profit or loss.
Contingent consideration is measured at fair value at the acquisition date. When contingent
consideration is payable in cash, and therefore recognised as a financial liability, it is remeasured to
fair value at each reporting date until it is settled. Any changes in the fair value are recognised in
profit or loss as part of other income and expenses.
Goodwill is measured at the acquisition date as the fair value of the consideration transferred
(including, if applicable, the fair value of any previously held equity interests and any non-controlling
interests) less the net recognised amount (which is generally fair value) of the identifiable assets
acquired and liabilities assumed. If the excess is negative, a bargain purchase gain is recognised
immediately in profit or loss.
Transaction costs, other than those associated with the issue of debt or equity securities incurred in
connection with a business combination, are expensed as incurred.
Subsequent changes in the fair value of acquired net assets or contingent consideration, and
recognition of additional assets and liabilities, that result from new or additional information about
facts and circumstances existing at the acquisition date that is obtained during the measurement
period (maximum one year from the acquisition date) are measurement-period adjustments. Such
adjustments are recognised retrospectively, and comparative
if the
accounting for the business combination had been completed at the acquisition date. After the end
of the measurement period, the acquisition accounting is only adjusted to correct an error.
information restated as
In a business combination achieved in stages, the equity interest in the acquired entity that was held
by the Group before obtaining control is treated as if it were sold and subsequently repurchased. The
pre-existing interest in the acquired entity is remeasured at fair value at the acquisition date. Any
resulting gain or loss is recognised in profit or loss. Amounts recognised in other comprehensive
income in prior periods that are related to the previously held interest are treated on the same basis
as if the Group had disposed of the interest to a third party.
Cash flow hedging of the foreign currency risk on forecasted business combinations
IPN and Evergreen Asia, the Group entered
To manage the foreign currency exposure arising from the US Dollar cash considerations for
Scholle
into deal-contingent foreign currency
derivatives. These two derivatives have been accounted for as cash flow hedges. The derivatives
were designated as hedging instruments when the respective acquisitions were assessed to be highly
probable. The contingency element of the derivatives does not have a significant impact on the
change in fair value of the derivatives during the hedge designation period.
From the hedge designation dates in April 2022, the effective portion of the fair value changes of the
deal-contingent derivatives is recognised and accumulated in a hedging reserve in OCI (net of tax).
The effective portion recognised in OCI is limited to the cumulative change in fair value of the
hedged item from inception of the hedge. Fair value changes up to inception of the hedges are
recognised in other income and expenses.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
77
315
Accounting policy (continued)
The Group designated only the change in fair value of the spot component of the respective
derivative as the hedging instrument. The hedge relationship is therefore highly effective. The
change in fair value of the forward component of the derivative is accounted for separately as a cost
of hedging and recognised in equity. For simplicity, the cost of hedging is not presented separately in
a cost of hedging reserve but presented net of the accumulated fair value changes in the hedging
reserve. The cost of hedging is not significant.
The cash received on settlement of the hedging instrument when an acquisition takes place is not
part of the consideration paid to the seller. However, the accumulated fair value changes in OCI (less
the cost of hedging) are treated as a basis adjustment to goodwill under IFRS, ie. they impact the
amount of goodwill recognised upon the acquisition.
Significant judgements and estimates
Significant judgements and estimates were made by management relating to the accounting for the
acquisitions of Scholle IPN and Evergreen Asia in 2022 and of the remaining shares of the former joint
ventures in 2021. For example, the assessments of the fair value of the contingent consideration for
Scholle IPN and customer relationships involve significant judgement and estimates. The assessment
of the fair value of the pre-existing interest in the former joint ventures also involved significant
judgement and estimates.
28
Joint ventures
December
The Group does not have any significant investments in joint ventures as of 31
2022 and 31 December 2021. It has only a small investment in a joint venture in Japan (see
note 26). The Company acquired the remaining 50% of the shares of its two joint ventures
in the Middle East on 25
February 2021 (see note
27).
Overview
The Japanese joint venture, DNP • SIG Combibloc Co., Ltd, was formed in 2018 with the
joint venture partner DNP and provides aseptic carton packaging solutions in Japan.
There have been no significant transactions with the joint venture in Japan in the years
ended 31 December 2022 and 31
December 2021. Its net assets are also not significant.
Summary joint venture financial information
The following table provides certain summary financial information for the year ended
31
December 2021, representing the amounts presented in the IFRS financial statements
of the current and former joint ventures and not adjusted for the Group’s ownership
percentage.
(In € million)
2021
Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia1
SIG Combibloc FZCO, UAE1
DNP • SIG Combibloc Co., Ltd., Japan
Total
1
Information presented for January-February 2021.
Annual Report 2022
Revenue
Expenses
Profit
after tax
14.9
17.6
1.1
33.6
(15.4)
(20.8)
(0.6)
(36.8)
(0.5)
(3.2)
0.5
(3.2)
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
78
316
Joint venture impact on the consolidated financial statements
(In € million)
Carrying amount as of 1 January
Share of profit/(loss) (net of income tax)
Derecognition of pre-existing interest in the former joint ventures
in the Middle East (business combination achieved in stages)
Effect of movements in exchange rates
Other
Carrying amount as of 31 December
Accounting policy
The accounting policy for joint ventures is included in note 26.
2022
0.6
-
-
-
-
0.6
2021
184.5
(1.6)
(178.8)
0.4
(3.9)
0.6
The Group’s share of the profit or loss of joint ventures (net of income tax) is presented as part of the
Group’s profit or loss from operating activities due to the Group’s close interaction with its current
and former joint ventures.
29 Related parties
The Company has related party relationships with its shareholders, subsidiaries, a joint
venture in Japan and key management.
Certain information and updates about the Company’s related parties is provided in this
note. Information about the acquisitions of Scholle IPN and Evergreen Asia in 2022 and the
remaining 50% of the shares of the joint ventures in the Middle East in 2021 is included in
note
27. The subsidiaries acquired in the Scholle IPN and Evergreen Asia acquisitions are
listed in note 26.
Shareholders
The Company’s shares are listed on SIX Swiss Exchange.
The members of the Group Executive Board directly held 0.14% and indirectly held 0.06%
of the Company’s shares as of 31 December 2022 (directly 0.2% as of 31 December 2021).
The members of the Board of Directors directly held 0.08% and indirectly held 9.7% of the
Company’s shares as of 31
December 2022 (directly 0.08% and indirectly 0.5% as of
31
December 2021).
million
Laurens Last (via CLIL, subsequently renamed Clean Holding B.V) received 33.75
shares in the Company as part of the consideration for Scholle IPN and, with additional
shares he has purchased in the open market, indirectly held 9.19% of the Company’s
shares as of 31 December 2022 according to the disclosure notifications reported to the
Company and published by the Company via the electronic publishing platform of
SIX
Swiss Exchange (see also the section “Key management” below and note 24).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
79
317
Key management
The Company’s key management includes the members of the Group Executive Board
and the Board of Directors.
Laurens Last, the former ultimate beneficial owner of Scholle IPN, joined the Board of
Directors on 7 April 2022 and thereby became a related party to the Company. See note
4
for other organisational changes in the Group Executive Board and the Board of Directors
that took place in the year ended 31
December 2022 or were announced before the
consolidated financial statements were approved on 23 February 2023.
The table below includes information about compensation to the Group Executive Board.
(In € million)
Short-term employee benefits
Post-employment benefits
Share-based payments
Termination benefits
Total compensation to the Group Executive Board
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
7.6
0.5
3.1
0.6
11.8
6.7
0.4
2.3
1.1
10.5
The expense of €0.6 million recognised for termination benefits (garden leave agreement)
in the year ended 31 December 2022 relates to Frank Herzog, the former Chief Financial
Officer, who resigned as of 31 December 2022.
The expense of €1.1 million recognised for termination benefits (garden leave and non-
compete agreement) in the year ended 31 December 2021 related to Lawrence Fok, the
former President and General Manager of Asia Pacific, who left his role on the Group
December 2021. Due to the Group’s growth in Asia Pacific, his
Executive Board as of 31
January 2022: a President and
role was split into two newly created roles with effect from 1
General Manager of Asia Pacific North and a President and General Manager of Asia
Pacific South (see also note
4). Lawrence Fok left the Group in 2022.
The employee terminations have been reflected in the measurement of the amount
recognised as a share-based payment expense in the respective periods, considering the
good and bad leaver clauses in the share-based payment plans in which the former
members of the Group Executive Board participated.
Compensation to the members of the Board of Directors totalled €2.3 million for the year
ended 31 December 2022 (€1.8 million for the year ended 31 December 2021). The
members of the Board of Directors receive part of their compensation in blocked shares.
Information about the participation of the members of the Group Executive Board and the
Board of Directors in share-based payment plans and arrangements is included in note 31.
Further information about compensation paid to the members of the Group Executive
Board and the Board of Directors can be found in the Compensation Report included in
the 2022 Annual Report. Details about these persons’ SIG shareholdings are included in
the section “Shareholders” above and in the Compensation Report.
Other related parties
The Group’s subsidiaries are listed in note 26. Certain information about the current and
former joint ventures is included in note 28.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
80
318
Related party transactions
Since the former joint ventures in the Middle East became fully owned subsidiaries on
25
February 2021, the Company has not had any significant related party transactions.
The nature of the Company’s related party relationships, balances and transactions for
the year ended 31 December 2022 has not changed compared with information disclosed
in the consolidated financial statements for the year ended 31
December 2021, with one
significant exception.
On 1 June 2022, the Group acquired Scholle IPN from CLIL. CLIL is controlled by Laurens
Last. See note
27 for details about transaction values and outstanding balances
concerning the acquisition. Notes 25 and 33 provide additional information about the
contingent portion of the consideration for Scholle IPN.
Following Laurens Last’s election to the Board of Directors on 7 April 2022, companies
controlled or jointly controlled by him are related parties to the Company. However, there
have been no significant transactions and there are no outstanding balances as of
December 2022 relating to companies controlled or jointly controlled by Laurens Last,
31
million.
except for an outstanding payable of €1.6
The Group has entered into a transitional service agreement in relation to an entity
controlled by Laurens Last that was not part of the acquisition of Scholle IPN. This
agreement, ending in May 2023, has no significant impact on the Group.
The following table provides information about related party transactions and balances
not covered above.
(In € million)
Joint ventures1
Sale of goods and services (sleeves, filling
machines and related goods and services) and
other transactions/Net receivables
Purchase of goods
Transaction values
for the year ended
31 Dec.
31 Dec.
2021
2022
Balance outstanding
as of
31 Dec.
2022
31 Dec.
2021
4.4
-
9.5
0.1
3.0
-
0.4
-
1
Transactions with the former joint ventures in the Middle East are reported until 25
February 2021, when they became fully owned subsidiaries.
There were no other significant related party transactions during the years ended
31
December
2021, the Group had no commitments to incur capital expenditure with related parties.
December 2022 and 31 December 2021. As of 31 December 2022 and 31
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
81
319
OUR PEOPLE
This section covers information about the Group’s employee-related expenses and
pension plans as well as the Group’s share-based payment plans and arrangements.
Details about compensation concerning the Group’s key management are included in
note
29 on related parties.
30
Employee benefits
The Group operates various defined benefit plans, including the defined benefit plans of
Scholle IPN and Evergreen Asia. The
largest defined benefit plan, also after the
acquisitions, is in Switzerland. In addition, the Group has a number of defined contribution
plans.
Overview of employee benefits
(In € million)
Salaries and wages accrued
Provision for annual leave
Provision for other employee benefits
Net defined benefit obligations:
Pension benefit liabilities
Total employee benefit liabilities
Current
Non-current
Total employee benefit liabilities
As of
31 Dec.
2022
As of
31 Dec.
2021
46.5
14.4
6.6
98.0
165.5
60.9
104.6
165.5
47.0
9.0
2.2
126.8
185.0
56.0
129.0
185.0
December 2022
The Group has a net defined benefit asset of €114.6 million as of 31
(€230.2
million as of 31 December 2021). This relates to the defined benefit pension plan in
Switzerland. The Group’s net defined benefit liabilities relate to defined benefit pension
plans in other countries.
Personnel expenses
income were €482.4
in the statement of profit or
in the year ended 31
million in the year ended 31 December 2021), of which €33.0
Personnel expenses recognised
comprehensive
(€387.3
contributions to defined contribution plans (€27.6
2021).
loss and other
December 2022
million relates to
million in the year ended 31 December
million
Defined benefit pension plans
The Group makes contributions to defined benefit pension plans. It operates defined
benefit pension plans in countries including Austria, France, Germany, India, Indonesia,
Saudi Arabia, South Korea, Switzerland, Taiwan, Thailand, the UAE and the USA. The
majority of the Group’s pension obligations are in Switzerland. The retirement plans are
subject to governmental regulations relating to how they are funded. The Group usually
funds
its retirement plans at an amount equal to the annual minimum funding
requirements specified by the government regulations covering each plan.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
82
320
This note generally includes aggregated disclosures in respect of the Group’s pension
plans as the plans are not exposed to materially different risks. However, certain
information relating to the Swiss retirement plan is disclosed separately as it is the Group’s
largest pension plan.
As of 31 December 2022, the Swiss retirement plan comprises 70% of the present value of
the Group’s pension plan obligations (73% as of 31
December
2022, the fair value of the assets of the Swiss retirement plan exceeded the present value
of its pension obligations by €176.0 million (€230.2 million as of 31
December 2021).
However, see the section “Expense recognised in other comprehensive income, including
impact of the asset ceiling” below for the impact of the asset ceiling in the year ended
December 2022. An assessment of the investment strategy for the Swiss retirement
31
plan is performed yearly.
December 2021). As of
31
Expected annual contributions to the Group’s defined benefit pension plans during the
2023 are estimated to be €9.6 million. The Group’s pension
year ending 31
plans had a weighted average duration of 13 years as of 31 December 2022 (13 years as of
31
December 2021).
December
Movement in net defined benefit obligation
Information about the net defined benefit obligation as of and for the year ended
31
December 2022 and the year ended 31 December 2021 is included below.
Defined benefit
obligation
2022
2021
Fair value
of plan assets
2021
2022
Impact of
asset ceiling
2021
2022
(In € million)
Carrying amount as of the beginning
of the year
Service cost
Interest expense/(income)
Administrative expenses
Curtailments and settlements
Total expense/(income) recognised in
profit or loss
Actuarial (gains)/losses arising from:
Demographic assumptions
Financial assumptions
Return on plan assets,
excluding interest income
Change in asset ceiling
Total remeasurement (gains)/losses
included in other comprehensive
income
484.1
8.9
3.9
-
(0.4)
509.2
8.4
1.6
-
(2.0)
(587.5)
-
(3.1)
0.7
-
(559.1)
-
(0.6)
0.5
-
12.4
8.0
(2.4)
(0.1)
8.7
(45.7)
(18.0)
(4.0)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
67.0
-
(33.2)
-
-
60.1
(37.0)
(22.0)
67.0
(33.2)
60.1
Contributions by the Group
Contributions by plan participants
Benefits paid by the plans
Addition through business combinations
Effect of movements in exchange rates
-
1.7
(36.1)
60.1
16.7
-
1.8
(38.1)
9.3
15.9
(6.2)
(1.7)
36.1
(59.0)
(26.2)
42.4
(11.1)
(57.0)
(5.9)
(1.8)
38.1
-
(25.5)
4.9
-
-
-
-
1.3
1.3
501.9
484.1
(579.9)
(587.5)
61.4
Total other movements
Carrying amount as of the end
of the year
Annual Report 2022
Net defined
benefit
liability/(asset)
2021
2022
(103.4)
8.9
0.8
0.7
(0.4)
(49.9)
8.4
1.0
0.5
(2.0)
10.0
7.9
8.7
(45.7)
(18.0)
(4.0)
67.0
60.1
(33.2)
-
90.1
(55.2)
(6.2)
-
-
1.1
(8.2)
(13.3)
(5.9)
-
-
9.3
(9.6)
(6.2)
(16.6)
(103.4)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
83
321
Defined benefit
obligation
2022
2021
Fair value
of plan assets
2021
2022
Impact of
asset ceiling
2021
2022
Net defined
benefit
liability/(asset)
2021
2022
349.5
152.4
352.9
131.2
(525.5)
(54.4)
(583.1)
(4.4)
61.4
-
501.9
484.1
(579.9)
(587.5)
61.4
-
-
-
(114.6)
98.0
(230.2)
126.8
(16.6)
(103.4)
(114.6)
98.0
(230.2)
126.8
(16.6)
(103.4)
(In € million)
Comprised of:
Swiss retirement plan
All other plans
Carrying amount as of the end
of the year
Included in the statement of financial
position as:
Employee benefits (asset)
Employee benefits (liability)
Total net defined pension benefits
Expense recognised in profit or loss
The net pension expense is recognised in the following components in the statement of
profit or loss and comprehensive income.
(In € million)
Cost of sales
Selling, marketing and distribution expenses
General and administrative expenses
Total net pension expense
thereof the Swiss retirement plan
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
4.7
1.0
4.3
10.0
5.3
3.7
0.7
3.5
7.9
5.1
Expense recognised in other comprehensive income, including impact of the
asset ceiling
The remeasurement of the Group’s defined benefit pension plans as of 31 December 2022
resulted in a €81.8 million decrease in other comprehensive income (net of tax), of which
€101.6 million relates to the Group’s Swiss pension plan. The decrease is due to negative
asset performance, partially offset by an increase in the discount rate, and to reaching the
asset ceiling for the first time.
An increase in the discount rate in the year ended 31 December 2022 resulted in a
significant decrease of the asset ceiling, which limited the amount that is recognised as a
net defined benefit asset for the Group’s Swiss pension plan to €114.6 million as of
December 2022 (€230.2
31
December 2021). The recognised asset as of
31
December 2022 is limited to the present value of future economic benefits available in
the form of reductions in future contributions to the plan. This first-time impact of the
asset ceiling for the Group is included in the amount recognised in other comprehensive
income.
million as of 31
The remeasurement of the Group’s defined benefit pension plans in the year ended
million, net of income tax, in other
31
comprehensive income.
December 2021 resulted in an increase of €45.7
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
84
322
Plan assets
(In € million)
Equity instruments
Debt instruments
Real estate
Other
Total plan assets
As of
31 Dec.
2022
As of
31 Dec.
2021
125.8
246.2
173.3
34.6
579.9
163.9
226.6
177.0
20.0
587.5
December
2022 (99% as of 31
Approximately 91% of total plan assets are held by the Swiss retirement plan as of
31
December 2021). The debt instruments consist principally
of corporate and government bonds. The equity and debt instrument values are based on
quoted market prices in active markets. The real estate is held through unlisted funds. The
investment policy of the Swiss retirement plan is to target an asset mix of around 25%
equity instruments, 45% debt instruments and 25% real estate funds, and to hold 5% in
cash.
Actuarial assumptions
The amounts recognised under the Group’s defined benefit pension plans are determined
using actuarial methods. The actuarial valuations involve assumptions regarding discount
rates, expected salary increases and the retirement age of employees. These assumptions
are reviewed at least annually and reflect estimates as of the measurement date. Any
change in these assumptions will impact the amounts reported in the statement of
financial position, plus the net pension expense or income that may be recognised in
future years. The mortality table used for the Swiss retirement plan for 2022 and for 2021
was BVG 2020 GT.
While the Swiss retirement plan does not provide for compulsory benefit increases for
pensioners, increases have been granted from time to time at the discretion of the
foundation board, depending on the funding situation at the time.
The discount rate and future salary increases are the assumptions with the most
significant effect on the defined benefit obligation. They are presented in the table below.
(In %)
Discount rates
Future salary increases
Swiss retirement plan
All plans
As of
31 Dec.
2022
2.30%
2.00%
As of
31 Dec.
2021
0.30%
1.50%
As of
31 Dec.
2022
As of
31 Dec.
2021
1.4% - 7.3%
0.0% - 9.0%
0.3% - 6.8%
0.0% - 9.0%
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
85
323
The table below shows the effect on the defined benefit obligation of a change in the
discount rate and future salary increases.
(In € million)
Discount rates
50 basis points increase
50 basis points decrease
Future salary increases
50 basis points increase
50 basis points decrease
Swiss retirement plan
All plans
As of
31 Dec.
2022
As of
31 Dec.
2021
As of
31 Dec.
2022
As of
31 Dec.
2021
(4.6)
4.9
0.9
(0.9)
(5.1)
12.0
1.2
(1.1)
(13.7)
15.0
2.6
(2.3)
(15.4)
23.7
2.8
(2.7)
For the year ended 31 December 2021, a 50 basis points decrease of the discount rate for
the Swiss retirement plan would have resulted in a negative discount rate, which explains
the increased sensitivity to downward changes in discount rates.
Accounting policy
Short-term employee benefits
Short-term employee benefits are expensed in profit or loss as the related services are provided.
A
liability is recognised for the amount expected to be paid under short-term cash bonus or profit-
sharing plans and outstanding annual leave balances if the Group has a present legal or constructive
obligation to pay this amount as a result of past services provided by the employee and the
obligation can be estimated reliably.
Defined benefit plans
The Group’s obligation with respect to its defined benefit plans is calculated separately for each plan
by estimating the amount of the future benefits to which employees are entitled in return for their
services in the current and prior years, discounting that amount to determine the present value of the
Group’s obligation and then deducting the fair value of any plan assets. The discount rate used is the
yield on high-quality corporate bonds that are denominated in the currency in which the benefits will
be paid and that have maturity dates approximating the terms of the Group’s obligations. The
calculations are performed annually by qualified actuaries using the projected unit credit method.
If the calculation results in a potential asset for the Group (such as for the Group’s Swiss retirement
plan), the recognised asset is limited to the present value of economic benefits available in the form
of reductions in future contributions to the plan (the case for the Swiss retirement plan) or any future
refunds from the plan. To calculate the present value of economic benefits, consideration is given to
any applicable minimum funding requirements.
Remeasurements of the net defined liability, comprising actuarial gains and losses, the return on plan
assets (excluding interest) and, if any, the effects of the asset ceiling (excluding interest), are
recognised immediately in other comprehensive income.
The net interest expense/(income) on the net defined benefit liability/(asset) for the period is
determined by applying the discount rate used to measure the defined benefit obligation at the
beginning of the annual period to the net defined liability/(asset) as of that time, taking into account
any changes from contributions and benefit payments. Net interest expense and other plan expenses
are recognised in profit or loss.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
86
324
Accounting policy (continued)
If the benefits of a plan are changed or a plan is curtailed, the resulting change in benefit that relates
to past services or the gain or loss on curtailment is recognised immediately in profit or loss. The
Group recognises gains and losses on the settlement of a defined benefit plan when the settlement
occurs.
Defined contribution plans
The Group’s obligation for contributions to defined contribution plans is expensed as the related
service is provided. Prepaid contributions are recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available. The Group has no further obligations once the
contributions have been paid.
Termination benefits
Termination benefits, when applicable, are payable when employment is terminated by the Group
before the normal retirement date or whenever an employee accepts voluntary redundancy in
exchange for such benefits. Termination costs are expensed when the Group can no longer withdraw
the offer of the benefits or when the Group recognises any related restructuring costs, whichever
occurs earlier.
Significant judgements and estimates
Amounts recognised under the Group’s defined benefit pension plans are determined using actuarial
methods. These actuarial valuations involve various assumptions that reflect estimates as of the
measurement date. See the section “Actuarial assumptions” above for an overview of the impact of
any change in these assumptions.
31
Share-based payment plans and arrangements
long-term
The Group has share-based
incentive plans for certain members of
management and other key employees and talents. The members of the Board of
Directors receive a part of their total compensation under share-based payment
arrangements. These plans and arrangements have an insignificant impact on the Group’s
result.
The Group expects to settle
its equity-settled plans and
its obligations under
arrangements using own shares (treasury shares) or, alternatively, using shares issued
from its conditional share capital (see note
24). The majority of the Group’s share-based
payment plans and arrangements are equity-settled.
Share-based long-term incentive plans for SIG employees
Performance share unit plan
Since 2019, the Group has granted performance share units (“PSUs”) to the members of
the Group Executive Board and certain other members of management on an annual
basis. The PSU plans have equivalent terms and vesting conditions, including a three-year
service vesting condition.
One PSU represents the contingent right to receive one SIG share. The number of granted
PSUs is determined by dividing each participant’s award under the plan by the volume-
trading days prior
weighted average of the closing prices of the SIG share over the last 20
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
87
325
to the grant date as per the PSU regulations (for the 2019 to 2021 plans: by the fair value of
one PSU at the grant date as per IFRS). The number of PSUs that vest depends on the
Group’s long-term performance over the three-year vesting period. The plans include the
following vesting conditions:
Service condition: Continuous employment through to the vesting date.
Two non-market performance conditions: Achievement of a cumulative diluted
adjusted earnings per share target and a cumulative free cash flow target.
One market performance condition: Achievement of a relative total shareholder
return target, measured relative to the SPI® ICB Industry 2000 "Industrials" Total
Return Index (with a vesting factor capped at 1.0 for a negative absolute TSR).
At vesting, the three performance conditions are first assessed individually to determine
the level of achievement of the set targets (in a range from 0% to 200%). The
achievement percentage of each performance condition is then combined based on a
relative weighting of the performance conditions (50% for the relative total shareholder
return target and 25% each for the earnings per share and cash flow targets). The
combined vesting multiple determines how many shares the plan participants are entitled
to at the end of the vesting period.
The fair value of one PSU is calculated based on a Monte Carlo simulation model, which
reflects the probability of over- or underachieving the market performance condition. The
model also takes into account various inputs such as the closing share price of one SIG
share on the grant date and adjusts for expected dividends (discounted at a risk-free
interest rate) to which the plan participants are not entitled until the PSUs vest after three
years.
The table below provides an overview of the annual management PSU plans.
Overview of PSU plans
2022
2021
2020
2019
Grant date
Vesting date
Fair value of one PSU at grant date (in CHF)
Number of employees granted PSUs
Granted number of PSUs
thereof to members of the Group
Executive Board
13 June 2022
31 March 2025
19.56
15
234,753
1 April 2021
31 March 2024
22.31
9
201,707
1 April 2020
1 April 2019
31 March 2023 31 March 2022
9.49
9
537,414
15.05
8
342,198
215,169
187,139
325,586
495,263
The table below provides a reconciliation of the outstanding management PSUs.
Number of PSUs
As of 1 January
Granted PSUs
Vested PSUs (2019 plan)
Forfeited PSUs
As of 31 December
thereof held by members of the Group Executive Board
Outstanding PSUs
2022
2021
692,119
234,753
(350,814)
(50,348)
525,710
491,547
538,198
201,707
-
(47,786)
692,119
522,059
A total of 350,814 PSUs under the 2019 PSU plan vested on 31 March 2022, of which
PSUs relate to current members of the Group Executive Board. Based on the
205,482
achievement of the targets described above, the participants were entitled to
631,469
shares, of which 369,870 shares relate to current members of the Group
Executive Board.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
88
326
The Group settled its obligation under the 2019 PSU plan by delivering treasury shares (see
note 24). The total amount of €4.0 million recognised as a share-based payment expense
for the 2019 PSU plan has been recognised as a decrease in equity. The difference
between this amount and the sum of the cost of the delivered treasury shares is presented
as a reduction of additional paid-in capital.
One member of the Group Executive Board resigned as of 31 December 2022, while
another former member of the Group Executive Board announced in October 2021 that he
would resign (see note 29). As per the good and bad leaver clauses in the PSU plan
regulations, these terminations resulted in forfeitures of a certain number of granted
PSUs.
Restricted share unit plan
Since 2019, the Group has granted a small number of restricted share units (“RSUs”) to a
limited number of employees on an annual basis. One RSU represents the contingent right
to receive one SIG share, subject to the fulfilment of a three-year service vesting
condition.
RSUs under the 2019 RSU plan vested on 31 March 2022. The Group settled its obligation
by delivering treasury shares. Under the 2022 RSU
of the granted RSUs relate
to a member of the Group Executive Board.
plan, 6,831
Equity investment plan
In 2020, the Group introduced an annual equity investment plan (“EIP”) for a wider group
of management in leadership positions and other key employees and talents, under which
the participants may choose to invest in SIG shares at market value. The shares are
blocked for three years. For each purchased share, the Group grants the participants two
matching options to purchase another two shares at a pre-defined exercise price at the
end of a three-year vesting period.
EIP).
The grant date for the 2022 EIP award was 27 May 2022 (31 May 2021 for the 2021
employees
Under the 2022 EIP, 69 employees were granted a total of 149,450 options (64
were granted a total of 124,680
options under the 2021 EIP). The fair value of one option,
calculated using the Black-Scholes model, was CHF 2.74 as of the grant date for the
EIP (CHF 3.63 for the 2021 EIP). A total of 459,272 options under all EIPs were
2022
outstanding as of 31 December 2022 (316,382 as of 31 December 2021).
Integration plans
As part of the integration of Scholle IPN and Evergreen Asia into the Group, 41
employees
who are key to the integration were granted a total of 302,792 PSUs under two smaller
PSU integration plans in August 2022. One of the plans is cash-settled. The number of
December 2025 depends on the achievement of certain targets,
PSUs that will vest on 31
including targets
integration of the two acquired
businesses.
linked to the performance and
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
89
327
Share-based payment arrangements for members of the Board of
Directors
The members of the Board of Directors receive 40% of their total compensation in SIG
shares that are blocked for three years. The grant date is the date of the Annual General
Meeting (normally held in April), when the total compensation package for the next term of
office is approved. The compensation is paid out four times during the one-year term of
office (ie. there are four award dates, each relating to work performed during the quarter
before the respective award date). The fair value of one blocked share is calculated based
on the closing share price of one SIG share on the grant date.
December 2022 (30,583 blocked shares in the year ended 31
The Group granted 39,932 blocked shares to the members of the Board of Directors in the
year ended 31
December
23.40 as of the grant date in the
2021). The fair value of one granted instrument was CHF
December 2021). The
year ended 31 December 2022 (CHF 23.10 in the year ended 31
24).
blocked shares have been delivered using treasury shares (see note
In 2019, two members of the Board of Directors received 14,236 RSUs instead of blocked
shares. These RSUs vested in the year ended 31 December 2022. The Group settled its
obligation by delivering 14,236 treasury shares.
Share-based payment expense
The share-based payment expense recognised as a personnel expense for the year ended
31 December 2022 relating to the PSU, RSU, equity investment and integration plans for
million relates to members of the
SIG employees amounts to €4.8
million, of which €3.1
Group Executive Board (€3.1
December 2021, of which
€2.3
million related to members of the Group Executive Board).
million for the year ended 31
The share-based payment expense recognised as part of general and administrative
expenses for the year ended 31 December 2022 relating to the arrangement for the Board
of Directors amounts to €0.9
million for the year ended 31
December 2021).
million (€0.7
Accounting policy
The Group’s share-based payment plans and arrangements are primarily equity-settled payment
arrangements.
For the equity-settled plans, the grant date fair value of the awards is recognised as an expense, with
a corresponding increase in equity (retained earnings), over the vesting period. The amount
recognised as an expense is adjusted to reflect the number of instruments awarded for which the
related service and any non-market performance conditions are expected to be met, such that the
amount ultimately recognised is based on the number of instruments awarded that meet the related
service and any non-market performance conditions at the vesting date. Any market performance
conditions are reflected in the grant date fair valuation of the instruments awarded and there is no
true-up during the vesting period or at the vesting date for differences between expected and actual
outcomes. If there is no vesting period, the grant date fair value is immediately recognised as an
expense.
For cash-settled plans, the fair value of the amounts payable to employees is recognised as an
expense, with a corresponding increase in liabilities (employee benefits), over the vesting period. The
liability is remeasured at each reporting date and at the settlement date so that the ultimate liability
equals the cash payment on the settlement date. Any changes in the fair value of the liability are
recognised in profit or loss.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
90
328
OTHER
This section provides details about the Group’s income tax exposure and different
categories of financial instruments (including derivative instruments). It further covers fair
value information, off-balance sheet items and subsequent events.
32
Income tax
This note covers the Group’s current and deferred
income tax exposure, with
corresponding impacts on the statement of profit or loss and other comprehensive
income and the statement of financial position.
Management believes that its accruals for tax liabilities are sufficient for all open tax years
based on its assessment of existing facts, prior experiences and interpretations of tax
laws.
Management does not yet have sufficient information to determine the quantitative
impact of the major reform of the international tax system initiated by the OECD, under
which multinational corporations will be subject to a global minimum tax rate of 15% from
2024 onwards. The Group will be negatively impacted by the reform in countries where the
corporate tax rate is currently below 15%. Management is closely monitoring the nature
and timing of legislative tax changes in the countries in which the Group operates.
Amounts recognised in profit or loss
(In € million)
Current year
Adjustments for prior years
Current tax expense
Origination and reversal of temporary differences
Tax rate modifications
Recognition of previously unrecognised tax losses
Adjustments for prior years
Deferred tax benefit
Income tax expense
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
(88.6)
1.3
(87.3)
36.6
0.4
-
(0.7)
36.3
(78.0)
7.5
(70.5)
18.5
-
1.4
(1.7)
18.2
(51.0)
(52.3)
Amounts recognised in other comprehensive income
The Group has recognised in other comprehensive income a deferred tax income of
million relating to the remeasurement of defined benefit plans for the year ended
€8.3
31
December 2022 (€9.5 million deferred tax expense for the year ended 31 December
2021).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
91
329
Reconciliation of effective tax expense
The following table presents the Group’s reconciliation between profit before income tax
and the income tax expense. The reconciliation is based on the Company’s applicable
Swiss tax rate and adjusts for the effect of tax rates applied by Group companies in other
jurisdictions as the Group’s business activities and taxable income are mostly located
outside Switzerland. The effect of tax rates in foreign jurisdictions comprises the
difference between the Company’s applicable Swiss tax rate and the statutory tax rates
per each individual jurisdiction. The Company’s applicable Swiss tax rate of 13.94% for the
year ended 31
December 2022 is slightly lower than for the comparative period (14.29%).
(In € million)
Profit before income tax
Income tax using the Swiss tax rate of 13.94% (2021: 14.29%)
Effect of tax rates in foreign jurisdictions
Non-deductible expenses
Tax-exempt income
Withholding tax
Tax rate modifications
Recognition of previously unrecognised tax losses
Unrecognised tax losses and temporary differences
Tax uncertainties
Tax on undistributed profits
Adjustments for prior years
Income tax expense
Current tax assets and liabilities
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
88.8
(12.4)
(16.1)
(21.2)
14.0
(9.5)
0.4
-
(2.7)
(1.2)
(2.9)
0.6
(51.0)
224.4
(32.1)
(8.4)
(9.8)
8.8
(8.1)
-
1.4
(4.2)
(1.2)
(4.5)
5.8
(52.3)
Current tax assets of €18.0 million as of 31 December 2022 (€4.4 million as of
31
December 2021) represent the amount of income taxes recoverable with respect to
current and prior periods and arise from the payment of tax in excess of the amounts due
to the relevant tax authorities. Current tax liabilities of €46.3
December
December 2021) represent the amount of income taxes
2022 (€42.1
payable with respect to current and prior periods.
million as of 31
million as of 31
liabilities as of 31 December 2022
include an amount of €1.1 million
Current tax
million as of 31 December 2021) for prior periods that will be reimbursed by
(€5.8
PEI
Holdings Company LLC (a company associated with Reynolds Group Holdings
Limited, the owner of the Group prior to 13 March 2015) in line with the share purchase
agreement that was signed when Onex acquired the Group in 2015. The same amount has
been recognised as part of other receivables.
Recognised deferred tax assets and liabilities
(In € million)
Included in the statement of financial position as:
Deferred tax assets
Deferred tax liabilities
Total recognised net deferred tax liabilities
Annual Report 2022
As of
31 Dec.
2022
As of
31 Dec.
2021
60.0
(261.3)
(201.3)
46.0
(147.4)
(101.4)
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
92
330
The following table provides details about the components of deferred tax assets and
liabilities.
(In € million)
PP&E
Intan-
gible
assets
Inven-
tories
Receiv-
ables
Other
pay-
ables
Deferred
revenue
Unre-
mitted
ear-
nings
Other
items
Net
deferred
tax
assets/
(liabilities)
Carrying amount
as of 1 Jan. 2021
Additions through
business combination
Recognised in profit or loss
Recognised in other
comprehensive income
Effect of movements
in exchange rates
Carrying amount
as of 31 Dec. 2021
Carrying amount
as of 1 Jan. 2022
Additions through
business combinations
Recognised in profit or loss
Recognised in other
comprehensive income
Effect of movements
in exchange rates
Carrying amount
as of 31 Dec. 2022
(86.0) (103.5)
16.9
29.4
23.8
27.6
(18.0)
7.9
(101.9)
(2.5)
(26.0)
(7.2)
21.4
(0.8)
12.5
-
0.2
-
5.5
-
-
-
-
-
-
7.9
-
2.8
(3.2)
0.9
(0.6)
2.9
1.0
-
(4.5)
1.1
1.2
(9.4)
18.2
-
-
(9.5)
(9.5)
(2.6)
1.2
(111.7)
(92.5)
29.5
29.0
32.2
36.5
(22.5)
(1.9)
(101.4)
(111.7)
(92.5)
29.5
29.0
32.2
36.5
(22.5)
(1.9)
(101.4)
(41.6)
9.6
(87.6)
22.1
(3.3)
(2.9)
0.9
(30.0)
1.8
6.8
0.1
36.1
(21.3)
(2.9)
9.8
(2.5)
(141.2)
36.3
-
-
-
-
-
-
-
8.3
8.3
(0.1)
(1.8)
0.3
0.4
(0.7)
0.9
0.1
(2.4)
(3.3)
(143.8) (159.8)
23.6
0.3
40.1
73.6
(46.6)
11.3
(201.3)
“Other payables” mainly includes a deferred tax asset relating to liabilities for various
customer incentive programmes. “Other items” mainly includes net deferred tax assets or
liabilities relating to employee benefits and tax loss carry-forwards. Tax loss carry-
forwards recognised as a deferred tax asset amount to €9.4
December
2022 (€2.9
December 2021).
million as of 31
million as of 31
The increase in net deferred tax liabilities since 31 December 2021 is mainly due to the
acquisitions of Scholle IPN and Evergreen Asia in 2022 (see note 27).
Unrecognised deferred tax assets
Deferred tax assets have not been recognised with respect to tax losses of €9.2 million
million, gross amount
(gross amount €28.1 million) as of 31
€26.6
million as of 31 December 2021) because management has assessed that it is not
probable that future taxable profit will be available against which the Group can utilise the
benefits therefrom. Under the current applicable tax legislation, €22.6 million of the
unrecognised tax losses as of 31 December 2022 does not expire while €2.6 million expires
in three to five
years and €2.9 million expires after more than five years.
December 2022 (€8.1
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
93
331
Accounting policy
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit
or loss except to the extent that it relates to a business combination or items recognised directly in
equity or in other comprehensive income.
For subsidiaries in which the profits are not considered to be permanently reinvested, the additional
tax consequences of future dividend distributions are recognised as income tax expense.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year,
using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax
payable or receivable in respect of previous years. Current tax assets and liabilities are only offset if
certain criteria are met.
Deferred tax
Deferred tax is recognised, using the balance sheet method, on temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
tax purposes. Deferred tax is not recognised for the following temporary differences: the initial
recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit, and differences relating
to investments in subsidiaries and joint arrangements to the extent that they will probably not reverse
in the foreseeable future and the Group is in a position to control the timing of the reversal of the
temporary differences. Deferred tax is measured at the tax rates that are expected to be applied to
the temporary differences when they reverse, based on tax rates that have been enacted or
substantively enacted at the reporting date.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on business plans for
individual subsidiaries in the Group. The recoverability of deferred tax assets is reviewed at each
reporting date. Unrecognised deferred tax assets are reassessed at each reporting date and
recognised to the extent that it has become probable that future taxable profits will be available
against which they can be used.
Deferred tax assets and liabilities are only offset if certain criteria are met.
Significant judgements and estimates
Determining the Group’s worldwide income tax liability requires significant judgement and the use of
estimates and assumptions, some of which are highly uncertain. Each tax jurisdiction’s laws are
complex and subject to different interpretations by the taxpayer and the respective tax authorities.
Significant judgement is required in evaluating the Group’s tax positions, including evaluating
uncertainties. To the extent actual results differ from these estimates relating to future periods and
depending on the tax strategies that the Group may implement, the Group’s financial position may be
directly affected.
Deferred tax assets represent deductions available to reduce taxable income in future years. The
Group evaluates the recoverability of deferred tax assets by assessing the adequacy of future
taxable income, including reversal of taxable temporary differences, forecasted earnings and
available tax-planning strategies. Determining the sources of future taxable income relies heavily on
the use of estimates. The Group recognises deferred tax assets when the Group considers it
probable that the deferred tax assets will be recoverable.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
94
332
33
Financial instruments and fair value information
This note provides an overview of the Group’s financial instruments, including derivative
financial instruments, and their categorisation under IFRS. Further details about the
different types of financial assets and financial liabilities are provided throughout these
consolidated financial statements. This note also contains information about the fair value
of the Group’s financial instruments and some general accounting policies covering more
than one type of financial assets and liabilities.
Categories of financial instruments and fair value information
The following tables present the carrying amounts of the Group’s different categories of
financial assets and liabilities as of 31
December 2021. They also
present the respective levels in the fair value hierarchy for financial assets and liabilities
measured at fair value.
December 2022 and 31
(In € million)
Cash and cash equivalents
Trade and other receivables
Derivatives
Total financial assets
Trade and other payables
Loans and borrowings:
- Senior unsecured notes
- Senior unsecured Euro term loan
- Unsecured US Dollar term loan
- Unsecured SSD
- Lease liabilities
Derivatives
Contingent consideration
Carrying amount as of 31 December 2022
At
amortised
cost
At fair value
through
profit or loss
(mandatorily)
503.8
388.2
892.0
33.7
13.2
46.9
Total
503.8
421.9
13.2
938.9
(1,036.7)
(1,036.7)
Fair value
hierarchy
Level
1 2 3
x
x
(996.8)
(546.9)
(252.5)
(647.6)
(230.9)
(996.8)
(546.9)
(252.5)
(647.6)
(230.9)
(23.4)
(113.2)
(23.4)
(113.2)
x
x
Total financial liabilities
(3,711.4)
(136.6)
(3,848.0)
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
95
333
Carrying amount as of 31 December 2021
(In € million)
Cash and cash equivalents
Trade and other receivables
Other financial assets
Derivatives
Total financial assets
Trade, other payables and other liabilities
Loans and borrowings:
- Senior unsecured notes
- Senior unsecured Euro term loan
- Lease liabilities
Derivatives
304.5
221.5
2.7
528.7
(665.7)
(994.5)
(545.7)
(182.4)
At
amortised
cost
At fair value
through
profit or loss
(mandatorily)
Fair value
hierarchy
Level
1 2 3
x
x
x
Total
304.5
247.2
2.7
26.3
580.7
(665.7)
(994.5)
(545.7)
(182.4)
(6.3)
(2,394.6)
25.7
26.3
52.0
(6.3)
(6.3)
Total financial liabilities
(2,388.3)
Fair value of financial assets and liabilities at amortised cost
The carrying amount of the financial assets and liabilities that are not measured at fair
value is a reasonable approximation of fair value. Excluding transaction costs and an
original issue discount (for one loan), this is also the case for the Euro and US Dollar term
loans and the SSD. The fair value of the notes was €973
December 2022
(€1,035 million as of 31
December 2021).
million as of 31
Fair value of trade receivables to be sold under securitisation and
factoring programmes
Trade receivables that will be sold under the Group’s securitisation and factoring
programmes are categorised as measured at fair value through profit or loss. They are
sold shortly after being recognised by the Group and the amount initially recognised for
these trade receivables is representative of their fair value.
Fair value of derivatives
The following tables show the types of derivatives the Group had as of 31 December 2022
and 31 December 2021, and their presentation in the statement of financial position. The
derivatives have been entered into as part of the Group’s strategy to mitigate operational
risks (commodity and foreign currency derivatives) and to mitigate financing risks
(interest rate swap).
Current
assets
Non-
current
assets
Total
derivative
assets
Current
liabilities
Non-
current
liabilities
Total
derivative
liabilities
0.2
4.1
4.3
-
-
-
-
-
8.9
8.9
8.9
0.2
4.1
4.3
8.9
8.9
(21.6)
(1.8)
(23.4)
-
-
13.2
(23.4)
-
-
-
-
-
-
(21.6)
(1.8)
(23.4)
-
-
(23.4)
(In € million)
Commodity derivatives
Foreign currency derivatives
Total operating derivatives
Interest rate swap
Total financing-related derivatives
Total derivatives as of 31 December 2022
4.3
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
96
334
(In € million)
Commodity derivatives
Foreign currency derivatives
Total operating derivatives
Total derivatives as of 31 December 2021
Current
assets
Non-
current
assets
Total
derivative
assets
Current
liabilities
Non-
current
liabilities
Total
derivative
liabilities
26.2
0.1
26.3
26.3
-
-
-
-
26.2
0.1
26.3
26.3
(1.8)
(4.5)
(6.3)
(6.3)
-
-
-
-
(1.8)
(4.5)
(6.3)
(6.3)
The Group measures derivative assets and liabilities at fair value. The fair value is
calculated based on valuation models commonly used in the market. These include
consideration of credit risk, where applicable, and discount the estimated future cash
flows based on the terms and maturity of each contract, using forward interest rates
extracted from observable yield curves and market forward exchange rates at the
reporting date. The derivatives are categorised as level 2 fair value measurements in the
fair value hierarchy as the measurements of fair value are based on significant observable
market data, either directly (ie. as prices) or indirectly (ie.
derived from prices). Changes in
fair value are recognised in profit or loss as the Group generally does not apply hedge
9. As an exception to this policy, the Group applied cash flow
accounting under IFRS
hedge accounting in two instances in the year ended 31 December 2022. See note 27 for
information about the accounting for the deal-contingent derivatives that the Group
entered into in relation to the acquisitions of Scholle IPN and Evergreen Asia in 2022.
Fair value of contingent consideration
The Group’s liability for contingent consideration relates to the acquisition of Scholle IPN
on 1 June 2022 and depends on Scholle IPN outperforming the top end of the Group’s
mid-term revenue growth guidance of 4-6% per year for the years ending 31 December
2023, 2024 and 2025. The maximum amount payable is $300 million ($100 million per
year). For further details, refer to note 27.
As significant unobservable inputs are used in the assessment of the fair value of the
contingent consideration, it is categorised as a level 3 fair value measurement in the fair
value hierarchy. The fair value has been assessed using a Monte Carlo simulation, under
which the simulated contingent consideration payments (for each of the three payment
streams) have been discounted to present value at a corresponding risk-free rate.
The fair value of the US Dollar contingent consideration has increased from €38.6 million
as of the acquisition date to €113.2 million as of 31 December 2022. The unrealised loss of
€74.6 million (including an unrealised foreign currency exchange loss of €0.6 million) is
presented as part of other expenses, where the foreign exchange component is presented
separately (see notes 8 and 9). The increase in fair value is mainly due to revised revenue
projections.
The fair value of the contingent consideration of €113.2 million as of 31 December 2022
would increase by approximately €10 million if the revenue growth rates increased by
1.0
percentage point (decrease by approximately €11 million if the revenue growth rates
decreased by 1.0 percentage point), and increase by approximately €5 million if the
discount rates decreased by 1.0 percentage point (decrease by approximately €5 million if
the discount rates increased by 1.0 percentage point).
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
97
335
Accounting policy
The specific accounting policies for the Group’s different types of financial assets and liabilities are
included in other sections of these consolidated financial statements. This section includes the
accounting policy for topics that are covered in more than one note.
Initial recognition of financial assets and liabilities
The Group initially recognises loans and receivables and any debt issued on the date when they are
originated. All other financial assets and liabilities are initially recognised on the trade date when the
entity becomes party to the contractual provisions of the financial instrument.
Offsetting
Financial assets and financial liabilities are only offset and the net amount presented in the statement
of financial position if the Group currently has a legally enforceable right to offset the amounts and
intends to either settle them on a net basis or realise the asset and settle the liability simultaneously.
Derivatives
Derivatives are measured at fair value with any related transaction costs expensed as incurred.
Derivatives with a positive fair value are presented as other current or non-current assets in the
statement of financial position, while derivatives with a negative fair value are presented as other
current or non-current liabilities.
The gain or loss on remeasurement to fair value is recognised in profit or loss. Net changes in the fair
value of derivatives entered into as part of the operating business are presented as part of profit
from operating activities, while net changes in the fair value of derivatives entered into in relation to
the financing of the Group (if any) are presented in other finance income or expenses. The Group
does not generally apply hedge accounting under IFRS 9.
A derivative embedded in another contract is separated and accounted for separately if its
economic characteristics and risks are not closely related to those of its host contract, a separate
instrument with the same terms as the embedded derivative would meet the definition of a
derivative, and the host contract is not measured at fair value with the fair value changes recognised
in profit or loss. Changes in the fair value of a separated embedded derivative are recognised
immediately in profit or loss.
34 Contingent liabilities
The Group has contingent liabilities relating to legal and other matters arising in the
ordinary course of business. Based on legal and other advice, management is of the view
that the outcome of any such proceedings will have no significant effect on the financial
position of the Group beyond the recognised provision.
Accounting policy
Contingent liabilities are possible obligations arising from a past event to be confirmed by future
events not wholly within the control of the Group, or present obligations arising from a past event for
which an outflow of economic benefits is not probable, or which cannot be measured reliably.
Contingent liabilities are not recognised in the statement of financial position, except for certain
items assumed in a business combination, but are separately disclosed. If it becomes probable that
an outflow of economic benefits will be required for an item previously disclosed as a contingent
liability, a provision is recognised when the change in probability occurs.
Annual Report 2022
Annual Report 2022
Financials ► Consolidated financial statements
Consolidated financial statements
Financials
98
336
35
Subsequent events
There have been no events between 31 December 2022 and 23 February 2023 (the date
these consolidated financial statements were approved) that would require an adjustment
to or disclosure in these consolidated financial statements, except that the Group signed
an unsecured bridge
loan facility agreement on 9 January 2023 and announced
certain changes in the composition of the Group Executive Board on 21 February 2023
(see note 4).
Annual Report 2022
Annual Report 2022 Financials
Report of the statutory auditor
337
Report of the statutory auditor
to the General Meeting of SIG Group AG
Neuhausen am Rheinfall
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of SIG Group AG and its subsidiaries
(the Group), which comprise the consolidated statement of profit or loss and other
comprehensive income for the year ended 31 December 2022, the consolidated statement
of financial position as at 31 December 2022, the consolidated statement of changes in
equity, the consolidated statement of cash flows, and notes to the consolidated financial
statements for the year then ended, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements (pages 239 to 336) give
a true and fair view of the consolidated financial position of the Group as at 31 December 2022
and its consolidated financial performance and its consolidated cash flows for the year
then ended in accordance with the International Financial Reporting Standards (IFRS) and
comply with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on
Auditing (ISAs) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those
provisions and standards are further described in the 'Auditor’s responsibilities for the audit
of the consolidated financial statements' section of our report. We are independent of the
Group in accordance with the provisions of Swiss law and the requirements of the Swiss
audit profession, as well as the International Code of Ethics for Professional Accountants
(including International Independence Standards) of the International Ethics Standards
Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Annual Report 2022 Financials
Report of the statutory auditor
338
Our audit approach
Overview
Overall Group materiality: EUR 27,700,000
We concluded full scope audit work at 11 wholly owned Group companies in 10 countries. Our
audit scope addressed 80% of the Group's revenue and 80% of the Group’s assets. In addition,
specified procedures were performed on a further 6 Group companies in 3 countries representing
a further 3% of the Group's assets.
As key audit matters the following areas of focus have been identified:
• Recoverability of goodwill
• Scholle IPN provisional purchase price accounting
• Evergreen Asia provisional purchase price accounting
Materiality
Audit scope
Key audit
matters
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims
to provide reasonable assurance that the consolidated financial statements are free from
material misstatement. Misstatements may arise due to fraud or error. They are considered
material if, individually or in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for
materiality, including the overall Group materiality for the consolidated financial statements
as a whole as set out in the table below. These, together with qualitative considerations,
helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, both individually and in aggregate,
on the consolidated financial statements as a whole.
Overall Group materiality
EUR 27,700,000
Benchmark applied
Revenue
Rationale for the materiality
benchmark applied
We chose revenue as the benchmark as, in our view, it is the most appropriate
measure considering the Group’s current year’s result is impacted by effects
from purchase price accounting, transaction and acquisition-related costs
as well as restructuring costs. It is further a generally accepted benchmark.
We agreed with the Audit and Risk Committee that we would report to them misstatements
above EUR 2,000,000 identified during our audit as well as any misstatements below that
amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We designed our audit by determining materiality and assessing the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
subjective judgements were made; for example, in respect of significant accounting
estimates that involved making assumptions and considering future events that are
inherently uncertain. As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters consideration of whether there
was evidence of bias that represented a risk of material misstatement due to fraud.
Annual Report 2022 Financials
Report of the statutory auditor
339
We tailored the scope of our audit in order to perform sufficient work to enable us to provide
an opinion on the consolidated financial statements as a whole, taking into account the
structure of the Group, the accounting processes and controls, and the industry in which
the Group operates.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Recoverability of goodwill
Key audit matter
How our audit addressed the key audit matter
As per 31 December 2022, the carrying amount of goodwill was
€3,186.2 million.
We assessed whether the groups of cash-generating units (CGUs)
identified by Management are appropriate.
The recoverable amount of the cash-generating units is calculated on
the basis of their value in use, applying discounted cash flow models.
The valuation of goodwill is a key audit matter based on the magnitude
of the balance and inherent judgement involved in determining
the cash-generating units for impairment testing. Additionally, the
assumptions related to future cash flows and the determination of
discount rates and long-term growth rates require a significant level
of judgement by Management.
We further assessed whether the allocation of goodwill to the
respective group of CGUs, including the implication of the acquisitions
of Scholle IPN and Evergreen’s chilled carton business in Asia, is the
appropriate basis for impairment testing.
With the involvement of our internal valuation experts, we assessed the
methodology used to perform the impairment test in accordance with
the provisions of IAS 36 and challenged and evaluated Management’s
value in use calculation for each group of CGUs.
Refer to Note 14 – Intangible assets and Note 5.4 – Critical accounting
judgements, estimates and assumptions in the consolidated financial
statements.
This included an assessment of the appropriateness of the model used,
as well as challenging the key assumptions made by Management.
• We evaluated the reasonableness of the discount rates, as
determined by Management, by assessing the cost of capital for the
Group, as well as considering territory-specific factors.
• We challenged Management’s cash flow assumptions and sensitivity
analyses applied to such cash flows based on other internal
forward-looking documentation available and by benchmarking
them against external market data for respective regions.
• We evaluated the planning accuracy of Management’s forecast
model by performing
lookback procedures and ensured the
consistency of Management’s cash flow assumptions by comparing
them to the Group’s current 5-year business plan as approved by
the Board of Directors.
We further performed
independent sensitivity analyses around
the key assumptions to ascertain the extent of changes in those
assumptions that either individually or collectively would be required
for the goodwill to be impaired.
We also considered the market capitalisation of the Group
comparison with the Group's equity value.
in
As a result of our procedures, we determined that the conclusions
reached by Management with regard to the recoverability of the
carrying amount of goodwill are reasonable and supportable.
Annual Report 2022 Financials
Report of the statutory auditor
340
Scholle IPN provisional acquisition accounting
Key audit matter
How our audit addressed the key audit matter
On 1 June 2022, the Group acquired 100% of the shares of Clean
Flexible Packaging Holding B.V.
(together with the acquired
subsidiaries, “Scholle IPN”).
We audited whether the provisional acquisition accounting was
performed in accordance with the provisions of IFRS 3 “Business
Combinations”.
The consideration included cash of €424.3 million, a transfer of
33.75 million newly issued SIG shares with a fair value of €686.8 million
and a contingent consideration of a maximum of USD 300 million.
We read the underlying purchase agreement and agreed the cash
payment, the issuance of shares and the contingent consideration
parameters to it.
The acquisition resulted in the recognition of goodwill of €929.8 million
and other intangible assets of €290.3 million, which were allocated to
the different segments.
As of the acquisition date, all identifiable assets acquired and liabilities
assumed were recognised and measured at their fair value at that
date.
The acquisition was deemed a key audit matter because the
assumptions used by Management as part of the provisional
acquisition accounting, in particular the fair value determination
of newly identified intangible assets, acquired assets and assumed
liabilities and the contingent consideration, required a significant level
of judgement by Management.
Refer to Note 27 – Business combinations, Note 14 – Intangible
assets and Note 5.4 – Critical accounting judgements, estimates and
assumptions in the consolidated financial statements.
We specifically audited the valuation report prepared by Management’s
external expert:
• We compared the fair value of newly identified intangible assets,
acquired assets and assumed liabilities as outlined in the valuation
report of Management’s external expert with the consolidated
financial statements.
• We assessed the qualification and independence of Management’s
external expert to prepare the valuation report.
• We assessed the process of identifying assets acquired and liabilities
assumed through discussions with Management and its external
expert as well as the expertise of our valuation experts.
• With the involvement of our valuation experts, we further assessed
the appropriateness of the valuation models applied as well as the
technical and arithmetical correctness of the calculations in the
valuation report.
• We discussed the assumptions and valuation methods for the
fair value adjustments on assets and liabilities assumed with
Management, its external expert and the Audit and Risk Committee.
• For newly identified intangible assets and the valuation step-up on
property, plant and equipment and inventories, we independently
assessed the assumptions made and valuation methods used.
• We assessed whether the discount rate and the long-term growth
rate are within reasonable ranges.
• We recalculated the fair value of the shares transferred at the time
of closing.
• We assessed the methodology applied and the parameters used
in Management’s determination of the fair value of the contingent
consideration.
As a result of our procedures, we determined that the conclusions
reached by Management with regard to the provisional acquisition
accounting for Scholle IPN are reasonable and supportable.
Annual Report 2022 Financials
Report of the statutory auditor
341
Evergreen Asia provisional acquisition price accounting
Key audit matter
How our audit addressed the key audit matter
On 2 August 2022, the Group acquired Evergreen Asia from Evergreen
Packaging International LLC (“Evergreen Asia”).
The consideration for Evergreen Asia amounts to €329.5 million and
has been paid in cash.
The acquisition resulted in the recognition of goodwill of €130.9 million
and other intangible assets of €78.2 million, which were allocated to
the APAC segment.
As of the acquisition date, all identifiable assets acquired and liabilities
assumed were recognised and measured at their fair value.
The acquisition was deemed a key audit matter because the
assumptions used by Management as part of the provisional
acquisition accounting, in particular the fair value determination
of newly identified intangible assets, acquired assets and assumed
liabilities, required a significant level of judgement by Management.
Refer to Note 27 – Business combinations, Note 14 – Intangible
assets and Note 5.4 – Critical accounting judgements, estimates and
assumptions in the consolidated financial statements.
We audited whether the provisional acquisition accounting was
performed in accordance with the provisions of IFRS 3 “Business
Combinations”.
We read the underlying purchase agreement and agreed the cash
payment to it.
We specifically audited the valuation report prepared by Management’s
external expert:
• We compared the fair value of newly identified intangible assets,
acquired assets and assumed liabilities as outlined in the valuation
report of Management’s external expert with the consolidated
financial statements.
• We assessed the qualification and independence of Management’s
external expert to prepare the valuation report.
• We assessed the process of identifying assets acquired and liabilities
assumed through discussions with Management and its external
expert as well as the expertise of our valuation experts.
• With the involvement of our valuation experts, we further assessed
the appropriateness of the valuation models applied as well as the
technical and arithmetical correctness of the calculations in the
valuation report.
• We discussed the assumptions and valuation methods for the
fair value adjustments on assets and liabilities assumed with
Management, its external expert and the Audit and Risk Committee.
• For newly identified intangible assets and step-up on land, we
independently assessed the assumptions made and valuation
methods used.
• We assessed whether the discount rate and the long-term growth
rate are within reasonable ranges.
As a result of our procedures, we determined that the conclusions
reached by Management with regard to the provisional acquisition
accounting for Evergreen Asia are reasonable and supportable.
Other information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the financial
statements, the consolidated financial statements, the remuneration report and our
auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the consolidated financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Annual Report 2022 Financials
Report of the statutory auditor
342
Board of Directors' responsibilities
for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial
statements that give a true and fair view in accordance with IFRS and the provisions of
Swiss law, and for such internal control as the Board of Directors determines is necessary
to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible
for assessing the Group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor’s responsibilities
for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law,
ISAs and SA-CH will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on
the basis of these consolidated financial statements.
A more detailed description of our responsibilities for the audit of the consolidated financial
statements can be found on the EXPERTsuisse website: http://www.expertsuisse.ch/en/
audit-report. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a paragraph 1 item 3 CO and PS-CH 890, we confirm that an
internal control system exists which has been designed for the preparation of consolidated
financial statements according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Bruno Rossi
Audit expert
Auditor in charge
Manuela Baldisweiler
Audit expert
Basel, 23 February 2023
Annual Report 2022 Financials ► Financial statements
Financials
Financial statements
1
343
Financial statements
for the year ended 31 December 2022
SIG Group AG
Income statement
Balance sheet
Notes
Proposal of the Board of Directors for the appropriation of the retained earnings
Proposal of the Board of Directors for the appropriation of the capital contribution reserve
Report of the statutory auditor on the audit of the financial statements
344
345
346
356
356
357
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
2
344
Income statement
(in CHF thousand)
Income from investments
Other income
Total income
Personnel expenses
Other operating expenses
Total operating expenses
Profit from operating activities
Finance income
Finance expenses
Profit before income tax
Income tax expense
Profit for the period
Note
3.1
3.2
3.8
3.2
Year ended
31 Dec.
2022
Year ended
31 Dec.
2021
147,297.6
7,413.5
154,711.1
(14,671.1)
(9,572.9)
142,974.0
7,450.0
150,424.0
(6,626.7)
(7,862.3)
(24,244.0)
(14,489.0)
130,467.1
135,935.0
1,118.7
(39.9)
77.1
(4,679.9)
131,545.9
131,332.2
-
-
131,545.9
131,332.2
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
3
345
Note
3.3
3.4
As of
31 Dec.
2022
146.5
2,683.4
2,683.4
223,945.7
223,945.7
5.1
5.1
302.4
227,083.1
As of
31 Dec.
2021
715.6
1,645.2
1,645.2
38,799.6
38,799.6
91.8
91.8
159.7
41,411.9
3.5
3,446,252.9
2,740,202.9
3,446,252.9
2,740,202.9
3,673,336.0
2,781,614.8
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
354.6
251.8
102.8
463.2
463.2
2,831.8
2,831.8
3,399.0
7,048.6
2,086.5
2,086.5
2,086.5
690.6
577.2
113.4
789.0
789.0
6,093.8
6,093.8
3,057.6
10,631.0
1,689.9
1,689.9
1,689.9
9,135.1
12,320.9
3,822.7
3,188,724.2
3,188,724.2
472,164.7
340,618.8
131,545.9
(510.7)
3,375.2
2,425,353.6
2,425,353.6
340,618.8
209,286.6
131,332.2
(53.7)
3,664,200.9
2,769,293.9
3,673,336.0
2,781,614.8
Balance sheet
(in CHF thousand)
Cash and cash equivalents
Trade receivables
- Due from Group companies
Current interest-bearing receivables
- Due from Group companies
Other current receivables
- Due from third parties
Accrued income and prepaid expenses
Total current assets
Investments
Total non-current assets
Total assets
Trade payables
- Due to third parties
- Due to Group companies
Current interest-bearing liabilities
- Due to Group companies
Other current liabilities
- Due to third parties
Accrued expenses
Total current liabilities
Non-current liabilities
- Due to third parties
Total non-current liabilities
Total liabilities
Share capital
Legal reserves
- Capital contribution reserve
Retained earnings
- Profit brought forward
- Profit for the period
Treasury shares
Total shareholders’ equity
Total liabilities and shareholders’ equity
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
4
346
Notes
1
General information
SIG Group AG (“SIG” or the “Company”) is domiciled in Neuhausen am Rheinfall,
Switzerland, and is listed on SIX Swiss Exchange. On 13 April 2022, the Company changed
its name from SIG Combibloc Group AG to SIG Group AG. References to “Group“ are to the
Company and its consolidated subsidiaries.
2
Summary of significant accounting policies
The financial statements of the Company for the year ended 31 December 2022 have been
prepared in accordance with Swiss law. Where not prescribed by law, the significant
accounting and valuation policies applied are described below.
2.1
Exclusion of a cash flow statement and certain note disclosures
its annual consolidated financial statements
line with
SIG Group AG prepares
International Financial Reporting Standards (“IFRS”), a recognised standard. It further
includes a management report (Financial review) in its annual report. In accordance with
Swiss law (Art. 961d para 1 of the Swiss Code of Obligations (“CO”)), the Company has
therefore elected not to include in its financial statements a cash flow statement and a
management report.
in
2.2
Foreign currency translation
The Company maintains its accounting in Swiss Francs (CHF), which is also its functional
currency. The balance sheet and income statement are also presented in this currency.
The exchange rates used for the balance sheet items are the closing rates as of 31
December 2022 and 31
December 2021. Balances denominated in foreign currencies are
translated into CHF as follows:
Investments expressed in a currency other than CHF are translated into CHF at the
exchange rate at the date of their acquisition. At the balance sheet date, such
investments are maintained at their historical exchange rate. Liabilities which are
economically linked to investments and expressed in a currency other than CHF are
maintained at their historical exchange rate at the end of the year.
All other monetary assets and liabilities expressed in a currency other than CHF are
translated into CHF at the exchange rate prevailing at year-end. All exchange
differences resulting from this translation are presented in the income statement. Any
unrealised exchange gains included therein are not considered significant.
Income and expenses denominated in foreign currencies are translated into CHF at the rate
at the transaction date.
The following significant exchange rates have been applied.
Average rate for the year
Spot rate as of
31 Dec.
2022
31 Dec.
2021
31 Dec.
2022
31 Dec.
2021
1.00514
1.04738
1.08142
0.91382
0.98470
1.08318
1.03310
0.91215
EUR to CHF
USD to CHF
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
5
347
2.3
Investments
Investments are initially recognised at cost. Investments are analysed on an annual basis
for impairment indicators and are, if needed, adjusted to their recoverable amount.
2.4 Treasury shares
Own shares held by the Company are accounted for as treasury shares. Treasury shares
are initially recognised at acquisition cost and deducted from equity with no subsequent
remeasurement. If the treasury shares are disposed of, the resulting gain or loss is
recognised in the income statement.
3
Information relating to income statement and balance
sheet items
3.1
Income from investments
Income from investments for the year ended 31 December 2022 consists of a dividend of
CHF 147,297.6 thousand from SIG Combibloc Holdings S.à
(a dividend of
CHF
thousand for the year ended
December 2021).
142,974.0
r.l.
31
3.2 Other income and other operating expenses
Other income primarily consists of management fees charged to direct or indirect
subsidiaries. Other operating expenses primarily consist of compensation paid to the Board
of Directors and consultancy costs.
3.3 Trade receivables
Trade receivables due from Group companies as of 31 December 2022 and 31
2021 mainly consist of management fees charged to direct or indirect subsidiaries.
December
3.4 Current interest-bearing receivables
As of 31 December 2022, current interest-bearing receivables due from Group companies
consist of an interest-bearing inter-company Swiss Franc loan of CHF 209,000.0 thousand
due from SIG Schweizerische Industrie-Gesellschaft GmbH and an interest-bearing inter-
14,675.8 thousand (CHF 38,799.6 thousand as of
company Swiss Franc loan of CHF
31
loan receivable of
Combibloc Services AG. The
December 2021) due from SIG
CHF
209,000.0 thousand relates to cash received by the Company in the accelerated book
building process in May 2022, and lent to SIG Schweizerische Industrie-Gesellschaft GmbH
to partly finance the acquisition of Evergreen Asia. See notes 3.5 and 3.11.
3.5
Investments
The following subsidiary is directly held by the Company. Its equity increased in the year
ended 31 December 2022 due to a capital contribution (see below).
Name and legal form
Registered office
Capital
Votes
Capital
Votes
As of 31 Dec. 2022
As of 31 Dec. 2021
SIG Combibloc Holdings S.à r.l.
6C, rue Gabriel Lippmann
L-5365 Munsbach
Grand Duchy of Luxembourg
100%
100%
100%
100%
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
6
348
The subsidiaries indirectly held by the Company are listed in note 26 of the consolidated
financial statements of the Company for the year ended 31
December 2022. For additional
information about the acquisitions described below, see note 27 of the consolidated
financial statements of the Company for the year ended 31
December 2022.
Acquisition of Scholle IPN
On 1 June 2022, the Company acquired 100% of the shares of Clean Flexible Packaging
Holding
B.V. (together with the acquired subsidiaries, “Scholle IPN”) from CLIL Holding B.V.
(“CLIL”). CLIL is controlled by Laurens Last and has subsequently been renamed Clean
Holding B.V. Scholle IPN provides packaging solutions for beverage, food and non-food
products.
The Company paid $445.1 million (CHF 427.1 million) in cash (subject to customary closing
adjustments) and transferred 33.75
million newly issued SIG shares with a fair value of
706,050 thousand at the acquisition date to CLIL as part of the consideration for
CHF
Scholle IPN. The new SIG shares were issued from authorised share capital on 23 May 2022
million.
(see note 3.11). In addition, there is contingent consideration of a maximum of $300
B.V. were subsequently transferred by the
The shares of Clean Flexible Packaging Holding
Company to SIG Schweizerische Industrie-Gesellschaft GmbH. The transfer of the
investment in Scholle IPN of CHF 1,133,172.9 thousand was made against an off-set of a
loan of CHF 427,122.9 thousand due from the Company to SIG Schweizerische Industrie-
706,050.0 thousand
Gesellschaft GmbH (see note 3.7) and by a capital contribution of CHF
from SIG Schweizerische Industrie-Gesellschaft GmbH to the Company’s directly held
subsidiary SIG Combibloc Holdings S.à r.l.
Acquisition of Evergreen’s chilled carton business
(“Evergreen Asia”)
in Asia Pacific
indirectly held by the Company (SIG
On 2 August 2022, one of the subsidiaries
Industrie-Gesellschaft GmbH) acquired Evergreen’s chilled carton
Schweizerische
business in Asia Pacific (“Evergreen Asia”) from Evergreen Packaging International LLC
(“Evergreen”). Evergreen Asia offers chilled carton packaging solutions in Asia.
The Group paid $335.9 million in cash (subject to customary closing adjustments) at the
acquisition date as consideration for Evergreen Asia. The consideration was partly financed
via the issue of 11,000,000 ordinary shares by the Company from its authorised share
capital on 18 May 2022. The new shares were offered to investors as part of an accelerated
book building process. See note 3.11.
Acquisition of the shares of the former joint ventures in the Middle East
On 25 February 2021, the Company acquired the remaining 50% of the shares of the
Group’s two joint ventures in the Middle East (“the acquisition”) from the joint venture
Obeikan Group for Investment Company CJS (“OIG”) for a consideration of
partner Al
million), split into cash of €167.0 million (CHF 185.0 million) and
€490.3
million (CHF
17,467,632
million
issued SIG ordinary shares with a fair value of €323.3
newly
million) at the time of closing. The new SIG shares were issued from authorised
358.1
(CHF
share capital on 22 February 2021 (see note 3.11). The two former joint ventures (Al Obeikan
SIG
Combibloc Company Ltd. in Saudi Arabia and SIG Combibloc FZCO in UAE) are since
the acquisition fully owned subsidiaries of the Group.
543.1
The shares of the former joint ventures were subsequently transferred by the Company to
SIG Combibloc Services AG in the year ended 31 December 2021 against a loan receivable
of €490.3
million), which was partly offset by an interest-bearing inter-
company Swiss Franc loan from SIG
Combibloc Services AG.
million (CHF
538.4
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
7
349
3.6 Trade payables
Trade payables due to Group companies as of 31 December 2022 and 31 December 2021
mainly relate to intra-group recharges.
3.7 Current interest-bearing liabilities
In the year ended 31 December 2022, the Company received an interest-bearing inter-
company Swiss Franc loan of CHF 427,122.9 thousand from SIG Schweizerische Industrie-
Gesellschaft GmbH to pay the consideration for the shares of Clean Flexible Packaging
June 2022. The loan was settled in connection with
Holding
the subsequent transfer of the investment in Scholle IPN to SIG Schweizerische Industrie-
Gesellschaft GmbH. See also note 3.5.
B.V. that was due in cash on 1
As of 31 December 2022, current interest-bearing liabilities due to Group companies include
an interest-bearing inter-company Euro loan of CHF 463.2 thousand from SIG Combibloc
Services AG.
As of 31 December 2021, current interest-bearing liabilities due to Group companies
included both an interest-bearing inter-company Swiss Franc loan and an interest-bearing
inter-company Euro loan from SIG Combibloc Services AG (in total CHF 789.0 thousand as
of 31
December 2021).
3.8 Other current liabilities
thousand for
liabilities for the year ended 31 December 2022 primarily
include
Other current
CHF
liabilities arising due to share-based payment plans and
1,552.5
arrangements (granted in 2020) for certain members of management and the Board of
Directors. For the year ended 31 December 2021, other current liabilities included
CHF
thousand for liabilities arising due to share-based payment plans and
arrangements (granted in 2019) for certain members of management and the Board of
Directors.
3,024.6
In the year ended 31 December 2022, the performance share units (“PSUs”) that were
granted to current and former members of management of the Company under the 2019
PSU plan vested (see also note 3.10). The settlement of this 2019 PSU plan in April 2022
resulted in an additional expense of CHF 6,808.1 thousand (excluding social charges)
recognised as part of personnel expenses for the year ended 31 December 2022.
For additional information about the share-based payment plans and arrangements, see
note 3.10 below and note 31 of the consolidated financial statements of the Company for
the year ended 31
December 2022.
596.4
include
For the year ended 31 December 2022, other current
CHF
thousand for termination benefits (garden leave agreement) relating to one
former member of the Group Executive Board who resigned as of 31 December 2022
(CHF
2,418.5 thousand as of 31 December 2021 for the remaining termination benefits,
including non-compete agreements, relating to two former members of the Group
Executive Board who left the Company in 2020).
liabilities also
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
8
350
3.9 Accrued expenses
Accrued expenses for the year ended 31 December 2022 primarily consist of employee
benefit obligations of CHF 2,135.2 thousand (CHF 2,782.1 thousand as of 31 December 2021).
There were no payments outstanding to the pension funds as of 31 December 2022 or
31
December 2021.
3.10 Non-current liabilities
For the year ended 31 December 2022, non-current liabilities primarily consist of liabilities
arising due to share-based payment plans (granted in 2021 and 2022) for certain members
of management.
For the year ended 31 December 2021, non-current liabilities primarily consisted of liabilities
arising due to share-based payment plans (granted in 2020 and 2021) for certain members
of management.
For additional information about the share-based payment plans and arrangements, see
note 3.8 above and note 31 of the consolidated financial statements of the Company for
the year ended 31
December 2022.
3.11 Share capital
As of 31 December 2022, the share capital consists of 382,270,872 shares, issued and fully
paid, representing CHF 3.8 million of share capital (337,520,872 shares, issued and fully
paid, representing CHF 3.4 million of share capital as of 31 December 2021). The table below
provides an overview of these shares.
Number of shares
Balance as of 1 January 2021
Issue of shares on 22 February 2021
Balance as of 31 December 2021
Balance as of 1 January 2022
Issue of shares on 18 May 2022
Issue of shares on 23 May 2022
Balance as of 31 December 2022
Total shares
320,053,240
17,467,632
337,520,872
337,520,872
11,000,000
33,750,000
382,270,872
Issue of shares from authorised share capital
On 18 May 2022, the Company issued 11,000,000 ordinary shares with a nominal value of
CHF 0.01 per share from authorised share capital under exclusion of the subscription rights
of existing shareholders. The new shares were offered to investors as part of an accelerated
book building process. The placement of the shares at a price of CHF
19.40 per share
213,400,000, resulting in an increase in the share capital
generated gross proceeds of CHF
of CHF 0.1 million and an increase in the legal reserves of CHF 213.3
million. The costs
incurred of CHF 3.8 million that are directly attributable to the placement of the shares have
been recognised as a deduction from equity (capital contribution reserve). The net
proceeds from the capital increase amounted to CHF 209.6 million and were used to fund,
in part, the acquisition of Evergreen Asia. The new shares were listed and admitted to
trading on SIX Swiss Exchange on 19 May 2022.
On 23 May 2022, the Company issued 33,750,000 ordinary shares with a nominal value of
CHF 0.01 per share from authorised share capital under exclusion of the subscription rights
of existing shareholders. SIG Combibloc Services AG acquired the newly issued shares at
in cash. The Company subsequently
nominal value for CHF
thousand, paid
337.5
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
9
351
reacquired these shares, also at nominal value. The shares, together with a cash payment,
were part
June 2022.
of the consideration for Scholle IPN that was transferred to CLIL on 1
The difference between the nominal value of the issued shares and the fair value of the
shares at the acquisition date is presented as part of the legal reserves.
On 22 February 2021, the Company issued 17,467,632 ordinary shares with a nominal value
of CHF 0.01 per share from authorised share capital under exclusion of the subscription
rights of existing shareholders. SIG Combibloc Services AG acquired the newly issued
shares at nominal value for CHF
thousand, paid in cash. The Company subsequently
reacquired these shares, also at nominal value. The Company transferred the
17,467,632
newly issued shares to OIG on 25 February 2021 as part of the consideration for
the remaining shares of the joint ventures in the Middle East. The difference between the
nominal value of the issued shares and the fair value of the shares at the acquisition date is
presented as part of the legal reserves. See also note 3.5.
174.7
Authorised share capital and conditional share capital
The Company has authorised share capital of CHF 565,062.61 as of 31
(CHF
(CHF 640,106.48 as of 31 December 2021).
December 2021) and conditional share capital of CHF
675,041.74 as of 31
December 2022
640,106.48
Before the Annual General Meeting held on 7 April 2022, the Board of Directors was
authorised, at any time until 21 April 2023, to increase the
Company’s share capital through
authority to issue shares from authorised share
the issue of up to 67,504,174 shares. The
capital under exclusion of the subscription rights of existing shareholders was limited to a
maximum of 33,752,087
shares, equalling CHF
337,520.87.
The Annual General Meeting held on 7 April 2022 approved, subject to consummation of the
additional
acquisition of Scholle IPN having occurred or being imminent, the creation of
authorised share capital of 10% of the then issued share capital (ie.
337,520.87),
million shares that could be issued without subscription rights of the
corresponding to 33.75
existing shareholders. Hence, the
authority to issue shares from authorised share capital
under exclusion of the subscription rights of existing shareholders increased to a maximum
of 67,504,174
675,041.74, subject to the acquisition of Scholle IPN
having occurred or being imminent. This allowed the Company, after the issue of shares
from authorised share capital on 18 May 2022, again to use authorised share capital to issue
and transfer shares to CLIL as part of the consideration for Scholle IPN (see section above
and note 3.5).
shares, equalling CHF
CHF
As of 31 December 2022, the Board of Directors is authorised, at any time until 21 April 2023,
Company’s share capital through the issue of up to 56,506,261 shares.
to increase the
Capital increases from authorised and conditional share capital are subject to a single
combined limit, and may not exceed 64,010,648 shares, equalling CHF
640,106.48.
However, the
authority to issue shares from authorised and conditional share capital under
exclusion of the subscription and advance subscription rights respectively is limited to a
single combined maximum of 22,754,174 shares, equalling CHF 227,541.74.
The authorised share capital can be used for various purposes. This provides flexibility to
seek additional capital, if required, for investment and acquisition opportunities or to take
advantage of favourable market conditions to further improve the Group’s capital position.
160,026.62 for employee benefit plans and
The conditional share capital is divided into CHF
CHF
December 2022 (also as
of 31 December 2021).
480,079.86 for equity-linked financing instruments as of 31
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
10
352
Balance
2,209,198.0
357,911.8
(141,758.8)
2.6
2,425,353.6
2,425,353.6
915,224.6
(151,884.4)
30.4
3,188,724.2
3.12 Capital contribution reserve
The capital contribution reserve consists of the following:
(In CHF thousand)
Capital contribution reserve as of 1 January 2021
Additional paid-in capital from issue of shares
Dividend payment of CHF 0.42 per share from the capital contribution reserve
Dividend not paid on treasury shares held by the Company
Capital contribution reserve as of 31 December 2021
Capital contribution reserve as of 1 January 2022
Additional paid-in capital from issue of shares, net of costs
Dividend payment of CHF 0.45 per share from the capital contribution reserve
Dividend not paid on treasury shares held by the Company
Capital contribution reserve as of 31 December 2022
Withholding tax-exempt distributions from the capital contribution reserve of Swiss listed
companies are generally only permissible to the extent that at least the same amount is
distributed from other reserves. These provisions do not apply to repayments of “foreign
capital contribution reserves”. The Company has a capital contribution reserve of
3,188.7 million as of 31 December 2022 (CHF 2,425.4 million as of 31 December 2021),
CHF
which is confirmed by the Swiss Federal Tax Administration. Foreign capital contribution
reserves included in the capital contribution reserve amount to CHF 1,954.7 million
(CHF
1,400.9 million as of 31 December 2021). The whole dividend paid in 2021 and 2022 was
distributed from foreign capital contribution reserves. The whole dividend to be proposed
to the Annual General Meeting in April 2023 is expected to be distributed from foreign
capital contribution reserves.
3.13 Treasury shares
The movements in treasury shares during the year were as follows:
(Number of treasury shares or in CHF thousand)
Number
Amount
Number
Amount
2022
2021
Balance as of 1 January
Purchases
Transfer under equity-settled share-based payment
plans and arrangements
Balance as of 31 December
2,430
749,126
(53.7)
(16,434.0)
6,274
26,739
(728,261)
15,977.0
(30,583)
23,295
(510.7)
2,430
(114.6)
(670.4)
731.3
(53.7)
The Company purchases its own shares on the market to settle its obligations under the
Group’s equity-settled share-based payment plans and arrangements. The Company held
23,295
December 2022 (2,430 shares as of 31 December
2021), representing an amount of CHF 510.7 thousand.
shares for this purpose as of 31
In the year ended 31 December 2022, the Company transferred 728,261 treasury shares
(representing CHF 15,977.0 thousand) to participants in the Group’s equity-settled share-
based payment plans and arrangements.
No treasury shares are held by the Company’s subsidiaries or joint venture.
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
11
353
4
Other information
4.1
Employees
The number of full-time equivalent employees in 2022 and 2021 did not exceed ten on an
annual average basis.
4.2 Significant shareholders
According to the disclosure notifications reported to the Company and published by the
Company via the electronic publishing platform of SIX Swiss Exchange, the following
shareholders had holdings of 3% or more of the voting rights of the Company as of
31
December 2022 and 2021.
Significant shareholders
Haldor Foundation2
Laurens Last3
Fahad al Obeikan4, Andreas Boy and André Rosenstock
BlackRock Inc (Mother company)
UBS Fund Management (Switzerland) AG
Swisscanto Fondsleitung AG
Norges Bank (the Central Bank of Norway)
Ameriprise Financial, Inc.
Voting rights as of1
31 Dec. 2022
31 Dec. 2021
9.95%
9.19%
5.00%
3.57%/0.01%
3.18%
3.13%
-
-
9.95%
-
5.18%
3.57%/0.01%
3.18%
-
4.96%
3.17%/0.002%
1 When comparing the percentages of voting rights held as of 31 December 2021 and as of 31 December 2022, it should be noted that the number of the Company’s
2
3
4
outstanding shares increased in May 2022 (see note 3.11).
The direct shareholder is Winder Investment Pte Ltd.
The direct shareholder is Clean Holding B.V. (formerly CLIL Holding B.V.), which is 100% owned by Laurens Last. He is a member of the Group’s Board of Directors.
The direct shareholder with respect to Fahad al Obeikan is Al Obeikan Group for Investment Company CJS. Andreas Boy and André Rosenstock were only reported
as shareholders as of 31 December 2021.
For further details about the significant shareholders as of 31 December 2022, refer to
section 1.2 of the Corporate Governance Report. To the best of the Company's knowledge,
no other shareholder held 3% or more of SIG Group AG's total share capital and voting rights
as of 31 December 2022 and 2021.
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
12
354
4.3 Shares held directly or indirectly by the Board of Directors and
the Group Executive Board, including any related parties
As of 31 December 2022, the members of the Board of Directors as of that date directly and
indirectly held the following number of shares and restricted share units.
Board of Directors
Andreas Umbach
Matthias Währen
Colleen Goggins
Werner Bauer
Wah-Hui Chu
Mariel Hoch
Martine Snels
Abdallah al Obeikan3
Laurens Last4
Total
Number of directly or
indirectly held shares1, 2
100,407
34,414
39,690
59,516
51,915
20,141
5,683
1,832,237
35,132,170
37,276,173
1
2
Ordinary registered shares of SIG Group AG, including blocked shares.
The members of the Board of Directors receive 40% of their total compensation in SIG shares that are blocked for three years.
Further details about the compensation of the Board of Directors, including terms, number and value of instruments granted, are included in the Compensation
Report and in note 31 of the consolidated financial statements.
3 Of the above-reported number of shares, Abdallah al Obeikan indirectly held 1,827,110 shares via his shareholding in Al Obeikan Group for Investment Company
CJS.
4 Of the above-reported number of shares, Laurens Last indirectly held 35,129,733 shares via his 100% shareholding in Clean Holding B.V. (formerly CLIL Holding
B.V.).
Laurens Last, the former owner of Scholle IPN, was elected to the Board of Directors at the
Annual General Meeting on 7 April 2022.
Nigel Wright decided not to stand for re-election and stepped down from the Board of
Directors upon the conclusion of the Annual General Meeting on 7 April 2022.
As of 31 December 2021, the members of the Board of Directors as of that date directly and
indirectly held the following number of shares and restricted share units.
Board of Directors
Andreas Umbach
Matthias Währen
Colleen Goggins
Werner Bauer
Wah-Hui Chu
Mariel Hoch
Martine Snels
Abdallah al Obeikan3
Nigel Wright
Total
Number of directly or
indirectly held shares1, 2
Unvested restricted
share units2
Total
shareholdings
90,121
30,206
28,382
55,495
41,132
16,120
1,853
1,828,963
-
2,092,272
-
-
7,287
-
6,949
-
-
-
-
90,121
30,206
35,669
55,495
48,081
16,120
1,853
1,828,963
-
14,236
2,106,508
1
2
Ordinary registered shares of SIG Group AG, including blocked shares.
The members of the Board of Directors receive 40% of their total compensation in SIG shares that are blocked for three years. Prior to 2020, a small part of the
share-based payment compensation was paid out in restricted share units (“RSUs”) with a three-year vesting period. The RSUs vested in the year ended
31
December 2022. The Company settled its obligation by delivering treasury shares.
Further details about the compensation of the Board of Directors, including terms, number and value of instruments granted, are included in the Compensation
Report and in note 31 of the consolidated financial statements.
3 Of the above-reported number of shares, Abdallah al Obeikan indirectly held 1,827,110 shares via his shareholding in Al Obeikan Group for Investment Company
CJS.
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financials
Financial statements
13
355
As of 31 December 2022 and 31 December 2021, the members of the Group Executive Board
as of these dates held the following number of shares and performance share units.
Group Executive Board
Samuel Sigrist,
Chief Executive Officer
Frank Herzog
Ian Wood
Ricardo Rodriguez3
Abdelghany Eladib4
José Matthijsse
Lawrence Fok5
Fan Lidong
Angela Lu
Suzanne Verzijden6
Ross Bushnell
Total
As of 31 Dec. 2022
As of 31 Dec. 2021
Number of
directly or
indirectly
held shares1
Unvested
performance
share units2
Number of
directly or
indirectly
held shares1
Unvested
performance
share units2
210,000
-
100,000
235,000
7,920
-
-
181,478
-
-
-
734,398
176,207
16,285
94,085
70,564
27,109
27,109
-
48,310
13,662
4,554
13,662
491,547
200,063
-
75,000
250,002
7,420
-
188,572
-
-
-
-
721,057
194,901
33,618
119,450
97,491
13,447
13,447
49,705
-
-
-
-
522,059
1
Ordinary registered shares of SIG Group AG.
2 Members of the Group Executive Board participate in a share-based long-term incentive plan under which they are granted performance share units (“PSUs”) on
an annual basis. One PSU represents the contingent right to receive one SIG share. Vesting occurs three years after the grant date. The exact number of PSUs that
vests depends on the long-term performance of SIG during the vesting period. The PSUs granted under the 2019 PSU plan vested in the year ended 31 December
2022. The Company settled its obligation by delivering treasury shares.
Further details about the incentive plans, including terms, number and value of instruments granted, are included in the Compensation Report and in note 31 of the
consolidated financial statements.
3 Of the above-reported number of shares, Ricardo Rodriguez indirectly held 225,000 shares (no indirect shareholding as of the end of the comparative period).
4 Of the above-reported number of shares, 7,420 are blocked shares.
5
6
Lawrence Fok was only a member of the Group Executive Board until 31 December 2021.
Suzanne Verzijden held 6,831 RSUs as of 31 December 2022 under the Group’s 2022 RSU plan.
Lawrence Fok left his role as President and General Manager of Asia Pacific as of
31
December 2021 and has subsequently left the Group. Due to the Group’s growth in Asia
Pacific, his role on the Group Executive Board has been taken over by two executives with
January 2022. Fan Lidong has taken on the newly created role of President
effect from 1
and General Manager of Asia Pacific North. Angela Lu has taken on the newly created role
of President and General Manager of Asia Pacific South.
Suzanne Verzijden joined the Group Executive Board as Chief People and Culture Officer,
effective as of 1
January 2022.
Ross Bushnell, CEO of Scholle IPN since October 2019, joined the Group Executive Board as
President of Scholle IPN, effective as of 1 June 2022.
Frank Herzog, Chief Financial Officer, resigned as of 31 December 2022.
For additional information about the share-based payment plans and arrangements, see
note 3.8 above and note 31 of the consolidated financial statements of the Company for
the year ended 31
December 2022.
Annual Report 2022
Annual Report 2022
Financials ► Financial statements
Financial statements
Financials
14
356
4.4 Other
Guarantee obligations
The Company is the guarantor on a stand-alone basis for the Group’s obligations under its
notes, its senior unsecured credit facilities (including outstanding letters of credit), its
US
Dollar term loan and Schuldscheindarlehen (“SSD”). The debt totalling €2,458.1 million
as of 31 December 2022 is taken up by indirectly held subsidiaries of the Company. No such
22 of the
guarantee obligation existed as of 31 December 2021. See further note
December 2022.
consolidated financial statements of the Company for the year ended 31
Subsequent events
There have been no events subsequent to 31 December 2022 that would require an
adjustment to or disclosure in these financial statements except that an indirectly held
subsidiary of the Company signed a €400 million unsecured bridge loan facility agreement
on 9
January 2023. The facility may be accessed in June 2023, when €450 million of the
Group’s senior unsecured notes are due for repayment.
There are no further items to disclose according to Art. 959c of the Swiss Code of
Obligations.
Proposal of the Board of Directors for the appropriation of the retained
earnings
(In CHF thousand)
Profit brought forward from previous period
Profit for the period
Retained earnings at the end of the period
As of
31 Dec.
2022
340,618.8
131,545.9
472,164.7
As of
31 Dec.
2021
209,286.6
131,332.2
340,618.8
Retained earnings to be carried forward
472,164.7
340,618.8
The Board of Directors proposes to the Annual General Meeting to be held on 20 April 2023
to carry forward retained earnings of CHF
472.2 million.
Proposal of the Board of Directors for the appropriation of the capital
contribution reserve
(In CHF thousand)
Capital contribution reserve as of 31 December 2021
Additional paid-in capital from issue of shares
Transaction costs directly attributable to issue of shares
Dividend payment of CHF 0.45 per share in April 2022 from the capital
contribution reserve
Dividend not paid in April 2022 on treasury shares held by the Company
Proposed dividend of CHF 0.47 per share in April 2023 from the capital
contribution reserve
Capital contribution reserve carried forward after cash dividend
2,425,353.6
919,002.5
(3,777.9)
(151,884.4)
30.4
(179,667.3)
3,009,056.9
Provided that the proposal of the Board of Directors is approved by the Annual General
Meeting to be held on 20 April 2023, the dividend will amount to CHF 0.47 per share and is
expected to be paid from the Company’s foreign capital contribution reserve. Dividends are
not paid on treasury shares.
Annual Report 2022
Annual Report 2022
Financials
Report of the statutory auditor
357
Report of the statutory auditor
to the General Meeting of SIG Group AG
Neuhausen am Rheinfall
Report on the audit of the financial statements
Opinion
We have audited the financial statements of SIG Group AG (the Company), which
comprise the income statement for the year ended 31 December 2022, balance sheet as
at 31 December 2022, and notes to the financial statements (pages 343 to 356), including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements comply with Swiss law and the
company’s articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing
(SA-CH). Our responsibilities under those provisions and standards are further described
in the 'Auditor’s responsibilities for the audit of the financial statements' section of our
report. We are independent of the Company in accordance with the provisions of Swiss law
and the requirements of the Swiss audit profession, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Our audit approach
Overview
Overall materiality: CHF 18,300,000
Materiality
Audit scope
Key audit
matters
We tailored the scope of our audit in order to perform sufficient work to
enable us to provide an opinion on the financial statements as a whole,
taking into account the structure of the Company, the accounting
processes and controls, and the industry in which the Company
operates.
We have determined that there are no key audit matters to
communicate in our report.
Annual Report 2022 Financials
Report of the statutory auditor
358
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion
aims to provide reasonable assurance that the financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material
if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for
materiality, including the overall materiality for the financial statements as a whole as set out
in the table below. These, together with qualitative considerations, helped us to determine
the scope of our audit and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, both individually and in aggregate, on the financial
statements as a whole.
Overall materiality
CHF 18,300,000
Benchmark applied
Total assets
Rationale for the materiality
benchmark applied
We chose total assets as the benchmark because it is a relevant and
generally accepted measure for materiality considerations relating to a
holding company.
We agreed with the Audit and Risk Committee that we would report to them misstatements
above CHF 900,000 identified during our audit as well as any misstatements below that
amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We designed our audit by determining materiality and assessing the risks of material
misstatement in the financial statements. In particular, we considered where subjective
judgements were made; for example, in respect of significant accounting estimates that
involved making assumptions and considering future events that are inherently uncertain.
As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters consideration of whether there was evidence of
bias that represented a risk of material misstatement due to fraud.
Key audit matters
We have determined that there are no key audit matters to communicate in our report.
Other information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the financial
statements, the consolidated financial statements, the remuneration report and our
auditor’s reports thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated.
Annual Report 2022 Financials
Report of the statutory auditor
359
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Board of Directors' responsibilities for the financial statements
The Board of Directors is responsible for the preparation of the financial statements in
accordance with the provisions of Swiss law and the company’s articles of incorporation,
and for such internal control as the Board of Directors determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the
Company's ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Board of
Directors either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and
SA-CH will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
A more detailed description of our responsibilities for the audit of the financial statements
can be found on the EXPERTsuisse website: http://www.expertsuisse.ch/en/audit-report.
This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a paragraph 1 item 3 CO and PS-CH 890, we confirm that
an internal control system exists which has been designed for the preparation of financial
statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of retained earnings and capital
contribution reserves complies with Swiss law and the company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Bruno Rossi
Audit expert
Auditor in charge
Manuela Baldisweiler
Audit expert
Basel, 23 February 2023
Annual Report 2022 360
EU taxonomy
361
EU taxonomy regulation
Annual Report 2022 EU taxonomy
EU taxonomy regulation
361
EU taxonomy regulation
The Regulation (EU) 2020/852 of the European Parliament and of the Council (the Taxonomy
Regulation) establishes a classification system of environmentally sustainable economic
activities. This shall facilitate the identification of sustainable activities and consequently
foster the redirection of financial investments towards green and transition-promoting
businesses and technologies – the latter being an important vehicle to meet the objectives
of the European Green Deal and the EU’s climate targets.
Under the Taxonomy Regulation, an economic activity is considered environmentally
sustainable, if it makes a substantial contribution to at least one of the EU’s six climate and
environmental objectives, while at the same time not significantly harming any of these
objectives and meeting minimum social safeguards. The six objectives are:
I.
II.
III.
IV.
V.
VI.
climate change mitigation;
climate change adaptation;
the sustainable use and protection of water and marine resources;
the transition to a circular economy;
pollution prevention and control; and
the protection and restoration of biodiversity and ecosystems.
At the time of writing, Taxonomy-eligible activities and respective technical screening criteria
have only been defined for the first two climate objectives, in the Climate Delegated Act.
SIG’s Taxonomy-eligible economic activities:
manufacturing of low carbon technologies
As a company providing aseptic food and beverage packaging, SIG Group AG plays an active
role in the transition towards a low carbon, circular economy. SIG welcomes the establishment
of the EU Taxonomy Regulation and recognizes the importance of creating transparency
on its share of sustainable activities for stakeholders such as investors. Consequently, SIG
has voluntarily conducted a first eligibility analysis of its business activities in light of the
EU Taxonomy’s Climate Delegated Act. SIG’s Taxonomy-eligible activities were identified
following the Taxonomy framework, mapping SIG’s business activities and NACE Codes
with the business activities and NACE Codes listed in the Climate Delegated Act.
The Climate Delegated Act focusses first and foremost on activities and sectors which can
drive the transition to zero carbon emissions. The emphasis is on the most carbon-intensive
industries, such as the construction, energy, and transport sector, as well as on green
innovations, which can significantly contribute to climate change mitigation or adaptation.
In this context, the Climate Delegated Act does not list the manufacturing of food and
beverage packaging solutions as an eligible activity within the manufacturing sector.
Nevertheless, our preliminary analysis suggests that SIG’s main economic activity - the
manufacturing of filling machines and providing of solutions for aseptic carton packaging
for our major product categories liquid dairy, non-carbonated soft-drink, and long-life
food - corresponds well with the eligible activity 3.6 the manufacturing of other low carbon
Annual Report 2022 EU taxonomy
EU taxonomy regulation
362
technologies, as mentioned in Annex 1 to the Climate Delegated Act. It aims at substantial
life-cycle GHG emission reductions in other sectors of the economy and can consequently
contribute to the goal of climate change mitigation.
The following table shows our Taxonomy-eligibility key performance indicators, i.e. the
shares of our activities eligible with respect to the climate change mitigation objective . It
is important to note that for 2022, SIG Group AG only assessed the eligibility of its business
activities under the EU Taxonomy. Throughout 2023, we plan to assess the alignment of our
eligible activities.
Turnover
Capex
Opex
Absolute
(€ m.)
Proportion
(%)
Absolute
(€ m.)
Proportion
(%)
Absolute
(€ m.)
Proportion
(%)
2,357
100%
126
100%
2,056
100%
0
0%
0
0%
0
0%
2,357
100%
126
100%
2,056
100%
A. Taxonomy eligible
activities
B. Taxonomy non-
eligible activities
Total (A+B)1
1 Excludes the recent acquisitions of Scholle IPN and Evergreen Asia as their eligibility is still under review and assessment.
Definitions
Article 1(5) of the Disclosures Delegated Act clarifies that “’taxonomy-eligible economic
activity’ means an economic activity that is described in the delegated acts adopted
pursuant to Article 10(3), Article 11(3), Article 12(2), Article 13(2), Article 14(2), and Article
15(2), of Regulation (EU) 2020/852, irrespective of whether that economic activity meets
any or all of the technical screening criteria laid down in those delegated acts”. In turn, a
‘taxonomy-non-eligible economic activity’ means any activity that is not described in the
respective delegated acts.
Assessment of our activities’ Taxonomy-eligibility
Our assessment of Taxonomy-eligible activities is focused on our revenue-generating
economic activities. Revenue is derived from the sale of goods such as carton packaging
sleeves, closures, bag-in-box and spouted pouches with associated materials (barrier film
and fitments), filling lines and related equipment as well as the provision of after-market
services. Revenue is presented net of returns, trade discounts, volume rebates and other
customer incentives. In addition, the Group presents income from the deployment of filling
lines and related equipment under contracts that qualify to be accounted for as operating
leases as part of revenue.
We consider as Taxonomy-eligible under activity 3.6 the manufacturing and provision of
filling machines and aseptic carton packs, which includes the following economic activities:
the manufacturing and selling of plastic closures (NACE-Code C22.22), the manufacturing
and selling of packs (NACE-Code C17.21), and the manufacturing and selling of all types of
filling machines and filling line solutions (NACE-Code C28.29), including activities related to
the servicing and maintenance of filling machines (NACE-Code C33.21, M70.1).
Annual Report 2022 EU taxonomy
EU taxonomy regulation
363
Our aseptic cartons play a key role in minimizing carbon emissions by keeping food safe
and fresh for long periods without the need for refrigeration in the supply chain. They have a
28-70% lower carbon footprint than other packaging formats, such as plastic and glass
bottles or cans – and solutions in our innovative SIGNATURE portfolio lower this up to
58% further. They are made with renewable energy and mainly from renewable materials.
We source the fibre used to make their main raw material, liquid packaging board, from
sustainably-managed forests that act as important carbon sinks. We are committed to
continuing to offer the lowest carbon alternative to other types of packaging in each major
category: liquid dairy, non-carbonated soft-drinks, and long-life food; and increase uptake
of our lowest carbon solutions, supported by critically reviewed life-cycle analyses based on
international standards such as ISO 14040. For more information on the sustainability and
carbon-performance of our filing machines and packs, please refer to our Climate+ chapter
on > pages 93-104.
Our KPIs and accounting policies
SIG’s Taxonomy disclosures follow the EU Commission’s Art. 8 Delegated Act supplementing
the EU Taxonomy Regulation by specifying the content and presentation of information to
be disclosed. The Key Performance Indicators (KPIs) disclosed cover the 12 month period
which ended on 31 December 2022. As the technical screening criteria for the remaining
four environmental objectives have not been adopted at the time of drafting this report, the
following only cover eligibility with respect to the objectives of climate change mitigation
and climate change adaptation.
Turnover KPI
The proportion of Taxonomy-eligible economic activities in our total turnover has been
calculated as the part of net turnover (“revenue”) derived from products and services
associated with Taxonomy-eligible economic activities (numerator) divided by the
net turnover (denominator), in each case for the financial year from 1 January 2022 to
31 December 2022.
The denominator of the turnover KPI is based on our revenue, excluding the acquisition of
Scholle IPN and Evergreen Asia. For further details on our accounting policies regarding
our revenue, see note 6 of the consolidated financial statements for the year ended
31 December 2022.
The numerator of the turnover KPI is defined as the revenue derived from products and
services associated with Taxonomy-eligible economic activities.
Capital expenditure KPI
The capital expenditure KPI is defined as Taxonomy-eligible capital expenditure (numerator)
divided by our net capital expenditure (denominator).
Net capital expenditure consists of additions to tangible and intangible fixed assets
during the year ended 31 December 2022, before depreciation, amortisation and any re-
measurements. The total of net capital expenditure does not include the acquisitions of
Scholle IPN and Evergreen Asia. It includes acquisitions of tangible fixed assets (IAS 16),
intangible fixed assets (IAS 38), right-of-use-assets (IFRS 16) and investment properties
(IAS 40). Upfront cash has been included as a reduction of capital expenditure. For further
Annual Report 2022 EU taxonomy
EU taxonomy regulation
364
details on our definition of net capital expenditure, and our additions to tangible and
intangible fixed assets during the year ended 31 December 2022, see note 11, note 12 and
note 14 of the consolidated financial statements for the year ended 31 December 2022.
The numerator consists of net capital expenditure related to assets or processes that
are associated with Taxonomy-eligible economic activities. We consider that assets
and processes are associated with Taxonomy-eligible economic activities when they are
essential components necessary to execute an economic activity.
Operating expenditure
The operating expenditure KPI is defined as Taxonomy-eligible operating expenditure
(numerator) divided by our total operating expenditure (denominator). Total operating
expenditure consists of our cost of sales, selling marketing and distribution expenses and
general and administrative expenses and excludes the acquisitions of Scholle IPN and
Evergreen Asia. The numbers reported have been derived from the financial reporting
system that is used as a source for preparing our consolidated statements of profit or loss
and other comprehensive income, in our consolidated financial statements for the year
ended 31 December 2022.
Outlook
We plan to assess the alignment of our manufacturing of filling machines and packs in our
key markets and for our major product categories (dairy, non-carbonated soft drinks and
long-life food) with the EU Taxonomy’s climate objectives throughout 2023. As concerns
eligibility and alignment with the remaining four environmental objectives, it is important to
note that policy-makers are still in the process of defining activities and technical screening
criteria. Particularly with respect to the circular economy objective, we expect an expansion
into economic sectors and activities relevant to our products and operations. Consequently,
our assessment may evolve and we will ensure to update our reporting accordingly and in
line with updated information from the European Commission.
Annual Report 2022 365
TCFD
366
Task Force on Climate-related
Financial Disclosures report
Annual Report 2022 TCFD
Task Force on Climate-related Financial Disclosures report
366
Task Force on Climate-related
Financial Disclosures report
This section covers our disclosures following the
recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD).
Governance
The Board of Directors, acting collectively, has the ultimate responsibility for the conduct
of business of the Company and for delivering sustainable value for shareholders and other
stakeholders. The Board sets the Company’s strategic aims, ensures that the necessary
financial and human resources are in place to meet the Company’s objectives, and
supervises and controls the management of the Company. We assess and manage climate-
related issues through our Way Beyond Good Climate+ action area. For more information
on The Way Beyond Good, please see > pages 78-176. The Way Beyond Good ambitions to
create a net positive impact on people and the planet are built into our business strategy, our
Corporate Compass. Ultimate accountability for our performance and progress on he Way
Beyond Good commitments lies with our CEO and Group Executive Board (GEB) – and this is
built into their remuneration via our Short-Term Incentive Plan. Every GEB meeting includes
standing items on responsibility topics, including climate-related issues. GEB members
sit in our Responsibility Steering Group (RSG) together with senior representatives of
key functions and each region. The GEB also engages directly with our independent
Responsibility Advisory Group (RAG) to gain valuable external input. Together with the CEO
and the GEB, the RSG governs any climate-related issues at an operational level. The RSG
meets at least twice a year to oversee SIG's responsibility roadmap and strategy, review
progress and ensure alignment across the business. Climate-related issues, including
climate-related risks, are substantial elements of the agendas for RSG meetings. In 2022, for
instance, these meetings addressed the implications of the recently established guidance
for science-based targets and necessary programme adaptations to our accounting,
reporting and assessment approaches. Relevant sustainability updates, including those
related to progress on our science-based targets, are regularly reported to the Board of
Directors. For more information on our governance of climate-related issues, please refer
to the Responsibility built in section of the Way Beyond Good chapter on > pages 84-91.
For more information on SIG Group AG’s corporate governance, please see our Corporate
Governance Report on > pages 184-211.
Strategy
We regularly assess potential climate-related impacts on our business and strategy, and
climate change was again identified as a material topic for SIG in our latest materiality
assessment in 2022. This year we deepened our assessment of climate-related impacts and
further expanded the consideration of different climate scenario assumptions. Following
the TCFD’s¹ categorisation, the assessment covers impacts related to the transition to a
1
https://assets.bbhub.io/company/sites/60/2020/10/FINAL-2017-TCFD-Report-11052018.pdf.
Annual Report 2022 TCFD
Task Force on Climate-related Financial Disclosures report
367
lower-carbon economy – which can pose policy-, legal-, technology- and market-related
transition risks – and physical risks related to the acute and chronic physical impacts of a
changing climate. It assesses potential impacts occurring over the short (1-3 years), medium
(3–5 years) and long (over 5 years) term.
In 2022, we assessed impacts in light of a best-case ”Net Zero by 2050” scenario, as well as
a worst-case scenario. The best-case scenario aligns with the RCP1.9 emissions pathway,
projecting a global mean temperature increase of below 1.5°C by 2100. Under this scenario,
we expect to see more immediate and stringent policy reactions, including increased
implementation of carbon pricing mechanisms. Related changes in cost patterns and public
awareness may also directly affect consumers’ purchasing behaviour and preferences for
more sustainable product alternatives, which may turn into an opportunity for our packaging
solutions, which have a lower carbon footprint than alternative types of packaging. The
longer-term physical effects of climate change may be limited since the RCP1.9 pathway is
related to an effective mitigation of climate change impacts.
The worst-case scenario aligns with the RCP8.5 pathway, projecting a global mean
temperature increase of around 5°C by the end of the century. Necessary climate action
would be delayed until the 2030s, with policy actions implemented to halt the rise in GHG
emissions at a late stage. Emissions would steadily rise, preventing us from reaching our
greenhouse gas reduction targets. Social and economic costs can be expected to be even
higher, while physical effects of climate change are expected to be even more drastic,
leading to constraints in the availability of natural resources and more critical disruptions in
supply chains and markets.
To identify which potential climate-related impacts are material, we estimate the probability
of occurrence and severity of a potential financial impact in line with our enterprise risk
management (ERM). For more information on our ERM, please see > pages 73-77. Results
of the assessment in 2022 show that, overall, SIG’s business strategy is well positioned for
the transition towards a more sustainable, low carbon, circular economy. The Climate+
action area includes a programme that is designed to reduce our emissions in line with
climate science along the value chain. Our low carbon packaging enables us to support our
customers and consumers to lower their own carbon emissions. This ability to offer a low
carbon alternative to other types of packaging is a key differentiator and value driver that
not only mitigates climate-related risks but enables SIG to capitalise on climate-related
opportunities. Our products offer a variety of assets that are associated with climate benefits
by consumers, such as renewable content or recyclability – in addition to the advantages
of ambient packaging with excellent shelf-life performance, which contributes to reducing
food waste.
Our assessment of climate-related issues also shows that some issues identified may have
a potential financial impact on SIG’s business. Potential new and more stringent regulatory
measures to limit climate change could increase SIG’s production costs, for example by
increasing costs for raw materials with a climate-intensive supply chain, or by demanding
higher investments in building up recycling infrastructure. Changing customer preferences
and purchasing behaviours may increase the demand for products which demonstrate high
climate and environmental performance. While SIG is currently well placed to meet such
demands, failing to do so, or meeting them less well than our competitors, could potentially
translate into a loss of sales. Additionally, chronic or acute climate change impacts on forests
may result in the reduction or loss of forest resources, which may result in disruptions in the
supply of liquid packaging board, one of our main raw materials, consequently limiting our
ability to supply our products to customers. For more information on our climate strategy,
please see our Climate+ chapter on > pages 93-104.
Annual Report 2022 TCFD
Task Force on Climate-related Financial Disclosures report
368
Risk management
Our approach to addressing climate-related risks and opportunities is integrated in
our annual ERM. In 2022, material climate-related impacts were discussed in the risk
management workshops with regional and functional leadership teams that were held to
identify and evaluate risks. In addition, a separate risk workshop was held with the Group
Executive Board to discuss and validate the overall risk portfolio. Monitoring and control
of risks are supported by our internal control system for financial reporting, which defines
measures that reduce potential risks. Management is responsible for implementing, tracking
and reporting risk mitigation measures, including periodic reporting to the Audit and Risk
Committee and the Board of Directors. Each identified material risk has a risk owner at
management level who is responsible for the implementation of risk management measures
in their area of responsibility. Each material risk also has a mitigation action owner, mostly
in global functions with regional counterparts to ensure local implementation. For more
information on our ERM, please see > pages 73-77.
Moreover, each of the Way Beyond Good action areas and enablers is owned by a member
of the RSG, who is accountable for setting stretching goals and delivering progress through
targeted workstreams. Responsibility leaders from relevant functions and regions are
responsible for implementing the Way Beyond Good targets, with support from relevant
experts across the business. Our assessment concludes that SIG is well positioned to
respond to and manage the climate-related risks identified. We have already implemented
a range of mitigation and adaptation measures to address our most significant potential
climate-related risks. Examples from 2022 include: maintaining 100% renewable electricity
for production of our aseptic carton packs; innovations to further reduce the carbon
footprint of our packaging solutions; engagement with suppliers to further reduce the
climate impact of key raw materials, for example through certification to the Aluminium
Stewardship Initiative standard, which includes strict limits on greenhouse gas emissions;
and partnerships to foster collection and recycling of used beverage cartons in priority
markets. For more information on our climate-related mitigation and adaptation measures,
including our Pathway to Net Zero, please refer to our Climate+ chapter on > pages 93-104.
Climate is a key priority in our strategy, and we consequently evaluated whether our
acquisitions may impact our risk assessment. We were able to conclude that this does not
lead to major changes in our risk portfolio.
Metrics and targets
Our Way Beyond Good journey demands that we become a Climate+ business. This means
that, in addition to reducing our emissions in line with climate science, we will remove more
carbon from our value chain than we emit. Alongside this, we will continue to help our
customers and consumers to lower their own carbon footprints further with our low-impact
packaging. We are already among the group of leading companies that have set science-
based targets approved by the Science Based Targets initiative (SBTi) in line with the latest
climate science to limit global warming to 1.5°C above pre-industrial levels.
Annual Report 2022 TCFD
Task Force on Climate-related Financial Disclosures report
369
In 2022, we have further increased our ambition level with new science-based targets
submitted to SBTi for approval, including a formal commitment to reach Net Zero greenhouse
gas emissions across our value chain by 2050. The new targets commit us to:
• Near-term: Reduce absolute Scope 1 and 2 greenhouse gas emissions by 42%, and
reduce Scope 1, 2 and 3 greenhouse gas emissions by 52% per litre packed by 2030 (from
a 2020 baseline).
• Long-term: Reduce absolute Scope 1 and 2 greenhouse gas emissions by 90% and
reduce Scope 3 greenhouse gas emissions by 97% per litre packed by 2050 (from a 2020
baseline).
For more information on our climate-related metrics and targets, as well as on our
greenhouse gas reporting, which includes the newly acquired business, please refer to our
Climate+ chapter on > pages 93-104, our “Greenhouse gas emissions basis for reporting”
on > pages 380-386, our “Key performance indicators” on > pages 167-169, as well as our
“GRI content index” on > pages 387-410.
Annual Report 2022 370
Appendix
371 ESG disclosures
373 Stakeholder engagement
376
Contribution to the United Nations Sustainable
Development Goals
380 Greenhouse gas emissions basis for reporting
387 GRI content index
411 Assurance statement
Annual Report 2022 Appendix
ESG disclosures
371
ESG disclosures
Our corporate responsibility (CR) reporting on environmental, social and governance (ESG)
topics is included in SIG’s Annual Report.
The Way Beyond Good chapter (see > pages 78-176) provides an overview of CR governance,
progress towards our Way Beyond Good ambitions, and performance on our most material
environmental and social topics. This appendix provides further disclosures, including:
• a list of ESG reporting frameworks we follow and additional disclosures we make
• how we listen and respond to stakeholders
• our material topics, how we identify these and a summary of our management approach
on each (included within the GRI content), as well as links to more details on our approach
to material ESG topics on our website
• our contribution to the United Nations Sustainable Development Goals
• an index of our reporting in accordance with the Global Reporting Initiative (GRI) Standards
• an independent external assurance statement.
Reporting frameworks
We align our CR reporting and ESG disclosures with recognised external frameworks,
including:
• CDP: We disclose detailed information for investors and customers on our management
and performance on climate issues and forests through the CDP.
• Dow Jones Sustainability Indices (DJSI): We responded to the S&P Global Corporate
Sustainability Assessment survey for an investor audience for the second time this year.
• EcoVadis: We submit extensive information to support our annual assessment by
EcoVadis for participating customers.
• EU Corporate Sustainability Reporting Directive (CSRD): We are monitoring the
requirements of the upcoming CSRD and respective European Sustainability Reporting
Standards, and working to integrate necessary elements into our reporting.
• EU Taxonomy: We welcome the establishment of the EU Taxonomy Regulation and this
year we have voluntarily conducted a first eligibility analysis of our business activities
following the Taxonomy framework (see > pages 361-364).
• Global Reporting Initiative (GRI): We report annually in accordance with the GRI Standards
(see > pages 387-410). Our last GRI reporting was included in the SIG Annual Report we
published in 2022 for the 2021 reporting year.
• Greenhouse Gas (GHG) Protocol: Our greenhouse gas emissions are reported in
accordance with the GHG Protocol (see our GHG emissions basis for reporting on
> pages 380-386). We are also reviewing the guidance from the GHG Protocol on forest
land and agriculture (FLAG) to better understand whether SIG’s role in this through our
supply chain will enable us to adopt a sufficiently robust and meaningful science-based
target specifically on FLAG.
• Human rights due diligence reporting: As part of our workstream on human rights, we are
conducting a detailed evaluation of due diligence activities, including related reporting,
required to meet forthcoming regulations on this topic, such as the German Supply Chain
Due Diligence Law (Lieferkettensorgfaltspflichtengesetz) that will become mandatory in
the financial year 2023.
Annual Report 2022 Appendix
ESG disclosures
372
• Swiss law on reporting obligations on non-financial matters: We are monitoring
the requirements of the Swiss law on reporting obligations on non-financial matters
(Swiss CO 964) and the Swiss Ordinance on Due Diligence and Transparency in relation to
Minerals and Metals from Conflict-Affected Areas and Child Labour, and we are working
to integrate respective elements into our reporting in 2023.
• Task Force on Climate-related Financial Disclosures (TCFD): We align our public
reporting with the elements of the TCFD framework, including scenario analysis, to
address climate-related risks and opportunities (see > pages 366-369).
• Taskforce on Nature-related Financial Disclosures (TNFD): Building on our established
efforts to source renewable raw materials from responsibly managed forests, we are
using the TNFD framework to inform our assessment of risks and opportunities for our
business and working towards TNFD reporting in future.
• United Nations Global Compact: As a signatory to the United Nations Global Compact,
we submit an annual Communication on Progress in relation to its ten principles.
• United Nations Sustainable Development Goals (SDGs): We describe how we are
contributing to the SDGs on > pages 376-379.
WE SUPPORT
SIG supports the SDGs
Find out more about our approach to ESG topics
We publish detailed policies, including public
commitments, on ESG topics on our website.
For each topic, we explain why it is material for
SIG, state what our commitment is, and set out
our policy and approach. This external summary
is supported by an in-depth internal ESG Policy
Manual to guide our approach across the
business.
Annual Report 2022 Appendix
Stakeholder engagement
373
Stakeholder engagement
We engage with stakeholders to understand
what matters most to them, and we respond to
their feedback.
How we engage with stakeholders
Stakeholder
How we engage
Key topics and concerns
Our response
Customers want us to meet their
requirements on a broad range
of responsibility issues and help
them achieve their social and
environmental goals. Recyclability
of products, recycling infrastructure,
and increased use of renewable
and recycled materials remain high
on our customers’ agendas.
In our 2022 global employee
engagement survey, overall
engagement remained strong even
during a period of significant change
in the business with two major
acquisitions this year. Feedback
showed we outperformed the
industry benchmark in categories
including corporate responsibility,
equal opportunities and inclusion,
learning and development, fairness
of pay and retention. But there is
room for improvement in relation
to empowerment, non-monetary
recognition and survey follow-up.
Industry peers are keen to work
together on common advocacy
goals and to meet shared industry
challenges, such as increasing
recycling rates.
Customers
• Customer questionnaires
• Regular interactions with
customers through sales
and service
Employees
• Biennial global employee
survey
• Regular day-to-day
dialogue
• Formal appraisals
• Consultation with
employee representatives
• Townhall meetings
• Recognition schemes
Industry
• Industry associations such
as ACE and GRACE
• The Consumer
Goods Forum
• Industry platforms such as
AIM-PROGRESS, EUROPEN
(the European Organisation
for Plastics and the
Environment), the European
Bioplastics association,
EXTRA:CT and 4evergreen
We engage closely with customers to understand
and respond to their needs. We use established
industry platforms, such as SEDEX and EcoVadis,
to demonstrate compliance with customer
requirements, and we support their goals through
product innovation.
This year, we partnered with several customers
on recycling initiatives, including our Recycle for
Good project in Egypt and the establishment
of collection points in the Dominican Republic
(see > page 114 and > page 117).
During the year, we continued to look for ways to
further improve on priority areas identified through
the previous employee survey conducted in 2020.
We have a clear roadmap in place for our leaders
and employees to discuss the results of the latest
global employee survey, define and implement
actions and communicate progress on an ongoing
basis to demonstrate more clearly how we are
responding to feedback from the survey.
Engaging employees on our plans and welcoming
colleagues from our newly acquired businesses
was an important focus this year.
See > pages 145-153 for more on engagement
with employees in 2022.
We also continued to engage our people through
our Way Beyond Good Champions engagement
campaigns (see > pages 160-162).
We continued to work through industry associations
and partner directly with others in our industry
to drive progress on recycling initiatives around
the world (see > pages 109-120). This year, we
supported the development of ACE’s Design for
Recycling Guidelines for beverage cartons in Europe
and 4evergreen’s guidance on circularity by design
and improved collection and sorting of fibre-based
packaging for recycling. We also reinforced our
commitment to the Consumer Goods Forum’s
Golden Design Rules to tackle plastic waste through
its Plastic Waste Coalition of Action.
Through our membership of AIM-PROGRESS,
this year we used its established methodology to
assess the maturity of our responsible sourcing
programme and identify areas for improvement
(see > page 143).
Annual Report 2022 Appendix
Stakeholder engagement
374
Stakeholder
How we engage
Key topics and concerns
Our response
Investors
• Annual Report
• Annual General Meeting
• Quarterly reporting and
investor calls
• Twice-yearly management
roadshows
• Capital markets days
• Regular dialogue with
existing and prospective
investors (a total of 235
investor meetings in 2022)
• Investor conferences
(eight in 2022, meeting
with 108 institutional
investors )
• Ad hoc visits to our
production sites
Investors seek sustainable, long-
term returns. The main ESG topics
they raised in 2022 continued to be:
recycling and circularity; how to make
SIG’s most sustainable products more
mainstream; and how to leverage
the sustainability credentials of SIG’s
solutions compared with other types
of packaging. Investors are also
interested in how we are aligning with
frameworks such as the EU Taxonomy
and the recommendations of the
Task Force on Climate-related
Financial Disclosures (TCFD) and the
Taskforce on Nature-related Financial
Disclosures (TNFD).
Suppliers
• Regular engagement
• Communication of our
expectations on CR topics
• Compliance assessments
and audits
Suppliers want to know what our
requirements are on responsibility
so they can understand how to
meet them.
Sustainability
experts and
NGOs
• Responsibility Advisory
Group (RAG)
• Regular conversations with
experts from academia,
institutes, government
and non-governmental
organisations
• Participation in multi-
stakeholder initiatives,
including the Sustainability
and Health Initiative for
NetPositive Enterprise
(SHINE) and the Science
Based Targets initiative
(SBTi)
• Engagement with experts
such as the Institute for
Energy and Environmental
Research (IFEU) and Forum
for the Future
• Partnerships with NGOs
Experts want us to show we are
managing our most material issues,
setting ambitious targets and reporting
transparently on our performance,
following recognised international
standards.
Independent experts in our RAG met
with members of our Group Executive
Board twice in 2022 to provide insight
and feedback on our approach as we
continue to refine our Way Beyond
Good ambitions. They emphasised
the importance of focusing on positive
impact across our Way Beyond Good
targets and communications, and
supported our focus on increasing
positive impact in the Food+ action
area as part of our net positive
ambition.
See > pages 86-88 for more on
their views.
We are driving progress on recycling and
circularity, increasing uptake of our most
sustainable products and integrating sustainability
credentials in our marketing and sales materials.
SIG has continued to score well in recognised
ESG ratings (see > page 83) and we have raised
further finance linked to ESG performance
(see > page 89).
Our sustainability experts participated in
dedicated ESG investor conferences in order
to enhance awareness of SIG’s achievements
and strategy.
A major focus of our dialogue with investors in
2022 was the potential for growth through the
acquisitions we made during the year, including the
extension of our offering of the most sustainable
packaging solutions to a wider range of market
segments.
We communicate in this report how we are aligning
with the EU Taxonomy, the recommendations
of the TCFD and the TNFD, and other reporting
frameworks (see > pages 371-372).
We communicate our ethical supplier standards
and work with suppliers to source raw materials
from responsible sources. This year, we launched
a new Supplier Code of Conduct to clarify our
requirements and began rolling this out to new and
existing suppliers.
We also continued to engage with suppliers to
encourage them to pursue or maintain certification
to standards such as FSC™ and ASI on responsible
sourcing, and more of our aluminium foil suppliers
achieved ASI certification this year.
We also held top management level discussions
on emissions reduction plans with one of our
main liquid packaging board suppliers.
See > pages 135-140 for more on engagement
with suppliers in 2022.
We have set bold ambitions for 2025 and beyond.
Our new greenhouse gas reduction targets and
Net Zero commitment push us even further
on Climate+ (see > pages 93-104). These were
developed in line with the SBTi’s latest guidance
and in support of its Business Ambition for 1.5°C
and the UN’s Race to Zero.
We embarked on a major new partnership with
WWF Switzerland this year that will enhance
our positive impact on Forest+, and committed
to a series of actions as a member of its Forest
Forward programme (see > pages 105-108).
We also continued our partnership with Forum
for the Future to better understand SIG’s role in
the food value chain, and to define activities and
indicators on Food+ to help deliver more nutritious
food to people who need it most around the world
(see > pages 121-125).
We have built responsibility into our Corporate
Compass and key business processes, and have
a clear governance structure in place, including
for management of our most material issues. We
report in accordance with the Global Reporting
Initiative (GRI) Standards and obtain external
assurance for key data to enhance transparency.
Annual Report 2022 Appendix
Stakeholder engagement
375
Stakeholder
How we engage
Key topics and concerns
Our response
We use international protocols and standards in
the management of specific focus areas, and
we engage experts such as IFEU to conduct
independently reviewed ISO-conformant third-
party life-cycle assessments (LCAs) of our
packaging solutions. This year, IFEU conducted
LCAs of our new bag-in-box and pouch solutions
acquired through the acquisition of Scholle IPN
in 2022.
We also continued to collaborate with others
to drive the net positive agenda. In 2022, we
joined Forum for the Future’s new Regenerative
Investment Lab that brings together participants
from business, finance, academia and civil society
to catalyse progress towards a market system
that drives regenerative outcomes for people
and planet.
Through SHINE, we focus on developing ways to
measure positive impacts through “handprinting”.
SIG’s contribution as the first company to
complete a SHINE case study to demonstrate
avoided emissions – which was published in a
peer-reviewed journal – helped to inform a new
guide on the topic being developed by the World
Business Council for Sustainable Development.
SIG’s participation has also helped SHINE create
and disseminate research briefs that bring
handprinting methods to a wider audience.
Existing and emerging regulations feed into our
identification of material issues, and we address
topics relevant to public policy through the Way
Beyond Good action areas and enablers. See
relevant issue sections in the Way Beyond Good
chapter of SIG’s Annual Report for our response
to specific regulatory priorities.
We have continued to increase the positive
impact we have on communities through our Way
Beyond Good engagement programme and we
are enhancing our social impact through The Way
Beyond Good Foundation (see > page 162).
We are also extending recycling programmes
that bring additional social benefits by enabling
underprivileged communities to earn rewards
for collecting packaging for recycling and
supporting ethical working conditions for waste
workers in countries such as Brazil and Egypt
(see > pages 109-120).
Policymakers
and regulators
• Engagement through
relevant industry
associations
The range of topics covered by
regulators is broad. Hot topics
include responsible production,
sustainable consumption, recycling
and circular economy, pathway to
net zero greenhouse gas emissions,
human rights due diligence and
contributions to broader global
goals, such as the United Nations
Sustainable Development Goals.
Local
communities
around SIG
production
sites
• Way Beyond Good
engagement programme
Issues raised by communities are
generally locally specific.
• Family days and open
days at our sites
• Recycling initiatives
Annual Report 2022 Appendix
Contribution to the United Nations Sustainable Development Goals
376
Contribution to the United
Nations Sustainable
Development Goals
Governments, businesses and others must
all do their part to achieve the United Nations
Sustainable Development Goals (SDGs) for 2030.
We are determined to do ours.
WE SUPPORT
SIG supports the SDGs
We focus our support on the SDGs where we see opportunities for our business and
partnerships to make a meaningful contribution by supporting systemic change at scale.
These are closely aligned with the areas where we have the most significant impact (see
> pages 390-391) and we are driving progress through the Way Beyond Good action areas.
See graphic on > page 377 and a more detailed table on > pages 378-379.
This targeted approach – focusing on the biggest risks to people or the environment and the
greatest benefits our products and partnerships can have – is in line with the guidelines for
business reporting on the SDGs from the Global Reporting Initiative and the United Nations
Global Compact.
Annual Report 2022 Appendix
Contribution to the United Nations Sustainable Development Goals
377
-
Reduce the carbon
footprint of all our
packaging and pioneer
carbon negative
packaging concepts
-
By 2030, reduce our
GHG emissions in line
with 1.5º climate science
and take more carbon
from the atmosphere
than our value chain emits
-
Maintain 100% of the forest
area we source from and
partner to create, restore,
protect or improve manage-
ment of at least 650,000
additional hectares of forest
by 2030
-
Continue to ensure that
all our aseptic cartons
can carry the FSCTM label
and help our customers
effectively communicate
about it
-
Implement country-specific
roadmaps to increase
recycling of beverage
cartons globally and
increase average carton
recycling rates in
the EU to at least
70% by 2030
-
Make our cartons even
easier to recycle and
launch a new carton
that offers maximum
protection, and is
entirely made from
renewable materials
-
Increase the total
volume of nutritious
food and beverage
products brought to
consumers via our
packs by 50% by 2030
-
Continue to offer
our customers aseptic
carton filling machines
capable of delivering
industry-leading waste
rates of 0.5% or under
SUSTAINABLE INNOVATION & RESPONSIBLE CULTURE
We also contribute to several other SDGs through our Way Beyond Good ambitions for
society and the environment. For example:
• Our commitment to health, safety and fair labour practices for employees and people in
our supply chain (through responsible sourcing) aligns with SDG 8.
• By promoting the use of FSC™ certification, we are supporting progress towards 11 of the
SDGs (and 35 of the accompanying targets).¹
• By exploring ways to scale up our Cartons for Good project (see > page 125), we can
strengthen our support for additional global goals such as SDG 1 on poverty, SDG 3 on
promoting good health and wellbeing, and SDG 10 on reducing inequalities (as well as
SDGs 2, 12 and 17).
• Our methodology for measuring the impact of our community engagement programmes
considers their alignment with the full range of SDGs (see > pages 160-162).
1
Based on analysis by the Forest Stewardship Council™ in 2018.
Annual Report 2022 Appendix
Contribution to the United Nations Sustainable Development Goals
378
Targeted support for the SDGs
SDG
Most relevant SDG targets
where our action contributes1
The Way Beyond
Good action area Our progress
Food+
Food+
See > page 172 and
> pages 122-125
See > page 172 and
> pages 122-125
2.1 By 2030, end hunger and ensure access by
all people, in particular the poor and people in
vulnerable situations, including infants, to safe,
nutritious and sufficient food all year round
2.3 By 2030, double the agricultural productivity
and incomes of small-scale food producers,
in particular women, indigenous people, family
farmers, pastoralists and fishers, including through
secure and equal access to land, other productive
resources and inputs, knowledge, financial
services, markets and opportunities for value
addition and non-farm employment
2.4 By 2030, ensure sustainable food production
systems and implement resilient agricultural
practices that increase productivity and
production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate
change, extreme weather, drought, flooding and
other disasters and that progressively improve
land and soil quality
Climate+
Forest+
Resource+
7.2 By 2030, increase substantially the share of
renewable energy in the global energy mix
Climate+
9.4 By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, with
increased resource-use efficiency and greater
adoption of clean and environmentally sound
technologies and industrial processes, with all
countries taking action in accordance with their
respective capabilities
9.5 Enhance scientific research, upgrade the
technological capabilities of industrial sectors in
all countries, in particular developing countries,
including, by 2030, encouraging innovation and
substantially increasing the number of research
and development workers per 1 million people
and public and private research and development
spending
12.1 Implement the 10-year framework of
programmes on sustainable consumption and
production, all countries taking action, with
developed countries taking the lead, taking into
account the development and capabilities of
developing countries
12.2 By 2030, achieve the sustainable
management and efficient use of natural
resources
12.3 By 2030, halve per capita global food
waste at the retail and consumer levels and
reduce food losses along production and supply
chains, including post-harvest losses
12.5 By 2030, substantially reduce waste
generation through prevention, reduction,
recycling and reuse
Resource+
Climate+
Forest+
Resource+
Food+
Climate+
Resource+
Food+
Resource+
Forest+
Resource+
Forest+
Food+
Resource+
See > page 170 and
> pages 97-104
See > page 171 and
> pages 106-108
See > pages
171-172 and
> pages 113-121
See > page 170 and
> pages 97-104
See > pages
171-172 and
> pages 113-121
See > page 170 and
> pages 97-104
See > page 171 and
> pages 106-108
See > pages
171-172 and
> pages 113-121
See > page 172 and
> pages 122-125
See > page 170 and
> pages 97-104
See > pages
171-172 and
> pages 113-121
See > page 172 and
> pages 122-125
See > pages
171-172 and
> pages 113-121
See > page 171 and
> pages 106-108
See > pages
171-172 and
> pages 113-121
See > page 171 and
> pages 106-108
See > page 172 and
> pages 122-125
See > pages
171-172 and
> pages 113-121
Annual Report 2022
Appendix
Contribution to the United Nations Sustainable Development Goals
379
SDG
Most relevant SDG targets where our
action contributes1
The Way Beyond
Good action area Our progress
12.6 Encourage companies, especially large and
transnational companies, to adopt sustainable
practices and to integrate sustainability
information into their reporting cycle
12.7 Promote public procurement practices
that are sustainable, in accordance with
national policies and priorities
13.1 Strengthen resilience and adaptive
capacity to climate-related hazards and
natural disasters in all countries
13.3 Improve education, awareness-raising and
human and institutional capacity on climate
change mitigation, adaptation, impact reduction
and early warning
14.1 By 2025, prevent and significantly reduce
marine pollution of all kinds, in particular from
land-based activities, including marine debris and
nutrient pollution
15.2 By 2020, promote the implementation of
sustainable management of all types of forests,
halt deforestation, restore degraded forests
and substantially increase afforestation and
reforestation globally
15.7 Take urgent action to end poaching and
trafficking of protected species of flora and
fauna and address both demand and supply of
illegal wildlife products
17.16 Enhance the global partnership for
sustainable development, complemented by
multi-stakeholder partnerships that mobilise
and share knowledge, expertise, technology and
financial resources, to support the achievement
of the sustainable development goals in all
countries, in particular developing countries
Forest+
See > page 171 and
> pages 106-108
Forest+
Climate+
Forest+
Climate+
See > page 171 and
> pages 106-108
See > page 170 and
> pages 97-104
See > page 171 and
> pages 106-108
See > page 170 and
> pages 97-104
Resource+
See > pages
171-172 and
> pages 113-121
Forest+
See > page 171 and
> pages 106-108
Forest+
See > page 171 and
> pages 106-108
Climate+
Food+
Resource+
Forest+
See > page 170 and
> pages 97-104
See > page 172 and
> pages 122-125
See > pages
171-172 and
> pages 113-121
See > page 171 and
> pages 106-108
1
Relevant targets identified through an analysis based on the methodology outlined in the UNGC/GRI publication Business Reporting
on the SDGs: An Analysis of Goals and Targets.
Annual Report 2022
Appendix
Greenhouse gas emissions basis for reporting
380
Greenhouse gas emissions
basis for reporting
Our greenhouse gas (GHG) emissions are reported in accordance with the GHG Protocol.
Accurate and transparent GHG reporting is also an essential prerequisite to meet the criteria
of the Science Based Targets initiative (SBTi).
This section provides a detailed description of GHG reporting boundaries and other relevant
aspects, including a breakdown of emissions by reporting category. Additional information
related to our management approach and performance targets is included in the Climate+
section (see > pages 93-104) and the Global Reporting Initiative (GRI) content index (see
> pages 392-394).
Reporting boundaries
The reporting boundary for our Scope 1, 2 and 3 GHG emissions covers all production
facilities under SIG Group’s operational control, excluding smaller production units such
as our special filling machine parts plants in Aachen (Germany), joint ventures and offices
(unless they are directly attached to a production facility).
In line with the GHG Protocol, we have restated our GHG emissions data for SIG Group for
previous years following significant changes to the business. We applied our recalculation
procedure, which we developed and tested for previous acquisitions, to the two new
acquisitions in 2022: our bag-in-box and spouted pouch business (formerly Scholle IPN) and
our chilled carton business (acquired from Evergreen Asia).
Data added to our GHG inventory in relation to the bag-in-box and spouted pouch business
includes all production facilities (except the small equipment facility in Pune, India) and
excludes office locations. Data added in relation to the chilled carton business includes all
related operations.
We have integrated data related to these businesses into our reporting on Scope 1 and 2
and all categories of Scope 3 for 2022, 2021 and 2020, which is the baseline year for the
new GHG reduction targets for SIG Group (including the newly acquired businesses) that will
replace our existing science-based targets once approved by the SBTi.
This year, we focused our initial data collection for these new businesses on emissions
associated with the related operations, supply chain and filling machines, as well as end-of-
life treatment for the relevant types of packaging. We established our inventory based on
2021 data, which also supported estimations of GHG emissions for 2020, and development
of more accurate reporting for 2022. Some categories cannot be supported with measured
activity data and, in these cases, we estimated emissions based on spend or assumptions
based on equivalence with other operations or technologies where more accurate data is
available. Additional sources that informed our data collection and materiality assessment
of relevant GHG categories include: our internal life-cycle assessment (LCA) tool, following
the ISO 14040 and 14044 international standards and the LCA studies for bag-in-box and
spouted pouch which we commissioned this year (see > page 22).
Annual Report 2022 Appendix
Greenhouse gas emissions basis for reporting
381
In addition, for added transparency during this transition year, we have continued to
separately report GHG emissions for our aseptic carton business – the part of the business
that was fully owned at the start of 2022 – to show our year-on-year performance against
our existing science-based targets, which exclude our newly acquired business, from the
baseline year of 2016.
Inventory boundaries
The inventory boundaries of SIG’s GHG accounting were chosen taking into consideration
all the relevant GHG Protocol standards.
SIG’s GHG accounting includes all six GHGs covered by the Kyoto Protocol as required
by the GHG Protocol: carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF₆) and
nitrogen trifluoride (NF₃). These are typically included in the emissions factors we use and
converted using IPCC 2013 conversion factors.
Scope 2 emissions from purchased electricity are reported using a market-based approach.
We also report Scope 2 emissions according to the location-based approach using grid
average emissions factors for each country (see > pages 99-100).
Scope 1 and 2 data are collected and reported for the production of sleeves and spouts
(assembly, offices and training centers are excluded due to their limited relevance for
Scope 1 and 2).
Scope 1 and 2 emissions related to our aseptic carton business
(thousand tonnes of CO₂ equivalent)
Scope 1
Scope 2
(market based)
Total
2016
2017
2018
2019
2020
29.1
84.0
38.5
28.6
34.4
32.5
34.5
27.9
31.1
22.9
2021
29.8
0
2022
25.1
0
113.1
67.1
66.9
62.3
53.9
29.8
25.1
Scope 1 and 2 emissions for SIG Group1
(thousand tonnes of CO₂ equivalent)
Scope 1
Scope 2
(market based)
Total
2020
2021
2022
32.4
64.5
31.3
41.0
26.6
48.8
96.8
72.3
75.4
1
Includes our new bag-in-box, spouted pouch and chilled carton businesses, which joined SIG Group through the acquisitions of
Scholle IPN and Evergreen Asia in 2022.
Annual Report 2022 Appendix
Greenhouse gas emissions basis for reporting
382
Our data collection and calculation procedures for Scope 3 follow a materiality assessment
for each category. As the newly acquired bag-in-box and spouted pouch business and
chilled carton business share a similar business model and value chain to our existing
aseptic carton business, we were able to allocate all activities to the same categories that
we identified as material for our aseptic carton business in previous years.
For emissions related to recycling, we use the A 0:100 allocation as recommended by the
GHG Protocol, which means that recycled materials such as production waste (category 5)
or used products (category 12) are cut off at the sorting plant/next processing step. The
same applies to waste that is incinerated for energy recovery. Biogenic carbon emissions
can be released from the liquid packaging board or laminated carton board used in our
carton packs, depending on their treatment after use, and these are reported separately.
We use emissions factors to convert activity data into GHG emissions in all cases where we
do not receive GHG emissions by third parties (such as travel agents). The emissions factors
are checked for completeness and accuracy annually and are updated regularly. The
sources of emissions factors that we use are authorities such as the International Energy
Agency (IEA) or the UK Department for Environmental & Rural Affairs (DEFRA), life-cycle
inventory databases such as ecoinvent, life-cycle inventory information that is used in our
life-cycle assessment tool and average datasets from industry associations. For category 1,
we collect supplier-specific emissions factors for A-materials where possible, to increase
the share of supplier-specific data (see below).
The following categories are included in SIG’s Scope 3 emissions.1 For added transparency
in this year of transition, we have set out information on our aseptic carton business and
our newly acquired bag-in-box and spouted pouch business and chilled carton business
separately where relevant.
Category 1: purchased goods and services
Category 1 emissions account for the largest share of value chain GHG emissions for our
aseptic carton business. This category includes all materials used to produce and ship our
aseptic cartons (including closures and straws) and the materials used to manufacture our
filling machines. Services, information and communications technology and items such as
office equipment are excluded as they represent a very small share in this category.
This category also represents the largest share of value chain emissions for both our
newly acquired businesses. For the bag-in-box and spouted pouch business, this includes
mainly polymers – for film, bag-in-box, pouch and fitment production – as well as materials
to manufacture filling machines. For the chilled carton business, it includes materials to
produce beverage cartons and manufacture filling machines.
We aim to increase the share of specific emissions factors from suppliers. In 2022, 70%
of reported Category 1 Scope 3 emissions for our aseptic carton business are based on
specific data (up from 68% in 2021). The share of specific data for SIG Group is 59% this
year, with additional suppliers related to our newly acquired businesses to be added to our
data collection programme in 2023.
1
In addition, Category 10 (processing of sold products) is included within Category 11 (use of sold products). Other categories
are excluded because they are either not material or not applicable to our business: Category 2 (capital goods), Category 7
(employee commuting), Category 8 (upstream leased assets), Category 13 (downstream leased assets), Category 14
(franchises), Category 15 (investments).
Annual Report 2022 Appendix
Greenhouse gas emissions basis for reporting
383
Category 3: fuel and energy-related activities
Category 3 covers the upstream emissions related to purchased electricity and energy
carriers at the production facilities that are reported under Scope 1 and 2. Purchased
electricity is reported under Scope 2. All other energy carriers, including small amounts of
diesel purchased to fuel our own trucks and cars, are reported under Scope 1.
For our newly acquired businesses, we use data related to energy use and energy sourcing
which is integrated into our Group environment, health and safety (EHS) dashboard.
Category 4: upstream transportation and distribution
Category 4 covers all transportation activities for materials delivered to our production
plants and all purchased outbound transport. In some cases, customers arrange this
transport themselves and the resulting emissions are reported in Category 9 accordingly.
For our aseptic carton business, packs are shipped as empty sleeves to SIG customers. This
is usually managed by our Supply Chain Management (SCM) function. Deliveries other than
packed sleeves (straws, closures, machines and spare parts) do not contribute significantly
to this category and are not reported. Inter-company transportation is considered to be
negligible.
For our newly acquired businesses, we have not yet established an inventory of the
transportation activities related to raw material shipments. Instead, we use best available
estimates informed by the transportation data that is available for the main commodities
for our aseptic carton business.
For our bag-in-box and spouted pouch business, we exclude some limited inter-company
transportation from our reporting since the contribution to Category 4 is small. For the
shipment of relevant products – bag-in-box, pouches and films – to customers, we estimate
distances for overland transportation and use a conservative assumption for sea freight.
Based on our materiality analysis, we also include transportation of fitments. In most cases,
customers arrange this transport themselves and the resulting emissions are reported
accordingly in Category 9. Filling machines and equipment are excluded since they do not
significantly contribute to this category.
For our chilled carton business, we calculate emissions from transport of materials to our
production plants and transport of our sleeves to customers based on weight, average
transport distances and means of transportation (such as road, rail or sea). Filling machines
and closures are excluded since they do not significantly contribute to this category.
Category 5: waste generated in operations
Category 5 includes emissions related to recycling, thermal treatment or landfill of waste
from our operations (measured as non-product output) and hazardous waste.
For our aseptic carton business, all production wastes (>99%) undergo further treatment
and recycling as they are well sorted. Emissions related to the transportation of waste
material from our plants to waste processing facilities are included.
Annual Report 2022 Appendix
Greenhouse gas emissions basis for reporting
384
For our bag-in-box and spouted pouch business, we have started to integrate internal
reporting on waste into our EHS dashboard. Based on our initial classification of non-product
outputs of our aseptic carton business, we have determined an average waste volume that
is considered to undergo further treatment.
For our chilled carton business, non-product output in waste categories and treatments
paths is available for all three locations and used in our calculations.
Category 6: business travel
Category 6 includes flights, public transport and the use of rental cars for business travel.
Data on business travel is well documented in Europe but less so in other regions. Therefore,
the number of employees per region is used as a basis for extrapolation. Flights are relatively
well documented and account for around 99% of emissions from business travel for our
aseptic carton business and 97% for SIG Group.
For our newly acquired businesses, we have collected data on business travel and used
the approach we already established for our aseptic carton business to report reasonable
estimates for all flights based on number of employees.
Category 9: downstream transportation and distribution
For our aseptic carton business, Category 9 covers transportation of our packs from our
plants to customers’ facilities that is not purchased by us, the distribution of filled packs
from customers’ facilities to retailers, and onward transportation from retailers to end
consumers.
For our spouted pouch and bag-in-box business, we have used a similar model for both
food service and household applications.
For the chilled carton business, self-pickups are covered with specific data and we use the
same approach as for our aseptic carton business for the distribution of filled packs from
customers’ facilities to retailers, and onward transportation from retailers to end consumers.
As for our aseptic business, we have excluded secondary and tertiary packaging for packed
products since this relates predominantly to the product and not its primary packaging.
Category 11: use of sold products
For our aseptic carton business, Category 11 covers the use of SIG’s filling machines and
applicators to mount closures on the filled cartons, which occurs at customers’ facilities. All
new and refurbished filling machines that are manufactured and sold for the reporting year
are characterised by average electricity demand and the need for pressurised air, steam
and hydrogen peroxide for the estimated lifetime capacity of the machine/device using the
emissions factors of the reporting year.
Machines sold to customers with a publicly available RE100 or Science Based Target
initiative 1.5°C pledge are subtracted from the inventory for the difference of the lifetime
and the customer’s target year for achieving 100% renewable electricity. Emissions from
the use phase of our cartons relate primarily to the food products inside the cartons and are
excluded. Filling machines for our aseptic cartons that are installed in SIG service centres
for demonstration purposes are not included.
Annual Report 2022 Appendix
Greenhouse gas emissions basis for reporting
385
For our bag-in-box and spouted pouch business, we provide filling machines for bag-in-
box packaging that are used in retail, institutional food service and industrial channels.
These machines fill pre-made bag-in-box packaging which already includes spouts and
fitments when it arrives at a customer’s filling location. We also provide horizontal form-
fill-seal equipment for spouted pouches. These machines combine film and fitments and
fill product in a single machine at a customer’s manufacturing site. For both these types of
machine, average consumption data has been used to approximate lifetime emissions.
The machines used for the chilled carton business are also included in the inventory.
For both newly acquired businesses, we take the same approach as for our aseptic carton
filling machines by reporting the lifetime emissions relating to electrical energy and utility
demand and include customer commitments on energy sourcing for the reporting year.
Category 12: end-of-life treatment of sold products
For our aseptic carton business, used beverage cartons usually end up in household waste
streams or recycling schemes, which both vary locally. For each country that SIG cartons are
shipped to, we compile data covering recycling rates, landfill rates (managed or unmanaged)
and incineration rates (with or without energy recovery). The amount of waste is allocated
to different forms of treatment based on the weight of delivered packages and spouts
per country and the rates for the respective country. Biogenic greenhouse gas emissions
related to the different end-of-life treatments for the liquid packaging board in our cartons
are determined and reported separately.
For our chilled carton business, where this also holds true, we use the same end-of-life
model as for our aseptic carton business.
For our bag-in-box and spouted pouch business, we use scenarios based on our household
waste model as a conservative proxy for industrial and food service applications to
estimate emissions from end-of-life treatment where we cannot assume household waste
is the endpoint. For semi-manufactured products (films and fitments), we also apply our
household model since we consider this the more conservative estimation.
SIG filling machines are generally in use for decades and used filling machines are mainly
refurbished or recycled, so their contribution to this category is considered to be negligible.
The same holds true for the machines for our newly acquired businesses.
Annual Report 2022 Appendix
Greenhouse gas emissions basis for reporting
386
Scope 3 emissions for our aseptic carton business by category (tonnes CO₂ equivalent)
Category
2016
2017
2018
2019
2020
2021
2022
1 Purchased goods and services
996,338
904,078
959,285
992,411
999,590
1,025,002
1,053,441
3 Fuel and energy-related activities
4
Upstream transportation
and distribution
5 Waste generated in operations
6 Business travel
9
Downstream transportation
and distribution
26,380
98,343
545
10,698
57,774
8,149
7,537
7,531
11,970
7,444
6,275
93,792
95,628
103,502
126,297
120,945
104,790
570
10,884
57,260
564
17,175
54,675
581
18,457
59,289
584
7,678
672
7,037
655
6,425
50,782
52,426
52,816
11 Use of sold products
131,395
161,853
165,082
144,981
127,033
137,365
159,643
12 End-of-life treatment of
220,445
224,509
230,647
248,657
210,209
221,488
218,041
sold products
12 Biogenic carbon
138,463
139,515
146,076
158,663
137,813
145,361
141,825
Scope 3 emissions for SIG Group1 by category (tonnes CO₂ equivalent)
Category
1 Purchased goods and services
3 Fuel and energy-related activities
4
Upstream transportation
and distribution
5 Waste generated in operations
6 Business travel
9
Downstream transportation
and distribution
11 Use of sold products
12 End-of-life treatment of
sold products
12 Biogenic carbon
2020
2021
2022
1,181,379
1,217,314
1,249,079
28,298
24,597
23,541
139,550
135,083
119,240
911
8,128
1,028
7,478
1,055
6,851
64,990
65,396
70,061
174,646
180,442
192,680
265,813
270,522
285,002
153,039
161,340
154,740
1
Includes our new bag-in-box, spouted pouch and chilled carton businesses, which joined SIG Group through the acquisitions of Scholle IPN and Evergreen Asia in 2022.
Annual Report 2022 Appendix
GRI content index
387
GRI content index
GRI 1: Foundation 2021
Statement of use
SIG Group AG has reported in accordance with the GRI Standards for the period of
January 1, 2022 to December 31, 2022.
GRI 1 used
GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)
None
GRI Standard
Disclosure
Information / Reference / Omission
General disclosures
GRI 2:
General Disclosures
2021
The organization and its reporting practices
2-1 Organizational details
2-2 Entities included in the
organization’s sustainability
reporting
• Legal name: SIG Group AG
• Nature of ownership / legal form: Publicly listed company limited by shares
• Headquarters: Neuhausen, Canton of Schaffhausen, Switzerland
• Countries of operation: Please see > pages 303-306.
Unless otherwise stated, this GRI report covers all operations globally that were
fully owned by SIG at the beginning of financial year 2022. The report excludes
the Scholle IPN business and the Asia business we acquired from Evergreen, both
of which became part of SIG’s group of companies midway through financial
year 2022. The business in scope of this report is also referred to as “aseptic
carton business“. The Company has audited its financial statements (please see
> pages 337-342 regarding the differences of the entities in scope of this report
and the consolidated financial statements, respectively).
2-3 Reporting period,
frequency and contact point
Since reporting year 2021, the corporate responsibility reporting is published once
a year as part of SIG’s Annual Report. The reporting period is January 1, 2022 to
December 31, 2022, corresponding to the Company’s financial year.
2-4 Restatements of
information
2-5 External assurance
GRI 2:
General Disclosures
2021
Activities and workers
2-6 Activities, value chain and
other business relationships
Publication date: February 28, 2023
Contact point for questions about this report:
Attn Ingrid McMahon, Laufengasse 18, 8212 Neuhausen am Rheinfall, Switzerland,
+41 52 543 1224, Ingrid.mcmahon@sig.biz
The structure of our GRI reporting has been amended to comply with the GRI Universal
Standards 2021 and also covers the GRI Topic Standards where relevant. Due to
changes of the business and several acquisitions in 2022, some of the data has been
restated. Where this is the case, it is explicitly mentioned.
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), an
independent audit firm, has provided limited assurance on the data points related
to our key performance indicators (listed on > pages 167-169). See assurance
statement on > pages 411-413. Environmental KPIs that include our new bag-in-
box and spouted pouch business (formerly Scholle IPN) and our new chilled carton
business (acquired from Evergreen Asia) – both acquired mid-way through 2022 -
are not assured.
PricewaterhouseCoopers AG, Switzerland is the auditor for the Group’s financial
reports.
SIG seeks external assurance from independent assurance providers (see above).
At SIG the assurance process is steered by the Director Group Corporate
Responsibility, a direct report to the CEO. The external assurance process involves
many SIG experts from different business functions and locations providing data,
documents and explanations as requested by the assurance provider.
The corporate responsibility reporting is approved by all members of SIGs Group
Executive Board. Ultimately the Board of Directors' (BoD) Nomination & Governance
Committee (NGC) reviews and recommends to the BoD the Company’s public
reporting on ESG.
Our primary products and services are food and beverage carton packages and
closures, filling machines and packaging machines (downstream), and technical
services including spare parts. We combine and apply various products and
services in integrated customer solutions. Please see > pages 35-36 for information
on our business. Our supply chain business relationships are described on
> pages 135-136. Through the acquisition of Scholle IPN, our value chain has been
expanded. Please refer to > pages 9-23.
2-7 Employees
Please refer to table on > page 152.
Scholle IPN is not included in the workforce data, but Evergreen is.
Annual Report 2022 Appendix
GRI content index
388
GRI Standard
Disclosure
Information / Reference / Omission
GRI 2:
General Disclosures
2021
2-8 Workers who are
not employees
Omission: Information unavailable/incomplete
There is currently no data available on workers who are not employees. We are in
the process of including these workers in our human resources reporting by 2025.
GRI 2:
General Disclosures
2021
Governance
2-9 Governance structure
and composition
2-10 Nomination and selection
of the highest governance body
Please see > pages 189-202 and > pages 6–7 in the Corporate Governance Policy.
The Nomination and Governance Committee (NGC) defines and reviews annually
with the Board the applicable skillset and characteristics required to serve on the
Board in the context of current operations. They consider a variety of aspects
such as diversity of viewpoints, background, gender, experience and other
demographics.
Please see > pages 194-196 and > pages 6-7 in the Corporate Governance Policy.
2-11 Chair of the highest
governance body
The chair of the Board of Directors is not a member of the executive management
of the organisation.
2-12 Role of the highest
governance body in overseeing
the management of impacts
2-13 Delegation of
responsibility for managing
impacts
2-14 Role of the highest
governance body in
sustainability reporting
Please refer to > pages 84-85, 88-89 to read about the role of senior executives
in the management of sustainable development and potential impacts on the
economy, environment and people. The Responsibility Steering Group (RSG)
Director reports to the Nomination and Governance Committee (NGC) and to the
Compensation Committee (CC). The Board of Directors (BoD) reviews and approves
the ESG strategy and signs off the global responsibility report and the ESG manual.
Please refer to > pages 84-85. The Group Executive Board reports to the Board of
Directors at least every three months as described on > page 198.
The NGC advises the Board of Directors on corporate responsibility matters.
It reviews the Company’s sustainability report including the material topics, makes
suggestions to the Board of Directors and signs off the report on behalf of the
Board of Directors.
The Board of Directors also reviews and approves the ESG manual.
2-15 Conflicts of interest
Please refer to > pages 186; 193; 204-205.
2-16 Communication of
critical concerns
2-17 Collective knowledge of
the highest governance body
2-18 Evaluation of the
performance of the highest
governance body
Please refer to > pages 195–196.
If there are critical concerns, they are communicated to the Board of Directors,
our highest governance body at its quarterly meetings or on an ad-hoc basis,
if required.
During the reporting period there were no concerns considered as critical.
The Board of Directors receives regular updates regarding sustainability initiatives
and their progress. In its September strategy session, the Board of Directors
reviews with the Group Corporate Responsibility Director the ESG strategy against
the backdrop of latest developments in that field. To further advance the collective
knowledge of the Board of Directors, its members are encouraged to participate in
a voluntary tutorial regarding sustainability matters. These tutorials take place on
an annual basis.
Please refer to the Organizational Regulations published on our website:
Organizational Regulations (sig.biz) section 2.7 as well as to > page 197
2-19 Remuneration policies
Please see > pages 215-235.
2-20 Process to determine
remuneration
2-21 Annual total
compensation ratio
Please see > pages 215-235. Our shareholders vote on an advisory basis on our
compensation report at our annual general meetings. In 2022, the compensation
report 2021 was approved by 82.2% of the votes. The compensation report 2022
will be approved in April 2023 at the next annual general meeting.
At our 2022 annual general meeting our shareholders also approved the maximum
aggregate remuneration of our Board of Directors for the next Board term (for the
period from the annual general meeting 2022 until the annual general meeting
2023) with 87.67% of the votes, and remuneration of our Group Executive Board
for financial year 2023 with 88.76% of the votes. All voting results are publicly
available on our website: please see > pages 8-10 of the Minutes of the ordinary
general meeting of shareholders.
Omission: Information unavailable/incomplete
There is currently not enough data available to calculate the compensation ratios
accurately on a global level. A globally integrated human resources system is planned
to be implemented over the coming years. We will collect more data over the course
of next year and adapt the local human resources systems accordingly in order to
be able to move to a global human resources reporting system as soon as possible.
The expected timeline to get such a system in place is currently by 2025.
Annual Report 2022 Appendix
GRI content index
389
GRI Standard
Disclosure
Information / Reference / Omission
GRI 2:
General Disclosures
2021
Strategy, policies and practices
2-22 Statement on sustainable
development strategy
2-23 Policy commitments
2-24 Embedding policy
commitments
2-25 Processes to remediate
negative impacts
Please refer to the statement of the CEO on > pages 33-34.
Our public policy commitments:
• Overview of SIG's ESG Commitments
• Corporate Governance Policy
• Environment, Health and Safety Policy (EHS)
• Responsible Sourcing Policy
• Human Rights, Labour and Community Engagement Policy
• Product Stewardship Policy
• Product Safety and Quality Policy
• Cybersecurity and Information Privacy Protection Policy
The policies include due diligence processes and references to authoritative
intergovernmental instruments. It is stipulated in the policies that we apply a
precautionary principle in our processes. In addition, we conducted a detailed due
diligence process in 2022 on human rights. Please refer to our public ESG policies
mentioned above for more details.
Approval procedures are dependent on the content and scope of application.
The SIG Code of Conduct, for example, was approved by the Board of Directors.
The policies explain the overall principles of SIG Group (general commitments
and guiding principles) and are owned by one of the following groups/functions:
Group Executive Board, GEB Direct Reports, Vice Presidents and Directors.
Policies are valid for the entire SIG Group.
Our policies are built on the following values: leadership, accountability, quality,
integrity, performance, pride, collaboration and feedback.
These policies are rolled out also to businesses we have acquired.
Please refer to our SIG Code of Conduct.
Please refer to our SIG Code of Conduct section 15. We design our business
processes in a way to avoid negative impacts and in compliance with applicable
laws and regulations. As part of the global community, SIG is committed to
engaging responsibly and transparently with all relevant and affected stakeholders
in developing, managing and communicating on governance topics, standards,
processes and activities, including by developing channels to enable them to voice
their complaints and grievances. We foster engagement with a wide range of
stakeholders, including customers, international organisations, shareholders and
other financial market participants, local communities, and other partners from our
and other industries.
Issues or concerns may be reported through any available channel, including
supervisors and managers, representatives of Human Resources, Legal &
Compliance, Internal Audit or the SIG Integrity & Compliance Hotline. The hotline
allows reports to be made via a toll-free phone number in the local language and
on an anonymous basis (except where this is prohibited by law) if so requested by
the reporting director, officer or employee, and also by email.
The grievance mechanism is communicated in Code of Conduct and other
trainings and advertised through posters on site.
The effectiveness of the grievance mechanism is regularly assessed, including
by statistical analysis of the reports and other controls. The organisation is open to
stakeholder feedback and suggestions to improve the grievance mechanism.
Negative impacts are remediated as appropriate.
2-26 Mechanisms for seeking
advice and raising concerns
Individuals have various means to seek advice and raise concerns, including in
shareholder meetings, in townhalls and team meetings or during audits on-site.
2-27 Compliance with
laws and regulations
Issues or concerns may be reported, and advice can be sought, through any
available channel, including supervisors and managers, representatives of Human
Resources, Legal & Compliance, Internal Audit or the SIG Integrity & Compliance
Hotline. The hotline allows reports to be made via a toll-free phone number in the
local language and on an anonymous basis (except where this is prohibited by law)
if so, requested by the reporting director, officer or employee, and also by email.
Training programmes provide additional guidance where appropriate.
We have not identified cases of significant non-compliances with applicable laws
and regulations during the reporting period, including no cases in which monetary
fines were incurred.
We have determined significant instances by reference to a value exceeding
EUR 20 million, in line with the materiality threshold applied in connection with our
consolidated financial statements 2022.
Annual Report 2022 Appendix
GRI content index
390
GRI Standard
Disclosure
Information / Reference / Omission
2-28 Membership
associations
GRI 2:
General Disclosures
2021
Material topics
GRI 3:
Material Topics
2021
Stakeholder engagement
2-29 Approach to
stakeholder engagement
2-30 Collective
bargaining agreements
3-1 Process to determine
material topics
3-2 List of material topics
SIG is a member of various industry associations, alliances and initiatives.
Key organisations include: AIM-PROGRESS; the Alliance for Beverage Cartons
and the Environment (ACE); the Aluminium Stewardship Initiative (ASI); the
Coalition of Action on Plastic Waste (a coalition of leading companies from
within The Consumer Goods Forum); The Consumer Goods Forum; the European
Bioplastics Association; the European Organisation for Packaging and the
Environment (EUROPEN); EXTR:ACT; the Forest Stewardship Council™ (FSC™)
International; 4evergreen; the Global Recycling Alliance for Beverage Cartons
and the Environment (GRACE); SHINE (Sustainability and Health Initiative for
NetPositive Enterprise).
In addition, SIG is a member of numerous national alliances and initiatives in our
core markets. Please see > pages 116-118.
Please see > pages 373-375.
Please see > page 144.
Taking into consideration the update of the GRI Universal Standards in 2021,
we redefined our material topics according to the new GRI Standards in 2022.
The scope of the assessment included the business of Scholle IPN through peer
analysis, supplier interviews and a validation by Scholle IPN after the acquisition.
Evergreen’s business is covered by the topics relevant for the aseptic carton due
to the very similar business and value chains. At the beginning of the process, a list
of potential material topics was generated. This topic longlist included generally
relevant topics from a sustainability perspective as well as topics arising from
SIG’s business context.
In a second step, the impacts on the economy, environment and people, including
impacts on their human rights for each of these topics was evaluated along
the whole value chain (upstream, own operations and downstream). Positive
and negative impacts were thus considered over the short, medium and long
term. All topics were evaluated for all three steps using the criteria scale, scope,
irremediability and likelihood, and were prioritised accordingly. The analysis looked
at the net impacts, taking into consideration the actions we have in place to
mitigate the gross impacts. The evaluation was informed by internal and external
sources and documents, such as market studies, industry reports and expert
opinions. This led to a preliminary ranking of topics. As there is not yet a specific
sector standard available from GRI, industry-specific impacts were identified from
sector reports, rating reports and the above-mentioned sources. The impacts on
products and geographic locations were identified through internal heat maps,
interviews, peer analysis, and an analysis performed by an external sustainability
consultant.
In order to conduct a double materiality assessment, the next step was an analysis
of the risks and opportunities, which consisted of an evaluation of the results of a
desktop research including industry reports and studies, ESG ratings, regulatory
frameworks and requirements and SIG internal sources.
The findings of the two assessments were combined in the materiality matrix
and were validated by internal stakeholders representing various functions.
The validation process led to slight adaptions of the result and to the identification
of the 12 material topics.
The whole materiality assessment process was conducted and managed by an
external sustainability reporting consultancy in close collaboration with SIG’s
sustainability experts and cross-functional teams.
To validate the materiality matrix, seven different external stakeholder groups
and proxies were represented in a workshop, including employees, customers, the
scientific community, regulators/policymakers, the financial community, media
and NGOs.
Additional interviews were conducted with two key suppliers to validate the matrix.
The validation of the matrix resulted in a few minor amendments.
The following material topics were identified in the double materiality assessment
in Q2 2022:
• Climate change
• Waste and circular economy
• Biodiversity and forest ecosystems
• Sustainable raw materials
• Water
• Health, safety and wellbeing
Annual Report 2022 Appendix
GRI content index
391
GRI Standard
Disclosure
Information / Reference / Omission
• Diversity, equity and inclusion
• Employee satisfaction, development and working environment
• Responsible suppliers
• Human rights
• Product safety and integrity
• Innovation in products and services
Please see below an overview of the materiality matrix.
X CRR
)
s
e
i
t
i
n
u
t
r
o
p
p
o
d
n
a
s
k
s
i
r
(
i
t
c
a
p
m
d
r
a
w
n
I
Innovation in products and services
Waste and circular economy
Climate change
Biodiversity and forest ecosystems
Business
practices
Product safety
and integrity
Health, safety and wellbeing
Responsible suppliers
Sustainable raw materials
Economic
effects
Employee
satisfaction,
development
and working
environment
Human rights
Public policy
and advocacy
Diversity, equity
and inclusion
Water
Access to nutrition and hydration
Clean air
Anti-corruption
Community engagement
Privacy and data security
Not Material | Material
Outward impact (on environment, society and economy)
In the 2022 materiality assessment, the axes of the materiality matrix are different
compared to the last materiality assessment. In line with the methodology for the
materiality assessment as described in the GRI Universal Standards, the 2022 axes
consist of the outward impact perspective on the x-axis and the business risk and
opportunity perspective on the y-axis. In the previous assessment, the axes consisted
of influence on business success and importance to stakeholders. Therefore, some
changes occurred in the material topics:
The “human rights” topic was previously partially covered in the “fair labour practices”
topic, but the scope of the topic was extended to also encompass the “living
standards” subtopic.
As the impacts of the business were evaluated along the value chain, the impact on
the “water” topic, especially in the upstream value chain, was rated as significant and
overall the topic received more weight in the impact assessment and became material.
In the 2022 assessment, the previous “safe food supply” topic was split into the two
different aspects of “access to nutrition and hydration” and “product safety and
integrity”, of which only “product safety and integrity” remained material for SIG based
on the new methodology.
“Employee satisfaction”, “working hours and wages” and “talent development” were
merged into the material topic “employee satisfaction, development and working
environment”. Some aspects covered previously under “fair labour practices” (freely
chosen labour, protection of the child, freedom of association) as well as the newly
added “living standards” were summarised under the headline “human rights”.
In addition to these changes, some topics were renamed in the course of updating
the topic list.
Annual Report 2022
Appendix
GRI content index
392
Material topics
Material topics
This section provides additional information on how we manage our identified material topics. For each topic, related impacts on the
economy, on the environment and on people, including on their human rights, are presented. These can be positive or negative impacts.
For the management approaches, we considered the direct impacts of our business as well as the impacts of our industry.
The relevant key policies and commitments to manage the material topics are listed and responsibilities are explained. The publicly available
policies can be downloaded on our website. The actions to manage the impacts and the measurement of the effectiveness of these actions
are briefly described for each material topic. Most actions and the performance evaluation are described in more detail in the Way Beyond
Good section to which reference is made. The actions are related to our identified impacts and help to address and manage actual and
potential positive and negative impacts. In this GRI index, only the reoccurring measures are listed. In the Way Beyond Good chapters, the
activities of 2022 are reported. Information on how the goals and targets are set and how they take the sustainability context into account is
described on > pages 80-91 and in the performance sections of the Way Beyond Good chapters. In addition, the goals and targets are based
on the findings of our materiality assessment.
The last subsection in each material topic describes how the engagement with our stakeholders has led to the described actions and if
and how it has informed the effectiveness of these actions for that specific material topic. In addition, the engagement with the different
stakeholder groups is described on > pages 373-375.
GRI Standard
Disclosure
Information / Reference / Omission
Climate change
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• By conducting our business activity in a sustainable way, we positively contribute to
UN SDGs 2, 7, 12, 13 and 17. Please see > pages 376-379 for further information.
• Moreover, we consider our main economic activities, i.e. the manufacturing and
provision of filling machines and aseptic carton packs, to be eligible for making
a substantial contribution to the EU’s climate change mitigation goal. Please see
> pages 361-364.
• By offering a packaging solution with the lowest carbon footprint we offer our
customers and consumers options to further reduce their carbon footprint and
impact on climate change.
• By further innovating our packaging solution with eco-solutions that reduce the
product carbon footprint we create a benchmark within our industry and increase
competition around low carbon solutions with positive impacts on competition
and supply chains.
• A major positive impact on climate change can be achieved by informing
customers and consumers about the environmental performance of our solutions
via transparent and comprehensive studies to support informed choices on a
high level of accuracy.
• Climate change as a result of global warming is associated with a variety of
impacts on the environment and on people. This can be acute or chronic physical
impacts or related impacts through transition measures which may increase
inequalities amongst other aspects.
• Our contribution to climate change mainly relates to greenhouse gas (GHG)
emissions, which are primarily caused by our production (electricity and gas) and
by our value chain.
• A major share of our GHG emissions (roughly 80-90%) is created outside our
direct operational control through business partners and customers (sourcing,
production, transportation, operation of filling machines).
• Within our value chain the purchased goods have the biggest share of GHG
emissions. Thereof, most emissions come from raw materials (incl. aluminium foil,
polymers and paperboard).
• Sustainable forestry: as a buyer of board made from forest-based fibre, we have
influence on how wood is produced and how forests, as important carbon stocks
and sinks, are managed.
• The consequences of climate change have an impact on people and on their
human rights. The increase of extreme weather events and the deterioration
of ecosystems, for instance, can affect people’s health and restrict access to
resources which in turn impacts livelihoods.
Key policies and commitments:
• Overview of SIG’s ESG commitments
• Environment, Health and Safety Policy (EHS)
• Responsible Sourcing Policy
• Product Stewardship Policy
• Global R&D Process Handbook
• Standard Operating Procedure to improve used beverage carton collection and
recycling in regions
• Statement of intent: We aim to reduce the negative climate-related impacts
of our business and maximise climate positive outcomes by adhering to these
policies and by taking the actions described below. Our path to net zero is laid
out on > page 95.
Annual Report 2022 Appendix
GRI content index
393
GRI Standard
Disclosure
Information / Reference / Omission
• We are committed to tackling climate change through both mitigation and
adaptation solutions at every stage of our value chain in line with climate
science. We are supporting the transition to a lower carbon economy by reducing
the environmental impact of our company, our sourcing and our products.
Additionally, we aim to decouple emissions and production growth.
• To further address the exposure to climate-related risks, we strive to improve
climate resilience in our value chain, which is the basis for giving SIG a valuable
competitive advantage in the industry.
• In addition to our clear commitment to decarbonise our value chain we are
committed to increasing climate positive outcomes in our sector by the way we
source, design, produce and deliver our products.
• Our GHG targets are approved by the Science Based Targets Initiative, and we
are regularly reviewing the ambition and coherence with latest climate science.
• The main projects of our climate positive programme are managed by the
responsible business functions in close cooperation with Group Corporate
Responsibility. In addition, the material topic and the related impacts are
managed as follows:
• Raw materials and energy sourcing: Global Sourcing and Procurement
• Production: Operational Environment, Health and Safety (EHS)
• Product design: Global Technology with support from Global Marketing
• Filling machines: Global Research and Development and Global Engineering &
Application teams
• Logistics: Global Supply Chain Management
• Recycling: Local teams, overseen by Regional Presidents
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned departments. The level of responsibility in
the functional areas varies, but the global department heads have oversight.
Actions taken to manage the topic and our impacts:
• To lower our emissions, we have different actions in place. For example, we use
100% renewable electricity for the production of SIG aseptic carton packs, we
have energy conservation programmes in place and we contract physical power
purchase agreements (PPAs).
• Please refer to > pages 93-104 and to the stated policies to find detailed
information on actions taken to manage and minimise our above-mentioned
negative impacts on climate change and to enhance positive outcomes.
Tracking the effectiveness of our actions:
• To assess our direct impacts, our EHS dashboard measures energy usage and
emissions. The results are reported on a monthly basis.
• Quarterly review of raw materials and energy sourcing by the VP of Global
Sourcing and Procurement, who reports to the Group Executive Board
• Monthly review of production metrics by the Group Executive Board
• Internal audits and regular review of performance against the Way Beyond Good
targets by the Group Executive Board
• Quarterly review of Climate+ projects with the Chief Technology Officer
• Internal tracking and evaluation of our performance in external sustainability
assessments
• EcoVadis assessments and ASI Performance Standard certification related to
our performance monitoring and accounting practices
• Life-cycle assessments and carbon footprint calculations following ISO 14040
for our products. We compare eco-innovations and average products with
competing substrates.
• Please see > page 170 and > pages 97-104 on targets and evaluation of progress.
Engagement with our stakeholders:
• Based on feedback from inside and outside the organisation from customers,
suppliers, employees, investors and other stakeholders we continually review
and update the policies and standards. Please see > pages 373-375 for further
information.
GRI 305:
Emissions 2016
305-1 Direct (Scope 1)
GHG emissions
Please see > pages 99-100.
305-2 Energy indirect
(Scope 2) GHG emissions
Please see > pages 99-100.
305-3 Other indirect (Scope 3)
GHG emissions
Please see > pages 99-100.
305-4 GHG emissions
intensity
305-5 Reduction of
GHG emissions
Please see > page 102.
Please see > pages 380-386, > page 95 and > pages 97-104.
Annual Report 2022 Appendix
GRI content index
394
GRI Standard
Disclosure
Information / Reference / Omission
GRI 302:
Energy 2016
302-1 Energy consumption
within the organization
302-2 Energy consumption
outside of the organization
Please see > page 103.
Omission: Not applicable
The main energy demand in SIG’s value chain occurs upstream (category Goods
and Services). For this category, we relate activity data to factors from recognised
emission factor databases or relate to supplier-specific data – which contribute
more than 60% of the GHG emissions in this category. We work with suppliers to
decarbonise in line with our path to net zero – which typically includes the reduction
of energy demand and switch to renewable energy carriers. Thus, we consider the
collection of energy consumption data as not applicable as this is embedded in our
disclosures and management approach related to emissions (see > pages 380-386).
Energy consumption and energy carriers used are also typically confidential data
points in the supply chain and we do not therefore have access to this type of
information. Second largest energy consumption occurs during the operation of
the filling machines we manufacture. We work towards the reduction of energy
consumption for installed machines and for each new machine generation. As for
our supply chain we use a climate footprint metric to address this; thus we consider
energy use of our filling machines as both not applicable and confidential.
302-3 Energy intensity
Please see > page 103.
302-4 Reduction of energy
consumption
302-5 Reductions in energy
requirements of products and
services
GRI 201:
Economic
Performance
2016
201-2 Financial implications
and other risks and
opportunities due to climate
change
Waste and circular economy
Please see > page 103.
Omission: Information unavailable/incomplete
For our main product, the packaging, this disclosure is not applicable as the
packaging does not require energy during its use phase. For our filling machines,
installed at our customers' sites, this disclosure is applicable. We are currently
exploring how to compile the energy requirement data of our machines in the field
and to find a way to report on energy reduction progress starting in 2023. For our
filling machine innovations, we define energy reduction targets and verify them
during the prototype phase. Please see > page 130.
Please see > pages 366-369 for a description of identified climate-related risks and
opportunities, a description of the associated impact as well as our governance
and risk management approaches. Please see > page 75 on material financial
risks in relation to climate change. For climate change related opportunities we
have assessed the revenue implications of increased market shares of our eco-
innovations within our low carbon packaging portfolio. Transition and physical
risks are assessed within our corporate risk assessment. This also allows us to
contextualise the expenses to manage and mitigate identified risks for risks
occurring outside our organisation. Risks relating to our operations are integrated
into CAPEX planning.
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 2, 7, 12, 14 and 17. Please see
> pages 376-379 for further information on our contribution to the SDGs.
• Packaging prevents the occurrence of food waste during filling, storage and
consumption.
• Waste incineration with energy recovery delivers renewable energy in case
of treatment of used beverage cartons since they contain on average 75%
renewable raw materials.
• Positive impact through recycling in the supply chain, production and after
product use, as less waste is created.
• Along our entire value chain waste is produced. We contribute through the
generation of production waste. Also, our business partners generate waste in
their activities such as in the extraction of raw materials and in production.
• If not correctly disposed of at the end-consumer stage, product waste can have
negative impacts on the environment. At the same time valuable raw material
can be recovered if product waste is collected and recycled.
• Waste disposal in landfills may have negative impacts on biodiversity and soil
and may also cause air pollution.
• The human rights of people and local communities can be affected by
deterioration of livelihood and diseases caused by pollution through waste.
Annual Report 2022 Appendix
GRI content index
395
GRI Standard
Disclosure
Information / Reference / Omission
Key policies and commitments:
• Overview of SIG’s ESG commitments
• Environment, Health and Safety Policy (EHS)
• Product Stewardship Policy
• Design for Recycling Guideline
• Global R&D Process Handbook
• Standard Operating Procedure to improve used beverage carton collection and
recycling in regions
• Statement of intent: We aim to reduce the negative impacts of our business with
regard to waste and circular economy by respecting these policies and taking the
actions described below, and to maximise resource positive outcomes.
• We are committed to reducing materials waste, including from electronics.
To tackle environmental pollution, we minimise emissions to air, land and water
from our operations applying the BAT principle (Best Available Technology). We
are equally committed to keeping hazardous waste at a minimum by adhering
to legal regulations and to eliminating hazardous waste that is non-recyclable or
non-reusable to zero.
• Responsibility for managing the material topic:
• Global EHS department in close cooperation with the Global Sourcing and
Procurement department
• Design for recycling and recycled content is jointly led by Global Technology
and Global Marketing.
• Local teams are responsible for helping to drive progress on collection and
recycling, with oversight from Regional Presidents and guidance by globally
agreed regional and local collection and recycling strategies.
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned departments. The level of responsibility in
the functional areas varies, but the global department heads have oversight.
Actions taken to manage the topic and our impacts:
• To fulfil our waste responsibility, we manage our production waste and pollution
through our ISO 14001 (and ISO 50001) management system.
• We have regional strategies in place to manage the mentioned impacts directly
at our locations.
• LEED (Leadership in Energy and Environmental Design) certifications for new
production plants – construction waste management
• Sustainable sourcing to lower our waste rate. Please see > pages 398-399.
• By requiring FSC™ and ASI certifications, we make sure that waste is managed
efficiently at the sites of the extraction and production processes and reduced
to a minimum.
• Standard Operating Procedure for incident reporting: create EHS alert;
EHS responsible person at location needs to report back to Global EHS within six
weeks, provide a root cause analysis and, if possible, resolve the issue.
• We share positive impacts via our internal Best Practices app.
• Please see > pages 109-120 and to the stated policies to find detailed information
about the described actions taken as well as more actions to manage the above-
mentioned impacts.
Tracking the effectiveness of our actions:
• Monthly reporting of waste- and circularity-related KPIs to the Global EHS
department via the Environment, Health and Safety (EHS) dashboard.
• Grievance mechanisms are set up as part of local collection and recycling
partnerships or grievances can be reported through the Integrity & Compliance
Hotline.
• Lessons learned: local communication to key stakeholders and consideration of
incident reports in EHS meetings.
• Please see > pages 171-172 and > pages 113-120 on targets and evaluation
of progress.
Engagement with our stakeholders:
• Exchange with other companies in the industry, enhance dialogue among leading
companies and drive action: The Consumer Goods Forum’s Coalition of Action
on Plastic Waste and our EU platform EXTR:ACT.
• Customers can raise questions or concerns about waste and recycling via our
sales team.
• Exchange with suppliers on the AIM-PROGRESS platform
• Information on end-consumer behaviour and local recycling and consumption
habits from NGOs and local business partners
• Please see > pages 373-375 for further information on stakeholder engagement.
Annual Report 2022 Appendix
GRI content index
396
GRI Standard
Disclosure
Information / Reference / Omission
GRI 306:
Waste 2020
306-1 Waste generation
and significant waste-related
impacts
306-2 Management of
significant waste-related
impacts
• At supplier level, production waste is generated, and packaging material is used
which has to be disposed of.
• At our own production level, most waste is produced as offcuts of the raw
materials we use to manufacture our packs.
• Downstream waste from our packages is fully recyclable if collected.
• Filling machines are predominantly refurbished and most of the material can be
recycled at end of life.
• Supplier waste:
• We rely on FSC™/ASI Standards to manage the impacts on production waste
from aluminium foil or LBP production.
• Production waste:
• Robust life-cycle assessments (LCAs) carried out by independent experts using
the ISO 14040 international standard and critically reviewed by an independent
panel. These assessments provide the basis for actions by the management.
• Non-product output KPIs on EHS dashboard
• Weekly or daily tier meetings at local production sites
• The waste reporting process is described in the internal environmental manual.
• Annual limited assurance by PwC on environment data
• Post-consumer waste:
• Reporting progress on collection and recycling twice a year per country and
presentation to the Board of Directors
• Annual meeting once a year per country with the Country Head/President of
the Region/Cluster Head/Global Marketing and Local Sustainability Manager to
look at technology, recycling capacity, consumption habits, advocacy, raising
awareness and partnerships
• Going Circular roadmaps in place for key markets
• Quarterly review of progress in Climate Positive programme.
Please see > page 393.
• cyclos-HTP recyclability certificates for our products
Own disclosure
306-3 Waste generated
Please see > pages 119-120.
306-4 Waste diverted
from disposal
306-5 Waste directed to
disposal
Waste rate for pack production
(grams of waste per m² of
packaging material)
% SIG packaging portfolio
that is recyclable
Please see > pages 119-120.
Please see > pages 119-120.
Please see > page 168 and > page 119.
Please see > page 168 and > page 116.
Biodiversity and forest ecosystems
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 2, 12, 13, 15, 17. Please see > pages 376-379
for further information on our contribution to the SDGs.
• Through our engagement for thriving forests (see Responsible Sourcing Policy),
SIG is contributing to healthy forest ecosystems and no-deforestation supply
chains, while responsibly managed forests help to store carbon, regulate the
climate and provide a renewable alternative to fossil-based feedstocks.
• As a packaging systems provider to the food industry and one of the leading
producers of beverage cartons, SIG uses ecosystem services in its supply chain
mainly by sourcing wood-based materials. Forest-based liquid packaging
board makes up around 70-80% of each SIG pack on average. Thus, our main
exposure to biodiversity topics relates to the forests which our raw materials are
sourced from.
• Our operations are situated mainly in cultural landscapes and industrial parks.
Impacts on biodiversity have not been identified as material in our regular site
audits (ISO 14001, SEDEX/SMETA 4 Pillar).
• Our production sites and buildings as well as the traffic for logistics can cause
noise and light pollution which might disturb surrounding ecosystems.
• Supply chain:
• Sourcing wood-based material can negatively impact forest ecosystems if not
carried out in a sustainable manner.
• Location of metal mines can interfere with the natural habitat of species and
have a negative impact on biodiversity in the area.
• Fossil fuel extraction for production of polymers can disturb wildlife in marine
and terrestrial areas.
• Incorrect disposal of our products may lead to packaging items being carried into
the environment, which may threaten wildlife and pollute ecosystems.
• People and their human rights: land rights can be impacted, and agricultural
deterioration can lead to limitation of livelihood.
Annual Report 2022 Appendix
GRI content index
397
GRI Standard
Disclosure
Information / Reference / Omission
Key policies and commitments:
• Responsible Sourcing Policy
• Liquid Packaging Board Purchasing Policy
• Product Stewardship Policy
• Environment, Health and Safety Policy (EHS)
• Statement of intent: We aim to reduce negative impacts of our business with
regard to biodiversity and achieve more positive outcomes for nature and forests
by respecting these policies and taking the actions described below.
• We are committed to ensuring that biodiversity is maintained and healthy
ecosystems, high conservation values and responsible management practices
exist across our value chain.
• Responsibility to manage the material topic:
• For supply chain related impacts the VP of Global Sourcing and Procurement
and Group Corporate Responsibility is responsible.
• For our operations we manage the topic with our global and local EHS functions.
• Mitigation of potential negative biodiversity outcomes of our products after use
is managed within our Resource+ action area under supervision of the RSG and
involving regional presidents and market area leads.
• Increasing positive biodiversity outcomes related to forest landscapes is
further developed in a cooperation with WWF Switzerland involving SIG’s Group
Executive Board/C-Suite. Please see > pages 26-27 and > page 108 for further
information about this partnership.
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions.
Actions taken to manage the topic and our impacts:
• We manage any potential impacts through our certified environmental
management systems (ISO 14001).
• Our operations are situated mainly in cultural landscapes and industrial parks, and
regular site audits (ISO 14001, SEDEX/SMETA 4 Pillar) show no material impacts
on biodiversity.
• We are enhancing our positive social and environmental impacts in communities
through our engagement programme, and we focus on restoring/creating
additional forests through partnerships.
• We manage our impact on biodiversity in our supply chain, e.g. by setting strict
standards for suppliers through FSC™ certification. Additionally, we partner with
peers to develop recommendations on how life-cycle assessment can be used to
better address land use impacts on biodiversity.
• We run several recycling initiatives to collect more used packaging, reducing the
demand for virgin materials and thus lowering the impacts on biodiversity and
forest ecosystems. Please see > pages 113-118.
• Please see > pages 105-108 and to the stated policies to find detailed information
about the described actions taken as well as more actions to manage the above-
mentioned impacts.
Tracking the effectiveness of our actions:
• Quarterly reviews are conducted by the VP of Global Sourcing and Procurement,
who reports to the Responsibility Steering Group twice a year on supply chain
topics.
• Every two years all our operations including all our production plants are subjected
to a SEDEX SMETA 4 Pillar audit covering also environmental practices including
biodiversity-related activities.
• Issues or concerns can be reported via the Integrity & Compliance Hotline.
• Please see > page 171, > pages 26-27 and > pages 106-108 on targets and
evaluation of progress.
Engagement with our stakeholders:
• Partnerships with industry peers to develop recommendations on how life-cycle
assessment can be used to better address land use impacts on biodiversity.
• Based on feedback from inside and outside the organisation from customers,
suppliers, employees, investors and other stakeholders we continually review and
update the policies and related standards.
• Please see > pages 373-375 for information on stakeholder engagement.
No significant impacts due to responsible sourcing of (raw) materials (certified by
FSC™, ASI, ISCC PLUS etc.). Please see > page 398.
Omission: Information unavailable/incomplete
Third-party partnerships are agreed on. Please see > page 108 on the
WWF partnership. Implementation of the project and reporting will follow from 2023.
GRI 304:
Biodiversity 2016
304-2 Significant impacts
of activities, products and
services on biodiversity
304-3 Habitats protected
or restored
Own disclosures
% packs sold labelled with
FSC™ logo
% FSC™-certified liquid
packaging board
Please see > page 168.
Please see > page 107.
Annual Report 2022 Appendix
GRI content index
398
GRI Standard
Disclosure
Information / Reference / Omission
Sustainable raw materials
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 2, 7, 12, 14 and 17. Please see
> pages 376-379 for further information on our contribution to the SDGs.
• We have positive impacts on suppliers and on customers by setting standards,
using quality labels, and enhancing environmental and social responsibility,
stewardship, traceability and product labelling.
• Through sustainable raw material sourcing we mitigate the risk of a long-term
loss of our used sources.
• Our responsible sourcing ambition and entrepreneurial introduction of
responsible sourcing standards in our value chain has numerous positive
outcomes, for example on labour standards and EHS practice, also in view of
the sectors in which we help to establish best practice benchmarks.
• Potential and actual impacts from raw material sourcing are primarily caused by
the sourcing practices of our business relationships with suppliers and not by our
own operations.
• If forests are not responsibly managed, liquid paperboard sourcing might be
linked to deforestation and potentially soil degradation.
• The polymers we use depend to a large extent on fossil resources, which might
cause pollution of land and water.
• Sourcing of metals is energy-intensive and can impact the local environment.
• If natural resources are overexploited, it leads to accelerating environmental
depletion and in the case of over-exploitation of forests and use of fossil fuels to
global warming.
• Local minorities can be affected in these sourcing regions through noise,
pollution, deterioration of livelihood and changes in the landscape as a result of
deforestation and loss of biodiversity.
Key policies and commitments:
• Responsible Sourcing Policy
• Product Stewardship Policy
• Environment, Health and Safety Policy (EHS)
• Liquid Packaging Board Purchasing Policy
• Global R&D Process Handbook
• Standard Operating Procedure to improve used beverage carton collection and
recycling in regions
• Statement of intent: We aim to reduce the negative impacts of our business
with regard to raw material sourcing by respecting these policies and taking the
actions described below.
• Our ambition is to make all our packs exclusively with renewable or recycled
materials, using only renewable energy, and make sure every carton is recycled –
all to help create more resources for future generations. We are committed to
sourcing our main raw materials from certified responsible sources. We aim to
increasingly substitute our consumption of non-renewable resources, including
fossil and mineral feedstocks, with renewable resources.
• We have signed the Vancouver Declaration that encourages companies to
pledge support for the United Nations Sustainable Development Goals through
FSC™ certification. More details can be found on > page 108.
• Responsibility for managing the material topic:
• The VP of Global Sourcing and Procurement with the support of the Global
Corporate Responsibility team
• The Responsibility Steering Group oversees the semi-annual reports on raw
material sourcing.
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility in the
functional areas varies, but the global department heads have oversight.
Actions taken to manage the topic and our impacts:
• We have actions in place to mitigate the stated impacts of the sourcing practices
on the environment and people and their human rights:
• The use of by-products from other industries (e.g. woodchips or tall oil) in our
production process
• Certification standards: Forest Stewardship Council™ (FSC™) for liquid
packaging board, Aluminium Stewardship Initiative (ASI) for aluminium and
International Sustainability & Carbon Certification (ISCC) PLUS for plant-based
polymers
• We are increasing transparency in the supply chains.
• Please see > pages 109-120 and > pages 135-140 and to the stated policies
to find detailed information about the described actions taken as well as more
actions to manage the above-mentioned impacts. In addition, please see
> page 139 for a definition of A-materials.
Annual Report 2022 Appendix
GRI content index
399
GRI Standard
Disclosure
Information / Reference / Omission
GRI 301:
Materials 2016
Own disclosure
Water
GRI 3:
Material Topics
2021
Tracking the effectiveness of our actions:
• The SIG Group Executive Board conducts internal audits and regular reviews of
performance against the Way Beyond Good targets.
• Issues or concerns can be reported via the Integrity & Compliance Hotline or
grievance mechanisms that are set up as part of local collection and recycling
partnerships.
• Monthly calls of the local management team with the VP of Global Sourcing and
Procurement, where lessons learned are also discussed
• Please see > page 171, > page 173, > pages 113-120 and > pages 136-140 on
targets and evaluation of progress.
Engagement with our stakeholders:
• Based on feedback from inside and outside the organisation from customers,
suppliers, employees, investors and other stakeholders we continually review and
update the policies and standards.
• Requiring raw material certification standards (FSC™, ASI etc.) we represent the
perspective of NGOs.
• Please see > pages 373-375 for further information on stakeholder engagement.
301-1 Materials used by
weight or volume
% A-materials from
certified sources
Please see > pages 139-140.
Please see > page 140.
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 6 and 14. Please see > pages 376-379
for further information on our contribution to the SDGs.
• In our own operations we use process water for cooling the machines in closed-
water circles. Nevertheless, a potential negative impact can arise through
leakages which increase the consumption of fresh water and in those potential
cases additional wastewater has to be treated.
• The filling machines we produce require water for start-up, cleaning, test runs
and cooling. Water loss can be a negative impact in the event of inefficient use.
• Lack of wastewater treatment or insufficient infrastructure can contribute to
water pollution. The effect is greater if chemicals (e.g. hydrogen peroxide) are
used in the cleaning process. But typically process wastewater is directed to a
municipal water treatment plant.
• Lack of wastewater treatment can cause water pollution and negatively affect
the people living in the area (e.g. cause serious long-term health issues).
• Inefficient water use can also occur at our suppliers
Key policies and commitments:
• Overview of SIG’s ESG commitments
• Environment, Health and Safety Policy (EHS)
• Aluminium Purchasing Policy
• Statement of intent: We aim to reduce the negative impacts of our business
with regard to water by respecting these policies and taking the actions
described below.
• We are committed to conservative water use throughout the product supply
chain and business operations. Furthermore, we strive to consciously use water
resources by considering water quantity, quality aspects and water stress risks.
Our engagement to address water scarcity and stress in certain regions focuses
on reducing the water use and consumption of our filling machines.
• Additionally, we aim to pass on our commitment to our customers by supporting
them in improving their water efficiency and water stewardship.
• Responsibility for managing the material topic:
• The local EHS under supervision of Global EHS is responsible for monitoring
and reducing water use.
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned function.
Actions taken to manage the topic and our impacts:
• We provide user guidance on target water use to ensure efficient operation at the
customer stage.
• For production sites located in regions with high water stress risk we develop and
implement a local water consumption reduction management plan, which also
includes measures to help to reduce the stress level. In particular, the following
measures have been implemented:
• Tracking of changes in regulation and tariff schemes through regular contact
of the respective plant EHS team with local authorities
• Proactive engagement through water-saving projects at plant level
• As water stewardship is included in the Forest Stewardship™ (FSC™) principles
and in the Aluminum Stewardship Initiative (ASI) performance standard
certification, water impacts are addressed for both raw materials.
• Please refer to > pages 109-120 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Annual Report 2022 Appendix
GRI content index
400
GRI Standard
Disclosure
Information / Reference / Omission
Tracking the effectiveness of our actions:
• Monthly review of the global performance of the EHS dashboard
(water-related KPIs)
• Water risks are assessed annually for the next 1-3 years in an environmental
risk assessment.
• Scenario analyses
• Business impact evaluation of possible shortages or allocation of water supply
to production capacity of plants
• Annual evaluation and plant classification in water stress areas by the central
CR team, including lessons learned
• ISO14001 impact assessment
• Please see > page 113 and > pages 118-119 to learn more about our performance
measures for water.
Engagement with our stakeholders:
• Exchange with local parties and water utilities sharing the same water resource
and/or the same wastewater treatment facility in water-stressed areas
• Customers can give feedback to the sales team or ask questions on water use
guidance for the filling machines. Feedback is shared with construction and
R&D teams.
• Please see > pages 373-375 for further information on stakeholder engagement.
GRI 303:
Water and Effluents
2018
303-1 Interactions with
water as a shared resource
• Monthly performance review of the EHS dashboard by the Global EHS manager
• Changes to the previous month are analysed and explained and reported to the
Executive Board.
• EHS dashboard measures water use (in cubic metres) and serves for plausibility
checking (cloud-based database, Power apps).
• Environmental manual for each of our locations. Raw data is delivered by
locations for Global EHS dashboard.
• See point 3-3 Engagement with our stakeholders on exchange with local
parties on water as a shared resource. We consider water in our internal risk
analysis, which we use as input for the Supplier Code of Conduct we distribute
to suppliers. If there is a water-related issue in the region, it is discussed with
suppliers and customers.
• Basis for water thresholds is applicable laws and regulations.
• The targets are derived from the ESG policies and plotted in an X-matrix. The
performance is discussed in weekly meetings at the production sites and at the
monthly EHS meetings.
• Minimum quality standard for effluent discharge: Chemical oxygen demand
(COD) is measured before water goes to discharge at all our locations as it is a
legal requirement (legal limit).
• No explicit internal guidance or sector-specific standard as it is required by law
• The profile of the municipal water treatment facilities is considered.
303-2 Management of water
discharge-related impacts
303-5 Water consumption
Please see > page 119.
Health, safety & wellbeing
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDG 8. Please see > pages 376-379 for further
information on our contribution to the SDGs.
• As a global employer operating in more than 60 countries, we have an impact on
the health and safety of our 5,000 plus employees.
• By preventing injuries and promoting health and wellbeing, we are not only
supporting our people but also the success of our business by reducing lost time,
enhancing productivity and improving employee engagement.
• Employee wellbeing (mental, social and physical) is a key driver to improve
employee engagement levels and productivity.
• There are positive spill-over effects if employees incorporate their safe behaviour
in their private lives, which has a positive impact on their families and on the
community.
• Actual negative impacts on health and safety have occurred through extreme
heat at certain production sites.
• At-risk behaviour in the workplace can lead to injuries and lost-time cases.
• Chemical hazards can lead to health issues.
• Health, safety and wellbeing issues occur through our own activities and also
through our suppliers and business partners.
• Impacts on people and their human rights can occur if health and safety is not
assured as people can sustain heavy injuries or suffer chronic diseases. This is a
direct impact on the human right to live.
Annual Report 2022 Appendix
GRI content index
401
GRI Standard
Disclosure
Information / Reference / Omission
Key policies and commitments:
• Environment, Health and Safety Policy (EHS)
• Statement of intent: We aim to reduce the negative impacts of our business with
regard to health, safety and wellbeing by respecting this policy and taking the
actions described below.
• We are committed to adopting a preventive health and safety strategy through
our “Take Care” culture for workplace safety by striving to prevent all health and
safety incidents and work-related illnesses.
• We also commit to regularly conduct workplace and task-based risk
assessments as part of our proactive approach to the workplace safety protocol
and our “Take Care” culture.
• Responsibility for managing the material topic:
• For health and safety: the governance role is with Global EHS, which reviews
performance with the local EHS leads, monitors and manages the sustainable
implementation of safety projects and EHS alerts, and provides a report to the
Global Executive Board.
• Head of operation is responsible at operational level.
• For employee wellbeing: Group Human Resources
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility in the
functional areas varies, but the global heads have oversight.
Actions taken to manage the topic and our impacts:
• To reduce negative health impacts, we address workplace safety in our
Responsible Culture approach in the SIG Responsibility Strategy. It is managed
through health and safety management systems, which are aligned with the
ISO 45001 standards at all sites.
• By focusing on behaviour-based safety and adopting a ”Take Care“ culture, we
will reduce occupational incidents and additionally achieve positive spill-over
effects in other areas (e.g. production efficiency, energy efficiency, lower costs,
higher quality).
• Our risk assessments and corresponding operating instructions form the basis of
our approach to chemical safety at the workplace. We share key findings, lessons
learned and best practices through a dedicated platform and enable the plants
to identify, manage and educate employees about key safety risks quickly and
effectively.
• We have established programmes to promote work–life balance, healthy lifestyles,
mindfulness and smart time management to support employee wellbeing.
• Please refer to > pages 154-159 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Tracking the effectiveness of our actions:
• EHS dashboard contains health and safety KPIs and is reviewed by the Global
Executive Board each month.
• Quarterly reports to the Global Executive Board
• Annual site self-assessments (based on ISO 45001) and internal audits
• SEDEX SMETA site audits and EcoVadis assessments
• Issues or concerns can be reported via the Integrity & Compliance Hotline and
via safety opportunity cards and the behaviour-based safety process.
• Please see > page 175 and > pages 155-159 on targets and evaluation of progress.
• We monitor incidents and near misses.
• Lessons learned: Each accident is reported (SOP); analysis of the accident,
template, final accident report with lessons learned (global EHS distribution list).
Engagement with our stakeholders:
• We conduct employee surveys and focus groups on wellbeing.
• Partnerships with customers to extend our engagement on workplace safety in
their operations
• Technicians are instructed to inform customers about health and safety issues,
and they report customer feedback back to us.
• Board of Directors and investors are regularly updated.
• Please see > pages 373-375 for further information on stakeholder engagement.
• Our health and safety management systems are aligned with the ISO 45001
standards.
• Our risk assessments and corresponding operating instructions form the basis of
our approach to chemical safety in the workplace.
• Each location needs to fill out a form on EHS compliance of topics with the
national law in the corresponding country.
• Risk management is legally required in every country where SIG produces.
• We have EHS systems at all production sites as well as our Global Assembly,
Global Technology and Technical Service functions.
• Contractors, visitors and suppliers get instructed on health and safety before
they visit the production site.
GRI 403:
Occupational
Health and Safety
2018
403-1 Occupational
health and safety
management system
Annual Report 2022 Appendix
GRI content index
402
GRI Standard
Disclosure
Information / Reference / Omission
GRI 403:
Occupational
Health and Safety
2018
403-2 Hazard identification,
risk assessment, and incident
investigation
• Our health and safety management systems help us identify and manage risks
and promote continuous improvement.
• To support implementation, our health and safety teams and other key personnel
are trained in ISO 45001.
• Line managers update risk assessments annually. We share key findings and best
practices through a dedicated platform to help plants learn from each other and
enable them to identify, manage and educate employees about key safety risks
quickly and effectively.
• If an incident occurs, the risk assessment is refined.
• Operational employees, line managers and local EHS teams cross-check the risk
assessment to ensure quality.
• All incidents must be reported in accordance with our SOP.
• For incidents that have a high potential to cause severe injury, we issue a global
alert across the business to raise awareness and prevent similar incidents
occurring elsewhere.
• For further information, please refer to our Environment, Health and Safety
Policy (EHS) and > pages 154-159.
403-3 Occupational
health services
• Local EHS department is responsible for the management of these issues.
• For further information, please refer to our Environment, Health and Safety
Policy (EHS) and > pages 154-159.
403-4 Worker participation,
consultation, and
communication on
occupational health
and safety
• Programmes are run by health and safety steering committees that include
management and employee representatives.
• Local workers’ councils or committees meet regularly to discuss health and
safety matters.
• We encourage employees to make suggestions on how we can improve health
and safety and involve them in the implementation of improvements.
• Extension of the behaviour-based model is used for safety to occupational
health issues like ergonomics.
• Local EHS department communicates health and safety topics.
• Health and safety committee, which holds quarterly or semi-annual meetings,
consists of workers, management, experts, local EHS people, legal, HR.
• For further information, please refer to our Environment, Health and Safety
Policy (EHS) and > pages 154-159.
403-5 Worker training on
occupational health and safety
• All new employees are trained on health and safety as part of their induction.
• Training programmes to ensure our people understand how to manage risks
403-6 Promotion of
worker health
relevant to their specific roles – from using fall protection measures for production
teams working at height to ensuring appropriate ergonomics for office workers.
• Our Technical Service teams also receive training relevant to their work at
our customers’ sites.
• Advanced training on ergonomics
• Health checks (sight/hearing)
• For further information, please refer to our Environment, Health and Safety
Policy (EHS) and > pages 154-159.
• Support and benefits vary locally depending on the regional, legal and
cultural context.
• Workers’ access to non-occupational medical and healthcare services are
facilitated, e.g. through company clinics or disease treatment programmes,
referral systems, or health insurance or financial contributions.
• Rescue chain is trained, documented and audited.
• Examples include health insurance, health check-ups, fitness programmes,
flexible working arrangements, parental benefits and leave, and access to
counselling services to address problems at work or at home through employee
assistance programmes.
• For further information, please refer to our Environment, Health and Safety
Policy (EHS) and > pages 154-159.
403-7 Prevention and
mitigation of occupational
health and safety impacts
directly linked by business
relationships
• Investment in business-wide improvements, e.g. investments in additional safety
containment on machinery to prevent risk of injury to hands or fingers from
contact with moving parts.
• Customers are instructed on health and safety risks in training centres.
• Please see > pages 157-158.
403-8 Workers covered by an
occupational health and safety
management system
403-9 Work-related injuries
100% coverage at production sites as well as our Global Assembly, Global
Technology and Technical Service functions
Please see > pages 157-158. Omission: confidentiality constraints. We provide all
data as required for GRI 403-9, except working hours of employees and working
hours of contractors, because this is business confidential.
403-10 Work-related ill health Omission: information unavailable. The information on work-related ill health has
not yet been reported in our global human resources systems.
In 2023, we will evaluate how we can best collect the required data globally with the
aim of having suitable reporting in place by 2025.
Annual Report 2022 Appendix
GRI content index
403
GRI Standard
Disclosure
Information / Reference / Omission
Diversity, equity and inclusion
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 5 and 10. Please see > pages 376-379
for further information on our contribution to the SDGs.
• Empowering people with different abilities will help us to add to the value and
success of SIG.
• The discussions in our diverse teams are enriched by different perspectives,
new ideas and contrary points of view, which leads to more creativity and better
outcomes, and results in more innovation.
• Lower chance of discrimination and violation of human rights by promoting
diversity, equity and inclusion
• There are gender gaps across all industries as well as worldwide, causing negative
impacts for the affected people.
• Equal treatment and further global discrepancies will continue in the near future.
Depending on the producing country, there might be a high risk of inequality
and discrimination based on gender, race, religion, political affliction and sexual
orientation in our supply chain.
Key policies and commitments:
• SIG Group Code of Conduct
• Human Rights, Labour and Community Engagement Policy
• Human Resources Framework
• We are a signatory of the German Diversity Charter.
• Statement of intent: We aim to reduce the negative impacts of our business with
regard to diversity, equity and inclusion by respecting these policies and taking
the actions described below.
• We are committed to providing an inclusive working environment for our
employees free of bias, where our employees feel safe, valued, fairly treated
and empowered. We do not tolerate discrimination of employees or suppliers’
workers based on race, religion, national origin, political affiliation, gender, sexual
orientation, disability, age or any other relevant category.
• Responsibility for managing the material topic:
• Global Human Resources, supported by local Human Resources teams
• Employee-led Diversity, Equity & Inclusion Focus Group
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility varies,
but the People & Culture Chief Officer has overall responsibility.
Actions taken to manage the topic and our impacts:
• We create an inclusive workspace with equal professional opportunities
regardless of gender, age, disability or any other potential differentiating factor.
• Through our proactive approach to diversity, we intend to increase our efforts for
those individuals who continue to encounter discrimination in the workplace by
advancing the provision of equal opportunities.
• Implementation of diversity criteria in management tools that support employee
retention, development and engagement and put special emphasis on critical
minority groups
• We train our leaders on diversity and inclusion to increase awareness and drive
behaviour change.
• We are improving our engagement with women and minorities in our recruitment
processes and defining requirements in our internal career development
processes to help us select the best candidates from a diverse pool of internal
and external applicants.
• Please refer to > pages 145-153 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Tracking the effectiveness of our actions:
• Regular dialogue with employees
• SEDEX SMETA site audits, EcoVadis assessments
• Diversity and inclusion dashboard
• Issues or concerns can be reported via line managers, the Human Resources
team, the Global Legal and Compliance team or the Integrity & Compliance
Hotline.
• We analyse any findings and define improvement actions such as changes to the
existing process or implementation of a new process to avoid issues in the future.
• Please see > page 175 and > pages 146-153 on targets and evaluation of
progress.
Engagement with our stakeholders:
• SIG cooperates with universities and other organisations to attract female
engineers and better engage with women, both prospective candidates and
leaders, on websites, in campaigns or through career networks and communities.
• Please see > pages 373-375 for further information on stakeholder engagement.
Annual Report 2022 Appendix
GRI content index
404
GRI Standard
Disclosure
Information / Reference / Omission
GRI 405:
Diversity and Equal
Opportunity
2016
405-1 Diversity of governance
body and employees
405-2 Ratio of basic salary
and remuneration of women
to men
Please see > pages 147-148 and > pages 152-153.
Omission: Information unavailable/incomplete
There is currently not enough data available to calculate the remuneration ratios
accurately on a global level. A globally integrated human resources system is
planned to be implemented over the coming years. We will collect more data over
the course of next year and adapt the local human resources systems accordingly
in order to be able to move to a global human resources reporting system as soon
as possible.
GRI 406:
Non-discrimination
2016
406-1 Incidents of
discrimination and corrective
actions taken
Please see > page 144.
Employee satisfaction, development and working environment
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDG 8. Please see > pages 376-379 for further
information on our contribution to the SDGs.
• Appealing working conditions attract talent and contribute to the economic
development of the region.
• Positive impact through professional education, trainee programmes, technical
and management courses
• Long working hours can have serious health implications such as burn-out,
psychological problems and stress.
Key policies and commitments:
• SIG Group Code of Conduct
• Human Rights, Labour and Community Engagement Policy
• Human Resources Framework
• Statement of intent: We aim to reduce the negative impacts of our business
with regard to employee satisfaction, development and working environment by
respecting these policies and taking the actions described below.
• We want to shape a work environment where our employees feel more connected
and healthier and as a consequence improve employee satisfaction.
• Responsibility for managing the material topic:
• Our global and local Human Resources departments are responsible for the
working conditions in our own operations.
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility varies,
but the People & Culture Chief Officer has overall responsibility.
Actions taken to manage the topic and our impacts:
• We strive to create a workplace and culture that can ensure the physical and
mental integrity of each individual. Physical abuse or discipline, the threat of
physical abuse, sexual or other harassment and verbal abuse or any form of
intimidation are strictly prohibited.
• We ensure fair salaries and benefits.
• We investigate reports of unfair labour practices or other breaches of the Code of
Conduct.
• We review our employees’ performance and progress as part of their biannual
appraisal reviews with managers to support their professional development.
• We have a tool to support people in asking for additional feedback from colleagues
and managers outside their formal reviews.
• We also encourage individuals, including managers, to gain more personal insights
from others through a 360° feedback tool.
• Ad hoc remediation process by local human resources team
• Please refer to > pages 145-153 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Tracking the effectiveness of our actions:
• Regular internal or third-party assessments of our operations
• SEDEX SMETA site audits
• Quarterly meeting with Executive Board and employees
• Regular dialogue with employees
• Issues or concerns can be reported through any available channel, including
supervisors, line managers, representatives of Group HR, Group Internal Audit, the
Global Legal and Compliance team or the Integrity & Compliance Hotline.
• Surveys and comparison with other companies
• Please see > page 175 and > pages 146-153 on targets and evaluation of progress.
• Lessons learned: reported ad hoc and individually discussed at quarterly meetings
Engagement with our stakeholders:
• Engagement with our employees through supervisor or human resources hotline
• AIM-PROGRESS platform
• Please see > pages 373-375 for further information on stakeholder engagement.
Annual Report 2022 Appendix
GRI content index
405
GRI Standard
Disclosure
Information / Reference / Omission
GRI 401:
Employment
2016
401-1 New employee hires
and employee turnover
401-2 Benefits provided to
full-time employees that are
not provided to temporary or
part-time employees
Please see > page 153.
Omission: Information unavailable/incomplete
Up to 2022 we were not running any gender pay analyses on a global base. In the
past years we observed many new regulatory developments around “equal pay”
shaping the global landscape. Based on a Swiss law requirement we ran an analysis
in 2020 for all our legal entities in Switzerland, conducted by an independent third
party. We are happy to report that the analysis confirmed that SIG is compliant with
the requirements of Swiss law. In 2023 and in the following years we plan to further
invest into equal pay analyses.
401-3 Parental leave
Omission: Information unavailable/incomplete
GRI 404:
Training and
Education
2016
404-1 Average hours of
training per year per employee
404-2 Programs for upgrading
employee skills and transition
assistance programs
At global level we don’t have insights into what is locally created / maintained
when it comes to parental leave. This is all maintained in local solutions based on
country-specific legislations.
A globally integrated human resources system is planned to be implemented over
the coming years. We will collect more data over the course of next year and adapt
the local human resources systems accordingly in order to be able to move to a
global human resources reporting system as soon as possible
Please see > page 149.
Omission: Information unavailable/incomplete
We maintain all the SIG-related trainings/programmes in our Learning System
and provide the average on learning hours per employee. Local initiatives are
maintained in the local systems and we do not have insight on that from a global
level perspective.
A globally integrated human resources system is planned to be implemented over
the coming years. We will collect more data over the course of next year and adapt
the local human resources systems accordingly in order to be able to move to a
global human resources reporting system as soon as possible
404-3 Percentage of
employees receiving regular
performance and career
development reviews
Please see > page 149.
Own disclosures
Sustainable engagement score Please see > page 151.
Responsible suppliers
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Through our supplier engagement, we contribute to UN SDGs 8, 12, 13, 15 and
17. Please see > pages 376-379 for further information on our contribution to
the SDGs.
• Through supplier engagement, we can reveal supply chain issues, which helps the
overall community in the affected regions to get better working conditions.
• We enable market access to sustainable suppliers.
• Increased administrative workload due to audits required
• Potential termination of business relationships in the event of non-compliance
with our requirements, which means that the process of supplier development
has to be initiated.
• Negative impacts in the supply chain can arise due to a violation of human rights,
such as those relating to child labour or forced labour, in the upstream business
relationships. For more information, please see > pages 141-144 and
> pages 397-398.
Key policies and commitments:
• Overview of SIG’s ESG commitments
• SIG Supplier Code of Conduct (applicable as of November 2022)
• SIG Business Ethics Code for Suppliers
(applicable for contracts before November 2022)
• All active significant suppliers must formally accept the SIG Business Ethics
Code for Suppliers or the SIG Supplier Code of Conduct.
• Responsible Sourcing Policy
• Liquid Packaging Board Purchasing Policy
• Polymer and Aluminium Purchasing Policies
• Supplier Qualification (Equipment) process
• Statement of intent: We aim to reduce the negative impacts of our business
with regard to responsible suppliers by respecting these policies and taking the
actions described below.
Annual Report 2022 Appendix
GRI content index
406
GRI Standard
Disclosure
Information / Reference / Omission
• We are committed to monitoring and assessing our supply chain risks as well
as actual or potential impacts on the environment and society. We are equally
committed to fostering adherence to our requirements by our significant suppliers.
Additionally, we strive to enable long-term development of a net positive supplier
base.
• Responsibility for managing the material topic:
• VP of Global Sourcing and Procurement
• For Global Assembly suppliers, the Global Equipment Team
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility varies in
the functional areas, but the global department heads have oversight.
Actions taken to manage the topic and our impacts:
• As part of our onboarding process, suppliers of raw materials (direct suppliers)
and indirect suppliers are screened on social and environmental aspects, labour
practices and human rights.
• To reveal supply chain issues, we deploy our CSR assessment system to more
thoroughly assess significant raw material and indirect suppliers on their
performance and transparency through self-assessments, external certifications
and common industry tools. Compliance with SIG’s responsibility requirements
allows suppliers to be accepted for up to three years prior to reassessment. The
frequency of the assessment is dependent on the supplier’s performance.
• We conduct audits of high-risk suppliers to mitigate social and environmental risks.
• In the event that a supplier does not meet SIG’s responsibility requirements, we
require them to improve. Insufficient progress triggers an escalation process, where
measures for the remediation or resolution of the conflict are defined. Inability or
unwillingness to improve on the part of the supplier may lead to the termination of
the business relationship.
• Please refer to > pages 135-140 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Tracking the effectiveness of our actions:
• SIG’s VP of Global Sourcing and Procurement reviews the effectiveness of
the described actions on a quarterly basis and reports twice a year to the
Responsibility Steering Group.
• Please see > page 173 and > pages 136-140 on targets and evaluation of progress.
• There were no lessons learned in the reporting period.
Engagement with our stakeholders:
• Our sales team engages closely with customers to also understand their needs with
regard to the supply chain and reports back to the purchasing team, which amends
the actions, goals and targets if necessary.
• Through the collaboration with NGOs we learn about issues in the supply chain
regions where the supply chain is very fragmented.
• Please see > pages 373-375 for further information on stakeholder engagement.
Please see > page 137.
Omission: Information unavailable/incomplete
Please refer to > pages 137-138. We screen significant suppliers for potential
negative environmental impacts and not for actual environmental impacts as part
of our risk assessment. Significant direct suppliers are then further evaluated by
requesting EcoVadis assessments or SEDEX audits (or equivalent). For significant
indirect suppliers, we currently expect the acceptance of our Supplier Code of
Conduct as a minimum. We will examine how to collect data on actual negative
environmental impacts for all our significant suppliers. In addition, we will intensify
the discussion with EcoVadis and SEDEX to receive information on significant
actual impacts and improvements and we will report on terminations of supplier
contracts based on findings of these assessments by 2025.
GRI 308:
Supplier
Environmental
Assessment
2016
308-1 New suppliers
that were screened using
environmental criteria
308-2 Negative environmental
impacts in the supply chain
and actions taken
GRI 414:
Supplier Social
Assessment
2016
414-1 New suppliers that were
screened using social criteria
Please see > page 137.
414-2 Negative social
impacts in the supply chain
and actions taken
Omission: Information unavailable/incomplete
Please refer to > pages 137-138. We screen significant suppliers for potential
negative social impacts and not for actual social impacts as part of our risk
assessment. Significant direct suppliers are then further evaluated by requesting
EcoVadis assessments or SEDEX audits (or equivalent). For significant indirect
suppliers, we currently expect the acceptance of our Supplier Code of Conduct as
a minimum. We will examine how to collect data on actual negative social impacts
for all our significant suppliers. In addition, we will intensify the discussion with
EcoVadis and SEDEX to receive information on significant actual impacts and
improvements and we will report on terminations of supplier contracts based on
findings of these assessments by 2025.
Annual Report 2022 Appendix
GRI content index
407
GRI Standard
Disclosure
Information / Reference / Omission
Human rights
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• As we integrate the respect for human rights into the Company, we actively
contribute to UN SDG 16 by laying the groundwork for a peaceful society and
access to justice for everybody who works at SIG or who is impacted in any
way through our business activity. Please refer to > pages 376-379 for more
information on our contribution to SDGs.
• By embedding respect for human rights in the Company culture, we contribute
positively to the work ethic in the organisation and in business relationships, and
in a broader sense to the community.
• Potential negative impacts on people and their human rights are most closely
linked to our activities relating to health, safety and wellbeing, modern slavery,
discrimination and harassment, children’s rights, minorities, liberty and security
of the person, fair labour conditions, freedom of thought and expression, social
security and freedom of association.
• Actual negative impacts on people and their human rights which we were able to
identify through SEDEX audits in 2021 at our own operations related to working
hours and overtime. These impacts have been reduced in the reporting year as
we have implemented a corrective action plan and taken further steps to improve
the situation.
• While violations of human rights can occur at the Company’s own operations, we
are mainly exposed to incidents in our supply chain where we have less control
over the impacts.
Key policies and commitments:
• Human Rights, Labour and Community Engagement Policy
• SIG Group Code of Conduct
• SIG Suppliers Code of Conduct (applicable as of November 2022)
• SIG Business Ethics Code for Suppliers
(applicable for contracts before November 2022)
• Statement of intent: We aim to reduce the negative impacts of our business with
regard to people and their human rights by respecting these policies and taking
the actions described below.
• Our overarching commitment is to identify, prevent and manage actual and
potential human rights impacts in our operations, supply chain and with respect
to our major business relationships. For new major business relations, i.e.
mergers and acquisitions as well as joint ventures, we consider among other
decision-making factors environmental, social and human rights risks as well as
governance factors.
• We support the United Nations Global Compact’s ten principles on human rights,
labour, environmental protection and anti-corruption.
• We are also committed to adhering to the guidance of the United Nations Guiding
Principles on Business and Human Rights and the relevant Organisation for
Economic Co-Operation and Development (OECD) frameworks.
• Responsibility for managing the material topic:
• The Board of Directors approves the Code of Conduct, which includes a
section on human rights.
• In addition, we have assigned the topic of human rights specifically to one
member of the Group Executive Board and we are in the process of also
defining the responsibility at an operational level.
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions, where the level of responsibility is
also defined.
Actions taken to manage the topic and our impacts:
• SEDEX Members Ethical Trade Audits (SMETA) of our production plants
include the following human rights topics: freely chosen labour, freedom of
association, health and safety, child labour, wages and benefits, working hours
and discrimination, no harsh and inhumane treatment. All our production sites
undergo SMETA audits to assess compliance with fair labour practices and
ensure that we uphold high standards on human rights.
• The potential negative impacts on human rights are also monitored continuously
to prevent any occurrences of human rights violations. We continue to ensure
the necessary ethical labour practices to safeguard our employees‘ rights in all
aspects. Please see also > pages 400-405.
• Issues or concerns can be reported through any available channel, including
supervisors, line managers, representatives of Group HR, Group Internal Audit,
the Global Legal and Compliance team or the Integrity & Compliance Hotline.
If we identify any issues or concerns with human rights in the supply chain, we
engage with suppliers to help them improve through corrective action plans. If a
supplier fails to respond to our requests or shows no willingness to improve, we
reserve the right to terminate our business relationship with them in accordance
with our contracts.
Annual Report 2022 Appendix
GRI content index
408
GRI Standard
Disclosure
Information / Reference / Omission
• Positive impacts on people and their human rights or success stories can be
shared via our Best Practices app.
• Please refer to > pages 141-144 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Tracking the effectiveness of our actions:
• In 2022, we conducted a detailed human rights due diligence. Part of this
project was a risk analysis of own sites and an analysis of Tier 1 suppliers and
a gap analysis to establish a robust due diligence with focus on compliance
with European legislations. We divided responsibilities between the Functional
Units and turned a general roadmap into a detailed plan for implementation.
The Human Rights, Labour and Community Engagement Policy, Supplier Code
of Conduct and grievance mechanisms have already been adapted and the
implementation process started at the end of the reporting year.
• For tracking the effectiveness of measures taken with regard to human rights
violations in the supply chain, please see > pages 135-140.
• Please see > page 174 and > pages 142-144 on targets and evaluation of progress.
Engagement with our stakeholders:
• Employees can report issues or concerns related to human rights via our
Integrity & Compliance Hotline, Human Resources teams, the Global Legal and
Compliance team.
• Suppliers can find information on how to report incidents via a link which is
provided in the SIG Supplier Code of Conduct.
• Please see > pages 373-375.
Own disclosure
Plants completed SEDEX
Members Ethical Trade Audit
(of total number of plants)
We chose to use our own disclosure for human rights, as SEDEX audits are
a suitable indicator to address the cumulative topic of human rights issues.
Please see > page 144 and > page 169.
Product safety and integrity
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 2 and 12. Please see > pages 376-379
for further information on our contribution to the SDGs.
• Delivering a resilient and shelf-stable, high barrier food supply system that has
demonstrable positive impacts on supplying food and nutrition to people.
• Lack of hygiene can cause health issues.
• Product failure and removal can lead to problems in global value chains.
• Construction errors in the production of filling machines can lead to accidents.
• The above-mentioned product safety and integrity impacts can occur in our own
operations as well as through business relationships.
• We may impact people and their human rights if the safe and clean delivery of
food and beverages is not guaranteed.
Key policies and commitments:
• Product Safety and Quality Policy
• Product Stewardship Policy
• Statement of intent: We avoid the negative impacts related to product safety and
integrity which could potentially be caused by our business by respecting these
policies and by taking the actions described below.
• We are committed to the highest product safety and quality standards.
That means no impact may emanate from our solutions that could compromise
human health, change the condition of the food products or affect its
organoleptic properties (e.g. taste, smell).
• Our commitment to product stewardship includes our commitments to
safeguard the environment including but not limited to impacts related to climate
change, biodiversity.
• Responsibility for managing the material topic:
• Site quality management and product safety teams
• Regional quality management and product safety teams
• Overseen by the Head of Global Quality Management Responsibility R&D team
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility varies
in the functional areas, but the global department heads have oversight.
Actions taken to manage the topic and our impacts:
• We continuously track new legal developments to ensure we stay in full
compliance with applicable food safety laws and regulations and meet our client
expectations to the highest degree.
• We ensure the highest product safety and quality for our customers and
consumers by operating an integrated and systematic product safety and quality
management system which helps us identify, mitigate and eradicate potential
and existing risks throughout the value chain.
• For effective risk assessment and management, we apply leading recognised
methods such as HACCP (hazard analysis and critical control points) and the use
of risk analysis tools, e.g. FMEA (Failure Mode & Effects Analysis) or simplified
risk analysis.
Annual Report 2022 Appendix
GRI content index
409
GRI Standard
Disclosure
Information / Reference / Omission
• We have a system and associated processes established to ensure backwards
traceability from our final products (package material and closures), through
logistics and manufacturing, up to our raw materials used.
• Our production plants are certified according to the BRC GS Packaging
standard and are annually audited to retain their certification. This certification
demonstrates that we provide products that are quality-assured and legally
compliant.
• We continuously work with our customers to make sure that product safety and
quality are maintained.
• If there are any complaints, our Integrated Complaint and Claim Management
process (ICCM) provides clear guidance on how they should be managed.
• The Critical Incident Handling Process describes the standardised way that
potentially major incidents – in terms of damage and hazard to customers, third
parties or SIG – are managed within SIG.
• We have an established process in place if a product recall or withdrawal is
required. Our product and material tests guarantee safe food supply.
• Please refer to > pages 121-125 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
• For our actions on supplier monitoring and auditing, please see > pages 135-140.
Tracking the effectiveness of our actions:
• The traceability system and processes are subject to a recurring validation
through customers, third parties and internal audits.
• We validate the effectiveness of our Product Safety and Quality Management
System on a regular basis, e.g. our product withdrawal procedure at least
annually. The findings are then incorporated into our product safety update
training.
• Global quality and product safety management reporting system
• Monthly reports to the Group Executive Board and escalation of customer
complaints to management
• Issues or concerns can be reported via the integrated customer complaint and
claim management system or the Integrity & Compliance Hotline.
• Lessons learned are shared with the local team on an ad hoc basis.
• We identify potential improvements through data analysis and follow-up with
individual respondents in our customer surveys. Hence, in the past we identified
opportunities in the user-friendliness of the overall survey and in the problem-
solving process. As a direct reaction to the valuable customer feedback, we
simplified the survey design. Also, we standardised the customer complaint
management process.
• Please see > page 172 and > pages 122-125 on targets and evaluation of
progress.
Engagement with our stakeholders:
• We have a customer feedback programme (NPS = Net Promoter Score) which
measures customer satisfaction, including in terms of quality and safety.
• Please see > pages 373-375 for further information on stakeholder engagement.
Please see > page 124 and > page 168.
Please see > page 124 and > page 168.
GRI 416:
Customer Health
and Safety
2016
416-1 Assessment of the
health and safety impacts of
product and service categories
416-2 Incidents of non-
compliance concerning the
health and safety impacts of
products and services
Innovation in products and services
GRI 3:
Material Topics
2021
3-3 Management of
material topics
Our direct impacts and the impacts of our industry:
• Positive contribution to UN SDGs 12, 13 and 17. Please see > pages 376-379
for further information on our contribution to the SDGs.
• Innovation towards higher recyclability of products or less resource-intensive
products will positively impact SIG’s entire value chain and reduce the number of
virgin products used in the three main components of the products: paper, plastic
and metal.
• A negative impact of innovation is that it requires additional resources, which can
impact our business in the short term but will benefit us in the long term.
• Through a continuous innovation effort, we mitigate/reduce negative impacts on
the environment and on society and avoid human rights violations.
Annual Report 2022 Appendix
GRI content index
410
GRI Standard
Disclosure
Information / Reference / Omission
Key policies and commitments:
• Product Stewardship Policy
• Global R&D Process Handbook
• Policy on Reuse and Disposal of Used Equipment
• Statement of intent: We aim to reduce the negative impacts of our business with
regard to innovation in products and services by respecting these policies and
taking the actions described below.
• Responsibility for managing the material topic:
• Global Technology
• Global Research and Development
• Global Engineering & Application teams
• Support from Global Marketing and our Chief Technology Officer who sits on
the Group Executive Board
• The internal decision-making, budget allocation and oversight processes are
organised in the above-mentioned functions. The level of responsibility in the
functional areas varies, but the global department heads have oversight.
Actions taken to manage the topic and our impacts:
• To develop the most sustainable packaging system that can provide safe and
affordable nutrition in countries around the world, including those with a risk
of food or water scarcity as well as limited refrigeration possibilities, we take a
holistic view across the entire life-cycle of our products, including the specific
circumstances of consumers in different regions of the world.
• We offer remote and digital service solutions that help to prevent downtime and
reduce greenhouse gas emissions from our technical service engineers travelling
to customer sites.
• Please refer to > pages 126-134 and to the stated policies to find detailed
information about the described actions taken as well as more actions to manage
the above-mentioned impacts.
Tracking the effectiveness of our actions:
• Internal audits and regular reviews of progress by our Responsibility Steering
Group and our Group Executive Board
• ASI certification audits, FSC™ certifications and ISSC Plus for A-materials
• Issues or concerns can be reported via the Integrity & Compliance Hotline.
• Please see > pages 172-173 and > pages 130-134 on targets and evaluation
of progress.
• Lessons learned are shared with the local team on an ad hoc basis.
Engagement with our stakeholders:
• Exchange through the AIM-PROGRESS platform
• Membership of industry associations
• Exchange with NGOs on new technologies and local solutions
• We take customer preferences into consideration. The sales team collects
feedback and passes it on to the R&D teams.
• Please see > pages 373-375 for further information on stakeholder engagement.
Own disclosures
ASI-labelled packs sold
Please see > page 168 and > page 133.
Impact mitigation potential
of innovations related to
current standard product
(tonnes polymer saved by
RS Structure)
Food packed in SIG packs
with SIGNATURE portfolio
packaging materials
(million litres)
Food packed in SIG packs
with SIGNATURE portfolio
packaging materials (% of total
litres packed in SIG packs)
205-2 Communication and
training about anti-corruption
policies and procedures
205-3 Confirmed incidents of
corruption and actions taken
206-1 Legal actions for anti-
competitive behaviour, anti-
trust, and monopoly practices
Further disclosures
GRI 205:
Anti-corruption
2016
GRI 206:
Anti-competitive
Behaviour
2016
Please see > page 169.
Please see > page 168 and > pages 132-133.
Please see > page 168 and > page 132.
Please see > page 165.
Please see > page 165.
No legal actions for anti-competitive behaviour, antitrust or monopoly
practices in 2022.
Annual Report 2022 Appendix
Assurance statement
411
Assurance statement
Independent Practitioner’s Report on a Limited
Assurance Engagement on Sustainability
Information
To SIG Group AG, Neuhausen am Rheinfall, Switzerland
We have performed a limited assurance engagement on the disclosures denoted with
“
Data assured “ in the sustainability report of SIG Group AG, Neuhausen am Rheinfall,
Switzerland (hereinafter “the Company”), for the period from 1 January to 31 December 2022
(hereinafter the “Report”). Our engagement in this context relates solely to the disclosures
denoted with the symbol “
Data assured “.
Responsibilities of the Executive Directors
The executive directors of the Company are responsible for the preparation of the Report
in accordance with the principles stated in the Sustainability Reporting Standards of the
Global Reporting Initiative (hereinafter the “GRI-Criteria”) and for the selection of the
disclosures to be evaluated.
This responsibility of the Company’s executive directors includes the selection and
application of appropriate methods of sustainability reporting as well as making assumptions
and estimates related to individual sustainability disclosures, which are reasonable in the
circumstances. Furthermore, the executive directors are responsible for such internal
controls as they have considered necessary to enable the preparation of a Report that is
free from material misstatement whether due to fraud or error.
Independence and Quality Control of the Audit Firm
We have complied with the German professional provisions regarding independence as well
as other ethical requirements.
Our audit firm applies the national legal requirements and professional standards – in
particular the Professional Code for German Public Auditors and German Chartered
Auditors (“Berufssatzung für Wirtschaftsprüfer und vereidigte Buchprüfer“: “BS WP/vBP”)
as well as the Standard on Quality Control 1 published by the Institut der Wirtschaftsprüfer
(Institute of Public Auditors in Germany; IDW): Requirements to quality control for audit
firms (IDW Qualitätssicherungsstandard 1: Anforderungen an die Qualitätssicherung in der
Wirtschaftsprüferpraxis - IDW QS 1) – and accordingly maintains a comprehensive system
of quality control including documented policies and procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Annual Report 2022 Appendix
Assurance statement
412
Practitioner´s Responsibility
Our responsibility is to express a limited assurance conclusion on the disclosures denoted
with “
Data assured ” in the Report based on the assurance engagement we have performed.
We conducted our assurance engagement in accordance with the International Standard
on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements other than
Audits or Reviews of Historical Financial Information, issued by the IAASB. This Standard
requires that we plan and perform the assurance engagement to allow us to conclude
with limited assurance that nothing has come to our attention that causes us to believe
that the disclosures denoted with “
Data assured ” in the Company’s Report for the period
from 1 January to 31 December 2022 have not been prepared, in all material aspects, in
accordance with the relevant GRI-Criteria. This does not mean that a separate conclusion
is expressed on each disclosure so denoted.
In a limited assurance engagement the assurance procedures are less in extent than for a
reasonable assurance engagement and therefore a substantially lower level of assurance is
obtained. The assurance procedures selected depend on the practitioner’s judgment.
Within the scope of our assurance engagement, we performed amongst others the following
assurance procedures and further activities
• Obtaining an understanding of the structure of the sustainability organization and of the
•
•
stakeholder engagement
Inquiries of personnel and executive directors involved in the preparation of the Report
regarding the preparation process, the internal control system relating to this process
and selected disclosures in the Report
Identification of the likely risks of material misstatement of the Report under consideration
of the GRI-Criteria
• Analytical evaluation of selected disclosures in the Report
• Evaluation of the presentation of the selected disclosures regarding sustainability
performance
• Performance of web conferences as part of the inspection of processes and guidelines
for data collection at the following locations: Linnich (Germany), Rayong (Thailand) and
Curitiba (Brazil)
• Assessment of CO₂ compensation certificates exclusively with regard to their existence,
but not with regard to their effect
Assurance Conclusion
Based on the assurance procedures performed and assurance evidence obtained, nothing
has come to our attention that causes us to believe that the disclosures denoted with
“
Data assured ” in the Company’s Report for the period from 1 January to 31 December 2022
have not been prepared, in all material aspects, in accordance with the relevant GRI-Criteria.
Annual Report 2022 Appendix
Assurance statement
413
Intended Use of the Assurance Report
We issue this report on the basis of the engagement agreed with the Company. The
assurance engagement has been performed for purposes of the Company and the report is
solely intended to inform the Company as to the results of the assurance engagement. The
report is not intended to provide third parties with support in making (financial) decisions.
Our responsibility lies solely toward the Company. We do not assume any responsibility
towards third parties.
Munich, 24 February 2023
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Hendrik Fink
Wirtschaftsprüfer
(German Public Auditor)
ppa. Christopher Hintze
Wirtschaftsprüfer
(German Public Auditor)
Annual Report 2022 Disclaimer and cautionary statement
The Annual Report contains certain “forward-looking statements” that are based on our current expectations,
assumptions, estimates and projections about us and our industry. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements,
and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”,
“project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance
should not be placed on such statements because, by their nature, forward-looking statements involve risks and
uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside
of the control of SIG Group AG (“SIG”, the “Company” or the “Group”), that may cause SIG’s business, strategy or
actual results to differ materially from the forward-looking statements (or from past results). For any factors that
could cause actual results to differ materially from the forward-looking statements contained in this Annual Report,
please see our offering circular for the issue of notes in June 2020. SIG undertakes no obligation to publicly update or
revise any of these forward-looking statements, whether to reflect new information, future events or circumstances
or otherwise. It should further be noted that past performance is not a guide to future performance. Persons requiring
advice should consult an independent adviser.
The declaration and payment by the Company of any future dividends and the amounts of any such dividends
will depend upon SIG’s ability to maintain its credit rating, its investments, results, financial condition, future
prospects, profits being available for distribution, consideration of certain covenants under the terms of outstanding
indebtedness and any other factors deemed by the Directors to be relevant at the time, subject always to the
requirements of applicable laws.
Definitions of the alternative performance measures used by SIG and their related reconciliations are posted under
the following link: https://www.sig.biz/investors/en/performance/definitions
Some financial information in this Annual Report has been rounded and, as a result, the figures shown as totals may
vary slightly from the exact arithmetical aggregation of the figures that precede them.
Annual Report 2022