Forward.
for better.
Annual Report 2023
1
Strategic Report
Our Governance
Financials
Appendix
Contents
Welcome to our 2023 annual report
Find out how we are delivering a
strong financial performance in
our regions and creating value for
our stakeholders. Our regions are
supported by industry-leading
innovation to help our customers
deliver food and beverages to
more people around the world
in a safe, sustainable, and
affordable way.
Value
creation
model
9
Read more
19
Regional
reviews
Forward.
for better.
Read more
Sustainability
38
Read more
Want the online experience?
Our 2023 online annual review offers an
interactive summary of our full Annual Report
including various download options.
https://annualreview2023.sig.biz
Strategic Report
Who we are
Our diversified global footprint
2023 results highlights
Forward. for better.
Packaging for better
Our superior value creation model
Business model
Chair and the CEO Statement
3
4
5
6
7
9
10
16
19 Business review
19
21
23
25
27
34
38 Corporate sustainability
Europe
India, Middle East and Africa (IMEA)
Asia Pacific
Americas
Financial review
Enterprise risk management
Our governance
120 Board of Directors
121 Group Executive Board
122 Corporate Governance Report
140
Letter from the Chair of the
Compensation Committee
141 Compensation Report
Financials
162 Consolidated financial statements
232 Financial statements of the Company
Appendix
242
243
247
257
259
Overview of ESG disclosures
Stakeholder engagement
Progress towards our sustainability targets
Contribution to the United Nations
Sustainability Development Goals
Greenhouse gas emissions basis
for reporting
EU Taxonomy
262
269 Task Force on Climate-related Financial
272
312
Disclosures (TCFD)
Global Reporting Initiative (GRI) content
index
Report on non-financial matters in
accordance with the Swiss Code of
Obligations
BackSIGAnnual Report 2023 Strategic
Report
In this section
Who we are
Our diversified global footprint
2023 results highlights
Forward. for better.
Packaging for better
Our superior value creation model
Business model
Chair and the CEO Statement
3
4
5
6
7
9
10
16
19 Business review
19
21
23
25
27
34
38 Corporate sustainability
Europe
India, Middle East and Africa (IMEA)
Asia Pacific
Americas
Financial review
Enterprise risk management
Strategic Report
Our Governance
Financials
Appendix
Contents
3
About us
Who
we are
SIG is a leading solutions provider of
packaging for better – better for our
customers, for consumers, and for the
world. With our unique portfolio of
aseptic carton, bag-in-box, and
spouted pouch, we work in
partnership with our customers to
bring food and beverage products to
consumers around the world in a safe,
sustainable, and affordable way.
Leading market positions
across packaging substrates
Spouted pouch
50ml – 500ml+ packs
Dairy & yogurt drinks,
fruit purees, baby food,
sauces
Aseptic &
chilled carton
65ml – 2ltr packs
Fruit juices, non-carbonated
soft drinks, liquid dairy and
plant-based alternatives,
liquid food
no. 2
global1, 2
Number of packs produced in 2023
Revenue split 2023
50bn+
2022: 49 billion
Valued customers
380+
1 Company estimate based on data from Euromonitor passport and Global Data.
2 Represents spouted pouch systems.
Aseptic carton – 77%
Chilled carton – 4%
Bag-in-box and spouted pouch – 19%
Aseptic
carton:
Chilled
carton:
no. 2
global1
no. 1
Asia1
Bag-in-box
2ltr – 1,300ltr packs
Food service, smart
dispensing in dairy,
water, beverage
concentrates, wine,
liquid food, tomato
products
no. 1
global1
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Financials
Appendix
Contents
About us continued
Our diversified global footprint
We have a diversified global footprint with a strong
presence in both established and emerging markets.
Aseptic carton in particular is strongly positioned in
emerging markets and we are leveraging this to further
expand bag-in-box and spouted pouch.
We enhance our functional expertise with knowledge sharing around
the world. We offer our customers globally outstanding levels of
technical engineering and service. Customers are also able to visit
our global Tech Centers where they experience first hand the power
of our innovation and are able to co-create exciting new offerings.
Our unique offering:
Strong presence in emerging markets
Functional expertise with knowledge
sharing globally
Technical engineering and service
Commercial synergies across packaging types
Significant global R&D network
Global People and Culture approach
for one SIG culture
Neuhausen, Switzerland
Global Headquarters / SIG R&D Hub
Northlake, USA
SIG R&D Center
Barcelona, Spain
SIG R&D Center
Suzhou, China
SIG R&D Center
Linnich, Germany
SIG R&D Center
Aseptic and chilled carton
production locations:
Bag-in-box and spouted
pouch production locations:
Sales & service
locations:
Product test
filling centers:
10
16
42 3
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Contents
About us continued
2023 highlights
Financial
Non-Financial
Revenue
Revenue growth at constant currency
Nutritious food delivered in SIG packaging
(liters)
Food packed with SIG Terra packaging materials
(liters)
€3.23bn
2022: €2.78bn
18.5%
2022: 27.4%
Adjusted EBITDA
Adjusted EBITDA margin
€803m
2022: €652m
24.9%
2022: 23.5%
Adjusted net income
Adjusted eps (per share)
€0.83
2022: €0.79
Leverage
2.7x
2023: 3.1x
€318m
2022: €287m
Free cash flow
€219m
2022: €263m
ROCE1
27%
2022: 25%2
1 Refer to page 31 for amended definition of ROCE.
2
Includes the ROCE EBITA of Scholle IPN and Evergreen
Asia from January 1, 2022.
3 Excludes bag-in-box and spouted pouch business
4 Aseptic carton business only.
5 Per 200,000 hours worked.
15.5bn
2022: 12.1bn3
1,544.2m
2022: 613.5m4
Food packed with SIG Terra packaging
materials (% of total packed in SIG packs)
Scope 1 and 2 greenhouse gas emissions
(thousand metric tons of CO2 equivalent)
5.3%
2022: 3.4%4
20.9
2022: 73.6
Renewable energy for production
Total recordable case rate5
100%
2022: 100%4
Sustainable engagement
(employee survey score)
85%
2022: 82%
0.80
2022: 0.83
Women on Group
Executive Board
40%
2022: 33%
Women in leadership
EcoVadis rating⁴
25%
2022: 23%3
Platinum
2022: Platinum
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Financials
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Contents
The world needs
more safe and
sustainable food
The world
must reduce
carbon
About us continued
Forward.
for better.
By 2050, the global population is expected
to hit roughly ten billion people.1 For the
food and beverage industry, that means
a 50-70%2 increase in food production to
keep up with demand. And enough safe
and sustainable packaging to match.
SIG works in partnership with its customers
to ensure consumers all over the world have
access to food and beverage products that
are safe, sustainable and affordable. That is
our goal for people and society, and that is
our purpose as a company.
We do this primarily through our proprietary
aseptic technology which ensures that the
liquid food and beverages that we pack are
shelf stable for up to twelve months and retain
all their nutrients. The benefits of aseptic
technology means that no cold chain is
required in distribution or storage which
ensures the products can be delivered
anywhere in the world. Thus, SIG plays an
important role in the food and beverage
value chain.
Our systems based business model combined
with our R&D capabilities and proven
track-record of delivering industry-leading
innovations puts us in an excellent position for
above-market growth in our core markets as
well as in new geographies, categories, and
channels.
That’s why we say at SIG: we’re here to keep
moving forward >> for better.
Samuel Sigrist
CEO
The world must
reduce plastic
and packaging
waste
The world
must protect
and regenerate
biodiversity
1 United Nations 2023.
2 Food and agriculture organization.
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Financials
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Contents
About us continued
Packaging
for better
At SIG, we are on a journey to create a net-positive impact
on people and planet along our four action areas:
We’re on a journey to create
packaging for better – packaging
that gives more to people and
the planet than it takes out.
SIG is well positioned to contribute to global goals
on climate, nature, circularity, and nutrition – and
to grow our business by helping our customers
meet demand for more sustainable products.
Our packaging already delivers safe, affordable,
shelf-stable nutrients to people without access to
refrigeration – with the smallest carbon footprint
compared to other types of packaging.
Now, we are leading the way towards fully
regenerative packaging systems.
Our sustainability approach is our roadmap for
better. It includes bold targets in four
interconnected action areas where we can make
the biggest difference: Climate+, Forest+,
Resource+, and Food+ (see right).
A strong focus on sustainable innovation drives
progress in all four action areas. Our sustainable
innovation journey continued this year with the
first commercial launches of our SIG Terra
Alu-free + Full barrier solution that cuts the
carbon footprint of our full barrier aseptic cartons
by 25%1, and a pilot of our circular solution for
bag-in-box with polymers linked to
post-consumer recycled plastics.2
We are committed to a science-based
approach to help us measure and report
progress towards our net positive ambition –
and catalyze our contribution to an equitable,
Net Zero, and nature positive future.
Our sustainability approach is underpinned by
our responsible culture. We remain steadfastly
committed to upholding high ethical standards
and striving to create positive impact for
people in our supply chain, our workforce,
and our communities.
Climate+
Removing more
carbon than we emit
Climate+
Forest+
Creating more
thriving forests
Forest+
Our
sustainability
approach
Resource+
Accelerating innovation
on circularity
Food+
Improving access to nutrition
and cutting food waste
Resource+
Food+
Sustainable innovation & Responsible culture
1 Based on independent ISO-compliant life-cycle assessment. Data has been critically reviewed and the full report will be published in 2024.
2 Via an independently certified mass balance system.
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Contents
Aseptic carton packs
Bag-in-box
Spouted pouch
• 28–70% lower carbon footprint than
• 80% lower carbon footprint than
plastic and glass bottles, and
aluminum cans1
glass bottles5
• 11–59% lower carbon footprint than
plastic tubs and glass jars7
• Made with 75% (on average) forest-based
renewable paperboard
• 100% FSC™-certified paperboard and
100% ASI-certified aluminum foil
• Fully recyclable by design
• Up to 63%2 further reduction in carbon
footprint with SIG Terra Aluminum-free3
and SIG Terra Forest-based polymers4
• 100% renewable electricity for production
• All non-renewable energy for production
compensated through Gold Standard
CO2 offsets
• Optimized product-to-package ratio
to pack more product with less material
• Optimized product-to-package ratio to
pack more product with less material
• Lightweight without compromising barrier
• Lightweight without compromising
functions or durability
barrier functions or durability
• High evacuation rate to cut food waste
• High evacuation rate to cut food waste
• Growing portfolio of SIG Terra recycle-
ready solutions, including first APR-
recognized recycle-ready bag-in-box6
• 100% renewable electricity for production
• All non-renewable energy for production
compensated through Gold Standard CO2
offsets
• Growing portfolio of SIG Terra
recycle-ready solutions
• 100% renewable electricity for production
• All non-renewable energy for production
compensated through Gold Standard
CO2 offsets
• Highly efficient filling technology with
• Highly efficient filling technology with
low waste rates
• Highly efficient filling technology with
low waste rates
industry-leading
waste rates of
0.5% or less
About us continued
Packaging for better continued
SIG packs offer the most
sustainable packaging
solutions in each relevant
market segment – and our
SIG Terra solutions reduce
their environmental impact
even further.
1 Based on independent ISO-compliant life-cycle assessments.
2 Based on independent ISO-compliant life-cycle assessment
CB-100734 for Europe.
3 No aluminum foil barrier layer.
4 Linked to renewable forest-based materials via an
independently certified mass balance system.
5 Based on preliminary results of our life-cycle analysis
(an independent, critically reviewed life-cycle assessment is
in progress).
6 Association of Plastic Recyclers (APR).
7 Based on preliminary results of our life-cycle analysis
(an independent, critically reviewed life-cycle assessment is
in progress).
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About us continued
Our distinctive model for superior value creation
1
4
3
2
5
Attractive industry
and end-markets
Established
platform
Industry-leading
innovations
Strategic
priorities
Superior value creation
for all our stakeholders
Structural drivers
Population growth
Leader in aseptic
packaging solutions
Increased disposable income
Demand for safe food
End-market trends
Health
Affordability
Sustainability
Convenience
Unique set of packaging
types and materials
Flexible and TCO-efficient
filling technology
Digital and technical services
Pioneers in sustainability
Leverage R&D capabilities
across packaging types
Aseptic technology
new levels of aseptic
performance
Filling capabilities
TCO advancements
and product versatility
Packaging differentiation
consumer centricity
Material science
& sustainability
next-level structure
development
SIG is present in an attractive industry in which long term
growth is driven by global population growth, increased
disposable income and demand for safe food.
We are a leader in aseptic carton solutions and plan to
expand our systems-based model to bag-in-box and
spouted pouch.
We can also leverage our R&D capabilities across
packaging types to create industry-leading innovations.
All this will enable us to generate superior returns for
shareholders with above market growth and best-in-class
profitability.
Customer
• Create total customer
satisfaction
•
Improve their experience
through operational excellence
• Apply solution-selling approach
• Position SIG as the industry's
innovation and sustainability
leader
People
• Buil a diverse workforce
and inclusive culture
• Uphold labour rights and
fair working conditions
• Listen and respond to our
people to sustain high levels
of job satisfaction
Sustainability
• Create more thriving forests
• Reduce our carbon footprint
•
Increase use of renewable
materials
• Strive to provide access to
safe and affordable nutrition
Growth
• Grow our core business
• Win new customers
• Enter new and emerging
categories
Customers
44 Net Promoter Score (NPS)
52 NPS delta to competition1
+34% Technical services uplift
+56% Customer satisfaction
People
85% global sustainable
engagement score
25% women in leadership
positions
0.49 lost-time case rate
Environment
Net Zero target for 2050
approved by SBTi
100% Renewable electricity
for production
90% Paper content in a
full-barrier aseptic carton
by 2030
Investors
+7.4% Organic revenue growth
24.9% Adjusted EBITDA margin
1 SIG NPS minus NPS of next best alternative
at a customer; NPS value ranges from
–100 to +100
• Leverage environmental benefits
within packaging solutions
27 % ROCE
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Contents
About us continued
Business model
1
Attractive
industry and
end-markets
Part of our overall strategy involves working
in highly attractive end-markets.
On a macro level, we expect that by 2030 there will be approximately
8.6 billion people on the planet – and 9.8 billion by 2050.1 Population
and economic growth will have a ripple effect on disposable income.
By 2030, the consumer class is expected to reach almost 5 billion
people. This means 1.3 billion more people with increased purchasing
power than today.2
To seize the opportunities from the increasing demand for food and
beverage products, we’ve built a strong platform that is uniquely
suited to cater to the most dominant consumer trends of our
industry:
Healthy nutrition
With innovative packaging solutions like SIG DomeMini and SIG Smile,
unique filling capabilities like our drinksplus or aseptic pouch
technology, and Tech Centers as co-creation hubs for our customers,
we position our customers to be well prepared for healthy growth.
1 World Economic Forum, accessed 2023
2 European Commission 2023
Affordability
Our packaging systems are
leading in Total Cost of Ownership
(TCO) and flexibility, helping our
customers to offer consumers
affordable products, meet
important price points, and keep
margins.
Sustainability
We are a sustainability leader
across substrates, with our
designed for recycling SIG Terra
portfolio offering the lowest
carbon packaging options on the
market – all of them ready to be
filled on our installed filler base
worldwide.
Convenience
Through a suite of innovative
bag-in-box packages that feature
connection fitments which draw
beverage bases and combines
them with any number of flavors,
we enable smart dispensing, so
our foodservice customers can
mass-customize their offerings
with greater accuracy, quality,
and efficiency.
Attractive industry and end-markets
Macro-trends
Population
growth
Increased
disposable
income
Demand for
safe food
End-market drivers
Health
Affordability
Sustainability
Convenience
SIG is uniquely positioned to capture
market and industry opportunities
Innovative
packaging
and filling
capabilities
Leading in
TCO and
flexible
systems
Sustainability
leader across
packaging
substrates
Key
packaging
supplier in
food service
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About us continued
Business model
2
Our established
platform
Through decades of experience, expertise, and know-how of all
the benefits of aseptic systems and how it can transform for the
food and beverage industry, we are helping our customers
provide consumers with nutritional end products.
What’s more, by combining our innovative
packaging materials, aseptic filling technology,
versatile packaging solutions, technical and
digital services and strong global R&D network,
we’ve built ourselves into one of the few true
aseptic system suppliers in the world.
• By creating our systems with a TCO-mindset,
our solutions offer best-in-class economics
• We offer a unique packaging portfolio of carton,
bag-in-box and spouted pouch, catering to
diverse customer demands and consumer
needs
• We are pioneers in sustainable packaging.
That includes sourcing of certified raw
materials, using renewable energy in our
processes, and achieving numerous industry
firsts with our packaging innovations
• Our in-depth commercial excellence framework
including stakeholder, Total Cost of Ownership
(TCO), and pain point analysis allows us to truly
understand customer demand and rigorously
apply value-based solution selling, pricing, and
deal structuring
This winning business model has made SIG the
world’s number one in bag-in-box and number
two in aseptic carton and spouted pouch
systems, and Asia’s number one in chilled carton.
Established platform
Leader in aseptic packaging solutions
Unique set of
packaging
types and
materials
Flexible and
TCO-efficient
filling
technology
Digital and
technical
services
Pioneers in
sustainability
Strong global operational
and commercial foothold
Commercial excellence and
system-based business model
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About us continued
Business model
3
Industry-leading
innovations
Over the decades, we have developed our position as an
innovation leader in food & beverage packaging; a position we
have achieved due to our versatile R&D capabilities across
diverse packaging types and our track record of industry-firsts.
Leveraging our robust research and development expertise, we
redefine the boundaries of packaging solutions, so that they are
not only cutting-edge but also ahead of the evolving demands of
the market.
A cornerstone of our innovation capabilities lies in
aseptic technology, an area where we
consistently achieve new levels of performance.
By pushing the boundaries of aseptic excellence,
we’re setting industry standards, providing the
highest levels of hygiene and product safety.
At the same time, our focus on Total Cost of
Ownership (TCO) and filling capabilities enables
our customers to fill a unique variety of products
with leading operational efficiency .
True innovation comes from unique insights that
are carefully collected, tested, analysed, refined
and retested. SIG’s consumer-centric innovation
process starts by discovering the need and
generating ideas, and ends with concept testing
and implementation. In our R&D process, we fail
fast, learn quickly and try and try again until a real
innovation reveals itself – one that answers a
genuine customer problem or consumer need.
Material science plays an important role for
creating differentiated packaging that is relevant
for consumers. And it plays a key role in
developing next-generation sustainable
packaging materials. Using innovative materials
and design principles to make our best-in-class
packaging substrates even more sustainable by
further lowering their carbon footprint, simplifying
recyclability, and maximizing renewability.
Pushing us further on our journey to create
packaging for better – packaging that gives more
to people and the planet than it takes out.
Industry-leading innovations
Leverage R&D capabilities across packaging types
Aseptic technology
Reaching new levels of aseptic performance
Filling capabilities
TCO advancements and product versatility
Packaging differentiation
Consumer centricity
Material science & sustainability
Next-level structure development
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Financials
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About us continued
Business model
4
Strategic
priorities
Our strategic priorities are a key element
of our corporate compass that we use to
share a common goal and define our
way of working.
Founded on three clear principles,
our compass guides the choices we
make every day.
Sustainability
Read more
S h a p e the future
Our purpose
Growth
Read more
T
a
k
e
o
w
n
Our dream
e
rs
hip
er
k c ustom
h i n
T
Customer
Read more
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.
People
Read more
Our principles
• Shape the future
• Think customer
• Take ownership
Growth brings us closer to our dream and creates sustainable value for our stakeholders.
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Financials
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About us continued
Business model
Growth
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.
Customer
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.
People
Strategic priorities:
Diversity, equity and inclusion
Promote gender equality by executing
our diversity, equity & inclusion roadmap
on gender balance.
Employee satisfaction
Further increase our sustainable employee
engagement score by driving our culture
and fostering transformational leadership.
Fair labour practices
Uphold labour rights and provide fair
working conditions.
Talent development
Achieve zero lost time cases (LTC)
by rigorously creating a ‘safety first’
work environment.
Sustainability
Strategic priorities:
Forest+
Creating more thriving forests.
Climate+
Removing more carbon than we emit.
Resource+
Accelerating innovation on circularity.
Food+
Improving access to nutrition & cutting
food waste.
Our progress:
Aseptic filling
machine placements
2023
2022
2021
1 SIG NPS minus NPS of next best alternative at a
customer NPS value ranges from –100 to +100.
Our progress:
Net Promoter Score (NPS) –
Delta to competition¹
Our progress:
Percentage of women
in leadership positions
Goal
2025
30%
Our progress:
Total Scope 1 and 2 greenhouse gas
emissions for our production
(thousand tonnes CO2 equivalent)
91
91
76
2023
-8
2022
-5
2021
-10
44
38
30
2023
2022
2021
25%
23%
20%
2023
2022
2021
20.9
73.6
75.9
See Financial Review for more on our
revenue growth and financial performance
See our regional sections for more
on our customer offering
See the Our people section for more on our culture
and offering for our people
See our Sustainability section for more
on our sustainability
SIGAnnual Report 2023 15
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Financials
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About us continued
Business model
5
Superior
value creation
We have a multi-faceted
growth strategy which aims to
deliver above market growth
and best-in-class profitability.
The strategy builds on our
strong technology platform and
commercial footprint, and the
attractive end-markets in which
we operate.
We target market share gain in our core business
including liquid dairy, food and beverage
concentrates.
We will continue our track record of geographical
expansion with the opening of our new plant in
India and further penetration of white spaces in
Middle East and Africa and Latin America.
We will advance in new categories including
plant-based products, drinking yogurt and
nutritional drinks.
And we will advance in new channels such as
quick service coffee chains, where we can help
customers meet increasingly differentiated
consumer choices.
Underpinning our strategy is our focus on
sustainability across substrates. This will ensure
that we create superior value for customers,
consumers and the environment.
Progress in 2023
Strong revenue growth including 7.4%
organic aseptic carton growth while Group
adjusted EBITDA increased by 23% to
€803 million. The adjusted EBITDA margin
rose by 140 basis points to 24.9%. This is
testimony to our strong business model
and our ability to secure price increases in
a challenging environment, volumes were
muted due to elevated levels of food
price inflation.
Free cash flow generation for the period
was €219 million (free cash flow 2022:
€263 million). This was after a 74% increase
in net capital expenditure to €251 million
compared with €144 million in 2022, as the
Group invested in its production capacity
and assembly of filling machines given high
levels of demand.
During the year, SIG repaid €227 million of
gross debt and we are pleased to report a
reduction in net leverage from 3.1 to
2.7 times.
Given our commitment to a progressive
dividend payout and the strong
fundamentals of our business, we are
proposing to increase the dividend to
CHF 0.48 per share, compared with
CHF 0.47 per share in 2022.
Adjusted EBITDA margin
24.9%
2022: 23.5%
Free cash flow
€219m
2022: €263 million
Increase in net capital expenditure
74%
2022: €144 million
Reduction of gross debt
€227m
1 Adjusted EBITDA footnote
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Chairman and CEO statement
A successful
business
model
Andreas Umbach
Chairman
2023 was a particularly active
year for the Group as it further
developed as a packaging
provider of choice for liquid
food and beverage producers.
Having integrated bag-in-box, spouted pouch
and chilled carton into our portfolio, we now offer
our customers a broad range of packaging
solutions from which they can select the options
that suit them best. Importantly, this allows SIG to
access new opportunities in new geographies
and in new market segments, often with a similar
customer base, where the benefits of aseptic
packaging are well recognized.
At the core of SIG’s offering is our unique aseptic
filling technology developed through our own
proprietary knowledge built up over many
decades of investment. Our solutions guarantee
the shelf life and nutritional value of liquid food
and beverages for up to 12 months without the
use of preservatives. By avoiding the need for a
cold chain, carbon emissions are reduced and
more people have access to essential nutrition,
particularly in emerging markets. We continue to
develop new categories and packaging formats
in aseptic carton. Customers are able to visit our
global Tech Centers where they experience
first-hand the power of our innovation and are
able to co-create exciting new offerings.
At the core of SIG’s
offering is our unique
aseptic filling technology
developed through
our own proprietary
knowledge built up
over many decades
of investment.
Samuel Sigrist
CEO
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Chairman and CEO statement continued
The addition of bag-in-box and spouted pouch
has further expanded our reach and has brought
new innovation capabilities. In bag-in-box, we are
positioning SIG as a key supplier for the
automation of the food service sector, further
strengthening our relationships with the leading
multi-national food service companies who
operate tens of thousands of quick service
restaurants globally. We are driving growth in the
global aseptic spouted pouch market by
developing a next generation systems-based
solution for aseptic pouches, drawing on our
proven aseptic carton technology.
Our strategy for the enlarged business is to
leverage our established platform of service
engineers, customer relationships, testing
facilities and R&D capabilities to capitalize on
new customer opportunities. We are developing
cross-market regional capabilities and bringing
together our technology expertise of all our
substrates around the world. We continue to
identify and to realize cross-selling wins between
our different substrates, demonstrating the
attractiveness of a broader product offering to
our food and beverage customers.
Sustainability is now a key concern for our
customers worldwide. We can offer sustainable
solutions with the lowest carbon footprint for all
our packaging substrates compared to
competing substrates.
Independent life-cycle assessments show that
our carton, bag-in-box, and spouted pouch
solutions offer up to 80% lower carbon footprints
compared with other types of packaging, such as
glass, plastic tubs and bottles, or cans.1 We firmly
believe that sustainable packaging must play a
role in the world’s climate crisis – which means
delivering the lowest carbon solutions using
renewable materials that are sustainably sourced
and kept in circulation through recycling.
Our strong focus on sustainable innovation is
driving progress towards circular and even lower
carbon packaging solutions. In 2023, we set bold
new targets to offer a full-barrier aseptic carton
with at least 85% paper content (excluding
closure) by 2025 and at least 90% (including
closure) by 2030, enabling our cartons to be
recycled in regions where only paper recycling
streams are available. For bag-in-box and
spouted pouch we have committed to offer
recycle-ready2 solutions for all our relevant
market segments by 2025.
Our sustainability ambition goes beyond the
structure of our packs to cover our entire
operations. In 2023, SIG received approval for its
Group-wide Net-Zero science-based target from
the Science Based Targets initiative (SBTi). We
have committed to reach net-zero greenhouse
gas emissions across our value chain by 2050.
Of the 2,000+ companies globally with a public
net-zero pledge, SIG was among the first 325
companies to have its targets validated and
approved by the SBTi.
1 For a wide range of food and beverages, based on independent critically reviewed life-cycle assessments for
beverage cartons conducted in line with ISO 14040 and ISO 14044 standards, and on preliminary results of our
life-cycle analysis of bag-in-box and spouted pouch solutions (an independent, critically reviewed life-cycle
assessment for these solutions is in progress).
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
2
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Chairman and CEO statement continued
While SIG made significant progress in developing
its packaging offering in 2023, the external
environment remained challenging for both
customers and consumers, given inflationary
pressures and rising interest rates. While this did
affect volume growth, the business continued to
perform well with revenue growth at constant
currency of 18.5%, including acquisitions, and
organic sales growth for the aseptic carton
business of 7.4% at constant currency. This is
testimony to our strong business model and our
ability to secure price increases in an inflationary
environment.
opportunities. We are expanding our
manufacturing facilities around the world and
especially in emerging markets, with new aseptic
carton plants in Mexico and India and a new
chilled carton plant in China. We are also
expanding bag-in-box capacity in the USA and
are investing in digital printing in Europe. Capital
expenditure also covers the construction of new
filling machines in response to high levels of
customer demand. In 2023, for the second year
running, we placed over 90 filling lines in the field
and these placements are a leading indicator of
future growth.
Adjusted EBITDA grew by 23% to €803 million
representing an adjusted EBITDA margin of
24.9%, up 140 basis points compared with the
prior year. Free cash flow generation for the
period was €219 million (2022: €263 million) after
an increase in net capital expenditure to
€251 million compared with €144 million in 2022.
This reflected investments to meet customer
demand and to capitalize on future growth
While making these significant investments, we
remained within our mid-term guidance range for
net capital expenditure of 7% to 9% of revenue.
We were also able to reduce gross debt by
€227 million during the year, and we are pleased
to report a reduction in net leverage from 3.1 to
2.7 times.
Given our commitment to a progressive dividend
payout and the strong fundamentals of our
business, we are proposing to increase the
dividend to CHF 0.48 per share, compared
with CHF 0.47 per share in 2022.
We believe that our distinctive business
model and the strong environmental
credentials of our packaging
substrates will ensure our success
for many years to come.
Our non-financial targets include a commitment
to increasing the number of women in leadership
positions within the Company. Our target is to
have 30% of these positions filled by women by
2025. In 2023, we reached our interim target of
25%, which compares with 23% in 2022. Following
the appointment of Anne Erkens as Chief
Financial Officer, the proportion of women on
the Group Executive Board increased to 40%
in 2023. Women currently represent one third
of the members of our Board of Directors.
We systematically meet with investors to discuss
governance topics. With respect to the
remuneration of our Group Executive Board, this
year we have enhanced disclosures relating to the
targets as well as the achievements of our short-
and long-term incentive plan. Further details can
be found in our Compensation Report.
On behalf of the Board of Directors, we would like
to thank the SIG teams around the world for their
inspiring work and absolute dedication to
delivering value to all stakeholders.
In 2023, SIG celebrated its 170th anniversary.
While the Company has evolved over time,
our commitment to delivering better for
customers, consumers, and the world has
remained unchanged. Building on our history
of ingenuity and innovation, we continue to win
new customers and to lead the way in advancing
the sustainability of packaging for safe and
affordable food. We believe that our distinctive
business model and the strong environmental
credentials of our packaging substrates will
ensure our success for many years to come.
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Business review
Regional review
Europe
SIG has a strong track record of growth
in Europe, with share gains in all our
aseptic carton food and beverage
segments – dairy, including plant-based
milk alternatives, non-carbonated
soft drinks, and food. We are already
expanding our aseptic system solutions
in bag-in-box and spouted pouch.
Our technology serves diversifying
consumer needs, with our leading
sustainability offering underpinned
by operational excellence and future
proof flexibility.
José Mathijsse
President & General Manager
2023 market
& overview
In 2023, consumer spending
in Europe was affected by
the economic environment,
including higher prices. In
this context, the attractive
total cost of ownership for
our systems and their
unrivalled flexibility were
vital in supporting our
customers.
70%
of consumers want to buy
sustainable products
Even in this environment, sustainability
remained a key consideration for both
customers and consumers, with more
than 70% of consumers wanting to buy
sustainable products.1 In addition to
consumer demands, food and beverage
producers have to cater to regulatory
requirements, and retailers are
accelerating the adoption of new
and exacting standards.
1 At Bain & Company, 2023., McKinsey & Company
and NielsenIQ, 2023
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Performance
highlights
Europe registered strong
growth in 2023, driven by price
increases. These were
necessary to offset cost
inflation, notably the high raw
material, energy and freight
costs incurred during the
previous year.
The region continued its trajectory of share gain,
winning new filling line contracts in food, dairy
and plant-based milk alter natives. Geographic
expansion also contributed to growth, with new
business in Finland, Hungary, the Czech Republic
and Romania.
Sustainability continues to be an important
driver of share gain in Europe, with an
increasing number of customers adopting
SIG Terra solutions.
The solutions approach
Solarec, Belgium’s largest dairy company,
installed four SIG filling machines to replace
its previous production lines. In doing so,
Solarec achieved several goals at once:
• Optimize production by fully utilizing the
potential of SIG's state-of-the-art, flexible,
and highly efficient filling technology.
• Offer retail customers a wide range of even
more sustainable packaging solutions –
including tethered caps, which ensure that
the closure can be recycled together with
the carton. Solarec will fill dairy products
under its “Véritable lait d'Ardenne” brand in
SIG Terra MidiFit, which contains polymers
that are 100% linked to forest-based,
renewable materials. This results in a 52%
CO2 saving compared with a standard SIG
pack.
• Through a long-term service partnership,
Solarec will be able to deploy SIG’s
end-to-end digital solutions, which utilize
the power of data for ultimate productivity
and efficiency on the filling line.
Looking
ahead
The Europe region will build on
its strong customer base to grow
across segments and substrates.
SIG is recognized in the market
for its leadership in sustainable
solutions and is ideally placed to
capture the ongoing growth in
demand for the most sustainable
packaging.
Convenience and health are also important
trends, presenting multiple opportunities in
spouted pouch and bag-in-box. In retail, pouches
can deliver healthy nutrition with a focus on kids.
In food service, bag-in-box can deliver both dairy
products and beverage concentrates, enabling
operators to meet strong demand in the most
efficient way.
It was time to take a leap into
the future. For us, SIG is the
best partner for this, because
we get excellent filling
machine technology,
sustainable packs, state-of-
the-art digital solutions, and
outstanding service from a
single source. As a result, we
not only pack our own
products efficiently and
sustainably, but also offer a
broader portfolio to our retail
customers.
Louis Ska
CEO at Solarec
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IMEA
In IMEA we have established a strong
foothold based on our affordability and
innovation capabilities. We have expanded
regional growth with our top tier partners
and are now present in more than
30 countries. Our growth in aseptic carton
has been driven by our product, format
and volume flexibility. Now, the addition
of bag-in-box and spouted pouch to our
portfolio is bringing numerous opportunities
to meet new and evolving trends.
Abdelghany Eladib
President & General Manager
2023 market
& overview
The IMEA region has one
of 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.
Milk consumption in the region
12ltr
per capita
There is an urgent need to provide
affordable and nutritious food and
beverages to consumers with income
levels that are still relatively low. As cold
chains are lacking in many parts of the
region, aseptic carton and spouted pouch
are ideal ways of bringing more products
to more people.
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Performance
highlights
Growth benefited from price
increases offsetting cost inflation
and from the ramp-up of new
filling lines in South Africa and
Saudi Arabia. Liquid dairy
remained a key growth driver,
with milk consumption in the
region currently low at 12 liters
per capita.1
We also saw customers such as Tchin Lait in
Algeria and Lactalis in South Africa using our
cartons to expand into the food and culinary
category.
Through our new partnership with Parlé Agro,
we are expanding our footprint in non-carbonated
soft drinks. Parlé Agro, the industry leader in India,
was until 2022 exclusively a customer of our main
competitor. They were encouraged to engage
with SIG by the flexibility of our machine
solutions, which has enabled them to achieve
the magic price point of Rp 5 for portion packs
of their renowned fruit drinks.
In April we opened our second plant in Palghar,
India for bag-in-box and spouted pouch.
The plant has 15,000 m2 of vertically integrated
production capacity and puts us in a strong
position to serve the Indian market in aseptic
processed fruits, beverage concentrates,
fruit puree, and aseptic dairy for foodservice
channels.
Driving dairy
India is the largest milk market in the world,
with more than 220 billion liters consumed
annually. However, only 16% of total volume
is packaged – the remainder is consumed
locally or distributed through unorganized
channels. The advantages of aseptic
packaging, which avoids the need for cold
chain distribution, are clear.2
The share of aseptic carton within the liquid
dairy packaged sector is currently small but
is increasing rapidly, and we expect the dairy
sector to become increasingly organized in
favour of carton. SIG is ready to leverage
this opportunity with its local commercial
and service organisation and its
partnerships with leading brands.
In 2023 we supplied Milky Mist Dairy Food
Private Limited with three high-speed SIG
filling machines for aseptic carton packs.
These will enable the company to expand
its offering, increase its output, and provide
innovative packaging solutions to Indian
consumers.1
With the help of sophisticated
SIG filling technology, we will
explore our packaging options
to meet the diverse needs of
our consumers. The flexibility
offered by SIG in terms of
formats, volumes and products
can help us speed up our
processes and reduce costs.
Dr K. Rathnam,
CEO, Milky Mist Dairy
Looking
ahead
Our ability to serve our Indian
customers will be further
enhanced by the opening of our
first aseptic carton plant in the
country, which is scheduled to
commence production at the
end of 2024. The plant will supply
our growing filler base which
already stands at around 40
machines – serving all leading
dairy and non-carbonated soft
drink players.
While continuing to grow the aseptic carton
business, we will actively seek out more cross-
selling opportunities for bag-in-box and spouted
pouch. We already have proof points for the
attractiveness of our expanded portfolio:
Al Naseem, one of the largest food companies
in Libya, is adopting spouted pouch to fill drinking
yogurts. Like other customers, they are being
supported by our unique Technology Center
in Dubai.
1 E uromonitor Passport 2022, reflecting ambient and
chilled consumption of white and flavored milk
2 Dairy Industry in India: IMARC 2023 Edition; SIG analysis,
2023.
3 E uromonitor Passport 2022, reflecting ambient and
chilled consumption of white and flavored milk
4 Dairy Industry in India: IMARC 2023 Edition; SIG analysis,
2023.
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Asia Pacific
SIG has built a substantial presence in the
Asia Pacific region focused on liquid dairy,
which continues to represent a huge growth
opportunity. We have expanded our potential
with our entry into the chilled carton
business, which was successfully integrated
in 2023. We are busy enhancing innovation
in this segment of the market and have
already identified a number of cross-selling
opportunities with the aseptic
carton business.
Angela Lu
President & General Manager
2023 market
& overview
The Asia Pacific region
continues to be a highly
attractive growth market
– not just because of its
large populations but also
because of a rising middle
class, with evolving tastes
and a focus on nutrition.
Milk consumption in South East Asia
7.4ltr
per capita
Today, there are still vastly different levels
of milk consumption in the region, with
7.4 litres per capita in South East Asia1
compared with 12 litres in China.1 And this
pales into insignificance compared with
Europe, with 47 litres per capita.
Key to expansion in the dairy segment is
affordability, creating a need for flexible
small pack-size options.
1 Euromonitor Passport 2022, reflecting ambient and
chilled consumption of white and flavored milk.
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Performance
highlights
In early 2023, volumes were
affected by a COVID-19 outbreak
in China in January and also by
the timing of the Chinese New
Year. Volumes recovered in the
course of the year and were
augmented by price increases.
SIG successfully met the demand for smaller
packs, which was increased by inflationary
pressures. We enabled our customers to offer
premium products such as fortified kids’ milk at
smart price points. Our aseptic carton packaging
can also be adapted for different distribution
outlets. Customers can run nine different
XSLimBloc sizes on a single filling line, enabling
them to offer an 80ml format for traditional
stores and larger sizes for convenience stores
and supermarkets.
Sustainability partnership
In China, sustainability is gaining importance
as a key differentiation factor. Yili, the largest
dairy company in the APAC region, is a
frontrunner in taking up this challenge.
SIG’s partnership with Yili goes back more
than two decades and has been based on our
technology and service strengths. Now, that
partnership is helping Yili to pursue its goal of
carbon neutrality. In early 2023 Yili launched a
range of “Green” Satine products in SIG Terra
Alu-free cartons, to be followed in the second
half of the year by “Green” Yili Pure Milk. At the
Yili Group’s first Global Partner Zero Carbon
Alliance Summit, SIG was honored as a
Low-Carbon Pioneer.
SIG has ambitious objectives for sustainability
in China. We are targeting an upgrade to
alu-free of all portion packs produced by
SIG China within the next five years. And
we further plan to develop a comprehensive
range of innovative products with
sustainability features.
Looking
ahead
In Asia Pacific, we will continue
to leverage demand for value
add, differentiation, and
sustainability.
We will also exploit the considerable scope for
chilled products in metropolitan cities, which
represent a market of more than five million
people. For bag-in-box the opportunity lies in
the dining out trend, and particularly in the rapid
expansion of coffee chains. We will strengthen
our system offering with local partnerships for
smart dispensing, building on our track record
in the Americas.
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Americas
The Americas is a region of immense opportunities.
In Brazil and Mexico we are leveraging our
partnerships and portfolio to sustain our track
record of growth. In the US foodservice market,
we play a mission-critical role in ensuring continuity
of supply and cutting-edge convenience for
leading players.
Ricardo Rodriguez
President & General Manager
2023 market
& overview
The addition of bag-in-box
to SIG’s portfolio has
significantly expanded its
access to the food service
segment.
The USA is the largest food service
market in the world with more than
195,000 quick service restaurant
franchises.1
The market is growing fast and operators
are looking to increase efficiency and
reduce queuing times through
automation. This plays into the hands
of SIG bag-in-box solutions, which are
deeply embedded in the customer value
chain and offer superior performance
and leading innovation.
With its aseptic carton business, SIG
supplies co-manufacturers in North
America, who serve small start-up
companies in areas such as plant-based
beverages and nutritional drinks, as well
as food service producers. The aseptic
carton business in the USA is benefiting
from a shift away from fresh to shelf-
stable milk, driven by the implementation
of school milk programs.
Brazil and Mexico are two of the largest
aseptic carton markets in the world –
number two and number six, respectively.
These markets feature strong global and
local players for whom integrated
solutions are a key attraction.
1 Source: Statista.
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Performance
highlights
The Americas delivered robust
growth across the region.
Volume growth was supported
by the deployment of new filling
lines for portion packs in South
America. Both aseptic carton
and bag-in-box expanded in
food service.
Cross-selling wins continued, with aseptic
spouted pouch and bag-in-box gaining business
with carton customers in the USA and Brazil.
Commercial production commenced at our
new plant in Querétaro, Mexico in
February 2023. Designed for the printing,
cutting, and finishing of carton sleeves, it has
a highly flexible layout with a focus on
ergonomics and the environment. The plant
will enable us to keep up with the growing
demand for aseptic carton packs and to serve
our North American customers faster and more
efficiently. We will be able to respond rapidly
to changes in demand and reduce delivery
lead times.
Driving digital
Solutions-selling for major customers
comprises filling flexibility and high speed;
price and design flexibility; and digital services.
15% of Brazilian companies have already
implemented digital solutions and a further
46% plan to do so.1
In 2023 Britvic, one of the largest companies in
the world in the non-alcoholic beverage sector,
announced the adoption of SIG’s PAC.TRUST
solution for the digitalization of its laboratory
analysis processes at its Brazilian operations.
The modules chosen by Britvic reduce the time
spent on data collection, increase information
security and give real-time visibility to quality
processes, enabling faster and more accurate
decision-making.
Britvic is a company committed to the quality and
safety of its products. We are always innovating and
looking for alternative solutions to improve our
processes. With SIG's PAC.TRUST we are one step
ahead of other companies in our industry, with a
solution that allows us to digitalize internal
production processes, automating all laboratory
analyses at our plants.
Petro Toé
Industrial Head for Britvic in Brazil
1 Source: www.portaldaindustria.com.br
Looking
ahead
We have already started to
leverage SIG’s knowledge
and strong track record in
countries neighbouring Brazil –
Peru, Argentina, Chile, Colombia,
and Ecuador.
We are entering into local partnerships with both
global and multi-national players in these
countries. The initiatives are allowing us to expand
our footprint, while leveraging our production
capacity at Curitiba in Brazil.
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Financial review
Financial
review
2023 financial results highlight
strong business profile.
We are pleased with SIG’s strong revenue
performance amid some softness in our
end- markets due to food price inflation
impacting demand. We continue to identify and
to realize cross-selling wins between our
different substrates underpinning our strategy
to offer a broader product portfolio to our food
and beverage customers.
We are pleased to have placed another 91
aseptic carton filling lines in 2023, the same
level as 2022. This performance for two
successive years is a new record for the
Group and demonstrates that our distinctive
systems-based offering remains highly
attractive to our customers when making
long term investment decisions.
We believe the strong cash generative nature
of our business model combined with our
excellent ESG credentials of our packaging
substrates will ensure our success for many
years to come.
Part of the consideration for Scholle IPN is
contingent on the acquired bag-in-box and
spouted pouch businesses outperforming the
top end of the Group’s mid-term revenue growth
guidance of 4-6% per year for the year ended
December 31, 2023 and the years ending
December 31, 2024 and 2025. No payment is
expected by the Group for the first contingent
consideration period ended December 31, 2023.
For further details, refer to notes 28 and 33 of the
consolidated financial statements for year ended
December 31, 2023.
Financial performance
Revenue
Revenue in 2023 increased by 18.5% on a
constant currency basis (16.2% as reported)
to €3,230.3 million (2022: €2,779.9 million).
Excluding the acquisitions, revenue increased
by 7.4%. Organic growth of the aseptic carton
business was driven by price increases to
recover past cost inflation. On a proforma basis,
bag-in-box and spouted pouch revenue increased
by 5.6%1 and contributed €604.0 million to Group
revenue (€362.6 million in 2022, since acquisition).
The chilled carton business reported solid growth,
contributing €137.8 million (€60.2 million in 2022)
to Group revenue in 2023.
Key events in 2023 impacting
the performance of the Group
Refinancing
The Group accessed an unsecured bridge loan
facility of €350 million on June 16, 2023.
The proceeds from this bridge loan, together
with available cash, were used to repay
€450 million of the Group’s senior unsecured
notes on June 20, 2023. The bridge loan facility
was repaid in the last quarter of 2023.
Changes in segment reporting
The Group changed its internal reporting
structure as of November 1, 2023. India and the
Middle East and Africa (“MEA”) are now reported
together as India, Middle East and Africa (“IMEA”).
The Group’s Indian operations were previously
reported as part of the Asia Pacific (“APAC”)
segment. The change was made to better
leverage similarities in consumer needs and
consumption patterns.
The segment information presented in this
Financial Review is presented as if the above
changes had taken place as of January 1, 2022.
Updates on 2022 acquisitions
In 2022, SIG acquired 100% of Scholle IPN as well
as Evergreen’s chilled carton business in Asia
Pacific (“Evergreen Asia”) from Evergreen
Packaging International LLC (“Evergreen”).
Scholle IPN provides bag-in-box and spouted
pouch packaging solutions for food and
beverages while Evergreen Asia provides chilled
carton packaging solutions in Asia. For both
acquisitions, the acquisition accounting is now
final. There have been no material adjustments to
the fair values initially recognized.
1 Proforma bag-in-box/spouted pouch constant currency growth
excluding resin escalator impact., unaudited. Proforma
constant currency revenue growth for bag-in-box and spouted
pouch was 2.9%, unaudited.
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Revenue growth in the segments
Total revenue 20231
by segment
Total:
3,230
€ million
Europe – 984
IMEA – 404
APAC – 936
Americas – 905
Revenue by product 2023
Carton vs bag-in-box and spouted pouch
The revenue contribution from the bag-in-box
and spouted pouch businesses was €22.8 million
(€16.9 million in 2022).
Asia Pacific (“APAC”)
In Asia Pacific, revenue growth at constant
currency, including the aseptic and chilled carton
business as well as the bag-in-box and spouted
pouch businesses, was 13.9% in 2023. Aseptic
carton organic revenue growth at constant
currency was 1.5% compared to the prior year.
Aseptic carton volumes were affected by a
COVID-19 outbreak in China in the first quarter
of the year and by the timing of Chinese New
Year. Volumes subsequently recovered over
the course of the year.
Americas
Revenue growth at constant currency in the
Americas was 29.4% in 2023, including the
contribution from the bag-in-box and spouted
pouch businesses. Organic revenue growth of
the aseptic carton business, on a constant
currency basis, was 10.8%.
In the aseptic carton business, the Americas
delivered robust growth across the region. Price
increases and the deployment of new filling lines
for portion packs contributed to growth,
especially in Brazil. SIG continues to win new
business due to its unique ability to offer flexible
packaging sizes to help customers manage the
impact of higher input costs for the food and
beverages they package.
SIG DomeMini, the single serve carton that is
shaped like a bottle, was commercially launched
with a customer in China and the Group’s alu-free
packaging was rolled out with the two largest
customers in the country.
The region saw good volume growth in Southeast
Asia, notably in Vietnam, as the Group’s flexible
filling solutions for a range of carton sizes helped
customers tackle inflation.
In the USA, both the aseptic carton and the
bag-in-box businesses expanded in food service
while private label and school milk performed well
in the aseptic carton business.
The Group was pleased to ramp-up production of
its new aseptic carton plant in Mexico. The facility
has been well received by local customers and
has helped unlock new market opportunities in
the region and reduce delivery times.
The chilled carton business showed strong
volume growth in APAC, especially in China.
The business is achieving growth ahead of the
market due to product improvements and
enhanced customer service in line with SIG’s
quality standards.
The revenue contribution from the bag-in-box,
spouted pouch and chilled carton businesses was
€193.3 million for 2023 (€95.9 million in 2022).
Revenue contribution from the bag-in-box and
spouted pouch businesses was €378.4 million
for 2023 (€229.9 million in 2022).
Europe
In Europe, revenue growth at constant currency,
including the aseptic carton, bag-in-box and
spouted pouch businesses, was 17.1% in 2023.
Aseptic carton organic revenue growth at
constant currency was 9.9% compared with
the prior year.
In the aseptic carton business, the region
continued its trajectory of share gains, winning
new filling line contracts in food, dairy and
plant-based milk alternatives. Geographic
expansion also contributed to growth, with new
business in Finland, Hungary, the Czech Republic
and Romania.
Price increases, that were necessary to offset
cost inflation, were successfully implemented
in 2023. Out of all SIG’s segments, Europe
experienced the highest raw material and
energy cost increases in 2022.
The revenue contribution from the bag-in-box
and spouted pouch businesses was €147.3 million
for 2023 (€80.1 million in 2022).
India, Middle East and Africa (“IMEA”)
In IMEA, revenue growth at constant currency,
including the aseptic carton, bag-in-box and
spouted pouch businesses, was 11.3% in 2023.
Aseptic carton organic revenue growth on a
constant currency basis was 9.9% compared
with the prior year.
Organic revenue growth in IMEA benefited from
price increases to offset cost inflation and from
the ramp-up of new filling lines in South Africa
and Saudi Arabia. Liquid dairy remained a key
growth driver, while we also saw customers in
Algeria and South Africa use our cartons to
expand into the food and culinary categories.
India recorded significant revenue growth
compared with the prior year as well as demand
for new filling lines. As of December 31, 2023,
it had placed around 40 filling lines in field.
Construction of our first aseptic carton plant
in India is on track and is expected to commence
production at the end of 2024.
Carton – 81%
Bag-in-box and spouted pouch – 19%
1
Includes Group Functions.
SIGAnnual Report 2023 29
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Financials
Appendix
Contents
Business review continued
Financial review continued
Seasonality
The Group’s aseptic carton business experiences
moderate seasonal fluctuations, primarily due to
seasonal consumption patterns and performance
incentive programs 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
qualify for 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 bag-in-box,
spouted pouch and chilled carton businesses
are not significantly exposed to seasonality.
Revenue split 2023
7%
70%
17%
6%
Equipment
Carton business
Bag-in-box & spouted pouch business
Service
Adjusted EBITDA 20231
by segment
Net capex 20231
by segment
SIG aseptic filling machines 2023
by segment
Total:
803
€ million
Total:
251
€ million
Total:
1,388
filling machines in field
Europe – 279
IMEA – 107
APAC – 276
Americas – 210
Europe – 38
IMEA – 47
APAC – 90
Americas – 82
Europe – 417
IMEA – 315
APAC – 476
Americas – 180
1
Includes Group Functions.
SIGAnnual Report 2023 30
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Financials
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Business review continued
Financial review continued
Adjusted EBITDA
Adjusted EBITDA margin1
Europe
IMEA2
APAC2
Americas
Total
As of
Dec. 31,
2023
28.3%
26.4%
29.5%
23.2%
24.9%
As of
Dec. 31,
2022
23.8%
25.2%
31.4%
20.2%
23.5%
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 amortization
EBITDA
Adjustments to EBITDA:
Unrealized loss on operating derivatives
Restructuring costs, net of reversals
Transaction- and acquisition-related costs
Integration costs
Realized gain on settlement of deal-contingent derivatives
Fair value adjustment on inventories
Change in fair value of contingent consideration
Impairment losses
Other
Adjusted EBITDA
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
243.2
125.1
80.8
412.2
861.3
(9.2)
6.0
1.4
12.9
–
–
(58.2)
4.8
(16.0)
803.0
37.8
26.0
51.0
366.7
481.5
39.5
4.9
24.1
17.1
(16.6)
20.6
74.6
6.3
0.2
652.2
1 Adjusted EBITDA divided by revenue from transactions with external customers.
2 The Group’s Indian operations are reported as if they had been included in IMEA (previously MEA) throughout the two reporting periods.
The Indian operations were included in APAC until November 1, 2023.
Adjusted EBITDA increased by €150.8 million,
from €652.2 million in 2022 to €803.0 million in
2023. Adjusted EBITDA growth was driven by a
higher revenue contribution of €168.1 million,
primarily driven by price increases to recover
prior year cost inflation. This was offset by higher
selling, general and administrative (“SG&A”) costs
of €46.5 million and an increase in input costs of
€17 million.
The adjusted EBITDA margin was 24.9%
compared with 23.5% for 2022 despite dilution
from acquisitions and the mathematical dilution
of the price increases.
Top-line growth, driven by price increases, offset
current and prior year cost inflation. Increased
production costs reflected higher wage and
energy costs as well as ramp-up costs for the new
aseptic carton plant in Mexico.
An increase in SG&A reflected wage inflation,
investments to support growth, including R&D
and regional expansion. Higher loss allowances
in the Middle East and South America were also
reflected in SG&A. SG&A as a percentage of
revenue was 12.2% compared to 11.2% in 2022.
R&D spend remained stable as a percentage of
revenue 2022 and 2023 at 2.2%.
Alternative performance measures
Definitions of the alternative performance
measures used by SIG management and
their related reconciliations are posted under
the following link: https://www.sig.biz/
investors/en/performance/definitions
Additional information about alternative
performance measures used by SIG
management is included in the consolidated
financial statements for the year ended
December 31, 2023.
EBITDA increased by €379.8 million to
€861.3 million in 2023. In addition to the factors
described above, the increase is primarily related
to a positive fair value change of €58.2 million for
the Scholle IPN contingent consideration in 2023.
The fair value of the contingent consideration is
derived from the current year performance of the
business, and a growth rate that is slightly above
the Company’s mid-term guidance for
subsequent years. See further note 28 of the
consolidated financial statements. EBITDA in
2023 also benefited from the reversal of an
acquisition-related provision, lower transaction-
and acquisition-related costs in 2023 and positive
net changes in unrealized hedging positions.
The Europe adjusted EBITDA margin increased
compared to the prior period and reflected the
impact of the strong pricing contribution to
recover cost inflation, primarily in 2022. This
positive contribution was partly offset by higher
input costs and the foreseen dilution from the
bag-in-box and spouted pouch businesses.
The adjusted EBITDA margin of IMEA increased
slightly compared to the prior period, due to
positive top-line contribution and reduced freight
costs. Positive top-line margin contribution in
APAC was offset by the full year impact of the
bag-in-box, spouted pouch and chilled carton
businesses. The Americas adjusted EBITDA
margin was positively impacted by top-line
contributions, foreign currency tailwinds and
lower freight costs. This was partly offset by the
acquisition of the bag-in-box and spouted pouch
businesses, which have a large presence in the
Americas. Ramp-up costs for the new aseptic
carton plant in Mexico also had a negative impact
on the margin. SG&A costs as described above
negatively impacted all segments.
SIGAnnual Report 2023 31
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Financials
Appendix
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Business review continued
Financial review continued
Net income
Adjusted net income in 2023 was €318.2 million
compared with €286.8 million in 2022. The
increase of €31.4 million was primarily due to
higher adjusted EBITDA, partially offset by a
higher interest expense given the higher interest
rate environment and new debt in connection
with the acquisition of the bag-in-box and
spouted pouch businesses in 2022. Higher
depreciation and tax expenses also impacted
adjusted net income in the period.
Net income was €243.2 million in 2023 compared
with €37.8 million in 2022. The increase of
€205.4 million was mainly due to the movements
in EBITDA described above, notably the revenue
growth and the positive fair value change
recognized in 2023 related to the contingent
consideration for Scholle IPN. Net income in 2022
also included a realized gain on the settlement of
a deal-contingent derivative that did not recur in
the current period. An increase in intangible asset
amortization due to the acquisitions of the
bag-in-box, spouted pouch and chilled carton
businesses also impacted the result in the period.
The effective tax rate decreased from 57.5%
in 2022 to 24.9% in 2023. The decrease was
primarily related to changes in the fair value of
the contingent consideration for the acquisition
of Scholle IPN, which is not tax deductible.
The adjusted effective tax rate slightly
increased from 23.7% in 2022 to 24.7% in 2023.
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.
The following table reconciles profit for the period to adjusted net income.
(In € million)
Profit for the period
Non-cash foreign currency exchange impact of
non-functional currency loans and realized foreign
currency exchange impact due to refinancing
Amortization of transaction costs
Net change in fair value of financing-related derivative
Realized gain on settlement of deal-contingent derivative
(relating to repayment of loan)
PPA depreciation and amortization – Onex acquisition
PPA amortization – other acquisitions
Net effect of early repayment of loan
Adjustments to EBITDA1
Tax effect on above items
Adjusted net income
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
243.2
37.8
(1.3)
4.8
2.0
–
103.4
47.7
–
(58.3)
(23.3)
318.2
(4.6)
7.0
(9.0)
(15.5)
103.5
34.1
1.0
170.7
(38.2)
286.8
Return on capital employed
The Group has amended its definition of ROCE,
and restated 2022 to include right-of-use assets,
capitalized development and IT costs and
non-current deferred revenue.
The definition was amended to reflect the
increased use of leases to finance
production-related plants and equipment,
capitalized development and IT costs for our
investments in innovation and cash received from
customers for filling lines accounted for as leases
and initially reported as deferred revenue.
ROCE, computed at an unchanged reference tax
rate of 30%, was 27.3% in 2023, a 220 basis points
increase compared to 25.1% in 2022. The
year-on-year improvement is primarily due to
higher ROCE EBITA offset by higher capital
expenditure. ROCE at the adjusted effective tax
rate of 24.7% is 29.4% in 2023. Applying the 2022
definition of ROCE, 2023 ROCE post a 30% tax
rate would have been 29.8%.
(In € million)
2023
2022
Income statement items
Adjusted EBITDA
Depreciation of PP&E and right-of-use assets
Amortization of capitalized development and IT costs
ROCE EBITA2
Balance sheet items
Current assets (excl. cash and cash equivalents)
Current liabilities (excl. interest-bearing liabilities)
PP&E
Right-of-use assets
Capitalized development and IT costs
Non-current deferred revenue
Capital employed
Pre-tax ROCE
ROCE tax rate of 30%
Post-tax ROCE at 30% tax rate
Adjusted effective tax rate
Post-tax ROCE at adjusted effective tax rate
Previous calculation (at tax rate of 30%)
803.0
(257.7)
(2.5)
542.8
836.4
(1,249.4)
1,795.4
267.3
26.5
(284.4)
1,391.8
39.0%
30.0%
27.3%
24.7%
29.4%
29.8%
708.7
(244.1)
(1.3)
463.3
907.8
(1,286.8)
1,667.8
243.6
23.1
(264.8)
1,290.7
35.9%
30.0%
25.1%
23.7%
27.4%
27.3%
1 For the different adjustments to EBITDA, refer to the adjusted EBITDA table in section "Adjusted EBITDA" above.
2 ROCE EBITA as of December 31, 2022 includes the ROCE EBITA of Scholle IPN and Evergreen Asia from January 1, 2022.
SIGAnnual Report 2023 32
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Financials
Appendix
Contents
Business review continued
Financial review continued
Capital expenditure
Net capital expenditure increased by
€106.6 million to €250.6 million in 2023
(2022: €144.0 million), representing 7.8% of
revenue (5.2% in 2022). The increase reflected
further expansion into growth markets, including
construction of our first plant in India for the
production of aseptic carton sleeves, chilled
carton expansion in China, footprint
rationalization and capacity expansion for the
bag-in-box and spouted pouch businesses in
North America as well as expansion of these
substrates into emerging markets. In addition,
investments in digital printing in Germany will
bring new benefits to customers.
Capitalized development costs reduced in 2023
compared to 2022, when the largest portion of
the costs capitalized for the development of the
next-generation SIG NEO VITA aseptic carton
packaging filling machine were incurred.
A high level of activity at filling machine assembly
plants reflected a continued strong customer
demand for SIG systems. Upfront cash received
for filling line placements, presented in net cash
from operating activities, was at the same
absolute level as in the prior period but decreased
to 63% as a percentage of filling line and other
related equipment expenditure (79% in 2022).
SIG placed 91 aseptic carton filling machines in
the field in 2023. Taking account of withdrawals,
the number of SIG aseptic carton filling machines
globally reached 1,388, a net increase of 29.
Some of the filling machines retired during the
year will be reconfigured and redeployed. New
filling machines placed in field have significantly
higher capacity than retired filling machines.
Net CAPEX 2023 (€ million)
-146
Upfront cash
Gross filler
PP&E
233
164
Cash flows
Net cash from operating activities increased
by €85.1 million to €663.3 million in 2023 from
€578.2 million in 2022. The net cash flow from
operating activities was positively impacted by
higher EBITDA year on year. This was offset by
higher interest payments. Strong upfront cash
collection in the period and an expansion of our
securitisation program, to include a portion of
the bag-in-box and spouted pouch business,
contributed to an increase in operating cash
flows. Inventory levels were lower, mainly driven
by inventory optimization but offset by higher
consumption and lower purchases.
Cash used in investing activities in 2023
decreased by €522.0 million compared to 2022.
The comparative period was impacted by net
investing cash outflows relating to the
acquisitions of the bag-in-box, spouted pouch
and chilled carton businesses (net cash outflow
of €624.2 million). The 2023 investing cash
outflow was primarily related to higher gross
capital expenditure for various projects and
assembly of filling machines as described under
“Capital expenditure”, which will allow the
Group to further grow in the coming years.
Free cash flow was €219.5 million compared
with €263.1 million in 2022. Strong EBITDA
performance and operating cash flow generation
were offset by higher net capital expenditure,
as described above, and higher payments of
lease liabilities.
The net cash used in financing activities in 2023
was €476.5 million which compared with a
positive cash inflow of €538.8 million from
financing activities in 2022. In 2023, the Group
had a net negative cash outflow of €236.1 million
relating to the financing of and repayment of debt
as further described below, as well as higher
payments of lease liabilities and dividends
compared to the prior year. In 2022, the positive
cash inflow from financing activities mainly
reflected 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.
SIGAnnual Report 2023 33
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Financials
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Business review continued
Financial review continued
Net debt and leverage
(In € million)
Gross debt
Cash and cash equivalents
Net debt
Net leverage ratio
As of
Dec. 31,
2023
2,457.5
(280.9)
2,176.6
As of
Dec. 31,
20221
2,684.1
(503.8)
2,180.3
2.7x
3.1x
The net debt as of December 31, 2023 remained
at the same level as of December 31, 2022.
The Group repaid €450 million of senior
unsecured notes that were due in June.
To finance the repayment, the Group used
available cash and €350 million from an
unsecured bridge loan facility. The bridge loan
facility was subsequently repaid, using available
cash and €100.0 million from an unsecured
credit facility which is at more beneficial terms
than the repaid bridge loan facility.
The adjusted EBITDA performance positively
contributed to the net leverage ratio, which
decreased to 2.7x.
Debt rating
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
April 23, 2024, the Board of Directors will propose
a dividend of CHF 0.48 per share (2022:
CHF 0.47 per share), totalling CHF 183.5 million
(equivalent to €198.2 million as per the exchange
rate as of December 31, 2023). This represents a
dividend pay-out ratio of 62% of adjusted net
income. If approved by the shareholders, the
dividend will be paid from the foreign capital
contribution reserve.
Company
rating
Moody's Ba1
S&P
BBB-
As of
Stable October 2021
March 2020
Stable
1
In the calculation of the net leverage ratio as of December 31, 2022, adjusted EBITDA includes the adjusted EBITDA of Scholle IPN and
Evergreen Asia from January 1, 2022.
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.
2024 guidance
The Company expects total revenue growth at
constant currency within its 4-6% mid-term
guidance range. This reflects the Group’s
expectation that volume growth will be geared
towards the second half of 2024, as we expect
end-market demand to recover. The resin
escalator for the bag-in-box and spouted pouch
businesses, which passes on movements in resin
costs directly to customers, is not included in
the guidance.
The adjusted EBITDA margin is expected to be
within the lower half of 25-26%. This is subject
to input costs and foreign currency volatility.
The Company believes operating leverage and
acquisition synergies will positively contribute
to adjusted EBITDA margin which will be partly
offset by higher SG&A, reflecting investments
in innovation and regional expansion, and
wage inflation.
Net capital expenditure is projected to be within
the Group’s target range of 7-9% of revenue and
the dividend pay-out ratio within a range of
50-60% of adjusted net income.
The adjusted effective tax rate is forecast to
be between 26 and 28%.
Mid-term guidance
The Company maintains its mid-term revenue
growth guidance of 4-6% at constant currency,
with the contribution from the chilled carton,
bag-in-box and spouted pouch businesses
expected to enable resilient growth in the upper
half of this range. 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 of
chilled carton, bag-in-box and spouted pouch.
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 milestone of around 2.5x at
the end of 2024.
SIGAnnual Report 2023 34
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Financials
Appendix
Contents
Enterprise risk management
Enterprise risk
management
The Group’s enterprise risk
management (ERM) 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. Our ERM process is an
integral part of our strategy process and the
results of our risk assessment are taken into
account when defining our strategic initiatives.
The ERM 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.
). Climate-related risks
Our risk management process is carried out in
conformity with the Swiss Code of Best Practice
for Corporate Governance. Our risk assessment
takes into account the material topics we have
defined in accordance with the Global Reporting
Initiative (GRI), (see GRI Index 3-1: Process to determine
material topics, page 277
and opportunities, one of our material topics, are
identified following the recommendations of the
Task Force for climate-related Financial
Disclosures (TCFD), see TCFD section of the Annual
. Our approach to addressing
Report, page 269
climate-related risks and opportunities is
integrated in our risk management process and
includes transition risks in fast moving consumer
goods markets and physical climate risks to our
assets and supply chain, as well as opportunities
related to our low carbon footprint innovations.
For more information on identified
climate-related risks and opportunities see Climate+
of the Annual Report, page 52
.
Management is responsible for identifying and
reporting risks and for implementing and tracking
mitigation measures. Each top risk, including the
respective mitigation actions, 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.
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, who is also setting the risk
profile and the risk capacities of the Group.
Mitigation actions are also reviewed throughout
the year as part of our strategic initiatives and
management processes.
The Audit and Risk Committee 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.
SIGAnnual Report 2023 35
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Financials
Appendix
Contents
Enterprise risk management continued
Strategic risks
Operational risks
Description
We are exposed to several strategic risks,
such as:
Description
We are exposed to several operational risks,
such as:
• The risk that our business model no longer
• The risk that our supply chains are disrupted.
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.
• The risk of loss of production, including due to
damage to key manufacturing facilities (for
example caused by natural disasters, including
flooding), IT failures, severe power blackout or
energy shortages.
• The risk that we do not meet our high product
quality standards or that our products do not
comply with product food safety regulations.
• The risk that we do not meet our high standards
to ensure the health and safety of our
employees.
• We constantly seek feedback from our
customers, suppliers and other stakeholders.
• The risk that our employees cannot perform
their duties due to events such as a pandemic.
• We monitor and assess the competitive
• The risk that we are not able to attract and
retain employees (for example, due to appearing
to not sufficiently drive diversity and inclusion),
resulting in limitations to maintaining,
developing and growing the business.
landscape.
• We monitor technology trends and invest in
development of new technology.
• Our business is diversified regarding both,
geographies and products.
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.
How we mitigate risk
• We expand our supply base where appropriate,
How we turn risk into opportunity
• Our responsible sourcing program offers
opportunities to develop sustainable suppliers
that are more resilient towards climate change
impacts.
• Our employer branding and employee wellbeing
programs help us to be an employer of choice
for our existing and new talent.
including new suppliers and materials.
• We have implemented processes to ensure
business continuity planning, including a
pandemic contingency plan.
• We embrace renewable energy and technology
advancements to decouple from traditional
energy sources.
• We implement adaptation solutions for both
existing and newly built manufacturing facilities
to reduce identified climate-related
physical risks.
• We constantly monitor cybersecurity risks and
have implemented an information security
management system to prevent, detect and
swiftly remediate security incidents (including
cyber-attacks).
• We have a quality management system and
invest to continuously improve the quality of
our products.
• We take measures and foster a culture that
prevents people incidents and work-related
illness.
• We regularly review and adapt as appropriate
our compensation structure and working
conditions to be an employer of choice, and we
implemented a diversity and inclusion program.
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Enterprise risk management continued
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, jeopardizing
the availability of and costs for paperboard, one
of our key raw materials.
• The risk of stricter climate-related regulations
(for example on recyclability of packaging
materials or on waste) or requirements for
low-carbon products.
• The risk of potential negative impacts caused
by our operations or our supply chain on the
environment or communities, including
human rights.
• We source 100% of our aseptic carton
paperboard from FSC™-certified suppliers.
• We source 100% of the aluminum 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 Labor
Organization’s core labor standards and the
Ethical Trading Initiative Base Code.
• We have systems in place to minimize negative
environmental impacts for both, our operations
and within our supply chain and we conduct
human rights due diligence.
How we mitigate risk
• We have set near- and long-term emission
reduction targets approved by the Science
Based Targets initiative, aiming to achieve
net-zero emissions by 2050.
• We drive innovation that promotes substantial
reductions in the negative environmental
impact (such as the carbon footprint) of our
packaging solutions.
• Through our partnerships, we help to mitigate
negative environmental impacts and enhance
positive ones, such as initiatives to create
additional sustainably managed forest land and
foster the collection and recycling of used
beverage cartons.
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.
• An increasing demand for sustainable products
offers great business opportunities.
• We are committed to further reducing the
carbon footprint of all our packaging and
pioneer carbon negative packaging concepts.
• Our focus on corporate social responsibility is
recognized with high scores in ESG ratings
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 throughout their
life cycle.
• 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 our employees fail to act with
integrity, in compliance with applicable laws and
regulations or in accordance with our internal
policies and processes (for example regarding
anti-bribery & anti-corruption), which could
result in negative reputational and financial
impact for the Group.
• The risk that our financial reporting is
inadequate.
• 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. For employees in high-risk
roles, we provide dedicated additional trainings
on special compliance topics, such as
anti-bribery & anti-corruption.
• We have implemented control systems to
ensure compliance with applicable trade
restrictions.
• We have implemented an internal control
system for financial reporting.
• We operate a grievance mechanism for
reporting any compliance issues or concerns
including an Integrity & Compliance Hotline
which is available to all our employees, as well as
to external stakeholders.
• 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.
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Enterprise risk management continued
Financial risks
Emerging risks
Description
In 2023, we continued to assess emerging risks
that might become relevant for our business,
including:
• The risk of the supply of paperboard, our main
raw material, being dependent on natural
resources.
• The risk of potential contributions to the loss of
biodiversity along our value chain, including raw
material supply, operations and product end
of life.
How we address such emerging risks
• We pursue a strategy of responsible sourcing,
which supports the building of resilient forests,
and the protection of biodiversity.
• We include biodiversity risk and impact
assessment in our operational EHS
management.
• We assess, and where necessary improve, our IT
security layers to prepare for and defend
against cyber-attacks with new technologies
(such as blockchain, quantum computing
and AI).
How we turn risk into opportunity
• An increasing demand for sustainable products
• The risk of artificial intelligence and new
offers great business opportunities.
technologies, such as blockchain, quantum
computing and AI being used to attack our IT
infrastructure, potentially resulting in business
interruption and impacting our ability to supply
our customers.
• Providing information about the results of the
performance assessment of our products along
the life cycle supports customers and
consumers in making informed choices.
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 of increasing interest rates.
• The risk that we do not have sufficient financial
resources and liquidity.
How we mitigate risk
• We have processes in place to monitor and
manage our costs.
• We have implemented hedging policies to
manage the risk of fluctuations in exchange
rates and commodity prices.
• 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.
How we turn risk into opportunity
• Our reporting of risks and opportunities adds
transparency, permitting investors to make
informed decisions.
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Sustainability
Introduction
We are on
a journey
to create
packaging
for better
Our strategic business focus on sustainability
is driving progress towards net positive
packaging that gives more to people
and the planet than it takes.
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Sustainability continued
Introduction continued
Sustainability
is not new
for SIG.
We have always created aseptic
packaging that delivers safe,
affordable, shelf-stable nutrients
to people around the world without
the requirement for a cold-chain
distribution system – with the
smallest carbon footprint compared
to other types of packaging.
Our portfolio of carton, bag-in-box, and spouted pouch
solutions can 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
industrial settings.
Now, we are leading the way towards fully regenerative
packaging systems, with ambitious targets that put us
well ahead of the rest of the industry.
Getting there will stretch us further than we have ever
gone. We have already achieved significant milestones
on our sustainability journey and made further
progress in 2023.
A net positive packaging system does
not exist yet. But one day it will, and it will:
1
2
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 aluminum.
3
Bring safe, healthy nutrition to everyone.
4
Be fully and easily recyclable – anywhere
in the world.
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Sustainability continued
Introduction continued
Highlights in 2023
Full barrier aseptic cartons
with no aluminum layer
Our innovative SIG Terra Alu-free + Full barrier
solution for aseptic cartons made its market debut
with commercial launches by Yili Group and Mengniu,
China’s two largest dairy companies.
Science-based targets
Our 2050 Net Zero target was approved by the
SBTi1 and we have joined the SBTN2 Corporate
Engagement Program to support the development
of a framework for science-based targets for nature.
Design for recycling
We have set bold new targets to offer a recycle-
ready3 bag-in-box and spouted pouch solution in all
our relevant market segments by 2025, and offer a
full-barrier aseptic carton with at least 85% paper
content by 2025 and at least 90% by 2030.
Supporting thriving forests
Our first project with WWF is underway in Mexico to
support key ecosystems and secure a critical corridor
for jaguars by improving the management of 100,000
hectares of forest landscapes, as well as reforesting
and restoring a further 750 hectares.
Renewable energy
We sourced 100% renewable electricity for
production4 and installed two vast solar arrays
in Germany that have tripled our global on-site
renewable energy capacity.
New food product category
We partnered with AnaBio Technologies to create the
world’s first long-life probiotic drink, a new consumer
offering that will enable wider access to nutrition.
Women in leadership
We increased representation of women to 40% of
our Group Executive Board and 25% of our leaders
in 2023 as we continued efforts to attract women and
develop their careers, including through our Women
Acceleration program.
External ratings in 2023
EcoVadis Platinum
Our Platinum rating from EcoVadis again
puts SIG in the top 1% of businesses
participating in its latest sustainability
assessment.5
FTSE4Good Index Series
SIG Group AG is a constituent of the
FTSE4Good Index Series, created by
the global index provider FTSE Russell
to measure the performance of
companies demonstrating strong
ESG practices.6
MSCI AA
Our AA rating from MSCI places SIG
as an industry leader on environmental,
social, and governance (ESG) criteria.
Sustainalytics
Our ESG Risk Rating score of 13.9 out of
100 from Sustainalytics positions SIG as
low risk for investors.
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.
The Sustainability
Yearbook 2024
SIG was included in The Sustainability
Yearbook for the second time, based on
the S&P Global Corporate Sustainability
Assessment survey (used to inform the
Dow Jones Sustainability Indices, DJSI).
Only around the top 15% of companies
assessed in each industry are included
in the Sustainability Yearbook.
Awards and recognition
in 2023
Packaging Europe
Sustainability Awards
Our SIG Terra Alu-free + Full barrier aseptic
carton solution won the top prize in the
Climate category.
China Packaging Federation
Our SIG Terra Alu-free + Full barrier aseptic
carton solution was included in the Blue Book
of Green and Low-carbon Development of
the Packaging Industry.
4evergreen Alliance Design
for Circularity Award
For our SIG Terra Alu-free + Full barrier
aseptic carton solution.
4evergreen Alliance Circularity
Best Practices Award
For the Palurec PolyAl recycling plant that
SIG invests in with industry partners, for its
work recovering polymers and aluminum
from PolyAl for use in a range of products.
SAVE FOOD Project Award
Cartons for Good, the SIG Foundation’s
flagship project, won the inaugural
competition run by the SAVE FOOD Initiative,
which promotes solutions that contribute to
reducing global food waste and loss.
1 Science Based Targets initiative.
2 Science Based Targets Network.
3
4 We purchase renewable electricity through Energy Attribute Certificates, as well as directly through on- or off-site Power Purchase Agreements, to maintain 100% renewable electricity
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
for production of our packs.
5 Our 2023 EcoVadis assessment excludes our newly acquired bag-in-box and spouted pouch businesses, which will be included in the scope of our 2024 assessment.
6 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.
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Sustainability continued
Introduction continued
Our sustainability
reporting
Sustainability is core to our
business strategy and related
reporting. This chapter of our
Annual Report outlines our
commitments, progress, and
performance in each area of
our sustainability approach.
Additional environmental, social, and governance
(ESG) disclosures can be found elsewhere in the
Annual Report, including our reporting in line with:
• Task Force on Climate-related Financial
Disclosures (TCFD).
• EU Taxonomy.
• Global Reporting Initiative (GRI) Standards
(including a content index).
• United Nations Sustainable Development Goals.
• Swiss law on reporting obligations on
non-financial matters (Swiss Code of
Obligations article 964).
We also follow the requirements of Art. 964j-l of
the Swiss Code of Obligations (Ordinance on Due
Diligence and Transparency in relation to Minerals
and Metals from Conflict-Affected Areas and
Child Labour). We have concluded that SIG is
exempt from the Swiss requirements on due
diligence and reporting on minerals and metals
(see more on our ESG disclosures). Our reporting
relating to due diligence on child labor will be
presented in a separate report by the end of
June 2024.
We publish detailed information on our policies and
approach to ESG topics on our website
ESG policies
We also track and report our progress through
external assessments. We submit in-depth ESG
disclosures specifically for investors and
customers, including our annual submissions to
CDP, EcoVadis, and the S&P Global Corporate
Sustainability Assessment (used to inform the
Dow Jones Sustainability Indices, DJSI).
Our reporting is continually evolving to align
with best practices, regulations, and stakeholder
expectations for enhanced disclosures. This year,
we have begun preparations to report in line with
requirements of the forthcoming European
Corporate Sustainability Reporting Directive
(CSRD) and the Taskforce on Nature-related
Financial Disclosures (TNFD).
For further information on our ESG disclosures and the
reporting frameworks we follow, see the Appendix
Scope and assurance
Our sustainability reporting covers the
2023 calendar year. Unless otherwise
stated, data covers all operations fully
owned by SIG globally, except for our
production plant in Baie-d’Urfé (which
closed in 2023) and our production
plant in Voronezh.
Key performance indicators (see KPIs
are externally assured with limited
assurance by PricewaterhouseCoopers
GmbH Wirtschaftsprüfungsgesellschaft,
Germany.
See assurance statement
)
Industry
Leader
References to SIG as “industry leader”,
“industry-leading”, or “world’s first” throughout
our sustainability reporting are made in good faith
according to SIG’s global commercial intelligence.
Tell us what you think
We welcome stakeholder feedback
on our sustainability approach,
performance, and reporting.
Please contact Ingrid McMahon,
Head of Investor Relations:
ingrid.mcmahon@sig.biz
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Sustainability continued
Introduction continued
Our road to net positive
Our sustainability approach is our
roadmap for better. We want our
packaging solutions to give more than
they take from people and the planet.
SIG is a pioneer of the net positive movement (see next
page). Our ambitions follow the Net Positive Principles,
which demand a material, systemic, regenerative, and
transparent approach.
We are striving to minimize our footprint at every stage
of the value chain – from sourcing to production, filling,
use, and recycling of our packs. And we are going further
to bring positive impact beyond our value chain, what
we call our handprint.
To achieve a net positive impact, our handprints
should exceed our footprints when assessed together.
We collaborate with others to develop transparent
and credible methodologies to measure both.
Climate+
Removing more
carbon than we emit
Forest+
Creating more
thriving forests
Climate+
Forest+
Our
sustainability
approach
Resource+
Accelerating innovation
on circularity
Food+
Improving access to nutrition
and cutting food waste
Resource+
Food+
Sustainable innovation & Responsible culture
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Sustainability continued
Introduction continued
Driving progress
Industry-leading goals and practices in four
interconnected action areas will together deliver
our net positive ambition:
• Climate+ sets out our SBTi1-approved targets
to achieve Net Zero value chain greenhouse gas
emissions by 2050 – and how we aim to deliver
positive climate impact by capturing more
carbon than we emit.
• Forest+ commits us to protect the forests
that provide raw materials for our packs
through FSC™-certified sustainable sourcing
– and create, restore, protect, or improve
management of an additional 650,000
hectares of thriving forests.
• Resource+ drives innovation to lightweight and
increase renewable or recycled content in our
packs, design our cartons to be fully recyclable,
offer recycle-ready2 bag-in-box and spouted
pouch solutions, and foster effective collection
and recycling systems – not only for our packs,
but for other used packaging.
• Food+ aims to minimize food loss and waste
from filling and using our packs – and help
others increase efficiency and resilience in
the food delivery system by offering aseptic
packaging that preserves food for long
periods without the need for refrigeration.
Our focus on sustainable innovation drives
progress in all four action areas and our
responsible culture underpins our sustainability
approach – by upholding high ethical standards
and striving to create positive impact for
people in our supply chain, our workforce,
and our communities.
Contributing to global goals
The four action areas of our sustainability
approach are where we can make the biggest
contribution to the United Nations Sustainable
Development Goals
on global goals related to climate, nature,
circularity, and nutrition. All four contribute,
either directly or indirectly, to preventing
biodiversity loss and restoring ecosystems.
See Towards nature positive
– by accelerating progress
We are committed to a science-based approach
to help us measure and transparently report
progress towards our net positive ambition –
and catalyze our contribution to an equitable,
Net Zero, and nature positive future.
Our Net Zero and greenhouse gas emissions
reduction targets have been approved by the
Science Based Targets initiative. In the next phase
of our sustainability approach, we aim to establish
science-based targets for nature and have joined
the Science Based Targets Network (SBTN)
Corporate Engagement Program to support the
development of an enabling framework.
Our sustainability approach also contributes to
the ten principles of the United Nations Global
Compact, including through our focus on human
rights due diligence as part of our
responsible culture.
SIG supports the Sustainable Development
Goals.
SIG is a signatory to the United Nations
Global Compact.
Science Based Targets Network
SIG is a member of the Science Based
Targets Network Corporate
Engagement Program.
The areas included in our sustainability approach
are informed by a materiality assessment
(see Identifying our priorities
targets for 2025 or beyond help us drive progress
in each area. These targets, and related progress,
are detailed in the relevant topic sections of this
report. We also provide a summary of progress
towards our targets in the Appendix
). Specific, stretching
.
1 Science Based Targets initiative.
2
In line with Design for Recycling criteria developed by APR
(Association of Plastic Recyclers) and Recyclass.
Pioneering a net positive
approach
We began our net positive journey in 2016
when we published our first set of bold
ambitions to contribute more to society
and the environment than we take out
across our value chain.
As a member of the Net Positive Project,
we joined other pioneering companies and
non-governmental organizations determined
to raise the level of ambition for corporate
sustainability – to go beyond simply doing
less harm to actively target positive
contributions that help regenerate the
environment and create a thriving society.
We follow the Net Positive Principles
developed by this group and we continue to
engage with partners to drive a regenerative
and just transition. We have supported the
development of tools to help companies
adopt and measure progress on
transformative net positive goals by:
• Piloting methodologies developed by the
Sustainability and Health Initiative for
NetPositive Enterprise (SHINE) to measure
positive handprints.
• Contributing to the Business
Transformation Compass developed by
Forum for the Future to guide businesses
on transformational strategies that support
a regenerative and just transition.
• Publishing a white paper with Stora Enso,
one of our key suppliers, to guide
companies on how to apply the Net
Positive Principles to support positive
outcomes and lasting systemic change.
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Sustainability continued
Introduction continued
Strengthening our business
Sustainability is not just good for people and the
planet. It is good for business. Our approach,
including our bold net positive goals, strengthens
our business by:
• Driving business growth by helping customers
meet demand for more sustainable products,
strengthening SIG’s competitive edge, and
opening up new market opportunities.
• Stimulating innovation to create more
sustainable packaging solutions.
• Attracting top talent as people increasingly
want to work for companies making a
positive impact.
• Enhancing brand reputation and strengthening
relationships with stakeholders.
• Supporting compliance with growing
regulations on ESG topics.
• Mitigating business risks related to ESG topics
(see Key business risks related to ESG topics
).
• Contributing to long-term value creation and
sustainable growth for investors.
• Broadening sources of funding and securing
attractive pricing through sustainability-linked
financing (see below).
Linking financing to ESG performance
The Schuldschein loan we issued in 2022 is
linked to our ESG performance as assessed by
EcoVadis, a global independent sustainability
ratings provider that analyzes our performance
on environment, labor and human rights, ethics,
and sustainable procurement. The margin is
adjusted up or down depending on SIG’s
EcoVadis score, therefore reducing our overall
funding costs if we meet our target EcoVadis
score. We also have loan facilities from 2020
that have a margin linked to SIG’s EcoVadis
score and to reductions in Scope 1 and 2
greenhouse gas emissions.
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Sustainability continued
Introduction continued
Identifying our priorities
Our sustainability approach is informed by
ongoing stakeholder engagement and an
assessment of our most material topics
(see right). This is based on both the
potential impact on the environment,
society, and the economy, and on the
potential risks and opportunities to the
business associated with each topic.
See more on our stakeholder engagement
and on our materiality process (in the GRI
content index)
Our material topics
Innovation in
products and
services
Waste and
circular
economy
Climate+
Climate change
Forest+
Our sustainability approach is built on
our material topics
Climate
change
Biodiversity and forest ecosystems
Resource+
Waste and circular economy
Biodiversity
and forest
ecosystems
Business
practices
Product safety
and integrity
Health, safety, and wellbeing
Responsible
suppliers
Economic
effects
Sustainable raw materials
Human rights2
Employee
satisfaction,
development,
and working
environment
Public policy
and advocacy
Diversity, equity, and inclusion
Water
Water
Food+
Product safety and integrity
Access to nutrition and hydration1
Sustainable innovation
Innovation in products and services
Responsible culture
Responsible suppliers
Sustainable raw materials
Human rights2
Diversity, equity, and inclusion
Employee satisfaction, development,
and working environment
Health, safety, and wellbeing
Access to nutrition
and hydration1
Clean air
Anti-corruption
Community
engagement
Privacy and data security
Outward impact (on environment, society, and economy)
Non-material
Material
1 Additional strategic topic (not a material issue).
2
Includes freedom of association, freely chosen labor,
living standards, and protection of the child.
)
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Sustainability continued
Sustainability built in
Sustainability built in
Sustainability is built into our
purpose, strategy, governance
– and the way we do business.
To support progress, we
integrate external insights,
engage our people, and hold
ourselves to recognized
standards.
• 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 remuneration
to specific ESG performance indicators related
to their roles.
• Investor relations: Interest in ESG topics
continues to grow in the investor community
and our investor engagement includes
dedicated ESG meetings. Sustainability
was central to our presentations to investors
during our capital markets day in 2023. SIG
has continued to score well in recognized ESG
ratings (see External recognition
raised finance linked to our ESG performance.
(see ESG-linked finance
).
) and we have
• Risk management: Our most material ESG
) – are integrated into our annual
risks – including climate-related risks (see our
TCFD report
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 right and more on our approach
). Each top risk,
to enterprise risk management
including the respective mitigation actions,
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.
Key business risks related
to ESG topics
Environment
Risks of environmental regulations on
recycling of packaging material, aseptic
carton packaging systems, closures, straws,
and raw materials; shift in public opinion
regarding beverage cartons, spouted pouch,
and bag-in-box packaging solutions.
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, anti-bribery
and anti-corruption, fraud/embezzlement,
or money laundering.
Information security
Risks of cyberattacks 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.
Embedding sustainability
Sustainability is fundamental to our purpose –
to work in partnership with our customers to
bring food products to consumers around the
world in a safe, sustainable, and affordable way.
It is embedded in our Corporate Compass,
our strategy for growth, as one of four business
priorities that help us strive for better. It also
supports progress on the other three – growth,
customer, and people.
See more on our strategy
We integrate sustainability into our core
business practices, including:
• 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
SIG Terra portfolio and other sustainable
innovations in our marketing globally. Our SIG
EcoFill Consulting program helps customers
reduce the environmental impact of the filling
lines used to fill our packs in their factories.
• Product innovation: Our sustainability
commitments are driving specific innovation
workstreams, and environmental performance
is one of the core value drivers for product
development, alongside product safety and
commercial considerations.
• Manufacturing: The health and safety of our
people and products is critical to our
manufacturing operations and quality controls,
and we have systems in place to minimize
environmental impacts from production.
• Procurement: Working with responsible
suppliers and sourcing raw materials from
certified, responsibly managed resources are
central to procurement at SIG, and we train
the teams involved.
• People and culture: Commitments on topics
such as diversity, equity, and inclusion, talent
development, employee satisfaction, and
wellbeing support our people and culture
strategy to create the best place to be for
our people to act with purpose, develop,
and partner together for SIG’s growth.
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Sustainability continued
Sustainability built in continued
Governance
The Board of Directors’ Nomination and
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 Group’s business and reputation,
including climate and nature-related risks
and opportunities. The NGC advises the
Board of Directors (BoD) on such matters.
The Audit and Risk Committee (ARC) reviews
and discusses with management and, to the
extent applicable and relevant, with the Group’s
assurance providers, the Group’s corporate
sustainability reports. It makes recommendations
to the BoD on the Group’s public reporting on
ESG matters and monitors the Group’s
performance against the Group’s corporate
sustainability metrics.
The Group Corporate Responsibility Director
provides updates on the Group’s sustainability
approach and ESG performance to the NGC
and the BoD twice a year, and provides input
to the BoD in its annual strategy meeting.
Ultimate accountability for the Group’s ESG
performance and progress lies with the CEO
and the Group Executive Board (GEB). This
accountability is underpinned by an ESG-related
element incorporated in the GEB members’
Short-Term Incentive Plan. GEB meetings cover,
where relevant, items on sustainability and
ESG topics.
GEB members are part of the Responsibility
Steering Group (RSG), which also includes senior
representatives of key functions and each of
the regions. The RSG meets twice a year to
review progress and ensure alignment of
ESG-related work across the business.
Each focus area of the Group’s sustainability
approach, including related commitments,
is owned by a member of the RSG, who is
accountable for setting goals and delivering
progress through targeted workstreams.
Leaders from relevant business functions and
regions are responsible for implementing the
Group’s sustainability commitments, with support
from their teams and subject matter experts.
We publish our policies on ESG topics to clearly
set out our commitments. Accompanying
in-depth internal operating procedures support
effective implementation across the business.
We provide employees with training on topics
relevant to their role. We also strive to inform
and engage all our people on sustainability,
with support from our network of Future+
Ambassadors.
See Engaging our people on sustainability
The SIG Way Beyond Good Foundation (“the SIG
Foundation”) also supports our ambitions through
targeted charitable projects and partnerships
that strengthen civil society and create positive
impacts for the environment. Members of our
GEB and senior management sit on the SIG
Foundation’s Board of Trustees.
For more on the SIG Foundation and an overview of its
activities in 2023, see Communities
SIG sustainability governance structure
External
Responsibility
Advisory
Group (RAG)
Role: Provide
strategic input
in the
development
of SIG's CR
agenda and
provide
feedback on
SIG's
approach and
performance
Board of Directors (BoD)
Role: Reviews and approves SIG’s sustainability governance, strategy, and communication
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 and responsibility roadmap
Chair: Director Corporate Responsibility
Chief
Executive
Officer
(CEO)
Chief
Financial
Officer
(CFO)
Chief
Supply Chain
Officer
(CSO)1
Chief
Technology
Officer
(CTO)1
Chief
Markets
Officer
(CMO)2
Chief People
& Culture
Officer
(CPCO)
President &
General
Manager
Europe
President &
General
Manager
Asia-Pacific4
President &
General
Manager
Americas
President
BIB & SP
President &
General
Manager
India,
Middle East
& Africa
Vice President
Group Legal &
Compliance
Vice President
Global Product
Marketing
Vice President
Global Sourcing &
Procurement
Vice President
Global Research &
Development
Finance Director
Group Accounting
& Reporting3
Director
Investor Relations
Head of Corporate
Communications
Managing Director
SIG Way Beyond
Good Foundation
Executives of business functions/regions
Role: Responsible for implementing the strategy
and delivering must-wins
Future+ Ambassadors
Role: Engaging employees on key
sustainability topics
SIG Foundation5
Role: Drive activities and projects that strengthen civil
society and create positive impacts for the environment
1 From April 2023, the former CTO took over the new role of CSO and a new CTO was appointed – both hold positions on the GEB and RSG.
2 The former Senior Vice President Commercial retained his position on the RSG in his new GEB role of CMO from August 2023.
3 Joined the RSG in August 2023.
4 The previously separate roles of President & General Manager of Asia-Pacific North and President & General Manager Asia-Pacific
South were combined into a single role of President Asia-Pacific from November 2023, following a retirement.
5 Formally known as the SIG Way Beyond Good Foundation.
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Sustainability continued
Sustainability built in continued
Integrating external insight
Members of our GEB, including our C-suite, meet twice a year with
our independent Responsibility Advisory Group (RAG), a group of
external experts who provide strategic input to the RSG and GEB,
and challenge us to improve.
In 2023, the RAG focused on understanding SIG’s role in delivering
the most sustainable packaging solutions in the context of the
increasingly urgent need for action on global challenges.
We discussed progress on our sustainability approach, and how
our innovation program and action plan can help accelerate the
transition required to meet global goals on climate and nature
this decade.
RAG members agreed that SIG’s approach is delivering systemic
change beyond the packaging value chain, particularly in relation
to the environmental priorities of climate and nature, and they
recommended we sharpen our focus on key risks and opportunities.
Feedback from each member of the RAG is included in this report
(see quotes).
We also collaborate with partners, such as the Sustainability and
Health Initiative for NetPositive Enterprise (SHINE) and Forum
for the Future, to drive the net positive agenda, and catalyze
transformative change to create wider benefits for society
and the environment.
See Pioneering a net positive approach
The world has some big dilemmas to solve to make the global food
system more sustainable. SIG can contribute by getting nutrition to
the people who most need it in a sustainable way in line with its path
to net zero.
The company has the will and means to help provide solutions to big
global challenges. The entire executive team is highly committed to
delivering SIG’s ambitious sustainability goals and they are engaging
SIG people around the world to achieve significant change.
SIG is already delivering initiatives that are driving real impact,
such as the aluminum-layer-free aseptic carton. SIG needs buy-in
from its large customers to drive mass adoption of its most
sustainable innovations, and can also catalyze development of
scalable innovations through partnerships such as MISTA. I also look
forward to seeing the positive sustainable innovation contribution of
the recently acquired bag-in-box, spouted pouch, and chilled carton
businesses.
There are opportunities for SIG to go further by enhancing visibility
of biodiversity impact in its supply chain, embracing the full scope
of circularity through innovation to replace any fossil-based
polymers that are not recycled, and focusing on collection of
used packaging as the business grows in markets where
collection infrastructure is less developed.
It is great to see SIG progressing along its sustainability journey and
taking responsibility for its value chain and beyond. The company
has a high level of ambition and is prioritizing the right areas.
SIG’s packaging already offers advantages on climate compared
with alternatives so one of the biggest contributions SIG can make
to global goals is to increase market share, meeting demand for
low-carbon solutions while growing the business at the same time.
Gail Klintworth
Chair, Non-Executive Director, and (Board) Advisor: Rabobank,
Tiger Brands, Shell Foundation, MAS Holdings, Globescan, Takeda
Pharmaceuticals, Al Dabbagh Group, Savo Project Developers
The company is also well placed to respond to the rising focus on
nature positive solutions and contribute to global goals on
biodiversity. Its Forest+ partnership with WWF, including the first
project in Mexico, demonstrates inspirational leadership in its intent
to deliver net positive biodiversity impact.
It gives me confidence that SIG has a science-based Net Zero
target on climate that meets the rigorous requirements of the
Science Based Targets initiative. Now, SIG is trailblazing efforts to
quantify biodiversity footprints and handprints to help measure
and communicate net positive impact for nature. In the context of
a growing backlash against greenwashing, it is also great that SIG’s
data-driven, rigorous engineering approach continues to be so
integral to the company culture.
Greg Norris (RAG Chair)
Co-Director of the Sustainability and
Health Initiative for NetPositive Enterprise (SHINE)
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Sustainability continued
Sustainability built in continued
SIG is incredibly ambitious on sustainability, with strong leadership
from the top. It is clear from our RAG meetings that SIG’s leaders
want to be challenged. They set extremely challenging goals – like
creating a full barrier carton with no aluminum layer – then achieve
these and push to go even further.
SIG’s sustainability goals go hand in hand with opportunities for
growth, for its business and for its customers. Its aseptic packaging
can make a big difference to nutrition and food waste by delivering
healthy food with a long shelf life to create a more sustainable food
supply chain.
Food companies can claim positive sustainability benefits by
switching to SIG’s low carbon packaging solutions and more
global brands should consider partnering with SIG as a way to
fight climate change.
Sustainable resource use is a strong focus for SIG’s innovation.
Engaging with stakeholders will also be important to make sure
more packs are collected and recycled after use.
SIG is clearly committed to high standards on ESG. The smooth
integration of newly acquired businesses into the company’s
established labor, safety, environment, and supply chain
protocols over the past year or so is a notable achievement
within a short period of time.
Matt Sherwood
Chief Executive Officer, Pothos Partners &
Chief Investment Officer for the Pothos Carbon Fund
SIG’s sustainability commitments are courageous and connected
to its value proposition for its customers. This is critical to make the
business’ impacts both positive and sustainable. It is also clear that
SIG’s business leaders are aligned behind these commitments.
The best way for SIG to contribute to global sustainability goals is
to continue to deliver superior quality in food safety and nutrient
protection through its processes and technologies. The company’s
long-life aseptic filling reduces CO2 emissions by avoiding the need
for refrigeration, and helps to prevent food waste by enabling
people to store food ready for use when they need it.
In addition, it is also key to foster involvement and connection
with local communities to find solutions together – for example,
by focusing on waste management and recycling through relevant
projects in geographies where SIG is best placed to make
an impact.
SIG is leveraging innovation to lead on its sustainability
commitments. The company has already achieved tangible
progress, including simplifying its packaging materials by
developing aseptic cartons with no aluminum layers.
Furthermore, in future, there is opportunity to increase focus
on sourcing materials grown using regenerative practices.
Veronique Cremades-Mathis
Chief Strategy & Commercial Officer, SATS
SIG’s sustainability approach is very strong in both breadth and
depth, with big ambitions to deliver regenerative impact across
four interconnected ‘positive’ areas.
The company has already achieved important milestones, such
as 100% FSC™-certified source material for the paperboard in its
cartons, and is continually pushing the envelope. This includes
setting goals, even if, at the time they are set, it is not exactly clear
how they will be achieved. This level of ambition drives innovation,
and also has a wider impact by encouraging suppliers to be part of
the journey and putting pressure on competitors to do more.
By investing in thriving ecosystems beyond its value chain, SIG is
setting an important example for other companies. Its Forest+ goal
to create, protect, restore, or improve management of 650,000
hectares of forest is very ambitious, and will demand systematic
planning and investment. We are already partnering to implement
a forest project on the ground in Mexico and a second project is
in the pipeline.
Circularity is also an important focus for SIG. It is great to have
packaging that can be recycled, but not every market has systems
to recycle it in practice. Advocacy will be key here and SIG can play
an important role in mobilizing stakeholders to address challenges
with holistic solutions, such as collection and recycling of
used packaging.
Thomas Vellacott
Chief Executive Officer, WWF Switzerland
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I am pleased with the contribution SIG
is making towards community and society
84%
2022: 82%
Comparison with 2023 industry
benchmark1: +6
I believe SIG does a good job promoting
environmental responsibility (with our
products) in the packaging industry
92%
2022: 88%
Comparison with 2023 industry
benchmark1: +8
Sustainability continued
Sustainability built in continued
Engaging our people on sustainability
We regularly engage with our people on sustainability
topics through our SIGer internal social app.
This year, we established a new interactive
learning platform to help employees understand
what sustainability means at SIG and what it
means for each of them in their day-to-day roles.
The Sustainability Academy launched with a
series of interactive webinars, including one with
WWF Switzerland, one of our key partners on
Forest+, to explain the importance of forests and
how SIG is helping them thrive. We also
encouraged employees to try out WWF’s
footprint calculator to find out how big their
personal environmental footprint is and think
about ways to reduce it.
Our network of local Future+ Ambassadors get
employees involved through regular campaigns
and local community engagement programs. This
year, they led our first Future+ Day to educate,
engage, and inspire people across the business
around the positive impact we can have on
people and the planet beyond our own footprint.
The Ambassadors also began a campaign to
raise awareness of biodiversity and promote
conservation practices, which will continue into
2024. Employees around the world also got
involved in local activities through the year to
support communities and the environment.
See Communities
We recognize the efforts of our Future+
Ambassadors at their annual conference, with
awards for activity, ambassador, and handprint
(positive impact) of the year. Our annual Shine
Awards also include a category for Sustainability
Engagement Initiative of the Year, which went to
our WWF Switzerland partnership in 2023.
See Forest+
In our latest employee survey, we achieved
outstanding results once again on our people’s
perception of SIG’s contribution to society and
the environment. We further improved scores
year on year and significantly outperformed the
industry benchmark (see right), as well as
exceeding the high-performance benchmark
across industries.
Certifying to recognized standards
We use independent third-party certifications
to recognized external standards to demonstrate
our robust management of sustainability and
ESG topics, and support continuous improvement
in line with best practice. These certifications
include:
• ASI (Aluminium Stewardship Initiative): Our
aseptic carton business is ASI Performance
Standard certified, all associated SIG
production plants are ASI Chain of Custody
certified, and all aluminium foil for our aseptic
cartons is purchased as ASI Certified..
• FSC™ (Forest Stewardship Council™): Chain
of Custody certification is in place at all our
aseptic and chilled carton production plants,
and related sales offices (license code FSC™
C020428). All the paperboard for our cartons is
purchased with FSC™ certification2 – including
for our chilled cartons from January 2024.
• GFSI (Global Food Safety Initiative) recognized
standards: All our packaging production plants
maintain top level certification with GFSI-
recognized standards – such as Brand
Reputation Compliance Global Standards
(BRCGS) packaging standard, Safe Quality
Food (SQF), Food Safety System Certification
(FSSC 22000), and International Featured
Standard (IFS) – except our chilled carton plant
in Taiwan which is currently certified to ISO
22000:2018 and working towards certification
to a GFSI-recognized standard.
• ISCC (International Sustainability and Carbon
Certification) PLUS: Certification to handle
ISCC PLUS certified materials is in place at all
our aseptic carton production plants, our
closure production plant in Switzerland, and
two bag-in-box production plants to handle
polymers linked to renewable or recycled
material via an independently certified
mass balance system.
• ISO 14001: ISO 14001 certification for
environmental management is in place
for SIG globally.
• 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 to ISO 27001 for
information security management is
maintained at SIG IT in China, Germany,
and Romania.
• ISO 45001: Global ISO 45001 certification is
maintained for health and safety management
for our aseptic carton production plants, and
at our chilled carton production plant in Taiwan.
The other two chilled carton production plants
and our bag-in-box and spouted pouch
businesses will complete audits in 2024
to join our global certification.
• ISO 50001: Certification to ISO 50001 for
energy management is maintained at our three
aseptic carton production plants in Europe.
• ISO 9001: Certification to ISO 9001 for quality
management is in place for our aseptic carton
production globally, and for some bag-in-box
and spouted pouch production plants.
• LEED: Our Middle East and Africa headquarters
in Dubai achieved Platinum LEED certification
for sustainable buildings, and our second plant
in Suzhou (China) and our new plant in
Querétaro (Mexico) achieved Gold.
• SEDEX Members Ethical Trade Audits (SMETA):
SMETA audits are completed on a two-yearly
cycle at our production plants, our office sites
in Australia and Mexico, and several SIG legal
entities in Germany and Switzerland.
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
2 Our cartons use paper-based liquid packaging board, referred to throughout as “paperboard”. SIG uses FSC™ Mix material that
allows the mixing of FSC™ certified wood with FSC™ controlled wood and ensures that an equivalent amount of FSC™ certified
wood is procured at the beginning of the value chain.
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Sustainability continued
Sustainability built in continued
Integrating new businesses
We welcomed our bag-in-box, spouted pouch
and chilled carton businesses to the Group in
mid-2022, through the acquisitions of Scholle IPN
and Evergreen Asia’s chilled carton business.
Since the acquisitions, we have been working to
integrate these businesses into our established
ESG governance, policies, and processes –
including relevant sustainability commitments.
We communicated our Code of Conduct to new
colleagues from day one, and rolled out training
on our ethical compliance and health and safety
practices shortly thereafter. We also invited them
to join our annual employee survey in 2022. By the
end of the first year of integration, we had already
incorporated the new businesses into our
greenhouse gas emissions accounting and Net
Zero pathway, and the three new plants that use
paperboard had achieved FSC™ Chain of
Custody certification.
This year, we continued to make progress by
integrating management of business functions
across the Group, and extending many of our
sustainability policies, processes, and
commitments to include the new businesses.
Highlights in 2023 include:
• Expanding our SIG Terra1 portfolio of our most
sustainable products to include recycle-ready2
bag-in-box and spouted pouch solutions.
• Obtaining approval from the Science Based
Targets initiative for SIG’s updated Net Zero
pathway, covering the entire SIG Group.
•
Implementing internal guidelines on sustainable
packaging design for our bag-in-box and
spouted pouch solutions, with accompanying
training for relevant teams.
• Extending our ISO 14001 Group certification to
include the new businesses.
• Successfully completing SEDEX SMETA audits
at all our new production plants.
• Revising our ESG Policy Manual to include our
new businesses and make clear where a
different approach is required in some
instances.
Key focus areas in 2024 will be the integration
of new businesses into our EcoVadis assessment
and our ISO 45001 certification for health and
safety management, as well as completing the
integration of procurement and quality
management processes.
1 Formerly SIGNATURE.
2
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
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Sustainability continued
Climate+
Climate+
We are targeting a Net Zero
value chain by 2050 – and
going further by enabling
others to cut their carbon
footprint.
79%
reduction in Scope 1 and 2 greenhouse
gas emissions from 2020
100%
renewable electricity for production
in 2023
Climate change threatens the health of people
and planet, and there is a rapidly closing window
of opportunity to secure a livable and
sustainable future for all. Risks to natural and
human systems are expected to be lower at 1.5°C
than at 2°C of global warming.1
To limit warming to 1.5°C, the world needs to
reach Net Zero – the point at which a balance is
achieved between emissions produced and
emissions removed from the atmosphere – by
2050.1 Tackling climate change is also closely tied
to efforts to halt biodiversity loss and support
nature positive outcomes. See Towards nature
positive
We are supporting global goals by driving
greenhouse gas emissions reductions in our
operations and throughout our value chain in line
with the latest standards of the Science Based
Targets initiative (SBTi). This helps us mitigate
climate-related risks for our business and meet
growing expectations from stakeholders for
corporate action on climate.
We are going further by enabling carbon
reductions beyond our value chain through net
positive ambitions across our sustainability action
areas – including Forest+
Food+
Sustainable innovation
, and
– all underpinned by our focus on
, Resource+
.
Our packs play a key role by offering customers
the lowest carbon packaging solutions in each
relevant market segment. They have a carbon
footprint up to 80% lower than alternatives, such
as plastic tubs and bottles, aluminum cans, or
glass bottles.2 Aseptic cartons, bag-in-box, and
spouted pouches also help reduce carbon
emissions by preserving food for long periods
without the need for refrigerated delivery or
storage – and by cutting food waste.
SIG is well positioned to grow market share in a
low carbon economy as customers seek to meet
growing consumer demand for low carbon
products and packaging.
Progress in 2023
We continued to drive progress towards our
science-based Net Zero target, which was
approved by the SBTi this year.
We sourced 100% renewable electricity for
production and installed vast solar arrays at
two sites to increase renewable capacity.3 All
the aluminum foil for our aseptic cartons is now
procured with ASI Certification and sales of our
lowest carbon solutions for aseptic cartons, in the
SIG Terra portfolio, grew by a further 12% globally.
Our innovative SIG Terra Alu-free + Full barrier
solution, which cuts the carbon footprint of our
aseptic cartons by 25%4 while maintaining full
barrier performance, had its first commercial
launches in 2023 and was recognized for its
climate potential at Packaging Europe’s
Sustainability Awards.
Read on for more on
Climate+
Or go to
Forest+
1 The Intergovernmental Panel on Climate Change (IPCC) Report.
2 The carbon footprint of SIG solutions is 11–80% lower than alternatives (such as plastic tubs and bottles, aluminum cans, or glass
bottles) lower than alternatives (such as plastic tubs and bottles, aluminum cans, or glass bottles) for a wide range of food and
beverages, based on independent critically reviewed life-cycle assessments for beverage cartons conducted in line with
ISO 14040 and ISO 14044 standards, and on preliminary results of our life-cycle analysis of bag-in-box and spouted pouch
solutions (an independent, critically reviewed life-cycle assessment for these solutions is in progress).
3 We currently purchase renewable electricity through Energy Attribute Certificates, as well as directly through on- or off-site Power
Purchase Agreements, to maintain 100% renewable electricity for production of our packs.
4 Based on independent ISO-compliant life-cycle assessment. Data has been critically reviewed and the full report will be published
in 2024.
SBTi approval for
our science-based
Net Zero target
The SBTi has approved our science-based
target to achieve Net Zero value chain
greenhouse gas emissions by 2050, together
with near- and long-term targets that will
help us get there (see below).
In 2017, we were one of the first in the
industry to set science-based targets.
These were validated by the SBTi the
following year in line with a 2°C climate
change scenario. In 2019, we went further
to set SBTi-approved targets in line with
the latest climate science to keep global
warming below 1.5°C.
Now, SIG is one of the first 325 companies
in the world to have its Net Zero target
validated by the SBTi. We are also part
of the SBTi’s Business Ambition for 1.5°C
campaign, an urgent call to action from a
global coalition of United Nations agencies,
business, and industry leaders, in partnership
with the Race to Zero.
Our SBTi-approved
science-based targets
Near-term commitments for 2030:
• 42% absolute reduction of Scope 1 and 2
greenhouse gas emissions (from 2020)
• 100% renewable electricity through 2030
• 51.6% reduction of Scope 3 greenhouse
gas emissions per liter packed (from 2020)
Long-term targets for 2050:
• 90% absolute reduction of Scope 1 and 2
greenhouse gas emissions (from 2020)
• 97% reduction of Scope 3 greenhouse gas
emissions per liter packed (from 2020)
• Net Zero value chain greenhouse gas
emissions
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Sustainability continued
Climate+ continued
Our commitment
We are committed to reach Net Zero greenhouse
gas emissions across our value chain by 2050,
supported by a series of near- and long-term
reduction targets. Our science-based targets
are approved by the SBTi (see previous page
).
Towards Net Zero
Our pathway to Net Zero prioritizes
decarbonization of our operations and value
chain in line with climate science to keep global
warming below 1.5°C. We are taking action
through a program of workstreams to support
progress in our operations and our value chain.
In our operations
In addition to maintaining 100% renewable
electricity for production of our packs, we are
working to further reduce Scope 1 and 2
greenhouse gas emissions from our
operations by:
• Seeking further energy savings through
efficiencies and technology changes where
feasible.
• Sourcing more of our renewable electricity
directly (rather than through certificates)
by investing in on-site solar and other power
purchase agreements (PPAs) that create
additional capacity.1
• Seeking viable alternatives to natural gas,
such as biogas, green hydrogen, or renewable
electricity, to reduce emissions from heating.
• Transitioning from fossil-based to bioethanol
or other bio-materials for printing our
aseptic cartons.
In our value chain
Steps to reduce Scope 3 greenhouse gas
emissions from our value chain – upstream
and downstream – include:
• Encouraging suppliers to set science-based
targets and take action to cut their greenhouse
gas emissions.
Driving positive impact beyond our
value chain
We also see significant opportunities to extend
our positive climate impact beyond our value
chain through strong alignment with other focus
areas of our sustainability approach. Examples
include:
• Continuing to offer the lowest carbon
alternative to other types of packaging,
supported by critically reviewed ISO
conformant life-cycle assessments,2
and increasing uptake of our lowest carbon
solutions.
• Supporting reductions in emissions from
transport and storage of food products by
offering aseptic packaging solutions that
preserve food in ambient conditions without
the need for refrigeration.
• Mitigating food waste, and associated
greenhouse gas emissions, by keeping food
safe and nutritious for consumers for up to
12 months in our long-life aseptic packaging.
• Reducing our use of carbon-intensive raw
materials, such as fossil-based polymers
and aluminum foil, through our focus on
sustainable innovation.
• Working with suppliers and logistic providers
to reduce emissions from inbound and
outbound logistics.
• Helping customers cut greenhouse gas
emissions from their factories by reducing
energy requirements for filling through our
innovation in new filling machines and
upgrade kits for existing machines.
•
Increasing collection and recycling rates for
our used packs to avoid emissions from landfill.
• Seeking lasting uses for the materials recycled
from our used packs that store embodied
carbon over the long term.
Our journey to decarbonizing our operations is
already informed by a carbon price in the form
of carbon offset pricing. We are exploring whether
a defined internal carbon price could support our
current management approach by incentivizing
decision-making that supports decarbonization,
including in relation to major capital expenditures.
For more information, see GRI content index
• Reducing food loss for customers by offering
highly efficient filling machines with low waste
rates – already the lowest in the industry for
aseptic carton filling – and continually looking
for ways to further enhance efficiency.
• Driving carbon reductions in the supply chain
for our industry and beyond as an early
adopter of transformative initiatives, such
as the Aluminium Stewardship Initiative (ASI)
Performance Standard which includes strict
requirements for carbon reductions in the
production of aluminum.
• Enabling and protecting carbon storage in
forest landscapes by sourcing from sustainably
managed forests.
• Restoring or creating additional hectares of
thriving forests (beyond those we need to
provide raw materials for our cartons3) that
store carbon and offer vital ecosystem services.
• Collaborating with renowned research institutes
and universities, such as EPFL (the Swiss
Federal Institute of Technology Lausanne),
to innovate and develop cutting-edge
sustainable materials with higher paper
content for future packaging solutions.
1 We currently purchase renewable electricity through Energy Attribute Certificates, as well as directly through on- or off-site Power
Purchase Agreements, to maintain 100% renewable electricity for production of our packs.
2 For a wide range of food and beverages, based on independent, critically reviewed life-cycle assessments conducted in line with ISO
14040 and ISO 14044 standards.
3 Based on the equivalent forest area needed to continually regenerate the wood needed to produce all the SIG cartons made in 2020
(the year we set the commitment) all over again.
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Sustainability continued
Climate+ continued
Reducing carbon footprint at every stage of the life-cycle
We are committed to continue offering our customers the lowest
carbon packaging solutions in every market segment and pioneering
even lower carbon packs, guided by our science-based life-cycle
approach. The visual below shows how we are working to reduce
the carbon footprint of our packs at every stage of their life-cycle.
For more on the results of our life-cycle assessments, see Sustainable innovation
Aseptic carton3
Bag-in-box⁴
Spouted pouch5
Sourcing
56%
Manufacturing 6%
Transport
19%
Filling
10%
Recycling
9%
Sourcing
55%
Manufacturing 10%
Transport
18%
Filling
7%
Recycling
10%
Sourcing
40%
Manufacturing 2%
Transport
24%
Filling
22%
Recycling
12%
Design
Minimizing the life-cycle
impacts of our packaging
solutions starts with design.
Environmental factors are core
value drivers in our product
development and we are
cutting carbon further through
sustainable innovation. Key
focus areas include reducing
use of virgin fossil-based
polymers or replacing them
with renewable or recycled
alternatives, eliminating the
need for carbon-intensive
aluminum, optimizing resource
use in packs and filling, and
making more of our bag-in-box
and spouted pouch solutions
recycle-ready.
Sourcing
Our cartons are made mainly
from renewable paperboard.
We are sourcing more
renewable polymers1 for our
SIG Terra solutions. We offer
recycled polymers2 for aseptic
cartons and we are piloting
these for bag-in-box. We also
reduce the carbon footprint of
materials by sourcing them
with certifications, such as
FSC™, which provides carbon
benefits from sustainable
forestry, and ASI, which
requires aluminum smelters to
limit their carbon emissions.
Manufacturing
We make our packaging using
100% renewable electricity and
we compensate emissions
from use of non-renewable
energy in production through
Gold Standard CO2 offsets
while we explore viable
alternatives. Our ISO 14001
certified environmental
management systems support
continuous improvement in
energy use and greenhouse
gas emissions at our plants.
Transport
Our aseptic packs avoid the
need for fuel-intensive
refrigerated transport by
enabling food to be safely
transported in ambient
conditions. Our packs also help
customers cut emissions from
distributing their products as
they are lighter weight and use
space more efficiently than
alternative packaging types.
We further reduce transport
emissions by delivering our
packs to customers in
compact form and filling
trucks fuller for fewer journeys
and less fuel use.
Filling
Our aseptic filling technology
helps to prevent food waste
– a major driver of global CO2
emissions – by enabling food
to be safely stored with a shelf
life of up to 12 months.
We also strive to improve the
efficiency of our filling
machines with every new
generation. Our technical
service teams help aseptic
carton customers minimize
energy use, and associated
carbon emissions, in their
factories, including through
upgrade kits that reduce the
amount of energy needed to
operate our existing machines.
Recycling
All our cartons are designed to
be fully recyclable and we are
working to make more of our
bag-in-box and spouted pouch
solutions recycle-ready.
We work through industry
associations to advocate
enabling legislation and we
partner with a range of local
stakeholders on programs to
improve collection and
recycling rates of used
packaging to cut emissions
from landfill and keep
materials in circulation.
See Sustainable innovation
See Our supply chain
See more on our use of renewable
energy
measures at our plants
and on energy efficiency
See more on logistics
See Sustainable innovation
See Resource+
1 Linked to forest-based renewable material via an independently certified mass balance approach.
2 Linked to post-consumer recycled plastics via an independently certified mass balance approach.
3
Illustrative figures referring to the climate change impact of an average 1 liter SIG aseptic beverage carton in EU27+3 based on
indicative results from our internal LCA tool.
4
5
Illustrative figures referring to the climate change impact of an average 3 liter retail bag-in-box in EU27+3 based on indicative results
from our internal LCA tool.
Illustrative figures referring to the climate change impact of an average small-size spouted pouch in EU27+3 based on indicative results
from our internal LCA tool. Contribution from filling includes forming and sealing of spouted pouch.
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Sustainability continued
Sustainability continued
Climate+ continued
Climate+ continued
Climate-related risks and
opportunities
We follow the recommendations of the
Task Force on Climate-related Financial
Disclosures (TCFD) to identify, manage,
and report climate-related risks and
opportunities for our business – including
potential financial impacts.
See our TCFD report for more information, including
scenario analysis and how we have embedded climate
mitigation and adaptation as part of our risk
management approach
.
We also disclose additional information on
climate risks and opportunities through our
annual responses to the CDP and S&P Global
Corporate Sustainability Assessment (used
to inform the Dow Jones Sustainability
Indices responses).
Our targets
2025 target
Progress tracker
Net Zero value chain greenhouse gas emissions
by 2050
More work to do
Reduce Scope 1 and 2 greenhouse gas emissions
by 42% by 2030 – and by 90% by 2050
(from 2020)
On track
Reduce Scope 3 greenhouse gas emissions by
51.6%1 per liter packed by 2030 – and by 97% by
2050 (from 2020)
More work to do
Maintain 100% renewable electricity1 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 our aseptic cartons2
Reduce CO2 emissions from inbound and
outbound logistics by 18% (from 2020)3
On track
On track
On track
On track
1 Target wording changed in 2023 in line with SBTi-approved target.
2 Target wording amended to clarify that this applies to our aseptic cartons only.
3 Target revised to include the bag-in-box, spouted pouch, and chilled carton businesses we acquired in 2022.
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Sustainability continued
Climate+ continued
Performance in 20231
SIG Group carbon footprint Scope 1 and 2
(thousand metric tons of CO2 equivalent)
Scope 3 emissions by category
in 20234
Towards Net Zero
• The SBTi approved our science-based Net Zero
target (and accompanying near- and long-term
targets), and we are driving progress through a
series of workstreams targeting reductions in
our operations and our value chain.
• We continued to decarbonize our operations,
reducing Scope 1 and 2 greenhouse gas
emissions by 19% in 2023, and by 79% from the
2020 baseline, putting us well on track to meet
our near-term reduction target of 42% by 2030.
• Value chain Scope 3 greenhouse gas emissions
remained at a steady level in 2023, with an
increase in the number of filling machines sold
and disproportionate growth in smaller
packaging units contributing to a delay in Scope
3 emissions reductions. Scope 3 greenhouse
gas emissions per liter of food packed in SIG
packs decreased by 1% in 2023 and by 6%
compared with 2020.
• Overall, Scope 1, 2, and 3 greenhouse gas
emissions per liter of food packed in SIG packs
have decreased by 9% in 2023 compared
with 2020.
Scope 1
Scope 2 (market based)2
Total
20206
31.4
69.1
100.4
20216
30.1
45.8
75.9
20226
26.6
47.1
73.6
2023
20.9
0
20.9
Value chain carbon footprint (million metric tons of CO2 equivalent)3
Total Scope 3
2020
1.90
2021
1.93
2022
1.95
2023
1.90
Value chain footprint and emissions rates (grams of CO2 equivalent/
liter of food packed)3
Scope 3 greenhouse gas
emissions (grams CO2 equivalent)
per liter packed
Scope 1, 2, and 3 greenhouse gas
emissions (grams CO2 equivalent)
per liter packed
2020
2021
2022
2023
68
72
66
68
65
67
64
65
Purchased goods and services – 61%
End-of-life of treatment of products – 14%
Use of products – 12%
Upstream transportation – 6%
Downstream transportation – 3%
Fuel and energy-related activities – 3%
Other (waste and business travel) – 1%
Energy use for production (GWh, by type)
Natural gas
Liquified natural gas
Diesel
Electricity (non-renewable)
Electricity (renewable)
Total
20205
20215
20225
2023
133
6
1
34
209
383
133
7
1
0
261
402
112
6
1
0
269
388
88
8
1
0
395
492
1 Scope 3 greenhouse gas emissions data includes our
production plant in Baie-d’Urfé and our production plant in
Voronezh.
2 Location-based emissions (based on the electricity grid
average amount) totaled 163 thousand metric tons of CO2
equivalent in 2023.
3 Data includes our production plant in Baie-d’Urfé and our
production plant in Voronezh. Data for previous years adjusted
in line with our restatement policy, which follows Greenhouse
Gas Protocol requirements.
4 Data includes our production plant in Baie-d’Urfé and our
production plant in Voronezh.
5 Energy data for previous years is for our aseptic carton
business only.
6 Restatement based on changed emission factors 2023
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Investing in renewable energy
• We continued to purchase 100% renewable
electricity for production, including for our
newly acquired businesses from
January 1, 2023.
• We increased the positive impact we deliver
through our sourcing of renewable electricity
by securing more physical power purchase
agreements (PPAs) that support further
investment in renewable power as part of the
global energy mix.
• Our on-site solar capacity has more than
tripled to 34.5 MWp this year with two major
installations coming online in Germany (see
right), as well as smaller installations in Mexico
and Switzerland. We have also identified more
opportunities for on-site solar in Brazil, Saudi
Arabia, the United Arab Emirates, and the USA.
• Local initiatives included:
• A range of projects at our plants in China
– including waste heat recovery, upgrades
to more efficient lighting and equipment, and
energy management systems – that together
saved 1,300 MWh of electricity, 112,000 m3
of natural gas, and an estimated 986 metric
tons of CO2-equivalent emissions per year.
Our Suzhou aseptic carton production plant
received government recognition in 2023 as
a Green Factory in Jiangsu Province, based
on its environmental performance and role
in championing green manufacturing.
• A new heat recovery system that has cut
natural gas use by 45% at our plant in Austria
– saving an estimated 790 metric tons of
CO2-equivalent emissions per year – by
harnessing heat from production equipment
to provide heat needed for printing.
•
Infrastructure improvements, including highly
efficient chillers and heat recovery systems,
implemented over the last four years that
have together contributed to a 64%
reduction in CO2-equivalent emissions at
our plant in Linnich (Germany) compared
with 2019.
• Energy efficiency measures built into the
design of our new plant in Mexico that helped
it achieve Gold certification to the LEED
sustainable building standard (see left).
Sustainability continued
Climate+ continued
Decarbonizing our operations
We continued to focus on reducing carbon
emissions in our operations by further improving
energy efficiency, while continuing to source
100% renewable electricity for production.
Improving energy efficiency in our operations
• All SIG’s production sites globally achieved
certification to ISO 14001 (including the plants
we acquired in 2022). Accompanying training
helped employees understand how they can
play their part in cutting our environmental
impacts, including energy use and greenhouse
gas emissions.
• We maintained ISO 50001 certification for
energy management systems at our three
aseptic carton production plants in Europe.
• Energy conservation programs contributed
to a 4.4% reduction in the energy intensity of
our aseptic carton production to 175 MWh/
million m2 of sleeves produced in 2023. They
also supported a 16% decrease in greenhouse
gas emissions intensity for our aseptic carton
production to 10 metric tons of CO2 equivalent/
million m2 of sleeves produced in 2023.
Sustainable design cuts
carbon
at our new plant in Mexico
Our new aseptic carton production plant in
Querétaro (Mexico), opened this year, has
achieved the Gold sustainable building
standard from LEED. The plant’s low carbon
design features LED lighting, automated
lighting shut-offs, a building management
system that optimizes the use of air
conditioning, and rooftop solar panels that
will generate around 990 MWh of renewable
electricity per year.
• On-site solar power met 5.1% of our global
electricity needs for production this year and
overall renewable PPAs (both on- and off-site)
met 21.8%.
• We are also exploring the feasibility of
alternatives to replace heating from fossil fuels,
including potentially using renewable electricity
for heat as well as power. In the meantime, we
continue to compensate all non-renewable
energy from production through Gold
Standard CO2 offsets.
New solar arrays triple SIG’s
solar energy generation
Vast new solar arrays at two of our
production sites in Germany have more than
tripled our global on-site renewable energy
capacity this year. Both sites use a
combination of rooftop and ground-mounted
arrays to maximize the amount of power
they can generate.
The 22,300 photovoltaic panels installed at
Linnich provide 10.25 MWp of power and
19,000 panels at Wittenberg supply 9.2 MWp
of power. The renewable electricity they
generate will avoid over 5,600 metric tons
of CO2 equivalent emissions per year.
We already use 100% renewable electricity
to produce our packs worldwide, mainly
procured through Energy Attribute
Certificates. Now we are improving the
quality of this renewable electricity through
physical power purchase agreements (PPAs)
that support investment in additional
renewable capacity – on our own sites or
beyond – as part of the global energy mix.
The new on-site solar installations –
combined with wind power on a real-time
supply basis and a flexible top-up of
hydropower – now provide 100% of the
electricity for our aseptic carton production
in Germany through physical PPAs.
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Driving positive impact beyond our
value chain
See Forest+
we are driving positive carbon impact beyond our
value chain.
, Resource+
, and Food+
for other ways
Sustainability continued
Climate+ continued
Decarbonizing our value chain
We have continued to drive reductions in
Scope 3 emissions from:
• Raw materials: From January 2023, the
aluminum we source for our aseptic cartons
comes from ASI Certified sources, which
includes strict requirements on carbon
reductions in aluminum production. We
continued to engage with suppliers to
encourage targets and actions to reduce
emissions. This year, Stora Enso, one of our
main paperboard suppliers, committed to Net
Zero emissions by signing The Climate Pledge
and invested in a new on-site solar installation
at one of the paper mills we source from.
We are sourcing more polymers linked to
renewable content1 as uptake for our SIG Terra
Forest-based polymers grows, and eight of our
nine aseptic carton production plants have
transitioned from fossil-based to plant-based
ethanol for printing.
• Logistics: We are targeting an 18% reduction in
emissions from transportation (inbound and
outbound) across SIG Group by 2025. This year,
these emissions have decreased by 18% from
the 2020 baseline. Future reductions in
outbound logistics will depend on the availability
of lower carbon alternatives in the truck market
and we have engaged with a logistics provider
to explore the viability of using electric trucks.
Our new aseptic carton production plant in
Mexico has increased local production capacity
to serve the Americas, reducing transport
distances to customers, and globally we have
maintained a high rate of full truck loads (95%)
for delivery of our aseptic cartons.
• Filling: The first commercial filling has begun
using SIG NEO, our next-generation filling
machine for family-size aseptic cartons, which
is designed to cut energy use and offer a 25%
lower carbon footprint.2 We also supported
customers in reducing use of utilities – and
related greenhouse gas emissions – for filling
through the SIG EcoFill Consulting program and
new kits that reduce the amount of compressed
air needed for filling.
• Recycling: We continued to advocate and
partner with others to support increased
collection and recycling of packs after use,
and we have set ambitious new targets to
drive progress. See Resource+
Reducing the carbon footprint of our
packaging solutions
• SIG Terra3 solutions that lower the carbon
footprint of our aseptic cartons by up to 63%4
have now avoided an estimated 68,600 metric
tons of CO2 equivalent emissions (compared
with standard SIG aseptic cartons).5 Sales of
these solutions increased by a further 12%
this year.
• Our innovative SIG Terra Alu-free + Full barrier
solution – which cuts the carbon footprint of our
aseptic cartons by 25%6 and offers equivalent
barrier properties to protective sensitive food
such as juices without the need for an aluminum
layer – had its first commercial launches in 2023
and was recognized for its climate potential at
Packaging Europe’s Sustainability Awards.
• Further life-cycle assessments this year
reconfirmed that our cartons offer customers
the lowest carbon solutions compared with
alternative types of packaging across different
regions and market segments. Independent,
critically reviewed, ISO-compliant life-cycle
of our newly acquired bag-in-box and spouted
pouch solutions are in progress, building on
our initial analysis in 2022.
See Sustainable Innovation
1 Via an independently certified mass balance system.
2 Estimated reductions for the filling and packaging process per pack compared with our previous generation filling machines,
to be confirmed through first commercial filling.
3 Formerly SIGNATURE portfolio.
4 Based on independent, critically reviewed life-cycle assessments conducted in line with ISO 14040 and ISO 14044 standards.
5 Compared with standard SIG packaging material for aseptic cartons, based on EU27+3 average, cradle-to-grave results of
independent, critically reviewed life-cycle assessments conducted in line with ISO 14040 and ISO 14044 standards.
6 Based on independent ISO-compliant life-cycle assessment. Data has been critically reviewed and the full report will be
published in 2024.
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Restoring forest ecosystems in Mexico
Mexico is home to 12% of the world’s species, making it one of
the world’s most biodiverse countries. It is also one of the most
deforested, with a staggering 180,000 hectares of forest lost
every year.5
We have joined forces with WWF Switzerland and WWF Mexico
on a project to improve the landscape management of 100,000
hectares of forest landscapes, and to reforest and restore a
further 750 hectares of degraded land, in the Central Pacific
landscape on Mexico’s western coast. The project will support
key ecosystems and help secure a critical corridor for jaguars
to move across forest and mangrove habitats.
This year, the project team analyzed jaguars’ habitats and
movements to pinpoint which areas are critical to their
preservation, and engaged with local stakeholders on how to
improve forest management in a way that fosters coexistence
between local communities and wildlife. The findings will inform
a roadmap for reforestation and restoration that will begin
in 2024.
View video
Sustainability continued
Forest+
Forest+
We are protecting, restoring,
or improving management of
forests – beyond what it takes
to make our packs. Helping
forests thrive is one of the
ways we are creating positive
outcomes for nature.
We continued to purchase
100%
of the paperboard for our aseptic
cartons with FSC™ certification
Project in Mexico to improve
management of
100,000
hectares of forest landscapes
Progress in 2023
We continued to purchase
100% of the paperboard for our
aseptic cartons with FSC™
certification3 and achieved this
milestone for our newly
acquired chilled carton
business from January 2024.
Our first on-the-ground project
with WWF Switzerland is
underway in Mexico to support
progress towards our 2030
target to create, restore,
protect, or improve
management of 650,000
hectares of forest beyond what
we use in our packs.4
Read on for more on
Forest+
Or go to
Resource+
The world’s forests create essential ecosystems
for wildlife and people, play a critical role in
regulating the climate, and offer a wealth of
natural resources that can be continually
renewed. They also provide the raw materials for
the paperboard that makes up most (an average
of 75% or more) of our cartons1 – and the wood
residues from paper making that link SIG Terra
Forest-based polymers to 100% renewable
materials.2
We protect the forests we source from through
Forest Stewardship Council™ (FSC™) certification
which assures us, our customers, and consumers
(through the FSC™ label on our packs) that the
paperboard we use in our cartons comes from
sustainably managed forests and other
controlled sources.3
We are going further through partnerships to
create, protect, restore, or improve management
of additional areas of forest beyond our
value chain.
Our Forest+ commitments will help us secure a
continually regenerated supply of raw materials
for our business to serve our customers now and
in the future. Through these commitments, we
are also supporting global goals on climate and
nature by tackling forest loss and degradation
that contribute to climate change and
biodiversity loss (see Towards nature positive
).
We also strive to reduce pressure on forest
land and resources through our commitments
to increase recycling of used cartons so
forest-based materials can be used again
to create new paper and board products
(see Resource+
).
1 Our cartons use paper-based liquid packaging board, referred to throughout as “paperboard”. Our supply
chains for bag-in-box and spouted pouch solutions are not connected to forest-based materials as we do not
manufacture or sell the cardboard box of our bag-in-box solutions.
2 Via an independently certified mass balance system.
3 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and
ensures that an equivalent amount of FSC™ certified wood is procured at the beginning of the value chain.
4 Based on the equivalent forest area needed to continually regenerate the wood needed to produce all the SIG
cartons made in 2020 (the year we set the commitment) all over again.
5 World Economic Forum
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Sustainability continued
Forest+ continued
Our commitment
Sourcing from sustainably
managed forests
FSC™ certification ensures that forests
are managed sustainably and continually
regrown – to avoid forest degradation or
deforestation, protect biodiversity, maintain
ecosystem services and carbon storage,
and respect the rights of workers, local
communities, and indigenous peoples.
We have led the industry in our commitment
to FSC™ certification and partnership with
FSC™. We first achieved FSC™ Chain of
Custody certification at all the paper mills
we source from and all carton production
sites and sales offices in 2009, enabling
the board used in our cartons to be traced
through the supply chain to sustainably
managed forests.
All the paperboard for our aseptic cartons
is procured with FSC™ certification1 –
an industry first, achieved in 2021 – and
we achieved this milestone for our newly
acquired chilled carton business from
January 2024. Customers can include the
FSC™ label2 on any of our cartons to
demonstrate their commitment to
sustainable sourcing and we encourage
them to do so to raise consumer
awareness of sustainable forestry.
Partnering to expand our
positive impact
The area of forest needed to produce our
cartons is already protected and continually
regrown through FSC™-certified forestry
management. To increase our net positive
impact, we are committed to create, restore,
protect, or improve management of an
additional 650,000 hectares of forest by
2030 – beyond what we use for our cartons,
which is regrown. See right how we quantified
this target.
How we quantified our
650,000 hectare target
In 2020, we set out to create, restore, protect, or
improve management of an additional 650,000
hectares of forest by 2030 – that’s one additional
hectare of forest for every hectare we sourced
from that year.
We calculated the area of sustainably managed
forest it took to produce the raw materials for
all the cartons we made in 2020 based on the
following assumptions:
400,000
metric tons of paperboard used
to produce our cartons in 2020
= 2 million m3
of wood needed to make the cartons
we produced in 2020
around
x
÷
= 650,000
hectares of forest that is continually regrown to produce our cartons
5 m3
of wood needed to produce each
metric ton of paperboard
3 m3
of wood produced (and continually
regenerated) on average per hectare
of FSC™-certified forest in Sweden
(where much of the wood for our
paperboard comes from)
WWF has confirmed this is a rigorous
commitment and rationale.
1 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood
with FSC™ controlled wood and ensures that an equivalent amount of FSC™
certified wood is procured at the beginning of the value chain.
2 The FSC™ label that customers can include on SIG packs is the FSC™ Mix
label, which means the product is made with a mixture of materials from
FSC-certified forests, recycled materials, and/or FSC-controlled wood.
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Sustainability continued
Forest+ continued
We are partnering with WWF
Switzerland to invest directly
in field projects that will help
us deliver measurable progress
towards our 650,000 hectare
commitment. Each project is
carefully selected to deliver
targeted positive outcomes
for nature, with a strong focus
on biodiversity.
As a participant in WWF’s
Forests Forward program,
we have committed to a series
of actions (see table on the
next page) that are 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.
We have a longstanding partnership with the FSC™ to
support the development and implementation of its
rigorous certification standard.
Through a five-year partnership with WWF Switzerland, we are
investing directly in field projects to create, protect, restore,
or improve the management of forest land, with a strong focus
on biodiversity.
We are a participant in WWF’s Forests Forward program,
which supports companies to scale up action on forests and
drive lasting change that makes a tangible difference to people
and the planet.
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 products1 by 2030
Partner with a non-governmental organization
(NGO) to develop a methodology to measure
the impact of FSC™ certification
Work with customers to include the FSC™ label
on 100% of the cartons we sell (up from 97%
in 2020)2
Maintain 100% FSC™-certified supply of
paperboard for our cartons3 (also a target
for Supply Chain)
Progress tracker
On track
More work to do
On track
On track
1 Based on the equivalent forest area needed to continually regenerate the wood needed to produce all the SIG cartons made in 2020 (the year we set the commitment) all over again.
2 Target wording amended to clarify that this target refers only to cartons (as our other packs do not use paperboard) and to clarify the baseline figure SIG is working from.
3 Target wording revised to clarify that it only applies to our cartons (aseptic and chilled). Our cartons use paper-based liquid packaging board, referred to throughout as “paperboard”.
Our supply chains for bag-in-box and spouted pouch solutions are not connected to forest-based materials as we do not manufacture or sell the cardboard box of our bag-in-box
solutions.
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Sustainability continued
Forest+ continued
Performance in 2023
Sourcing from sustainably managed
forests
• We continued to purchase 100% of the
paperboard for our aseptic cartons with FSC™
certification – and achieved this milestone for
our chilled carton business (acquired last year)
from January 2024. Overall, 98% of the
paperboard for our cartons was procured with
FSC™ certification in 2023.
• Almost all (99%) of the 44 billion aseptic packs
we sold last year carried the FSC™ label.
To close the remaining gap, we are working with
the small number of customers not using the
FSC™ label to integrate it into their next décor
design update. We are also beginning to engage
with customers of our newly acquired chilled
carton business on this topic. Overall, 94% of
the cartons (aseptic and chilled) we sold in
2023 carried the FSC™ label.
• We maintained FSC™ Chain of Custody
certification across our aseptic and chilled
carton production sites globally.
• We began engaging with suppliers regarding
the requirements of the EU Deforestation
Regulation.
Partnering to expand our positive
impact
• The first on-the-ground project through our
five-year partnership with WWF Switzerland
is underway to restore and protect degraded
forest in Mexico (see case study
the landscape management of 100,000
hectares of forest, as well as reforesting and
restoring a further 750 hectares of degraded
land, this project will make an important
contribution towards our target to create,
restore, protect, or improve management
of 650,000 hectares of forest by 2030.
). By improving
• We made good progress on the public
commitments we have made through WWF’s
Forests Forward program, which is working with
businesses and local communities to help
change the way forests are valued, managed,
protected, and restored (see right).
Maintain achievement of SIG’s
100% FSC™ sourcing goal (first
reached in 2021)
By end of 2024, key liquid
packaging board1 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
Our Forests Forward commitments
Commitment
Progress in 2023
We continued to purchase 100% of the
paperboard for our aseptic cartons with
FSC™ certification and achieved this
milestone for our chilled carton business
(acquired last year) from January 2024.
We are engaging with key suppliers to
help us achieve these commitments.
Global goals
supported
SDG 12.6 & 12.7
SDG15.7
We have joined the SBTN Corporate
Engagement Program this year, as well
as presenting our Forest+ approach to
customers.
Our first on-the-ground project with WWF
Mexico will support a biodiversity hotspot
and secure an important corridor for the
jaguar, as well as creating enabling
conditions for forest landscape
restoration at a local and national level.
A second project with WWF is
in development.
SDG15.2
See Contribution to the United Nations Sustainable Development Goals for more
1 Our cartons use paper-based liquid packaging board, referred to throughout as “paperboard”.
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Towards
nature positive
The world’s natural ecosystems
are declining at unprecedented
rates1 – driven by changes in land
and water use, exploitation of
natural resources, environmental
pollution, and climate change.
Since 1970, global wildlife populations
have been decimated by an average of
69%
Global economy under threat from
biodiversity loss
50%
Since 1970, global wildlife populations have
been decimated – by 69% on average –
and 1 million species face extinction today.2
This is not only catastrophic for nature,
but for people and businesses, with 50%
of the global economy under threat from
biodiversity loss.3
The Global Biodiversity Framework, adopted
at the COP15 summit in December 2022,
has catalyzed efforts to tackle biodiversity
loss and restore natural ecosystems with
far-reaching global goals for 2030. These include:
conservation, management, and restoration
of ecosystems; halving food waste; providing
information to help consumers make sustainable
choices; and requiring companies to monitor,
assess, and disclose biodiversity risks,
dependencies, and impacts through
the value chain.
The framework requires businesses to do
their part, and stakeholders increasingly expect
us to take action. Regulations and reporting
requirements are growing in this area.
Biodiversity loss is second only to climate
change on the list of environmental concerns
for consumers globally – and tops the list in
Brazil and China.4 And investors want companies
to demonstrate that they are addressing
nature-related financial risks and opportunities.
Biodiversity: Time to Act
SIG contributed to a study – Biodiversity:
Time to Act – on the biodiversity
opportunities and risks for Swiss businesses.
The study, published this year, was
produced by WWF and consulting firm Bain
& Company. It found that risk mitigation is
becoming more important, and biodiversity
pioneers are expected to gain tangible
competitive advantages in the medium
and long term.
1 United Nations Report.
2 WWF Living Planet Report, Biodiversity: Time to Act.
3 WEF.
4 SIG analysis, UEBT Biodiversity Barometer 2022.
Read the study
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Sustainability continued
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How we contribute
Delivering regenerative impact
for the planet is fundamental to
our net positive ambition.
We are contributing to global goals to reverse
biodiversity loss and create positive outcomes
for nature through our four interconnected net
positive action areas:
Climate+
Biodiversity loss is closely related to climate
change and the related harm to wildlife and
ecosystems from more frequent droughts,
flooding, and desertification. Projected loss of
terrestrial and freshwater biodiversity significantly
rises with higher temperature scenarios above
2°C.1 Our science-based Net Zero targets are
aligned with the Paris Agreement’s global goal
to limit temperature increase to 1.5°C.
See Climate+
Forest+
Forests are home to most (80%) of the planet’s
land-based plant and animal species,2 but
10 million hectares of forests are lost every year.3
We are contributing to efforts to protect and
restore these ecosystems, to help them thrive.
We do this by sourcing paperboard for our
cartons with FSC™ certification, and partnering
with WWF Switzerland to protect and restore
forest landscapes that offer critical habitats.
See Forest+
Resource+
We manage biodiversity impact in our supply
chain by sourcing paperboard and aluminum for
our cartons with FSC™ and ASI Certification,
respectively. By improving waste collection
systems, we are helping to prevent used
packaging entering the environment as litter that
can harm wildlife, particularly in the world’s
oceans. This also provides a source of recycled
raw materials for other industries that in turn
relieves pressure on nature from sourcing
additional virgin raw materials.
See Resource+
Food+
The global food production system is the primary
driver of biodiversity loss.4 The Global Biodiversity
Framework targets a 50% reduction in global
food waste,5 which will in turn help reduce climate
impacts, pressure on land and resources, and
associated impacts on biodiversity. Our aseptic
packs help to reduce waste by keeping food safe
and nutritious for longer and without the need for
refrigeration, and our innovative Cartons for
Good project, led by the SIG Foundation, turns
food loss into nutritious meals. We are also
partnering to explore further ways to support the
transition to a regenerative and just food system.
See Food+
Forests are home to most of the planet’s
land-based plant and animal species
80%
1 WWF.
2 WWF.
3 UNEP.
4 Chatham House report, Food System Impacts on Biodiversity
Loss supported by UNEP.
5 Convention on Biological Diversity.
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Taking a science-based approach
Our assessment of SIG’s most material topics
(see Our material topics
to forest ecosystems, where we can have the
biggest impact on reducing biodiversity loss and
delivering positive outcomes for nature.
) links biodiversity closely
We have already set a quantified nature positive
target to create, restore, protect, or improve
management of an additional 650,000 hectares
of forest by 2030, using a rigorous rationale that
was confirmed by WWF (see how we quantified our
).
650,000 hectare target
We will build on this by working towards
science-based targets for nature, encompassing
a range of environmental impacts, that can be
externally verified in line with emerging standards.
To do this, we will use tools and methodologies
developed by the Science Based Targets Network
(SBTN), which released the first guidance on
science-based targets for nature this year. We will
contribute our expertise to the development of
further guidance on science-based targets for
nature as a member of the Science Based
Targets Network (SBTN) Corporate
Engagement Program.
We are engaging with others, including the
Sustainability and Health Initiative for NetPositive
Enterprise (SHINE), on ways to make use of
established tools, such as life-cycle assessment,
to help measure and communicate biodiversity
impact in a standardized way to support informed
stakeholder choices, for example by consumers,
based on a product’s impact on nature.
Science Based Targets Network
SIG is a Science Based Targets Network
(SBTN) Corporate Engagement Program
participant, pledging alignment with the
SBTN’s goals and vision, and contributing
advice and end-user insights to the
development of SBTN methods and tools.
Managing nature-related risks and
opportunities
Our business depends on nature and the
ecosystem services it provides. Forest-based
paperboard is the main raw material for our
cartons, and the food that customers use our
packs to deliver is made from ingredients that
come from farmland. The production of
paperboard also depends strongly on water
resources.
SIG policies on Responsible Sourcing,
Environment, Health and Safety, and Product
Stewardship set out our commitment and
procedures for managing biodiversity impact
across our value chain. See ESG policies.
Measures include:
• Sourcing raw materials from certified
responsible sources, including all paperboard
for our cartons with FSC™ certification, and
engaging with paperboard suppliers on their
biodiversity strategies.
• Maintaining ISO 14001 certification for
environmental management across our global
operations, assessing compliance with
environmental standards through rigorous
SEDEX SMETA audits at all our production sites,
and identifying high-risk sites to support
targeted mitigation measures.
• Reducing food loss and waste through our
aseptic packs and highly efficient filling
machines, and improving waste collection
systems to prevent packaging waste entering
the environment as litter – as well as
encouraging customers to include the FSC™
label and the ASI Responsible Aluminium
Sourcing logo on relevant packs to raise
consumer awareness and enable informed
purchasing choices.
We are working on a detailed analysis to identify
nature-related dependencies, impacts, risks, and
opportunities as part of our preparations for
reporting in line with the recommendations of the
Taskforce on Nature-related Financial Disclosures
(TNFD).
We consider potential biodiversity-related risks
within our enterprise risk management and have
started to assess our exposure to sensitive
biodiversity areas. In 2023, we used the WWF
Biodiversity Risk Filter to conduct an initial
self-assessment risk mapping based on the state
of biodiversity health at our sites around the world
to help us identify biodiversity-related risks
related to our operational footprint. Our
self-assessment of water-related risks using the
WWF Water Risk Filter (see Resource+
) informs
our assessment of risks, dependencies, and
impacts on water.
Nature-related risks and opportunities are
managed as part of our governance on
sustainability and ESG matters, with oversight
from the Board of Directors’ Nomination and
Governance Committee (see Sustainability built in;
Governance
).
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Resource+
Resource+
We are accelerating progress
towards a circular economy
that eliminates waste and
regenerates nature.
At least
90%
paper content aseptic carton targeted
by 2030
Recycle-ready
bag-in-box and spouted pouch solution
in all our relevant market segments
targeted by 2025
Our cartons are made mainly from renewable
paper content, sourced from sustainably
managed forests and other controlled sources,
and are designed to be fully recyclable. We offer
innovative solutions that enhance circularity by
eliminating aluminum foil, linking polymers to
renewable or recycled materials, tethering caps,
and swapping plastic for paper straws.
We are also innovating to make more of our
bag-in-box and spouted pouches recycle-ready1
and to link their polymer content, already
optimized through lightweighting, to
post-consumer recycled plastics.2
We are going further with bold ambitions to
further increase paper content in our cartons,
keep high-quality materials in circulation, and
avoid waste entering the environment as litter
through effective waste collection and increased
recycling (see right).
We strive to optimize material use by
lightweighting our packaging (including closures
and connection systems), minimizing production
waste, and innovating to make our filling
machines even more efficient. Certified systems
help us continuously improve resource use –
including managing waste and water – in our
operations and supply chain.
Our Resource+ commitments help customers
reduce the environmental impact of their
packaging, comply with growing regulations
that mandate extended producer responsibility
for packaging waste, and reduce resource use for
filling lines at their factories. They also contribute
to global goals on climate (see Climate+
nature (see Towards Nature Positive
) and
).
Our Resource+ ambitions
1
2
3
4
5
Achieve a 90%
collection and
70% recycling
rate for our
beverage
cartons in
Europe by 2030
Offer a recycle-
ready1 bag-in-
box and spouted
pouch solution
in all our relevant
market
segments
by 2025
Keep materials
in circulation
by offering
renewable and/
or recycled
polymer
content2 for all
our packaging
by 2025
Help eliminate
litter by
increasing used
packaging
collection
worldwide
through our
advocacy efforts
Partner with
industry and
stakeholders
to strive for
recycling at
scale for all
our packaging
in all our priority
markets
Progress in 2023
We have set bold new ambitions for 2025 and
2030 to catalyze progress on circularity across
our packaging portfolio.
Our innovative SIG Terra Alu-free + Full barrier
aseptic carton solution with no aluminum layer
had its first commercial launches, we added
recycle-ready1 bag-in-box and spouted pouch
solutions to our SIG Terra portfolio, and we trialed
a circular bag-in-box solution. The first
saveBOARD recycling facility opened in Australia,
making high-performance construction materials
from used beverage cartons, and two more are in
development. We have extended our social
recycling programs in Egypt and Indonesia,
and our Recicleiros model for municipal waste
collection has been adopted as federal policy
in Brazil.
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
1
2 Via an independently certified mass balance system.
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Resource+ continued
Pioneering recycling model adopted by
the government in Brazil
Our pioneering Recicleiros Cidades program in Brazil
channels corporate funding into municipal waste collection,
helps businesses meet regulatory requirements, and ensures
decent working conditions for waste pickers.
This year, the Brazilian government adopted the Recicleiros
Cidades model as federal public policy. It incentivizes
investment in waste collection and recycling by enabling
companies to meet their legal obligations on reverse logistics
through programs that guarantee a certain volume of waste
material will be recycled within five years. The law mandates
social as well as environmental benefits through the productive
inclusion of waste pickers.
Recicleiros Cidades is already operational in 14 municipalities,
with seed investment from SIG and support from more than
60 businesses. More than 600 municipalities across the
country applied to join this year. Over the last six years, the
program has collected over 10,870 metric tons of waste,
reached 978,000 citizens, and created reliable jobs for
347 waste pickers together with training through the
Recicleiros Waste Pickers’ Academy.
Recicleiros Cidades is part of our holistic recycling approach
in Brazil, alongside the so+ma vantagens rewards-based
community collection program and the construction of
a new recycling plant.
Partnering with the German Development
Cooperation to boost recycling and
livelihoods in Egypt
We have launched a three-year public–private partnership with
GIZ (the German Development Cooperation) and Plastic Bank to
create an effective system for collecting and recycling used
beverage cartons in Egypt – and improve working conditions for
informal waste collectors, known as collection members.
Plastic Bank’s blockchain technology will be used to verify ethical
working conditions and enable full traceability of the volume of used
beverage cartons and other waste removed from the environment.
Together, we will roll the program out in Greater Cairo, where there is
currently no formal segregation of waste at household level.
Over the next three years, we will partner with GIZ and Plastic Bank,
aiming to collect and recycle 700 metric tons of used beverage
cartons and improve livelihoods for 1,030 collection members
(including 300 women and 400 young adults aged 18-26).
Collection members log each piece of waste they collect on an app
to earn incentives via digital wallets. The incentive paid aims to help
collection members to buy food products and pay school fees to
support their children. Additionally, collection members have access
to a full coverage medical insurance plan funded by Plastic Bank’s
partners. They also receive health and safety training and personal
protective equipment to help ensure their safety while working.
Our three-month pilot with Plastic Bank last year collected
110 metric tons of used beverage cartons and supported 82 people
in four communities, boosting their income by an average of 10%.
The partnership is supported through the German Federal Ministry
for Economic Cooperation and Development’s (BMZ) funding
program develoPPP and its “Decent Work for a Just Transition”
Special Initiative.
Read on for more on
Resource+
Or go to
Food+
The Recicleiros Cidades
process proposed a
revolution in municipal
solid waste management,
enabling a legal,
administrative, and
operational reorganization
of this important public
service. It is a watershed for
municipalities that are willing
to improve management.
Eliel Pacheco
Junior Secretary of the Environment,
Municipality of Pederneiras, São Paulo
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Our commitment
Our circular packaging journey
Renewable and recycled content
We strive to lead the way
towards a fully circular
packaging system. Our
ambitious targets aim to
increase renewable or
recycled content, offer more
recycle-ready1 solutions
through design for recycling,
and foster collection and
recycling of used packaging
at scale.
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 – all underpinned
by the use of renewable energy.
See Climate+
Our ambition
Lead the industry for renewable
content by continually increasing paper
content in our flagship aseptic cartons,2
and comply with regulatory
requirements on post-consumer
recycled plastic content3 in every
relevant SIG packaging.
Today
• All our cartons are made mostly of
By 2025
• We will develop a full barrier aseptic
renewable forest-based paperboard.
• We offer forest-based polymer
carton with at least 85% paper content
(excluding closure).
solutions3 for all our aseptic cartons.
• We will keep materials in circulation
by offering renewable and/or recycled
polymer content for all our packaging.
• We offer the world’s first full-barrier
aseptic carton packaging material
linked to 100% forest-based
renewable content4 with no
aluminum layer.
• We offer circular polymer solutions
linked to post-consumer recycled
plastics3 for all our aseptic cartons
and we are piloting circular
polymers for bag-in-box.
Design for recycling
Our ambition
Lead the industry in designing for
recycling to offer recycle-ready options
for every relevant SIG packaging –
in line with our sustainable packaging
guidelines.
Today
• All our cartons are already designed
to be fully recyclable.5
• Our SIG Terra portfolio already
includes recycle-ready1 bag-in-box
or spouted pouch solutions.
By 2025
• We will offer a recycle-ready1 bag-in-
box and spouted pouch solution in all
our relevant market segments.
By 2030
We will develop a full barrier aseptic
carton with at least 90% paper content
(including closure).
We will make all our flagship aseptic
carton formats2 available with no
aluminum layer.
Recycling at scale
Our ambition
Advocate and partner through industry
associations to achieve recycling at
scale in all priority countries where
SIG is active.
Today
• We support collection and recycling
through country specific roadmaps
in priority countries that account
for more than 90% of our global
packaging sales (by weight).
By 2025
• We will partner with industry and
stakeholders to implement dedicated
and country-specific roadmaps to
support increased collection and
recycling of beverage cartons,
bag-in-box, and spouted pouches
in priority countries that account for
more than 90% of our global
packaging sales (by weight).
By 2030
We will achieve a 90% collection and
70% recycling rate for our beverage
cartons in Europe (through our
commitment to the ACE 2030 roadmap).
1
In line with Design for Recycling criteria
developed by APR (Association of Plastic
Recyclers) and Recyclass.
2 Top five SIG aseptic carton formats by sales
4 Excluding negligible constituents, such as inks
volume.
3 Via an independently certified mass balance
system.
and pigments. Polymers linked to wood residues
from paper making via an independently certified
mass balance system.
5
In line with guidelines developed by ACE and
4evergreen, and the relevant EN643 standard.
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Sustainability continued
Sustainability continued
Resource+ continued
Resource+ continued
In Europe, we are fully committed to the 2030 roadmap of ten industry commitments (see below)
set out by Alliance for Beverage Cartons and the Environment (ACE), of which SIG is a member.
ACE 2030 roadmap: industry commitments in Europe
Through ACE, together with others in our industry, by 2030 we are committed in Europe to:
1
2
3
4
5
Produce
beverage
cartons
only from
renewable
materials
And/or
produce
beverage
cartons from
recycled
materials
Use more
fiber1
and less
plastic
Decarbonize
our value
chain in line
with 1.5°C
target
Deliver
the lowest
carbon
footprint
packaging
6
7
8
9
10
Design for
circularity
Achieve a
90%
collection
rate of
beverage
cartons for
recycling
Achieve at
least a 70%
recycling rate
verified by
third parties
Meet the
highest
sustainability
sourcing
standards for
all materials
Increase
carbon
seques-
tration,
enhance
biodiversity,
and increase
forest growth
Increasing renewable and
recycled content
Through our focus on Sustainable innovation
we are developing ways to increase use of
renewable or post-consumer recycled materials
across our packaging portfolio – particularly to
replace aluminum and virgin fossil-based
polymers.
,
Our standard aseptic cartons are already made
of around 75% renewable paperboard on average.
SIG Terra Alu-free,2 first launched in 2010,
increases the renewable paperboard content to
around 82% by removing the aluminum layer of
aseptic cartons for oxygen insensitive food
products such as white UHT milk.
SIG Terra Alu-free + Forest-based polymers3
increases use of renewable materials by linking
the polymers in our aseptic cartons to renewable
forest-based materials. Introduced in 2017, it is
the world’s first aseptic carton solution linked to
100% renewable materials.4 SIG Terra Alu-free +
Full barrier,5 which had its first commercial
launches in 2023, extends our aluminum-layer-
free offering for use with oxygen sensitive food
products, such as juice, by offering equivalent
barrier properties to our standard aseptic cartons.
We are now targeting increased paper content
in our full barrier aseptic cartons – to at least 85%
paper content (excluding closure) by 2025 and
at least 90% paper content (including closure)
by 2030. We also offer renewable paper straw
solutions to replace polymer straws for
on-the-go cartons.
In addition, we are looking for ways to reuse
valuable resources by linking our packaging
materials to recycled content. We already offer
SIG Terra Circular polymers linked to
post-consumer recycled plastics6 for aseptic
cartons and we are piloting circular polymers
for bag-in-box. These solutions can also support
customers in meeting forthcoming regulations
mandating the use of recycled content in plastic
packaging.
We use an innovative mass balance system,
independently verified through ISCC PLUS
certification,7 to link polymers in our packaging
materials to renewable or recycled materials.
This system ensures the equivalent amount of
renewable or recycled raw materials allocates
to the relevant packs are sourced and used in
the production of the packs. The certified
materials are physically mixed in with
conventional fossil-based feedstock to
produce polymers to the required grade, but
kept separately via verifiable bookkeeping 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.8
1 Fiber refers to wood-based fiber in the paper content of cartons.
2 Formerly known as combibloc ECOPLUS. Polymers are linked to wood residues from paper making via an independently certified mass balance system.
3 Formerly known as SIGNATURE 100.
4 Excluding negligible constituents, such as inks and pigments. Polymers linked to wood residues from paper making via an independently certified mass balance system.
5 Formerly known as SIGNATURE EVO.
6 Via an independently certified mass balance system.
7 Or in some cases REDcert2.
8 The Ellen MacArthur Foundation Mass Balance White Paper.
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Designing for recycling
Recyclability is a core consideration in the
development of our packaging solutions.
We follow industry guidelines on design for
recycling to help us design packs that are not
only technically recyclable, but are also widely
accepted in available recycling streams. These
include design for recycling guidelines we
helped to establish for cartons through ACE and
4evergreen, as well as guidelines from CEFLEX,
Recyclass, and the US Association of Plastic
Recyclers (APR) that apply to our bag-in-box
and spouted pouches. We have also introduced
internal sustainable packaging guidelines,
including detailed criteria on design for recycling,
for our polymer bag-in-box and spouted pouch
solutions.
All our cartons are already designed to be fully
recyclable1 and we are innovating to make more
of our bag-in-box and spouted pouch solutions
recycle-ready.
Simplifying the design of packaging by
reducing the number of different materials that
go into a pack can enable recycling more widely.
Our industry-leading aseptic carton solutions with
no aluminum layer offer the potential to simplify
the process needed to recycle them – with just
two materials to separate rather than three.
This can also enhance the quality of the recycled
polymers recovered. Increasing paper content in
our aseptic cartons, as we are targeting, will also
enable the packs to be recycled in regions where
only paper recycling streams are available.
The SIG Terra portfolio already includes
recycle-ready bag-in-box and spouted pouch
solutions, and we are innovating to expand the
recycle-ready range with a strong focus on
solutions that are made mostly from a single type
of polymer to facilitate recycling. The cardboard
boxes – not manufactured or sold by SIG – that
make up the majority of the materials in bag-in-
box solutions can already be recycled through
widely available paper recycling streams.
Other solutions that support recycling across our
packaging portfolio include tethered closures that
ensure caps stay with their packs after use.
Advocating circular packaging
Driving progress towards a circular economy is
not something we can do alone. We collaborate
with industry partners, customers, governments,
non-governmental organizations, and
communities to develop and implement solutions.
Through industry partnerships (see right),
we drive initiatives to create common industry
guidelines, develop and share best practices,
support enabling legislation, build recycling
capacity, improve collection systems, and raise
consumer awareness.
Advocating through industry associations creates
a stronger voice for favorable recycling policies
and regulations at global, regional, and national
level. Extended producer responsibility (EPR) is
one of the enabling regulatory frameworks we
advocate.
EPR legislation incentivizes uptake of recyclable
packaging and investment in collection, sorting,
and recycling infrastructure by holding
manufacturers responsible for their products
and packaging through their life-cycle. In cases
where EPR legislation alone does not achieve
high collection rates, we support the use of
deposit return schemes to encourage people
to return used items for recycling.
We also work with partners to develop effective
systems for collection and recycling in countries
where there is no enabling legislation.
Industry partnerships
We collaborate through industry
partnerships at global and regional levels:
We are also part of national producer
responsibility organizations (PROs),
industry associations, and other interest
groups that seek to promote recycling in
countries such as Australia, China, India,
Indonesia, Malaysia, New Zealand, South
Korea, Thailand, the USA, and Vietnam.
1
In line with guidelines developed by ACE and 4evergreen,
and the relevant EN643 standard.
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Increasing recycling capacity
We are supporting the development of
infrastructure to enable our packs to be recycled
at scale, with an initial focus on recycling of used
beverage cartons.
The high-quality fiber in the paperboard that
makes up the majority of our cartons can be
separated and recycled relatively easily for reuse
at paper mills. We are therefore focusing on
increasing capacity to recycle the remaining
polymer and aluminum – either together as a
robust PolyAl material for roof tiles or furniture,
or separately to enable wider applications for the
recycled materials. Infrastructure is already in
place for recycling PolyAl, including at facilities
we have invested in that are located in Australia,
Germany, and Brazil. Through EXTR:ACT, we keep
apprised of new recycling technologies and
facilities being developed independently and
through industry associations.
We aim to incentivize development of recycling
infrastructure by creating a market for recycled
materials – including innovating to use recycled
content for our packs (see previous page).
Fostering collection and awareness
Used packaging must be collected before it can
be recycled. We support the development of
effective collection systems and encourage
consumers to recycle packaging materials
instead of discarding them as litter or sending
them to landfill.
Our tailored Going Circular roadmaps are
designed to catalyze collection and recycling in
priority countries that together account for
around 90% of our global packaging sales (by
weight). Many of the programs we support have a
wider positive impact by increasing collection and
recycling of other types of packaging, not
just ours.
Local programs use innovative models for waste
collection that provide additional social benefits.
These include ethical labor conditions for waste
workers through our municipal recycling model in
Brazil, the use of blockchain technology in Egypt,
and rewards offered in exchange for waste
collected in underprivileged communities in Brazil
and Indonesia.
We also partner with customers to raise
awareness of sustainable packaging and the
importance of recycling through on-pack
labeling and communications campaigns.
Optimizing resource use in filling
Our filling machines for aseptic cartons have an
industry-leading waste rate that means less than
0.5% of our packs are wasted during the filling
process. With each new machine, we strive to
further optimize the amount of resources –
including water, energy, and hydrogen peroxide
for sterilization – that customers need to fill our
cartons at their factories (see Sustainable
innovation
).
Through our SIG EcoFill Consulting program, we
support aseptic carton customers in identifying
further ways to reduce resource use in the filling
lines at their factories. We also aim to improve
the efficiency of our filling machines for chilled
cartons, and plan to review opportunities to
reduce resource use in filling our bag-in-box
and spouted pouch solutions in the coming year.
We work with customers to ensure that our
filling machines, and their parts, are recycled
or disposed of responsibly at end of life.
Minimizing waste and water use in
pack production
We are committed to monitoring and managing
environmental impacts from our operations
– including minimizing waste and use of resources
such as water. Robust environmental
management systems, certified to ISO 14001
at all our production plants, 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.
Managing resources responsibly
in our supply chain
We strive to ensure responsible management of
natural resources in the supply chain by sourcing
our raw materials with certifications to rigorous
external standards, such as FSC™ for paperboard
and ASI for aluminum foil (see Our supply chain
).
Both these certifications include requirements
to conserve natural resources, including through
sustainably managed forestry operations
(see Forest+
), waste management, and water
stewardship. In addition, relevant sustainability
topics, including water management, are covered
through our working groups with paperboard
suppliers and we are engaging with aluminum
suppliers to increase content from post-industrial
waste in the foil we purchase.
We use relatively little water in our operations,
but we strive to use water resources responsibly
by considering water quantity, quality aspects,
and water stress risk. We monitor water use at our
production plants and aim to minimize
consumption where feasible. Sites in
water-stressed areas, identified through a
self-assessment using the WWF Water Risk Filter,
are required to have water management systems.
Our self-assessment of A-material suppliers
using the WWF Water Risk Filter found that none
have a substantive impact on water, but our
paperboard suppliers are dependent on access
to water for the paper-making process. We are
using the findings to further evaluate the nature
and conditions of the river basins where they
operate to better understand potential
impacts on water security.
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Sustainability continued
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Resource+ continued
Our targets
2025 target
Progress tracker
Launch a full barrier carton linked to 100% renewable materials1
On track
Further reduce the amount of non-paper2 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
Target replaced
Develop a full barrier aseptic carton with at least 85% paper content
(excluding closure) by 2025 – and at least 90% paper content
(including closure) by 2030
Offer a recycle-ready3 bag-in-box and spouted pouch solution in all our
relevant market segments
Partner with stakeholders to implement dedicated and country-specific
roadmaps to support increased collection and recycling of beverage cartons,
bag-in-box, and spouted pouches in priority countries that account for more
than 90% of our global packaging sales (by weight)
Scale up and expand our community recycling model
25% reduction in grams of waste per m2 of packaging material used
to produce our aseptic cartons4 (from 2016)
Zero landfill – all waste to be recycled or used as renewable biofuel
Maintain certification to ISO 14001:2015 at all production plants
New target
New target
On track
On track
More work to do
On track
On track
1 Excluding negligible constituents, such as inks and pigments.
2 Target wording amended from “fiber” to “paper” to align with wording of new quantified targets.
3
4 Wording amended to clarify that this target is for aseptic carton production only.
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
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Increasing renewable and recycled
content
• We continued to develop and launch packaging
solutions that support our goals to replace
aluminum and virgin fossil-based polymers.
Highlights in 2023 include the first commercial
launches of our SIG Terra Alu-free + Full barrier
aseptic carton solution and a circular solution
we are piloting for bag-in-box that includes
bags made with post-consumer recycled
plastics1 (see below left).
See Sustainable innovation
Sustainability continued
Resource+ continued
Performance in 2023
We set bold ambitions to
catalyze progress on increasing
renewable and recycled content,
designing for recycling, and
fostering recycling at scale.
See Our circular packaging journey
Innovative circular bag-in-box
solution
We are piloting an innovative circular solution
for bag-in-box, using bags made with
post-consumer recycled plastics1 that are
recycled again after use to make into new
bag-in-box or other products.
Sustainable innovation
• Advocacy at country level this year included:
•
•
In China, we joined the Alliance of
Technological Innovation in Compulsory
Resources Recycling Industry (ACTRR)
Lightweight Packaging Recycling
Association to gain a better understanding
of the recycled plastics standards system
in preparation for standardized recycling.
We are also participating in industry
standard-setting to promote a scientific
approach to recycling and calculation of
related greenhouse gas emissions
reductions.
) was adopted by
In Brazil, the municipal recycling model
established through our Recicleiros Cidades
program (see case study
the federal government as public policy this
year, and a local SIG representative attended
the ceremony when the President signed the
policy into law. SIG was also recognized by
the Brazilian SESI (Industrial Social Service)
Awards in 2023 for the contribution of our
so+ma vantagens program to the United
Nations Sustainable Development Goals.
• Through the Swiss association for beverage
cartons (GKR), we joined forces with more
than 70 organizations along the value chain
to voluntarily establish a harmonized
country-wide collection system for
plastic packaging and beverage cartons
in Switzerland.
Designing for recycling
• The sustainable packaging guidelines we have
introduced for our new bag-in-box and spouted
pouch businesses include detailed criteria on
design for recycling, and we have increased
uptake of a recycle-ready spouted pouch
solution by a major customer. In 2023, 100%
of our carton packaging was designed for
recycling,2 and we offered recycle-ready3
or recycle-ready alternative bag-in-box
and spouted pouch solutions for 69% of
our bag-in-box and spouted pouch packaging.
See Sustainable innovation
Advocating circular packaging
• We contributed to further development of
industry guidelines for recycling this year, as
well as advocating and preparing for enabling
regulations on recycling.
• We worked with industry partners to update the
ACE industry roadmap (to be published in 2024)
and review the ACE Design for Recyclability
Guidelines. We also contributed to the update of
4evergreen’s Circularity by Design guidance for
fiber-based packaging (published in 2023) that
now includes specific recommendations for the
design of beverage cartons to be compatible
with recycling processes that corresponds with
the ACE guidelines. This follows on from the
guidance on improved collection and sorting
for recycling published last year.
• We have joined the Alliance to End Plastic
Waste and, through our bag-in-box and
spouted pouch business, we have become
a member of CEFLEX (a circular economy
for flexible packaging), a collaboration to drive
progress towards a circular economy for
flexible packaging.
1 Linked to post-consumer recycled plastics via an independently certified mass balance system.
2 Our evaluation of recyclability is based on the relevant EN643 standard.
3 Our evaluation of recycle-readiness is in line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers)
and Recyclass.
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Joining the Alliance to End
Plastic Waste
We have joined the Alliance to End Plastic
Waste – a community of pioneering
companies dedicated to building a circular
economy for plastic – to support our efforts
to improve collection and recycling of our
bag-in-box and spouted pouch
solutions globally.
The Alliance to End Plastic Waste focuses on
enhancing waste management capacity and
capability by improving collection, sorting,
processing, and recycling systems,
especially in underserved regions. We are
part of working groups that aim to drive
innovation in recycling technologies in
developed markets, and improve collection
and recycling in developing markets.
4evergreen Circularity
Success Stories
The 4evergreen Alliance recognized SIG in its
Circularity Success Stories in 2023. SIG Terra
Alu-free + Full barrier, our full barrier
packaging material for aseptic carton packs
with no aluminum layer, earned the Design
for Circularity award. In addition, the Palurec
PolyAl recycling plant we invest in with
industry partners won the Circularity Best
Practices award for its work recovering
polymers and aluminum from PolyAl for use
in a range of products.
Increasing recycling capacity
• We continued to invest in and support
development of new recycling facilities for used
beverage cartons this year.
•
•
•
In Australia, the first saveBOARD recycling
facility – which makes high-performance
construction materials from used beverage
cartons – was officially opened in 2023 with
support from SIG and the Global Recycling
Alliance for Beverage Cartons and the
Environment (GRACE), and we have helped
to secure government funding for two further
saveBOARD plants.
In Brazil, we are constructing a new recycling
plant for beverage cartons that will use
innovative technology to separate the
polyethylene from the aluminum in PolyAl to
create a wider market and demand for these
recycled materials, increasing their value by
more than 50%.
In Europe, we engage through EXTR:ACT to
monitor the development of new recycling
technologies and facilities. This year, we
welcomed the construction of Saperatec, a
second PolyAl recycling facility in Germany in
addition to the Palurec facility we invest in with
industry partners. Existing facilities can already
process around 50,000 metric tons of PolyAl
annually, enabling polymer and aluminum to be
recovered from around 30% of the total PolyAl
produced from recycled beverage cartons in
Europe.
• We have begun initial analysis to inform our
future strategy on increasing recycling capacity
for our bag-in-box and spouted pouch solutions.
Rewarding recycling in
Indonesia
The SIG Foundation has launched a new
Recycle for Good program in Indonesia
– where 3 million metric tons of plastic are
dumped in the sea every year – to educate
people on the value of recyclable materials
and incentivize household recycling.
People are encouraged to drop off
recyclable waste – including beverage
cartons and flexible polymer pouches –
at our collection point in Jakarta. In return,
they can choose packs of food from SIG
customers, earn vouchers for food and other
rewards, or donate their reward to BGBJ
Indonesia (a non-governmental organization
that supports waste pickers at Southeast
Asia’s largest landfill).
Since the program began in March 2023,
more than 770 people have earned rewards
by collecting a total of 11.7 metric tons of
waste for recycling.
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Fostering collection and awareness
As well as supporting recycling infrastructure, we continued to
implement local partnerships to raise awareness and improve
collection rates as part of our Going Circular roadmaps in priority
countries – including those identified in 2023 for our bag-in-box
and spouted pouch businesses.
Mexico
We established a new partnership to collect
used packaging from households and
hospitality premises, which includes a code
of conduct to ensure ethical working
conditions and fair compensation for waste
workers.
).
Egypt
We launched a three-year
partnership with the
German Development
Cooperation and Plastic
Bank (see case study
Over 3,000 used beverage
cartons were also collected
through our eight-month
trial using the Tagaddod
app to schedule collections
directly from homes and
businesses in Cairo, with
juice products offered in
partnership with Carrefour
as an incentive to use
the app.
Thailand
We partnered with our
customer DPO and
100 schools to educate
children and communities
about recycling and
sustainable packaging, and
collected 2.69 metric tons
of used beverage cartons.
Brazil
1,864 families participating in the so+ma
vantagens program brought 165 metric tons
of waste to our five collection points this
year in exchange for rewards such as food,
training, and school materials – and we
enrolled further municipalities in our
Recicleiros Cidades program.
See case study
China
We supported the Alliance
of Technological
Innovation in Compulsory
Resources Recycling
Industry (ATCRR)
campaign to raise
awareness of recycling by
providing furniture, bins,
and sculptures made of
recycled milk cartons for
the 19th Asian Games.
South Korea
We launched a project to
collect and recycle used
beverage cartons from
childcare facilities, while
educating children about
waste segregation and
sustainable packaging.
Indonesia
Our Foundation launched a
new Recycle for Good
program (see case study
),
building on our established
rewards-based community
recycling model in Brazil.
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Optimizing resource use in filling
• We continued to support aseptic carton
customers in reducing resource use in their
factories through our SIG EcoFill Consulting
program and further sales of upgrade kits for
our filling machines that reduce water use.
We began the first commercial filling with SIG
NEO, our next-generation filling machine for
family-size aseptic cartons, which is designed
to reduce overall use of utilities (hydrogen
peroxide, compressed air, and water) by 30%
on average.1 See Sustainable innovation
Minimizing waste and water use in
production
• We achieved global ISO 14001 certification
across SIG Group – including our newly acquired
sites for the first time this year – for our
environmental management systems, which
help to drive continuous improvements in waste
management and water management.
• We generated a total of 80,445 metric tons of
waste at our production sites in 2023, of which
91% was reused or recycled, 2% was recovered
for energy, and only around 0.8% went to
landfill. We have achieved zero waste to landfill
at 16 of our 27 production plants. This year’s
production waste included 1,735 metric tons of
hazardous waste that was disposed of by
certified waste management contractors.
• Our waste rate for production of aseptic
cartons decreased by 3% to 31 grams per m2 of
packaging material in 2023, representing a 10%
reduction since 2016.
• We continue to seek ways to minimize
production waste through local initiatives. For
example, in Neuhausen (Switzerland), we have
cut production waste by 1% by installing a new
system to avoid damage to aseptic carton
closures during transport around our production
plant. In Rayong (Thailand), following initial trials
in 2022, we began using pallets made from
PolyAl that is recycled from our production
waste and used beverage cartons. The
hardwearing pallets can also be returned by
customers for reuse.
• We conducted a self-assessment using the
WWF Water Risk Filter to identify which of our
production plants are in water-stressed areas.
The plants in water-stressed areas – Merced
(USA), Querétaro (Mexico), Riyadh (Saudi
Arabia), and Suzhou (China) – together account
for 14% of our production plants. We began
work to conduct site water risk assessments
and develop action plans for water
management at each of these plants, in
addition to their existing water management
systems. We used a total of 486,462 m3 of
water in 2023, including 124,473 m3 in
water-stressed areas.2 We discharged
308,312 m3 of wastewater in 2023 (around 63%
of the total used).
Sourcing sustainable materials
• We continued to purchase 100% of the
paperboard for our aseptic cartons with
FSC™-certification5 – and for our chilled cartons
from January 2024. We procured 100% of the
aluminum foil for our aseptic cartons with ASI
Certification and engaged with suppliers to
increase use of aluminum content made with
post-industrial waste. We also sourced more
polymers linked to renewable materials6 to meet
growing demand for our SIG Terra Forest-based
polymers solution for aseptic cartons.
See Our supply Chain
Production waste rate for
aseptic cartons (grams of waste
per m2 of sleeves produced)
Production waste by disposal
method in 2023
2023
2022
2021
2020
2016
31
32
34
32
35
Waste rate for production of aseptic cartons
(grams of waste per m² of packaging material)
Target baseline
Production waste by type
(thousand metric tons)
Recycled
Reused
Recovered
from energy
88.6%
2.0%2.0%
2.1%
Landfill
Other disposal
options3
0.8%
6.5%
Raw and
laminated
carton
Polyethylene
Hazardous
waste
Aluminum (<1%)
Total
20207 20217 20227 2023
Production waste by disposal
method⁴ (metric tons) in 2023
48.4
1.6
58.3
3.5
57.3
3.3
62.5
9.3
2.9
–
53.1
3.7
–
65.5
3.8
0.3
64.7
6.5
0.3
78.6
Non-hazar dous
waste
Hazardous
waste
Total
waste
Recycled
Reused
Recovered
from energy
Landfill
Other disposal
options3
Total
71,077
1,158
740
618
193
437
973
–
71,270
1,595
1,713
618
5,117
78,710
132
5,249
1,735 80,445
1 Anticipated savings compared with our previous generation filling machines, to be confirmed through first commercial filling.
2 Based on a self-assessment using the WWF Water Risk Filter.
3 Such as incineration without energy recovery.
4 Production waste and waste rate are for sleeves production only and exclude our closures plant in Switzerland.
5 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and ensures that an equivalent
amount of FSC™ certified wood is procured at the beginning of the value chain.
6 Via an independently certified mass balance system.
7 Waste data for previous years is for our aseptic carton business only.
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Sustainability continued
Food+
Food+
Our packs help bring food
and drink to millions of
people every day in a safe,
sustainable, and affordable
way.
15.5bn
liters of nutritious1 food and drink delivered
in SIG packaging in 2023
SIG packaging systems are extremely well
placed to contribute to a net positive food
system – while helping our customers and our
business grow.
Our aseptic packs preserve nutritional content
without chilling, supporting wider access to safe
nutrition where it is most needed. They are well
suited to deliver nutritious food and drinks –
such as milk and plant-based dairy alternatives,
juices, fruit and vegetable purees, soups, and
now the world’s first long-life probiotic drink.
Through our focus on Food+, we help customers
develop and deliver new nutritious food products
to more people around the world. Maintaining
product safety is a priority. We also strive to
minimize food loss and waste to reduce climate
impacts, resource use, and associated
biodiversity loss.
See Towards nature positive
Progress in 2023
Customers used our packs to deliver 15.5 billion
liters of nutritious1 food and drink in 2023, with
the inclusion of our new bag-in-box and spouted
pouch solutions contributing to a 28% increase
this year.
We partnered with AnaBio Technologies to create
a new product category – the world’s first
long-life probiotic drink – for our aseptic cartons
and spouted pouches. We continued our SIG
Incubator program for start-ups launching
nutritious products, and the SIG Foundation
engaged with NGO partners to scale up its
flagship Cartons for Good project in Bangladesh
and Egypt. We maintained robust food safety
standards at all production sites globally, and
continued to minimize food loss from filling.
Together with the expert team
at SIG, we’re not only able to
offer consumers probiotic
products with unique health
benefits, but also a longer
product shelf life for greater
convenience. It’s a real step-
change innovation in the field
of probiotic beverage products.
Dr Sinéad Bleiel
Founder, AnaBio Technologies
1 Different types of products are categorized according to their nutritional profile based on the independent Health Star Rating System.
Joint innovation leads
to world’s first long-life
probiotic drink
We partnered with AnaBio Technologies to
create the world’s first long-life probiotic drink,
a new product category for aseptic packaging
and a completely new consumer offering.
Probiotics can offer many health benefits such
as improved gut health and strengthened
immunity. But until now it has not been possible
to offer probiotics in aseptic packaging
because they could not survive the high
temperatures commonly used in processing.
Probiotics can also be unstable during storage,
typically restricting their use to beverages with
a short shelf life that need to be refrigerated
during distribution and storage.
The combination of AnaBio’s patented
“encapsulation” technology and our gentle
aseptic filling technology overcomes these
restrictions. This enables drinks containing
live probiotics to be packed in aseptic
carton, bag-in-box, and spouted pouch
solutions and kept at room temperature
for extended periods without refrigeration.
Launched globally this year, this game-
changing development fulfills the need for
healthy, tasty, and nutritious probiotic
beverages in sustainable and convenient
packaging that can be stored and distributed
at ambient temperatures without the need
for energy-intensive refrigeration (and
related greenhouse gas emissions). We have
already completed successful filling line
trials with two customers in India.
Read on for more on
Food+
Or go to
Sustainable innovation
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Sustainability continued
Food+ continued
Our commitment
We aim to partner with more customers that
provide nutritious food and drink, and help them
increase access to their products in more
locations and outlets, particularly in the markets
where this can make the biggest difference.
We also support the development of new
technologies that use our aseptic packaging
systems to extend access to valuable nutrients
without the need for refrigeration during delivery
and storage.
The SIG Incubator1 program supports start-ups
launching nutritious new food and beverage
products by providing access to advice,
expertise, and consumer-focused insights –
as well as enabling them to use our filling
machines, either at our own Tech Centers
or at existing SIG customers’ plants.
0.5%
Our highly efficient filling machines
cut waste of packs (and associated
food content) during filling to an
industry-leading 0.5% or less for
aseptic cartons
Our aseptic packs reduce food waste by
design, enabling food to be kept safely for
up to 12 months without refrigeration. Through
our Cartons for Good project, led by the SIG
Foundation, we are going further with an
innovative model to pack and store surplus food
crops that would otherwise be lost – and turn
them into nutritious meals for people in need.
We are also committed to minimizing food loss
during filling. Our highly efficient filling machines
cut waste of packs (and associated food content)
during filling to an industry-leading 0.5% or less
for aseptic cartons, and as little as 0.7% for
bag-in-box and spouted pouches.
We also aim to minimize food waste from
residues left in the pack after consumer use
by offering very high evacuation rates for our
bag-in-box and spouted pouch solutions and
innovating to further improve pourability of
our cartons.
We maintain certifications to recognized
standards for food safety management systems
at all relevant SIG production plants.
Our targets
2025 target
Progress tracker
Use SIG’s position within a more sustainable food supply system to
create demonstrable positive impacts on nutrition and hydration
On track
Increase the total volume of nutritious2 food and beverage products
brought to consumers in SIG packs by 50% by 2030 (from 2020)
On track
Support two start-ups per year through our SIG Incubator program
to share unused filling capacity to deliver nutritious food safely and
efficiently3
Maintain existing ISO 9001:2015 certifications at production plants
(including all aseptic carton plants)4
Maintain top level GFSI5-recognized certification at all packaging
production plants6
On track
On track
On track
Create self-sustaining, scalable models for the SIG Foundation’s
Cartons for Good project7 (also a target for Communities)
More work to do
1 Formerly SIGCUBATOR.
2 Different types of products are categorized according to their nutritional profile based on the independent Health Star Rating System.
3 Target amended to include any unused filling capacity and reflect the new name of the SIG Incubator program (formerly
SIGCUBATOR).
4 Target amended following integration of our newly acquired, bag-in-box, and spouted pouch businesses.
5 Global Food Safety Initiative (GFSI)-recognized certifications include the Brand Reputation Compliance Global Standards (BRCGS)
packaging standard, Safe Quality Food (SQF), Food Safety System Certification (FSSC 22000), and International Featured Standard
(IFS).
6 Target expanded to include other GFSI-recognized standards (not just BRCGS), following integration of our newly acquired bag-in-box,
spouted pouch, and chilled carton businesses.
7 Target wording shortened by removing the full name of the SIG Way Beyond Good Foundation.
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Sustainability continued
Food+ continued
Performance in 2023
Delivering nutrition
• The integration of bag-in-box and spouted
pouches into our portfolio (through an
acquisition completed in 2022) has significantly
expanded 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.
• Our packaging solutions helped deliver
28.3 billion liters of food and beverages to
consumers globally in 2023. This included
15.5 billion liters of nutritious products, such as
milk and fruit juice, that contribute to a
balanced diet (as defined by the independent
Health Star Rating System), an increase of 39%
since 2020. The amount of nutritious food
packed in our cartons alone increased by a
further 1.5% to 12.3 billion liters, up 10%
from 2020.
• Customers used our packs to launch a range of
nutritious food and beverages around the world,
including:
• Plant-based milk and protein products
from NotCo, Latin America’s fastest-growing
plant-based food technology company,
in aseptic cartons.
• Oat-based beverages in aseptic cartons
from leading German dairy cooperative
Hochwald, as it entered the growing
plant-based market for the first time.
• Locally produced white cheese from
Baladna, Qatar’s leading dairy and beverage
producer, in aseptic cartons.
• Pulses such as beans, peas, and lentils from
major Italian food producer La Doria, packed
in long-life SIG SafeBloc cartons as a more
sustainable alternative to retort cans.
• Broths from ARIAKÉ in aseptic cartons that
retain the quality, taste, aroma, and natural
nutrients, vitamins, flavors, and colors – to
be sold initially in France, and soon Belgium.
Innovating to drive progress
• We partnered with AnaBio Technologies to
develop a groundbreaking solution, the world’s
first long-life probiotic drink, to enable wider
access to probiotics without the need for
refrigeration (see case study
). Trials at our
Tech Center in Germany this year supported
validation of the concept’s technology and
market viability.
• Our next-generation filling system for aseptic
spouted pouches will lower the total cost of
ownership of filling operations to support wider
access to affordable healthy foods. In 2024,
we will enable customers, and start-ups
participating in SIG’s Incubator program, to test
their products in spouted pouches using a filling
system specifically for research and
development at our Tech Center in Dubai.
• We have joined MISTA, a new food innovation
platform, to provide our expertise in sustainable
packaging to co-create next generation food
solutions with other member companies (see
right).
• We continued to work with NGO partners, such
as Forum for the Future, to explore how to
increase our positive impact within the global
food supply system, focusing on opportunities
to foster a regenerative food supply.
Joining food innovation
platform MISTA
SIG is the only packaging provider to join
US-based food innovation platform MISTA,
which brings together leaders from the
global food and beverage industry to
explore innovative ways to accelerate the
transformation of the global food system
into a more regenerative one.
Joining the platform will help us drive progress
on our Food+ ambitions and help tackle global
challenges by co-creating solutions not only
for packaging, but also for food products.
We are excited to have SIG as part of the MISTA
network. SIG’s expertise and capabilities in aseptic
filling and sustainable packaging solutions and their
global test filling and co-creation capabilities will
enable members to bring new product concepts
and ideas to life and co-create next-generation
solutions. By joining forces with ingredient experts,
processing partners, and SIG as a filling and
packaging solution provider, the whole value
chain is covered.
Scott May
Founder & Head of MISTA
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Sustainability continued
Food+ continued
Supporting start-ups
• The SIG Incubator program provided advice,
consumer insight and filling machine capacity
to the start-up Earth and Iron, enabling it to test
processing requirements and launch its
plant-based and highly nutritious drink in SIG
cartons in the UK. The program also contributed
to our partnership with AnaBio Technologies
(see Joint innovation leads to world’s first long-life
probiotic drink
).
• To date, we have supported six start-ups
through the SIG Incubator program and alumni
have continued to prosper this year. For
example, GROUNDED gained a national listing
with a UK retailer for its plant-based protein
shake, and Tiptoh’s pea protein beverage is now
sold online and stocked in three national
supermarkets in Belgium.
In 2024, we will extend the SIG Incubator program
to include access to our bag-in-box and spouted
pouch packs, filling capacity, and expertise.
Turning food loss into safe nutrition
for those in need
• Cartons for Good, the SIG Foundation’s flagship
project, continued in Bangladesh using our
specially designed mobile filling unit to turn
4.5 metric tons of harvest food loss that
farmers could not otherwise sell into more than
23,000 nutritious meals preserved in SIG
cartons. Our project partner BRAC, a local NGO,
distributed filled Cartons for Good packs to
schools to offer regular hot meals for 140
children in the urban slums of Dhaka.
• The SIG Foundation has developed a technical
concept and partnership model to scale up the
Cartons for Good project, and engaged with an
NGO to explore bringing this innovative model
to Egypt (see right).
•
In 2023, Cartons for Good won the SAVE FOOD
Initiative's inaugural SAVE FOOD Project
competition, which promotes solutions that
contribute to reducing global food waste
and loss.
Scaling up the SIG
Foundation’s award-winning
Cartons for Good project
The SIG Foundation’s innovative Cartons
for Good project uses SIG’s know-how,
filling technology and packs to preserve
surplus food that would otherwise be lost
and turning it into meals for people in need.
We have piloted the project over the last
four years using a specially designed mobile
filling unit in Bangladesh.
Building on learnings from the pilot, we have
developed a new model to scale up Cartons
for Good to further reduce food loss and get
nutrition to more people in need. The model
includes plans for an on-site laboratory that
can increase food production from 200 to
1,500 packs per day.
We will continue to support the project as the
provider of the concept, packs, filling
technology, and service, while engaging
outside partners to finance and implement
expansion. The SIG Foundation signed a
memorandum of understanding this year
with the Natural Resources and Climate
Protection Foundation to pave the way for
the launch of the project in Egypt.
In 2023, Cartons for
Good was
recognized with an
award from the SAVE
FOOD Initiative that
strives to curb global
food waste and loss.
The SIG Foundation
will invest the prize
money from this
award in a
comprehensive local
study to understand
how to maximize the
impact of Cartons
for Good in Egypt.
Cartons for Good won the SAVE
FOOD Initiative's Inaugural SAVE
FOOD Project competition in
2023, which promotes solutions
that contribute to reducing
global food waste and loss.
Maintaining food quality and safety
• We assessed the health and safety impacts of
our products and services across our portfolio.
There were no incidents of non-compliance with
regulations or voluntary codes concerning the
health and safety impacts of our products and
services in 2023.
• We maintained certification to the ISO
9001:2015 quality management standard across
our aseptic carton business, and at nine of our
bag-in-box, spouted pouch, and chilled carton
production plants.
• We achieved GFSI-recognized food safety
standards, such as BRCGS, at the highest level
at 26 of our 27 relevant production plants –
including eight plants that passed an
unannounced audit to gain AA+ BRCGS
certification. The remaining chilled carton plant
in Taiwan, acquired in 2022, maintained
certification to ISO 22000:2018 and is working
towards certification to a GFSI-recognized
standard.
Minimizing food loss from filling
• Our filling machines for aseptic cartons
continue to lead the industry with a waste
rate of 0.5% or less and SIG NEO, our
next-generation filling machine that is
designed to cut waste rates even further,
commenced its first commercial filling in 2023.
• At our Tech Centers in Germany and China,
we have started using a nutrient solution instead
of milk to test the functionality of our aseptic
carton filling machines, saving between
100,000 and 200,000 liters of milk per year.
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Sustainability continued
Sustainable innovation
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.
SIG Terra Alu-free + Full barrier offers
-25%
lower carbon footprint than our standard
aseptic cartons5
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 assessments show our
carton, bag-in-box, and spouted pouch solutions
offer significant reductions in environmental
impacts compared with other types of packaging,
such as glass, plastic tubs and bottles, or cans.1
Our packs’ strong environmental credentials are
an important differentiator as market demand
for sustainable packaging solutions continues
to grow. Choosing our solutions helps customers
respond to rising consumer expectations, comply
with increasingly stringent regulations, and
achieve their sustainability ambitions.
We strive to make our packs even more
sustainable through innovation. Across our
portfolio, we are innovating to design more
recycle-ready2 packs that optimize material use,
and to replace virgin fossil-based polymers with
renewable or recycled alternatives. We are also
creating new solutions to further reduce the
resources needed to fill our packs in customers’
factories.
We have already achieved a host of industry firsts
(see our sustainable innovation journey
Terra3 portfolio showcases our most sustainable
innovations – including aseptic cartons with no
aluminum layer, polymers linked to forest-based
and recycled materials,4 and recycle-ready
bag-in-box and spouted pouch solutions.
). Our SIG
Our focus on sustainable innovation drives
progress towards our net positive ambitions by
cutting the carbon footprint of our packaging
solutions (see Climate+
circular economy (see Resource+
renewable materials from sustainably managed
forests (see Forest+
deliver more nutritious food with less waste
(see Food+
), and helping customers
), contributing to a
), using more
).
Progress in 2023
Uptake of our SIG Terra portfolio grew by a
further 12% in 2023 for aseptic cartons, our
innovative SIG Terra Alu-free + Full barrier
solution was launched commercially by the
two largest dairy companies in China, and we
added recycle-ready2 bag-in-box and spouted
pouch solutions to our SIG Terra portfolio.
We have set bold new ambitions to enhance
circularity by design – by further increasing the
paper content of our cartons and offering a
recycle-ready bag-in-box and spouted pouch
solution in all our relevant market segments.
We have developed detailed new internal
guidelines to support progress and we are
already piloting a circular bag-in-box solution.
Read on for more on
Sustainable innovation
Or go to
Responsible culture
1 For a wide range of food and beverages, based on independent critically reviewed life-cycle assessments for beverage cartons
conducted in line with ISO 14040 and ISO 14044 standards, and on preliminary results of our life-cycle analysis of bag-in-box and
spouted pouch solutions (an independent, critically reviewed life-cycle assessment for these solutions is in progress).
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
2
3 Formerly SIGNATURE.
4 Via an independently certified mass balance system.
5 Based on independent ISO-compliant life-cycle assessment. Data has been critically reviewed and the full report will be published
in 2024.
First product launch with SIG
Terra Alu-free + Full barrier
SIG Terra Alu-free + Full barrier for aseptic
cartons – which offers equivalent barrier
properties to our standard aseptic cartons,
but with no aluminum foil layer – made its
commercial debut in 2023 with China’s
two largest dairy companies adopting
this innovative packaging solution.
Yili Group, China’s largest dairy producer,
was the first customer to launch SIG Terra
Alu-free + Full barrier – for its flagship Satine
brand. The launch was announced at its Zero
Carbon Summit, where SIG was named as
Yili Group’s Global Supply Chain Low-carbon
Pioneer. Mengniu, China’s second largest
dairy company and sponsor of the 2024
Paris Olympic Games, has also taken up SIG
Terra Alu-free + Full barrier for its Zhenguoli
(ZGL) yogurt drink.
A critically reviewed life-cycle analysis shows
that SIG Terra Alu-free + Full barrier cuts the
carbon footprint of our cartons by 25%,5
compared with our standard structure for
SIG MiniBloc 200 ml packs in China.
Removing the aluminum layer also offers the
potential to simplify the recycling process for
beverage cartons, with just two materials to
separate (paperboard and polymers) instead
of three.
Customers can use existing SIG filling
machines, with a modification kit, for both
our standard structure and the new SIG Terra
Alu-free + Full barrier material with no
aluminum layer.
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Sustainability continued
Sustainable innovation continued
Our
sustainable
innovation
journey so far
Our starting point
Standard SIG aseptic carton and filling machine
• Aseptic cartons made of, on average, 75%
FSC™-certified renewable paperboard,1 21%
polymers, and an ultra-thin layer of aluminum foil.
• 28–70% lower carbon footprint than alternative
packaging, such as plastic and glass bottles,
and aluminum cans.2
•
Industry-leading waste rate (<0.5%) through
highly efficient filling process.
1 Our cartons use paper-based liquid packaging board, referred to throughout as
“paperboard”. SIG uses FSC™ Mix material that allows the mixing of FSC™ certified
wood with FSC™ controlled wood and ensures that an equivalent amount of FSC™
certified wood is procured at the beginning of the value chain.
2 Based on independent ISO-compliant life-cycle assessments.
3 First launched as combibloc ECOPLUS.
4 First launched as combidome.
5 First launched as SIGNATURE 100.
6 Excluding negligible constituents, such as inks and pigments. Polymers linked to wood
residues from paper making via an independently certified mass balance system.
7 First launched as SIGNATURE FULL BARRIER.
2010
2017
2018
2013
SIG Dome4
• Looks and pours like a bottle.
• Environmental benefits of
a carton.
2016
RS structure
• Optimizes use of materials while
improving the robustness of our
aseptic cartons during processing
and distribution.
SIG Terra Alu-free3
• World’s first packaging
material for aseptic cartons
with no aluminum layer.
• 82% renewable paperboard.
• Up to 23% less carbon than
standard SIG packaging
material for aseptic cartons.2
• For use with dairy products.
SIG Terra Alu-free +
Forest-based
polymers5
• World’s first aseptic carton
linked to 100% renewable
material.6
• No aluminum layer.
• Up to 63% less carbon than
standard SIG packaging material
for aseptic cartons.2
• For use with dairy products.
SIG Terra Forest-based
polymers6
• Polymers linked to 100% renewable
material.7
• Ultra-thin aluminum foil layer to protect
oxygen-sensitive products, such as
orange juice.
• Up to 41% less carbon than standard
SIG packaging material for aseptic
cartons.2
2018
Heat&Go
• Our first aseptic carton that can
be heated in the microwave.
• Enhanced barrier film and
pigmented laminated layer
replace aluminum foil.
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Sustainability continued
Sustainable innovation continued
2019
Paper straw solution
• World’s first paper straw for
use with aseptic carton packs.
• Straight, U-shaped, and
telescopic options.
• FSC™-certified paper.
2022
Bag-in-box and spouted
pouch solutions join our
portfolio
• High product-to-packaging ratio.
• Less carbon than alternatives, such as
plastic and glass bottles, tubs, and jars.
• Recycle-ready mono-material spouted
pouch.
• First APR-recognized recycle-ready
bag-in-box.5
• World’s first bag-in-box linked to
recycled content.2
2019
2022
ASI-labeled packs
• World’s first aseptic
carton packaging materials
with ASI-Certified aluminum foil.
• The only cartons that can
carry the ASI Responsible
Aluminium Sourcing logo.
SIG Terra Alu-free +
Full barrier4
• World’s first full barrier solution for
aseptic cartons with no aluminum layer.
• For use with both liquid dairy and
oxygen-sensitive products, such as fruit
juices, nectars, flavored milk, or
plant-based beverages.
2020
2021
SIG Terra Circular
polymers1
• World’s first aseptic carton
solution offered with post- consumer
recycled content.
• Polymers linked to 100%
recycled plastics.2
SIG NEO
• Next-generation filling machine for
family-size aseptic carton packs.
• 25% less carbon by design for the filling
and packaging per pack.3
• 30% less consumables by design
(hydrogen peroxide, compressed air,
and water).3
2023
SIG Dome Mini
• Portion size.
• Looks and pours like a bottle.
• Environmental benefits of a carton.
2023
SIG Terra Alu-free +
Full barrier commercially
available
• World’s first full barrier solution for
aseptic cartons with no aluminum
layer launched commercially in China.
• Up to 25% less carbon than standard SIG
packaging material for aseptic cartons.6
Icon indicates innovations where SIG led the industry
according to SIG's global commercial intelligence.
1 First launched as SIGNATURE CIRCULAR.
2 Via an independently certified mass balance system.
3 Anticipated savings compared with our previous
generation filling machines, to be confirmed through first
commercial filling.
4 First launched as SIGNATURE EVO.
5 Association of Plastic Recyclers (APR).
6 Based on independent ISO-compliant life-cycle
assessment. Data has been critically reviewed and the full
report will be published in 2024.
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Sustainability continued
Sustainable innovation continued
Our commitment
We are committed to investing
in research and development
to better meet the needs of
customers and consumers,
including further reducing the
environmental impact of our
packaging solutions.
Sustainability criteria are core value drivers in all
our product development, alongside other critical
factors such as safety and affordability. Our
Innovation Board regularly reviews our entire
innovation pipeline in the light of evolving
sustainability considerations, such as
forthcoming regulations and customer needs.
We have established clear internal guidelines on
sustainable packaging design for our cartons, and
separately for our bag-in-box and spouted pouch
solutions, with accompanying training for relevant
teams. These guidelines include detailed
market-level criteria on design for recycling.
Our marketing and sales teams are trained and
incentivized to increase customer uptake of our
most sustainable solutions, which in turn helps
us amplify our net positive impact across our
sustainability action areas.
Taking a life-cycle approach
We evaluate the environmental impacts of our
packaging innovations through robust life-cycle
assessments (LCAs) carried out by credible
independent institutes, using the ISO 14040
and 14044 international standards and critically
reviewed by an independent expert panel.
LCAs consistently confirm that our packs offer
significant reductions in environmental impacts
compared with alternative types of packaging
and our SIG Terra solutions lower the impact
of our aseptic cartons even further. See charts
below.
Life-cycle carbon footprint: How our aseptic cartons compare1
Liquid dairy
kg CO2 equivalent per packaging required for
1,000 liters UHT milk
Non-carbonated soft drinks
kg CO2 equivalent per packaging required
for 1,000 liters non-carbonated soft drinks
Food
kg CO2 equivalent per packaging required for
1,000 liters food
-45%
-34%
-70%
-39%
-28%
-63%
-61%
-58%
-40%
85
129
155
88
121
145
295
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 independent ISO-compliant life-cycle assessments.
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Sustainability continued
Sustainable innovation continued
Life-cycle carbon footprint: Additional
savings with SIG Terra solutions for
aseptic cartons
kg CO2 equivalent per packaging required for 1,000 liters
of milk or juice in 1 liter SIG SlimlineBloc pack format
(with SIG SwiftCap)1
-23%
-41%
-63%
55
42
32
20
Standard SIG
packaging
material for
aseptic cartons
(for milk or juice)
SIG Terra Alu-free
(for milk)
SIG Terra
Forest-based
polymers (for
milk or juice)
SIG Terra Alu-free
+ Forest-based
polymers (for milk)
1 Based on independent ISO-compliant life-cycle assessment CB-100734 for Europe.
2 Or in some cases REDcert2.
3 Linked to wood residues from paper making via an independently certified mass
balance system.
4 Excluding negligible constituents, such as inks and pigments.
5 Via an independently certified mass balance system.
Designing for recycling
All our cartons are designed
to be fully recyclable. The paper
content that makes up around
75% of aseptic cartons
(on average) is easily separated
in paper recycling streams,
and we are partnering to
increase recycling capacity
for the remaining polymer
and aluminum content.
See Resource+
SIG Terra solutions with no
aluminum layer can facilitate
further recycling of aseptic
cartons with just two materials
to separate. Our new targets
to create solutions that further
increase the paper content of
our aseptic cartons – to at least
85% (excluding closure) by
2025 and at least 90%
(including closure) by 2030 –
will not only increase the share
of renewable materials, but
also enable SIG cartons to be
recycled in regions where only
paper recycling streams are
available.
The cardboard box (not
manufactured or sold by SIG)
of bag-in-box solutions can be
easily separated from the bag
by consumers, and is fully
recyclable in paper recycling
streams. Our SIG Terra portfolio
includes recycle-ready
solutions for the bag of our
bag-in-box and for our spouted
pouches. Bag-in-box solutions
for dairy are already recycle-
ready, and our bag-in-box for
water is the first to be
recognized as 100% recycle-
ready by the US Association
of Plastic Recyclers (APR).
We are introducing tethered
closures across our packaging
portfolio to help ensure the cap
is recycled together with the
pack, and to comply with
forthcoming EU regulations
that require caps to be
tethered. We already offer
tethered (“Linked”) closures
for SIG carton formats that
account for around 90% of
our carton sales in Europe
(by volume), with one remaining
format to be launched in 2024.
Several of our spouted pouches
also include tethered closures
and the closures for bag-in-box
solutions are tethered
by design.
Optimizing use of
materials
We already optimize material
use in our existing solutions
through the exceptionally high
product-to-package ratio of
bag-in-box and spouted
pouches, and our innovative
RS structure that reduces the
amount of polymers needed
to make our aseptic cartons.
Our standard procedures
mandate that new packaging
designs must demonstrate
optimized resource use
compared with previous
models, while continuing to
deliver the quality and
functionality that customers
and consumers demand.
Removing aluminum foil
Aluminum foil makes up only
around 4% of an aseptic
carton, but a much higher
proportion of its life-cycle
carbon footprint.
We have led the industry with
the first solutions for aseptic
cartons that remove the need
for the aluminum foil barrier
layer – SIG Terra Alu-free for
use with oxygen-insensitive
products, such as white UHT
milk, and SIG Terra Alu-free +
Full barrier, which offers the
full barrier properties required
to preserve oxygen-sensitive
products, such as juices. We
are now working to achieve
cost parity of our SIG Terra
Alu-free packaging materials
with our standard materials
for aseptic cartons to support
increased uptake.
Where we still use aluminum
foil in our aseptic cartons, we
purchase 100% of it (from the
start of 2023) as Aluminium
Stewardship Initiative (ASI)
Certified.
Customers can include the
ASI Responsible Aluminium
Sourcing logo on their packs
to demonstrate and raise
consumer awareness of
responsible aluminum sourcing.
Increasing renewable
or recyclable content
A priority for our sustainable
innovation is to find ways to
introduce renewable or
recycled alternatives to virgin
fossil-based polymers. We are
doing this by linking polymers
to renewable or recycled
content using an innovative
mass balance system.2
See Resource+
The SIG Terra portfolio includes
Forest-based polymers linked
to 100% renewable materials.3
SIG Terra Alu-free + Forest-
based polymers, for use with
oxygen-insensitive products,
links the packaging materials
for our aseptic cartons to 100%
renewable materials.4 We also
offer circular packaging
materials linked to
post-consumer recycled
content – using polymers
linked to post-consumer
recycled plastics.5
We also offer renewable paper
straw solutions for our on-the-
go cartons as an alternative to
plastic straws.
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Sustainability continued
Sustainable innovation continued
Our targets
Performance in 2023
2025 target
Progress tracker
Launch a full barrier carton linked to 100%
renewable materials1 (also a target for Resource+
)
On track
Further reduce the amount of non-paper2
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+
)
Develop a full barrier aseptic carton with at least
85% paper content (excluding closure) by 2025
– and at least 90% paper content (including
closure) by 2030 (also a target for Resource+
)
Target replaced
New target
Offer a recycle-ready3 bag-in-box and spouted
pouch solution in all our relevant market
segments (also a target for Resource+
)
New target
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 aseptic carton packs4 (by 2024)
More work to do
Reduce use of consumables by 25% for the
next-generation filling machine for small format
aseptic carton packs5
More work to do
Driving sustainable innovation in
our packaging
• We rolled out new guidance on sustainable
packaging design – for our aseptic carton
solutions, and separately for our bag-in-box
and spouted pouch solutions – with training
for employees in relevant roles, such as
research and development, marketing, and
sustainability. These guidelines include
detailed market-level criteria on design for
recycling to support progress towards our
new targets in this area (see highlight
next page).
• Our focus on sustainable innovation earned
further plaudits this year, with external
recognition for SIG Terra Alu-free + Full
barrier (see highlight below).
Recognition for our new SIG Terra Alu-free +
Full barrier aseptic carton solution
Reducing resource
use in filling
Our highly efficient filling
machines for aseptic cartons
offer the lowest waste rate in
the beverage carton industry,
with just 0.5% or less of our
packs wasted during filling.
We aim to reduce the amount
of resources needed to run
the machines at our customers’
factories by designing every
new machine to use resources
even more efficiently. This
includes energy for heating
and sealing the packs, as well
as compressed air, hydrogen
peroxide, and water used in
cleaning, sterilization, and
packaging processes.
Through our SIG EcoFill
Consulting program, our
technical service teams work
with customers to identify
ways to reduce resource use
in the filling lines at their
factories, including through
a range of upgrade kits that
reduce energy and water
needed to use our existing
machines – which often
remain in use for decades.
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.
1 Excluding negligible constituents, such as inks and pigments.
2 Target wording amended from "fiber" to "paper" to align with wording of new quantified targets.
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
3
4 Targeted reductions compared with our previous generation filling machines. Target wording changed to clarify
this refers to filling of aseptic cartons.
5 Target wording changed to clarify this refers to filling of aseptic cartons.
Included in the China
Packaging Federation’s
2023 Blue Book of
Green and Low-carbon
Development of the
Packaging Industry.
Winner of the
4evergreen Alliance’s
Design for Circularity
award in its 2023
Circularity Success
Stories.
Winner of the top
prize in the Climate
category of the
Sustainability
Awards 2023 from
Packaging Europe.
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Sustainability continued
Sustainable innovation continued
Reducing life-cycle impact
• We continued our science-based approach
through LCAs to understand and measure the
environmental benefits of our most sustainable
innovations.
• We conducted our first LCAs of SIG Terra
solutions outside Europe, in Brazil and China.
The LCA of SIG Terra Alu-free + Full barrier in
China, where it was launched on the market in
2023 (see case study
), found that this solution
cuts the carbon footprint of our SIG MiniBloc
200 ml aseptic cartons by 25% compared with
our standard structure.1
• SIG Vita with tethered SIG TruCap – our new 1
liter aseptic carton for use with our
next-generation SIG NEO filling machines –
offers a carbon footprint up to 66% lower than a
1 liter PET bottle for dairy and juice markets in
Europe. Choosing SIG Vita with SIG Terra
Forest-based polymers cuts the footprint by a
further 50% compared with standard SIG Vita.2
• We built on the initial carbon footprint analysis
we completed last year by conducting full LCAs
of our bag-in-box for wine and our spouted
pouch for fruit purees in Europe and the USA
that are now undergoing critical review.
• We sold over 24 billion aseptic cartons in 2023
with the relevant ASI CoC Document with
claims to show that the aluminum foil they
contain is sourced with ASI certification, which
sets strict requirements for greenhouse gas
emissions in aluminum production. Of these,
2.8 billion featured the ASI Responsible
Aluminium Sourcing logo. This number has
more than doubled in 2023, compared with the
previous year, as more customers opt to include
the ASI logo on their packs to demonstrate and
raise awareness of responsible aluminum
sourcing.
Bold new targets on designing
for circularity
We will develop a full barrier
aseptic carton with at least
85% paper content
(excluding closure) by
2025 – and at least 90%
paper content (including
closure) by 2030.
We will offer a recycle-ready3
bag-in-box and spouted
pouch solution in all our
relevant market segments
by 2025.
Designing for circularity
• We have set bold new targets
to drive progress in designing
for circularity across our
portfolio as part of our
renewed Resource+ ambition
(see highlight above).
• We began piloting an
innovative circular solution
for bag-in-box with polymers
linked to post-consumer
recycled plastics4 (see right).
We are also in discussions
with major global brands to
offer our aseptic cartons with
SIG Terra Circular polymers
linked to post-consumer
recycled plastics4 as a
solution to help them
transition to circular
packaging and comply with
growing regulations related to
recycled plastic content.
• Following market testing, a
major customer confirmed
technical approval for our
recycle-ready 10 and 20 liter
SIG Terra RecShield 102B
bag-in-box for post-mix syrup
in China, and launched it
commercially in Indonesia.
This bag, including its fitment,
is made from 97%
polyethylene to support
recycling and cuts
greenhouse gas emissions
by 17%.5
• We are developing tethered
cap solutions, which ensure
the cap is kept together with
the pack for recycling, for all
SIG pack formats for
beverage packaging sold in
Europe, ahead of EU
regulatory requirements that
are due to come into force in
July 2024. We have already
launched Linked solutions for
five of our six closures for
aseptic cartons that together
account for more than 90%
of SIG’s European closures
by volume – and a Linked
solution for the remaining
closure will be launched in
early 2024. We are also
developing tethered caps
for more of our bag-in-box
and spouted pouch solutions.
A world first with our circular bag-in-box solution
We have joined forces with one of the world’s biggest beverage companies,
one of the biggest quick-service-restaurant (QSR) chains, and our polymer
supplier SABIC to pilot a new circular bag-in-box solution in the Netherlands.
The pilot involves partners throughout the value chain to create an innovative
circular system on a mass balance basis.
The 20 liter and 250 liter bag-in-box being piloted are made with SIG Terra
FlexiGuard 46 Circular Polymer film and use a growing share of post-consumer
recycled plastics – up to 53% for the 20 liter bag-in-box and 42% for the 250 liter
bag-in-box – via an ISCC PLUS-certified mass balance system. The polymers we
use to make the film are supplied by SABIC.
The bags are filled with post-mix syrup by the beverage company and delivered
to quick-service restaurants. After use, the bags are recycled using an advanced
recycling process for SABIC to produce new food-grade certified circular
polymers. These are then used in our bag-in-box and other applications, thus
closing the circle.
With more and more customers asking for recycled content in their packaging,
our innovative circular bag-in-box solution can support their sustainability
ambitions and help them comply with emerging regulations.
1 Compared with standard SIG packaging material for aseptic cartons, based on independent ISO-compliant
life-cycle assessment. Data has been critically reviewed and the full report will be published in 2024.
2 Based on independent ISO-compliant life-cycle assessment. Data has been critically reviewed and the full
report will be published in 2024.
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
3
4 Via an independently certified mass balance system.
5 Based on cradle-to-customer gate carbon footprint calculation for China.
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Sustainability continued
Sustainable innovation continued
Switching to SIG Terra Forest-
based polymers packaging
material ensures we are giving
our consumers the most
sustainable, yet convenient,
packaging solution. We have
a strong heritage in producing
high quality tomato products
which respect nature, always
working in an ethical and
sustainable way along the entire
supply chain. Our cooperation
with SIG means we’re always
ahead of the curve in being able
to offer high quality food, while
also increasing our commitment
to sustainability.
Fabrizio Fichera
Marketing & Business Development Director,
Casalasco Società Agricola S.p.A.
Growing uptake of our most
sustainable innovations
• Across our packaging portfolio, we have now
sold enough packs with SIG Terra solutions to
fill around 4.3 billion liters of food. In 2023 alone,
1.5 billion liters of food were packed in packs
with SIG Terra packaging materials. SIG Terra
solutions accounted for 5.3% of the food
packed in SIG packaging globally in 2023.
• Sales of our SIG Terra packaging materials for
aseptic cartons increased by 12% this year, with
further expansion in Europe, as well as a market
debut in China. SIG Terra solutions in aseptic
cartons accounted for 9.7% of the food packed
in SIG aseptic cartons in Europe – where uptake
has been particularly strong – and 3.9%
worldwide. Market debuts this year included:
• The first commercial launches of our new
SIG Terra Alu-free + Full barrier solution for
aseptic cartons – by Yili Group and Mengniu,
China’s two largest dairy companies
(see Case study
).
• The first use of aseptic cartons with SIG
Terra Forest-based polymers for food
products in Europe, by Casalasco Società
Agricola S.p.A., a major producer and
co-packer of tomato products, for its Pomì
Finely Chopped Tomatoes (see left).
• The first launch of SIG Terra Alu-free aseptic
carton packs in Austria, by Gmundner Dairy,
the country’s third largest dairy, for its
Gmundner premium milk (see below right).
• We have expanded our SIG Terra portfolio this
year to include recycle-ready bag-in-box and
spouted pouch, and extended uptake of our
first recycle-ready spouted pouch, launched in
2022. Our largest spouted pouch customer, one
of the world’s biggest fruit puree brands, used
3 million m2 of our SIG Terra RecShield PE-B
polymer film this year – enough to make over
139 million pouches and fill more than 11 million
liters of food.
• We partnered with a major customer in China
in the first commercial launch of our aseptic
bag-in-box with RecShield PP-109B, which
showcases recycle-readiness according to the
Consumer Goods Forum’s Golden Design Rules
for optimal plastic design, production, and
recycling. The customer has now transitioned
all its 10 liter and 20 liter format bag-in-box
to this solution.
• More than 33 customers have rolled out SIG
SwiftCap Linked, the tethered version of our
most used closure for aseptic cartons
(by volume), and four more of our Linked
closures – SIG MaxxCap Linked, SIG DomeCap
Linked, SIG TruCap Linked, and SIG SmartCap
Linked – had their first commercial launch
this year.
• We have now sold over 1.1 billion small-format
on-the-go packs with our paper straw solutions,
which offer a renewable alternative to plastic
straws and support customers in complying
with growing regulations on single-use plastics.
As the first producer in Austria to bring shelf-stable milk to the
market in a carton pack without an aluminum layer, we are pleased
to be working with SIG to set a new, sustainable impulse in the field
of packaging. Offering aseptic carton packs without an aluminum
layer is a milestone in sustainability not only for our company,
but also for retailers and consumers.
Christoph Engl
Managing Director, Gmundner Dairy
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Reducing resource use in filling
• We supported 20 customers in identifying ways
to reduce resource use in their filling machines
and factories through the SIG EcoFill Consulting
program this year. We helped one of them
achieve annual savings of around 6 million liters
of water, 345,100 m3 of compressed air, 28 MWh
of energy, and 22 metric tons of CO2 emissions.
• We sold 23 more water reduction kits, designed
to cut water consumption by up to 50% during
filling of our aseptic cartons, and extended this
solution to an additional filling machine format.
All new filling machines are now deployed with
water reduction upgrade kits already installed.
We also sold more of our semi-automated
cleaning machines that can cut water use by
54% compared with manual cleaning of aseptic
carton filling machines.
• We introduced new upgrade kits that reduce
the amount of compressed air (and related
energy use and greenhouse gases) needed for
filling, by reducing pressure and supplementing
the use of compressed air for drying our aseptic
cartons on the filling production line.
• The first commercial filling using SIG NEO,
our next-generation filling machine for
family-size aseptic cartons, is underway
with Hochwald, one of the largest dairy
cooperatives in Germany. SIG NEO is
designed to reduce overall use of utilities
(hydrogen peroxide, compressed air, and water)
by 30% on average8 and the results of the
first commercial filling will enable us to confirm
and report actual reductions in 2024. We
have also commenced pre-development of
our next-generation filling machine for small
format packs, with a reduction of consumables
being considered in the concept phase.
• We are targeting reductions in hydrogen
peroxide, energy, and water use in our filling
machines for chilled cartons, and plan to review
opportunities to reduce resource use in filling
our bag-in-box and spouted pouch solutions
in 2024.
Sustainability continued
Sustainable innovation continued
Uptake of SIG Terra1 packaging materials (million liters)
SIG Terra solutions for aseptic cartons
SIG Terra Alu-free2
(launched 2010)
SIG Terra Alu-free + Forest-based
polymers3 (launched 2017)
SIG Terra Forest-based polymers4
(launched 2018)
SIG Terra Alu-free + Full barrier6
(launched in 2022)
2020
2021
2022
2023
Total
since
launch
329.4
369.4
381
429.3
2,572.8
86.9
102.4
84.4
60
351.8
40.9
69.2
148.15
195.6
–
–
0.6
492
0.6
–
–
SIG Terra recycle-ready7 solutions for bag-in box and spouted pouch
SIG Terra bag-in-box and spouted pouch
solutions (added to our portfolio in 2022)
–
–
858.7
858.7
All SIG Terra portfolio
457.2
540.9
613.55 1,544.2
4,275.9
1 Formerly SIGNATURE.
2 Formerly combibloc ECOPLUS.
3 Formerly SIGNATURE 100.
4 Formerly SIGNATURE FULL BARRIER.
5 Previously published data restated in line with restatement policy.
6 Formerly SIGNATURE EVO.
7
8 Anticipated savings compared with our previous generation filling machines, to be confirmed through first commercial filling.
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
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Sustainability continued
Sustainability continued
Responsible culture: Our supply chain
Responsible culture: Our supply chain
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 procured
100%
ASI-certified aluminum foil for our
aseptic cartons in 2023
We continued to purchase
100%
FSC™-certified paperboard for our
aseptic cartons in 2023
We spend over €2.2 billion a year with more than
11,000 suppliers around the world. Around 50%
of this goes on raw materials to make our packs.
The rest goes on parts for our filling machines,
and on other products and services to support
our business.
Demonstrating that our suppliers uphold high
ethical, labor, health and safety, and
environmental standards is critical to meet
customer and investor requirements – and to
prevent breaches in our supply chain that could
disrupt our supply or affect our reputation.
Sustainable sourcing of raw materials helps us
secure supplies to meet our customers’ needs
now and in the future, as well as supporting
commitments. Using raw materials
progress towards our Forest+
and Climate+
certified to responsible sourcing standards
endorses the environmental credentials of
our packs.
, Resource+
,
Progress in 2023
For our aseptic cartons, we procured 100% of
the aluminum foil with ASI Certification in 2023
– a first for the aseptic carton industry – and we
used more ISCC PLUS-certified polymers linked
to renewable forest-based materials3 to meet
growing demand for SIG Terra Forest-based
polymers. We have also made good progress
integrating the businesses we acquired in
2022 into our established responsible sourcing
program.
We continued to purchase 100% of the
paperboard1 for our aseptic cartons with FSC™
certification,2 and achieved this milestone for
our newly acquired chilled carton business
from January 2024.
Read on for more on
Our supply chain
Or go to
Human rights
Our responsible aluminum
journey with ASI
SIG has led the industry in the responsible
sourcing of aluminum through certification to
the Aluminium Stewardship Initiative (ASI),
which enables us, and our customers, to trace
the aluminum in our aseptic cartons through
the value chain from mine to smelter to carton.
ASI certification includes independent audits of
the aluminum supply chain against strict ethical,
environmental, and social standards – including
on greenhouse gas emissions reductions, water
stewardship, waste management, and
labor rights.
2017
2018
2019
2020
2021
2022
2023
ASI launches its
Performance
Standard and we
assess readiness with
a key supplier prior
to the launch.
SIG becomes the first
in the industry, and one
of the first companies
in the world, to achieve
ASI Certification –
to the ASI Performance
Standard at company
level and ASI Chain of
Custody at one
production plant.
ASI Chain of Custody
certification in place
at all our aseptic carton
production plants in
Europe. SIG is the first
and only carton
producer to offer
ASI-labeled packs.
ASI Chain of Custody
certification extended
to all our aseptic
carton production
plants globally.4
ASI Certification
achieved by suppliers
representing over 70%
of our global aluminum
foil supply.
Customers feature the
ASI logo on 1.4 billion
of their SIG aseptic
cartons to raise
awareness of
responsible aluminum
sourcing.
We procure 100% of
our aluminum foil with
ASI Certification,
enabling the ASI logo
to be included on any
of our aseptic cartons
– an industry first.
1 Our cartons use paper-based liquid packaging board, referred to throughout as “paperboard”.
2 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and
ensures that an equivalent amount of FSC™ certified wood is procured at the beginning of the value chain.
3 Polymers linked to wood residues from paper making via an independently certified mass balance system.
In some cases REDcert2 certification is used in place of ISCC PLUS.
4 Except the plant in Melbourne, Australia, which was acquired in 2019 and ceased operating in mid-2021.
Next steps:
Our next focus is on increasing
content linked to post-industrial
waste in the aluminum foil
we purchase.
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How we define significant suppliers
Significant suppliers are
those considered most
significant to our business
(excluding equipment
suppliers, see below) – 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. They
include all direct suppliers
that provide materials for our
packs, as well as some
indirect suppliers of
secondary packaging and
services (such as facilities
management and logistics).
Significant equipment
suppliers are the equipment
suppliers considered most
significant to our aseptic
carton machine business
units – based on critical
countries where suppliers are
located, materials are
produced, or services are
provided – and also include
those providing equipment or
components that include
conflict minerals.
See Our targets
Responsible culture continued
Our supply chain continued
Our commitment
Sourcing responsibly
We expect suppliers to meet our responsibility
requirements to help mitigate social and
environmental risks in our supply chain.
Our Supplier Code of Conduct sets out our
expectations on topics such as labor, health
and safety, and environmental protection.
Further due diligence on responsible sourcing
focuses on our significant suppliers (see right
how we define significant suppliers ). This includes
screening against social and environmental criteria,
requiring formal acceptance of our Supplier Code
of Conduct, and monitoring compliance through
risk assessments and audits. Screening criteria
cover human rights, labor practices, health and
safety, resource efficiency, energy use and
greenhouse gas emissions, and pollution.
Through our Supplier Code of Conduct, and
our general terms and conditions, we require
equipment suppliers providing parts for our
filling machines to comply with all applicable
laws and regulations related to conflict minerals
from conflict-affected or high-risk areas. We
also require them to complete an additional
questionnaire on critical raw materials and a
conflict minerals reporting template to support
our responsibility to provide transparency about
the minerals in the supply chain of our products.
Our Responsible Sourcing Directives, and
accompanying training, provide procurement
teams with detailed guidance to support
implementation of our responsible sourcing
approach, which also supports human rights due
diligence in our supply chain. See Human rights
1 Our cartons used paper-based liquid packaging board, referred to throughout as “paperboard”.
2 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and
ensures that an equivalent amount of FSC™ certified wood is procured at the beginning of the value chain.
3 Or in some cases through REDcert2 certification.
Sustainable raw materials
We are working to replace virgin and fossil-
based materials with renewable and recycled
alternatives, and we remain committed to
sourcing the A-materials that go directly into
our packs (see right) from certified, responsible
sources. These include:
• Paperboard1: Forest Stewardship Council™
(FSC™) certification traces materials back
to sustainably managed forests and other
controlled sources.2 FSC™ certification
ensures that forestry operations avoid forest
degradation or deforestation, protect
biodiversity, maintain eco-system services
and carbon storage, and respect the rights
of workers, local communities, and
indigenous peoples.
• Aluminum foil: ASI Certification supports
responsible aluminum through the supply chain.
It sets strict standards, including on greenhouse
gas emissions reductions, water stewardship,
waste management, and labor rights.
• Polymers and films: There is no suitable
certification for fossil-based polymers.
Our focus is on linking more of the polymers
in our packs to renewable or recycled
alternatives. We do this using a mass balance
system – verified through International
Sustainability & Carbon Certification (ISCC)
PLUS certification3 – which supports a broader
transition away from fossil-based feedstock
within the mainstream polymer industry,
ensuring the traceability of certified materials
along the entire supply chain
• Inks and solvents: We are working to transition
to bio-based alternatives where we use
fossil-based inks and solvents. The volumes
sourced are negligible compared with other
A-materials.
Where feasible, we 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.
How we define
our A-materials
A-materials are the raw
materials that go directly
into our packs.
Aseptic cartons
paperboard, polymers,
aluminum foil, ink,
and solvents
Chilled cartons
paperboard, polymers,
ink, and solvents
Bag-in-box and
spouted pouches
polymers and films
SIG does not manufacture
or sell the cardboard box
of our bag-in-box
solutions.
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Responsible culture continued
Our supply chain continued
Where our A-materials come from
We source the main1 A-materials for our packs from around
100 suppliers – ranging from local paper mills that source
wood from their own forests to major multinational mining
and chemical companies.
Canada
USA
Austria
Sweden
Poland
Finland
Norway
Germany
Netherlands
Belgium
UK
France
Italy
Switzerland
Polymers (including films)
Paperboard
Aluminium foil
Peru
Chile
Brazil
1 Excludes inks and solvents which we source in negligible volumes compared to our other A-materials.
Saudi Arabia
India
Australia
Japan
South Korea
China
Thailand
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Responsible culture continued
Our supply chain continued
Our targets
2025 target
Progress tracker
Ensure 100% of significant suppliers1 accept our Supplier Code
of Conduct or have an equivalent code in place
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
100% A-materials2 from certified sources
Maintain 100% FSC™-certified supply of paperboard for our
cartons3 (also a target for Forest+)
More work to do
On track
Transition to 100% bioethanol or other bio-materials for printing our
aseptic cartons4 (also a target for Climate+)
On track
Performance in 2023
Aligning our approach on
responsible sourcing
• We have worked to integrate the businesses
we acquired in 2022 into our established
responsible sourcing program and reporting.
By the end of the year, we had aligned our
approach for all significant suppliers1 to our
chilled carton business and all identified direct
significant suppliers to our bag-in-box and
spouted pouch business. We will work to add
further significant suppliers for our bag-in-box
and spouted pouch business in future, including
indirect suppliers providing secondary
packaging and services.
• We updated our Responsible Sourcing Directive
to include our newly acquired businesses, and
provided training for all global, regional and
local procurement teams. We also developed
a separate Responsible Sourcing Directive
specifically for our aseptic carton filling
machine business, to be rolled out in 2024,
which articulates our approach and
requirements related to human rights and
conflict minerals to support due diligence
and transparency in this area.
Screening and assessing suppliers
• We screened 100% of new significant
suppliers for our carton businesses as part
of our onboarding process, including all
those newly supplying SIG Group through
the acquisition of our chilled carton business
in 2022. We also screened 100% of identified
direct significant suppliers for our bag-in-box
and spouted pouch business. No suppliers
were rejected for failing to meet our standards
in 2023.
• 80% of in-scope significant suppliers have
signed up to our Supplier Code of Conduct
or an equivalent, as well as 85% of significant
equipment suppliers for our aseptic carton
filling machine business.
• We asked our 890 in-scope significant suppliers
to respond to a self-assessment on our
responsibility requirements and 712 (80%)
responded.
• Based on their self-assessments, 65 significant
suppliers are currently engaged in development
plans to improve their social and environmental
performance.
• Twelve significant suppliers were identified as
high risk this year. We will engage with them to
improve in the coming year and, if any remain
high risk following our engagement, we will audit
at least half of these.
• We audited one of the six suppliers that was
identified as high risk through self-assessments
in 2022 and we are following up on areas
identified for improvement. Four further
suppliers that were identified as high risk in
2022 are no longer high risk because they
have accepted our Supplier Code of Conduct,
provided SEDEX SMETA audit results, or
confirmed an EcoVadis rating of Silver or
higher (or an equivalent). This means we have
met our annual target to audit 50% of high-risk
significant suppliers this year.
• All relevant equipment suppliers were asked
to complete a self-assessment questionnaire
related to critical raw materials. We also
requested those supplying equipment or
components that include conflict minerals
to provide a completed conflict minerals
reporting template. By the end of 2023,
we had already received responses from
more than 65% of relevant suppliers and we
have begun appropriate follow up activities.
Rating in-scope significant
suppliers on responsible
sourcing standards
Advanced – Demonstrated strong performance through SEDEX
audit findings, EcoVadis Silver/Gold/Platinum, or equivalent
evidence (status valid for up to two years) – 14%
Compliant – Demonstrated compliance through SEDEX audit,
EcoVadis Bronze, or equivalent evidence (status valid for
two years) – 6%
Accepted – Signed up to the SIG Supplier Code of Conduct
(or equivalent code) and achieved minimum standard in our
assessment. Depending on the type of supplier, some are
expected to improve their performance and submit plans to
achieve certification to recognized standards or third-party
assessments (status valid for two years) – 47%
High risk – Failed to sign up to our Supplier Code of Conduct
(or equivalent code), or provide evidence of third-party
assessments (status valid for one year) – 1%
Re-assessment running – Currently undergoing re-assessment
– 13%
Under review – Currently undergoing initial assessment – 19%
1 See Our supply chain: 'How we define significant suppliers'
.
2 A-materials are the raw materials that go directly into our packs: paperboard, polymers, aluminum foil, ink, and solvents for aseptic
cartons; paperboard, polymers, and ink for chilled cartons; and polymers and films for bag-in-box and spouted pouches. (SIG does
not manufacture or sell the cardboard box of our bag-in-box solutions.)
3 Target wording revised to clarify that it only applies to our cartons (aseptic and chilled). Our cartons use paper-based liquid packaging
board, referred to throughout as “paperboard”. Our supply chains for bag-in-box and spouted pouch solutions are not connected to
forest-based materials as we do not manufacture or sell the cardboard box of our bag-in-box solutions.
4 Target wording amended to clarify that this applies to our aseptic cartons only.
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Responsible culture continued
Our supply chain continued
Sourcing sustainable raw materials
• We continued to increase the volume of
A-materials from certified and renewable
sources for our aseptic cartons and from
2023 we report these metrics for all our packs.
Overall, 69% of A-materials for all our packs
came from certified sources and 66% came
from renewable sources (see table below).
Paperboard
• We continued to purchase 100% of the
paperboard for our aseptic cartons with FSC™
certification2 – and achieved this milestone for
our chilled carton business (acquired in 2022)
from January 2024. Overall, 98% of the
paperboard for our cartons was procured
with FSC™ certification in 2023.
Aluminum foil
• Starting in January 2023, we now procure 100%
of the aluminum foil for our aseptic cartons with
ASI Certification and we remain the only carton
producer to offer aseptic cartons with
ASI-certified aluminum.
• We maintained Group certification to the ASI
Performance Standard for our aseptic carton
business and ASI Chain of Custody Certification
at all our aseptic carton production plants.
• We engaged with suppliers to work towards
increasing content linked to post-industrial
waste in the aluminum foil we purchase.
Polymers
• We sourced more ISCC PLUS-certified
Ink
• Eight of our nine aseptic carton production
polymers linked to renewable materials3 in
2023 to meet growing customer demand for
SIG Terra Forest-based polymers, but the total
volume remains low compared to the amount
of fossil-based polymers we source.
plants have already transitioned from
fossil-based solvents to plant-based bioethanol
for printing. We expect our plant in Riyadh
(Saudi Arabia) to achieve this transition in
the coming year.
• We began sourcing ISCC PLUS-certified
polymers linked to post-consumer recycled
plastics3 for a pilot of a circular bag-in-box
solution (see Sustainable innovation
).
• Our new aseptic carton production plant in
Querétaro (Mexico) achieved certification to
handle ISCC PLUS certified materials this year.
We have this certification in place at all aseptic
carton production plants globally, our cap
production plant in Switzerland, and two
bag-in-box production plants in Europe.
Secondary packaging
• We continued to purchase 100% of the
corrugated cardboard we use for secondary
packaging to transport our aseptic cartons
in the Americas, Europe, and Asia Pacific
(excluding China) from FSC™-certified sources.
In India, Middle-East and Africa, we reached
75% this year and expect to get to 100%
through our upcoming tender process.
Sourcing A-materials1 for our packs
A-materials purchased
(metric tons)
% A-materials from renewable
sources (by volume)
% A-materials from certified
sources (by volume)
2020
2021
2022
2023
For our aseptic cartons
For all
our
packs
2023
594,000
666,000
687,000
687,000
810,000
72%
62%
69%
70%
71%
74%
72%
75%
66%
69%
1 Excludes inks and solvents which we source in negligible volumes compared to our other A-materials.
2 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and ensures that an equivalent
amount of FSC™ certified wood is procured at the beginning of the value chain.
3 Via an independently certified mass balance system.
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Responsible culture continued
Human rights
Human
rights
We strive to identify,
prevent, and manage actual
and potential 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 Organization for
Economic Co-operation and Development
(OECD) frameworks.
Progress in 2023
We continued to make progress on our roadmap
to strengthen human rights due diligence, with
oversight from a new steering committee that
includes Group Executive Board representation.
We updated our policy, and conducted further
assessments of our operations and supply
chain – including rigorous SEDEX Members
Ethical Trade Audits (SMETA) audits at all
our production plants.1
Read on for more on
Human rights
Or go to
Our people
Upholding labor standards
across our sites
We set strict standards to ensure we
uphold human rights across our operations.
We check compliance through rigorous
external audits every two years at our
production sites, where risks are highest.
All 27 SIG production plants globally
completed four-pillar SEDEX Members
Ethical Trade Audits (SMETA) – including
our newly acquired chilled carton, bag-in-
box, and spouted pouch sites – in our 2023
two-yearly audit cycle.1
Human rights risks are assessed as part of
the pillars on labor and health and safety,
alongside business ethics and environment.
The intensive audits include in-depth reviews
of our policies and processes, site visits, and
interviews with workers to check for unsafe
conditions, overwork, discrimination, low pay,
and forced labor.
United Nations Global Compact
SIG is a signatory of the United Nations
Global Compact, which includes a
strong focus on human rights. We
support its ten principles and submit
an annual Communication on Progress.
AIM-PROGRESS
SIG is a member 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 use its
established methodology to assess,
and identify opportunities to strengthen,
human rights due diligence related to
our supply chain.
1
Includes one audit within the 2023 cycle that was completed in early January 2024.
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Responsible culture continued
Human rights continued
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 Labor
Organization’s (ILO) core labor
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
proactively address salient human rights issues in
our operations and supply chain. Representatives
from relevant business functions form a task
force to implement our roadmap to strengthen
our due diligence framework, with oversight from
a human rights steering committee that includes
members of our Group Executive Board and other
senior leaders.
Our commitment to promoting fair labor
practices and upholding labor rights for our
employees is embedded in our Human Rights,
Labor, and Community Engagement Policy.
This includes: providing fair pay and decent
working conditions to enable adequate living
standards; recognizing the right to freedom of
association and collective bargaining; and
preventing discrimination, child labor, and modern
slavery (including human trafficking, forced and
compulsory labor, bonded labor, and slavery).
We also ensure working conditions and terms of
employment for employees who are not covered
by collective bargaining agreements are in line
with our standards and local requirements.
SEDEX SMETA audits conducted at our
production sites every two years include
an assessment of potential human rights risks
and impacts as part of the labor pillar and the
health and safety pillar, and help us check that
we are living up to our commitments in our
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 labor 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. This supports
compliance with human rights due diligence
regulations (see Appendix on ESG Disclosures
).
We encourage significant suppliers to undergo
third-party assessments, such as SMETA audits,
and criteria for our own audits of high-risk
suppliers include human and labor rights. FSC™
certification for the paperboard used in our
cartons includes criteria on protecting human
and indigenous rights in communities. We also
set specific requirements for equipment suppliers
on conflict minerals (see Our supply chain
member of AIM-PROGRESS (see previous page),
we use its methodologies to help us evaluate our
human rights supply chain due diligence against
established best practices.
). As a
Annual certification and training on the SIG
Code of Conduct, which includes human rights,
is mandatory for all employees. Any grievances
can be reported through our Integrity &
Compliance Hotline, which is open to employees
and external stakeholders such as investors,
suppliers, customers, and other business partners.
It is available to anyone who wants to raise a
concern regarding human rights or the
environment related to our own operations or
our suppliers’ business activities.
We investigate all reported concerns, take
appropriate action, and seek to find solutions
together with the affected person or persons.
Our targets
2025 target
Progress tracker
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 significant suppliers1 accept our Supplier Code of
Conduct or have an equivalent code in place (also a target for Our
supply chain)
On track
On track
On track
On track
Audit 50% of high-risk significant suppliers1 each year (also a target
for Our supply chain)
On track
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 Our supply chain)
On track
1 See Our supply chain: 'How we define significant suppliers'
.
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Raising awareness and acting
on concerns
• Approximately 99% of employees completed
an annual certification on the SIG Code of
Conduct, which includes requirements to
respect human rights.
• We promoted our Integrity & Compliance
Hotline through campaigns, ongoing
communication, and training to ensure
employees understand how to raise a concern.
In 2023, we extended access to the hotline to
external stakeholders such as investors,
suppliers and customers, or other business
partners (see Governance and ethics
).
• We investigated all reported concerns and took
disciplinary action as appropriate. No incidents
of discrimination were substantiated in 2023.
Responsible culture continued
Human rights continued
Performance in 2023
Strengthening human rights due
diligence
• We have continued implementing our three-
year roadmap to strengthen human rights due
diligence. The roadmap is based on an analysis
of our operations and supply chain that we
completed in 2022, and the findings of a
maturity assessment using the methodology
established by AIM-PROGRESS. It also builds
on the requirements of emerging regulations,
such as the new Swiss Ordinance on Due
Diligence and Transparency in relation to
Minerals and Metals from Conflict-Affected
Areas and Child Labor.
• We established a steering committee to oversee
implementation of our human rights due
diligence roadmap. Members include our Chief
People and Culture Officer (a member of our
Group Executive Board with designated
responsibility for human rights) and senior
leaders from relevant business functions.
• Our human rights taskforce undertook
extensive activities this year to strengthen our
human rights due diligence, including reviewing
and updating our policy, conducting further risk
assessments and analyses to inform
identification of salient human rights issues,
and extending our grievance mechanism
to suppliers and other third parties.
• We updated our Human Rights, Labor, and
Community Engagement Policy to reflect our
strengthened due diligence framework and
governance, including more explicitly allocating
responsibility for human rights to our steering
committee and specific business functions.
Upholding labor rights in our
operations
• Following on from a human rights risk
assessment of our operations as a whole in
2022, all 27 of our production sites completed
SEDEX SMETA audits in our 2023 two-yearly
cycle1 (see Case study
Australia and Mexico, and several SIG legal
entities in Germany and Switzerland, also
completed SMETA audits.
). Our office sites in
• We continued efforts to promote diversity,
equity, and inclusion (see Our people
).
We assessed pay for employees in two
countries (Austria and Romania) to support
fair and equitable pay levels, and we plan to
review pay in all countries with more than
100 employees (covering around 90% of our
workforce) over the next five years to inform
our fair pay roadmap.
• Around 44% of employees globally were
covered by collective bargaining agreements
in 2023. We continued to engage on pay,
benefits, and other relevant local topics in
formal consultations with employee
representatives.
Addressing risks in our supply chain
• Our assessment of human rights risks in the
supply chain last year focused on identifying
high-risk suppliers by their country of operation.
We used the findings to inform further risk
assessment of raw material and equipment
suppliers this year. This involved mapping
suppliers against publicly available country and
product risk data, then conducting an in-depth
assessment of selected suppliers using
information from sources such as EcoVadis
and SEDEX SMETA audits.
• We also continued our regular assessments of
suppliers for compliance with our Supplier Code
of Conduct, which includes requirements on
human and labor rights, and began to extend
these requirements in our newly acquired
bag-in-box, spouted pouch, and chilled carton
businesses (see Our supply chain
).
1
Includes one audit within the 2023 cycle that was completed in early January 2024.
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Responsible culture continued
Our people
Our
people
Our culture of striving
for better celebrates
an inclusive and diverse
environment that
encourages our people
to grow and realize their
potential.
40%
women on our Group Executive Board
in 2023
85%
sustainable engagement score
(up two points) in 2023
At SIG, we offer a unique combination of
development, collaboration, and entrepreneurial
freedom that enables our people to deliver
better and create lasting value for customers,
consumers, and the world.
We strive to create an inclusive culture, embrace
diversity, and foster a positive working
environment. We invest in training and
development to help employees achieve their
goals and build their careers with SIG. We listen
and respond to our people, and we recognize
and reward the work they do.
Upholding these commitments delivers positive
impact for our people and our business. It helps
us: recruit and retain the best talent; develop
the skills we need now and in the future; maintain
strong levels of job satisfaction, motivation,
engagement, and productivity; support our
diverse customers; foster innovation; and meet
expectations from investors and other
stakeholders.
Progress in 2023
Representation of women increased to 40%
of our Group Executive Board and 25% of our
leaders in 2023. We continued to train senior
leaders on diversity, equity, and inclusion (DE&I)
topics, and enhanced cultural diversity through
international work placements.
We launched a new competency framework
and expanded learning and development
opportunities, including through mentoring
and digital learning. Our latest employee survey
showed strong levels of engagement and we
outperformed the industry benchmark1 across
all categories.
Read on for more on
Our people
Or go to
Health, safety, and wellbeing
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
Expanding horizons and
embracing cultural diversity
A career with SIG is a journey
of personal and professional
discovery. Opportunities to
work in a different country
enable our people to learn
about diverse cultures and
support their career
development. International
assignments support an
inclusive working environment
and encourage the exchange
of ideas to foster innovation.
Being a foreigner working in
Asia has been an incredible
journey. The workplace is a
melting pot of cultures,
languages, and backgrounds
and it’s been a privilege to
experience this firsthand.
Working in such an inclusive
environment has not only
broadened my horizons, but
also taught me the value of
unity in diversity.
Maroun Hannoun
Head of Service Business,
who relocated with SIG from
Lebanon to Thailand
The exchange of cultures adds
immense value to our business.
Diverse perspectives, rooted in
different cultural and socio-
economic backgrounds, lead to
innovative solutions for our
customers.
Thiago Balbino
Product Development Engineer,
who relocated with SIG from
Brazil to Germany
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Responsible culture continued
Our people continued
Our commitment
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.
In 2023, we employed approximately
9,000
employees
Our employees represent
93nationalities
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.
Our targets
2025 target
Progress tracker
We aim to provide opportunities for our people
through investment in training and development,
approachable leadership, continuous learning,
development opportunities, coaching, and
mentoring. Any employee can become a mentor
or a mentee (or both) to help our people learn
from each other, grow together, and enhance
networking within SIG.
We continually work to improve the frequency
and quality of feedback and appraisal sessions
to support employee engagement, development,
and performance. We strive to promote from
within where appropriate as part of our
commitment to developing and promoting
talent within SIG.
We want everyone at SIG to understand how
they contribute to our purpose as we strive to
be a driving force for better. We are committed
to creating an open, engaging, and energizing
work environment where our people feel that their
ideas, needs, and concerns are heard and valued,
they are recognized and rewarded for what they
do, and they understand how their work
contributes to the success of the business.
One of the ways we assess and recognize
individual and team performance annually
is through our Short-Term Incentive Plan.
Feedback from our annual employee survey
provides a holistic view of our employees’
experience at SIG and serves as a foundation
for further improvements.
Positive working conditions are reinforced by
ensuring fair pay, working hours, and days off,
providing job security, enabling a positive
work-life balance, and offering competitive
benefits in each local market. Upholding fair
labor practices is central to our commitment
to human rights (see Human rights
).
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
benchmark1
More work to do
Achieve engagement level above industry benchmark1
Increase % of employees who feel SIG has 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
On track
On track
On track
Employees by nationality in 2023
German – 21.5%
Chinese – 18.6%
American – 10.3%
Brazilian – 10.0%
Thai – 7.0%
Indian – 3.4%
Austrian – 2.7%
Romanian – 2.5%
Dutch – 2.4%
Mexican – 2.3%
Spanish – 1.7%
Australian – 1.6%
Filipino – 1.5%
Korean – 1.3%
Turkish – 1.2%
Other – 12%
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
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Responsible culture continued
Our people continued
Performance in 2023
Women in management (%)
Improving gender balance at
senior levels
• We have further increased representation of
women on our Group Executive Board (GEB).
In 2023, women made up 40% (four of ten) of
our GEB and 33% (three of nine) of our Board
of Directors. We increased the number of
women in leadership positions to 25%, up from
23% last year, and we remain on track to hit
our 30% target by 2025.
• Nineteen more women joined our Women
Acceleration program, which aims to help
close the gender gap in leadership positions
by supporting ambitious women at SIG to
develop leadership skills, gain visibility and
sponsorship from leaders, and widen their
networks. They accessed virtual learning,
coaching, and mentoring from our senior
leaders, and had the opportunity to present
to our GEB. By the end of 2023, 61% of those
participating in the program to date had been
promoted, had their roles broadened to take
on more responsibilities, or made a lateral
career move. Alumni of the program were also
invited to talks this year to hear insights from
inspirational SIG women.
• Two female leaders are nominated in the
external She4Her mentoring program to help
them build networks, develop an entrepreneurial
mindset, and navigate challenges posed by
digitization and new business models. We also
worked with external partners, such as the
European Women on Boards, to attract female
leaders from outside SIG.
Women represented
25%
of leadership positions in 2023
Women in leadership
positions1 (target 30%
by 2025)
Group Executive Board
Senior management
Middle management
Junior management
All management
All employees
2020
2021
2022
2023
18%
0
22%
18%
24%
19%
19%
20%
14% (1 of 7)
16%
20%
25%
22%
19%
23%
33% (3 of 9)
8%
19%
25%
23%
20%
25%
40% (4 of 10)
13%
25%
25%
25%
23%
Attracting and hiring diverse talent
• We revised our recruitment practices to help
us attract diverse talent, including updating
our job advertisements to avoid gendered
language, introducing standardized interview
questions, and striving for diverse interview
panels where possible.
• We continued to train recruiters and hiring
managers on unconscious bias and cultural
awareness, emphasizing our commitment to
select the best person for each job regardless
of gender, ethnicity, age, or any other relevant
category.
• Local initiatives to attract diverse talent
included establishing a talent pool of people
with disabilities and people of color in the
Americas South region and joining school
career fairs to encourage more young women
into engineering roles in Europe.
Creating an inclusive culture
• We established a new DE&I Council, made up
of four GEB members, to champion DE&I from
the top of the business. Members completed
training this year on topics such as allyship and
inclusive leadership. They are supported by a
team of 20 employee representatives forming
our DE&I Alliance.
• We piloted training in the Americas to help
managers create psychological safety at work
to help our people feel confident to bring their
whole selves to work. This training will be rolled
out across the business in 2024, together with
mandatory training on unconscious bias and
inclusion for all SIG leaders.
• We raised awareness of DE&I issues through
cultural days and other events, including local
talks on topics such as imposter syndrome
and wellbeing on International Women’s Day
and a global webinar on allyship to support the
LGBTQIA+ community on Pride Day.
• We established employee resource groups
to help people with shared characteristics
or experiences connect – including groups for
parents, new mothers, and alumni of our
Women Acceleration program.
•
In our 2023 employee survey, 85% of our people
agreed SIG creates an inclusive and diverse
work environment where they feel respected,
free from discrimination, and have equal access
to opportunities – eight points above the
industry benchmark.2
Developing talent
• More people got involved in our global
mentoring program, with a total of 75 mentors
and 70 mentees by the end of 2023. We also
launched a reverse mentoring pilot with 12
senior leaders being mentored by juniors on
specific topics. We continued to offer coaching
at various levels globally, with support from
external providers such as Bettercoach.
• Leadership development programs this year
included:
• Our Transformational Leadership Program,
which analyzes the approach of each leader
and their team to help them work together to
take their performance to the next level. The
first cohort of 75 employees completed the
one-year global program, including face-to-
face workshops with our leadership teams,
and a further 650 have enrolled as part of a
wider rollout.
• Our Operations Leaders Development
Program, which includes training and
workshops on leadership and functional
topics to help operations leaders prepare
for higher management operations roles.
In 2023, 16 people participated.
• Our New Leaders Development Program,
which provides workshops and coaching
to help people who are leaders for the first
time build management and leadership skills.
In 2023, 28 newly appointed leaders
took part.
• Leading with Presence: Storytelling, a
program to help leaders build skills to deliver
impactful presentations, create inspirational
visions and narratives, and enhance their
presence when presenting at executive
meetings. We piloted the program with
16 leaders in 2023 and plan to roll it out
globally in 2024.
1
2
Includes GEB, senior and middle management roles.
Industry benchmark defined as norms for manufacturing
companies participating in the Willis Towers Watson employee
engagement survey.
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Responsible culture continued
Our people continued
• We continued to offer a wide range of training
and development resources, including:
Employee satisfaction
• We were again recognized externally for our
industry benchmark.2 Our employee surveys are
now run annually (previously every two years).
efforts on employee satisfaction this year. SIG
received Great Place to Work™ certification –
the global benchmark for outstanding
employee experience based on surveys of
employees – in South America and Mexico.
Local SIG entities also received recognition in
Brazil, China, and Thailand.
• Nearly 7,200 (80%) of our people participated
in our global employee survey this year.
Engagement was strong at 85%, up from 83%
last year and two points above the 2023
• SIG outperformed the industry benchmark2 by
between two and nine points in all 11 categories
– most significantly in relation to learning and
development, DE&I, retention, and corporate
responsibility (including on social and
environmental questions, see Engaging our people
on sustainability
performance in all categories compared with
our last survey in 2022, most notably on reward
and recognition, learning and development, and
survey follow-up.
). We also strengthened
• Survey feedback helped us identify several
key areas of focus for the coming year,
including: ensuring people have the necessary
work equipment and resources for exceptional
performance; enhancing physical working
conditions; increasing recommendations for
SIG as a great place to work; and further
emphasis on non-monetary recognition.
We shared the survey results with managers
and employees at global and local levels,
and created action plans to address
specific concerns.
•
In 2023, 62% of employees felt significant
actions had been taken to address priorities
identified in the previous survey (up from 60%
in 2022). These focused on initiatives to
empower leaders, better manage wellbeing and
workload, and improve reward and recognition.
Average hours of training3
Employee category
Male
Female
Management
Non-management
Total
2020
19.4
19.5
26.3
18.4
19.4
2021
20.2
21.7
24.8
19.9
20.5
2022
2023
• Our voluntary turnover rate remained low at
5.6% in 2023, down from 6.6% in 2022.3
21.0
20.6
31.9
19.3
20.9
18.7
16.5
25.7
23.2
23.6
Employee survey results related to our people commitments
Comparison
with 2023
industry
Employee category
20204
2022
2023
benchmark2
Sustainable engagement
score
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%
–
83%
83%
85%
85%
63%
58%
63%
61%
60%5
62%
+2
+8
-1
+2
1 Excludes employees in our bag-in-box and spouted pouch
2
business, who will be integrated into our training data
from 2024.
Industry benchmark defined as norms for manufacturing
companies participating in the Willis Towers Watson employee
engagement survey.
3 Excludes employees in our bag-in-box and spouted pouch
business.
4 Scores were unusually high in 2020 due to the exceptional
circumstances at the start of the COVID-19 pandemic.
5 Excludes employees from parts of the business not included
in our previous survey: the Middle East and Africa region, which
SIG took full ownership of in 2021, and Scholle IPN and the Asia
business acquired from Evergreen that joined SIG in 2022.
• Our new SIG Academy – a refreshed digital
platform that provides online training, live
webinars, and face-to-face sessions to keep
employees informed, including a sales
module for those in customer-facing roles
and a new interactive module on
sustainability.
• The Bookboon e-library – an on-demand
learning service used by more than 1,420
people this year to access over 7,700 units
of content, including eBooks, audio learning,
and virtual classes.
• SPEEX – an online language learning
platform used by 33 employees to access
language learning.
• A new competency framework and
accompanying training that clarifies
expectations on the knowledge, skills, and
behaviors required from employees to
perform effectively in their role.
• Overall, we provided 23.6 hours of training per
employee in 2023, an increase from 20.9 in
2022 but falling just short of the pre-pandemic
industry benchmark of 24.0 hours.1
• We provided regular performance and career
development reviews to 61% of employees.
• Around 40 employees got the opportunity to
work for SIG in another country, enhancing
opportunities for professional and personal
development, and supporting cultural diversity
and innovation (see case study
).
• 75% of employees responding to our 2023
survey agreed they are very satisfied with
learning and development opportunities,
nine points above the industry benchmark.2
We outperformed the
industry benchmark in all
11 categories in our 2023
employee survey.
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Celebrating 170 years of SIG
To mark SIG’s 170th anniversary in
June 2023, we invited our people to
explore SIG’s past, present, and future
through a global quiz and local events
around the world to bring to life SIG’s
vision for better.
We created an online social wall for
employees to share their stories and photos
of team get-togethers. Employees also took
part in a fitness challenge, clocking up
71 million steps over three months.
Responsible culture continued
Our people continued
Reward and recognition
•
In line with our five-year fair pay roadmap, we
continued to review pay and benefits to ensure
they remain competitive within each local
market. We also conducted an in-depth review
of two markets this year to assess fair pay,
gender pay gap, and living wages. We will use
the findings to identify and implement any
remediation measures needed, and further
develop and strengthen our fair pay approach
across the Group.
• We expanded the SIG Shine Awards to provide
further non-monetary recognition this year.
In 2023, we recognized individuals and teams
from across the business in seven categories
– including leader, team, and plant of the year –
with awards presented by our CEO and GEB
members at a virtual townhall meeting. Similar
awards have been launched at a regional level
and we have established several initiatives that
enable colleagues to recognize each other for
outstanding efforts.
• Our employee survey indicated we made
good progress on non-monetary reward and
recognition, with 63% agreeing that we make
adequate use of recognition and rewards other
than money to encourage good performance.
While the score for this question increased from
58% last year, it is still one point below the
industry benchmark1 and we will continue to
focus on non-monetary recognition programs
in 2024.
Engaging employees
• We communicated regularly via one-to-one
and townhall meetings to keep employees
informed about our plans and the integration
of the businesses we acquired in 2022. Local
leaders played a pivotal role in consulting with
employees to gather feedback, and give
them the opportunity to voice questions
and concerns.
• We have focused on improving our
organizational structure, informed by
management and employee input, to enhance
efficiency and collaboration within teams,
and take full advantage of our product
portfolio and global footprint.
• We launched a new internal news app – known
as the SIGer app – to foster a sense of
community across SIG, and help colleagues
in different parts of the business share their
stories and learn from each other. By the end
of 2023, more than 7,100 (68%) of our
employees were active users and the app had
clocked up over 441,200 engagements with
news stories, around 20,400 likes and reactions,
and more than 1,700 comments.
• We hosted activities throughout the year to
unite and engage employees across the
business, including celebrations to mark
SIG’s 170th anniversary (see right) and our
global SIG Future+ Day (see Communities
).
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee engagement
survey.
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Responsible culture continued
Our people continued
Our workforce in 2023
Asia
Pacific Americas
Europe
India,
Middle
East and
Africa
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
2,814
2,105
709
1,913
1,507
406
180
1,419
314
1,894
1,506
388
19
1
18
901
598
303
0
2,402
1,643
759
2,318
1,603
715
560
1,352
406
2,312
1,601
711
6
2
4
84
40
44
29
3,393
2,743
650
3,135
2,524
611
394
1,449
1,292
2,890
2,373
517
245
151
94
258
219
39
141
693
626
67
690
624
66
138
487
65
690
624
66
0
0
0
3
2
1
0
Total
9,302
7,117
2,185
8,056
6,258
1,798
1,272
4,707
2,077
7,786
6,104
1,682
270
154
116
1,246
859
387
170
%
77
23
78
22
16
58
26
78
22
57
43
69
31
14
Governance bodies by age group in 2023
Board of Directors
Group Executive Board
Aged above 50 – 8
89%
Aged 31 to 50 – 1
Aged up to 30 – 0
11%
0%
Aged above 50 – 5
Aged 31 to 50 – 5
Aged up to 30 – 0
50%
50%
0%
Aged above 50 – 8 (89%)
Aged 31 to 50 – 1 (11%)
Aged up to 30 – 0 (0%)
Aged above 60 – 5 (50%)
Aged 31 to 50 – 5 (50%)
Aged up to 30– 0 (0%)
Our workforce in 2023 continued
Asia
Pacific Americas
Europe
India,
Middle
East and
Africa
80
56
24
32
43
5
5%
4%
7%
20%
3%
2%
228
171
57
96
124
8
23%
23%
23%
33%
20%
12%
151
93
58
57
81
13
6%
4%
12%
17%
7%
1%
88
75
13
48
38
2
16%
15%
23%
52%
9%
4%
Total
547
395 (72%)
152 (28%)
233 (43%)
286 (52%)
28 (5%)
9%
8%
13%
27%
8%
2%
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
Employee turnover in 2023
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
18%
6%
320
62
216
42
219
101
19%
7%
184
79
94
11
113
71
11%
3%
286
116
113
57
217
69
India,
Middle
East and
Africa
15%
12%
86
27
51
8
68
18
Total
15%
6%
876
284 (32%)
474 (54%)
118 (14%)
617 (70%)
259 (30%)
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Responsible culture continued
Health, safety, and wellbeing
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 behaviors at
work, we can also have a wider positive
impact when they take the same safe
behaviors 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.
Progress in 2023
We have continued to prioritize integration of
the businesses we acquired in 2022 into our
established governance and management
systems, including making regional leaders
responsible for environment, health and safety
(EHS) across our businesses in each region,
increasing focus on behavior-based safety at
more plants, and working towards ISO 45001
certification across the Group. Regular global
awareness sessions emphasized our continued
support for wider health and wellbeing.
Read on for more on
Health, safety, and wellbeing
Or go to
Communities
Keeping the conversation
going on safety
Safety is one of SIG’s core values and it is
fundamental to everything we do. Most of
our biggest risks are at our production
plants. We have introduced a weekly Safety
Flash to raise awareness of these risks –
and how to avoid them – among production
teams globally.
Each Safety Flash covers a specific topic
with a simple overview of why it matters,
associated risks, safe behaviors to mitigate
the risks, and steps everyone can take to
promote safe behaviors. We started out by
covering key safety risks that are the main
causes of incidents across the business:
handling cutters and knives; slips, trips, and
falls; using moving and rotating equipment;
and forklift truck safety.
Plant supervisors, team leaders, and shift
managers use each Safety Flash to stimulate
lively discussions during team meetings.
Key messages are then reinforced through
posters at our plants.
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
Golden Rule
Intervene to stop
work if conditions
or behaviors
are unsafe.
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Responsible culture continued
Health, safety, and wellbeing continued
Our commitment
We strive to prevent
work-related incidents and
illnesses, manage risks,
empower employees to adopt
safe behaviors, and support
health and wellbeing.
Managing risks
Robust health and safety management systems
promote continuous improvement. These are
certified to ISO 45001 standards at all production
plants in our aseptic carton business and we are
working towards certification across SIG Group.
We conduct annual risk assessments at each site,
and we are committed to monitoring incidents
and near misses, systematically analyzing their
root causes and targeting improvements through
local corrective action plans. We also recognize
sites that have achieved exceptionally strong
safety performance through our Safety
Awards scheme.
Empowering employees
Everyone at SIG is trained on health and safety,
including our Life Saving Rules targeting the
biggest risks to our people. Training for each
employee covers 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 empower our people to provide input and
constructive feedback through our focus on safe
behavior. Plants where our behavior-based safety
program is established must ensure that at least
15% of employees have completed training on
behavior-based safety – with some sites targeting
100% – and we track progress as part of our
monthly health and safety metrics.
Employees also contribute to our health and
safety steering committees. These include plant
management and employee representatives,
as well as other participants such as local EHS
managers, people and culture teams, works
council representatives, and medical doctors.
Supporting health and wellbeing
We are committed to supporting the health
and wellbeing of our employees. We take a
holistic approach that encompasses physical,
mental, financial, and social wellbeing to enable
our employees to lead fuller, more productive
lives both at work and at home.
Many of our larger sites offer access to medical
professionals, health insurance, health check-ups,
and fitness programs to support physical health.
We continue to extend our behavior-based model
to occupational health issues, such as
ergonomics, and we provide ergonomic
workstations and training. We also recognize that
musculoskeletal health issues, such as back
problems, can be an indicator of wider health and
wellbeing issues.
Our targets
2025 target
Zero recordable cases1
To enhance wellbeing, we offer support to help
our people manage workload, reduce stress, and
achieve a better work-life balance through flexible
working arrangements, regular wellness
awareness campaigns, mental health training,
and counselling. We hold employee focus groups
and include questions on wellbeing in our annual
employee survey to inform our efforts.
Progress tracker
More work to do
Achieve a lost-time case2 rate in the top 20% of industry peers3
Target discontinued4
Define a holistic strategy and roadmap to foster wellbeing at SIG
More work to do
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.
4 We have discontinued this target to focus on more meaningful performance drivers, with a strong focus on integration of the
bag-in-box, spouted pouch, and chilled carton businesses we acquired in 2022 into our established health and safety systems,
procedures, and reporting.
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Responsible culture continued
Health, safety, and wellbeing continued
Performance in 2023
Total recordable cases1
Total recordable case rate4
Recordable injuries by type
in 2023 (%)
Reporting on safety incidents
•
In 2023, there were 65 recordable cases
across SIG Group (down from 68 in 2022),
including 40 cases leading to lost working
time, 13 requiring medical treatment, and
11 resulting in restricted work. The total
recordable case rate for SIG Group decreased
by 7% to 0.80 recordable cases per 200,000
hours worked. Nine of our sites achieved zero
recordable cases and 16 sites achieved zero
lost-time cases in 2023. We maintained our
record of zero fatalities across SIG Group.
• The lost-time case rate for SIG Group
increased to 0.49 lost-time cases per 200,000
hours worked in 2023 and the rate of severity5
of lost-time cases was 0.51 (compared with
0.43 in 2022). There were also ten lost-time
cases among contractors working at our
production sites this year and the lost-time
injury frequency rate for contractors was
0.75 per 200,000 hours worked.
SIG Group
Aseptic carton
business
Bag-in-box,
spouted pouch,
and chilled
carton businesses
(acquired in 2022)
2023
2022
2023
2022
2021
2020
2023
2022
33
33
31
33
32
35
SIG Group
65
68
Aseptic carton
business
Bag-in-box,
spouted pouch,
and chilled
carton businesses
(acquired in 2022)
0.80
0.86
0.60
0.62
0.60
0.83
2023
2022
2023
2022
2021
2020
2023
2022
Lost-time cases2
Lost-time case rate3
SIG Group
Aseptic carton
business
2023
2022
2023
2022
2021
21
18
17
2020
13
Bag-in-box,
spouted pouch,
and chilled
carton businesses
(acquired in 2022)
2023
19
2022
10
40
SIG Group
28
Aseptic carton
business
Bag-in-box,
spouted pouch,
and chilled
carton businesses
(acquired in 2022)
2023
2022
2023
2022
2021
2020
2023
2022
0.49
0.36
0.38
0.35
0.33
0.31
0.38
1.24
1.32
0.73
Hand or finger – 44%
Head – 7%
Foot or leg – 10%
Back/lower back – 19%
Others – 20%
Recordable injuries by cause
in 2023 (%)
Equipment handling – 22%
Cut – 28%
Slip, trip or fall – 18%
Moving rotating equipment – 8%
Vehicle safety – 7%
Work at height – 5%
Other – 12%
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 Lost-time cases per 200,000 hours worked.
4 Total recordable cases per 200,000 hours worked.
5 Severity rate based on number of days away from work x 1,000 / 1,000,000.
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Responsible culture continued
Health, safety, and wellbeing continued
Managing health and safety
• We maintained global certification to the
ISO 45001 standard for health and safety
management across our aseptic carton
production plants and aim to extend it to all our
production plants in 2024.
• All our production plants, including all our newly
acquired production sites, completed SEDEX
SMETA audits – which include health and safety
as one of the four pillars – in the 2023
two-yearly cycle.1
• We continued to integrate the new businesses
into our health and safety systems this year.
Building on last year’s efforts to train new
colleagues on the Life Saving Rules and how
to create a safety culture, we focused on
aligning incident reporting based on our global
standards and ensuring every site has an EHS
manager to put our approach into practice at
a local level. Our Group EHS team conducted
site assessments against SIG standards at all
new plants and used the findings, together with
the results of the SEDEX SMETA audits, to
inform the development of improvement plans.
• To support best practice sharing across the
business, we made regional leaders responsible
for EHS for all SIG businesses in their region and
created a network of experienced EHS
managers to learn from each other, align our
health and safety approach across the Group,
and drive improvements in performance.
• Our plant in Rayong (Thailand) was recognized
by the Thailand Ministry of Labor for excellence
in its management of occupational health and
safety for a second year.
Creating a “take-care” culture
• We introduced a new global weekly Safety
Flash to get production teams across SIG
Group talking about important safety topics
on an ongoing basis (see case study Keeping the
conversation going on safety
).
• We continued to encourage employees to
observe and provide constructive feedback to
correct unsafe behaviors. At our aseptic carton
production plants, 23% of employees reported
more than 39,100 observations in 2023 (up from
16% of employees reporting around
Incentivizing safe behavior
at our US production plant
in Merced, USA
We introduced a new system to incentivize
safe behavior at our bag-in-box and spouted
pouch film production plant in Merced (USA)
in 2023 and 94% of the plant’s employees
got involved.
Everyone at the site is encouraged to take
responsibility for their safety and the safety of
those around them by completing training,
participating in audits, and conducting a safety
walk at least once a month.
The aim is to support observation and
reporting of unsafe practices and processes,
and encourage adoption of safe behaviors.
• Local initiatives to target specific health
and safety risks include mobile platforms
to enhance safety when working at height in
Riyadh (Saudi Arabia), an enhanced focus
on electrical safety in Vinhedo (Brazil), and
an innovative docking system for loading
trucks in Suzhou (China).
• Our employee–management health and safety
committees continued to meet regularly to
review standards and improvement plans.
This year, they discussed topics such as
incident tracking, behavior-based observations,
and progress of safety projects.
• 90% of employees participating in our global
engagement survey this year agreed SIG does
a good job of ensuring workers’ health and
safety wherever we operate, up two points
from last year and seven points above the
2023 industry benchmark.2
35,000 observations in 2022), enabling us
to remove more than 4,000 barriers to safe
behavior. We also began extending our focus
on safe behavior to our newly acquired plants,
including at our plant in Merced (USA)
(see case study below left).
• Following a successful pilot in Linnich
(Germany), we have extended training on
advanced behavior-based safety to our aseptic
carton production plants in Wittenberg
(Germany) and Saalfelden (Austria), and
appointed safety observers at each site.
The advanced process aims to establish a list
of specific behaviors for each department at
each site to focus on, based on previous
incidents and near misses, and set targets for
safe behavior – emphasizing positive feedback
and recognition for safe work practices rather
than penalties for risky behavior.
• We increased reporting of near misses this year,
which supports our efforts to prevent incidents.
Our aseptic carton business recorded 395 near
misses in 2023 (compared with 302 in 2022) and
the frequency rate of near misses per 200,000
working hours increased to 7.2 (compared with
5.9 in 2022). A total of 619 near misses were
recorded across SIG Group in 2023, with a
frequency rate of 7.7 per 200,000
working hours.
1
2
Includes one audit within the 2023 cycle that was completed in early January 2024.
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
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Responsible culture continued
Health, safety, and wellbeing continued
Supporting health and wellbeing
• Global awareness campaigns, such as our
monthly Wellbeing Wednesday, reinforced our
holistic approach to physical, mental, financial,
and social wellbeing. They included a range of
discussions and activities to encourage physical
activity, promote self-care, and help employees
connect socially – from free yoga classes to
encouraging people to discuss what creates a
healthy workplace over a coffee. We also ran a
step challenge to celebrate SIG’s 170th birthday,
with employees collectively logging 71 million
steps over three months.
• We offered access to resources on wellbeing
topics, such as stress management,
mindfulness, and work–life balance, through
the Bookboon e-library. We also raised
awareness of mental wellbeing and provided
related guidance on our internal social platform,
including on World Mental Health Day and
during Stress Awareness Week.
• We implemented our guidelines on ways of
working for office workers, and developed new
guidelines on ways of working specifically for
employees working in production roles and in
the field as service engineers. These set out
clear guidance and tangible steps to support
wellbeing and work–life balance. We also
continued to support employees in balancing
work and family commitments through flexible
working options in certain regions, including
compressed work weeks and hybrid working
(see quotes), as well as offering training on
effective time management.
• We rolled out a toolkit for managers on how to
create a healthy workplace to support their
teams, as well as launching a new series of
podcasts on our SIGer internal social platform
in which senior leaders talk about leadership
and wellbeing. In 2024, we will integrate
psychological safety into our transformational
leadership training to further reinforce our
leaders’ focus on wellbeing.
• Local health and wellbeing initiatives this year
included health check-ups, talks on emotional
health, fitness memberships, an anti-smoking
campaign, ergonomics training, and sports
activities.
• Our 2023 global engagement survey results
indicated employees feel positively about
their work–life balance, with 84% agreeing
they have flexibility to balance work and
personal responsibilities. The survey also
identified physical working conditions as
an area we will aim to improve next year –
78% agreed that physical working conditions
(such as facilities, hygiene, and temperature)
are good, two points below the industry
benchmark.1
• Our health rate among full-time employees
was 97.7%2 in 2023 – up from 95.6% in 2022.
Hybrid working has given me balance
between my personal and professional life.
Now when I finish work, I can spend time with
my daughter, go to the gym, or go for a walk
instead of spending an hour and a half sitting in
traffic. When I go to the office, I focus on being
with the team, interacting with people I don’t
have daily contact with, and solving issues that
require meetings.
Juliana Camargo
Product and Category Specialist, Brazil
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
2 Based on a sickness absence rate of 2.3% (sick days per total days worked). Sickness absence and health rates are based
on available data covering more than 90% of employees.
Apart from work–life balance, hybrid working
to me fosters a certain amount of creativity and
space to structure my approach to challenging
tasks. I like the autonomy it provides as it requires
you to take more ownership in both your
professional and personal space.
James George
Market Insight Manager, India, Middle East
and Africa
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Responsible culture continued
Communities
Communities
We engage and support
our communities to help
them thrive.
Progress in 2023
The SIG Foundation1 launched a new Recycle for
Good initiative in Indonesia this year and engaged
with NGOs to scale up its flagship Cartons for
Good program.
We encouraged employees to make a positive
contribution to their communities and the
environment through our global SIG Future+ Day
and local community engagement programs
throughout the year.
Supporting local communities where we
operate helps us strengthen our business
by being a good neighbor and an employer
of choice, enhancing our corporate image,
and exploring new models and markets.
Read on for more on
Communities
Or go to
Governance and ethics
New model developed to
scale up Cartons for Good
Recycle for Good
community recycling
program launched in
Indonesia
1 Formally known as the SIG Way Beyond
Good Foundation.
Uniting our people to support communities
SIG Future+ Day on 6 September 2023 united employees around the world
in a global engagement day to do good together.
We encouraged everyone across the business to do something that contributes
a positive impact to people or the planet, no matter how big or small – either individually
or through local team initiatives run by our Future+ Ambassadors.
Germany
Romania
Brazil
Taiwan
Thailand
Australia
Australia
We built and distributed
nest boxes for local birds
to rest, roost, and shelter.
Brazil
We planted native
species to preserve
biodiversity in the
Araucaria forest.
Germany
We organized a recycling
fair with a quiz to raise
awareness about waste
separation.
Romania
We ran a garage sale to
raise funds for local high
school students entering
a global technology
competition.
Taiwan
We installed plants in
eco-pots made with
recycled materials at
our office.
Thailand
We ran activities at a local
school to educate children
about recycling, including
making hats from used
beverage cartons.
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Responsible culture continued
Communities continued
Our commitment
Performance in 2023
Our targets
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
impact for people and the planet.
We channel support through the SIG Foundation,
which focuses on projects that strengthen civil
society and create positive impacts for the
environment.
We also mobilize our people to support their
communities through local initiatives led by
our network of Future+ Ambassadors, with
support from employee volunteers.
Supporting communities through
the SIG Foundation
• We contributed €295,000 in grants in 2023
to support the work of the SIG Foundation,
including its flagship Cartons for Good
program and new Recycle for Good program
(see next page).
• The SIG Foundation ran a global fundraising
campaign to encourage employee donations
to support communities affected by the
earthquake in Turkey and Syria in
February 2023. We also partnered with our
dairy customer Güney to provide the Turkish
Red Crescent with a truckload of milk,
packed in cartons donated by SIG.
• Our annual corporate festive donation
supported improved learning conditions
at a school in a very hot region close to the
Marismas Nacionales Biosphere Reserve in
Mexico, facilitated by WWF Mexico. The funds,
directed via the SIG foundation, are being used
to provide lighting and fans, and install battery
storage for renewable electricity generated by
the solar panels that we funded last year.
2025 target
Create self-sustaining, scalable models for the SIG Foundation’s
Cartons for Good project1
Progress tracker
More work to do
Scale up and expand our community recycling model
On track
Increase the impact of community engagement programs by 50%
(from 2020)
More work to do
SIG’s charitable
contributions 2023
Total
€1,257,000
Cash contributions – €581,295
Time: employee volunteering during
working hours – €364,173
In-kind giving: donation, projects or
services, projects or partnerships – €24,232
Management overheads – €287,300
Mobilizing our people to contribute
to positive change
• We held a SIG Future+ global engagement day
to inspire employees to have a positive impact
on people and the planet – and help us engage
our people on sustainability (see previous page).
• Our Future+ Ambassadors launched a
campaign to promote conservation and raise
awareness of biodiversity among our people
and communities that will continue into 2024,
with activities focusing on ecosystems
enrichment, clean-ups, restoration, and
education.
• Employees also took part in other community
engagement initiatives throughout the year,
including beach clean ups in the United Arab
Emirates, a school renovation project in
Romania, a blood donation drive in Germany,
food donations in Egypt, and a food festival in
Switzerland to celebrate SIG’s 170th anniversary.
• Overall, community engagement programs run
by employees achieved a total impact score of
21,997 during 2023, up 29% from 2020.2
1 Target wording shortened by removing the full name of the SIG Way Beyond Good Foundation.
2
Impact score is derived through an assessment of our employee-led community engagement projects – by the employees and
communities involved in them – based on who benefits from each project, the type of impact it has and its potential to contribute
to the United Nations Sustainable Development Goals.
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Responsible culture continued
Communities continued
Channeling support through the SIG Foundation
The SIG Foundation’s purpose is to identify, drive, and promote activities and projects
that strengthen civil society and create positive impacts for the environment.
We have provided over €1.7 million in grants to support the SIG Foundation since it was
founded in 2018. Its two key programs deliver social and environmental benefits through
innovative models for preventing food loss and recycling packaging waste:
Cartons for Good – the SIG Foundation’s
flagship program helps prevent food loss
and malnutrition by using SIG’s filling expertise
and packs to turn surplus crops into nutritious
meals for people in need. The pilot in
Bangladesh has turned over 15 metric tons
of food loss into more than 53,000 nutritious
school meals for underprivileged children since
it began in 2019. The Foundation won the SAVE
FOOD Project award for Cartons for Good in
2023 and has agreed a new partnership to
expand the impact of the program with a
similar model in Egypt.
See Food+
Recycle for Good – the SIG Foundation
launched a new program in Indonesia this year,
building on the community recycling model SIG
has established in Brazil. The program aims to
incentivize recycling and provide social support
for people in low-income communities through
a collection point that offers food and other
rewards in exchange for recyclable waste –
with a strong focus on used beverage cartons
and polymer pouches. By the end of 2023,
more than 770 people had already collected
11.7 metric tons of waste in exchange for
rewards.
See Resource+
Find out more about
the SIG Foundation
on our website.
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Sustainability continued
Responsible culture: Governance and ethics
Governance
and ethics
We expect all our
employees and everyone
working with us to act
with integrity, always.
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.
Progress in 2023
Approximately 99% of employees completed an
annual certification on the SIG Code of Conduct
in 2023 and 95% completed additional in-person
or virtual training on the Code.
We continued to provide further training on
specific compliance topics, such as anti-bribery,
anti-corruption, and anti-trust, for those in
high-risk roles. We encouraged people to speak
up by raising awareness of our Integrity &
Compliance Hotline, and extended access to
the hotline to external stakeholders. We also
reinforced a culture of security awareness to
help employees remain vigilant.
Read on for more on
Governance and ethics
Or go to
Sustainability KPIs
Integrity &
Compliance Hotline
We encourage people to speak up if they
have any questions or concerns, without fear
of retaliation. Our Integrity & Compliance
Hotline is one of the channels available to
report an issue or concern.
The Hotline is available to all SIG employees,
as well as to external stakeholders such as
investors, suppliers, customers, or other
business partners. It is also available to
anyone who wants to raise a concern
regarding ethical conduct, human rights
or the environment related to our own
operations or our suppliers’ business
activities. Reports can be submitted
anonymously (where permitted by local
legislation).
Details on the hotline and how to report a
concern can be found on our website below:
Hotline
Embedding a culture of security awareness
With cyberattacks on the rise globally,
building employees’ awareness of IT security
and safeguarding personal data is increasingly
important.
This year, we built on our existing mandatory
security training to focus on behaviors through
an ongoing awareness campaign. We also
introduced quarterly simulated phishing attacks
to help employees spot common phishing tactics,
together with guidance explaining how to report
any suspicious emails they may encounter.
We provided practical tips every month, ran
gamified security challenges every quarter,
and promoted awareness on International Data
Privacy Day and throughout Cybersecurity
Awareness Month. Next, we will introduce
monthly bite-sized refresher training on key
topics. Annual assessments and benchmarking
exercises help us measure progress in creating
a culture of security awareness.
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Sustainability continued
Responsible culture: Governance and ethics continued
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. These ethical principles include:
• Ethical and legal behavior.
• 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 is approved by our
Board of Directors and detailed by policies and
guidelines on specific topics. Available in 19
languages, it sets out our expectations on topics
such as anti-bribery and anti-corruption,
avoidance of and dealing with 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, detailed in 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 they are required to complete
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, our people and
culture teams, or global and regional Legal and
Compliance Officers. Employees, supplier
workers, and third parties can also report
concerns via our confidential Integrity &
Compliance Hotline (anonymously if they wish,
where permitted by local legislation).
We investigate all concerns and take appropriate
action, including, but not limited to, disciplinary
measures.
Our targets
2025 target
Progress tracker
Mandatory annual Code
of Conduct training for
all employees
On track
Maintaining ethical and compliance
standards
• All our production plants, including all our newly
acquired production sites, completed SEDEX
SMETA audits – which include business ethics
as one of the four pillars – in the 2023
two-yearly cycle.1
Focusing on data security and privacy
• We continued to implement our security
acceleration program to bolster our
preparedness and response to cyber threats,
including upgrading security software,
strengthening our incident response process,
and reinforcing a culture of security awareness
(see case study on the previous page).
• 97% of our employees completed our refreshed
data security and privacy training. We also
rolled out training on how to classify documents
to around 4,000 employees in relevant roles
(approximately 43% of all employees).
• We maintained certification to the international
ISO 27001 standard on information security
management for SIG IT in China, Germany,
and Romania.
Performance in 2023
Training our people and raising
awareness
• Approximately 99% of employees completed
an annual certification on the SIG Code of
Conduct this year, and approximately 95%
completed additional in-person or virtual
training on the Code of Conduct.
• We provided additional in-depth training on
specific topics for those working in high-risk
roles. This included further training for sales,
procurement, and finance teams on anti-
bribery, anti-corruption, and anti-trust, as well
as further training for people and culture teams
on data privacy.
• We continued to reinforce key messages on
ethics and compliance topics through ongoing
awareness activities. This included running a
campaign to promote our Integrity &
Compliance Hotline (see highlight on the
previous page) and creating a dedicated
compliance page on our SIGer internal social
app, as well as regular articles, emails, and
posters.
Investigating and acting on concerns
• Concerns reported via our Integrity &
Compliance Hotline and other channels in
2023 mainly related to workplace and
employee matters.
• We investigated all reported concerns and
took disciplinary action, including reprimands
and dismissals, where appropriate.
• No cases of corruption were substantiated
in 2023.
1
Includes one audit within the 2023 cycle that was completed in early January 2024.
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Sustainability continued
Sustainability key performance indicators
Sustainability
key
performance
indicators
The tables on this and the following pages
provide a summary of the key performance
indicators we use to measure progress
towards our sustainability targets and
performance on our most material issues.
Scope of data
Our sustainability reporting covers the 2023
calendar year. Unless otherwise stated, data
covers all operations fully owned by SIG
globally, except for our production plant in
Baie-d’Urfé (which closed in 2023) and our
production plant in Voronezh.
Assurance
In the tables on this and the following pages,
data for 2021, 2022 and 2023 has been
assured with limited assurance by
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft, Germany,
except where otherwise noted. See Assurance
. See previous years’ reports for
statement
details of 2021 and 2022 assured data and
assurance scope. Some data for previous
years has been restated in this report in line
with our restatement policy and changes to
our business to enable a better
understanding of performance trends on a
like-for-like basis. See footnotes for
clarification.
Metric
Climate+
Material issue: Climate change
2020
2021
2022
2023
Total Scope 1 and 2 greenhouse gas emissions (thousand metric tons CO2 equivalent)
100.42, 5
75.92, 5
73.62, 5
Total Scope 3 greenhouse gas emissions (million metric tons CO2 equivalent)1
Scope 3 greenhouse gas emissions intensity (grams CO2 equivalent/liter of
food packed)1
Scope 1, 2, and 3 greenhouse gas emissions intensity (grams CO2 equivalent/liter of
food packed)1
1.92
682
722
1.92
662
682
2.02
652
672
20.9
1.9
64
65
Scope 1 greenhouse gas emissions for production (thousand metric tons CO2
equivalent)
31.42, 5
30.12, 5
26.62, 5
20.9
Scope 1 greenhouse gas emissions for our aseptic carton production (thousand
metric tons CO2 equivalent)
31.1
29.8
25.1
19.5
Scope 2 greenhouse gas emissions for production (market based) (thousand
metric tons CO2 equivalent)
69.12, 5
45.82, 5
47.12, 5
Scope 2 greenhouse gas emissions for our aseptic carton production (market
based) (thousand metric tons CO2 equivalent)
Scope 1 and 2 greenhouse gas emissions intensity for production (aseptic carton
sleeves only) (metric tons CO2 equivalent/million m2 of sleeves produced)
22.9
17
0
15
0
12
Energy used for production from renewable sources (Power Purchase Agreements
or Energy Attribute Certificates) or compensated using Gold Standard CO2 offset (%)
1003
1003
1003
Electricity used for production from renewable sources (Power Purchase
Agreements or Energy Attribute Certificates) (%)
Operational energy use for our production (GWh)
1002, 3
3833
1002, 3
4023
1002, 3
3883
Energy intensity for production (aseptic carton sleeves only) (MWh/million m2 of
sleeves produced)
201
197
183
0
0
10
100
100
492
175
Forest+
Material issue: Biodiversity & forest ecosystems
SIG carton packs4 sold labeled with FSC™ logo (%)
973
983
993
94
1 Data includes our production plant in Baie-d’Urfé and our production plant in Voronezh. 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.
3 Aseptic carton business only.
4
5 Restatement based on changed emission factors 2023
Includes aseptic and chilled cartons.
2 Not assured.
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Sustainability continued
Sustainability key performance indicators continued
Metric
Resource+1
Material issue: Waste management & circular economy
SIG carton packaging7 that is designed for recycling2 (%)
SIG bag-in-box and spouted pouch packaging that is recycle-ready3 or for which we offer alternative recycle-ready bag-in-box and
spouted pouch solutions (%)
SIG packaging portfolio that is recycle-ready4 (%)
Waste rate for production (aseptic carton sleeves only) (grams of waste per m2 of packaging material)
Food+
Material issue: Product safety & integrity
2020
2021
2022
2023
1008
1008
1008
100
–
–
32
–
–
34
–
–
32
69
90
31
Significant carton7 product and service categories which health and safety impacts are assessed for improvement (%)
1008
1008
1008
1008
Significant bag-in-box and spouted pouch product and service categories for which health and safety impacts are assessed for
improvement (%)
Non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services in our
carton businesses7 (number of incidents)
Non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services in our
bag-in-box and spouted pouch business (number of incidents)
–
08
–
–
08
–
–
08
–
100
07
0
Additional strategic topic: Access to nutrition & hydration5
Nutritious food and beverage products6 brought to consumers in SIG packaging (billion liters)
11.27, 9
11.87, 9
12.17, 9
15.59
1 A KPI for the material issue of water is in development.
2 Our evaluation of recyclability of cartons is based on the relevant EN643 standard.
3 Our evaluation of recycle-readiness for bag-in-box and spouted pouch is in line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
4 Our evaluation of recyclability of cartons is based on the relevant EN643 standard and our evaluation of recycle-readiness for bag-in-box and spouted pouch is in line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
5 Additional strategic topic for our Food+ action area (not a material issue).
6 Defined by the independent Health Star Rating System as food and drinks that contribute to a balanced diet and lead to better health.
7
8 Aseptic carton business only.
9 Not assured.
Includes aseptic and chilled cartons.
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Sustainability continued
Sustainability key performance indicators continued
Metric
Sustainable innovation
Material issue: Innovation in products & services
Food packed with SIG Terra9 packaging materials (million liters)
Food packed in SIG Terra9 packaging materials (% of total liters packed in SIG packs)
SIG aseptic carton packs sold labeled with ASI logo (million packs)
Supply chain
Material issue: Responsible suppliers
New suppliers10 screened using social responsibility criteria (% of significant suppliers11 for our carton businesses)8
New suppliers10 screened using social responsibility criteria (% of significant suppliers11 for our bag-in-box and spouted pouch business)
Material issue: Sustainable raw materials
A-materials12 from certified sources for our cartons8 (% by volume)
A-materials12 from certified sources for all our packaging (% by volume)
Human rights
Material issue: Human rights3
2020
2021
2022
2023
457.27, 14
540.97, 14
613.56, 7, 14
1,544.2
3.17, 14
80.07
3.57, 14
577.0
3.47, 14
5.3
1,383.7
2,801.0
100
–
627, 14
–
100
–
7014
–
1001
–
7414
–
100
1002
7514
69
Plants completed SEDEX Members Ethical Trade Audit (of total number of plants)4
8 of 913
9 of 913
8 of 8
27 of 275
1 Excludes the chilled carton business acquired part way through 2022.
2
Integration of our bag-in-box and spouted pouch business into our Group procurement processes is ongoing. Data for 2023 includes the direct significant suppliers we have identified that provide raw materials for our bag-in-box and spouted pouch packs. We will work to add
further significant suppliers for our bag-in-box and spouted pouch business in future, including indirect suppliers providing secondary packaging and services.
Includes freedom of association, freely chosen labor, living standards, and protection of the child.
3
4 SEDEX audits are completed on a two-yearly cycle and plants are considered to hold completed status for the year following their last audit. We report the number of plants that have completed SEDEX audits, but SIG’s total number of SEDEX certifications is higher due to
multiple entities being audited at a single plant as well as additional SIG business entities undergoing SEDEX audits beyond our production plants.
Includes one audit within the 2023 cycle that was completed in early January 2024. The bag-in-box, spouted pouch, and chilled carton production plants we acquired in 2022 joined our scheduled two-yearly cycle of audits in 2023.
5
6 Data restated due to an error in reporting.
7 Not assured.
8
9 Formerly known as our SIGNATURE portfolio for aseptic carton solutions. From 2023, recycle-ready bag-in-box and spouted pouch solutions have also been added to the SIG Terra portfolio.
10 Includes suppliers that are new to SIG Group through our acquisitions in 2022.
11 Significant suppliers are those considered most significant to our business (excluding equipment 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
Includes aseptic and chilled cartons.
identified in the supply chain.
12 A-materials are the raw materials that go directly into our packs: paperboard, polymers, aluminum foil, ink, and solvents for aseptic cartons; paperboard, polymers, ink, and solvents for chilled cartons; and polymers and films for bag-in-box and spouted pouches. (SIG does not
manufacture or sell the cardboard box of our bag-in-box solutions.)
13 The Australia production site acquired in 2019 completed its first SEDEX audit in 2021 as part of our two-yearly audit cycle. The site ceased production in mid-2021.
14 Aseptic carton business only.
SIGAnnual Report 2023 117
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Sustainability continued
Sustainability key performance indicators continued
Metric
Our people
Material issue: Diversity, equity & inclusion
Women in leadership positions
Material issue: Employee satisfaction, development, and working environment
Sustainable engagement score (% favorable responses)
Training and development investment (average training hours/employee)
Health, safety, & wellbeing
Material issue: Health, safety, & wellbeing
Total recordable cases1 across SIG Group
Total recordable case rate (per 200,000 hours worked) across SIG Group
Lost-time cases2 across SIG Group
Lost-time case rate (per 200,000 hours worked) across SIG Group
Total recordable cases1 in our aseptic carton business
Total recordable case rate (per 200,000 hours worked) in our aseptic carton business
Lost-time cases2 in our aseptic carton business
Lost-time case rate (per 200,000 hours worked) in our aseptic carton business
Total recordable cases1 in our bag-in-box, spouted pouch, and chilled carton businesses
Total recordable case rate (per 200,000 hours worked) in our bag-in-box, spouted pouch, and chilled carton businesses
Lost-time cases2 in our bag-in-box, spouted pouch, and chilled carton businesses
Lost-time case rate (per 200,000 hours worked) in our bag-in-box, spouted pouch, and chilled carton businesses
2020
2021
2022
2023
18%3
20%
23%6
25%
874
19.44
–5
20.54
–
–
–
–
333
0.833
13
0.31
–
–
–
–
–
–
–
–
313
0.603
17
0.33
–
–
–
–
83
20.96
683
0.863
183
0.363
33
0.623
18
0.35
353
1.323
103
0.383
85
23.66
65
0.80
40
0.49
33
0.60
21
0.38
32
1.24
19
0.73
1 Total recordable cases include medical treatment and restricted work cases as well as lost-time cases.
2 A lost-time case is defined as absence for one or more shifts or loss of one or more working days.
3 Not assured.
4 Aseptic carton business only.
5 There was no employee survey in 2021 as it was previously run every two years.
6
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 in 2022.
SIGAnnual Report 2023 118
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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 ‘
in the sustainability report of SIG Group AG, Neuhausen am Rheinfall, Switzerland (hereinafter “the
Company”), for the period from 1 January to 31 December 2023 (hereinafter the “Report”). Our
engagement in this context relates solely to the disclosures denoted with the symbol ‘
‘
‘.
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.
Audit Firm’s Independence and Quality Management
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
Management 1 published by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany;
IDW): Requirements to quality management for audit firms (IDW Qualitätsmanagementstandard 1:
Anforderungen an das Qualitätsmanagement in der Wirtschaftsprüferpraxis – IDW QMS 1 (09.2022)),
which requires the audit firm to design, implement and operate a system of quality management that
complies with the applicable legal requirements and professional standards.
Practitioner’s Responsibility
Our responsibility is to express a limited assurance conclusion on the disclosures denoted with
‘
‘ 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 ‘
Report for the period from 1 January to 31 December 2023 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 the Company’s
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), Curitiba (Brazil), Suzhou
(China), Queretaro (Mexico), Merced (USA), Chilhowie (USA), Heieinde (Netherlands), Jellinghaus
(Netherlands), Santiago (Chile)
• 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 ‘
Company’s Report for the period from 1 January to 31 December 2023 have not been prepared, in all
material aspects, in accordance with the relevant GRI-Criteria.
‘ in the
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, 22 February 2024
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Hendrik Fink
Wirtschaftsprüfer
(German Public Auditor)
ppa. Christopher Hintze
Wirtschaftsprüfer
(German Public Auditor)
SIGAnnual Report 2023 Our
governance
In this section
120
121
122
140
Board of Directors
Group Executive Board
Corporate Governance Report
Letter from the Chair of the
Compensation Committee
141 Compensation Report
120
Strategic Report
Our Governance
Financials
Appendix
Contents
Board of Directors
Andreas Umbach
Chair of the Board
N
Read the CV
Matthias Währen
Florence Jeantet
Werner Bauer
Wah-Hui Chu
A C
Read the CV
Read the CV
A N
Read the CV
C N
Read the CV
Key to committee membership
N Nomination and Governance
Committee
A Audit and Risk Committee
C Compensation Committee
Chair of Committee
Mariel Hoch
Abdallah al Obeikan
Martine Snels
Laurens Last
A C
Read the CV
Read the CV
A N
Read the CV
Read the CV
BackContentsSIGAnnual Report 2023 121
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Financials
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Contents
Group Executive Board
Samuel Sigrist
Chief Executive Officer
Ann-Kristin Erkens
Chief Financial Officer
Ian Wood
Chief Supply Chain Officer
Suzanne Verzijden
Chief People and Culture Officer
Read the CV
Read the CV
Read the CV
Read the CV
José Matthijsse
President and General Manager,
Europe
Read the CV
Christoph Wegener
Chief Markets Officer
Read the CV
Angela Lu
President and General Manager,
Asia Pacific
Read the CV
Ricardo Rodriguez
President and General Manager,
Americas
Read the CV
Abdelghany Eladib
President and General Manager,
IMEA
Read the CV
Gavin Steiner
Chief Technical Officer
Read the CV
BackContentsSIGAnnual Report 2023 122
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Contents
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.
directly supervised by the Board of Directors and its Committees. The Organizational Regulations
can be accessed under https://www.sig.biz/investors/en/governance/organizational-regulations.
1.2 Significant shareholders
According to the disclosure notifications reported to the Company during 2023 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 or purchase positions for securities of the Company
as of 31 December 20233:
Unless expressly stated otherwise, this Corporate Governance Report presents the circumstances and
legal position as of the balance sheet date (31 December 2023).
1 Group structure and shareholders
1.1 Group structure
SIG Group AG, Neuhausen am Rheinfall (“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 capitalization of the Company amounted to CHF 7,397 million as of
31 December 2023.
Please see note 27 of the consolidated financial statements for the year ended 31 December 2023
for a comprehensive list of the Group’s subsidiaries and of its joint venture. 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 2023 is as
follows:
The Company’s board of directors (“Board of Directors” or “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. 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”).
Subject to Swiss law and in accordance with the Company’s articles of association (“Articles of
Association”) and the Company’s organizational regulations (“Organizational 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 Organizational Regulations2. The Group Executive
Board comprises ten members, specifically the CEO, the chief financial officer (“Chief Financial
Officer” or “CFO”), the chief supply chain officer (“Chief Supply Chain Officer” or “CSCO”), the chief
technology officer (“Chief Technology Officer” or “CTO”), the chief people and culture officer (“Chief
People and Culture Officer” or “CPCO”), the chief markets officer (“Chief Markets Officer” or “CMO”),
the president and general manager of Europe (“President and General Manager Europe”), the
president and general manager of Asia Pacific (“President and General Manager Asia Pacific”),
the president and general manager of Americas (“President and General Manager Americas”),
and the president and general manager of India, Middle East and Africa (“President and General
Manager IMEA”). For further information on the Group’s segments, please refer to note 7 of the
consolidated financial statements for the year ended 31 December 2023. The Group Executive Board is
Significant shareholders
% of voting rights4
Number of shares5
Haldor Foundation6
Laurens Last7
Fahad al Obeikan8
BlackRock, Inc. (mother company)
UBS Fund Management (Switzerland) AG
Swisscanto Fondsleitung AG
9.95%
9.6357%
4.9976%
5% / 0.24%9
3.18%
3.1255%
38,035,955
36,834,596
17,417,632
16,512,98910
10,176,211
10,549,237
Notifications made in 2023 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 2023, the Company held 39,985 treasury shares.
1.3 Cross-shareholdings
The Company has no cross-shareholdings exceeding 5% in any company outside the Group.
1 References to “SIG Group”, “Group” or “we” are to the Company and its consolidated subsidiaries.
2 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.
3 The number of shares shown here as well as the holding percentages are based on the last disclosure of sharehold-ings 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 notifi-cation. The percentage of voting rights is calculated based
on the share capital registered with the commercial register as at the date of the last disclosure of shareholdings; such number may
have changed due to changes in the share capital registered with the commercial register.
4 According to SIX: https://www.ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html#/
5 According to SIX: https://www.ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html#/
6 Direct shareholder: Winder Pte Ltd.
7 Direct shareholder: Clean Holding B.V. (formerly CLIL Holding B.V.).
8 Direct shareholder: Al Obeikan Group for Investment Company CJS.
9 The 0.24% refer to the notified selling positions.
10 Of which the following voting rights were delegated by a third party and can be exercised at BlackRock, Inc.’s own discretion: 2,603,928
company shares.
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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 2023.
It currently consists of 382,270,872 fully paid-up registered shares with a nominal value of
CHF 0.01 per share.
2.2 Capital band and conditional share capital
The Company has a capital band ranging from CHF 3,440,437.85 (lower limit) to CHF 4,587,250.46
(upper limit). The Board of Directors is authorized to increase or reduce the share capital within the
capital band at any time or from time to time and in any (partial) amounts or to cause the Company
or any of its Group companies to acquire (including under a share repurchase program) shares directly
or indirectly, until the earlier of 20 April 2026 or the full use of the capital band. Within the capital band,
a capital increase may be affected by issuing up to 76,454,174 fully paid-in registered shares, each with
a nominal value of CHF 0.01, and a capital reduction by way of cancelling up to 38,227,087 registered
shares, each with a nominal value of CHF 0.01. A capital increase or capital reduction may further be
affected with the capital band by way of an increase or a reduction of the par value of the existing
shares or by a simultaneous reduction and re-increase of the share capital.
The Company furthermore has a conditional share capital of CHF 640,106.48 as of 31 December 2023.
The conditional share capital of CHF 640,106.48 (i.e., 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
If the share capital increases as a result of a conditional capital increase pursuant to art. 4 or art. 5
of the Articles of Association, the upper and lower limits of the capital band shall increase in an amount
corresponding to such increase in the share capital. In the event of a reduction of the share capital
within the capital band, the Board of Directors shall, to the extent necessary, determine the use of the
reduction amount. The Board of Directors may also use the reduction amount for the partial or full
elimination of a share capital shortfall as provided for in art. 653p of the Swiss Code of Obligations
(“CO”) or may, as provided for in art. 653q CO, simultaneously reduce and increase the share capital
to at least the previous amount.
The total number of registered shares issued from (i) the capital band according to art. 6 of the Articles
of Association where the shareholders’ subscription rights are excluded and (ii) the conditional share
capital according to art. 5 of the Articles of Association where the shareholders’ advance subscription
rights for Equity-Linked Financing Instruments are excluded, may not exceed 38,227,087 registered
shares up to 20 April 2026. 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.
Reference is made to the Articles of Association for the precise wording of provisions relating to
conditional share capital and capital band, 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 Articles of Association
can be downloaded as a PDF document at https://www.sig.biz/investors/en/governance/articles-of-
association.
2.3 Changes in capital
There have been no changes in capital in the year 2023.
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 authorized 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 authorized share capital. The net proceeds from the capital
increase were used to partially finance the acquisition of Pactiv Evergreen Inc.’s Asia Pacific chilled
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 authorized share capital. The newly issued shares were transferred
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 authorized 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 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.
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2.5 Dividend-right certificates (Genussscheine)
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 it is 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.1
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 2023, the Company had no outstanding bonds or debt instruments convertible into,
or option rights in, the Company’s securities.
As of 31 December 2023, a total of 808,261 performance share units (“PSUs”) and restricted share units
(“RSUs”) awards were outstanding. Each awarded PSU and RSU represents the contingent right to
receive one share of the Company 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
142 – 160 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. 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 2023 for additional information about the EIP options.
3 Board of Directors
3.1 Members of the Board of Directors
Art. 18 of the Articles of Association provides 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
Andreas Umbach
Werner Bauer
Wah-Hui Chu
Mariel Hoch
Florence Jeantet
Laurens Last
Abdallah al Obeikan
Martine Snels
Matthias Währen
Nationality
Position
Since
Expires2
Swiss and German
Swiss and German
Chinese
Swiss and German
French
Dutch
Saudi Arabian
Belgian
Swiss
Chair
Vice-Chair
Member
Member
Member
Member
Member
Member
Member
2018
20223
2018
2018
2023
2022
2021
2021
2018
AGM 2024
AGM 2024
AGM 2024
AGM 2024
AGM 2024
AGM 2024
AGM 2024
AGM 2024
AGM 2024
1 For a comprehensive description of the limitations to transferability and nominee registration, refer to art. 7 of the Articles of
Association.
2 All Board members are elected annually in accordance with Swiss corporate law and the Articles of Association.
3 Member since 2018.
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At the annual general meeting of the Company (“Annual General Meeting” or “AGM”) on 20 April 2023
(“Annual General Meeting 2023” or “AGM 2023”) eight of the previous nine members of the Board were
re-elected1 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 in the
Organizational Regulations. Pursuant to the Company’s independence criteria and based on the last
assessment performed before the AGM 2024, all members of the Board of Directors are deemed to be
independent, except for Abdallah al Obeikan and Laurens Last.
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 Bloom Biorenewables SA since
2020 and as a member of the board of trustees of the Givaudan Foundation (since 2013) and the HBM
Foundation (since 2018). Mr. Währen further served as a member of the board of directors of Keto Swiss
AG (from 2020 to June 2023) and of ph. AG (from 2020 to December 2023). Mr. Währen was previously
a member of the regulatory board of SIX Swiss Exchange from 2006 to 2017, a member of the board of
science industries 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. He also 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.
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 Schurter Group since December
2023. He has been president of the Zug Chamber of Commerce and Industry since 2016. Mr. Umbach
previously served as chair of the board of directors of Rovensa SA (2020 to September 2023) and 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 (Diplom-Ingenieur) from the Technical University of Berlin, Germany.
Florence Jeantet is a French citizen and has served as a member of the Board of Directors since April
2023. She has further served as a member of the “Conseiller au Conseil Economique de la France”
(Advisor to the Economic Council) since 2010. Ms. Jeantet was previously with Danone from 2004 to
September 2023 with her last role being Senior Vice President, Chief Sustainability Officer. She
previously held various leadership positions at Danone inluding SVP-OP2B General Manager,
SVP-Danone 2025 & Health Mission, Chief Growth Officer, Danone Worldwide Business Unit Early Life
Nutrition, Vice President Medical, Quality and R&D, Danone Early life Nutrition, Vice President, Research
& Development, Danone Baby Nutrition, Vice President, Research and Development, Danone Waters
Division. From 1991–2004, Ms. Jeantet held various leadership positions at Unilever in France,
Netherlands as well as Russia. Ms. Jeantet holds a Master’s in Food Science and Technology
Engineering from Polytech Montpellier, France. Ms. Jeantet holds a Certificate d’Administrateur de
Societes from SciencesPo-IFA, Paris, and completed the Women on Boards Program at Harvard
Business School, 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 also served as vice chair of the board of directors of Givaudan SA (SIX: GIVN) (2014–2023)
and of Bertelsmann SE & Co. KGaA (since 2012). He has further served as 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 several 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). 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.
1 Colleen Goggins had decided not to stand for re-election at the AGM 2023.
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 further
served as a member of the board of directors of Mettler Toledo International (NYSE: MTD) from 2007 to
2023. He is also the founder and chair of iBridge TT International Limited (Hong Kong) since 2018 and
founded M&W Consultants Limited (Hong Kong) in 2007. From 2013 to 2014, Mr. Chu served as CEO and
a member of the board of directors of Tingyi Asahi Beverages Holding and from 2008 to 2011 he served
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.
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Laurens Last is a Dutch citizen and has served as a member of the Board of Directors since April 2022.
Mr. Last has also served as a director of TSAL Family office B.V. (since 2023), Lorenzo marine Ltd.
(since 2023) and Roque Marine Ltd (since 2023). He previously served as a director of Clean Holding B.V.
(from 2019 to 2023), TSAL Holding NV (from 2015 to 2023) and Clean Cycle Investments BV (from 2021
to 2023). He founded and served as CEO of International Packaging Network (IPN) and afterwards as
chairman and a member of the Board of Scholle IPN (until 2022). Before pursuing his entrepreneurial
ventures, Mr. Last studied at HEAO Business School in the Netherlands.
As of 31 December 2023, 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 installments of up to USD 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 earn-out 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 had ended in
May 2023 and had no significant impact on the Group.
Corporate Governance Report continued
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 has also served
as a 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 also served as 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, a member of the Law and Economics Foundation St. Gallen since 2020 and a
member of the foundation board of Orpheum Foundation since October 2023. Ms. Hoch also served
as a 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.
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 has also served as a member of the board of directors of Arabian Shield
Cooperative Insurance Company (TADAWUL: ARABIAN SHILED), listed on Tadawul Stock Exchange,
KSA. He has further served 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 served as 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 has also served as 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, Martine Snels is the founder and CEO of L’Advance BV (since 2020). She also served as a
member of the supervisory board of URUS Group LLC (since 2021 until the sale of the company in
2023). 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 a MSc in Agricultural Engineering from K.U. Leuven, Belgium.
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Corporate Governance Report continued
The Company 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 summarizes the current set of skills/traits grouped into 13 categories:
Board skill matrix
Qualifications and experience
Andreas
Umbach
Werner
Bauer
Wah-Hui
Chu
Mariell
Hoch
Florence
Jeantet
Laurens
Last
Abdallah al
Obeikan
Martine
Snels
Matthias
Währen
Board member
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
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3.2 Number of permissible activities
In the interest of good governance, art. 28 para. 1 of the 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; and
ii. up to ten mandates in non-listed firms1.
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 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.
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 124.
3.4 Internal organization – 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 Association2, 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 2023, the members of the Compensation Committee were
Mariel Hoch (chair), Matthias Währen 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.
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 Directors3.
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 2023, the members of the Audit and Risk Committee were Matthias Währen (chair),
Mariel Hoch, Martine Snels and Werner Bauer.
1 Pursuant to art. 727 para. 1 number 1 CO.
2 https://www.sig.biz/investors/en/governance/articles-of-association
3 The organization and responsibilities of the Compensation Committee are stipulated in the Articles of Association (art. 21).
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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 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.
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 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.
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 2023, 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 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.
The Audit and Risk Committee also reviews and discusses with management and, to the extent
applicable and relevant, with the Group’s assurance providers, the Group’s corporate sustainability
reports. In this context, it also recommends the corporate sustainability reports for approval by the
Board of Directors and, with respect to the statutory non-financial matter reporting pursuant to art.
964a et seq. CO, for submission to the Annual General Meeting for approval by the Company’s
shareholders.
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 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.
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Frequency of meetings of the Board of Directors and its Committees
5
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 two day joint strategy meeting with the Group Executive Board. The task at these meetings is to analyze the positioning
of the Group in the light of the current macroeconomic and competitive environment, and to review and, if necessary, redefine the strategic orientation.
In the period under review, the Board held seven ordinary meetings, of which (i) four were in-person meetings, of which one was a strategy meeting lasting two full days and one was a half-day meeting followed
by a visit of one of the newly acquired Scholle IPN and customer facilities and (ii) three were virtual half-day meetings. In addition, the Board held one extraordinary virtual meeting lasting for one hour. All Board
members participated in all Board meetings except one Board member missing one Board meeting, resulting in an attendance rate of 98.5% 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. Attendance at the Board meetings in 2023 may be summarized as follows:
Meetings of the Board of Directors, 1 January 2023 to 31 December 2023
Feb. 23,
2023
Mar. 10,
2023
Apr. 19/20,
2023
May. 10,
2023
Jun. 23,
2023
Jul. 20,
2023
Sept. 13,
2023
Dec. 7,
2023
n/a2
n/a2
n/a1
n/a1
n/a1
n/a1
n/a1
–
Dates
Andreas Umbach
Werner Bauer
Wah-Hui Chu
Colleen Goggins
Mariel Hoch
Florence Jeantet
Laurens Last
Abdallah Al Obeikan
Martine Snels
Matthias Währen
1 Colleen Goggins decided not to stand for re-election at the AGM 2023.
2 Florence Jeantet was elected at the AGM on 20 April 2023.
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For the period under review, the Compensation Committee held five ordinary meetings with an average duration of approximately three hours, of which four were in-person meetings and one was a virtual
meeting. Furthermore, the Compensation Committee held two extraordinary virtual meetings with an average duration of approximately one hour. All Compensation Committee members participated in all
meetings, resulting in an attendance rate of 100%.
Meetings of the Compensation Committee, 1 January 2023 to 31 December 2023
Dates
Wah-Hui Chu
Colleen Goggins
Mariel Hoch
Matthias Währen
Jan. 26,
2023
Feb. 22,
2023
Apr. 19,
2023
Jun. 16,
2023
Jul. 19,
2023
Sept. 12,
2023
Dec. 6,
2023
n/a2
n/a2
n/a1
n/a1
n/a1
n/a1
The Nomination and Governance Committee held four ordinary meetings with an average duration of approximately three hours, of which two were in-person meetings and two were virtual meetings.
Furthermore, the Nomination and Governance Committee held two extraordinary meetings with an average duration of approximately one hour, of which one was a virtual meeting. The Nomination and
Governance Committee meetings had an attendance rate of 95%.
Meetings of the Nomination and Governance Committee, 1 January 2023 to 31 December 2023
Dates
Andreas Umbach
Werner Bauer
Wah-Hui Chu
Martine Snels
Feb. 20,
2023
Apr. 19,
2023
Jun. 16,
2023
Jul. 19,
2023
Nov. 2,
2023
Dec. 6,
2023
1 Colleen Goggins had decided not to stand for re-election at the AGM 2023.
2 Matthias Währen was elected at the AGM in April 2023.
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The Audit and Risk Committee held five ordinary meetings and one extraordinary meeting with an average duration of approximately 3.5 hours, of which two were in-person meetings and four were virtual
meetings. All Audit and Risk Committee members participated in all meetings, resulting in an attendance rate of 100%. The five ordinary meetings of the Audit and Risk Committee were partially attended
by the external auditors.
Meetings of the Audit and Risk Committee, 1 January 2023 to 31 December 2023
Dates
Matthias Währen
Werner Bauer
Mariel Hoch
Martine Snels
Feb. 22,
2023
Apr. 4,
2023
May. 2,
2023
Jul. 19,
2023
Oct. 19,
2023
Dec. 6,
2023
With the exception of certain directors-only sessions, the Board meetings were usually attended by the CEO 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 CEO, the CFO (after her appointment), the heads of the
finance function ad interim and the Group General Counsel & Chief Compliance Officer. 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 and the Company Secretary. The Nomination and Governance Committee meetings were
regularly attended by the CEO and by the Company Secretary.
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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.
Further, the Board monitors progress of previously defined strategic initiatives and priorities. In addition,
the Board is also responsible for maintaining a corporate culture with high ethical standards which
emphasizes the integrity of the Group and its employees. 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 Organizational Regulations. The Board’s non-transferable and irrevocable
duties, as set out in the CO and art. 19 para. 4 of the Articles of Association, include1:
• the supreme managerial responsibility for the Company and for issuing the necessary directives;
• determining the Company organization;
• 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 supervision of those persons responsible for the conduct of business, especially in terms of their
compliance with the law, with the Articles of Association and with regulations and directives;
• the production of the Annual Report and of the Compensation Report, and the preparation of the
General Meeting and the implementation of its resolutions;
• all decisions relating to the subsequent paying-in of non-fully-paid-up shares;
• all decisions relating to capital increases and the consequent amendments to the Articles of
Association;
• filing an application for a debt restructuring moratorium and notifying the court in the event that the
Company is overindebted;
• all other non-transferable and inalienable responsibilities attributed to the Board of Directors by law or
these Articles of Association.
In addition, Swiss law and the Organizational 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.
Board is responsible for implementing and achieving the Company’s corporate objectives, and for the
management and control of all Group companies2. The Group Executive Board is directly supervised by
the Board of Directors and its Committees.
Pursuant to the Organizational 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 based on 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, 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.
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 Organizational Regulations. The Group Executive
1 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 Organizational
Regulations (https://www.sig.biz/investors/en/governance/organizational-regulations)
2 The Group Executive Board exercises those duties which the Board of Directors has delegated to the management in accordance with
the Company’s Organizational Regulations and Swiss law.
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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 CSCO, the CMO, the President and General Manager Europe, the
President and General Manager Asia Pacific, the President and General Manager Americas and the
President and General Manager IMEA.
The Company announced in a press release on 21 February 2023, the appointment of Gavin Steiner to
the Group Executive Board as Chief Technology Officer. He replaced Ian Wood in this role, who became
Chief Supply Chain Officer until his resignation from the Group effective as of 1 January 2024.
Ross Bushnell, former President Scholle IPN, departed the Group as of 31 July 2023. As of 1 August
2023, Christoph Wegener, former Senior Vice President Commercial & Sustainability, had been
appointed to the Group Executive Board as Chief Markets Officer and also acts as President of
Bag-in-Box and Spouted Pouch.
With the press release of 10 August 2023, the Company announced the appointment of Ann-Kristin
Erkens as Chief Financial Officer, effective 1 November 2023. Since the departure of Frank Herzog,
the former CFO, effective as of 1 January 2023, Jessica Spence, Director of Group Accounting and
Financial Reporting, and Dmitry Lebedev, Director of Financial Planning and Analysis and Controlling,
co-led the finance function ad interim.
Fan Lidong retired from his role as President and General Manager of Asia-Pacific North on 1 November
2023. Angela Lu, previously President and General Manager of Asia-Pacific South, took on the role of
President and General Manager of Asia-Pacific on the same date.
Abdelghany Eladib became President and General Manager of India, Middle East and Africa (IMEA) on
1 November 2023. He was previously President and General Manager of Middle East and Africa (MEA).
The Group Executive Board comprised the following members on 31 December 2023:
Nationality
Position
Swiss
German
Swiss and British
Swiss and South African
Dutch
German
Dutch
CEO
CFO
CSCO
CTO
CPCO
CMO
President and General Manager Europe
Chinese President and General Manager Asia Pacific
President and General Manager Americas
President and General Manager IMEA
Brazilian and Spanish
Egyptian
Name
Samuel Sigrist
Ann-Kristin Erkens
Ian Wood1
Gavin Steiner
Suzanne Verzijden2
Christoph Wegener
José Matthijsse
Angela Lu
Ricardo Rodriguez
Abdelghany Eladib
1
2
In office until 31 December 2023.
In office until 31 December 2023.
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The biographies on the following pages provide information about the Group Executive Board members
in office on 31 December 2023.
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.
Ann-Kristin Erkens is a German citizen and joined SIG in November 2023 as Chief Financial Officer. She
has been a member of the supervisory board of Schott Pharma AG & Co KGaA since 2023. Prior to SIG,
Ms. Erkens spent 21 years at Henkel AG & Co KGaA, a DAX-40 company gaining significant experience
in the industrial sector. In addition to her role as Financial Director of Adhesives Technologies, she was
responsible for Global Operations and Supply Chain Adhesive Technologies with more than 100
factories worldwide from 2019 to 2023 and for the region Europe as of 2023. Prior to that she was
Financial Commercial Director for the Packaging Adhesives Business and the region India, Middle East,
and Africa. Within the broader Henkel Group, she previously served as Corporate Director of Group
Strategy. Ms. Erkens holds a degree in Business Management and industrial engineering from the
University of Applied Sciences, Wedel, Germany, and a MSc in operations management from the
University of Buckingham, UK.
Ian Wood is a Swiss and British citizen and joined SIG in 2018 as Chief Supply Chain Officer. Mr. Wood
then became CTO in 2020 and again Chief Supply Chain Officer in March 2023. 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.
Christoph Wegener is a German citizen and joined SIG in 2015 as Head of Global Sales and Business
Development. From 2018 to 2021, Christoph held the position of Chief Markets Officer Middle East
and Africa before becoming Senior Vice President Commercial for SIG Group in 2022. In August 2023,
Christoph was appointed Chief Markets Officer. Prior to SIG, Mr. Wegener worked as Principal at The
Boston Consulting Group, Germany, for eight years. Mr. Wegener holds a Master of Business
Administration of Oxford University and a BSc in Business Informatics of University of Rostock,
Germany.
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.
Angela Lu is a Chinese citizen and joined SIG in 2022 as President and General Manager Asia-Pacific
South. On 1 November 2023, Ms. Lu became President and General Manager Asia Pacific. 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. Angela holds
a Bachelor’s degree in Industrial Management Engineering (Marketing) from the 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 several 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.
Gavin Steiner is a Swiss and South African citizen and joined SIG in 2023 as CTO. Prior to SIG,
Mr. Steiner spent 28 at Nestlé, where he was Vice President Global R&D Packaging and Technology
from 2018 to 2023. Prior to that, he was Operations and Technical Director for the Eastern Southern
Africa region, Global Confectionary R&D Manager and Operations Director for South Korea. He has
many years of international experience in senior R&D, production and innovation roles covering a wide
range of food quality and safety systems. Mr. Steiner holds an Executive MBA from IMD Lausanne,
Switzerland, and a BSc in Microbiology and Biochemistry from the University of Natal, South Africa.
Abdelghany Eladib is an Egyptian citizen and originally held the position of Chief Operating Officer in
the SIG Combibloc Obeikan joint venture companies, which he joined in 2017. Prior to his current position
as President and General Manager IMEA, he acted as President and General Manager Middle East and
Africa since 2021. 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 degree
in Mechanical Engineering and an MBA and a Diploma in Strategic Management from the Jack Welsh
Institute, USA.
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).
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8.2 Number of permissible activities
In the interest of good governance, art. 28 para. 2 of the Articles of Association limit the number
of outside mandates of the members of the Group Executive Board as follows:
i. one mandate in listed firms1; and
ii. up to five mandates in non-listed firms.
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
141 to 159.
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.
1 Pursuant to art. 727 para. 1 number 1 CO.
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. 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 based on 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 5%
of the Company’s share capital or votes.
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 0.5% of the Company’s share capital or votes 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. If an explanatory statement is to be included in the notice of
meeting, it must be submitted within the same period and be brief, clear and concise.
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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.
11 Change of control and defense 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 favor 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 plans1.
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 2023. 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.
12.2 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 1,000
Audit
Audit-related services
Tax and other services (primarily consisting of tax consultancy and support and
sustainability support)
Total
2023
1,868
–
209
2,077
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 principles, the selection and disclosure of critical accounting estimates, and
the effect of alternative assumptions, estimates or accounting principles 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 (after her appointment), the heads of the
finance function ad interim 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.
1 For further information on compensation with respect to a change of control, please refer to pages 151 of the Compensation Report.
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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 2023 at which they discussed, amongst other topics, the scope and certain
results of the audit and reviews.
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 summarized 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 CEO, CFO and Investors Relations are responsible for communicating with investors and
representatives of the financial community, media and other stakeholders. In addition to the publication
of results and the Annual General Meeting, the Company also regularly participates in country or sector
(non-deal) conferences. Whenever possible and appropriate, meetings with investors are organised via
video conferencing technology to reduce carbon emissions and travel costs. In between, however,
physical meetings are also held at the investors’ premises (roadshow) or at the Group’s headquarter.
An overview of upcoming events as well as a list of bank analysts covering the share and consensus
figures can be found on the Company’s website.
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/en/responsibility/cr-reports.
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.
Notices to shareholders are made by publication in the Swiss Official Gazette of Commerce
(Schweizerisches Handelsamtsblatt). To the extent the Company communicates to 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 day 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 are 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. No
such exemption has been granted in the reporting year.
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Financial calendar
The important dates for 2024 include:
Publication of 2023 full-year results and date of earnings call
Annual General Meeting 2024
Publication of Q1 2024 trading statement
Publication of 2024 half-year report
Publication of Q3 2024 trading statement
27 February 2024
23 April 2024
30 April 2024
25 July 2024
29 October 2024
Corporate Governance Report continued
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/en/responsibility/cr-reports
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
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Our Governance
Letter from the Chair of the Compensation Committee
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
December 31, 2023. 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 and other relevant stakeholders. The
Compensation Committee regularly assesses, reviews and develops the compensation framework
to ensure that it is aligned with these principles.
As part of our annual outreach to investors, the Compensation Committee undertook a broad effort
to understand in more detail the views of our shareholders on our compensation system. Overall, our
shareholders appreciate our strong and solid compensation structure and how it has been applied since
our IPO in 2018. Nevertheless, the Compensation Committee also noted a number of proposals which
were raised during the engagement with shareholders. The Compensation Committee reviewed and
discussed these in detail in the second half of 2023 and concluded that certain adjustments were
warranted.
Specifically, the Compensation Committee looked into the level of transparency of the Compensation
Report. With respect to the Short-Term Incentive Plan and Long-Term Incentive Plan of our Group
Executive Board, we are pleased to enhance the disclosure relating to the targets we set as well as their
achievement. The main aspects and corresponding actions taken are summarized in a separate section
in the Compensation Report to give our shareholders detailed insights into the topics addressed. Please
refer to page 143.
In addition, the Compensation Committee has recommended to the Board to increase as of 2024 at
Group level the weighting of the free cash flow component in the Short-Term Incentive Plan from 15%
to 20% while decreasing the weighting of the adjusted EBITDA component from 55% to 50% and at
regional level, to replace the regional adjusted operating net working capital as a percent of revenue
component by a free cash flow component. Moreover, the Compensation Committee recommended
to the Board to increase the minimum shareholding requirements of both the Board of Directors and
GEB to further enhance alignment with the interests of our shareholders.
We believe that these steps will align with the expectations of our shareholders, reflecting our ongoing
commitment to transparency and shareholder engagement.
As part of its standard annual work, the Compensation Committee regularly assesses, reviews and
develops the compensation framework to foster sustainable performance. Following the 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. The
Compensation Committee will continue to regularly monitor market trends and developments and
to assess opportunities for further development.
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 Plan since
2021. To ensure 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 and Human Rights, Ethics and Sustainable Procurement, and encompasses a
comprehensive view on ESG matters with relevance for all SIG stakeholders.
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 regular gender pay analyses, even where
we are not required to do so under applicable local laws, thereby underpinning our commitment to a
gender-diverse and fair workplace. We provide you with additional insights into our initiatives and
activities for our most valued assets – our employees – in the Corporate Responsibility Section of
the Annual Report.
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 2025 and the maximum aggregate amount of compensation for the
Group Executive Board for the year 2025. 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’ and other relevant stakeholders’
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.
Mariel Hoch
Chair of the Compensation Committee
Neuhausen am Rheinfall, December 31, 2023
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Compensation Report
Compensation Report
Figure 2: Relevant provisions on compensation in the Articles of Association of SIG
Introduction
This Compensation Report has been prepared in compliance with Swiss laws and regulations.
The report is in line with the relevant section of the Swiss Code of Obligations (“Obligationenrecht”),
particularly articles 734 – 734f, 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.
Principles for the compensation
of the members of the Board
and the Group Executive Board
(art. 24 to 26)
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 2023
• The compensation of the Group Executive Board (“GEB”) for 2023
Compensation governance
Figure 1: Compensation governance at SIG
Compensation approvals by the
General Meeting
(art. 27)
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 the Company and the
group and/or operating units thereof, and/or individual
targets.
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.
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.
Supplementary amounts
available for members joining
the Group Executive Board after
the relevant approval
of compensation by the AGM
(art. 27, para. 4)
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 approved
maximum aggregate amount of compensation for the
Group Executive Board for such year.
Principles for the compensation
of the members of the Board
and the Group Executive Board
(art. 29, para. 2)
SIG may enter into compensated non-competition
agreements with members of the Group Executive Board
with a duration of up to 18 months after termination of the
employment.
Retirement benefits
(art. 30)
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 healthcare insurances, etc.) outside of
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, or downloaded
directly here.
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.
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Our Governance continued
Compensation Report continued
Figure 3: Authority table regarding compensation.
CEO
Compensation
Committee
Board of
Directors
AGM
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 2024 AGM, as illustrated
in Figure 4.
Compensation principles
(Articles of Association)
Compensation strategy
and guidelines
Key terms of compensation
plans and programs for
members of the Board of
Directors and Group
Executive Board
Maximum aggregate
compensation for members
of the Board of Directors
Maximum aggregate
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,
other than the CEO
Approval
(subject to
AGM approval)
Approval (in case
of changes,
binding vote)
Figure 4: Overview of votes at the 2024 AGM.
Proposal
Approval
Proposal
Approval
Proposal
Proposal
Approval
(subject to
AGM approval)
Approval
(subject to
AGM approval)
Approval
(binding vote)
Approval
(binding vote)
Proposal
Approval
Board vote
(binding)
Group
Executive
Board vote
Report vote
(consultative)
Vote at
AGM
2024
Compensation Report
FY 2023
AGM 2024
AGM 2025
Vote at
AGM
2024
Maximum aggregate
amount for the term
AGM 2024 – AGM 2025
Vote
at
AGM
2024
Maximum aggregate
amount for FY 2025
Proposal
Review
Approval
2023
2024
2025
Compensation Report
Proposal
Approval
Approval
(consultative
vote)
Individual total compensation
of the CEO
Individual total compensation
of other members of the
Group Executive Board, other
than the CEO
Proposal
Approval
Proposal
Review
Approval
Board of Directors and Executive Management
The Corporate Governance report on page 122 provides a detailed overview of the composition of the
Board of Directors as well as the Group Executive Board, including biographies of the current members.
Composition of the Compensation Committee
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. At the Annual General Meeting 2023, Wah-Hui Chu and Mariel Hoch were
re-elected as members of the Compensation Committee. Colleen Goggins did not stand for re-election
and with that also resigned from the Compensation Committee. Her seat in the Committee has been
taken over by Matthias Währen who was elected as new member of the Compensation Committee by
the AGM 2023. Mariel Hoch was appointed by the Board of Directors to be the Chair of the Committee.
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Role of the Compensation Committee and activities during 2023
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 2023, the Compensation
Committee held seven meetings. Some of the meetings were held as video conferences or hybrid
meetings. The topics covered are described in Figure 6. All members of the Compensation Committee
had full meeting attendance during 2023.
As part of our annual outreach to investors, the Company undertook a comprehensive effort to engage
with their shareholders to understand their opinions and perspectives regarding SIG’s compensation
framework. The Compensation Committee noted certain concerns and consequently reviewed and
discussed them. The following Figure 5 highlights the main actions the Board has taken upon proposal
of the Compensation Committee to address concerns expressed around target disclosure for the
Short-Term Incentive Plan as well as for the Long-Term Incentive Plan, while Figure 6 summarizes the
topics, covered by the Compensation Committee in 2023.
Figure 5: Actions taken to address concerns addressed.
Actions taken
Performance targets Short-Term Incentive Plan
Target setting for Group targets fully transparent and disclosed
Target achievement per Group target in % as well as effective metric disclosed
Performance targets Long-Term Incentive Plan
Target setting for Group targets fully transparent and disclosed
Target achievement per Group target in % as well as effective metric disclosed
General Governance
Enhanced transparency of targets for Short-Term and Long-Term Incentive Plans
Figure 6: Topics covered by the Compensation Committee in 2023.
Agenda Item
Jan.
Feb.
Apr.
Jun.
Jul.
Sep.
Dec.
Principals and design of compensation plans
Market intelligence (recent
developments in compensation,
legal, governance landscapes)
Review of general target
framework for Short-Term
Incentive Plan and Long-Term
Incentive Plan
Policy review and updates
implemented
– Performance Share Unit Plan
– Restricted Share Unit Plan
– Shareholding Guidelines
Compensation Group Executive Board
Short-Term Incentive Plan
– Target achievement 2022
– Target setting 2023
– Define framework and
KPI measures for 2024
Long-Term Incentive Plan
– Recommendation of plan
participants and target
setting for grant 2023
– Plan 2020-2023: target
achievement and vesting
multiple
Group Executive Board:
employments matters related
to succession planning and
organizational development
Benchmarking Compensation
for members of the Group
Executive Board
– Comparator group review
– Review results
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Agenda Item
Jan.
Feb.
Apr.
Jun.
Jul.
Sep.
Dec.
Compensation Board of Directors
Benchmarking of compensation
for the Board of Directors
– Comparator group review
– Review results
General Framework
Shareholding Guidelines
Assessment
Pay equity roadmap – status
update
Communication
AGM invitation, including
determination of the maximum
amounts of compensation for
the Board of Directors (for the
term AGM 2023 to AGM 2024)
and the Group Executive Board
(year 2024)
Analysis of the compensation
voting results of the AGM and
the proxy advisors’ 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 2023, with some members of the Compensation
Committee in attendance 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
minutes of Compensation Committee meetings are available to all members of the Board.
The Compensation Committee may decide to consult external advisers on specific compensation
matters. In 2023, the Compensation Committee appointed HCM International Ltd. (“HCM”) as an
external independent adviser on certain compensation matters including 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 2023. Furthermore, the Compensation Committee mandated Willis Towers Watson (“WTW”) to
conduct the independent executive salary benchmarking for the Board of Directors and the Group
Executive Board. WTW was not appointed for any other mandates in 2023 regarding compensation
services for the Board of Directors respectively the Group Executive Board.
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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 7.
They are reviewed by the Compensation Committee on a regular basis.
Figure 7: SIG compensation framework, objectives and principles.
Be competitive to
attract and retain
top talent and at
the same time be
reasonable in
terms of amount
of 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 under-
performance
Be fully
compliant with
relevant laws and
regulations
Be aligned with
shareholders’
interests
The Compensation Committee regularly reviews SIG’s compensation system from an internal equity
as well as from an external competitiveness perspective. This review offers the Compensation
Committee an important market reference points considering similar roles in comparable companies
in terms of level and structure.
An initial step is to reassess the underlying principles for the selection of peer companies, which include
dimensions such as geography, industry affiliation, governance structure and company size. This
detailed assessment of the principles ensures that the selected peer companies considered are
relevant, appropriate, and comparable.
Based on this reassessment, the Compensation Committee updated in 2023 the underlying peer groups
used for the Board of Directors as well as for the Group Executive Board also reflecting recent
acquisitions and the inclusion into the SMI MID Index.
For the Board of Directors, the updated peer group consists of the constituents of the SMI MID Index1
(Swiss mid-cap stocks in the Swiss equity market as of September 30, 2023). For the Group Executive
Board, a broader industry-related Swiss and European peer group2, has been considered by applying
the defined principles, and considering SIG’s positioning at the median of the peer group.
For the peer group review and market assessments for the Board of Directors and the Group Executive
Board, WTW served as an external advisor. The Compensation Committee assessed the results and
decided that no immediate actions regarding levels and structure of compensation are needed.
The Committee will continue to review the compensation packages with regards to level and structure
for the Board and the Group Executive Board on a regular basis.
1 The peer group used for the compensation benchmarking analysis of the Board consisted of the following SMI MID companies: Adecco
Group AG; ams-OSRAM AG; Bachem Holding AG; Baloise Holding AG; Barry Callebaut AG; BELIMO Holding AG; BKW AG; Ch Lindt &
Sprüngli AG; Clariant AG; Avolta AG (former Dufry AG); EMS-CHEMIE Holding AG; Flughafen Zürich AG; Galenica AG; Georg Fischer
AG; Helvetia Holding AG; Julius Bär Gruppe AG; Meyer Burger Technology AG; PSP Swiss Property AG; Schindler Holding AG; SGS AG,
Straumann Holding AG; The Swatch Group AG; Swiss Prime Site AG; Tecan Group AG; Temenos AG, VAT Group AG
2 The peer group used for the compensation benchmarking analysis of the Group Executive Board consisted of the following companies:
Alfa Laval; Barry Callebaut AG, BillerudKorsnäs, Bucher; Ch. Lindt & Sprüngli, Dürr AG, Geberit AG, Georg Fischer AG, Gerresheimer
AG, Givaudan SA; Huhtamäki Oyi; IMI plc, Mayr-Melnhof Karton AG; Mondi plc; OC Oerlikon; Schindler, SFS Group; Stora Enso;
Straumann, Svenska Cellulosa; Tecan Group AG; Weir Group PLC, VAT Group AG
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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 2023, the Chair and one member of the Board were insured via the Company’s pension plan, and
both paid for the totality of the pension contributions. 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.
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.
The individual sum of the annual base fee and, where applicable, annual Committee fee(s) 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 installments. 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.
3-year blocking period
Equity
element
Equity element
40%
Cash element
60%
Cash
element
Figure 8: Overview of the Board of Directors’ fees.
Pay mix
Term
Term +1
Term +2
Term +3
Annual
base fee
(in CHF,
gross)
550,000
Annual Committee fees (in CHF, gross)
Audit and Risk
Compensation
Nomination
and Governance
Chair Member
Chair
Member
Chair Member
Not entitled Not entitled
175,000
50,000
25,000
40,000
15,000
40,000
15,000
Chairperson
Ordinary
member
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Compensation awarded to the Board of Directors (audited)
Table 1 summarises the compensation for 2023 of the nine non-executive members of the Board which are all non-executive members.
Table 1: Total compensation of the Board of Directors in 2023 (January 1 – December 31), including comparative figures for the prior year.
Members of the Board of Directors during 2023
Board
membership
ARC¹
CC2
NGC3
Settled in cash,
CHF4
Settled in SIG
shares, CHF5
Social security
payments, CHF6
Total
compensation
earned in 2023,
CHF
Total
compensation
earned in 2022,
CHF
Andreas Umbach
Matthias Währen
Mariel Hoch
Werner Bauer
Abdallah al Obeikan
Wah-Hui Chu
Florence Jeantet
Laurens Last
Martine Snels
Colleen Goggins
Total
Chair
•
•
•
•
•
•10
•
•
•13
Chair
•
•
•8
Chair9
•
•
Chair13
Chair
•
•
•
330,0007
141,256
139,426
129,000
105,000
123,000
73,269
105,000
129,00012
39,338
1,314,288
220,044
94,232
93.025
86,045
70,047
82,042
48,873
70.047
86,045
26,259
876,659
33,323
13,580
16,260
12,304
12,677
–
–
12,677
13,539
–
114,359
583,367
249,068
248,711
227,349
187,724
205,042
122,142
187,724
228,583
65,596
2,305,306
584,842
237,861
230,425
227,239
187,779
235,738
–
140,81911
205,032
247,288
2,297,023
1 Audit and Risk Committee
2 Compensation Committee
3 Nomination and Governance Committee
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 volume-weighted average closing price of a share on the SIX Swiss Exchange over the last ten trading days of the second month of the Quarter plus the first ten trading days of the third month of the quarter for which the blocked SIG shares are granted
(until 2022: 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)
Includes employer pension contributions of CHF 41,440 funded by the Chair through a reduction of the cash portion of the fee.
6 Employer social security contributions
7
8 Matthias Währen replaced Colleen Goggins as member of the CC as of the AGM in April 2023. The respective numbers disclosed reflect the Committee remuneration for the period from April 21, 2023 to December 31, 2023.
9 Mariel Hoch became Chair of the CC as of the AGM in April 2023. The respective numbers disclosed reflect the remuneration as member of the Committee for the period from January 1, 2023 to April 20, 2023 and the fee for remuneration as the Chair of the CC for the period
from April 21, 2023 to December 31, 2023.
10 Florence Jeantet was elected as member of the Board at the Annual General Meeting in April 2023. The respective number disclosed reflects the period from April 21, 2023 to December 31, 2023.
11 Laurens Last was elected as member of the Board at the Annual General Meeting in April 2022. The respective number disclosed reflects the period from April 7, 2022 to December 31, 2022.
12 Includes employer pension contributions of CHF 24,511 funded by the Member through a reduction of the cash portion of the fee.
13 Mandate until AGM 2023 – the compensation disclosed reflects the period from January 1, 2023 to April 20, 2023.
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Reconciliation of compensation approved for and paid to the Board of Directors
The compensation level for the Board of Directors was unchanged compared with the previous
compensation period and the overall total compensation paid to the Board of Directors in 2023 could
be kept on the same level. The small difference is given to certain movements in social security
contributions.
The reconciliation of the approved and granted amounts is illustrated in Figure 10.
Figure 10: Reconciliation of compensation of the Board of Directors.
2022
2023
Start of the year
January 1, 2023
2024
End of the year
December 31, 2023
AGM 2022 (7 April 2022)
AGM 2023 (April 20, 2023)
AGM 2024 (April 23, 2024)
CHF 1.8m
Compensation for the period from
AGM 2022 to December 2022
CHF 0.7m
Compensation for
the period January
2023 to AGM 2023
CHF 1.6m
Compensation for the period
AGM 2023 to December 2023
CHF 2.3m
Compensation for 2023
CHF 2.5m
Compensation for the period AGM 2022 to AGM 2023
CHF 1.6m
Compensation for the period
AGM 2023 to December 2023
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 2023.
Vesting of
Long-Term
Incentive Plan
(LTIP)
0-200% of number
of granted
performance
share units
Long-Term
Incentive Plan
(LTIP)
Short-Term
Incentive Plan
(STIP) at target
LTIP grant
3-year performance/vesting period
1-year
performance
period
Payment of
Short-Term
Incentive Plan (STIP)
0-200% of target
value
Base Salary:
Base Salary:
+ pension
contributions
+ other benefits
+ pension
contributions
+ other benefits
CHF 2.7m
Amount approved by the shareholders at the AGM 2022
(for the term AGM 2022 to AGM 2023)
CHF 2.7m
Amount approved by the shareholders at the AGM 2023
(for the term AGM 2023 to AGM 2024)
Pay mix
Reporting year
Reporting year +1 Reporting year +2 Reporting year +3
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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 installments 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 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 and where needed, a
third-party validation of the forfeiting value. 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.
For each Group Executive Board member, the Compensation Committee determines an individual
target amount under the STIP as a percentage of the respective member’s base salary which is paid out
in case the targets under the KPIs are achieved to 100%. To determine the actual payout under the STIP,
the performance of each KPI is assessed individually against pre-determined targets and is expressed
in a target achievement rate 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. Detailed
information regarding the target amounts, KPI targets as well as achievements of those targets are
provided on pages 152 and 153 of this report.
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.
Figure 12: Overview of the Group Executive Board STIP compensation framework in 2023.
Target individual
short-term incentive
(100% of base salary for CEO,
60-82% of base salary
for other members of the
Group Executive Board)
x
Performance regarding
financial targets and
EcoVadis score
=
Actual individual
short-term incentive
(0-200% of individual target
short-term incentive)
Variable compensation components:
The variable compensation consists of a short-term incentive and a long-term incentive component.
KPIs
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 KPI 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 and Human Rights, Ethics and
Sustainable Procurement. These areas encompass a wide range of ESG activities and have relevance
for all SIG employees.
Group
Group adjusted EBITDA
Group core revenue
Group free cash flow
EcoVadis score
(sustainability metric)
55%
20%
15%
10%
Regional
Regional adjusted EBITDA
50%
Regional core revenue
30%
Regional adjusted
operating net working
capital (ONWC) as a % of
revenue
20%
100%
40%
60%
Members of the
Group Executive
Board without
regional responsibility
Members of the
Group Executive
Board with
regional responsibility
Weight
2023
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The role of Chief Markets Officer has been created. The Chief Markets Officer also acts as President
of Bag-in-Box and Spouted Pouch. Going along with that responsibility, the short-term incentive
compensation for that position is calculated on 60% Group targets and 40% Bag-in-Box and Spouted
Pouch targets in deviation to the framework illustrated in Figure 12.
After the three-year vesting period, a certain number of the granted PSUs vest, depending on the
performance of SIG during that period. 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
KPIs.
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 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, and (ii) the
reference price of one PSU. The reference price reflects the 20-day volume-weighted share price
before the grant date.
Figure 13: Overview of the principles of the LTIP.
Performance conditions
3-year relative TSR¹
with a cap at 100%
for a negative absolute TSR
3-year cumulative diluted
adjusted EPS
3-year
cumulative FCF
50%
25%
25%
200%
0%
200%
0%
200%
0%
Value of the vested
LTIP in CHF
=
Share price at
vesting date
x
LTIP grant in CHF
÷
Reference Price of
one performance
share unit (PSU) at
grant date
=
Number of granted
PSUs
x
0-200% of the number of granted PSUs
=
Number of PSUs
vested in SIG shares
Performance period = 3 years
1 SPI® ICB Industry 2000 “Industrials” Total Return Index
KPIs
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
To determine the multiple of the granted PSUs ultimately vested in SIG shares, the performance against
each KPI 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 KPIs 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%. Detailed information
about the grants, targets and their achievements are provided on pages 153 and 154 of this report.
Since the introduction of the LTIP in 2019, PSUs were granted to the members of the Group Executive
Board and selected other members of management on a yearly basis. For an overview of the annual
PSU allocations and the outstanding PSUs, see note 31 of the consolidated financial statements for
the year ended December 31, 2023 as well as the respective shareholding overview in this report.
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.
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 behavior or other willful 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.
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Compensation mix
Figure 14 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 14: Overview of the compensation mix for the CEO and the Group Executive Board (excl. CEO)
at target level.
CEO
Group Executive Board
excl. CEO (average)
Fixed
components
28%
Fixed
components
42%
Variable
components
72%
Fixed components
total – 28%
Base salary – 23%
Pension benefits/
other benefits – 5%
Variable
components
58%
Fixed components
total – 42%
Base salary – 32%
Pension benefits/
other benefits – 10%
Variable components
total – 58%
Target short-term
incentive – 22%
Granted long-term
incentive – 36%
Variable components
total – 72%
Target short-term
incentive – 24%
Granted long-term
incentive – 48%
For the Group Executive Board members excluding the CEO, the fixed components (annual base salary
and pension benefits/other benefits) vary between 26% and 68% (42% on average) of the total target
compensation and the variable components vary between 32% and 74% (58% on average) of total
target compensation as of December 31, 2023.
Holistic approach to align performance and long-term orientation of the compensation structure
SIG’s compensation framework is designed to align with its SIG’s values of accountability, long-term
growth, and ethical leadership. Based on that, the higher portion of compensation for the members of
the Group Executive Board is variable and performance-based, with 72% for the CEO and 58% of total
target compensation for other members on average. This ensures that payment is up to strongly linked
to delivery of tangible results that drive sustainable growth, without promoting excessive risk-taking.
SIG believes that this approach encourages performance differentiation and excellence among the
members of the Group Executive Board for the benefit of the Company and its stakeholders.
The overall compensation design principles of SIG are long-term oriented with a substantial portion of
the overall compensation in the LTIP. The share-based variable compensation is deferred for at least
three years, which is in line with the long-term horizon of the business strategies. Overall, it takes over
1.4 years for the members of the Group Executive Board to realize their total compensation packages.
The Company believes that this underpins the strong focus on long-term orientation. By integrating
these perspectives into the compensation framework, the Company aims to establish alignment and
foster a culture of responsible leadership and shared success. That design demonstrates the
Company’s commitment to delivering consistent and enduring value to its shareholders.
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, but in any event not more than an amount corresponding to the average of
compensation of the respective member during the three preceding financial years, unless otherwise
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 12 members of the Group Executive Board active
during 2023, with one new member joining in April, one internal senior manager being promoted to the
Group Executive Board in August 2023 and one new member joining in November 2023, while one
member left the Group in July 2023, another one member retired in November 2023 and two members
who left at the end of 2023. The total regular compensation for the Group Executive Board amounted to
CHF 11.4 million.
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Compensation Report continued
Table 2: Total compensation of the Group Executive Board in 2023, including comparative figures
for the prior year (audited)
CHF1 gross amounts
Annual base salary
Pension benefits
Short-term variable
compensation2
Long-term variable
compensation (granted)3
Other benefits6
Social security contributions7
Total regular compensation
Payments to former
executives
Accruals for non-compete
agreements
Total compensation
Group
Executive
Board
(including
the CEO)
2023
Group
Executive
Board
(including
the CEO)
2022
Highest
payment
2023
Samuel Sigrist
(CEO)
Highest
payment
2022
Samuel Sigrist
(CEO)
3,483,775
477,837
3,557,210
469,396
700,000
124,602
700,000
121,346
1,327,661
2,738,412
147,714
732,830
4,973,3334
610,960
607,017
11,480,583
4,875,0005
678,735
725,059
13,043,812
1,425,000
34,595
180,777
2,612,688
1,325,000
39,278
224,692
3,143,147
Approved versus total regular compensation for the Group Executive Board
The total compensation for the Group Executive Board for 2023 is CHF 12.1 million (including
social security contributions), which is below the maximum aggregate compensation amount of
CHF 18.0 million approved for 2023 at the Annual General Meeting on April 7, 2022. This amount
includes CHF 0.6 million relating to payments to one former member of the Group Executive Board.
Short-Term Incentive Plan (“STIP”) 2023
In 2023, the target individual short-term incentive equals 100% of the base salary for the CEO and lies
between 60% and 82% of the respective base salaries for other members of the Group Executive Board.
The threshold, target and cap (together the “targets”) for both the financial KPIs and the ESG KPI are
determined by the Board, based on the recommendation of the Compensation Committee each year,
following a well-established process. To calibrate the achievement curve 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 others,
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. In line with this, achieving 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.
586,3028
685,3319
–
–
Figure 15 illustrates the targets that were set for the financial year 2023 including threshold and cap
for the payout.
–
12,066,885
–
13,729,142
–
2,612,688
–
3,143,147
Figure 15: Target setting for the Short-Term Incentive Plan for the financial year 2023.
1 Exchange rates 2023: AED/CHF 24.47146; EUR/CHF 0.97177; CNY/CHF 12.70249; BRL/CHF 17.9905; USD/CHF 0.89864; SGD/
CHF 66.92377
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
2 Represents an estimate of effective short-term variable compensation for 2023 which will be paid in 2024, after the publication of SIG’s
audited consolidated financial statements.
3 Amount granted under the LTIP; the number of PSUs that vests depend 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 PSU regulations. See note 31 of the consolidated
financial statements for additional details.
Includes a one-time grant of PSUs in 2023 to the value of CHF 340,000 to one of the new member of the Group Executive Board,
which has been granted to partly compensate forfeited awards from former employer.
4
5 This item includes a one-time grant of restricted share units (“RSUs“) in 2022 (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.
6 Comprise payments related to additional insurances, car benefits and other allowances and benefits. This item also includes a payment
in 2022 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.
7 Employer social security contributions include estimates for the Short-Term Incentive Plan as well as for the Long-Term Incentive Plan
8
9
at target level on an accrual basis.
Includes payments to the former member of the Group Executive Board who left the Group Executive Board on December 31, 2022.
The amount includes employer social security contributions.
Includes payment to the former member of the Group Executive Board who left the Group Executive Board on December 31, 2021.
The amount includes employer social security contributions.
10 The EcoVadis score is a third-party assessment of our environmental, social and governance performance, measured relatively.
The Company received a platinum rating in 2023. For the Company‘s sustainability performance and its EcoVadis platinum rating,
for details please refer to the Corporate Sustainability Report.
Performance measures
Weight
Threshold
(0% payout)
Target
(100% payout)
Cap
(200% payout)
Group adjusted EBITDA
Group revenue first half year
Group revenue full year
Group free cash flow
EcoVadis score10
55%
6%
14%
15%
10%
818.2m EUR
1,528.9m EUR
3,201.1m EUR
290.9m EUR
79 points
852.3m EUR
1,560.1m EUR
3,266.5m EUR
303.0m EUR
81 points
903.5m EUR
1,606.9m EUR
3,364.5m EUR
321.2m EUR
84 points
For the Group as a whole, as illustrated in Figure 16 below, financial KPIs for 2023 were only partly
achieved. The Company overall was able to improve its EcoVadis score in 2023 versus the prior year.
The aseptic business did achieve the target set while the Bag-in-Box and Spouted Pouch businesses
did a tremendous step forward and overachieved the target set. This leads to an overall slightly
overachievement of the target that had been set. Please refer to the Corporate Responsibility
Report for further information relating to the Group’s environmental and sustainability performance.
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Figure 16: 2023 performance at Group level relevant for STIP performance assessment.
Figure 17: Overview of the vesting curve of the LTIP 2023.
Target achievement
0%
100%
200%
Result
achieved
Performance measures
Weight
Group adjusted EBITDA
Group revenue first half year
Group revenue full year
Group free cash flow
EcoVadis score1
55%
6%
14%
15%
10%
0%
0%
55%
63%
115%
803.0m EUR
1,546.5m EUR
3,242.3m EUR
219.5m EUR
82 points
Target achievement
In line with the Company’s revenue guidance, target revenue is reported at constant currency, i.e target
revenue of the Group is calculated at the applied exchange rate used for the Group’s 2023 consolidated
financial statements. For the Group’s constant currency definition please refer to the following link
https://www.sig.biz/investors/en/performance/definitions. Target revenue was decreased by 55.4m EUR
(first half of the year) respectively 129.8m EUR (full year) as a result of this calculation.
The Group target achievement of 23.6% was reduced by 2.5% to 21.1% due to a regional correction.
The achievement for the 2023 STIP was 21.1% for the CEO (104.7% in 2022) and between 14.4% and
107.8% for the other members of the Group Executive Board (56.8% to 113.6% in 2022).
Long-Term Incentive Plan (“LTIP”) 2023
In 2023, the LTIP grant in CHF amounted to 204% of the base salary for the CEO and was between
47% and 142% of the respective base salary for other members of the Group Executive Board.
The threshold, target and cap (together the “targets”) performance levels for the three LTIP
performance measures for the 2023 grant are illustrated in Figure 17 and were set by the Board,
based on the recommendation of the Compensation Committee based on a robust, stringent approach
supported by HCM International Ltd. The vesting curves for each KPI under the LTIP are defined to
support the balanced performance and payout situations below and above the target and allow for
a realistic performance-related chance to realise vesting.
Performance measures
Weight
Threshold
(0% payout)
Target
(100% payout)
Cap
(200% payout)
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
50%
25%
25%
-16%
of index
-0% compared
with index
+10%
of index
64.2%
of target
100% target
as set by the
Board of Directors
83.0%
of target
100% target
as set by the
Board of Directors
135.8%
of target
117.0%
of target
Given the market sensitivity of the EPS and FCF targets, and that the plan is still running until 2025,
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 2023 grant.
Further, the approved targets for 2023 lie above the targets for the previous grants.
The 2020 LTIP grant vested on March 31, 2023. The share price and operational performance in the
three-year period from 2020 to 2023 was strong and above the challenging targets, resulting in a total
vesting multiple of 168%. 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.
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 2023. For the Company‘s sustainability performance and its EcoVadis platinum rating,
for details please refer to the Corporate Sustainability Report.
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Figure 18: Vesting multiple of the performance share unit grant 2020 for the period 2020 to 2023.
Vesting multiple
0%
100%
200%
Result
achieved
Performance measures
Weight
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
Target achievement
50%
200%
16 p.p.
25%
96%
2.17 EUR
25%
174%
745m EUR
The Compensation Committee has defined a robust process to assess the materiality of major events,
such as acquisitions completed during the three-year performance period of the plan. Based on the
assessment, results achieved are adjusted to consider the influence of these events.
For an overview of the annual PSUs granted and outstanding PSUs, please refer to note 31 of the
consolidated financial statements.
Assessment of actual compensation paid/granted to the Group Executive Board
In comparison to the previous year, the total regular compensation of the entire Group Executive Board
decreased by 12.4%. The overall movement is mainly driven by the performance-related aspects of the
STIP payout, as previously described, in addition, by the personnel changes to the Group Executive
Board, as well as some exchange rate movements.
Personnel changes during 2023 in the Group Executive Board:
• Gavin Steiner joined the Group Executive Board as Chief Technology Officer in April 2023.
• Christoph Wegener joined the Group Executive Board in August 2023. He took on the newly created
role of Chief Markets Officer and also acts as President of the Bag-in-Box and Spouted Pouch
business. Ross Bushnell, former President of Bag-in-Box and Spouted Pouch, left the Group end of
July 2023.
• Ann-Kristin Erkens joined the Group Executive Board as Chief Financial Officer in November 2023
and replaced Frank Herzog, who resigned effective December 31, 2022.
• Fan Lidong retired from his role as President and General Manager of Asia-Pacific North in November
2023. Angela Lu, previously President and General Manager of Asia-Pacific South, took on the
reinstated role of President and General Manager of Asia-Pacific on the same date.
• Suzanne Verzijden, Chief People and Culture Officer, and Ian Wood, Chief Supply Officer, resigned
as members of the Group Executive Board effective December 31, 2023.
The personnel changes in the Group Executive Board in the course of 2023, resulted in a forfeiture of
76,252 PSUs and RSUs out of the 2021, 2022 and 2023 grants, representing a total value (at grant fair
value) of CHF 1.7 million.
Impact of currency exchange rates
Seven members of the Group Executive Board were paid in foreign currencies during 2023. 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.
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Figure 19 illustrates the actual compensation mixes for the CEO and the Group Executive Board in 2023,
highlighting the strong focus on short- and long-term variable compensation elements.
Figure 19: Overview of the actual compensation mix in 2023 for the CEO and the Group Executive
Board (excl. CEO) (reflects the amount granted under the LTIP).
CEO
Group Executive Board
excl. CEO (average)
Fixed
components
35%
Fixed
components
49%
Variable
components
65%
Fixed components
total – 35%
Base salary – 29%
Pension benefits/
other benefits – 6%
Variable
components
51%
Fixed components
total – 49%
Base salary – 38%
Pension benefits/
other benefits – 11%
Variable components
total – 51%
Target short-term
incentive – 14%
Granted long-term
incentive – 37%
Variable components
total – 65%
Target short-term
incentive – 6%
Granted long-term
incentive – 59%
For the Group Executive Board members excluding the CEO, the fixed components (annual base salary
and pension benefits/other benefits) vary between 30% and 94% (49% on average) of the total
compensation paid and the variable components vary between 6% and 70% (51% on average) of total
compensation paid in 2023.
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.
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 granted), 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-fulfillment 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.
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. Reflecting
that the build-up period for members of the Group Executive Board was still ongoing in the reporting
year, the annual shareholding assessment showed full compliance with the regulation. The members
in office since the Company’s IPO in 2018 already fulfill the required shareholdings despite the ongoing
build-up period.
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Shareholdings (audited)
The following tables show the shareholdings as well as holdings of option rights of the members of the Board of Directors as well as the members of the Group Executive Board as of December 31, 2023 and
December 31, 2022.
Board of Directors
Table 3: Shareholdings of the Board of Directors as of December 31, 2023, including comparative figures for the prior year.
Andreas Umbach (Chair)
Matthias Währen (Member)
Mariel Hoch (Member)
Werner Bauer (Member)
Abdallah al Obeikan (Member)
Wah-Hui Chu (Member)
Florence Jeantet (Member)
Laurens Last (Member)
Martine Snels (Member)
Colleen Goggins (Member)
Total
Number of directly
or beneficially held
SIG shares¹
Number of
indirectly held
shares
Total
shareholdings
Dec. 31, 2023
Total
shareholdings
Dec. 31, 2022
Total
options2 held on
Dec. 31, 2023
Total
options2 held on
Dec. 31, 2022
110,186
38,603
24,277
63,340
8,240
55,561
2,184
5,550
9,507
-
317,448
–
–
–
–
1,827,1103
–
35,921,1886
–
–
37,748,298
110,186
38,603
24,277
63,340
1,835,350
55,561
2,184
35,926,738
9,507
–9
38,065,746
100,407
34,414
20,141
59,516
1,832,2374
51,915
–5
35,132,1707
5,683
39,690
37,276,173
–
–
–
–
–
–
–
1,073,4308
–
–9
1,073,430
–
–
–
–
–
–
–
–
–
–
–
Includes indirectly shares held by Abdallah al Obeikan via his shareholding in Al Obeikan Group for Investment Company CJS.
1 Ordinary registered shares of SIG Group AG, including blocked shares.
2 Options to purchase ordinary registered shares of SIG Group AG
3 Shares indirectly held by Abdallah al Obeikan via his shareholding in Al Obeikan Group for Investment Company CJS
4
5 Florence Jeantet was elected as member of the Board of Directors at the 2023 AGM, so she was not in office on December 31, 2022.
6 Shares indirectly held by Laurens Last via Clean Holding B.V.
7
8 Through reverse convertible products held by Laurens Last via Clean Holding B.V.
9 The mandate of Colleen Goggins ended at the 2023 AGM, so the Shareholding Guidelines and disclosure obligations no longer apply for her.
Includes indirectly held shares by Laurens Last via Clean Holding B.V.
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Group Executive Board
Table 4: Shareholdings of the members of the Group Executive Board as of December 31, 2023, including comparative figures for the prior year.
Number of directly
or beneficially held
SIG shares¹
Number
of RSUs held2
Number of
indirectly held
shares
Total
shareholdings
Dec. 31, 2023
Total
shareholdings
Dec. 31, 2022
Number of PSUs3
held
Dec. 31, 2023
Number of PSUs3
held
Dec. 31, 2022
Total
options⁴ held on
Dec. 31, 2023
Total
options⁴ held on
Dec. 31, 2022
Samuel Sigrist (CEO)
Ann-Kristin Erkens (CFO)
Gavin Steiner (CTO)
Suzanne Verzijden (CPCO)
Christoph Wegener (CMO)
Ian Wood (CSO)
Abdelghany Eladib
(President & General Manager,
India Middle East and Africa)
Angela Lu
(President & General Manager,
Asia Pacific)
José Matthijsse
(President & General Manager, Europe)
Ricardo Rodriguez
(President & General Manager,
Americas)
Frank Herzog
Ross Bushnell
Fan Lidong
Total
220,000
–
–
–
21,731
110,000
7,920
–
–
–
–
–
–
359,651
–
–
–
3,416
–
–
–
–
–
–
–
–
–
3,416
–
–
–
–
–
–
–
–
–
225,0006
–
–
–
225,000
220,000
–
–
3,416
21,731
110,000
210,000
–5
–5
6,831
–5
100,000
182,146
24,019
13,141
3,048
21,628
27,037
176,207
–5
–5
4,554
–5
94,085
–
–
–
–
26,525
-
–
–5
–5
–
–5
–
7,920
7,920
42,440
27,109
14,840
14,840
–
–
225,000
–8
–9
–10
588,067
–
–
235,0007
–
–
181,478
741,229
26,803
42,440
60,374
–8
–9
–10
443,076
13,662
27,109
70,564
16,285
13,662
48,310
491,547
–
–
–
–8
–9
–10
41,365
–
–
–
–
–
–
14,840
1 Ordinary registered shares of SIG Group AG.
2 The RSUs will vest in SIG shares.
3 The PSUs will vest, based on performance conditions, in SIG shares.
4 Options to purchase ordinary registered shares of SIG Group AG
5 Ann-Kristin Erkens, Gavin Steiner and Christoph Wegener joined the Group Executive Board during 2023, so the Shareholding Guidelines and disclosure obligations did not apply to them as of December 31, 2022.
6 Shares indirectly held by Ricardo Rodriguez via his shareholding in Artmat.
7
8 Frank Herzog (former CFO) left the Group Executive Board as of Dezember 31, 2023, so the Shareholding Guidelines and disclosure obligations no longer apply to him.
9 Ross Bushnell (former President of Bag-in-Box and Spouted Pouch) left the Group Executive Board as of July 31, 2023, so the Shareholding Guidelines and disclosure obligations no longer apply to him.
10 Lidong Fan (former President and General Manager of Asia-Pacific North) left the Group Executive Board as of November 1, 2023, so the Shareholding Guidelines and disclosure obligations no longer apply to him.
Includes indirectly shares held by Ricardo Rodriguez via his shareholding in Artmat.
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Functions of the members of the Board of Directors and members of the Group Executive Board
(audited)
Further activities and functions of the members of the Board of Directors and of the members of the
Group Executive Board are listed in the relevant sections for each body in the Corporate Governance
Report.
Board of Directors
Mandates in year 2023
Abdallah al Obeikan Member of the board of directors of Arabian Shield Cooperative Insurance
Company
For a summary of mandates with a business purpose of members of the Board of Directors respectively
the Group Executive Board, acting during 2023, please refer to the following tables.
Member of the board of directors and CEO of Obeikan Investment Group
and chair of Obeikan AGC Glass Company
Table 5: Mandates of the members of the Board of Directors in 2023:
Board of Directors
Mandates in year 2023
Chair of Riyadh Polytechnic Institute
Member of the board of directors of National Water Company
Member of the board of directors of Social Development Bank
Member of the advisory boards of KSA agencies
Andreas Umbach
Chair of the board of directors of Landis+Gyr Group AG
Martine Snels
CEO of L’Advance BV
Chair of the supervisory board of Techem Energy Services GmbH
Chair of the board of directors of Rovensa SA (until September 2023)
Chair of the board of directors of Schurter Group AP
(since December 2023)
President of the Zug Chamber of Commerce
Werner Bauer
Vice chair of the board of directors of Givaudan SA (until December 2023)
Vice chair of the board of directors of Bertelsmann SE & Co. KGaA
Chair of the board of trustees at the Bertelsmann Foundation
Member of the supervisory board of Prodrive Technologies
Member of the board of directors of Electrolux Professional AB
Member of the supervisory board of URUS Group LLC (ended in 2023)
Matthias Währen
Member of the board of directors of Keto Swiss AG (until June 2023)
Member of the board of directors of Bloom Biorenewables SA
Member of the board of directors ph. AG (until December 2023)
Member of the board of trustees of the Givaudan Foundation
and the HBM Foundation
Wah-Hui Chu
Chair of iBridget TT International Limited
Colleen Goggins2
Member of the board of directors of TD Bank Group
Member of the board of directors of Mettler Toledo International
(ended in 2023)
Mariel Hoch
Partner at Bär & Karrer
Vice chair of the board of directors of Comet Holding AG
Member of the board of directors of Komax Holding AG
Member of the board of directors of MEXAB AG
Florence Jeantet1
Senior Vice President, Chief Sustainability Officer at Danone
(until September 2023)
Advisor to the Economic Council in France
Laurens Last
Director of TSAL Family office B.V.
Director of Lorenzo Marine Ltd.
Director of Roque Marine Ltd.
Member of the supervisory board of Bayer AG
Member of the board of directors of IQVIA
Member of the advisory boards of ZO Skin Health, Sabert Inc.
and Acacium
1 Florence Jeantet was elected as member of the Board at the Annual General Meeting in April 2023. The mandates are therefore
provided for the period from April 20, 2023 until December 31, 2023.
2 Colleen Goggins left the Board of Directors at the Annual General Meeting in April. The mandates are therefore provided for the period
January 1, 2023 until April 20, 2023.
BackContentsSIGAnnual Report 2023 159
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Our Governance
Financials
Appendix
Contents
Our Governance continued
Compensation Report continued
Table 6: Mandates of the members of the Group Executive Board in 2023
Group Executive
Board
Samuel Sigrist
Ann-Kristin Erkens1
Ian Wood
Gavin Steiner2
Suzanne Verzijden
Christoph Wegener3
José Matthijsse
Angela Lu
Ricardo Rodriguez
Abdelghany Eladib
Ross Bushnell4
Lidong Fan5
Mandates in year 2023
None
Member of the supervisory board of SCHOTT Pharma AG & Co. KGaA
None
None
Member of the supervisory board of Essity
None
None
None
None
None
None
None
Loans granted to members of the Board of Directors or the Group Executive
Board (audited)
SIG’s Articles of Association do not foresee 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.
Outlook
With regard to the STIP, the Compensation Committee has recommended to the Board to increase as
of 2024 at Group level the weighting of the free cash flow component in the Short-Term Incentive Plan
from 15% to 20% by decreasing the weighting of the adjusted EBITDA component from 55% to 50%
and at regional level, to replace the regional adjusted operating net working capital as a percent of
revenue component by a free cash flow component.
To further strengthen the alignment of shareholders’ interests with those of the members of the Board
of Directors and members of the Group Executive Board, the Board of Directors decided to increase the
level of shareholding requirement as of 2024. The shareholding requirement for members of the Board
of Directors will be increased from 100% of the annual base fee to 200% of the annual base fee.
Shareholding requirements for the CEO will be increased from 200% to 300%, for the CFO it will be
raised from 100% to 150% and for all other members of the Group Executive Board from 100% to 120%
of the annual base salary. While the build-up period for the members of the Board of Directors will be
prolonged from three to five years, the build-up period for all the members of the Group Executive
Board remains unchanged with at five years. The Company is convinced that with that revised
shareholding requirement a further alignment with the interests of external stakeholders and the Board
of Directors and the Group Executive Board with a long-term focus can be achieved.
1 Ann-Kristin Erkens joined the Company on November 1, 2023. The list covers the relevant mandates for the period from
November 1, 2023 until December 31, 2023
2 Gavin Steiner joined the Company on April 1, 2023. The list covers relevant mandates for the period from April 1, 2023 until
December 31, 2023.
3 Christoph Wegener was appointed as a member of the Group Executive Board as of August 1, 2023. The list covers the relevant
mandates for the period from August 1, 2023 until December 31, 2023.
4 Ross Bushnell left the Company on July 31, 2023. The mandates provided for the period from January 1, 2023 until July 31, 2023.
5 Lidong Fan retired on November 1, 2023. The mandates provided for the period from January 1, 2023 until November 1, 2023.
BackContentsSIGAnnual Report 2023 160
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Our Governance
Financials
Appendix
Contents
Our Governance continued
Report of the statutory auditor
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
December 31, 2023. The audit was limited to the information pursuant to article 734a-734f CO in the
tables marked ‘audited’ on pages 147 to 152 and pages 156 to 159 of the Compensation Report.
In our opinion, the information pursuant to article 734a-734f CO in the Compensation Report pages
141 to 159 complies 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 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.
Auditor’s responsibilities for the audit of the Compensation Report
Our objectives are to obtain reasonable assurance about whether the information pursuant to article
734a-734f CO 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.
Our opinion on the Compensation Report does not cover the other information and we do not express
any form of assurance conclusion thereon.
PricewaterhouseCoopers AG
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.
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. It is also responsible for designing
the Compensation system and defining individual Compensation packages.
Bruno Rossi
Licensed audit expert
Auditor in charge
Basel, February 22, 2024
Manuela Baldisweiler
Licensed audit expert
BackContentsSIGAnnual Report 2023 Financials
In this section
162 Consolidated financial statements
232 Financial statements of the Company
162
Strategic Report
Our Governance
Financials
Appendix
Contents
Consolidated financial statements
In this section
Consolidated financial statements
for the year ended December 31, 2023
SIG Group AG
162
163
164
166
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
167
172
181
195
207
215
221
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
229 Report of the statutory auditor on the audit of
the consolidated financial statements
See note 3 for further details on the consolidated
financial statements.
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 loss of joint venture
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:
– recognized in 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 €)
Note
6, 7
8
8
24
32
9
28
30
10
10
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
3,230.3
(2,468.9)
761.4
97.6
(135.3)
(258.9)
(15.6)
(0.1)
449.1
14.5
(139.6)
(125.1)
324.0
(80.8)
243.2
(69.8)
–
53.2
(16.6)
226.6
0.64
0.64
2,779.9
(2,204.7)
575.2
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
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Financials
Appendix
Contents
Consolidated financial statements
Consolidated statement of financial position
(In € million)
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax assets
Other current assets
Total current assets
Non-current receivables
Investment in joint venture
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
As of
Dec. 31,
2023
As of
Dec. 31,
2022
Note
17
16
15
32
21
16
27
32
12
13
14
30
21
280.9
422.7
384.4
6.0
23.4
1,117.4
13.2
0.4
60.6
1,795.4
267.3
4,054.4
191.8
32.0
6,415.1
7,532.5
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
(In € million)
Trade and other payables
Loans and borrowings
Current tax liabilities
Employee benefits
Provisions
Deferred revenue
Other current liabilities
Total current liabilities
Non-current payables
Loans and borrowings
Deferred tax liabilities
Employee benefits
Provisions
Deferred revenue
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
As of
Dec. 31,
2023
As of
Dec. 31,
2022
Note
18
23
32
30
19
20
21
18
23
32
30
19
20
21
25
25
25
1,006.4
264.4
49.3
61.0
15.7
102.9
14.2
1,513.9
14.9
2,187.4
244.2
110.4
25.1
284.4
55.1
2,921.5
4,435.4
3.4
2,684.9
(149.0)
(1.5)
559.3
3,097.1
7,532.5
1,036.8
489.2
46.3
60.9
26.6
92.8
23.4
1,776.0
17.4
2,185.5
261.3
104.6
21.1
264.8
113.2
2,967.9
4,743.9
3.4
2,868.6
(79.2)
(1.3)
263.7
3,055.2
7,799.1
SIGAnnual Report 2023 164
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Financials
Appendix
Contents
Consolidated financial statements
Consolidated statement of changes in equity
(In € million)
Equity as of January 1, 2023
Profit for the period
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translations of foreign operations:
– recognized in translation reserve
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
Acquisition of non-controlling interest
Share-based payments
Purchase of treasury shares
Settlement of share-based payment plans and arrangements
Dividends
Total transactions with owners
Equity as of December 31, 2023
Note
Share
capital
Additional
paid-in
capital
Translation
reserve
Hedging
reserve
Treasury
shares
Retained
earnings
Total equity
3.4
2,868.6
(79.2)
–
(1.3)
263.7
243.2
3,055.2
243.2
30
27, 28
31
25
25, 31
25
–
–
–
3.4
–
–
(3.5)
(180.2)
(183.7)
2,684.9
(69.8)
(69.8)
(69.8)
–
(149.0)
–
–
–
–
–
–
(9.4)
9.2
(0.2)
(1.5)
53.2
53.2
296.4
(3.3)
6.9
(4.4)
(0.8)
559.3
(69.8)
53.2
(16.6)
226.6
(3.3)
6.9
(9.4)
1.3
(180.2)
(184.7)
3,097.1
SIGAnnual Report 2023
165
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Financials
Appendix
Contents
Consolidated financial statements
Consolidated statement of changes in equity continued
(In € million)
Equity as of January 1, 2022
Profit for the period
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translations of foreign operations:
– recognized in 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 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 December 31, 2022
Note
Share
capital
Additional
paid-in
capital
Translation
reserve
Hedging
reserve
Treasury
shares
Retained
earnings
Total equity
3.0
2,140.0
(122.3)
–
(0.1)
307.6
37.8
2,328.2
37.8
28
30
28
25, 28
31
25
25, 31
25
–
–
0.4
0.4
3.4
–
–
886.3
(9.8)
(147.9)
728.6
2,868.6
43.1
43.1
43.1
38.3
38.3
38.3
(38.3)
–
(79.2)
–
–
43.1
38.3
(81.8)
(0.4)
37.4
(38.3)
886.7
5.4
(16.3)
–
(147.9)
727.9
3,055.2
–
–
(16.3)
15.1
(1.2)
(1.3)
(81.8)
(81.8)
(44.0)
5.4
(5.3)
0.1
263.7
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Financials
Appendix
Contents
Consolidated financial statements
Consolidated statement of cash flows
(In € million)
Cash flows from operating activities
Profit for the period
Adjustments for:
Depreciation and amortization
Impairment losses
Net change in fair value of operating derivatives
Realized gain on settlement of deal-contingent
derivative
Share-based payment expense
Gain on sale of property, plant and equipment and
non-current assets
Share of loss of joint venture
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, including
advance payments
Change in provisions and employee benefits
Change in other assets and liabilities, including
deferred revenue
12-14
12
28
31
24
32
Net cash from operating activities
11
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
Note
(In € million)
243.2
412.2
4.8
(9.2)
–
6.9
(1.5)
0.1
125.1
(124.9)
–
80.8
(93.9)
643.6
30.4
10.1
(6.3)
(5.1)
(9.4)
663.3
37.8
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
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
(0.5)
–
(700.4)
61.1
Note
28
28
Cash flows from investing activities
Acquisition of businesses, net of cash acquired
Settlement of deal-contingent derivatives
Acquisition of property, plant and equipment and
intangible assets
12, 14
(398.9)
(299.7)
Proceeds from sale of property, plant and
equipment and other assets
Investment in/proceeds from sale of securities
Interest received
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of costs for placement of shares
Acquisition of non-controlling interest
Proceeds from loans and borrowings
Repayment of loans and borrowings
Settlement of deal-contingent derivative
Payment of lease liabilities
Purchase of treasury shares
Sale of treasury shares
Payment of dividends
Other
Net cash (used in)/from financing activities
Net (decrease)/increase 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
28
21
11
25
25
27
23
23
28
23
25
25, 31
25
11
2.3
(2.4)
3.6
(395.9)
–
–
(3.3)
725.1
(961.2)
–
(47.2)
(9.4)
1.3
(180.2)
(1.6)
(476.5)
(209.1)
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
503.8
304.5
(13.8)
0.2
17
280.9
503.8
SIGAnnual Report 2023 167
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Financials
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Contents
Consolidated financial statements
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 in the year are highlighted.
1 Reporting entity and overview of the Group
SIG Group AG (“SIG” or the “Company”) is domiciled in Switzerland and has since September 28, 2018
been listed on SIX Swiss Exchange.
The consolidated financial statements for the year ended December 31, 2023 comprise the Company
and its subsidiaries (together referred to as the “Group” or the “SIG Group”). The subsidiaries and joint
venture reflected in the consolidated financial statements are listed in note 27.
For information about the acquisitions of Scholle IPN on June 1, 2022 and Evergreen’s chilled carton
business in Asia Pacific (“Evergreen Asia”) on August 2, 2022, see note 28.
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 December 31, 2023 have been prepared
in accordance with IFRS Accounting Standards. They were approved by the Company’s Board of
Directors on February 22, 2024. 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 cost basis except for certain
financial instruments such as derivatives and equity securities, contingent purchase price obligations
relating to business combinations and liabilities for cash-settled share-based payment plans that are
measured at fair value. Furthermore, certain components of inventory are measured at net realizable
value and defined benefit obligations are measured under the projected unit credit method.
SIGAnnual Report 2023 168
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Our Governance
Financials
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Contents
Consolidated financial statements
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
Our operating
performance
Our operating assets
and liabilities
Our financing and
financial risk management
Our group structure
and related parties
Our people
Other
1 Reporting entity and
6 Revenue
12 Property, plant and
22 Capital management
27 Group entities
30 Employee benefits
32 Income tax
23 Loans and borrowings
28 Business combinations
31 Share-based
33 Financial
24 Finance income and
29 Related parties
payment plans and
arrangementss
instruments
and fair value
information
34 Contingent
liabilities
35 Subsequent
events
overview of the Group
2 Preparation of the
consolidated financial
statements
3 Structure of the
consolidated financial
statements
4 Key events and
transactions
5 General accounting
policies and topics
7 Segment information
8 Other income and
equipment
13 Right-of-use assets
expenses
14
Intangible assets
expenses
9 Alternative
performance
measures
10 Earnings per share
11 Cash flow information
15
Inventories
25 Equity
26 Financial risk
management
16 Trade and other
receivables
17 Cash and cash
equivalents
18 Trade and other
payables
19 Provisions
20 Deferred revenue
21 Other assets and
liabilities
Potentially material accounting policies and information about management judgments, estimates and assumptions are provided in the respective notes throughout the consolidated financial statements.
Potentially material 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.
4 Key events and transactions
The following key events and transactions took place in the year ended December 31, 2023.
Refinancing
The Group accessed an unsecured bridge loan facility of €350 million on June 16, 2023. The proceeds from this bridge loan, together with available cash, were used to repay €450 million of the Group’s senior
unsecured notes on June 20, 2023. The bridge loan facility was repaid in the last quarter of 2023. See further note 23.
Changes in segment reporting
The Group changed its internal reporting structure as of November 1, 2023. The Group’s Indian operations and the former segment Middle East and Africa (“MEA”) are since then reported as a new segment:
India, Middle East and Africa (“IMEA”). The Indian operations were previously part of Asia Pacific (“APAC”). See further note 7.
SIGAnnual Report 2023 169
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Financials
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Contents
Consolidated financial statements
Organizational changes in the Group Executive Board and the Board of Directors
5.3 Adoption of standards and interpretations in 2024 and beyond
A number of new or amended standards and interpretations are effective for annual periods
beginning on January 1, 2024 or later and have not been applied in preparing these 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 judgments, estimates and assumptions
In preparing these consolidated financial statements, management has made judgments, 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 recognized 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 judgments,
estimates and assumptions:
• Liabilities for various customer incentive programs – see notes 6 and 18.
•
• Business combinations and fair value assessments, including fair value assessment of contingent
Impairment testing and recognition of impairment losses – see notes 12 and 14.
consideration – see notes 26, 28 and 33.
• Measurement of obligations under defined benefit plans – see note 30.
• Determination of income tax liabilities – see note 32.
• Realization of deferred tax assets – see note 32.
The impacts of global economic uncertainty on the SIG Group broadly remain unchanged compared
to the year ended December 31, 2022 as described below.
Gavin Steiner joined the Group Executive Board as Chief Technology Officer on April 1, 2023. He took
over this role from Ian Wood, who became Chief Supply Chain Officer.
Christoph Wegener joined the Group Executive Board on August 1, 2023. He took on the newly created
role of Chief Markets Officer and also acts as President of Bag-in-Box and Spouted Pouch. Ross
Bushnell left the Group and his role as President of Bag-in-Box and Spouted Pouch on July 31, 2023.
Ann-Kristin Erkens joined the Group Executive Board as Chief Financial Officer on November 1, 2023.
The former Chief Financial Officer, Frank Herzog, left the Group as of December 31, 2022.
Fan Lidong retired from his role as President and General Manager of Asia-Pacific North on
November 1, 2023. Angela Lu, previously President and General Manager of Asia-Pacific South, took
on the reinstated role of President and General Manager of Asia-Pacific on the same date. The roles
of Presidents and General Managers of Asia-Pacific North and Asia-Pacific South will not be replaced.
Abdelghany Eladib became President and General Manager of IMEA on November 1, 2023. He was
previously President and General Manager of MEA. His role changed due to changes in the composition
of the Group’s segments (see “Changes in segment reporting” above).
Ian Wood left the Group and his role as Supply Chain Officer as of December 31, 2023.
Suzanne Verzijden left her role as Chief People and Culture Officer as of December 31, 2023.
Florence Jeantet was elected to the Board of Directors at the Annual General Meeting on April 20, 2023.
Colleen Goggins did not stand for re-election.
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 the year
ended December 31, 2023 are consistent with those applied in the consolidated financial statements
for the year ended December 31, 2022.
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 January 1, 2023. The Group has applied the mandatory exception from deferred
tax accounting for pillar two top-up income taxes under the amendment to IAS 12 Income Taxes
(International Tax Reform – Pillar Two Model Rules) since its publication on May 23, 2023. There was
no impact on the Group’s consolidated financial statements of adopting this amendment (see also
note 32). The Group also has applied Disclosure of Accounting Policies (Amendments to IAS 1 and
IFRS Practice Statement 2) for the first time, with no significant impact on the accounting policy
information already provided. The other applicable standards and interpretations also had no, or no
material, impact on the consolidated financial statements.
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Consolidated financial statements
Global economic uncertainty
Foreign operations
Events such as the war in Ukraine, the conflicts in the Middle East and outbreaks of various COVID-19
variants, together with raw material and energy prices still at elevated levels, disruption on major
shipping routes and generally high levels of inflation, are contributing to global economic uncertainty.
High levels of inflation may indirectly impact the demand in the short term as consumers adjust to
higher price levels.
These events have significant impacts on the global economy in general, impacting 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. These effects can be, and have been, 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. Prior to the acquisition
of Scholle IPN, the Group only had 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.
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 generally translated into Euro at average rates for the reported
periods as these rates generally 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 recognized in other comprehensive income, in
the translation reserve.
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
5.5 Accounting policies and other topics relating to the consolidated financial
The following significant exchange rates against the Euro applied during the periods presented:
statements as a whole
5.5.1 Foreign currency
Items included in the financial statements of individual Group entities are recognized 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, or at average rates that approximate 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 recognized in profit or loss.
Average rate for the year
Spot rate as of
Dec. 31,
2023
Dec. 31,
2022
Dec. 31,
2023
Dec. 31,
2022
Brazilian Real (BRL)
Chinese Renminbi (CNY)
Mexican Peso (MXN)
Swiss Franc (CHF)
Thai Baht (THB)
US Dollar ($ or USD)
5.40157
7.65023
19.18382
0.97177
37.60705
1.08138
5.42968
7.07715
21.15826
1.00514
36.86058
1.05277
5.36180
7.85090
18.72311
0.92600
37.97307
1.10500
5.63860
7.35820
20.85601
0.98470
36.83504
1.06660
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Consolidated financial statements
5.5.2 Lease accounting
The Group as lessor
The Group deploys filling lines and other related equipment at its customers’ sites under both lease
and sale 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 contracts that do not contain such terms are accounted for in
accordance with IFRS 15 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.
Lease contracts in the bag-in-box, spouted pouch and chilled carton businesses are accounted for as
operating or finance leases in accordance with IFRS 16 Leases. The impact of these lease contracts is
not material for the Group.
The Group as lessee
The Group leases office buildings, production-related buildings and equipment, warehouses and cars.
The majority of the Group’s leased assets are recognized as right-of-use assets with corresponding
lease liabilities. See notes 13 and 23 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 recognized 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 recognized 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 the SIG trademarks 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 recognized in profit or loss if the carrying amount of an asset or CGU exceeds
its recoverable amount. An impairment loss in respect of goodwill is not reversed. For other assets, an
impairment loss may be reversed.
Additional 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 recognized in the statement of
financial position but are disclosed separately. If realization of a contingent asset becomes virtually
certain, it is no longer considered contingent and is recognized as an asset.
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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
Dec. 31,
2023
Year ended
Dec. 31,
2022
3,067.4
2,621.0
162.9
3,230.3
158.9
2,779.9
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 pouch
Filling line and other related equipment revenue
Service revenue
Other revenue
Total revenue
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
2,825.3
225.5
179.0
0.5
3,230.3
2,415.1
200.3
164.0
0.5
2,779.9
Revenue from the sale of carton, bag-in-box and spouted pouch is mainly composed of revenue from
the sale of aseptic carton sleeves and closures.
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.
The Group’s revenue is disaggregated by type of business in the table below.
(In € million)
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
Revenue from the carton business
Revenue from the bag-in-box and spouted pouch businesses
Total revenue
2,626.3
604.0
3,230.3
2,417.3
362.6
2,779.9
Revenue from the carton business mainly relates to the provision of aseptic carton packaging solutions
but also to the provision of chilled carton packaging solutions in Asia.
Notes 18 and 20 include information about the Group’s liabilities relating to various incentive programs,
advance payments from customers and deferred revenue, which had or will have an impact on the
amount of revenue recognized.
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Accounting policy, significant judgments 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 recognized 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 the deployment
of filling lines and other related equipment under contracts accounted for as sale contracts is
recognized at a point in time, while revenue from service contracts is recognized over time.
Lease payments for filling lines and other related equipment that are deployed under operating
lease contracts are recognized on a straight-line basis over the lease term. 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 recognized as a deferred revenue liability in the
statement of financial position, and recognized 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 recognized. The amount of sales incentives expected to be earned or taken
by customers in conjunction with incentive programs 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 programs
being offered. Estimates are reviewed quarterly for possible revisions.
7 Segment information
The Group has four operating segments, which are also the reportable segments: Europe, India, Middle
East and Africa (“IMEA”), Asia Pacific (“APAC”) and Americas.
Changes in the Group’s internal reporting structure, including changes to the reporting of information
to the Group’s Chief Operating Decision Maker (“CODM”) for resource allocation and assessment
of segment performance, were made as of November 1, 2023 and resulted in changes to two of the
Group’s segments. To better leverage similarities in consumer needs and consumption patterns, the
Indian operations are since the changes in the internal reporting structure managed with the Middle
East and African operations. The former segment MEA thereby became IMEA. The Indian operations
were previously part of APAC. To reflect these changes in the composition of the Group’s segments, the
previously reported comparative segment information has been restated. The segment information is
reported as if the changes had taken place as of January 1, 2022.
The packaging solution offered by the segments consists of filling lines and other related equipment,
packaging material and after-market services. Prior to the acquisition of Scholle IPN on June 1, 2022,
all segments provided the same aseptic carton packaging solutions. The acquisition of Scholle IPN
did not result in a change in the Group’s segmentation. The acquired bag-in-box and spouted pouch
business was allocated to Europe, MEA, APAC and Americas. Since the acquisition of Evergreen Asia
on August 2, 2022, APAC also provides chilled carton packaging solutions.
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.
IMEA covers the Group’s customers in India, Middle East and Africa. The operations of the former joint
ventures in the Middle East, including an aseptic carton production plant, are part of this segment. In
addition, IMEA includes production of barrier film and fitments for bag-in-box and spouted pouches
and an assembly plant in India for filling lines and other related equipment used for bag-in-box and
spouted pouches. From 2025, IMEA will also include the Group’s first aseptic carton production plant
in India.
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 and the
assembly of filling machines for the chilled market in Asia.
Americas covers the Group’s customers in North and South America. South America has one aseptic
carton production plant. Commercial production of aseptic carton sleeves for the North American
market started at the Group’s first plant in Mexico in February 2023. Prior to that, North America was
primarily supplied with aseptic carton sleeves from the Group’s European and Asian plants. 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.
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 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).
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Segment financial information
The following tables present financial information about the Group’s segments and Group Functions. The same measurement basis is used when presenting the segment information as is used in the Group’s
consolidated financial statements.
(In € million)
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
(In € million)
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
Europe
984.1
398.6
1,382.7
278.7
(85.7)
(24.8)
(13.1)
(37.9)
Europe
841.8
397.2
1,239.0
200.5
(70.1)
(25.0)
14.5
(10.5)
IMEA5
404.0
19.3
423.3
106.7
(85.2)
(30.2)
(16.9)
(47.1)
IMEA5
371.4
7.3
378.7
93.4
(63.3)
(7.7)
(47.2)
(54.9)
Year ended December 31, 2023
Americas
segments
Total
Group
Functions
Reconciling
items
905.1
7.7
912.8
210.2
(102.2)
(53.3)
(28.8)
(82.1)
3,229.3
468.8
3,698.1
871.6
(402.6)
(146.5)
(110.1)
(256.6)
1.0
66.9
67.9
(68.6)
6.0
(17.2)
23.2
6.0
–
(535.7)
(535.7)
–
–
–
–
–
APAC5
936.1
43.2
979.3
276.0
(129.5)
(38.2)
(51.3)
(89.5)
Year ended December 31, 2022
APAC5
Americas
segments
Total
Group
Functions
Reconciling
items
867.7
14.3
882.0
272.5
(87.1)
(32.0)
4.7
(27.3)
697.4
7.9
705.3
141.1
(54.4)
(17.0)
(28.6)
(45.6)
2,778.3
426.7
3,205.0
707.5
(274.9)
(81.7)
(56.6)
(138.3)
1.6
74.7
76.3
(55.3)
(5.7)
(26.0)
20.3
(5.7)
–
(501.4)
(501.4)
–
–
–
–
–
Total
3,230.3
–
3,230.3
803.0
(396.6)
(163.7)
(86.9)
(250.6)
Total
2,779.9
–
2,779.9
652.2
(280.6)
(107.7)
(36.3)
(144.0)
1 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.
2 Refer to note 11 for additional details about capital expenditure and net capital expenditure.
3 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 The Group’s Indian operations are reported as if they had been included in IMEA (previously MEA) throughout the two reporting
periods. The Indian operations were included in APAC until November 1, 2023. See further the introduction to this note.
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Disaggregation of segment revenue
The following tables present revenue from transactions with external customers for the segments, split by major product/service line.
(In € million)
Revenue from the sale of carton, bag-in-box and spouted pouch
Filling line and other related equipment revenue
Service revenue
Other revenue
Total revenue
(In € million)
Revenue from the sale of carton, bag-in-box and spouted pouch
Filling line and other related equipment revenue
Service revenue
Other revenue
Total revenue
Year ended December 31, 2023
Total
Europe
IMEA1
APAC1
Americas
segments
857.1
77.8
49.2
–
984.1
349.4
24.2
30.4
–
404.0
809.7
70.2
56.2
–
936.1
809.1
53.3
42.7
–
905.1
2,825.3
225.5
178.5
–
3,229.3
Year ended December 31, 2022
Total
Europe
IMEA1
APAC1
Americas
segments
751.9
46.2
43.7
–
841.8
313.3
31.2
26.9
–
371.4
735.9
76.6
55.2
–
867.7
614.0
45.8
37.6
–
697.4
2,415.1
199.8
163.4
–
2,778.3
Group
Functions
–
–
0.5
0.5
1.0
Group
Functions
–
0.5
0.6
0.5
1.6
Total
2,825.3
225.5
179.0
0.5
3,230.3
Total
2,415.1
200.3
164.0
0.5
2,779.9
1 The Group’s Indian operations are reported as if they had been included in IMEA (previously MEA) throughout the two reporting periods. The Indian operations were included in APAC until November 1, 2023. See further the introduction to this note.
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Geographic information
The Group operates nine plants that produce aseptic carton sleeves (two each in Germany and in
China, and one each in Austria, Saudi Arabia, Thailand, Brazil and Mexico). The plant in Mexico became
operational in February 2023. The Group is also building an aseptic carton production plant in India that
is expected to be operational at the end of 2024.
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 centers (one each in Germany, Switzerland and China), three technology centers (one each
in Germany, the UAE and China), one packaging development center in Germany and five training
centers (one each in Germany, the UAE, China, Thailand and Brazil).
In addition, the Group operates 14 plants that produce barrier film and fitments for bag-in-box and
spouted pouches (four in the USA, two each in the Netherlands and in India, and one each in Germany,
Russia, Australia, China, Brazil and Chile). The Group stopped production in Canada in 2023 and is
in the process of vacating the plant. It also operates three assembly 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 centers (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 Group is also
building a new chilled carton production plant in China. Commercial production is expected to start in
the first half of 2024.
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)
China
Germany
USA
United Arab Emirates
Thailand
Switzerland1
Other countries
Total non-current assets
1 The Company’s country of domicile is Switzerland.
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
996.6
961.5
961.3
596.5
556.7
541.6
1,530.0
6,144.2
916.9
1,132.6
973.4
616.0
494.6
505.4
1,547.2
6,186.1
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)
USA
China
Germany
Switzerland
Other countries
Total revenue from external customers
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
423.5
417.8
276.5
15.4
2,097.1
3,230.3
290.2
410.4
235.4
13.4
1,830.5
2,779.9
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.
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Consolidated financial statements
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 excluded in the calculation of the performance measures adjusted EBITDA and adjusted
net income used by management (see note 9).
Composition of other income and expenses
(In € million)
Net foreign currency exchange gain
Net change in fair value of operating derivatives
Realized gain on settlement of deal-contingent derivative
Change in fair value of contingent consideration
Income from miscellaneous services
Rental income
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
Other
Total other expenses
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
4.0
9.2
–
54.6
3.0
0.8
26.0
97.6
–
–
(1.4)
(12.9)
–
(1.3)
(15.6)
–
–
16.6
–
2.6
0.7
4.8
24.7
(19.2)
(39.5)
(24.1)
(17.1)
(74.0)
–
(173.9)
For the year ended December 31, 2023, the Group recognized an unrealized net gain on commodity
and foreign currency derivatives of €9.2 million (an unrealized net loss of 39.5 million for the year
ended December 31, 2022). This arose primarily because the Group entered into commodity derivative
contracts fixing prices for mainly polymers and aluminum at levels below the current forward prices
(above the current forward prices in the year ended December 31, 2022).
The “Other” income category for the year ended December 31, 2023 primarily relates to a reversal of
an acquisition-related provision.
For the year ended December 31, 2022, the Group recognized a net foreign currency exchange loss of
€19.2 million. This mainly related to a realized net loss on foreign currency derivatives.
See note 9 for information about the transaction- and acquisition-related costs, the integration costs,
the change in the fair value of the contingent consideration, the reversal of the provision included in
the “Other” income category and the realized gain on settlement of the deal-contingent derivative
(relating to the acquisition of Scholle IPN). These items are excluded in the calculation of adjusted
EBITDA and adjusted net income.
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.
Adjusted EBITDA and adjusted net income are presented in this note. See note 10 for adjusted earnings
per share, note 11 for net capital expenditure and free cash flow and note 22 for the Group’s net
leverage ratio.
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 amortization 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, unrealized 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.
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Consolidated financial statements
The following table reconciles profit for the period to EBITDA and adjusted EBITDA.
Adjusted net income
(In € million)
Profit for the period
Net finance expense
Income tax expense
Depreciation and amortization
EBITDA
Adjustments to EBITDA:
Unrealized (gain)/loss on operating derivatives
Restructuring costs, net of reversals
Transaction- and acquisition-related costs
Integration costs
Realized gain on settlement of deal-contingent derivatives
Fair value adjustment on inventories
Change in fair value of contingent consideration
Impairment losses
Other
Adjusted EBITDA
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
243.2
125.1
80.8
412.2
861.3
(9.2)
6.0
1.4
12.9
–
–
(58.2)
4.8
(16.0)
803.0
37.8
26.0
51.0
366.7
481.5
39.5
4.9
24.1
17.1
(16.6)
20.6
74.6
6.3
0.2
652.2
The integration costs for the year ended December 31, 2023 and December 31, 2022 and the
transaction- and acquisition-related costs for the year ended December 31, 2022 mainly relate to the
acquisitions of Scholle IPN and Evergreen Asia in 2022 (see note 28).
The change in the fair value of the contingent consideration (including unrealized foreign currency
exchange impacts) in the year ended December 31, 2023 and December 31, 2022 relates to the
remeasurement of the US Dollar contingent consideration for Scholle IPN at fair value as of
December 31, 2023 and December 31, 2022. See further notes 28 and 33.
The “Other” category for the year ended December 31, 2023 includes a reversal of an acquisition-
related provision of €14.7 million. See also note 19.
The settlement of the deal-contingent foreign currency derivatives that the Group entered into
relating to the consideration paid in cash for Scholle IPN and for Evergreen Asia in 2022 resulted in
a total realized gain of €61.1 million in the year ended December 31, 2022, of which €16.6 million is
recognized in profit or loss as part of other income. Due to the designation of the derivatives as hedging
instruments in a cash flow hedge, the larger part of the realized gain reduced the amounts of goodwill
recognized for Scholle IPN and Evergreen Asia. See further note 28.
The fair value adjustment on inventories in the year ended December 31, 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 28). These inventories were subsequently sold.
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 currency exchange
impact of non-functional currency loans, amortization of transaction costs, the net change in
fair value of financing-related derivatives, purchase price allocation (“PPA”) depreciation and
amortization, 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 amortization relates to all
acquisitions of the Group.
The following table reconciles profit for the period to adjusted net income.
(In € million)
Profit for the period
Non-cash foreign currency exchange impact of non-functional
currency loans and realized foreign currency exchange impact
due to refinancing
Amortization of transaction costs
Net change in fair value of financing-related derivative
Realized gain on settlement of deal-contingent derivative
(relating to repayment of loan)
PPA depreciation and amortization – Onex acquisition
PPA amortization – other acquisitions
Net effect of early repayment of loan
Adjustments to EBITDA1
Tax effect on above items
Adjusted net income
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
243.2
37.8
(1.3)
4.8
2.0
–
103.4
47.7
–
(58.3)
(23.3)
318.2
(4.6)
7.0
(9.0)
(15.5)
103.5
34.1
1.0
170.7
(38.2)
286.8
1 For the different adjustments to EBITDA, refer to the adjusted EBITDA table at the beginning of this note.
The realized gain on settlement of the deal-contingent derivative in the year ended December 31, 2022
relates to the repayment of the acquired US Dollar loan of Scholle IPN (see note 28).
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Consolidated financial statements
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 (registered) 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.
Weighted average number
of registered shares
Issued shares as of January 1, 2022
Effect of issue of shares on May 18, 2022
Effect of issue of shares on May 23, 2022
Effect of treasury shares held
Weighted average number of shares as of December 31, 2022 – basic
Effect of share-based payment plans and arrangements
Weighted average number of shares as of December 31, 2022 – diluted
Issued shares as of January 1, 2023
Effect of treasury shares held
Weighted average number of shares as of December 31, 2023 – basic
Effect of share-based payment plans and arrangements
Weighted average number of shares as of December 31, 2023 – diluted
337,520,872
6,871,233
20,619,863
(903,281)
364,108,687
466,019
364,574,706
382,270,872
(56,739)
382,214,133
171,254
382,385,387
The following table shows basic and diluted earnings per share.
(In € million unless indicated)
Profit for the period
Weighted average number of shares for the period – basic
(in numbers)
Basic earnings per share (in €)
Profit for the period
Weighted average number of shares for the period – diluted
(in numbers)
Diluted earnings per share (in €)
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
243.2
37.8
382,214,133
0.64
364,108,687
0.10
243.2
37.8
382,385,387
0.64
364,574,706
0.10
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 basic and diluted adjusted earnings per share.
(In € million unless indicated)
Adjusted net income
Weighted average number of shares for the period – basic
(in numbers)
Adjusted earnings per share – basic (in €)
Adjusted net income
Weighted average number of shares for the period – diluted
(in numbers)
Adjusted earnings per share – diluted (in €)
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
318.2
286.8
382,214,133
0.83
364,108,687
0.79
318.2
286.8
382,385,387
0.83
364,574,706
0.79
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Consolidated financial statements
11 Cash flow information
Free cash flow
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.
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).
Net capital expenditure
The following table reconciles net cash from operating activities to free cash flow.
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.
(In € million)
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 notes
18 and 21), 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.
The following table reconciles capital expenditure to net capital expenditure.
(In € million)
PP&E and intangible assets (net of sales and excluding filling
lines and other related equipment)
Filling lines and other related equipment
Capital expenditure
Upfront cash
Net capital expenditure
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
163.7
232.9
396.6
(146.0)
250.6
107.7
172.9
280.6
(136.6)
144.0
Net cash from operating activities
Acquisition of property, plant and equipment and intangible
assets (net of sales)
Payment of lease liabilities
Free cash flow
Non-cash transactions
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
663.3
578.2
(396.6)
(47.2)
219.5
(280.6)
(34.5)
263.1
Non-cash transactions include the initial recognition of leases on the statement of financial position
(see notes 13 and 23) and the granting of instruments under the Group’s 2023 and 2022 share-based
plans and arrangements (see note 31).
Notably for the year ended December 31, 2023, non-cash transactions also include the €14.7 million
reversal of an acquisition-related provision (see notes 9 and 19). For the year ended December 31, 2022,
non-cash transactions also included the issue and subsequent transfer of 33,750,000 SIG shares
(with a nominal value of CHF 0.01 per share) to CLIL Holding B.V. (“CLIL”, subsequently renamed Clean
Holding B.V.) on June 1, 2022 as part of the consideration for Scholle IPN. The fair value of the shares
was €686.8 million (see notes 25 and 28). In addition, the 15-year lease of the Group’s first aseptic
carton production plant in Mexico commenced in October 2022 (with an initial lease liability and related
right-of-use asset recognized of approximately €29 million each).
There are no other material non-cash transactions for the years ended December 31, 2023 and
December 31, 2022.
Cash outflows under lease contracts
The total cash outflow for the Group’s lease contracts for the year ended December 31, 2023 was
€68.8 million (€48.8 million for the year ended December 31, 2022).
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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 securitization and factoring programs. 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 programs. 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.
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 December 31, 2022
Cost
Accumulated depreciation and impairment losses
Carrying amount as of December 31, 2023
Carrying amount as of January 1, 2022
Additions
Additions through business combinations
Disposals
Depreciation
Impairment losses
Transfers
Effect of movements in exchange rates
Carrying amount as of December 31, 2022
Land
Buildings
Plant and
equipment
Work in
progress
112.0
(8.6)
103.4
106.9
(6.6)
100.3
27.7
–
77.2
–
–
–
–
(1.5)
103.4
265.2
(83.8)
181.4
285.3
(91.8)
193.5
103.3
0.6
80.8
–
(12.1)
–
9.0
(0.2)
181.4
920.5
(542.1)
378.4
1,068.8
(617.7)
451.1
272.7
7.1
101.9
(1.5)
(57.9)
–
53.7
2.4
378.4
364.2
–
364.2
366.0
–
366.0
234.5
280.2
35.8
–
–
–
(185.4)
(0.9)
364.2
Filling
lines
1,274.8
(634.4)
640.4
1,431.5
(747.0)
684.5
632.3
3.8
–
(0.5)
(122.2)
(6.3)
122.1
11.2
640.4
Total
2,936.7
(1,268.9)
1,667.8
3,248.4
(1,453.0)
1,795.4
1,270.5
291.7
295.7
(2.0)
(192.2)
(6.3)
(0.6)
11.0
1,667.8
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Consolidated financial statements
(In € million)
Carrying amount as of January 1, 2023
Additions
Disposals
Depreciation
Impairment losses
Transfers
Effect of movements in exchange rates
Carrying amount as of December 31, 2023
Land
Buildings
Plant and
equipment
Work in
progress
103.4
–
–
–
–
–
(3.1)
100.3
181.4
1.0
–
(15.0)
–
29.8
(3.7)
193.5
378.4
29.6
(0.8)
(70.4)
(0.5)
127.5
(12.7)
451.1
364.2
334.5
–
–
–
(323.1)
(9.6)
366.0
Filling
lines
640.4
22.7
–
(128.8)
(4.3)
167.8
(13.3)
684.5
Total
1,667.8
387.8
(0.8)
(214.2)
(4.8)
2.0
(42.4)
1,795.4
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 recognized 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
Dec. 31,
2023
Year ended
Dec. 31,
2022
202.9
1.7
9.6
214.2
185.4
1.3
5.5
192.2
As of December 31, 2023, the Group had entered into contracts to incur capital expenditure of €140.7 million for the acquisition of PP&E (€144.7 million as of December 31, 2022). 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.
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Consolidated financial statements
Accounting policy, significant judgments 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 recognized 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 recognized as a provision. Subsequent expenditure is capitalized
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 recognized 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 recognized in profit or loss. Land is not depreciated. The estimated useful
lives for the current and comparative periods are as follows:
In connection with the building of the Group’s first Mexican aseptic carton production plant and
the then future project to build an aseptic carton production 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 July 1, 2022. The change has been accounted for on a prospective basis as of
July 1, 2022. For the year ended December 31, 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 July 1, 2022. The average annual decrease in depreciation for this equipment
until the end of 2025 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.
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). These 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
Buildings
Plant and equipment:
Production-related equipment and machinery
Furniture and fixtures
Filling lines (leased assets, SIG as lessor)
15 to 40 years
4 to 25 years
3 to 8 years
10 years
Items of PP&E are reviewed regularly and at least annually to identify whether there is an
impairment indicator. See note 5.5.3 for further details.
A change in the Group’s intended use of certain assets, such as a decision to rationalize 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.
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Consolidated financial statements
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 Dec. 31, 2022
Cost
Accumulated depreciation and
impairment losses
Carrying amount as of Dec. 31, 2023
Carrying amount as of Jan. 1, 2022
Additions
Additions through business
combinations
Depreciation
Effect of movements in exchange rates
Carrying amount as of Dec. 31, 2022
Carrying amount as of Jan. 1, 2023
Additions
Depreciation
Effect of movements in exchange rates
Carrying amount as of Dec. 31, 2023
Land and
buildings
Plant and
equipment
219.2
107.7
(44.0)
175.2
228.5
(58.3)
170.2
129.8
39.2
23.7
(16.9)
(0.6)
175.2
175.2
16.4
(18.5)
(2.9)
170.2
(42.8)
64.9
153.4
(62.1)
91.3
41.0
33.7
5.8
(17.3)
1.7
64.9
64.9
44.4
(22.3)
4.4
91.3
Cars
11.8
(8.3)
3.5
16.5
(10.7)
5.8
3.8
2.2
–
(2.5)
–
3.5
3.5
4.8
(2.7)
0.1
5.8
Total
338.7
(95.1)
243.6
398.4
(131.1)
267.3
174.6
75.1
29.5
(36.7)
1.1
243.6
243.6
65.6
(43.5)
1.6
267.3
The increase in right-of-use assets since December 31, 2022 is mainly due to new leases of production
equipment for closures but also to an expansion of the SIG Tech Centre in China. The expansion was
finalized in August 2023.
The Group’s most significant leases relate to its aseptic carton production plants in China (the second
plant), Saudi Arabia and Mexico as well as the lease of the SIG Tech Center in China. These leases, with
a remaining lease term of between 10 and 17 years, make up the larger part of the carrying amount
of leased land and buildings. A purchase option, exercisable by the Group after 15 years, has been
considered when estimating the lease term and the lease liability for the aseptic carton production plant
in Mexico. The lease of the Mexican plant (the building) commenced in October 2022. The production
equipment for the plant has been invested in directly by the Group. Another significant lease is the
pre-paid land right-of-use in China, with a remaining lease term of 21 years, that was recognized in
connection with the Evergreen Asia acquisition accounting in 2022 (see note 28).
The larger part of the plant and equipment category relates to leases of production equipment for
closures with a lease term of four to five years. The lease term of other assets is most commonly in the
range of three to five years.
Depreciation of right-of-use assets
Depreciation of right-of-use assets is recognized 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
Dec. 31,
2023
Year ended
Dec. 31,
2022
33.6
6.0
3.9
43.5
27.7
5.5
3.5
36.7
The Group has entered into lease contracts that have not yet commenced. The present value of
estimated future lease payments under these lease contracts was approximately €100 million as of
December 31, 2023 (€106 million as of December 31, 2022).
These contracts include to leases of production equipment for closures that are expected to commence
within the next three to nine months. As of December 31, 2023, the committed lease payments also
concern the lease of a new chilled carton production plant in China that is expected to commence in
the first quarter of 2024, and the lease of the Group’s first aseptic carton production plant in India that
is expected to commence at the end of 2024. As of December 31, 2022, the committed lease payments
also concerned the expansion of the SIG Tech Center in China that was finalized in August 2023 and
the new chilled carton production plant in China.
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Accounting policy
At the lease commencement date, the Group recognizes a lease liability and a related right-of-use
asset. The accounting for lease liabilities is described in note 23.
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 recognized as a lease
liability. However, adjustments are required for any lease payments made at or before the lease
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
recognized as a provision.
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.
Right-of-use assets are reviewed regularly and at least annually to identify whether there is an
impairment indicator. See note 5.5.3 for further details.
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
Cost
Accumulated amortization
and impairment losses
Carrying amount as of
December 31, 2022
Cost
Accumulated amortization
and impairment losses
Carrying amount as of
December 31, 2023
3,186.2
357.7
1,035.4
517.3
5,096.6
–
(1.4)
(526.5)
(322.5)
(850.4)
3,186.2
356.3
508.9
194.8
4,246.2
3,127.3
378.9
1,018.3
259.1
4,783.6
–
(4.2)
(616.4)
(108.6)
(729.2)
3,127.3
374.7
401.9
150.5
4,054.4
Carrying amount as of
January 1, 2022
Additions
Additions through
business combinations
Disposals
Amortization
Effect of movements in
exchange rates
Carrying amount as of
December 31, 2022
Carrying amount as of
January 1, 2023
Additions
Additions through
business combination
Amortization
Effect of movements in
exchange rates
Carrying amount as of
December 31, 2023
2,128.1
–
1,060.8
–
–
325.3
–
16.3
–
(1.4)
341.0
–
260.9
(1.5)
(89.9)
126.1
19.2
91.2
–
(46.5)
2,920.5
19.2
1,429.2
(1.5)
(137.8)
(2.7)
16.1
(1.6)
4.8
16.6
3,186.2
356.3
508.9
194.8
4,246.2
3,186.2
–
0.3
–
356.3
–
–
(2.9)
508.9
–
–
(97.1)
194.8
7.7
–
(54.5)
4,246.2
7.7
0.3
(154.5)
(59.2)
21.3
(9.9)
2.5
(45.3)
3,127.3
374.7
401.9
150.5
4,054.4
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Consolidated financial statements
Research and development
Research and development costs (excluding depreciation and amortization expense) recognized as
a component of general and administrative expenses amount to €66.9 million for the year ended
December 31, 2023 (€45.0 million for the year ended December 31, 2022).
In the year ended December 31, 2023, the Group has capitalized development costs of €5.4 million
(€15.3 million in the year ended December 31, 2022). The capitalized costs (included in “Technology
and other assets” in the table above) mainly relate to the development of the next-generation SIG NEO
VITA aseptic carton filling machine.
Amortization of intangible assets
Amortization of intangible assets is recognized 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 amortization
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
99.6
3.2
51.7
154.5
92.0
1.7
44.1
137.8
Annual impairment tests of goodwill and trademarks with indefinite useful lives
Goodwill with a carrying amount of €3,127.3 million as of December 31, 2023 (€3,186.2 million as
of December 31, 2022) and the SIG trademarks with indefinite useful lives with a carrying amount
of €362.9 million as of December 31, 2023 (€341.3 million as of December 31, 2022) 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.
Goodwill
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 (and reportable) segments.
In connection with changes in the Group’s internal reporting structure made as of November 1, 2023,
€45.0 million of the goodwill that had been allocated to APAC was reallocated to the new segment
IMEA (previously MEA). See note 7 for additional details about the changes in the composition of the
Group’s segments that resulted from the move of the Indian operations from APAC to IMEA. The
goodwill that arose upon the acquisition of Scholle IPN in 2022 was allocated to all four the segments
as of that time, while the goodwill that arose upon the acquisition of Evergreen Asia in 2022 was fully
allocated to APAC.
The table below shows the allocation of goodwill to the Group’s four segments as well as the key
assumptions used in the impairment test.
Year ended December 31, 2023
Year ended December 31, 2022
(In € million or %)
Carrying
amount
Growth
rate
Europe
MEA1
IMEA1
APAC1
Americas
Total goodwill
999.0
–
573.2
865.4
689.7
3,127.3
2.75%
–
2.75%
2.75%
2.75%
Pre-tax
discount
rate
8.4%
–
11.5%
8.2%
11.4%
Carrying
amount
Growth
rate
1,000.7
533.4
–
949.2
702.9
3,186.2
2.5%
2.5%
–
2.5%
2.5%
Pre-tax
discount
rate
8.1%
11.0%
–
8.6%
10.1%
1 The Indian operations were included in APAC until November 1, 2023, when they were moved to MEA. The former segment MEA
thereby became IMEA. See further note 7.
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.
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 effects of the war in Ukraine, the conflicts
in the Middle East and COVID-19 outbreaks. 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.
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Consolidated financial statements
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 9.6% (9.2% in the 2022 annual impairment test) and a terminal growth rate at Group level
of 2.75% (2.5% in the 2022 annual impairment test). The royalty fees for the first five years are based
on financial plans approved by management. The same methodology as for the goodwill impairment
test is used to extrapolate cash flows after the five-year internal planning period and to determine the
discount rate.
No impairment of the SIG trademarks with indefinite useful lives was identified in either of the periods.
Management considers it unlikely that any realistic change in the assumptions used would result in an
impairment loss.
Accounting policy
Goodwill arising upon business combinations is measured at cost less accumulated impairment
losses. 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 amortization and accumulated impairment losses. Gains and losses on disposals of
intangible assets are recognized in profit or loss as part of other income or expenses.
Development expenditure is capitalized 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 capitalization criteria are not met, development expenditure is
recognized in profit or loss as incurred. Expenditure on research activities is recognized in profit
or loss as incurred.
Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated
useful lives, with amortization generally recognized in profit or loss. The estimated useful lives of
amortizable intangible assets for the current and comparative periods are as follows:
10 to 15 years
Customer relationships
Scholle trademarks
5 years
Technology assets (including patented and non-patented technology and know-how) 6 to 10 years
3 to 6 years
Other intangible assets (including software)
Capitalized development costs are amortized over the period that is assessed to reflect the
expected useful life of the particular innovation (up to 15 years).
After the acquisitions of Scholle IPN and Evergreen Asia in 2022, the Company launched a new,
refreshed branding – SIG for better – to showcase the expanded Group as one company, one family
and one brand. In connection with this re-branding launch in 2023, the useful life of the acquired
Scholle trademarks were reassessed and changed from the originally assessed seven years to a
remaining useful life of four years at the date of change. The change has been accounted for on a
prospective basis as of July 1, 2023. The change does not have a significant impact on the Group’s
amortization charge over the remaining useful life of the Scholle trademarks.
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 impairment indicator. Goodwill and the SIG trademarks with indefinite useful
lives are tested for impairment on an annual basis and whenever there is an impairment indicator.
See note 5.5.3 for further details.
Significant judgments and estimates
Significant judgment is involved in the annual impairment testing of goodwill and the SIG
trademarks with indefinite useful lives. The judgments 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.
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15 Inventories
16 Trade and other receivables
Composition of inventories and other financial information
(In € million)
Raw materials and consumables
Work in progress
Finished goods
Total inventories
As of
Dec. 31,
2023
130.7
97.8
155.9
384.4
As of
Dec. 31,
2022
143.0
96.7
163.0
402.7
Trade and other receivables mainly comprise trade receivables. The Group has a securitization
program under which it sells a portion of its packaging material-related trade receivables without
recourse. It also has a small number of minor factoring programs.
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 securitization and factoring programs are
presented as trade receivables at fair value. Trade receivables that will not be sold are presented as
trade receivables at amortized cost.
As of December 31, 2023, inventories include a provision of €33.4 million due to write-downs to net
realizable value (€24.2 million as of December 31, 2022).
Raw materials and consumables recognized as an expense in cost of sales in the statement of profit or
loss and other comprehensive income amount to €1,365.1 million in the year ended December 31, 2023
(€1,257.0 million in the year ended December 31, 2022).
Accounting policy
Inventories are measured at the lower of cost and net realizable 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 realizable value is the estimated selling price less the
estimated costs of completion and estimated costs necessary to make the sale.
(In € million)
Trade receivables at amortized cost
Trade receivables at fair value
Related party trade receivables
Note receivables
VAT receivables
Other receivables
Total current trade and other receivables
Non-current receivables
Total current and non-current receivables
As of
Dec. 31,
2023
As of
Dec. 31,
2022
301.8
17.8
0.8
0.7
38.7
62.9
422.7
13.2
435.9
294.1
33.7
3.8
–
56.3
72.4
460.3
18.8
479.1
The payment terms for the Group’s trade receivables for packaging material is an average of 30 to 45
days (an average of 30 to 45 days also in the comparative period).
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Trade receivables at amortized cost – loss allowance and ageing
Securitization program
As of
Dec. 31,
2023
As of
Dec. 31,
2022
The Group has an asset-backed securitization program under which it sells without recourse a portion
of its aseptic carton sleeves-related trade receivables. The securitization program has been expanded
in 2023 to also cover a portion of the packaging material-related trade receivables from the bag-in-
box and spouted pouch businesses.
The trade receivables are sold 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.
Trade receivables sold under the securitization program amounted to €227.7 million as of
December 31, 2023 (€165.2 million as of December 31, 2022), of which €194.8 million (€140.8 million as of
December 31, 2022) has been derecognized and €32.9 million (€24.4 million as of December 31, 2022),
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 program. The securitization expense under the asset-backed securitization program
amounted to €9.2 million in the year ended December 31, 2023 (€2.2 million as of December 31, 2022)
and is presented as part of other finance expenses (see note 24).
Factoring programs
The Group has a small number of minor factoring programs under which trade receivables sold by the
Group qualify for derecognition. The factored amounts totaled €24.6 million as of December 31, 2023
(€32.3 million as of December 31, 2022). The decrease between the periods is due to one customer
moving from a factoring program to the Group’s securitization program.
(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 amortized cost, net of loss allowance
Loss allowance
Trade receivables at amortized cost, gross
224.5
33.8
22.0
21.5
301.8
(20.8)
322.6
226.5
31.4
17.2
19.0
294.1
(9.7)
303.8
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 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
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). For trade receivables past due 30 to 89 days that are not individually impaired,
the expected loss rate is around 5%.
Management believes that the recognized loss allowance sufficiently covers the risk of default based
on historical payment behavior and assessments of future expectations of credit losses, including
regular analysis of customer credit risk. The acquired trade receivables of Scholle IPN and Evergreen
were recognized at fair value at their respective acquisition dates in 2022. See also the section “Credit
risk” in note 26.
The table below shows the movements in the loss allowance for trade receivables at amortized cost.
(In € million)
Loss allowance as of January 1
Change in loss allowance recognized in profit or loss
during the year
Foreign currency exchange differences
Loss allowance as of December 31
2023
9.7
11.4
(0.3)
20.8
2022
6.6
2.9
0.2
9.7
The increase in the loss allowance in the year ended December 31, 2023 is mainly due to additional loss
allowances in the Middle East and South America.
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Accounting policy
Trade and other receivables at amortized cost
Trade and other receivables that will not be sold under the Group’s securitization and factoring
programs are initially recognized at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these receivables are measured at amortized cost using the
effective interest method less a loss allowance. 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 recognized. 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 securitization and factoring programs are
initially recognized at fair value plus any directly attributable transaction costs. Subsequent to initial
recognition, they are recognized at fair value. These trade receivables are sold and derecognized
shortly after their initial recognition in the statement of financial position. Any change in fair value
is recognized through profit or loss. The objective of these trade receivables is to realize the cash
flows primarily through selling them.
Derecognition of trade receivables
A financial asset is derecognized 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 derecognized financial asset that is retained by the Group is recognized 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
Dec. 31,
2023
275.7
5.2
280.9
As of
Dec. 31,
2022
490.0
13.8
503.8
Cash and cash equivalents mainly consist of cash at bank but may, from time to time, also
include short-term bank deposits (€0.2 million as of December 31, 2023 and €64.0 million as of
December 31, 2022) with maturities of three months or less that are subject to an insignificant risk of
changes in value. The restricted cash mainly relates to cash collected for the benefit of the Group’s
securitization partner.
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 programs
Advance payments
VAT payables
Accrued interest, third parties
Other current payables and accrued expenses
Current trade and other payables
Other non-current payables
Non-current payables
Total current and non-current trade and other payables
As of
Dec. 31,
2023
As of
Dec. 31,
2022
363.1
1.6
353.8
159.9
18.1
8.2
101.7
1,006.4
14.9
14.9
1,021.3
406.6
2.4
369.5
136.8
17.5
8.5
95.5
1,036.8
17.4
17.4
1,054.2
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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 programs relate to trade discounts, volume rebates and other customer
incentives linked primarily to aseptic carton sleeves volumes (see also note 6). These programs 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 of December 31, 2023 and December 31, 2022, the
liabilities for customer incentive programs mainly represent incentives earned by customers under
programs running over a calendar year that have not yet been settled by the Group. The remaining
part represents accruals built up for incentive programs running over periods other than a calendar
year (ie. refund liabilities). The Group has recognized an insignificant amount as revenue in the current
period that was included in the balance of liabilities for customer incentive programs 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 advance payments in relation to the bag-in-
box, spouted pouch and chilled carton businesses. These advance payments are recognized as
revenue within a short time frame from their initial recognition in the statement of financial position.
As of December 31, 2023, the Group had contract liabilities of €62.0 million (€58.0 million as of
December 31, 2022). These advance payments are presented as part of the advance payments in
the table above (see also the section below). The amount of advance payments recognized as of
December 31, 2022 relating to the sale of packaging material and the sale of filling lines and other
related equipment under contracts accounted for under the revenue standard has been recognized
as revenue in 2023.
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 leases. If payments
are received from customers before the filling line deployment date, they are initially recognized as
part of “Trade and other payables” and presented as part of the advance payments in the table above
(€97.9 million as of December 31, 2023 and €78.8 million as of December 31, 2022). Upon deployment of
a filling line, the related advance payments received are reclassified to “Other liabilities” and presented
as deferred revenue liabilities. These deferred revenue liabilities are then released and recognized as
revenue over a certain period (see further note 20).
include
Other current and non-current payables
liabilities of a total of €17.3 million as of
December 31, 2023 (14.7 million as of December 31, 2022) that relate to aseptic carton filling lines that,
via the involvement of a financing partner, are deployed with the Group’s customers. Under such a sale
and lease arrangement, the financing partner pays the Group for a filling line and enters into a filling
line lease contract, generally over six years, with the Group’s customer. The Group has an obligation to
purchase the filling line from the financing partner at the end of the lease term. The liability towards the
financing partner initially reduces the amount that is recognized as a deferred revenue liability (see the
section above and note 20). The liability gets settled on the repurchase of the filling line by the Group.
These arrangements qualify to be accounted for as operating leases (see also note 5.5.2). The Group
generally enters into new customer contracts for the filling lines that are purchased from the financing
partner at the end of these arrangements.
Accounting policy and significant estimates
Trade and other payables are initially recognized at fair value less any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are carried at amortized 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.
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Consolidated financial statements
19 Provisions
The Group’s provisions mainly relate to dismantling costs, warranties, restructuring programs as well as legal and regulatory matters.
Composition of provisions
(In € million)
Carrying amount as of January 1, 2022
Additions through business combinations
Provisions made
Provisions used
Provisions reversed
Effect of movements in exchange rates
Carrying amount as of December 31, 2022
Current
Non-current
Carrying amount as of December 31, 2022
Carrying amount as of January 1, 2023
Provisions made
Provisions used
Provisions reversed
Effect of movements in exchange rates
Carrying amount as of December 31, 2023
Current
Non-current
Carrying amount as of December 31, 2023
Dismantling
Product
warranty Restructuring
Other
14.5
–
1.5
(0.1)
–
0.2
16.1
–
16.1
16.1
16.1
4.1
(0.5)
–
(0.5)
19.2
–
19.2
19.2
8.6
1.0
6.9
(1.5)
(7.1)
0.3
8.2
7.9
0.3
8.2
8.2
7.9
(2.6)
(3.1)
–
10.4
10.4
–
10.4
9.9
–
5.3
(10.9)
(0.4)
0.2
4.1
3.2
0.9
4.1
4.1
6.0
(5.8)
–
(0.1)
4.2
4.0
0.2
4.2
3.8
16.0
1.5
(0.9)
(0.3)
(0.8)
19.3
15.5
3.8
19.3
19.3
3.4
(0.4)
(15.1)
(0.2)
7.0
1.3
5.7
7.0
Total
36.8
17.0
15.2
(13.4)
(7.8)
(0.1)
47.7
26.6
21.1
47.7
47.7
21.4
(9.3)
(18.2)
(0.8)
40.8
15.7
25.1
40.8
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Consolidated financial statements
Restructuring provision
20 Deferred revenue
The Group has a small number of ongoing restructuring programs. The Group’s restructuring programs
are generally focused on reducing costs, streamlining the organization and adjusting headcount to be
more closely aligned with the Group’s needs and changing market demands. Payments are usually
expected to be executed within the next one or two years. See also note 9.
Other provisions
Other provisions mainly relate to legal and regulatory matters. In the year ended December 31, 2023, an
acquisition-related provision was reversed due to a positive ruling (see also notes 9 and 28).
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
recognized 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 and sale and lease arrangements.
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).
The table below provides an overview of the deferred revenue liability.
Accounting policy
A provision is recognized 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 recognized 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 recognized 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 recognized 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 recognized 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 recognized 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.
(In € million)
Current deferred revenue
Non-current deferred revenue
Total deferred revenue
As of
Dec. 31,
2023
102.9
284.4
387.3
As of
Dec. 31,
2022
92.8
264.8
357.6
In the year ended December 31, 2022, deferred revenue was presented as part of “Other assets and
liabilities” on the face of the statement of financial position, with further specification of the amounts
provided in a note. Deferred revenue is now presented as a separate line item on the face of the
statement of financial position as management believes that such a presentation is more useful for the
readers of the consolidated financial statements. The comparative amounts have been reclassified to
reflect the new presentation. As of January 1, 2022, current deferred revenue amounted to €81.9 million
and non-current deferred revenue amounted to €268.2 million.
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Consolidated financial statements
21 Other assets and liabilities
Composition of other liabilities
Other assets mainly comprise accrued income, prepaid expenses and deferred expenditure but
also a smaller investment made by the Group (via SIG InnoVentures AG) in an early-stage packaging
company (see note 27). Other liabilities include the contingent consideration for Scholle IPN. Moreover,
the Group’s derivative assets and liabilities are 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 26 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
As of
Dec. 31,
2023
As of
Dec. 31,
2022
3.6
19.8
23.4
6.6
25.4
32.0
55.4
4.3
22.5
26.8
8.9
27.0
35.9
62.7
(In € million)
Derivative liabilities
Other current liabilities
Derivative liabilities
Contingent consideration
Other non-current liabilities
Total other current and non-current liabilities
As of
Dec. 31,
2023
As of
Dec. 31,
2022
14.2
14.2
0.1
55.0
55.1
69.3
23.4
23.4
–
113.2
113.2
136.6
See notes 9, 28 and 33 for details about the contingent consideration, which relates to the acquisition
of Scholle IPN.
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Consolidated financial statements
Our financing and financial risk management
The net debt as of December 31, 2023 remained at the same level as of December 31, 2022. Both the
gross debt and cash balance were lower as a result of net repayment of loans by partly using cash.
The adjusted EBITDA performance positively contributed to the net leverage ratio.
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.
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 25 and 31).
22 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 unsecured Schuldscheindarlehen (“SSD”, a private German debt placement) 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 of 4.0x. As per the credit agreement for the US Dollar term loan, the net leverage ratio
cannot exceed 4.4x. Note 23 includes additional details about the Group’s loans and borrowings.
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
Dec. 31,
2023
2,457.5
(280.9)
2,176.6
As of
Dec. 31,
20221
2,684.1
(503.8)
2,180.3
2.7x
3.1x
1
In the calculation of the net leverage ratio as of December 31, 2022, adjusted EBITDA includes the adjusted EBITDA of Scholle IPN
and Evergreen Asia from January 1, 2022.
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.
23 Loans and borrowings
The Group’s loans and borrowings consist of senior unsecured Euro-denominated notes, senior
unsecured credit facilities, an unsecured US Dollar term loan, unsecured Euro Schuldscheindarlehen
(“SSD”, a private German debt placement) and an unsecured credit facility. The senior unsecured
credit facilities consist of a Euro-denominated term loan and a multi-currency revolving credit facility.
In addition, the Group has access to local credit facilities in various locations. 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.
(In € million)
Senior unsecured notes
Unsecured credit facility
Local credit lines
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
As of
Dec. 31,
2023
As of
Dec. 31,
2022
–
100.0
112.1
52.3
264.4
548.5
548.1
243.8
648.2
198.8
2,187.4
2,451.8
449.3
–
–
39.9
489.2
547.5
546.9
252.5
647.6
191.0
2,185.5
2,674.7
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Consolidated financial statements
Overview of recent financing transactions
On June 20, 2023, the Group repaid €450 million of senior unsecured notes that were due in June 2023.
To finance the repayment, the Group used available cash and €350 million from an unsecured bridge
loan facility that was accessed on June 16, 2023. The bridge loan facility was repaid in the last quarter
of 2023, using available cash and €100.0 million from an unsecured credit facility.
To finance the €415.5 million cash portion of the acquisition of Scholle IPN and the repayment of the
acquired Scholle IPN external loans of €387.7 million, the Group accessed an unsecured bridge loan
facility of €800 million on May 27, 2022. The bridge loan facility was repaid in two installments in 2022
by using the major portion of the proceeds from an issue of unsecured SSD of €650 million and a new
unsecured US Dollar-denominated term loan ($270.0 million). The remaining proceeds from the SSD
were used to partly finance the consideration for Evergreen Asia on August 2, 2022.
Additional loans and borrowings details
The table below provides an overview of the main terms of the Group’s long-term financing (excluding
lease liabilities). Additional details about these loans and borrowings and more short-term financing
solutions are provided below the table.
Notes1
Euro term loan2
Multi-currency revolving
credit facility3
US Dollar term loan4
Principal
amount
€550 million
€550 million
Maturity
date
June 2025
June 2025
€300 million
June 2025
$270 million
July 2027
SSD tranches 1-35
€557.5 million
June 2025–June 2029
SSD tranches 4-65
€92.5 million
June 2025–June 2029
Interest rate
2.125%
Euribor+1.2%,
with a floor of 0.00%
Euribor+1.2%,
with a floor of 0.00%
SOFR+1.25%,
with a floor of 0.00%
Euribor+1.1%–1.6%,
with a floor of 0.00%
2.79%–3.66%
1 The notes can be redeemed in whole or in part prior to March 18, 2025 at par plus a make-whole premium and after March 18, 2025
at a price equal to 100% of their respective principal amounts. Interest on the notes is paid semi-annually.
2 No repayments of the Euro 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. The margin on the Euro term loan is subject to semi-annual adjustments based on the Group’s
net leverage (as defined in the credit agreement) and to annual adjustments based upon the achievement of certain annual
sustainability-linked targets (greenhouse gas emissions, or “GHG” emissions, and rankings per the EcoVadis Report). Interest is
paid semi-annually.
3 The Group pays a fee for the undrawn revolver amount per year for the right to use the revolving credit facility.
4 No repayments of the term loan are due prior to maturity. The Group has the right to repay the US Dollar term loan in whole or in
part at the end of each interest period without premium or penalty. The margin on the US Dollar term loan is subject to semi-annual
adjustments based on the Group’s net leverage (as defined in the credit agreement). Interest is paid quarterly.
5 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 margin on the SSD tranches is subject to annual adjustments based on the achievement of certain annual
sustainability-linked targets (with reference to the Group’s EcoVadis score). 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 largest SSD tranche of
€423.5 million is due in June 2027.
The Group’s issue of senior unsecured notes is from June 2020. The notes are traded on the Global
Exchange Market of Euronext Dublin.
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 amount available under the
multi-currency revolving credit facility was €299.5 million as of December 31, 2023 (€295.1 million as
of December 31, 2022), due to €0.5 million (€4.9 million as of December 31, 2022) in letters of credit
being outstanding under an ancillary facility. The Group has subsequently repaid the €150.0 million
of the multi-currency revolving credit facility that had been used as of June 30, 2023 to cover cash
requirements in the first half of 2023.
The six tranches of a total of €650 million unsecured Schuldscheindarlehen (“SSD”, a private German
debt placement) were issued by the Group in June 2022.
The Group’s unsecured credit facility from July 2022 consists of one US Dollar-denominated term
loan. The Group has entered into an interest rate swap to hedge the interest rate cash flow exposure
relating to the US Dollar term loan (see also notes 26 and 33).
In December 2023, the Group accessed an existing €100.0 million unsecured credit facility. Repayment
is due in June 2024. The amount drawn, together with available cash, was used to repay the Group’s
bridge loan facility of €350.0 million which was at less beneficial terms than the unsecured credit
facility.
The Group also has access to local credit facilities in various locations. As of December 31, 2023,
€112.1 million of unsecured unguaranteed local credit lines have been used to cover local working
capital needs (nil as of December 31, 2022).
The obligations under the notes, the senior unsecured credit facilities, the US Dollar term loan and the
SSD are guaranteed by the Company on a stand-alone basis. The Group was in compliance with all
related covenants and there were no events of default as of December 31, 2023 and December 31, 2022.
Lease liabilities
A maturity analysis of the Group’s lease liabilities (relating mainly to office buildings, production-related
buildings and equipment, warehouses and cars) is provided below.
Carrying amount of
lease liabilities
Interest payments
Contractual
undiscounted
cash flows
(In € million)
2023
2022
2023
2022
2023
2022
Less than 1 year
Between 1 and 5 years
More than 5 years
52.3
111.7
87.1
251.1
39.9
97.5
93.5
230.9
16.1
40.5
48.6
105.2
12.9
41.6
52.8
107.3
68.4
152.2
135.7
356.3
52.8
139.1
146.3
338.2
Note 13 includes information about lease contracts to which the Group has committed but where the
lease has not yet commenced.
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Consolidated financial statements
Changes in liabilities arising from financing activities
The following two tables present changes in liabilities arising from financing activities.
The main financing transactions in the year ended December 31, 2023 include the drawing and subsequent repayment of an unsecured bridge loan facility and the repayment of notes. The main financing
transactions in the year ended December 31, 2022 included 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.
(In € million)
Principal amount1
Transaction costs
Original issue discount
Loans and borrowings, excl. lease liabilities
Lease liabilities
Total loans and borrowings
Capitalized cost for revolving credit facility
Interest: Accrued/(paid)
Derivative (assets)/liabilities from financing activities
Total (assets)/liabilities from financing activities and cash/non-cash changes
Cash flows from/(used in):
Jan. 1,
2023
Financing
activities
Operating
activities
Non-cash
movements
Effect of
movements in
exchange
rates
2,453.2
(8.6)
(0.8)
2,443.8
230.9
2,674.7
(0.8)
8.5
2,682.4
(8.9)
2,673.5
(236.1)
(1.1)
–
(237.2)
(47.2)
(284.4)
–
–
(284.4)
–
(284.4)
–
–
–
–
–
–
–
(124.9)
(124.9)
–
(124.9)
–
4.5
0.3
4.8
65.6
70.4
0.3
124.7
195.4
2.0
197.4
(10.7)
–
–
(10.7)
1.8
(8.9)
–
(0.1)
(9.0)
0.3
(8.7)
Dec. 31,
2023
2,206.4
(5.2)
(0.5)
2,200.7
251.1
2,451.8
(0.5)
8.2
2,459.5
(6.6)
2,452.9
1 The net financing cash outflow of €236.1 million relating to the principal amount of loans and borrowings (excluding lease liabilities) shows the net effect of accessing an unsecured bridge loan facility in June 2023 (€350.0 million of cash inflow), the repayment of senior
unsecured notes in June 2023 (€450.0 million of cash outflow), the subsequent repayment of the unsecured bridge loan facility that was accessed in June 2023 (€350.0 million of cash outflow), the use and subsequent repayment of the multi-currency revolving credit
facility (€150.0 million of cash inflow and cash outflow), drawing from an unsecured credit facility in December 2023 (€100.0 million cash inflow) and the use and subsequent partial repayment of local unsecured credit lines (€125.1 million of cash inflow and €11.2 million
of cash outflow).
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Consolidated financial statements
(In € million)
Principal amount1
Transaction costs
Original issue discount
Loans and borrowings, excl. lease liabilities
Lease liabilities
Total loans and borrowings
Capitalized cost for revolving credit facility
Interest: Accrued/(paid)
Derivative (assets)/liabilities from financing activities
Total (assets)/liabilities from financing activities and cash/non-cash changes
Cash flows from/(used in):
Jan. 1,
2022
Financing
activities
Operating
activities
Effect of
business
combinations2
Non-cash
movements
Effect of
movements in
exchange
rates
1,550.0
(8.7)
(1.1)
1,540.2
182.4
1,722.6
(1.2)
6.9
1,728.3
–
1,728.3
536.5
(3.0)
–
533.5
(34.5)
499.0
–
–
499.0
–
499.0
–
(3.3)
–
(3.3)
–
(3.3)
–
(52.2)
(55.5)
–
(55.5)
389.4
–
–
389.4
5.3
394.7
–
1.1
395.8
–
395.8
–
6.5
0.3
6.8
75.1
81.9
0.4
52.6
134.9
(9.0)
125.9
(22.7)
(0.1)
–
(22.8)
2.6
(20.2)
–
0.1
(20.1)
0.1
(20.0)
Dec. 31,
2022
2,453.2
(8.6)
(0.8)
2,443.8
230.9
2,674.7
(0.8)
8.5
2,682.4
(8.9)
2,673.5
1 The financing cash inflow of €536.5 million relating to the principal amount of loans and borrowings (excluding lease liabilities) shows the net effect of accessing the unsecured bridge loan facility in May 2022 (€800.0 million of cash inflow), the repayment of external
loans of Scholle IPN in June 2022 (€387.7 million of cash outflow and €15.5 million of cash inflow resulting from the settlement of a foreign currency deal-contingent derivative – see notes 24 and 28), the issue of unsecured SSD in June 2022 (€650.0 million of cash
inflow), a new unsecured US Dollar term loan (€260.0 million of cash inflow), the subsequent repayments in June and July 2022 of the unsecured bridge loan facility that was accessed in 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).
2 The addition of €389.4 million to the principal amount of loans and borrowings (excluding lease liabilities) and the addition of €5.3 million to lease liabilities presented in the column “Effect of business combinations” result from the accounting for the acquisitions of
Scholle IPN and Evergreen Asia (see note 28).
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Consolidated financial statements
Accounting policy
Lease liabilities
Loans and borrowings (excluding lease liabilities) are initially recognized at fair value less any directly
attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at
amortized 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 amortized
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 recognized
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 derecognized 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 recognized in profit or loss as part of
the net finance expense. Any costs or fees incurred are recognized as part of the gain or loss on
extinguishment.
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 recognized 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).
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Consolidated financial statements
24 Finance income and expenses
The Group’s finance income and expenses are 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
See notes 26 and 33 for details about the net change in fair value of financing-related derivatives (an
interest-rate swap) and the net interest income on the interest swap.
The increase of the securitization expense in the year ended December 31, 2023 is mainly due to higher
interest rates but also to the expansion of the Group’s securitization program in 2023 to include trade
receivables in the bag-in-box and spouted pouch businesses.
Other finance expenses primarily consist of revolver commitment fees, factoring expenses and
interest expense on current tax liabilities.
(In € million)
Interest income
Net foreign currency exchange gain
Realized 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
Amortization of original issue discount
Amortization of transaction costs
Net change in fair value of financing-related derivatives
Net effect of early repayment of loan
Securitization expense
Other
Finance expenses
Net finance expense
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
25 Equity
3.8
5.5
–
–
5.2
14.5
(99.9)
(15.1)
(0.3)
(4.8)
(2.0)
–
(9.2)
(8.3)
(139.6)
(125.1)
2.1
8.8
15.5
9.0
0.5
35.9
(35.9)
(10.8)
(0.3)
(7.0)
–
(1.0)
(2.2)
(4.7)
(61.9)
(26.0)
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 28 for information about the hedging reserve (the sections “Deal-contingent
derivatives” and “Accounting policy”). The Group applied cash flow hedge accounting for the first time
in the year ended December 31, 2022.
Issued share capital
The Company had 382,270,872 shares in issue as of December 31, 2023 and December 31, 2022, all
fully paid and with a nominal value of CHF 0.01 per share. The table below provides an overview of the
shares, that are listed on SIX Swiss Exchange.
(Number of shares)
Balance as of January 1, 2022
Issue of shares on May 18, 2022
Issue of shares on May 23, 2022
Balance as of December 31, 2022
Balance as of January 1, 2023
Balance as of December 31, 2023
Total shares
337,520,872
11,000,000
33,750,000
382,270,872
382,270,872
382,270,872
For the year ended December 31, 2023, the net foreign currency exchange gain primarily consists of
positive translation effects on Swiss Franc-denominated intra-group loan receivables that are held by
an entity with the Euro as its functional currency, partially offset by negative 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 weakening of the US Dollar against the Euro.
For the year ended December 31, 2022, the net foreign currency exchange gain primarily consisted 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.
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 realized gain of €15.5 million
in the year ended December 31, 2022 (see note 28).
On May 18, 2022, the Company issued 11,000,000 registered shares with a nominal value of CHF 0.01
per share from its authorized 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 generated gross proceeds of
CHF 213,400,000 (€203.5 million), resulting in an increase in the share capital of €0.1 million and an
increase in the additional paid-in capital of €203.4 million. The costs incurred of €3.6 million that are
directly attributable to the placement of the shares have been recognized 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 23 and 28). The new shares
were listed and admitted to trading on SIX Swiss Exchange on May 19, 2022. The newly issued shares
have the same rights as the Company’s other registered shares.
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On May 23, 2022, the Company issued 33,750,000 registered shares with a nominal value of CHF 0.01
per share from its authorized share capital under exclusion of the subscription rights of existing
shareholders. The shares, together with a cash payment, were part of the consideration for Scholle
IPN that was transferred to CLIL on June 1, 2022 (see notes 28 and 29). The difference of €686.5 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 registered shares. CLIL has agreed to a lock-up period for these shares of 18-24 months, subject
to customary exceptions.
The 382,270,872 shares in issue as of December 31, 2023 represent €3.4 million of share capital
(€3.4 million as of December 31, 2022).
Capital band and conditional share capital
The Company had authorized share capital of CHF 565,062.61 and conditional share capital of
CHF 640,106.48 as of December 31, 2022. As of December 31, 2023, the Company has conditional
share capital of CHF 640,106.48 but no longer any authorized share capital due to the revision of
Swiss corporate law. It instead has a capital band ranging from CHF 3,440,437.85 (lower limit) to
CHF 4,587,250.46 (upper limit).
Before the Annual General Meeting held on April 20, 2023, the Board of Directors was authorized,
at any time until April 21, 2023, to increase the Company’s share capital through the issue of up to
56,506,261 registered shares. Capital increases from authorized and conditional share capital were
subject to a single combined limit, and could not exceed 64,010,648 shares, equaling CHF 640,106.48.
However, the authority to issue shares from authorized and conditional share capital under exclusion
of the subscription and advance subscription rights respectively was limited to a single combined
maximum of 22,754,174 shares, equaling CHF 227,541.74.
The Annual General Meeting held on April 20, 2023 approved the introduction of a capital band as
introduced under the revised Swiss corporate law as of January 1, 2023. The capital band replaces
the existing authorized share capital. Under the capital band, the Board of Directors is authorized to
increase the share capital by up to 20% of the current share capital if shareholders’ subscription rights
are granted, and up to 10% if shareholders’ subscription rights are excluded. The Board of Directors
may also reduce the share capital by up to 10% through cancellation of shares or nominal value
reduction or by a simultaneous reduction and re-increase of the share capital. The authorization under
the capital band is limited to three years until April 20, 2026 or the full use of the capital band.
The total number of registered shares issued from (i) the capital band where the shareholders’
subscription rights are excluded and (ii) the conditional share capital where the shareholders’
advance subscription rights for equity-linked financing instruments are excluded, may not exceed
38,227,087 registered shares. Within the limit outlined above, the proportion of new shares assigned to
each of the categories is stipulated by the Board of Directors.
The proceeds from an issue of new shares under the capital band 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 favorable 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 December 31, 2023 (also as
of December 31, 2022).
Treasury shares
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 (see note 31). The Company held
39,985 shares for this purpose as of December 31, 2023 (23,295 shares as of December 31, 2022),
representing an amount of €1.0 million, or €1.5 million including foreign currency exchange movements
(€0.5 million as of December 31, 2022, or €1.3 million including foreign currency exchange movements).
All treasury shares are carried at acquisition cost.
In the year ended December 31, 2023, the Company transferred 380,166 treasury shares
(728,261 treasury shares in the year ended December 31, 2022), representing €9.2 million (€15.1 million
for the year ended December 31, 2022) to participants in the Group’s equity-settled share-based
payment plans and arrangements.
The table below provides an overview of the Group’s treasury shares.
(Number of treasury shares or in € million)
Number
Amount
Number
Amount
2023
2022
Balance as of January 1
Purchases
Transfer under equity-settled share-based
payment plans and arrangements
Balance as of December 31
23,295
396,856
(380,166)
39,985
(1.3)
(9.4)
9.2
(1.5)
2,430
749,126
(728,261)
23,295
(0.1)
(16.3)
15.1
(1.3)
Dividends
For the year ended December 31, 2023, the Board of Directors will propose to the Annual General
Meeting to be held on April 23, 2024 a dividend payment of CHF 0.48 per share, totaling CHF 183.5 million
(which, as per the exchange rate as of December 31, 2023, would equal €198.2 million). The dividend
payment to be proposed is not recognized as a liability.
A dividend of CHF 0.47 per share, totaling CHF 179.6 million (€180.2 million), was paid to shareholders
from the capital contribution reserve (additional paid-in capital) in April 2023. A dividend of
CHF 0.45 per share, totaling CHF 151.9 million (€147.9 million), was paid from the capital contribution
reserve in April 2022.
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Accounting policy
Incremental costs directly attributable to the issue of shares and purchase of treasury shares are
recognized as a deduction from equity. Any resulting tax effects of any transaction costs that are
recognized 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 recognized as a share-based payment expense (or any amount
received under a sale) is recognized 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.
The following table includes information about the remaining contractual maturities for the Group’s
non-derivative financial liabilities as of December 31, 2023. 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
(1,003.2)
(1,003.2)
(988.3)
(3.7)
(9.8)
(1.4)
(548.5)
(567.1)
(11.7)
(555.4)
term loan
(548.1)
(594.3)
(30.2)
(564.1)
–
–
–
–
(In € million)
As of December 31, 2023
Trade and other payables
Loans and borrowings:
– Senior unsecured notes
– Senior unsecured Euro
26 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.
Financial risk management is primarily carried out by the Group’s Treasury function. Management
has delegated authority levels and authorized 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 operating expenses, repayments of
and interest payments on its debt and lease payments.
The Group generates sufficient cash flows from its operating activities to meet obligations arising from
its financial liabilities. The Group had unrestricted cash and cash equivalents of €275.7 million as of
December 31, 2023 (€490.0 million as of December 31, 2022). It has a multi-currency revolving credit
facility in place to cover potential shortfalls and access to local credit facilities in various locations,
which are available if needed to support the cash management of local operations. In 2024, the Group
will look to refinance part of its loans and borrowings that fall due in mid-2025. See further note 23.
– Unsecured US Dollar
term loan
– Unsecured SSD
– Unsecured credit
facility
– Local credit lines
– Lease liabilities
Contingent consideration
Total non-derivative
financial liabilities
(243.8)
(648.2)
(100.0)
(112.1)
(251.1)
(55.0)
(305.9)
(764.3)
(102.5)
(115.8)
(356.3)
(39.2)
(16.5)
(32.3)
(16.4)
(115.7)
(273.0)
(527.6)
–
(88.7)
(102.5)
(115.8)
(68.4)
–
–
–
(53.9)
(30.1)
–
–
(98.3)
(9.1)
–
–
(135.7)
–
(3,510.0)
(3,848.6)
(1,365.7)
(1,339.3)
(917.8)
(225.8)
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, three of the SSD tranches and draw-downs of local credit
lines 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 23.
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 December 31, 2023, the interest rate swap is estimated to reduce the interest payments
on the US Dollar term loan by approximately €5 million in 2024 and €1 million in 2025.
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Significant judgment is involved in assessing the future cash flows relating to the contingent
consideration for Scholle IPN (see notes 28 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.
Trade and other payables include liabilities, together with estimated cash outflows, that relate to
arrangements where aseptic carton filling lines are deployed with customers via the involvement of a
financing partner (see note 18). The majority of the outstanding obligations for the Group to repurchase
the filling lines from the financing partners are expected to be settled within two to five years.
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 recognized as of December 31, 2023
and December 31, 2022 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 December 31, 2022.
(In € million)
Carrying
amount
Total
Up to
1 year
1–2
years
2–5
years
More than
5 years
Contractual cash flows
As of December 31, 2022
Trade and other payables
Loans and borrowings:
– Senior unsecured
(1,036.7)
(1,036.7)
(1,019.4)
(4.5)
(6.2)
(6.6)
notes
(996.8)
(1,032.8)
(465.6)
(11.7)
(555.5)
– Senior unsecured Euro
term loan
(546.9)
(603.9)
(21.8)
(22.0)
(560.1)
–
–
– Unsecured US Dollar
term loan
– Unsecured SSD
– Lease liabilities
Contingent consideration
Total non-derivative
financial liabilities
(252.5)
(647.6)
(230.9)
(113.2)
(318.2)
(762.4)
(338.2)
(212.3)
(13.7)
(24.8)
(52.8)
–
(13.7)
(25.2)
(45.7)
(67.5)
(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)
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 28 for an exception to
this policy in the year ended December 31, 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 minimize 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 12-month rolling layered approach. See also note 8. The Group does not hedge its exposure to
translation gains or losses related to the results of its entities with a functional currency other than the
Euro.
To manage the foreign currency exposure arising from the US Dollar payments relating to the
acquisitions of Scholle IPN and Evergreen Asia in 2022, the Group entered into deal-contingent foreign
currency derivatives in the year ended December 31, 2022. These derivatives were designated as
hedging instruments. See note 28 for further details.
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The following table provides an overview of the outstanding foreign currency derivative contracts entered into as part of the operating business as of December 31, 2023.
Type
Non-deliverable forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Currency forwards
Contract
type
Currency
Contracted
volume
Counter-
currency
Contracted conversion
range
Contracted date
of maturity
Buy
Buy
Buy
Sell
Sell
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
EUR
EUR
USD
EUR
USD
EUR
USD
CNY
EUR
EUR
USD
USD
USD
17,400,000
64,239,000
8,709,699
6,300,000
27,010,000
4,060,000
21,000,000
307,000,000
4,488,000
70,450,000
424,000
50,000,000
40,850,000
BRL
THB
THB
THB
THB
CNY
CNY
EUR
AUD
USD
AUD
EUR
MXN
5.2688 – 5.9640
36.1950 – 38.4297
34.3118 – 34.3315
37.9680 – 37.9680
32.7902 – 36.0349
7.4384 – 7.9201
7.1285 – 7.1576
7.7946 – 7.8094
1.6561 – 1.6578
1.0658 – 1.1177
0.6616 – 0.6627
1.0959 – 1.1108
17.1712 – 19.8952
Jan. 2024 – Dec. 2024
Jan. 2024 – Dec. 2024
Jan. 2024 – Jan. 2024
Jan. 2024 – Jan. 2024
Jan. 2024 – Dec. 2024
Jan. 2024 – Jun. 2024
Feb. 2024 – Apr. 2024
Jan. 2024 – Feb. 2024
Jan. 2024 – Mar. 2024
Jan. 2024 – Dec. 2024
Jan. 2024 – Mar. 2024
Jan. 2024 – Mar. 2024
Jan. 2024 – Dec. 2024
The following table provides an overview of the outstanding foreign currency derivative contracts entered into as part of the operating business as of December 31, 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
Currency
Contracted
volume
Counter-
currency
Contracted conversion
range
Contracted date
of maturity
Buy
Buy
Buy
Sell
Buy
Buy
Buy
Buy
Buy
Buy
EUR
EUR
USD
USD
EUR
USD
EUR
EUR
USD
USD
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
USD
AUD
MXN
5.1890 – 6.7060
36.3065 – 37.7894
34.5900 – 34.5930
31.9681 – 37.7439
6.9113 – 7.4471
6.6625 – 7.2636
1.5295 – 1.5698
0.9905 – 1.1581
1.4801 – 1.4836
19.5333 – 22.8202
Jan. 2023 – Dec. 2023
Jan. 2023 – Dec. 2023
Jan. 2023 – Jan. 2023
Jan. 2023 – Dec. 2023
Jan. 2023 – Dec. 2023
Apr. 2023 – Apr. 2023
Jan. 2023 – Jul. 2023
Jan. 2023 – Dec. 2023
Jan. 2023 – Mar. 2023
Jan. 2023 – Dec. 2023
The Group’s primary unhedged transaction currency exposure as of December 31, 2023 relates to 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 Franc as of December 31, 2023 would result in an
unrealized foreign currency exchange loss of €37.8 million as of December 31, 2023. A 5% weakening of the Euro against the US Dollar as of December 31, 2023 would result in an unrealized foreign currency
exchange loss of €33.6 million as of December 31, 2023.
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The Group’s primary unhedged transaction currency exposure as of December 31, 2022 relates to
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 Franc as of December 31, 2022
would have resulted in an additional unrealized foreign currency exchange loss of €18.4 million as
of December 31, 2022. A 5% weakening of the Euro against the US Dollar as of December 31, 2022
would have resulted in an additional unrealized foreign currency exchange loss of €19.6 million as of
December 31, 2022.
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 commodity price changes
cannot always be passed on to the customers on a timely basis (see also note 5.4). The majority of
the customer contracts in the bag-in-box and spouted pouch businesses 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
aluminum. 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 aluminum. This strategy means that the Group is able to fix the raw material prices for the majority
of its anticipated polymer and aluminum purchases, which substantially reduces the exposure to
raw material price fluctuations over that period. The Group also hedges a part of its electricity price
exposure in continental Europe.
The realized gain or loss arising from derivative commodity contracts is recognized in cost of sales,
while the unrealized gain or loss associated with derivative commodity contracts is recognized in other
income or expenses.
The Group recognized an unrealized gain of €12.9 million for the year ended December 31, 2023 and
an unrealized loss of €46.0 million for the year ended December 31, 2022 relating to its derivative
commodity contracts as a component of other income. It recognized a realized loss of €32.7 million
for the year ended December 31, 2023 and a realized gain of €33.5 million for the year ended
December 31, 2022 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
December 31, 2023.
Type
Aluminum swaps
Aluminum premium
swaps
Polymer swaps
Polymer swaps
Polymer swaps
Monomer swaps
Electricity swaps
Unit of
measure
Contracted
volume
Contracted
price range
Contracted date of
maturity
metric ton
21,770
$2,180 – $2,746 Jan. 2024 – Dec. 2024
metric ton
metric ton
metric ton
metric ton
metric ton
megawatt hour
5,400
16,560
5,040
15,924
35,280
59,049
$256 – $345 Jan. 2024 – Dec. 2024
€1,900 – €2,070 Jan. 2024 – Dec. 2024
€1,560 Jan. 2024 – Dec. 2024
$1,190 – $1,460 Jan. 2024 – Dec. 2024
€1,170 – €1,319 Jan. 2024 – Dec. 2024
€92 – €240 Jan. 2024 – Jan. 2026
The following table provides an overview of the outstanding commodity derivative contracts as of
December 31, 2022.
Type
Aluminum swaps
Aluminum premium
swaps
Polymer swaps
Polymer swaps
Polymer swaps
Polymer swaps
Polymer swaps
Monomer swaps
Electricity swaps
Unit of
measure
Contracted
volume
Contracted
price range
Contracted date of
maturity
metric ton
18,060
$2,268 – $3,409 Jan. 2023 – Dec. 2023
metric ton
metric ton
metric ton
metric ton
metric ton
metric ton
metric ton
megawatt hour
9,050
19,580
2,040
6,660
4,200
8,100
29,775
12,500
$294 – $445 Jan. 2023 – Dec. 2023
€2,025 – €2,307 Jan. 2023 – Dec. 2023
€2,112 Jan. 2023 – Dec. 2023
$1,250 Jan. 2023 – Dec. 2023
$1,665 Jan. 2023 – Dec. 2023
$1,560 Jan. 2023 – Dec. 2023
€1,230 – €1,566 Jan. 2023 – Dec. 2023
€200 – €235 Feb. 2023 – Oct. 2023
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 December 31, 2023 would have had an impact of €15.0 million
on the Group’s profit before income tax (an impact of €15.9 million on the profit before income tax as
of December 31, 2022).
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Consolidated financial statements
Interest rate risk
Credit 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 draw-downs of its multi-currency revolving credit facility
and local credit lines, but also from cash and cash equivalents. The Group pays a fixed interest rate on
its notes and three of the tranches of its SSD and the current draw-down of its unsecured credit facility.
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 recognized 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
December 31, 2023 and December 31, 2022 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
Dec. 31,
2023
As of
Dec. 31,
2022
5.2
(993.6)
(988.4)
(244.3)
(1,232.7)
280.9
(1,463.9)
(1,183.0)
244.3
(938.7)
6.9
(1,323.4)
(1,316.5)
(253.2)
(1,569.7)
503.8
(1,360.7)
(856.9)
253.2
(603.7)
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 in the aseptic carton business. This also
applies for the customers in the bag-in-box, spouted pouch and chilled carton businesses.
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 utilizing securitization and
non-recourse factoring programs. 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 recognized loss allowance sufficiently covers the risk of default based
on historical payment behavior 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).
A 100 basis point increase in the variable component of the interest rate on the Euro term loan, the
three SSD tranches at variable interest rates and the draw-downs of local credit lines would increase
the annual interest expense by €12.2 million as of December 31, 2023. A 100 basis point increase in the
variable component of the interest rate on the Euro term loan and the three SSD tranches at variable
interest rates would have increased the annual interest expense by €11.1 million as of December 31, 2022.
The US Dollar term loan is not included in these analyses as the interest rate of this loan has been fixed
for three years with an interest rate swap.
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Consolidated financial statements
Our group structure and related parties
This section provides information about the Group’s subsidiaries and other related parties. It includes
certain information about the acquisitions of Scholle IPN and Evergreen Asia in 2022.
27 Group entities
Overview of Group entities
The following table provides an overview of all the Group’s subsidiaries and joint venture. The ownership
interests are the same as of December 31, 2023 and December 31, 2022, unless specifically stated. The
ownership and voting interests are the same for all Group entities. The Group owns 100% of the shares
and the reporting date of the entities is December 31, unless specifically stated. The joint venture does
not have any subsidiaries.
Companies and countries
Parent company
Switzerland
SIG Group AG, Neuhausen am Rheinfall2
Subsidiaries
Algeria
EURL SIG Combibloc Algeria Ltd3
Argentina
Combibloc S.R.L., Buenos Aires4
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
As of December 31, 2023
Share capital1
Interest
3,822,709 CHF
100%
1,500,000 DZD
100%
6,765,005,520 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%
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., Suzhou
SIG Packaging (Shanghai) Co., Ltd., Shanghai5
Czechia
SIG Combibloc s.r.o., Hradec Králové
Egypt
SIG Combibloc Egypt LLC, Cairo
France
Scholle IPN France SAS, Schalbach6
SIG Combibloc S.à.r.l., Courbevoie
Germany
Scholle IPN Germany GmbH, Eisfeld7,8
Scholle IPN Germany GmbH, Linnich8
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., Pune9,10
Scholle IPN India Packaging Private Ltd., Palghar9,10,11
Scholle Packaging (India) Private Ltd., Palghar9
SIG Combibloc India Private Ltd., Gurgaon, Haryana9
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
As of December 31, 2023
Share capital1
Interest
1,000 CAD
100%
9,006,501,235 CLP
5,016,722,134 CLP
15,400,000 USD
133,000,000 USD
3,800,000 USD
98,374,102 CNY
100%
100%
100%
100%
100%
100%
200,000 CZK
100%
10,000 EGP
100%
31,000 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
964,721,600 INR
84.71%
100%
100%
100%
13,549,682,000 IDR
100%
101,400 EUR
100%
2,000,001 EUR
4,012,500 EUR
100%
100%
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Consolidated financial statements
Companies and countries
Share capital1
Interest
Companies and countries
As of December 31, 2023
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
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., Lagos
Pakistan
SIG Combibloc Pakistan (SMC – Private) Ltd., Lahore12
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, Voronezh10
Saudi Arabia
Al Obeikan SIG Combibloc Company Ltd., Riyadh
Serbia
SIG South East Europe d.o.o. Beograd, Beograd
Singapore
SIG Combibloc Singapore Private Ltd., Singapore
South Africa
SIG Combibloc (South Africa) Pty. Ltd., Cape Town
445,500 MYR
1,000,000 MYR
100%
100%
142,010,000 MXN
1,000,000 MXN
2 EUR
2 EUR
20,000 EUR
18,000 EUR
20,220 EUR
18,000 EUR
18,000 EUR
40,000 EUR
0 NZD
0 NZD
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
10,000,000 NGN
100%
100,000 PKR
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%
South Korea
SIG Combibloc Korea Ltd., Seoul
SIG Packaging Korea Ltd., Seoul13
Spain
Bossar Packaging S.L.U., Barbera del Valles
SIG Combibloc S.A.U., Madrid
Sweden
SIG Combibloc AB, Eslöv
Switzerland
SIG allCap AG, Neuhausen am Rheinfall
SIG InnoVentures AG, Neuhausen am Rheinfall14
SIG Procurement AG, Neuhausen am Rheinfall15
SIG Receivables Management AG, Neuhausen am
Rheinfall16
SIG Services AG, Neuhausen am Rheinfall17
SIG Schweizerische Industrie-Gesellschaft GmbH,
Neuhausen am Rheinfall
Taiwan
SIG Combibloc Taiwan Ltd., Taipei
SIG Packaging (Taiwan) Co., Ltd., Hsinchu Hsien18
Thailand
SIG Combibloc Ltd., Rayong
Turkey
SIG Combibloc Paketleme ve Ticaret Ltd. Şirketi,
Istanbul4
United Kingdom
Scholle IPN UK Ltd., Gateshead
SIG Combibloc Ltd., Gateshead
UAE
SIG Combibloc FZCO, Dubai
USA
BBI Company Inc., Northlake19
Clean Flexible Packaging Inc., Northlake
Scholle IPN Atlanta Corporation, Peachtree City
Scholle IPN Corporation, Northlake
Scholle IPN Packaging Inc., Northlake
SIG Combibloc Inc., Chadds Ford
SIG Combibloc US Acquisition Inc., Chadds Ford
As of December 31, 2023
Share capital1
Interest
260,000,000 KRW
899,480,000 KRW
1,248,000 EUR
330,550 EUR
100%
100%
100%
100%
100,000 SEK
100%
7,000,000 CHF
1,000,000 CHF
2,000,000 CHF
1,000,000 CHF
37,931,400 CHF
100%
100%
100%
100%
100%
20,000 CHF
100%
15,000,000 TWD
1,000,000 TWD
100%
100%
3,070,693,000 THB
100%
170,000 TRY
100%
1 GBP
250,000 GBP
100%
100%
24,000,000 AED
100%
20 USD
0 USD
0 USD
10,000 USD
27,000,000 USD
10 USD
–
100%
100%
100%
100%
100%
100%
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Companies and countries
USA continued
SIG Combibloc US Acquisition II Inc., Chadds Ford
SIG Holding USA, LLC, Chadds Ford
Vietnam
SIG Vietnam Ltd., Ho Chi Minh City
Joint venture
Japan
DNP • SIG Combibloc Co. Ltd., Tokyo
2,000,000,000 VND
100%
75,000,000 JPY
50%
1 Unaudited.
2 The registered address of SIG Group AG is Laufengasse 18, 8212 Neuhausen am Rheinfall, Switzerland.
3 New entity, incorporated in the first quarter of 2023.
4 Argentina and Turkey are regarded as hyperinflationary as of December 31, 2023. The impacts of applying hyperinflationary
accounting as per IAS 29 Financial Reporting in Hyperinflationary Economies is not material to the Group.
5 Evergreen Packaging (Shanghai) Co. Ltd. was acquired as part of the Evergreen Asia acquisition on August 2, 2022 (see note 28).
The name was changed to SIG Packaging (Shanghai) Co. Ltd. after the acquisition.
6 Scholle IPN France SAS was liquidated in the third quarter of 2023.
7 Previously Scholle IPN Investment GmbH.
8 Scholle IPN Germany GmbH was merged into Scholle IPN Investment GmbH in the second quarter of 2023. In the course of the
merger, the name and the registered address of Scholle IPN Investment GmbH, Linnich were changed to Scholle IPN Germany
GmbH, Eisfeld.
9 Reporting date is March 31. Financial information prepared as of December 31 is used for consolidation purposes.
10 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.
11 In the acquisition of Scholle IPN in 2022, the Group initially only acquired 90% of the shares of Scholle IPN India Packaging Private
Ltd. It acquired the remaining 10% of the shares for €3.3 million on March 29, 2023. The purchase of the Indian non-controlling
interest is presented as a reduction of retained earnings in the statement of changes in equity.
12 New entity, incorporated in the second quarter of 2023.
13 Evergreen Packaging Korea Ltd. was acquired as part of the Evergreen Asia acquisition on August 2, 2022 (see note 28). The name
was changed to SIG Packaging Korea Ltd. after the acquisition.
14 New entity, incorporated in the first quarter of 2023, that will invest in early-stage companies to support the development of future
packaging solutions. SIG InnoVentures AG made its first investment in the fourth quarter of 2023 in an early-stage company that
is engaged in the research, development and commercialization of novel fiber-based products for the packaging industry. The
investment is not significant. It is presented as part of other non-current assets (see note 21) and measured at fair value.
15 Previously SIG Combibloc Procurement AG. The name was changed to SIG Procurement AG in the third quarter of 2023.
16 Previously SIG Combibloc Receivables Management AG. The name was changed to SIG Receivables Management AG in the third
quarter of 2023.
17 Previously SIG Combibloc Services AG. The name was changed to SIG Services AG in the third quarter of 2023.
18 Evergreen Packaging (Taiwan) Co. Ltd. was acquired as part of the Evergreen Asia acquisition on August 2, 2022 (see note 28).
The name was changed to SIG Packaging (Taiwan) Co. Ltd., after the acquisition.
19 BBI Company Inc. was liquidated in the second quarter of 2023.
As of December 31, 2023
Share capital1
Interest
Joint venture in Japan
The Group has a small investment in a joint venture in Japan (DNP • SIG Combibloc Co. Ltd). It is
accounted for using the equity method.
10 USD
1,000 USD
100%
100%
The Japanese joint venture 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 the years ended December 31, 2023 and December 31, 2022. Its net assets are also not significant.
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, until the Group loses control.
Intra-group transactions and balances
Intra-group transactions and balances are eliminated upon consolidation.
28 Business combinations
Overview
This note includes information about the acquisitions of Scholle IPN and Evergreen Asia in 2022 that is
relevant for the understanding of their impact on the consolidated financial statements for the years
ended December 31, 2023 and December 31, 2022. Additional details are included in note 27 of the
consolidated financial statements for the year ended December 31, 2022.
Scholle IPN
Overview
On June 1, 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. Laurens Last was elected to the Company’s
Board of Directors on April 7, 2022. Scholle IPN provides bag-in-box and spouted pouch packaging
solutions.
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The following table provides an overview of the consideration transferred, the recognized amounts
of assets acquired and liabilities assumed at the acquisition date and the resulting goodwill. The
acquisition accounting is final. There have been no material adjustments to the fair values initially
recognized.
(in € million)
Cash
Shares (33,750,000 registered 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
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
“Other net assets acquired” mainly relates to deferred and current tax assets, right-of-use assets and
employee benefits.
For the seven months ended December 31, 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 adjustments on inventories). If the acquisition had
occurred on January 1, 2022, management estimates that for the year ended December 31, 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 January 1, 2022.
The Group has incurred total acquisition-related costs relating to Scholle IPN of €21.6 million in 2021
and 2022, of which €16.5 million has been recognized in the year ended December 31, 2022 (as part of
other expenses).
Consideration
The consideration of €1,149.7 million for Scholle IPN is split between cash payments, newly issued SIG
shares and contingent consideration.
At the acquisition date, the Company transferred €415.5 million ($445.1 million) in cash and
33,750,000 newly issued SIG registered shares with a fair value of €686.8 million to the former
owner as consideration for Scholle IPN. The shares were issued from authorized share capital on
May 23, 2022 (see note 25). 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 June 1, 2022. See notes 25 and 29 for additional
information on the shareholding of the former ultimate beneficial owner of Scholle IPN, Laurens Last,
who is a related party to the Company via his representation on the Group’s Board of Directors and his
shareholding in the Company.
The Group initially retained an amount of €18.7 million ($20.0 million) as per the share purchase
agreement, which was payable upon finalization of the completion accounts. The completion accounts
were finalized in September 2022 and resulted in a total cash consideration of €424.3 million.
The contingent consideration depends on the acquired bag-in-box and spouted pouch businesses
outperforming the top end of the Group’s mid-term revenue growth guidance of 4–6% per year for
the years ending December 31, 2023, 2024 and 2025, and would be payable in cash in three annual
instalments of up to $100 million per year. The fair value of the contingent consideration estimated as
of the acquisition date was €38.6 million. As of December 31, 2023, the fair value of the contingent
consideration was €55.0 million (€113.2 million as of December 31, 2022). See note 33 for additional
details.
Identifiable net assets acquired
The intangible assets mainly comprise customer relationships with a useful life of 12.5 years but also
technology-related assets with a useful life of ten years and trademarks with a useful life of seven years.
The useful life of the Scholle trademarks has subsequently been shortened (see note 14). 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 by the Group in June 2022
for €15.1 million (its assessed fair value) in a sale and leaseback 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 was assessed at €96.5 million. Trade receivables comprised gross
contractual amounts due of €97.0 million, of which €0.5 million was expected to be uncollectible as of
the acquisition date.
The Group repaid the external Euro and US Dollar loans of Scholle IPN in connection with the acquisition
(see note 23 and the section “Deal-contingent derivatives” below).
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Consolidated financial statements
Goodwill
Goodwill of €929.8 million for Scholle IPN has been recognized 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 million (see the section “Deal-contingent derivatives” below). As of December 31, 2022, the
goodwill amounted to €917.8 million. The decrease from the amount initially recognized as goodwill
related to foreign currency exchange rate changes.
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 IPN
that was payable in US Dollar and the repayment of the acquired US Dollar loan, 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 instrument
in April 2022. At the acquisition date, the cumulative positive fair value changes of the derivative of
€13.6 million (€11.7 million net of tax) recognized in other comprehensive income (“OCI”) (net of the
cost of hedging) reduced the amount of goodwill. Positive fair value changes recognized in other
income until the hedge designation date in April 2022 amounted to €11.9 million (see notes 8 and 9). In
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 recognized in finance income
(see notes 9 and 24). The settlement of the derivative relating to the repayment of the US Dollar loan
resulted in a net cash inflow of €15.5 million.
Evergreen Asia
Overview
The Group acquired Evergreen’s chilled carton business in Asia Pacific (“Evergreen Asia”) on
August 2, 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 chilled carton packaging solutions
in Asia.
The following table provides an overview of the consideration transferred, the recognized amounts
of assets acquired and liabilities assumed at the acquisition date and the resulting goodwill. The
acquisition accounting is final. There have been no material adjustments to the fair values initially
recognized.
(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
329.8
329.8
7.5
31.2
26.8
85.4
23.7
78.2
(35.7)
(33.0)
(16.4)
167.7
162.1
(30.9)
131.2
“Other net liabilities acquired” mainly relates to deferred tax assets, current tax liabilities, provisions
and employee benefits.
For the five months ended December 31, 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 on January 1, 2022, management estimates
that for the year ended December 31, 2022, consolidated revenue would have been €2,857.1 million
and consolidated profit would 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 January 1, 2022.
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Consolidated financial statements
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 recognized in the year ended December 31, 2022 (as part
of other expenses).
Consideration
The Group transferred €329.5 million ($335.9 million) in cash to Evergreen as consideration for
Evergreen Asia on August 2, 2022. The final consideration was determined upon the completion
settlement in February 2023, with no significant impact on the consideration transferred.
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 was assessed at €30.3 million. Trade receivables comprised gross
contractual amounts due of €30.5 million, of which €0.2 million was expected to be uncollectible as
of the acquisition date.
Goodwill
Goodwill of €130.9 million for Evergreen Asia has been recognized 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 December 31, 2022,
the goodwill amounted to €121.1 million. The decrease from the amount initially recognized as goodwill
related to foreign currency exchange rate changes.
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. At the acquisition date, the cumulative positive fair value changes of the
derivative of €30.9 million (€26.6 million net of tax) recognized in OCI (net of the cost of hedging)
reduced the amount of goodwill. Positive fair value changes recognized in other income until the hedge
designation date in April 2022 amounted to €4.7 million (see notes 8 and 9). In total, the settlement of
the derivative resulted in a net cash inflow of €35.6 million.
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 recognized in profit or loss.
Contingent consideration is measured at fair value at the acquisition date. When contingent
consideration is payable in cash, and therefore recognized 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 recognized 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 recognized amount (which is generally fair value) of the identifiable assets
acquired and liabilities assumed.
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 recognized retrospectively, and comparative information restated as 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.
Cash flow hedging of the foreign currency risk on forecasted business combinations
To manage the foreign currency exposure arising from the US Dollar cash considerations for
Scholle IPN and Evergreen Asia, the Group entered 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 was recognized and accumulated in a hedging reserve in OCI (net
of tax). The effective portion recognized 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
were recognized in other income and expenses.
The Group designated only the change in fair value of the spot component of the respective
derivative as the hedging instrument. The hedge relationship was therefore highly effective. The
change in fair value of the forward component of the derivative was accounted for separately as
a cost of hedging and recognized in equity. For simplicity, the cost of hedging was 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 was 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 recognized upon the acquisition.
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Consolidated financial statements
Significant judgments and estimates
Significant judgments and estimates were made by management relating to the accounting for the
acquisitions of Scholle IPN and Evergreen Asia. For example, the assessments of the fair value of
the customer relationships and the contingent consideration for Scholle IPN as of the acquisition
dates involved significant judgments and estimates. The fair value of the contingent consideration
for Scholle IPN is reassessed at each reporting date, with continuous use of significant judgments
and estimates (see note 33).
29 Related parties
The Company has related party relationships with its shareholders, subsidiaries, 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 is included in note 28.
Shareholders
The members of the Group Executive Board directly held 0.09% and indirectly held 0.06%
of the Company’s shares as of December 31, 2023 (directly 0.14% and indirectly 0.06% as of
December 31, 2022). The members of the Board of Directors directly held 0.08% and indirectly held
9.9% of the Company’s shares as of December 31, 2023 (directly 0.08% and indirectly 9.7% as of
December 31, 2022).
Laurens Last (via CLIL, subsequently renamed Clean Holding B.V) received 33.75 million 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 9.4% of the Company’s shares as of December 31, 2023 (9.19%
as of December 31, 2022) according to the disclosure notifications reported to the Company by
Laurens Last and published by the Company via the electronic publishing platform of SIX Swiss
Exchange (see also the section “Key management” below and note 25). In addition to the above shares,
Laurens Last reported by disclosure notification 913,408 option rights as per the relevant reporting
date. However, based on more recent reporting of management transactions by Laurens Last, he
held 1,073,430 option rights to receive registered shares of the Company as of December 31, 2023
(no option rights reported as of December 31, 2022).
Key management
The Company’s key management includes the members of the Group Executive Board and the Board
of Directors.
See note 4 for organizational changes in the Group Executive Board and the Board of Directors that
took place in the year ended December 31, 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
Dec. 31,
2023
Year ended
Dec. 31,
2022
6.1
0.5
4.2
0.3
11.1
7.6
0.5
3.1
0.6
11.8
The termination benefits for the year ended December 31, 2023 and 2022 relate to members of the
Group Executive Board. The terminations have been reflected in the measurement of the amount
recognized 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 totaled €2.4 million for the year ended
December 31, 2023 (€2.3 million for the year ended December 31, 2022). 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 2023 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 27. Certain information about the Group’s joint venture is
also included in note 27.
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Consolidated financial statements
Related party transactions
The nature of the Company’s related party relationships, balances and transactions for the year
ended December 31, 2023 has not changed compared with information disclosed in the consolidated
financial statements for the year ended December 31, 2022. The Company has not had any significant
related party transactions in the years ended December 31, 2023 and December 31, 2022, with the
following exceptions.
In the year ended December 31, 2023, the Group acquired the 10% non-controlling interest of one of
the acquired Scholle IPN Indian entities on an arm’s length basis (see note 27).
On June 1, 2022, the Company acquired Scholle IPN from CLIL. CLIL is controlled by Laurens Last, who
was elected to the Board of Directors on April 7, 2022. See note 28 for details about transaction values
and outstanding balances concerning the acquisition. Notes 26 and 33 provide additional information
about the contingent portion of the consideration for Scholle IPN.
There have been no significant transactions and there were no outstanding balances as of
December 31, 2023 and December 31, 2022 relating to companies controlled or jointly controlled by
Laurens Last, except for an outstanding payable of €1.6 million as of December 31, 2023 (€1.6 million
as of December 31, 2022).
The Group had entered into a one-year transitional service agreement in relation to an entity controlled
by Laurens Last that was not part of the acquisition of Scholle IPN. It was extended for a limited
period regarding some of the services provided by SIG but has subsequently been terminated. This
agreement had no significant impact on the Group.
In the year ended December 31, 2023, the Group recognized revenue of €1.8 million for sales of goods
and provision of services to its joint venture in Japan (€4.4 million in the year ended December 31, 2022).
It had an outstanding trade receivable balance of €0.8 million relating to the joint venture as of
December 31, 2023 (€3.0 million as of December 31, 2022).
There were no other significant related party transactions during the years ended December 31, 2023
and December 31, 2022. As of December 31, 2023 and December 31, 2022, the Group had no
commitments to incur capital expenditure with related parties.
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Consolidated financial statements
Our people
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.
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 December 31, 2023, the Swiss retirement plan comprised 71% of the present value of the
Group’s pension plan obligations (70% as of December 31, 2022). As of December 31, 2023, the fair
value of the assets of the Swiss retirement plan exceeded the present value of its pension obligations
by €191.8 million (€176.0 million as of December 31, 2022). However, the amount recognized as a
net defined benefit asset for the year ended December 31, 2022 was limited by the asset ceiling to
€114.6 million. See the section “Expense recognized in other comprehensive income, including impact
of the asset ceiling” below. For the year ended December 31, 2023, the amount recognized as a net
defined benefit asset did not exceed the asset ceiling.
Expected annual contributions to the Group’s defined benefit pension plans during the year ending
December 31, 2023 are estimated to be €6.8 million. The Group’s pension plans had a weighted
average duration of 12 years as of December 31, 2023 (13 years as of December 31, 2022).
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. The largest defined benefit plan, also after the
acquisitions in 2022, 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
Dec. 31,
2023
As of
Dec. 31,
2022
45.8
15.2
6.1
104.3
171.4
61.0
110.4
171.4
46.5
14.4
6.6
98.0
165.5
60.9
104.6
165.5
The Group had a net defined benefit asset of €191.8 million as of December 31, 2023 (€114.6 million as
of December 31, 2022). 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
Personnel expenses recognized in the statement of profit or loss and other comprehensive income
were €585.0 million in the year ended December 31, 2023 (€482.4 million in the year ended
December 31, 2022), of which €34.8 million relates to contributions to defined contribution plans
(€33.0 million in the year ended December 31, 2022).
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Consolidated financial statements
Movement in net defined benefit obligation
Information about the net defined benefit obligation as of and for the year ended December 31, 2023 and the year ended December 31, 2022 is included below.
(In € million)
Carrying amount as of the beginning of the year
Service cost
Interest expense/(income)
Administrative expenses
Curtailments and settlements
Total expense/(income) recognized 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
Contributions by the Group
Contributions by plan participants
Benefits paid by the plans
Addition through business combinations
Effect of movements in exchange rates
Total other movements
Carrying amount as of the end of the year
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
Defined benefit
obligation
Fair value
of plan assets
Impact of
asset ceiling
Net defined benefit
liability/(asset)
2023
501.9
7.9
13.6
–
0.1
21.6
6.9
15.6
–
–
22.5
–
1.8
(35.4)
–
20.2
(13.4)
532.6
375.6
157.0
532.6
2022
484.1
8.9
3.9
–
(0.4)
12.4
8.7
(45.7)
–
–
(37.0)
–
1.7
(36.1)
60.1
16.7
42.4
501.9
349.5
152.4
501.9
2023
2022
2023
2022
2023
2022
(579.9)
–
(13.0)
0.6
–
(12.4)
–
–
(23.7)
–
(23.7)
(5.8)
(1.8)
35.4
–
(31.9)
(4.1)
(620.1)
(567.4)
(52.7)
(620.1)
(587.5)
–
(3.1)
0.7
–
(2.4)
–
–
67.0
–
67.0
(6.2)
(1.7)
36.1
(59.0)
(26.2)
(57.0)
(579.9)
(525.5)
(54.4)
(579.9)
61.4
–
–
–
–
–
–
–
–
(62.2)
(62.2)
–
–
–
–
0.8
0.8
(0.0)
(0.0)
–
(0.0)
–
–
–
–
–
–
–
–
–
60.1
60.1
–
–
–
–
1.3
1.3
61.4
61.4
–
61.4
(16.6)
7.9
0.6
0.6
0.1
9.2
6.9
15.6
(23.7)
(62.2)
(63.4)
(5.8)
–
–
–
(10.9)
(16.7)
(87.5)
(191.8)
104.3
(87.5)
(191.8)
104.3
(87.5)
(103.4)
8.9
0.8
0.7
(0.4)
10.0
8.7
(45.7)
67.0
60.1
90.1
(6.2)
–
–
1.1
(8.2)
(13.3)
(16.6)
(114.6)
98.0
(16.6)
(114.6)
98.0
(16.6)
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Consolidated financial statements
Expense recognized in profit or loss
Plan assets
The net pension expense is recognized 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
Dec. 31,
2023
Year ended
Dec. 31,
2022
4.8
1.1
3.3
9.2
2.6
4.7
1.0
4.3
10.0
5.3
Expense recognized in other comprehensive income, including impact of the asset ceiling
The remeasurement of the Group’s defined benefit pension plans as of December 31, 2023 resulted in
a €53.2 million increase in other comprehensive income (net of tax), of which €57.1 million relates to
the Group’s Swiss retirement plan. The increase is due to positive asset performance, partially offset
by a decrease in the discount rate, and to an increase of the asset ceiling. The asset ceiling did not limit
the amount that could be recognized as a net defined benefit asset as of December 31, 2023.
The remeasurement of the Group’s defined benefit pension plans as of December 31, 2022 resulted
in a €81.8 million decrease in other comprehensive income (net of tax), of which €101.6 million related
to the Group’s Swiss retirement plan. The decrease was 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 December 31, 2022 resulted in a significant decrease of the
asset ceiling, which limited the amount that could be recognized as a net defined benefit asset for the
Group’s Swiss retirement plan to €114.6 million as of December 31, 2022.
(In € million)
Equity instruments
Debt instruments
Real estate
Other
Total plan assets
As of
Dec. 31,
2023
As of
Dec. 31,
2022
144.2
270.6
174.1
31.2
620.1
125.8
246.2
173.3
34.6
579.9
Approximately 92% of total plan assets were held by the Swiss retirement plan as of December 31, 2023
(91% as of December 31, 2022). 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. An assessment of the investment policy for the Swiss retirement plan is
performed yearly.
Actuarial assumptions
The amounts recognized 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 recognized in future years. The mortality table used for the Swiss retirement plan
for 2023 and for 2022 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
Dec. 31,
2023
1.50%
2.00%
As of
Dec. 31,
2022
2.30%
2.00%
As of
Dec. 31,
2023
As of
Dec. 31,
2022
1.2%–7.1%
0.0%–9.0%
1.4%–7.3%
0.0%–9.0%
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The table below shows the effect on the defined benefit obligation of a change in the discount rate and
future salary increases.
Swiss retirement plan
All plans
As of
Dec. 31,
2023
As of
Dec. 31,
2022
As of
Dec. 31,
2023
As of
Dec. 31,
2022
(5.7)
6.2
1.3
(1.2)
(4.6)
4.9
0.9
(0.9)
(13.7)
15.0
2.8
(2.5)
(13.7)
15.0
2.6
(2.3)
(In € million)
Discount rates
50 basis points increase
50 basis points decrease
Future salary increases
50 basis points increase
50 basis points decrease
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 recognized 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 recognized 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
recognized 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 recognized in profit or loss.
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 recognized immediately in profit or
loss. The Group recognized 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 recognized 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 recognizes any related restructuring costs,
whichever occurs earlier.
Significant judgments and estimates
Amounts recognized 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.
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Consolidated financial statements
31 Share-based payment plans and arrangements
The table below provides an overview of the annual management PSU plans.
The Group has share-based long-term 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 obligations under its equity-settled plans and arrangements using own
shares (treasury shares) or, alternatively, using shares issued from its conditional share capital (see
note 25). 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-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. 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.
Grant date
Vesting date
Grant date fair value (one PSU)
Number of participants
Granted number of PSUs
thereof to members of the
Group Executive Board
Overview of PSU plans
2023
2022
2021
2020
2019
April 3,
2023
April 1,
2026
June 13,
2022
March 31,
2025
April 1,
2021
March 31,
2024
April 1,
2020
March 31,
2023
23.35 CHF 19.56 CHF 22.31 CHF 15.05 CHF
8
342,198
16
231,648
15
234,753
9
201,707
April 1,
2019
March 31,
2022
9.49 CHF
9
537,414
217,846
215,169
187,139
325,586
495,263
The table below provides a reconciliation of the outstanding management PSUs.
Number of PSUs
As of January 1
Granted PSUs
Vested PSUs (2020 plan)
Vested PSUs (2019 plan)
Forfeited PSUs
As of December 31
thereof held by members of the Group Executive Board
Outstanding PSUs
2023
2022
525,710
231,648
(158,088)
–
(75,246)
524,024
432,607
692,119
234,753
–
(350,814)
(50,348)
525,710
491,547
A total of 158,088 PSUs under the 2020 PSU plan vested on March 31, 2023, of which 142,860 PSUs
relate to members of the Group Executive Board at the vesting date. Based on the achievement of the
targets described above, the participants were entitled to 265,591 shares, of which 240,007 shares
relate to members of the Group Executive Board at the vesting date. Under the 2019 PSU plan, 350,814
PSUs vested on March 31, 2022, of which 205,482 PSUs relate to members of the Group Executive
Board at the vesting date. The participants were entitled to 631,469 shares, of which 369,870 shares
relate to members of the Group Executive Board at the vesting date.
The Group settled its obligation under the 2020 and 2019 PSU plans by delivering treasury shares. The
total amount of €3.0 million recognized as a share-based payment expense for the 2020 PSU plan has
been recognized as a decrease in equity (€4.0 million for the 2019 PSU plan). 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.
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Consolidated financial statements
Any resignation of members of the Group Executive Board results in forfeitures of a certain number of
granted PSUs as per the good and bad leaver clauses in the PSU plan regulations.
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 2020 and 2019 RSU plans vested on March 31, 2023 and on March 31, 2022, respectively.
The Group settled its obligation by delivering treasury shares. Under the 2022 RSU plan, 3,416 of the
granted RSUs relate to a member of the Group Executive Board (6,831 RSUs as of December 31, 2022).
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.
A total of 190,380 options under the 2020 EIP plan vested on June 1, 2023. The options can be exercised
during a ten-month period after the vesting date. A total of 85,265 options had been exercised and
settled as of December 31, 2023. The Group’s obligation under the 2020 EIP plan has and will be settled
by delivering treasury shares.
The grant date for the 2023 EIP plan was June 2, 2023, when 60 employees were granted a total of
130,212 options. Under the 2022 EIP plan, 69 employees were granted a total of 149,450 options on
May 27, 2022. The fair value of one option, calculated using the Black-Scholes model, was CHF 4.58 as
of the grant date for the 2023 EIP (CHF 2.74 for the 2022 EIP).
A total of 360,794 not yet vested options under all EIPs were outstanding as of December 31, 2023
(459,272 options as of December 31, 2022), of which 41,365 options were held by members of the
Group Executive Board (14,840 options as of December 31, 2022).
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 PSUs that will vest on December 31, 2025
depends on the achievement of certain targets, including targets linked to the performance and
integration of the two acquired businesses.
A total of 260,234 PSUs under the integration plans were outstanding as of December 31, 2023
(302,792 PSUs as of December 31, 2022), of which 10,469 PSUs were held by a member of the Group
Executive Board.
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.
The Group granted 38,959 blocked shares to the members of the Board of Directors in the year ended
December 31, 2023 (39,932 blocked shares in the year ended December 31, 2022). The fair value of
one granted instrument was CHF 24.42 as of the grant date in the year ended December 31, 2023 (CHF
23.40 in the year ended December 31, 2022). The blocked shares have been delivered using treasury
shares.
In 2019, two members of the Board of Directors received 14,236 RSUs instead of blocked shares.
These RSUs vested in the year ended December 31, 2022. The Group settled its obligation by delivering
treasury shares.
Share-based payment expense
The share-based payment expense recognized as a personnel expense for the year ended
December 31, 2023 relating to the PSU, RSU, equity investment and integration plans for SIG
employees amounts to €6.8 million, of which €4.2 million relates to members of the Group Executive
Board (€4.8 million for the year ended December 31, 2022, of which €3.1 million relates to members of
the Group Executive Board).
The share-based payment expense recognized as part of general and administrative expenses for the
year ended December 31, 2023 relating to the arrangement for the Board of Directors amounts to
€0.9 million (€0.9 million for the year ended December 31, 2022).
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 recognized as an expense,
with a corresponding increase in equity (retained earnings), over the vesting period. The amount
recognized 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 recognized 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.
For cash-settled plans, the fair value of the amounts payable to employees is recognized 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 recognized in profit or loss.
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Consolidated financial statements
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.
Amounts recognized in profit or loss
Amounts recognized in other comprehensive income
The Group has recognized in other comprehensive income a deferred tax expense of €10.2 million
relating to the remeasurement of defined benefit plans for the year ended December 31, 2023
(a deferred tax income of €8.3 million for the year ended December 31, 2022).
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 December 31, 2023 is unchanged compared to the comparative period
(13.94%).
(In € million)
Current year
Adjustments for prior years
Current tax expense
Origination and reversal of temporary differences
Tax rate modifications
Adjustments for prior years
Deferred tax benefit
Income tax expense
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
(113.5)
2.7
(110.8)
40.6
(8.1)
(2.5)
30.0
(80.8)
(88.6)
1.3
(87.3)
36.6
0.4
(0.7)
36.3
(51.0)
(In € million)
Profit before income tax
Income tax using the Swiss tax rate of 13.94% (2022: 13.94%)
Effect of tax rates in foreign jurisdictions
Non-deductible expenses
Tax-exempt income
Withholding tax
Tax rate modifications
Unrecognized tax losses and temporary differences
Tax uncertainties
Tax on undistributed profits
Adjustments for prior years
Income tax expense
Year ended
Dec. 31,
2023
Year ended
Dec. 31,
2022
324.0
(45.2)
(28.3)
(9.0)
28.3
(10.6)
(8.1)
(1.3)
(7.3)
0.5
0.2
(80.8)
88.8
(12.4)
(16.1)
(21.2)
14.0
(9.5)
0.4
(2.7)
(1.2)
(2.9)
0.6
(51.0)
The effective rate for the year ended December 31, 2023 was 24.9% (57.5% for the year ended
December 31, 2022).
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Consolidated financial statements
Current tax assets and liabilities
Recognized deferred tax assets and liabilities
Current tax assets of €6.0 million as of December 31, 2023 (€18.0 million as of December 31, 2022)
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 €49.3 million as of December 31, 2023 (€46.3 million as of December 31, 2022) represent
the amount of income taxes payable with respect to current and prior periods.
(In € million)
Current tax liabilities as of December 31, 2022 included an amount of €1.1 million for prior periods that
was subsequently reimbursed by PEI Holdings Company LLC (a company associated with Reynolds
Group Holdings Limited, the owner of the Group prior to March 13, 2015) in line with the share purchase
agreement that was signed when Onex acquired the Group in 2015. The same amount was recognized
as part of other receivables.
Included in the statement of financial position as:
Deferred tax assets
Deferred tax liabilities
Total recognized net deferred tax liabilities
As of
Dec. 31,
2023
As of
Dec. 31,
2022
60.6
(244.2)
(183.6)
60.0
(261.3)
(201.3)
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Consolidated financial statements
The following table provides details about the components of deferred tax assets and liabilities.
(In € million)
Carrying amount as of Jan. 1, 2022
Additions through business combinations
Recognized in profit or loss
Recognized in other comprehensive income
Effect of movements in exchange rates
Carrying amount as of Dec. 31, 2022
Carrying amount as of Jan. 1, 2023
Recognized in profit or loss
Recognized in other comprehensive income
Effect of movements in exchange rates
Carrying amount as of Dec. 31, 2023
Intangible
assets
Inventories
Receivables
Other
payables
Deferred
revenue
Unremitted
earnings
Other
items
Net deferred
tax assets/
(liabilities)
(92.5)
(87.6)
22.1
–
(1.8)
(159.8)
(159.8)
26.5
–
0.7
(132.6)
29.5
(3.3)
(2.9)
–
0.3
23.6
23.6
8.5
–
(0.1)
32.0
29.0
0.9
(30.0)
–
0.4
0.3
0.3
0.5
–
0.1
0.9
32.2
1.8
6.8
–
(0.7)
40.1
40.1
(0.6)
–
(2.3)
37.2
36.5
0.1
36.1
–
0.9
73.6
73.6
1.7
–
(1.2)
74.1
(22.5)
(21.3)
(2.9)
–
0.1
(46.6)
(46.6)
0.5
–
–
(46.1)
(1.9)
9.8
(2.5)
8.3
(2.4)
11.3
11.3
(3.5)
(10.2)
(1.1)
(3.5)
(101.4)
(141.2)
36.3
8.3
(3.3)
(201.3)
(201.3)
30.0
(10.2)
(2.1)
(183.6)
PP&E
(111.7)
(41.6)
9.6
–
(0.1)
(143.8)
(143.8)
(3.6)
–
1.8
(145.6)
Other payables mainly include a deferred tax asset relating to liabilities for various customer incentive programs. Other items mainly include net deferred tax assets or liabilities relating to employee benefits
and tax loss carry-forwards. Tax loss carry-forwards recognized as a deferred tax asset amount to €5.9 million as of December 31, 2023 (€9.4 million as of December 31, 2022).
Unrecognized deferred tax assets
Deferred tax assets have not been recognized with respect to tax losses of €9.3 million (gross amount €31.2 million) as of December 31, 2023 (€9.2 million, gross amount €28.1 million as of December 31, 2022)
because management has assessed that it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom. Under the current applicable tax legislation,
€24.3 million of the unrecognized tax losses as of December 31, 2023 does not expire while €0.6 million expires in three to five years and €6.3 million expires after more than five years.
OECD pillar two model rules
In 2021, the OECD published a regulatory framework for a global minimum top-up income tax (the OECD Pillar Two model rules). The rules are designed to ensure that multinational companies within the scope
of the rules pay a minimum tax rate of 15% in each jurisdiction where they operate. The Group is within the scope of the OECD Pillar Two model rules.
Both Switzerland and other jurisdictions in which the Group operates have (substantively) enacted the Pillar Two legislation. The legislations will be effective for the Group’s financial year beginning on
January 1, 2024. In Switzerland, a Qualified Domestic Minimum Tax (“QDMTT”) will be levied from January 1, 2024 while the implementation of the Income Inclusion Rule (“IIR”) and the Undertaxed Profits Rule
(“UTPR”) is currently postponed to a later date. Since the Pillar Two legislations were not effective at December 31, 2023, there is no current income tax exposure for the year ended December 31, 2023. The
Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes (see note 5.2).
The Group is in the process of assessing its exposure to the Pillar Two legislation when it comes into effect. The assessment indicates that the Group may be effected by top-up tax for its operations in the UAE.
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Consolidated financial statements
Accounting policy
Significant judgments and estimates
Determining the Group’s worldwide income tax liability requires significant judgment 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 judgment 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 recognizes deferred tax assets when the Group considers it
probable that the deferred tax assets will be recoverable.
Income tax expense comprises current and deferred tax. Income tax expense is recognized in
profit or loss except to the extent that it relates to a business combination or items recognized
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 recognized 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 recognized, 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 recognized 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 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 recognized 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. Unrecognized deferred tax assets are reassessed at each reporting date and
recognized 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.
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Consolidated financial statements
33 Financial instruments and fair value information
This note provides an overview of the Group’s financial instruments, including derivative financial
instruments, and their categorization 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 December 31, 2023 and December 31, 2022. They also present the respective
levels in the fair value hierarchy for financial assets and liabilities measured at fair value.
(In € million)
Cash and cash equivalents
Trade and other receivables
Derivatives
Other financial assets
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
– Unsecured credit facility
– Local credit lines
– Lease liabilities
Derivatives
Contingent consideration
Total financial liabilities
Carrying amount as of December 31, 2023
At
amortized
cost
At fair
value through
profit or loss
(mandatorily)
Fair value
hierarchy
Level
Total
1
2
3
280.9
378.1
–
659.0
(1,003.2)
(548.5)
(548.1)
(243.8)
(648.2)
(100.0)
(112.1)
(251.1)
(3,455.0)
17.8
10.2
2.6
30.6
(14.3)
(55.0)
(69.3)
280.9
395.9
10.2
2.6
689.6
(1,003.2)
(548.5)
(548.1)
(243.8)
(648.2)
(100.0)
(112.1)
(251.1)
(14.3)
(55.0)
(3,524.3)
x
x
x
x
x
Carrying amount as of December 31, 2022
(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
Total financial liabilities
At
amortized
cost
503.8
388.2
892.0
(1,036.7)
(996.8)
(546.9)
(252.5)
(647.6)
(230.9)
(3,711.4)
At fair
value through
profit or loss
(mandatorily)
Fair value
hierarchy
Level
Total
1
2
3
33.7
13.2
46.9
(23.4)
(113.2)
(136.6)
503.8
421.9
13.2
938.9
(1,036.7)
(996.8)
(546.9)
(252.5)
(647.6)
(230.9)
(23.4)
(113.2)
(3,848.0)
x
x
x
x
Fair value of financial assets and liabilities at amortized 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, the SSD and draw-downs of the
unsecured credit facility and local credit lines. The fair value of the Group’s notes due in 2025 was
€538 million as of December 31, 2023 (in total €973 million as of December 31, 2022 for the notes due
in 2025 and the notes that were repaid in June 2023).
Fair value of trade receivables to be sold under securitization and factoring
programs
Trade receivables that will be sold under the Group’s securitization and factoring programs are
categorized as measured at fair value through profit or loss. They are sold shortly after being recognized
by the Group and the amount initially recognized for these trade receivables is representative of their
fair value. These trade receivables are categorized as level 2 fair value measurements in the fair value
hierarchy.
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Consolidated financial statements
Fair value of derivatives
The following tables show the types of derivatives the Group had as of December 31, 2023 and December 31, 2022, 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).
(In € million)
Commodity derivatives
Foreign currency derivatives
Total operating derivatives
Interest rate swap
Total financing-related derivatives
Total derivatives as of December 31, 2023
(In € million)
Commodity derivatives
Foreign currency derivatives
Total operating derivatives
Interest rate swaps
Total financing-related derivatives
Total derivatives as of December 31, 2022
Current
assets
Non-current
assets
Total
derivative
assets
Current
liabilities
Non-current
liabilities
Total
derivative
liabilities
2.1
1.5
3.6
–
–
3.6
–
–
–
6.6
6.6
6.6
2.1
1.5
3.6
6.6
6.6
10.2
(11.3)
(2.9)
(14.2)
–
–
(14.2)
(0.1)
–
(0.1)
–
–
(0.1)
(11.4)
(2.9)
(14.3)
–
–
(14.3)
Current
assets
Non-current
assets
Total
derivative
assets
Current
liabilities
Non-current
liabilities
Total
derivative
liabilities
0.2
4.1
4.3
–
–
4.3
–
–
–
8.9
8.9
8.9
0.2
4.1
4.3
8.9
8.9
13.2
(21.6)
(1.8)
(23.4)
–
–
(23.4)
–
–
–
–
–
–
(21.6)
(1.8)
(23.4)
–
–
(23.4)
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 categorized 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 recognized in profit or loss as the Group generally does not apply hedge accounting under IFRS 9. As an exception to this policy, the Group applied
cash flow hedge accounting in two instances in the year ended December 31, 2022. See note 28 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.
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Consolidated financial statements
Fair value of contingent consideration
The Group’s liability for contingent consideration relates to the acquisition of Scholle in 2022 and
depends on the acquired bag-in-box and spouted pouch businesses outperforming the top end of the
Group’s mid-term revenue growth guidance of 4-6% per year for the year ended December 31, 2023
and the years ending December 31, 2024 and 2025. Payments for growth rates ranging from 6 to
11.5% per the respective year will be made based on a pre-agreed ratchet structure. The liability will be
settled in cash. The maximum amount payable is $300 million ($100 million per year). See also note 28.
The fair value of the contingent consideration was €55.0 million as of December 31, 2023
(€113.2 million as of December 31, 2022), representing a cash outflow of €39.2 million (€212.3 million
as of December 31, 2022, see note 26). The unrealized gain of €58.2 million for the year ended
December 31, 2023 (an unrealized loss of €74.6 million for the year ended of December 31, 2022) is
presented as part of other income and expenses (see notes 8 and 9). The contingent consideration is
presented as part of other non-current liabilities.
The fair value of the contingent consideration as of December 31, 2023 reflects that no payment
is expected by the Group for the first contingent consideration period. The acquired bag-in-box
and spouted pouch businesses did not exceed the required 6% revenue growth for the year ended
December 31, 2023, as previously foreseen. The fair value of this current contingent consideration
portion accordingly was nil as of December 31, 2023. The decrease in fair value since December 31, 2022
is also due to down-ward adjustments of the revenue growth rates of the acquired businesses for the
remaining two contingent consideration periods. The increase in fair value between the acquisition
date and December 31, 2022 was mainly due to refined revenue projections.
As significant unobservable inputs are used in the assessment of the fair value of the contingent
consideration, it is categorized 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 contingent consideration of €55.0 million as of December 31, 2023 would increase
by approximately €9.3 million if the revenue growth rates increased by 1.0 percentage point (decrease
by approximately €8.6 million if the revenue growth rates decreased by 1.0 percentage point), and
increase by approximately €2.7 million if the discount rates decreased by 1.0 percentage point
(decrease by approximately €2.4 million if the discount rates increased by 1.0 percentage point).
The fair value of the contingent consideration of €113.2 million as of December 31, 2022 would have
increased by approximately €10 million if the revenue growth rates had increased by 1.0 percentage
point (decreased by approximately €11 million if the revenue growth rates had decreased by
1.0 percentage point), and would have increased by approximately €5 million if the discount rates had
decreased by 1.0 percentage point (decreased by approximately €5 million if the discount rates had
increased by 1.0 percentage point).
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 recognizes loans and receivables and any debt issued on the date when they
are originated. All other financial assets and liabilities are initially recognized 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 realize 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 recognized 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
recognized in profit or loss. Changes in the fair value of a separated embedded derivative are
recognized immediately in profit or loss.
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Consolidated financial statements
34 Contingent liabilities
35 Subsequent events
The Group has contingent liabilities relating to legal, tax 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
recognized provision.
There have been no events between December 31, 2023 and February 22, 2024 (the date these
consolidated financial statements were approved) that would require an adjustment to or disclosure in
these consolidated financial statements.
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 recognized 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 recognized when the change in probability occurs.
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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
Our audit approach
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 December 31, 2023, the consolidated statement of financial position as
at December 31, 2023, the consolidated statement of changes in equity, the consolidated statement
of cash flows for the year then ended, and notes to the consolidated financial statements, including
material accounting policy information.
In our opinion, the consolidated financial statements (pages 162 to 228) give a true and fair view of the
consolidated financial position of the Group as at December 31, 2023 and its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with IFRS
Accounting Standards 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 Account-ants (including International Independence Standards) issued by 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.
Overview
Overall Group materiality: EUR 32,000,000
We concluded full scope audit work at 12
reporting units in 11 countries.
In addition, specified procedures were performed
on a further 7 reporting units in 4 countries.
Our audit scope addressed 79% of the Group’s
revenue.
As key audit matter the following area of focus
has been identified:
• Recoverability of Goodwill
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
Benchmark applied
Rationale for the materiality
benchmark applied
EUR 32,000,000
Revenue
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. It is further
a generally accepted benchmark.
We agreed with the Audit and Risk Committee that we would report to them misstatements above
EUR 3,000,000 identified during our audit as well as any misstatements below that amount which, in
our view, warranted reporting for qualitative reasons.
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Report of the statutory auditor
to the General Meeting of SIG Group AG, Neuhausen am Rheinfall
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 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.
The Group financial statements are a consolidation of 90 entities, comprising the Group’s operating
businesses and centralised functions. The audit strategy for the audit of the consolidated financial
statements was determined taking into account the work performed by the component auditors.
As Group auditor, we performed the audit of the consolidation, disclosures and presentation of the
consolidated financial statements and of the impairment testing of goodwill. Where audits were
performed by component auditors, we ensured that, as Group auditor, we were adequately involved in
the audit in order to assess whether sufficient appropriate audit evidence was obtained from the work of
the component auditors to provide a basis for our opinion. Our involvement comprised communicating
the risks identified at Group level, specifying the audit procedures relating to the accounting of key
audit areas, specifying the materiality thresholds to be applied, conducting virtual meetings with the
component auditors during the planning phase, the interim audit and the year-end audit, review of their
working papers and analysing their reporting.
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.
Key audit matter
How our audit addressed the key audit matter
As per December 31, 2023, the
carrying amount of goodwill
was €3,127.3 million, allocated
to different groups of cash
generating units (CGUs).
The recoverable amounts of
the CGUs are calculated based
on their value in use.
Deriving the value in use
requires significant
management judgement
specifically in determining
future cash flows, discount
rates and terminal growth rates.
Refer to Note 14 – Intangible
assets and Note 5.4 – Critical
accounting judgements,
estimates and assumptions in
the consolidated financial
statements.
We assessed whether the CGUs identified by Management are
appropriate.
We further assessed whether the allocation of goodwill to the
respective group of CGUs, including the reallocation of goodwill
from APAC to IMEA driven by the change of reporting structure in
2023, 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.
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 ensured consistency of Management’s cash flow assumptions
by comparing them to the Group’s 5-year business plan as
approved by the Board of Directors.
• We challenged Management’s cash flow assumptions, and
sensitivity analyses.
• We evaluated the planning accuracy of Management’s forecast
model by comparing historical forecasts to actual results.
• We reconciled the recoverable amount to the accounting records
and recalculated the headroom for each group of CGUs.
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 in
comparison with the Group’s equity value.
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.
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Report of the statutory auditor
to the General Meeting of SIG Group AG, Neuhausen am Rheinfall
Other information
Auditor’s responsibilities for the audit of the consolidated financial statements
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 compensation 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.
Board of Directors’ responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of consolidated financial statements that
give a true and fair view in accordance with IFRS Accounting Standards 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.
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 further description of our responsibilities for the audit of the consolidated financial statements is
located on EXPERTsuisse’s website. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an
internal control system that has been designed, pursuant to the instructions of the Board of Directors,
for the preparation of the consolidated financial statements.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Bruno Rossi
Manuela Baldisweiler
Licensed audit expert
Auditor in charge
Basel, February 22, 2024
Licensed audit expert
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Financial statements
In this section
Financial statements
for the year ended December 31, 2023
SIG Group AG
Income statement
232
233 Balance sheet
233 Notes
238 Proposal of the Board of Directors for the
appropriation of the retained earnings
238 Proposal of the Board of Directors for the
appropriation of the capital contribution reserve
239 Report of the statutory auditor on the audit of the
financial statements
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
Dec. 31,
2023
Year ended
Dec. 31,
2022
97,406.1
8,940.8
106,346.9
(8,028.2)
(11,398.4)
(19,426.6)
86,920.3
838.5
(952.1)
86,806.7
–
86,806.7
147,297.6
7,413.5
154,711.1
(14,671.1)
(9,572.9)
(24,244.0)
130,467.1
1,118.7
(39.9)
131,545.9
–
131,545.9
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Financial statements
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
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. 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 December 31, 2023 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
SIG Group AG prepares its annual consolidated financial statements in line with International Financial
Reporting Standards (“IFRS”), a recognized 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.
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 December 31, 2023 and
December 31, 2022. 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 unrealized 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.
As of
Dec. 31,
2023
As of
Dec. 31,
2022
Note
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
636.2
1,104.2
1,104.2
132,180.0
132,180.0
13.2
13.2
166.1
134,099.7
3,449,752.9
3,449,752.9
3,583,852.6
946.4
856.0
90.4
4,006.4
4,006.4
2,584.8
2,584.8
3,518.9
11,056.5
1,842.6
1,842.6
1,842.6
12,899.1
3,822.7
3,009,082.5
3,009,082.5
558,971.4
472,164.7
86,806.7
(923.1)
3,570,953.5
3,583,852.6
146.5
2,683.4
2,683.4
223,945.7
223,945.7
5.1
5.1
302.4
227,083.1
3,446,252.9
3,446,252.9
3,673,336.0
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
9,135.1
3,822.7
3,188,724.2
3,188,724.2
472,164.7
340,618.8
131,545.9
(510.7)
3,664,200.9
3,673,336.0
SIGAnnual Report 2023 234
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Financial statements
The following significant exchange rates have been applied.
3.4 Current interest-bearing receivables
Average rate for the year
Spot rate as of
Dec. 31,
2023
0.97177
0.89864
Dec. 31,
2022
1.00514
0.95476
Dec. 31,
2023
0.92600
0.83801
Dec. 31,
2022
0.98470
0.92321
As of December 31, 2023, current interest-bearing receivables due from Group companies consist of an
interest-bearing inter-company Swiss Franc loan of CHF 125,616.1 thousand (CHF 209,000.0 thousand
as of December 31, 2022) due from SIG Schweizerische Industrie-Gesellschaft GmbH, and an interest-
bearing inter-company Swiss Franc loan of CHF 6,563.9 thousand (CHF 14,675.8 thousand as of
December 31, 2022) due from SIG Services AG (formerly SIG Combibloc Services AG). The loan
receivable of CHF 125,616.1 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. It was partially repaid in the
year ended December 31, 2023.
3.5 Investments
EUR to CHF
USD to CHF
2.3 Investments
Investments are initially recognized at cost. Investments are analyzed on an annual basis for impairment
indicators and are, if needed, adjusted to their recoverable amount.
The following subsidiary is directly held by the Company.
2.4 Treasury shares
Own shares held by the Company are accounted for as treasury shares. Treasury shares are initially
recognized at acquisition cost and deducted from equity with no subsequent remeasurement. If the
treasury shares are disposed of, the resulting gain or loss is recognized 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 December 31, 2023 consists of a dividend of
CHF 97,406.1 thousand from SIG Combibloc Holdings S.à r.l. (a dividend of CHF 147,297.6 thousand for
the year ended December 31, 2022).
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 December 31, 2023 and December 31, 2022 mainly
consist of management fees charged to direct or indirect subsidiaries.
Name and legal form Registered office
SIG Combibloc
Holdings S.à r.l.
6C, rue Gabriel Lippmann L-5365
Munsbach Grand
Duchy of Luxembourg
As of
Dec. 31, 2023
As of
Dec. 31, 2022
Capital
Votes Capital
Votes
100% 100%
100% 100%
The subsidiaries indirectly held by the Company are listed in note 27 of the consolidated financial
statements of the Company for the year ended December 31, 2023. For additional information about
the acquisitions in 2022 described below, see note 28 of the consolidated financial statements of the
Company for the year ended December 31, 2023.
Acquisition of Scholle IPN
On June 1, 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 bag-in-box and spouted pouch packaging solutions.
The Company paid €424.3 million in cash and transferred 33.75 million newly issued SIG registered
shares with a fair value of CHF 706,050 thousand at the acquisition date to CLIL as part of the
consideration for Scholle IPN. The shares were issued from its authorized share capital on May 23, 2022
(see note 3.11). In addition, there is contingent consideration of a maximum of $300 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 31, 2023, 2024 and 2025.
No payment is expected for the year ended December 31, 2023.
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Financial statements
The shares of Clean Flexible Packaging Holding B.V. were subsequently transferred by the 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-Gesellschaft GmbH (see note 3.7) and by a capital
contribution of CHF 706,050.0 thousand 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 in Asia Pacific (“Evergreen Asia”)
On August 2, 2022, one of the subsidiaries indirectly held by the Company (SIG Schweizerische
Industrie-Gesellschaft GmbH) acquired Evergreen’s chilled carton business in Asia Pacific (“Evergreen
Asia”) from Evergreen Packaging International LLC (“Evergreen”). Evergreen Asia provides chilled
carton packaging solutions in Asia.
The Group paid $335.9 million in cash as consideration for Evergreen Asia. The consideration was
partly financed via the issue of 11,000,000 ordinary shares by the Company from its authorized share
capital on May 18, 2022. The new shares were offered to investors as part of an accelerated book
building process. See note 3.11.
3.6 Trade payables
Trade payables due to Group companies as of December 31, 2023 and December 31, 2022 mainly
relate to intra-group recharges.
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
December 31, 2023.
For the year ended December 31, 2022, other current liabilities also included CHF 596.4 thousand for
termination benefits relating to one former member of the Group Executive Board who left the Group
as of December 31, 2022.
3.9 Accrued expenses
Accrued expenses for the year ended December 31, 2023 include employee benefit obligations of
CHF 1,145.9 thousand (CHF 2,135.2 thousand as of December 31, 2022). There were no payments
outstanding to the pension funds as of December 31, 2023 or December 31, 2022.
3.10 Non-current liabilities
Non-current liabilities primarily consist of liabilities arising due to share-based payment plans (granted
in prior years) 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
December 31, 2023.
3.7 Current interest-bearing liabilities
3.11 Share capital
As of December 31, 2023, current interest-bearing liabilities due to Group companies include an
interest-bearing inter-company Euro loan of CHF 4,006.4 thousand (CHF 463.2 thousand as of
December 31, 2022) from SIG Services AG (formerly SIG Combibloc Services AG).
As of December 31, 2023 and December 31, 2022, the share capital consisted of 382,270,872 shares,
issued and fully paid, representing CHF 3.8 million of share capital. The table below provides an
overview of these shares.
3.8 Other current liabilities
Other current liabilities for the year ended December 31, 2023 primarily include CHF 2,136.8 thousand
for liabilities arising due to share-based payment plans and arrangements (granted in 2021) for certain
members of management and the Board of Directors (CHF 1,552.5 thousand for the year ended
December 31, 2022, for grants in 2020).
In the year ended December 31, 2023, the performance share units (“PSUs”) that were granted to current
and former members of management of the Company under the 2020 PSU plan vested. The settlement
of this 2020 PSU plan in April 2023 resulted in an additional expense of CHF 2,655.5 thousand (excluding
social charges) recognized as part of personnel expenses for the year ended December 31, 2023. The
settlement of the vested PSUs under the 2019 PSU plan in April 2022 resulted in an additional expense
of CHF 6,808.1 thousand (excluding social charges) recognized as part of personnel expenses for the
year ended December 31, 2022.
(Number of shares)
Balance as of January 1, 2022
Issue of shares on May, 18 2022
Issue of shares on May 23, 2022
Balance as of December 31, 2022
Balance as of January 1, 2023
Balance as of December 31, 2023
Total shares
337,520,872
11,000,000
33,750,000
382,270,872
382,270,872
382,270,872
SIGAnnual Report 2023 236
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Our Governance
Financials
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Contents
Financial statements
Issued share capital
On May 18, 2022, the Company issued 11,000,000 registered shares with a nominal value of CHF 0.01
per share from its authorized 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 generated gross proceeds of
CHF 213,400,000, resulting in an increase in the share capital 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 recognized 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 May 19, 2022.
On May 23, 2022, the Company issued 33,750,000 registered shares with a nominal value of CHF 0.01
per share from its authorized share capital under exclusion of the subscription rights of existing
shareholders. SIG Services AG (formerly SIG Combibloc Services AG) acquired the newly issued shares
at nominal value for CHF 337.5 thousand, paid in cash. The Company subsequently reacquired these
shares, also at nominal value. The shares, together with a cash payment, were part of the consideration
for Scholle IPN that was transferred to CLIL on June 1, 2022. 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.
Capital band and conditional share capital
The Company had authorized share capital of CHF 565,062.61 and conditional share capital of
CHF 640,106.48 as of December 31, 2022. As of December 31, 2023, the Company has conditional
share capital of CHF 640,106.48 but, no longer any authorized share capital due to the revision of
Swiss corporate law. It instead has a capital band ranging from CHF 3,440,437.85 (lower limit) to
CHF 4,587,250.46 (upper limit).
Before the Annual General Meeting held on April 20, 2023, the Board of Directors was authorized,
at any time until April 21, 2023, to increase the Company’s share capital through the issue of up to
56,506,261 registered shares. Capital increases from authorized and conditional share capital were
subject to a single combined limit, and could not exceed 64,010,648 shares, equaling CHF 640,106.48.
However, the authority to issue shares from authorized and conditional share capital under exclusion
of the subscription and advance subscription rights respectively was limited to a single combined
maximum of 22,754,174 shares, equaling CHF 227,541.74.
The Annual General Meeting held on April 20, 2023 approved the introduction of a capital band as
introduced under the revised Swiss corporate law as of January 1, 2023. The capital band replaces
the existing authorized share capital. Under the capital band, the Board of Directors is authorized to
increase the share capital by up to 20% of the current share capital if shareholders’ subscription rights
are granted, and up to 10% if shareholders’ subscription rights are excluded. The Board of Directors
may also reduce the share capital by up to 10% through cancellation of shares or nominal value
reduction or by a simultaneous reduction and re-increase of the share capital. The authorization under
the capital band is limited to three years until April 20, 2026 or the full use of the capital band.
The total number of registered shares issued from (i) the capital band where the shareholders’
subscription rights are excluded and (ii) the conditional share capital where the shareholders’
advance subscription rights for equity-linked financing instruments are excluded, may not exceed
38,227,087 registered shares. Within the limit outlined above, the proportion of new shares assigned to
each of the categories is stipulated by the Board of Directors.
The proceeds from an issue of new shares under the capital band 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 favorable 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 December 31, 2023 (also as
of December 31, 2022).
3.12 Capital contribution reserve
The capital contribution reserve consists of the following:
(In CHF thousand)
Capital contribution reserve as of January 1, 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 December 31, 2022
Capital contribution reserve as of January 1, 2023
Dividend payment of CHF 0.47 per share from the capital contribution reserve
Dividend not paid on treasury shares held by the Company
Capital contribution reserve as of December 31, 2023
Balance
2,425,353.6
915,224.6
(151,884.4)
30.4
3,188,724.2
3,188,724.2
(179,667.3)
25.6
3,009,082.5
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 CHF 3,009.1 million as of December 31, 2023
(CHF 3,188.7 million as of December 31, 2022), which is confirmed by the Swiss Federal Tax
Administration. Foreign capital contribution reserves included in the capital contribution reserve
amount to CHF 1,775.1 million (CHF 1,954.7 million as of December 31, 2022). The whole dividend paid
in 2022 and 2023 was distributed from foreign capital contribution reserves. The whole dividend to be
proposed to the Annual General Meeting in April 2024 is expected to be distributed from foreign capital
contribution reserves.
SIGAnnual Report 2023 237
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Financials
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Contents
Financial statements
3.13 Treasury shares
The movements in treasury shares during the year were as follows:
4 Other information
4.1 Employees
(Number of treasury shares or in CHF thousand)
Number
Amount
Number
Amount
2023
2022
Balance as of January 1
Purchases
Transfer under equity-settled share-based
payment plans and arrangements
Balance as of December 31
23,295
396,856
(510.7)
(9,095.1)
2,430
(53.7)
749,126 (16,434.0)
(380,166)
39,985
8,682.7
(923.1)
(728,261) 15,977.0
(510.7)
23,295
The number of full-time equivalent employees in 2023 and 2022 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 or purchase positions for shares of the Company as of December 31, 2023
and 2022.
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 39,985 shares
for this purpose as of December 31, 2023 (23,295 shares as of December 31, 2022), representing an
amount of CHF 923.1 thousand (CHF 510.7 thousand as of December 31, 2022).
In the year ended December 31, 2023, the Company transferred 380,166 treasury shares
(728,261 treasury shares in the year ended December 31, 2022), representing CHF 8,682.7 thousand
(CHF 15,977.0 million for the year ended December 31, 2022) 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.
Significant shareholders
Haldor Foundation1
Laurens Last2
al Obeikan Fahad3
BlackRock Inc (Mother company)
UBS Fund Management (Switzerland) AG
Swisscanto Fondsleitung AG
Voting rights/purchase
options as of
Dec. 31,
2023
Dec. 31,
2022
9.95%
9.64%
5.00%
9.95%
9.19%
5.00%
5.0%/0.24% 3.57%/0.01%
3.18%
3.13%
3.18%
3.13%
1 The direct shareholder is Winder Pte Ltd.
2 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. Laurens Last indirectly held 35,921,188 shares (35,129,733 shares as of December 31, 2022) via his
100% shareholding in Clean Holding B.V. (formerly CLIL Holding B.V.). In addition, Laurens Last reported by disclosure notification
913,408 option rights as per the relevant reporting date. However, based on more recent reporting of management transactions
by Laurens Last, he held 1,073,430 option rights to receive registered shares of the Company as of December 31, 2023 (no option
rights reported as of December 31, 2022).
3 The direct shareholder is Al Obeikan Group for Investment Company CJS.
For further details about the significant shareholders as of December 31, 2023, 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 December 31, 2023
and 2022.
SIGAnnual Report 2023 238
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Financials
Appendix
Contents
Financial statements
4.3 Granting of instruments under share-based payment plans
The members of the Board of Directors receive 40% of their total compensation in SIG shares that
are blocked for three years. The Company granted 38,959 blocked shares to the members of the
Board of Directors in the year ended December 31, 2023 (39,932 blocked shares in the year ended
December 31, 2022), representing a value of CHF 951.4 thousand based on the grant date fair value
(CHF 934.4 thousand for the year ended December 31, 2022).
The members of the Group Executive Board participate in a management 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 after a three year vesting period.
In the year ended December 31, 2023, the Company granted 117,099 PSUs under the 2023 PSU
plan to members of the Group Executive Board employed by the Company, representing a value
of CHF 2,734.3 thousand based on the grant date fair value. In the year ended December 31, 2022,
114,983 PSUs were granted under the 2022 PSU plan to members of the Group Executive Board
employed by the Company, representing a value of CHF 2,249.1 thousand.
Further details about compensation and shareholdings of the Board of Directors and Group Executive
Board are included in the Compensation Report (see the sections marked as “audited”). Additional
information about the share-based payment plans and arrangements is also included in note 31 of the
consolidated financial statements for the year ended December 31, 2023. Note 4 includes information
about organizational changes in the Group Executive Board and the Board of Directors.
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”). As of December 31, 2023, the debt totaling €1,994.8 million
(€2,458.1 million as of December 31, 2022) is taken up by indirectly held subsidiaries of the Company.
See further note 23 of the consolidated financial statements of the Company for the year ended
December 31, 2023.
Subsequent events
There have been no events subsequent to December 31, 2023 that would require an adjustment to or
disclosure in these financial statements.
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
Dec. 31,
2023
472,164.7
86,806.7
558,971.4
As of
Dec. 31,
2022
340,618.8
131,545.9
472,164.7
Retained earnings to be carried forward
558,971.4
472,164.7
The Board of Directors will propose to the Annual General Meeting to be held on April 23, 2024 to carry
forward retained earnings of CHF 559.0 million.
Proposal of the Board of Directors for the appropriation of the
capital contribution reserve
(In CHF thousand)
Capital contribution reserve as of December 31, 2022
Dividend payment of CHF 0.47 per share in April 2023 from the capital
contribution reserve
Dividend not paid in April 2023 on treasury shares held by the Company
Proposed dividend of CHF 0.48 per share in April 2024 from the capital
contribution reserve
Capital contribution reserve carried forward after cash dividend
3,188,724.2
(179,667.3)
25.6
(183,490.0)
2,825,592.5
Provided that the proposal of the Board of Directors is approved by the Annual General Meeting to be
held on April 23, 2024, the dividend will amount to CHF 0.48 per share and is expected to be paid from
the Company’s foreign capital contribution reserve. Dividends are not paid on treasury shares.
SIGAnnual Report 2023 239
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Our Governance
Financials
Appendix
Contents
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
Audit scope
We have audited the financial statements of SIG Group AG (the Company), which comprise the income
statement for the year ended December 31, 2023, the balance sheet as at December 31, 2023, and
notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the financial statements (pages 232 to 238) comply with Swiss law and the Company’s
articles of incorporation.
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.
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
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
Benchmark applied
Rationale for the materiality
benchmark applied
CHF 17,900,000
Total Assets
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
895,000 identified during our audit as well as any misstatements below that amount which, in our view,
warranted reporting for qualitative reasons.
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.
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 compensation 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.
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 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.
SIGAnnual Report 2023 240
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Financials
Appendix
Contents
Report of the statutory auditor
to the General Meeting of SIG Group AG, Neuhausen am Rheinfall
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 further description of our responsibilities for the audit of the financial statements is located on
EXPERT-suisse’s website. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an
internal control system that has been designed, pursuant to the instructions of the Board of Directors,
for the preparation of the financial statements.
We further confirm that the proposed appropriation of retained earnings and the proposed repayment
of the capital contribution reserve comply 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
Manuela Baldisweiler
Licensed audit expert
Auditor in charge
Basel, February 22, 2024
Licensed audit expert
SIGAnnual Report 2023
Appendix
In this section
242 Overview of ESG disclosures
243 Stakeholder engagement
247
257
Progress towards our sustainability targets
Contribution to the United Nations sustainability
development goals
259 Greenhouse gas emissions basis for reporting
262 EU Taxonomy
269 Task Force on Climate-related Financial
272
312
Disclosures (TCFD)
Global Reporting Initiative (GRI) content index
Report on non-financial matters in accordance
with the Swiss Code of Obligations
242
Strategic Report
Our Governance
Financials
Appendix
Contents
ESG disclosures
Overview of ESG disclosures
We include our reporting on environmental, social, and governance (ESG) topics in the SIG Annual
Report.
The Sustainability chapter
sustainability approach. This appendix provides further disclosures, including:
outlines our commitments, progress, and performance in each area of our
• A list of ESG reporting frameworks we follow (or are preparing to align with) and additional disclosures
we make (see below).
• How we listen and respond through stakeholder engagement
• A summary of progress towards our sustainability targets
• Our contribution to the United Nations Sustainable Development Goals.
• Detailed scope and methodologies used as our basis for reporting on greenhouse gas emissions.
• A content index
of our reporting in accordance with the Global Reporting Initiative (GRI) Standards.
• Our material topics, how we identify these and a summary of our management approach on each
), as well as links to more details on our approach to material
(included within the GRI content index
ESG topics on our website.
• Our TCFD report
• Our EU Taxonomy report
• Our report on non-financial matters in accordance with the Swiss Code of Obligations
Reporting frameworks
We align our sustainability reporting and ESG disclosures with recognized external frameworks,
including:
• CDP: We disclose detailed information for investors and customers on our management and
performance on climate, forests, and water through CDP.
• Dow Jones Sustainability Indices (DJSI): We responded to the S&P Global Corporate Sustainability
Assessment survey for an investor audience for the third time this year.
• EcoVadis: We submit extensive information to support our annual assessment by EcoVadis for customers.
• EU Corporate Sustainability Reporting Directive (CSRD): We are evaluating the requirements of the
CSRD and respective European Sustainability Reporting Standards (ESRS), and working to integrate
necessary elements into our corporate governance and future reporting.
• EU Taxonomy: Last year, we voluntarily conducted a first eligibility analysis of our aseptic carton
business activities following the Taxonomy framework. We have now expanded the eligibility analysis
to include our bag-in-box, spouted pouch and chilled carton businesses, which were acquired
mid-way through 2022. See our EU taxonomy report included as an appendix to the Annual Report
• Global Reporting Initiative (GRI): We report annually in accordance with the GRI Standards. Our GRI
reporting for the 2023 reporting year is included in this Annual Report, which was published in 2024.
See GRI content index
new Greenhouse Gas Protocol on Carbon Removals and Land Sector (currently in pilot phase) as a
basis to establish a FLAG (forest land and agriculture) target once robust data is available in line with
the Science Based Target initiative’s requirements.
• Human rights due diligence and transparency: As part of our workstream on human rights, we
conducted a detailed evaluation of due diligence activities, including related reporting required to meet
new regulations on this topic, such as the new Swiss Ordinance on Due Diligence and Transparency in
relation to Minerals and Metals from Conflict-Affected Areas and Child Labour (DDTrO) (see below)
and the forthcoming German Supply Chain Due Diligence Law (Lieferkettensorgfaltspflichtengesetz).
• Swiss Code of Obligations Art. 964j-l (Ordinance on Due Diligence and Transparency in relation to
Minerals and Metals from Conflict-Affected Areas and Child Labour): Based on an assessment of
our obligations regarding minerals and metals for 2023, we have concluded that SIG falls below the
quantitative thresholds and therefore is exempt from the new Swiss requirements on due diligence
and reporting on minerals and metals from conflict affected areas. The outcome of our assessment
of our due diligence and reporting obligations regarding child labor will be presented in a separate
report by the end of June 2024.
• Swiss law on reporting obligations on non-financial matters: We report in line with the new
requirements of the Swiss law on reporting obligations on non-financial matters (Swiss Code of
Obligations article 964b). See our report on non-financial matters included as an appendix to the Annual Report
• Swiss Ordinance on Climate Reporting: We are currently evaluating the requirements under the
Swiss Ordinance on Climate Reporting, which is based on TCFD, and is applicable for the SIG Group
from the 2024 financial year.
• Task Force on Climate-related Financial Disclosures (TCFD): We align our public reporting with
the TCFD recommendations, including scenario analysis, to address climate-related risks and
opportunities. See TCFD
• Taskforce on Nature-related Financial Disclosures (TNFD): Building on our established efforts
to source renewable raw materials from sustainably managed forests and related to our broader
commitments to prevent biodiversity loss and reduce our water footprint, we are using the TNFD
framework to inform our assessment of risks and opportunities for our business and working towards
TNFD reporting in future. See Towards nature positive
• United Nations Global Compact: As a signatory to the United Nations Global Compact, we submit an
annual Communication on Progress.
• United Nations Sustainable Development Goals (SDGs): We describe how we are contributing to the
SDGs in this report. See Contributing to the United Nations Sustainable Development Goals
Find out more about our approach to ESG
topics in relation to its ten principles
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.
• Greenhouse Gas (GHG) Protocol: Our greenhouse gas emissions are reported in accordance with
). We are also reviewing guidance from the
the GHG Protocol (see our GHG emissions basis for reporting
See our website
SIGAnnual Report 2023 243
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Financials
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Stakeholder engagement
Stakeholder engagement
We engage with stakeholders to understand what matters most to them, and we respond to their feedback.
How we engaged with stakeholders in 2023
How we engage
Key topics and concerns
Our response
Customers
• Customer questionnaires
• Regular interactions with customers
through sales and service
• Dedicated meetings and workshops
on sustainability topics
• Partnerships, including to develop
new products and support recycling
initiatives
Customers want us to meet their requirements on
a broad range of environmental and social issues,
help them comply with regulations related to
packaging, and support progress towards their
sustainability goals, such as helping them reduce
the life-cycle carbon footprint of their products,
and ensure traceability of responsibly sourced
products and materials. Recyclability of products,
recycling infrastructure, and increased use of
renewable and recycled materials remain high on
our customers’ agendas – as well as meeting
evolving consumer needs, including for nutritious
and sustainable food and drinks.
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.
We commission independent, critically reviewed, ISO-compliant life-cycle assessments of our
packaging solutions and provide customers with customized product carbon emission calculations
on request.
We also help customers promote the sustainability of their products’ packaging and report their use
of responsibly sourced materials through our FSC™ and ASI certifications and on-pack labels, as well
as the use of polymers linked to forest-based renewable materials via independent ISCC PLUS
certification.
This year, we continued to partner with customers on local recycling initiatives, including through
our social recycling programs in Brazil and Indonesia (with food products provided by customers as
rewards for recycling) and on a school program in Thailand. See Resource+
We actively seek to secure partnerships with customers that provide nutritious food and drink, and
we helped them to develop and launch nutritious new products this year, including plant-based
alternatives to milk and the world’s first long-life probiotic drink. See Food+
Employees
• Annual global employee survey
• SIGer internal social app
• Regular day-to-day dialogue
• Formal appraisals
• Consultation with employee
representatives
• Townhall meetings
• Recognition schemes
• Future+ Day
• Community engagement programs
• Health and safety committees
Our global employee engagement survey results
indicated overall engagement remained strong in
2023. We outperformed the industry benchmark
in all categories, most significantly in relation to
learning and development, diversity, equity, and
inclusion, retention, and corporate responsibility
(including on social and environmental questions,
). But there
see Engaging our people on sustainability
is room for improvement in relation to
engagement, collaboration, and physical working
conditions.
We shared employee survey results with managers and employees at global and local levels, and
created action plans to address specific concerns. This year, these focused on initiatives to empower
leaders, better manage wellbeing and workload, and improve reward and recognition.
We launched the SIGer internal social media app to foster a sense of community across SIG, and help
colleagues in different parts of the business share their stories and learn from each other. We hosted
activities throughout the year to engage employees, including through celebrations to mark SIG’s
170th anniversary and our global SIG Future+ Day (with the help of our Future+ champions,
see Communities
).
We expanded the SIG Shine Awards to offer further non-monetary recognition in seven categories.
Similar awards were launched at a regional level and we established initiatives that enable colleagues
to recognize each other for outstanding efforts.
62% of employees agreed that significant actions have been taken to address priorities identified
in the last survey, up from 60% in 2022. See Our people
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Stakeholder engagement
How we engaged with stakeholders in 2023 continued
How we engage
Key topics and concerns
Our response
Industry
• Industry associations, including the
Alliance for Beverage Cartons and
the Environment (ACE), the Global
Recycling Alliance for Beverage
Cartons and the Environment
(GRACE), CEFLEX (a circular
economy for flexible packaging),
and national associations
• The Consumer Goods Forum
• The Alliance to End Plastic Waste
• Industry platforms such as
AIM-PROGRESS, EUROPEN
(the European Organisation for
Packaging and the Environment),
the European Bioplastics association,
EXTR:ACT, 4evergreen, MISTA (a new
food innovation platform), and the
Science Based Targets Network
(SBTN) Corporate Engagement
Program
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
151 investor meetings in 2023)
• Investor conferences (seven in 2023,
meeting with 48 institutional investors)
• Investor questionnaires, including
CDP and the S&P Global Corporate
Sustainability Assessment survey
(used to inform the Dow Jones
Sustainability Indices)
• Ad hoc visits to our production sites
Industry peers are keen to work together on
common advocacy goals and to meet shared
industry challenges, such as increasing collection
and recycling rates for used packaging.
Companies beyond our own industry also seek to
work with others to develop common standards
and methodologies related to wider sustainability
topics.
We continued to work through industry associations and with others in our industry to improve
packaging collection and recycling around the world – including contributing to updates of the ACE
industry roadmap and ACE Design for Recyclability Guidelines, and to the Circularity by Design
guidance for fiber-based packaging published by 4evergreen in 2023. We also joined the Alliance to
End Plastic Waste to improve the circularity of our bag-in-box and spouted pouch solutions globally.
See Resource+
We joined the food innovation platform MISTA to explore innovative ways to create a more
regenerative global food system and co-create next-generation food solutions with other member
companies. We also worked with food technology company AnaBio Technologies to develop the
world’s first long-life probiotic drink and continued to help start-ups launch nutritious new food and
beverage products through the SIG Incubator program. See Food+
SIG is now a SBTN Corporate Engagement Program participant, pledging alignment with the SBTN’s
goals and vision, and contributing advice and end-user insights to the development of SBTN methods
and tools. See Towards nature positive
Investors seek sustainable, long-term returns.
The main ESG topics they raised in 2023
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 Taskforce on Nature-related Financial
Disclosures (TNFD).
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 recognized ESG ratings (see External recognition
was central to our presentations to investors during our capital markets day in 2023.
) and sustainability
We communicate in this report how we are aligning with the EU Taxonomy, TCFD recommendations,
and other reporting frameworks. See ESG disclosures
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Stakeholder engagement
How we engaged with stakeholders in 2023 continued
How we engage
Key topics and concerns
Our response
Suppliers
• Regular engagement and
partnerships
• Communication of our expectations
on ethical, social, and environmental
topics
• Compliance assessments and audits
Suppliers want to know what our requirements are
on responsibility so they can understand how to
meet them.
We communicate our expectations on ethical, social, and environmental topics through our Supplier
Code of Conduct.
We continued to encourage suppliers to maintain certification to standards such as FSC™ and ASI on
responsible sourcing, and engage with key suppliers to support our net positive ambitions.
See Our supply chain
We work in partnership with suppliers to identify and source materials that enable us to develop
lower-carbon packaging solutions that enhance circularity.
Sustainability experts and non-governmental organizations (NGOs)
• Responsibility Advisory Group (RAG)
• Regular conversations with experts
from academia, institutes,
government, and NGOs
• 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, such as
WWF Switzerland
Experts want us to show we are managing our
most material issues, setting ambitious targets,
and reporting transparently on our performance,
following recognized international standards.
Independent experts in our RAG met with
members of our Group Executive Board twice
in 2023 to provide insight and feedback on our
approach as we continue to refine our net positive
approach. They agreed that SIG’s approach is
delivering systemic change beyond the
packaging value chain, particularly in relation to
the environmental priorities of climate and nature,
and they recommended we sharpen our focus on
key risks and opportunities. See Integrating external
insight
for direct feedback from RAG members.
We have built sustainability 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. We also use international protocols and standards in the
management of specific focus areas.
This year, we obtained approval from the SBTi for our latest science-based greenhouse gas emissions
targets that support our pathway to Net Zero. See Climate+
We engaged IFEU to conduct ISO-conformant life-cycle assessments of further pack formats and
markets this year, and invited its team of experts to tour our plant in Linnich (Germany) to help them
gain a better understanding of our operations and filling lines.
Our first on-the-ground project through our partnership with WWF Switzerland to protect, restore,
and improve management of forests got underway in Mexico, and we made progress on our
commitments to change the way forests are valued, managed, protected, and restored as a member
of WWF’s Forests Forward program. See Forest+
We continued to collaborate, including with the Sustainability and Health Initiative for NetPositive
Enterprise (SHINE) and Forum for the Future, to drive the net positive agenda and catalyze
transformative change.
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Stakeholder engagement
How we engaged with stakeholders in 2023 continued
How we engage
Key topics and concerns
Our response
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.
Existing and emerging regulations feed into our identification of material issues, and we address
topics relevant to public policy through our sustainability action areas and enablers. See Appendix on
ESG Disclosures
See relevant topic sections in the Sustainability chapter of our Annual Report for more on our
response to specific regulatory priorities.
Local communities around SIG production sites
• Community engagement program
• Family days and open days at our
Issues raised by communities are generally locally
specific.
sites
• Recycling initiatives
• Projects run by our Foundation
We have continued to increase the positive social and environmental impact we have on communities
through the SIG Foundation and our employee-led community engagement initiatives, including SIG
Future+ Day. See Communities
We also invited members of the local community near our headquarters in Neuhausen (Switzerland)
to join us for a food festival to celebrate SIG’s 170th anniversary this year.
We extended our community recycling programs that use innovative models to support
underprivileged communities by enabling people to earn rewards for collecting waste – in Brazil and
Indonesia. We have also established a major new partnership with the German Development
Cooperation in Egypt that monitors ethical working conditions for waste collectors. See Resource+
Our Foundation engaged with NGOs to scale up its flagship Cartons for Good program that helps
communities turn food loss from surplus crops into nutritious school meals for underprivileged
children. See Food+
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Progress towards our sustainability targets
Progress towards our sustainability targets
2025 target
Climate+
Material issue: Climate change
Progress tracker
1
2023 performance
Net Zero value chain greenhouse gas emissions by 2050
More work to do
Our science-based Net Zero target and the accompanying near- and long-term targets (below) were
approved by the SBTi this year. Our pathway to Net Zero prioritizes decarbonization of our operations
and value chain, and we are implementing a series of workstreams to support progress.
Reduce Scope 1 and 2 greenhouse gas emissions by 42% by 2030 –
and by 90% by 2050 (from 2020)
On track
We have cut our total Scope 1 and 2 greenhouse gas emissions by 71% in 2023 and by 79% from the
2020 baseline.
Reduce Scope 3 greenhouse gas emissions by 51.6%2 per liter packed
by 2030 – and by 97% by 2050 (from 2020)
More work to do
Our Scope 3 emissions per liter packed decreased by 6% from 2020, slightly behind our
reduction pathway.
Maintain 100% renewable electricity2 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
On track
On track
Transition to 100% bioethanol or other bio-materials for printing our
aseptic cartons3
On track
We used 100% renewable electricity to make our packs and compensated all non-renewable energy
for production through Gold Standard CO2 offsets.
We have more than tripled our total on-site solar capacity to 34.5 MWp with two new installations
coming online in Germany this year and further developments are in the pipeline. On-site solar power
met 5.1% of our global electricity needs for production this year and, overall, renewable PPAs
(both on- and off-site) met 21.8%.
Eight of our nine aseptic carton production plants have already transitioned from fossil-based
solvents to plant-based bioethanol for printing. We expect our plant in Riyadh (Saudi Arabia) to
achieve this transition in the coming year.
Reduce CO2 emissions from inbound and out bound logistics by 18%
(from 2020)4
On track
CO2 emissions from our inbound and outbound logistics across SIG Group have decreased by 18%
from 2020.
1 Greenhouse gas emissions data includes our production plant in Baie-d’Urfé and our production plant in Voronezh.
2 Target wording changed in line with SBTi-approved target.
3 Target wording amended to clarify that this applies to our aseptic cartons only.
4 Target revised to include the bag-in-box, spouted pouch, and chilled carton businesses we acquired in 2022.
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Progress towards our sustainability targets continued
2025 target
Forest+
Material issue: Biodiversity and forest ecosystems
Progress tracker
2023 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 products1 by 2030
On track
We have begun our first on-the-ground project through our five-year partnership with WWF
Switzerland – to improve the land management of 100,000 hectares and restore a further
750 hectares of degraded forest to create critical habitats and corridors for jaguars in Mexico.
Partner with a non-governmental organization (NGO) to develop a
methodology to measure the impact of FSC™ certification
More work to do
Following initial work with the Institute for Energy and Environmental Research (our NGO partner)
to refine our approach, we will revisit this target as we work towards nature positive.
Work with customers to include the FSC™ label on 100% of the cartons
we sell (up from 97% in 2020)2
On track
Maintain 100% FSC™-certified supply of paperboard for our cartons4
On track
Almost all (99%) of our aseptic cartons carried the FSC™ label.3 To close the remaining gap, we are
working with the small number of aseptic carton customers not using the FSC™ label to integrate it
into their next décor design update, as well as beginning to engage with customers of our newly
acquired chilled carton business on this topic. Overall, 94% of the cartons (aseptic and chilled) we
sold in 2023 carried the FSC™ label.
We continued to purchase 100% of the paperboard for our aseptic cartons with FSC™ certification5
– and achieved this milestone for our chilled carton business (acquired last year) from January 2024.
Overall, 98% of the paperboard for our cartons was procured with FSC™ certification in 2023.
1 Based on the equivalent forest area needed to continually regenerate the wood needed to produce all the SIG cartons made in
4 Target wording revised to clarify that it only applies to our cartons (aseptic and chilled). Our cartons use paper-based liquid
2020 (the year we set the commitment) all over again.
2 Target wording amended to clarify that this target refers only to cartons (as our other packs do not use paperboard) and to clarify
the baseline figure SIG is working from.
packaging board, referred to throughout as “paperboard”. Our supply chains for bag-in-box and spouted pouch solutions are not
connected to forest-based materials as we do not manufacture or sell the cardboard box of our bag-in-box solutions.
5 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and ensures that an
3 The FSC™ label that customers can include on SIG packs is the FSC™ Mix label, which means the product is made with a mixture of
equivalent amount of FSC™ certified wood is procured at the beginning of the value chain.
materials from FSC-certified forests, recycled materials, and/or FSC-controlled wood.
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Progress towards our sustainability targets continued
2025 target
Resource+6
Progress tracker
2023 performance
Material issue: Waste and circular economy
Launch a full barrier carton linked to 100% renewable materials1
On track
SIG Terra Alu-free + Full-barrier had its first commercial launch this year. It is the world’s first full
barrier solution for aseptic carton packs with no aluminum layer that can be used with oxygen-
sensitive products, such as juices, as well as liquid dairy. This solution provides comparable barrier
properties to our standard aseptic carton solutions that include a layer of aluminum foil. We are
working to add Forest-based polymers as an option for SIG Terra Alu-free + Full barrier to complete
this target with SIG Terra Alu-free + Full barrier + Forest-based polymers.
Further reduce the amount of non-paper2 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
Target replaced
We have replaced this target with new quantified targets for paper content in our cartons by 2025
and 2030 (see below).
Develop a full barrier aseptic carton with at least 85% paper content
(excluding closure) by 2025 – and at least 90% paper content
(including closure) by 2030
New target
Offer a recycle-ready3 bag-in-box and spouted pouch solution in all
our relevant market segments
New target
SIG cartons already contain 75% paper content on average, sometimes more, and we have set
targets to increase this even further as part of our renewed Resource+ ambition. In addition to a
continued focus on increasing collection and recycling rates of beverage cartons, achieving this new
target will enable our cartons to be recycled in regions where only paper recycling streams are
available.
We increased sales of our recycle-ready spouted pouch and continued to offer the first
APR4-recognized recyclable bag-in-box. We are piloting a circular bag-in-box solution that links the
polymers to post-consumer recycled plastics5 and recycles the bags after use. We have also
established detailed guidelines on designing for recycling that will be integrated into our development
of all new bag-in-box and spouted pouch solutions.
1 Excluding negligible constituents, such as inks and pigments.
2 Target wording amended from “fiber” to “paper” to align with wording of new quantified targets.
3
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
4 Association of Plastic Recyclers.
5 Via an independently certified mass balance system.
6 A target, and accompanying KPI, for the newly identified material issue of water is in development.
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Progress towards our sustainability targets continued
2025 target
Resource+ continued
Progress tracker
2023 performance
Partner with stakeholders to implement dedicated and country-
specific roadmaps to support increased collection and recycling of
beverage cartons, bag-in-box, and spouted pouches in priority
countries that account for more than 90% of our global packaging
sales (by weight)
On track
Scale up and expand our community recycling model
On track
We have Going Circular local roadmaps in priority countries that together account for 90% of our
global packaging sales (by weight) – including priority countries identified this year for our newly
acquired bag-in-box and spouted pouch businesses. We continued to partner with industry,
governments, municipalities, customers, and communities to implement local programs to support
increased collection and recycling. These include a new partnership with the German Development
Cooperation in Egypt that monitors ethical working conditions for waste collectors, the expansion of
our social model for collection to Indonesia, new recycling facilities in development in Australia and
Brazil, and awareness and collection programs in a range of other countries. In Europe, our focus is on
developing common industry guidelines and advocating effective policies to enable more collection
and recycling of used packaging.
The SIG Foundation launched a new Recycle for Good program in Indonesia to incentivize recycling
and provide social support for low-income people by offering rewards in exchange for recyclable
waste – with a strong focus on used beverage cartons and polymer pouches. SIG also launched a
new partnership with the German Development Cooperation in Egypt that supports ethical working
conditions for waste pickers.
25% reduction in grams of waste per m2 of packaging material used to
produce our aseptic cartons1 (from 2016)
More work to do
Our waste rate from production of our aseptic carton packs has decreased by 3% this year – and by
10% from 2016.
Zero landfill – all waste to be recycled or used as renewable biofuel
On track
Maintain certification to ISO 14001:2015 at all production plants
On track
90.8% of waste from production was reused or recycled, 2.0% was recovered for energy, and only
around 0.8% went to landfill. We have achieved zero waste to landfill at 16 of our production plants.
We maintained our global ISO 14001 certification and extended it to include the production plants that
were acquired during 2022.
1
Wording amended to clarify that this target is for aseptic carton production only.
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Progress towards our sustainability targets continued
2025 target
Food+
Material issue: Product safety and integrity
Progress tracker
2023 performance
Maintain existing ISO 9001:2015 certifications at production plants
(including all aseptic carton plants)1
Maintain top level GFSI2-recognized certification at all packaging
production plants3
On track
On track
We maintained certification to the ISO 9001:2015 quality management standard across our aseptic
carton business, and at nine of our bag-in-box, spouted pouch, and chilled carton production plants.
We achieved top level certification to GFSI-recognized food safety standards at 26 of our 27 relevant
production plants. The remaining chilled carton plant in Taiwan, acquired in 2022, maintained
certification to ISO 22000:2018 and is working towards certification to a GFSI-recognized standard.
Additional strategic topic: Access to nutrition and hydration4
Use SIG’s position within a more sustainable food supply system to
create demonstrable positive impacts on nutrition and hydration
On track
Increase the total volume of nutritious5 food and beverage products
brought to consumers in SIG packs by 50% by 2030 (from 2020)
On track
Support two start-ups per year through our SIG Incubator program to
share unused filling capacity to deliver nutritious food safely and
efficiently6
On track
Create self-sustaining, scalable models for the SIG Foundation’s
Cartons for Good project7
More work to do
We partnered with customers to enable the development of nutritious food and beverages globally,
including plant-based milk and protein beverages – and with food technology company AnaBio
Technologies to create the world’s first long-life probiotic drink. We joined MISTA, a new food
innovation platform, to explore innovative ways to create a more regenerative global food system,
as well as continuing to work with NGO partners to explore opportunities to foster a regenerative
food supply.
The integration of bag-in-box and spouted pouches into our portfolio (through acquisitions in 2022)
has significantly expanded the amount and types of nutritious food we help customers deliver. In
2023, 15.5 billion liters of nutritious food and beverage products were brought to consumers in SIG
packs, up 39% from the 2020 baseline. The amount of nutritious food packed in our cartons alone
has increased by 10% from 2020 to 12.3 billion liters.
We have supported six start-ups to date through the SIG Incubator program. In 2023, the program
helped Earth and Iron launch a plant-based, highly nutritious drink in the UK, as well as supporting our
innovative partnership with AnaBio Technologies (see Food+; Joint innovation leads to world’s first long-life
probiotic drink
spouted pouch filling capacity and expertise.
). In 2024, we will extend SIG Incubator to include access to our bag-in-box and
The SIG Foundation engaged with NGO partners this year to help scale up Cartons for Good in
Bangladesh – where the pilot project turned a further 4.5 metric tons of food loss into 23,000 school
meals in 2023 – and expand it to Egypt.
1 Target amended following integration of our newly acquired bag-in-box, spouted pouch, and chilled carton businesses.
2 Global Food Safety Initiative (GFSI)-recognized certifications include the Brand Reputation Compliance Global Standards
(BRCGS) packaging standard, Safe Quality Food (SQF), Food Safety System Certification (FSSC 22000), and International
Featured Standard (IFS).
4 Additional strategic topic (not a material issue).
5 Different types of products are categorized according to their nutritional profile based on the independent Health Star Rating
System.
6 Target amended to include any unused filling capacity and reflect the new name of the SIG Incubator program (formerly
3 Target expanded to include other GFSI-recognized standards (not just BRCGS), following integration of our newly acquired bag-in-
SIGCUBATOR).
box, spouted pouch, and chilled carton businesses.
7 Target wording shortened by removing the full name of the SIG Way Beyond Good Foundation.
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Progress towards our sustainability targets continued
2025 target
Sustainable innovation
Material issue: Innovation in products and services
Progress tracker
2023 performance
Launch a full barrier carton linked to 100% renewable materials1
On track
2023 performance is reported earlier in this table under Resource+.
Further reduce the amount of non-paper2 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
Develop a full barrier aseptic carton with at least 85% paper content
(excluding closure) by 2025 – and at least 90% paper content
(including closure) by 2030
Offer a recycle-ready3 bag-in-box and spouted pouch solution in all
our relevant market segments
Target replaced
2023 performance is reported earlier in this table under Resource+.
New target
2023 performance is reported earlier in this table under Resource+.
New target
2023 performance is reported earlier in this table under Resource+.
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 aseptic carton packs4 (by 2024)
More work to do
We announced the launch of our prototype next-generation filling machine, SIG NEO, in 2021. It is
designed to reduce use of energy, hydrogen peroxide, and water. The first commercial filling is
underway which will help us confirm whether we have met our reduction targets. We expect to report
results in 2024.
Reduce use of consumables by 25% for the next-generation filling
machine for small format aseptic carton packs5
More work to do
Initial development of our next-generation filling machine for small format packs has commenced,
and reduction of consumables is being considered in the concept phase.
1 Excluding negligible constituents, such as inks and pigments.
2 Target wording amended from “fiber” to “paper” to align with wording of new quantified targets.
3
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
4 Targeted reductions compared with our previous generation filling machines. Target wording changed to clarify this refers to
filling of aseptic cartons.
5 Target wording changed to clarify this refers to filling of aseptic cartons.
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Progress towards our sustainability targets continued
2025 target
Our supply chain
Material issue: Responsible suppliers
Progress tracker
2023 performance
Ensure 100% of significant suppliers1 accept our Supplier Code of
Conduct or have an equivalent code in place
Audit 50% of high-risk significant suppliers each year
On track
On track
80% of significant suppliers have signed up to our Supplier Code of Conduct or have an equivalent
code in place.
In 2023, we audited one of the six suppliers identified as high risk through self-assessments in 2022.
A further four of the suppliers identified as high risk in 2022 are no longer high-risk because they have
accepted our Supplier Code of Conduct, or provided SEDEX SMETA audit or EcoVadis results (or an
equivalent). This means we have met our annual target to audit 50% of high risk significant suppliers
this 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
We updated our Responsible Sourcing Directive to include our newly acquired businesses, and
provided training for all global, regional, and local procurement teams.
Material issue: Sustainable raw materials
100% A-materials2 from certified sources
More work to do
We increased the proportion of A-materials from certified sources from 74% to 75% (by volume)
for our aseptic cartons this year. Overall, 69% (by volume) of A-materials for all our packs – including
chilled cartons and polymer-based bag-in-box and spouted pouch solutions – were from certified
sources in 2023.
Maintain 100% FSC™-certified supply of paperboard for our cartons3
On track
2023 performance is reported earlier in this table under Forest+.
Transition to 100% bioethanol or other bio-materials for printing our
aseptic cartons4
On track
2023 performance is reported earlier in this table under Climate+.
1 See Our supply chain for how we define significant suppliers.
2 A-materials are the raw materials that go directly into our packs: paperboard, polymers, aluminum foil, ink, and solvents for aseptic
cartons; paperboard, polymers, ink, and solvents for chilled cartons; and polymers and films for bag-in-box and spouted pouches.
(SIG does not manufacture or sell the cardboard box of our bag-in-box solutions.)
3 Target wording revised to clarify that it only applies to our cartons (aseptic and chilled). Our cartons use paper-based liquid
packaging board, referred to throughout as “paperboard”. Our supply chains for bag-in-box and spouted pouch solutions are not
connected to forest-based materials as we do not manufacture or sell the cardboard box of our bag-in-box solutions.
4 Target wording amended to clarify that this applies to our aseptic cartons only.
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Progress towards our sustainability targets continued
2025 target
Human rights
Material issue: Human rights1
Progress tracker
2023 performance
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 significant suppliers3 accept our Supplier Code of
Conduct or have an equivalent code in place
Audit 50% of high-risk significant suppliers3 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
Building on the risk assessments of our operations and supply chain that we conducted in 2022,
we completed two-yearly SEDEX SMETA audits of our operations (see related target below), as well
as further in-depth human rights risk assessments of our supply chain, to inform our work to identify
salient human rights issues for SIG.
We conducted an assessment of potential human rights risks and impacts through SEDEX SMETA
audits at all 27 of our production sites globally – including our newly acquired chilled carton,
bag in box, and spouted pouch production sites, which joined our two-yearly SMETA audits for
the first time.2
On track
2023 performance is reported earlier in this table under Our supply chain.
On track
On track
2023 performance is reported earlier in this table under Our supply chain.
2023 performance is reported earlier in this table under Our supply chain.
Includes freedom of association, freely chosen labor, living standards, and protection of the child.
Includes one audit within the 2023 cycle that was completed in early January 2024.
1
2
3 See Our supply chain for how we define significant suppliers.
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Progress towards our sustainability targets continued
2025 target
Our people
Progress tracker
2023 performance
Material issue: Diversity, equity, and inclusion
Increase percentage of women in leadership positions to 30%
On track
We continued our focus on recruiting and developing women into leadership positions, including
through our Women Acceleration program. Overall, women represented 25% of our leaders in 2023,
up from 23% in 2022, and we remain on track to hit our 30% target by 2025.
Maintain survey score linked to inclusive environment above industry
benchmark1
On track
We achieved a score of 85% for diversity, equity, and inclusion in our 2023 employee survey,
eight points above the industry benchmark.1
Material issue: Employee satisfaction, development, and working environment
Sustain our training and development investment above industry
benchmark
More work to do
Achieve engagement level above industry benchmark1
On track
Increase % of employees who feel SIG has 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
On track
On track
We expanded training and development opportunities, and provided an average of 23.6 hours of
training per employee.2 This is an increase from 20.9 hours last year, but falls just short of the
pre-pandemic industry benchmark of 24.0 hours.
We further strengthened our overall engagement score from 83% to 85% in 2023, two points above
the industry benchmark.1
62% of employees agreed that significant actions have been taken to address priorities identified in
the last survey, up from 60% in 2022.
We continued to extend our non-monetary recognition programs, and 63% of employees felt we
made adequate use of recognition and rewards other than money to encourage good performance
in 2023. This is a significant improvement from 58% last year, but is one point below the industry
benchmark.1
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
2 Excludes employees in our bag-in-box and spouted pouch business, who will be integrated into our training data from 2024.
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Progress towards our sustainability targets continued
2025 target
Progress tracker
2023 performance
Health, safety, and wellbeing
Material issue: Health, safety and wellbeing
Zero recordable cases1
Achieve a lost-time case2 rate in the top 20% of industry peers3
More work to do
There were 65 recordable cases across SIG Group in 2023, 4% less than in 2022, and the total
recordable case rate for SIG Group decreased by 7% to 0.80 recordable cases per 200,000 hours
worked.
Target
discontinued
We have discontinued this target to focus on more meaningful performance drivers, with a strong
focus on integration of the bag-in-box, spouted pouch, and chilled carton businesses we acquired
in 2022 into our established health and safety systems, procedures, and reporting.
Define a holistic strategy and roadmap to foster wellbeing at SIG
More work to do
We rolled out our holistic program to promote physical, mental, financial, and social wellbeing through
global awareness activities, guides, training, and a new podcast to equip employees and managers
with know-how to support wellbeing.
Communities
Additional strategic topic: Thriving communities4
Increase the impact of community engagement programs by 50%
(from 2020)
More work to do
We have increased the overall impact of our employee-led community engagement programs by
29% from the 2020 baseline to achieve an impact score of 21,997 in 20235 – including through local
initiatives held on our Future+ Day global engagement day and a campaign to raise awareness of
biodiversity and promote conservation activities.
Create self-sustaining, scalable models for the SIG Foundation’s
Cartons for Good project6
More work to do
2023 performance is reported earlier in this table under Food+.
Scale up and expand our community recycling model
On track
2023 performance is reported earlier in this table under Resource+.
Governance and ethics
Additional strategic topic: Fair business practices4
Mandatory annual Code of Conduct training for all employees
On track
Approximately 99% of employees completed an annual certification on the SIG Code of Conduct
and approximately 95% completed additional in-person or virtual training on the Code of Conduct.
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.
4 Additional strategic topic (not a material issue).
5
Impact score is derived through an assessment of our employee-led community engagement projects – by the employees and
communities involved in them – based on who benefits from each project, the type of impact it has and its potential to contribute
to the United Nations Sustainable Development Goals.
6 Target wording shortened by removing the full name of the SIG Way Beyond Good Foundation.
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Contribution to the United Nations Sustainable Development Goals
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 focus our support on the SDGs (and specific targets) where we see opportunities for our business
and partnerships to make a meaningful contribution by supporting systemic change at scale (see
right). These are closely aligned with the areas where we have the most significant impact. We are
driving progress through the four action areas of our sustainability approach.
This targeted approach – focusing on the biggest risks to people or the environment, and the greatest
benefits our packaging solutions 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.
We also contribute to other SDGs through our sustainability approach. For example:
• Our commitment to health and safety, and fair labor 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 (led by the SIG Foundation), 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 programs considers
their alignment with the full range of SDGs.
The table shows the most relevant SDG targets where our action contributes. The relevant SDG targets
are listed with the related SIG sustainability action area.
Detailed description of our progress in each of these sustainability action areas can be found here:
• Climate+: see Sustainability; Climate+
and
Sustainability: Appendix; Progress towards our sustainability targets; Climate+
• Forest+: see Sustainability; Forest+
and
Sustainability: Appendix; Progress towards our sustainability targets; Forest+
• Resource+: see Sustainability; Resource+
and
Sustainability: Appendix; Progress towards our sustainability targets; Resource+
• Food+: see Sustainability; Food+
and
Sustainability: Appendix; Progress towards our sustainability targets; Food+
1 Based on analysis by the Forest Stewardship Council™ in 2018.
Targeted support for the SDGs
SDG
Most relevant SDG targets where our action contributes*
Sustainability
action area
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
Food+
2.3 By 2030, double the agricultural productivity Food+ 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
Food+
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
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
Climate+
Resource+
Climate+
Forest+
Resource+
Food+
* Relevant targets identified through an analysis based on the methodology outlined in the UNSC/GRI publication Business Reporting
on the SDGs: An Analysis of Goals and Targets.
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Contribution to the United Nations Sustainable Development Goals continued
Targeted support for the SDGs continued
SDG
Most relevant SDG targets where our action contributes*
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
Sustainability
action area
Climate+
Resource+
Food+
SDG
Most relevant SDG targets where our action contributes*
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
Sustainability
action area
Climate+
Forest+
Climate+
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
Resource+
Forest+
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
12.6 Encourage companies, especially large and transnational
companies, to adopt sustainable practices and to integrate
sustainability information into their reporting cycle
Resource+
Forest+
Food+
Resource+
Forest+
12.7 Promote public procurement practices that are sustainable, in
accordance with national policies and priorities
Forest+
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
Resource+
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
Forest+
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
Forest+
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
Climate+
Food+
Resource+
Forest+
* Relevant targets identified through an analysis based on the methodology outlined in the UNSC/GRI publication Business Reporting
on the SDGs: An Analysis of Goals and Targets.
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Greenhouse gas emissions basis for reporting
Greenhouse gas emissions basis for reporting
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 footnote to table below).
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).
Scope 1 and 2 data are collected and reported for the production of sleeves and spouts for aseptic
and chilled cartons, and packaging materials for spouted pouch and bag-in-box solutions. Assembly,
offices, and training centers are excluded due to their limited relevance for Scope 1 and 2.
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 elsewhere in this Annual Report
(see Climate+
and the Global Reporting Initiative (GRI) content index
).
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), our joint venture, and offices (unless they are directly attached to a
production facility).
Scope 1 and 2 emissions for SIG Group (thousand metric tons of CO2-equivalent)1
Scope 1
Scope 2 (market based)2
Total
2020
31.4
69.4
100.7
2021
30.2
46.3
76.6
2022
26.7
47.7
74.4
2023
21.0
0.5
21.5
The data reported in this table differs from that reported in the Climate+ section of the report, which excludes our production plant in
Baie-d’Urfé and our production plant in Voronezh in line with the scope of our sustainability reporting.
In line with the GHG Protocol, we have restated our Scope 3 GHG emissions data for previous years in
line with our recalculation policy, which follows GHG Protocol requirements.
Our data collection and calculation procedures for Scope 3 follow a materiality assessment for each
category.
Data related to the bag-in-box, spouted pouch, and chilled carton businesses we acquired in 2022 is
integrated into our GHG reporting from 2020. This is the baseline year for our science-based Net Zero
target and accompanying targets on near- and long-term GHG emissions reductions for SIG Group
that were approved by the SBTi in 2023.
This year, we focused on improving the quality of data and developing a more consolidated data
collection process for the newly acquired businesses. We have also added Category 10 (processing
of sold products) to our inventory to consider the business model of our bag-in-box and spouted
pouch businesses, which differs from the system-based model of our carton business (see Category 10
description
).
Some categories of Scope 3 emissions 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 inform
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 that we commissioned in 2022 and 2023.
Inventory boundaries
The inventory boundaries of our GHG accounting take into consideration all relevant GHG Protocol
standards.
Our 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), sulfur hexafluoride (SF₆), and nitrogen trifluoride (NF3). These are typically
included in the emissions factors we use and converted using IPCC 2013 conversion factors.
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 from 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 LCA 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 details on Category 1 on the next page).
Includes our production plant in Baie-d’Urfé and our production plant in Voronezh.
1
2 Location-based emissions (based on the electricity grid average amount) totaled 163.7 thousand metric tons of CO2 equivalent
in 2023.
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Greenhouse gas emissions basis for reporting continued
Our Scope 3 emissions include the following categories:1
Category 5: waste generated in operations
Category 1: purchased goods and services
Category 1 emissions account for the largest share of our value chain GHG emissions. This category
includes all materials used to produce and ship our cartons (including sleeves, closures, and straws)
and our bag-in-box and spouted pouch solutions (including film, bags, pouch, and fitments), as well as
the materials used to manufacture filling machines and other related equipment.
Services, information and communications technology, and items such as office equipment are
excluded as they represent a very small share in this category.
We aim to increase the share of specific emissions factors from suppliers. The share of specific data in
this category for SIG Group is 60% this year (up from 59% in 2022), with additional suppliers related to
our newly acquired businesses added to our data collection program in 2023.
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.
For our bag-in-box and spouted pouch businesses, we based our initial classification of non-product
outputs of our aseptic carton business to determine an average waste volume that is considered to
undergo further treatment.
For our chilled carton business, data on non-product output in waste categories and treatments paths
is available and used in our calculations.
Category 3: fuel and energy-related activities
Category 6: business travel
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.
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. The number of employees
per region is used as a basis for extrapolation. Flights are relatively well documented and account for
86% for SIG Group.
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 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, packs are shipped as empty sleeves to SIG customers. Deliveries
of straws and closures do not contribute significantly to this category and are not reported. Inter-
company transportation is considered to be negligible.
For our 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.
We have not established an inventory of the transportation activities related to raw material shipments
for our bag-in-box, spouted pouch, and chilled carton businesses. 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 businesses, we exclude some limited inter-company
transportation from our reporting as 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.
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, equipment and spare parts are excluded from Category 4 for all our businesses, as
well as closures for our chilled carton business, as they do not significantly contribute to this category.
For our bag-in-box and spouted pouch businesses, we have used a similar model for both food service
and household applications.
Secondary and tertiary packaging for packed products are excluded as this relates predominantly to
the product and not its primary packaging.
Category 10: Processing of sold products
For our aseptic and chilled carton businesses, we have an established system-based business model
whereby the packs that we produce (including sleeves, closures, and fitments) are filled and packed on
SIG machines (which we report in Category 11), with service solutions also provided by SIG.
A similar system-based model is not widely established for our bag-in-box and spouted pouch
businesses. Therefore, we have added category 10 to our GHG inventory to capture all emissions
related to the processing of packaging materials produced in our bag-in-box and spouted pouch
operations.
1 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).
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Greenhouse gas emissions basis for reporting continued
For the entire packaging material product portfolio of our bag-in-box and spouted pouch businesses,
we estimate emissions for product treatment related to the processing depth of the product (how
close it is to the end product).
For products delivered as formed bag-in-box and spouted pouches, this is the filling and closing
process. For laminates and films delivered to customers to make bag-in-box and spouted pouch
products, this is filling. For laminates and films delivered for use by customers for other purposes,
emissions are based on the production of bags.
For our bag-in-box and spouted pouch businesses, 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 and equipment are generally in use for decades and are mainly refurbished or
recycled at end-of-life so their contribution to this category is considered to be negligible.
Scope 3 emissions for SIG Group by category (metric tons CO2-equivalent)1
Category
2020
2021
2022
2023
1 Purchased goods and services
3 Fuel and energy-related
1,181,485
1,217,364
1,217,314
1,153,343
activities
53,129
48,614
49,613
49,817
4 Upstream transportation
and distribution
5 Waste generated in operations
6 Business travel
9 Downstream transportation
and distribution
10 Processing of sold products
11 Use of sold products
12 End-of-life treatment of
sold products
12 Biogenic carbon
139,550
898
8,457
66,082
1,494
170,655
135,083
1,017
7,801
66,583
536
176,401
119,240
1,050
8,440
71,286
2,801
187,802
118,614
982
12,775
64,660
779
230,606
274,542
153,039
280,710
161,340
294,078
154,740
268,482
151,794
The bag-in-box and spouted pouch production process includes the application of fitments. The share
of fitments delivered for applications other than bag-in-box and spouted pouch production is minor,
and related emissions are excluded from reporting as they are not material.
The emissions factors for the treatment steps are taken from utility consumptions from the produced
equipment and from preliminary results of the LCAs we commissioned in 2022 and 2023.
We calculate and report Category 10 emissions based on sales data.
Category 11: use of sold products
For our aseptic and chilled carton businesses, Category 11 covers the use of our 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 characterized
by average electricity demand and the need for pressurized air, steam, and hydrogen peroxide for the
estimated lifetime capacity of the machine/device using the emissions factors of the reporting year.
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 centers for
demonstration purposes are not included.
For our bag-in-box and spouted pouch businesses, we provide filling machines and other related
equipment. 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. These machines combine film and fitments and fill product in a single machine at a
customer’s manufacturing site. For both these types of machines, average consumption data has
been used to approximate lifetime emissions.
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.
Category 12: end-of-life treatment of sold products
For our aseptic and chilled carton businesses, 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.
1
Includes our production plant in Baie-d’Urfé and our production plant in Voronezh.
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EU Taxonomy
EU Taxonomy
Overview
As part of the European Green Deal, the European Union (EU) aims to enable a sustainable transition
of the economy and to reach net zero greenhouse gas (“GHG”) emissions by 2050. In this context, the
European Commission developed an action plan on financing sustainable growth aimed at directing
investments towards more sustainable projects and activities. A key cornerstone of the action plan is
the EU’s Taxonomy Regulation 2020/852, which establishes a classification system of environmentally
sustainable economic activities.
Under the EU Taxonomy Regulation, an economic activity is considered taxonomy-eligible if it can
potentially contribute to at least one of the EU’s six climate and environmental objectives in the
EU Taxonomy’s delegated acts. An economic activity is considered environmentally sustainable,
or taxonomy-aligned, if it makes a substantial contribution to at least one of the six climate and
environmental objectives by meeting certain technical screening criteria, while at the same time not
significantly harming any of these objectives and meeting minimum social safeguards.
The six climate and environmental objectives to which an activity can contribute are:
• climate change mitigation,
• climate change adaptation,
• sustainable use and protection of water and marine resources,
• transition to a circular economy,
• pollution prevention and control, and
• protection and restoration of biodiversity and ecosystems.
SIG Group AG (“SIG” or the “Company”, and together with its subsidiaries, “SIG Group”) voluntarily
reports taxonomy eligibility for the second consecutive year. For information on the SIG Group’s
progress towards Taxonomy-alignment, refer to section “Our advancement towards Taxonomy-
alignment” below.
The disclosures in our EU Taxonomy report are prepared based on the Taxonomy Regulation article 8
and the related delegated acts. The legal framework of the EU Taxonomy was further expanded
during 2023. It currently consists of the following: the Taxonomy Regulation,1 the Climate Delegated
Act2 (as amended in June 20233), the Disclosures Delegated Act4 (as amended in June 20235),
the Complementary Climate Delegated Act,6 and the Environmental Delegated Act.7 In addition,
the EU Taxonomy FAQs and Notices published by the European Commission have been taken into
consideration, where relevant. The terminology in the Taxonomy Regulation is new and may be
subject to ongoing changes and uncertainty in interpretation. Therefore, this document presents our
interpretation to date and this year’s reporting may not be applied in the same way in the future.
Assessment of our activities’ Taxonomy-eligibility
Our packs play a key role by offering customers the lowest carbon packaging solutions in each relevant
market segment. They have a carbon footprint up to 80% lower than alternatives, such as plastic tubs
and bottles, aluminum cans, or glass bottles. Aseptic cartons, bag-in-box, and spouted pouches also
help reduce carbon emissions by preserving food for long periods without the need for refrigerated
delivery or storage – and by cutting food waste. All our cartons are designed to be fully recyclable. Our
SIG Terra portfolio includes recycle-ready solutions for the bag of our bag-in-box and for our spouted
pouch. See Climate+
and Sustainable innovation for further details
.
Already in 2022, we voluntarily disclosed an initial eligibility analysis of our aseptic carton business
considering the EU Taxonomy’s Climate Delegated Act. The activity identified as eligible for our
aseptic carton business was 3.6 Manufacture of other low carbon technologies. During 2023, we have
conducted a thorough review and update of our eligibility assessment based on the publication in
2023 of the Environmental Delegated Act and the amended Climate Delegated Act as well as evolving
market practices. We have also included the bag-in-box, spouted pouch and chilled carton businesses
that we acquired in 2022 in our updated eligibility assessment.
For our updated assessment of Taxonomy-eligible activities, we reviewed the provision of goods such
as carton 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. Our
Taxonomy-eligible activities were identified by mapping SIG’s business activities with the economic
activities and, where relevant, the Nomenclature of Economic Activities (“NACE”) codes listed in the
Taxonomy’s Climate and Environmental Delegated Acts.
The updated eligibility assessment led to a larger disaggregation of products and services for
the aseptic carton business and inclusion of our bag-in box, spouted pouch and chilled carton
businesses. Both the aseptic and chilled carton businesses are assessed to be eligible under activity
3.6 Manufacture of other low carbon technologies under the climate change mitigation objective. The
bag-in-box and spouted pouch businesses are assessed to be eligible under activity 1.1 Manufacture of
plastic packaging goods under the transition to a circular economy objective.
1 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to
facilitate sustainable investment and amending Regulation (EU) 2019/2088.
2 Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021 supplementing Regulation (EU) 2020/852.
3 Commission Delegated Regulation (EU) 2023/2485 of June 27, 2023 amending Delegated Regulation (EU) 2021/2139.
4 Commission Delegated Regulation (EU) 2021/2178 of July 6, 2021 supplementing Regulation (EU) 2020/852.
5 Commission Delegated Regulation (EU) 2023/2486 of June 27, 2023 amending Commission Delegated Regulation (EU) 2021/2178.
6 Commission Delegated Regulation (EU) 2022/1214 of March 9, 2022 amending Delegated Regulation (EU) 2021/2139.
7 Commission Delegated Regulation (EU) 2023/2486 of June 27, 2023 supplementing Regulation (EU) 2020/852.
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EU Taxonomy
The table below provides an overview of the allocation of our activities to the economic activities listed
in the EU Taxonomy. Changes may be made to the classification of economic activities in the future as
the rules around the EU Taxonomy evolve.
Economy activity in
accordance with the
EU Taxonomy
Description of economic
activity
Application to SIG business
Objective: Climate change mitigation
3.6 Manufacture of other low
carbon technologies
Manufacture of technologies
aimed at substantial GHG
emission reductions in other
sectors of the economy, where
those technologies are not
covered by activities 3.1 to 3.5
Aseptic carton
Chilled carton
Objective: Transition to a circular economy
1.1 Manufacture of plastic
packaging goods
Manufacture of plastic
packaging goods
Bag-in-box
Spouted pouch
Activity 3.6 – Manufacture of other low carbon technologies
We consider our aseptic and chilled carton packaging solutions, which are able to substantially reduce
GHG emissions for our clients in comparison to other packaging formats, as Taxonomy-eligible under
activity 3.6. With this, we assess the manufacturing and provision of filling lines and aseptic and chilled
carton sleeves as one combined technology. Our provision of after-market services is currently not
included in the EU Taxonomy and considered as non-eligible. We are continuously monitoring the
inclusion of new activities and will re-assess the inclusion of after-sale services in the future.
Activity 1.1 – Manufacture of plastic packaging goods
We consider our manufacturing and sale of bag-in-box and spouted pouch-related products as
Taxonomy-eligible under activity 1.1. Activity 1.1 focuses on the manufacturing of plastic packaging
goods. Therefore, we have excluded our provision of filling lines and other related equipment in the
bag-in-box and spouted pouch businesses. Our provision of after-market services is currently not
included in the EU Taxonomy and considered as non-eligible.
Our Taxonomy KPIs and accounting policies
Our Taxonomy disclosures follow the Taxonomy Regulation and relevant delegated acts and
publications as listed above. We use a simplified version of the Taxonomy’s reporting template to
report on our Taxonomy-eligibility. All key performance indicators (“KPIs”) disclosed cover the year
ended December 31, 2023. The change in Taxonomy-eligible KPIs in comparison to the prior year is
mainly based on our updated eligibility assessment described above.
Our progress towards Taxonomy-alignment is described in section “Our advancement towards
Taxonomy-alignment” below.
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EU Taxonomy
Turnover KPI
The proportion of Taxonomy-eligible turnover has been calculated as the net turnover (revenue) derived from products associated with Taxonomy-eligible economic activities (numerator) divided by the total
net turnover (denominator).
The denominator is net turnover as presented in the SIG Group’s consolidated statement of profit and loss and other comprehensive income under the line item “Revenue”. For further details on our revenue
accounting policy, see note 6 of the consolidated financial statements for the year ended December 31, 2023.
The numerator is the revenue derived from provision of products associated with Taxonomy-eligible economic activities.
For the year ended December 31, 2023, 92.6% of the SIG Group’s revenue was Taxonomy-eligible under the objectives of climate change mitigation and transition to a circular economy.
The following table provides an overview of our Taxonomy-eligible turnover.
Year ended December 31, 2023
Substantial contribution criteria
Economic activities (1)
A. Taxonomy-eligible activities
Manufacture of other low carbon technologies
Manufacturing of plastic packaging goods
Turnover of Taxonomy-eligible activities
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible activities
Total
1 EL = Taxonomy eligible activity for the relevant objective.
N/EL = Taxonomy non-eligible activity for the relevant objective.
Code(s)
(2)
Turnover
(3)
Proportion
of Turnover
(4)
Climate
Change
mitigation
(5)
Climate
change
adaptation
(6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiversity
and
ecosystems
(10)
(In € million)
%
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
CCM 3.6
CE 1.1
2,433.8
556.0
2,989.7
75.3%
17.2%
92.6%
EL
N/EL
75.3%
N/EL
N/EL
0.0%
N/EL
N/EL
0.0%
N/EL
N/EL
0.0%
N/EL
EL
17.2%
N/EL
N/EL
0.00%
240.5
7.4%
3,230.3
100.0%
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Capital expenditure (“CapEx”) KPI
The CapEx KPI is defined as Taxonomy-eligible CapEx (numerator) divided by total CapEx (denominator).
The denominator consists of additions to tangible and intangible assets, before depreciation, amortization and any re-measurements as well as additions to tangible and intangible assets resulting from
business combinations (excluding goodwill) as presented in note 12 Property, plant and equipment, note 13 Right-of-use assets and note 14 Intangible assets of the consolidated financial statements for the year
ended December 31, 2023.
The numerator consists of CapEx that is related to assets or processes that are associated with Taxonomy-eligible economic activities. We allocated the Taxonomy-eligible CapEx based on the percentage of
our Taxonomy-eligible turnover by type of packaging solution. By doing this, we also ensured that no double counting of eligible CapEx occurs.
For the year ended December 31, 2023, 92.5% of the SIG Group’s CapEx was Taxonomy-eligible under the objectives of climate change mitigation and transition to a circular economy.
The following table provides an overview of our Taxonomy-eligible CapEx.
Year ended December 31, 2023
Substantial contribution criteria
Economic activities (1)
A. Taxonomy-eligible activities
Manufacture of other low carbon technologies
Manufacturing of plastic packaging goods
CapEx of Taxonomy-eligible activities
B. Taxonomy-non-eligible activities
CapEx of Taxonomy-non-eligible activities
Total
1 EL = Taxonomy eligible activity for the relevant objective.
N/EL = Taxonomy non-eligible activity for the relevant objective.
Code(s)
(2)
CapEx
(3)
Proportion
of CapEx
(4)
Climate
Change
mitigation
(5)
Climate
change
adaptation
(6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiversity
and
ecosystems
(10)
(In € million)
%
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
CCM 3.6
CE 1.1
375.7
51.0
426.7
34.4
461.1
81.5%
11.1%
92.5%
7.5%
100.0%
EL
N/EL
81.5%
N/EL
N/EL
0.0%
N/EL
N/EL
0.0%
N/EL
N/EL
0.0%
N/EL
EL
11.1%
N/EL
N/EL
0.0%
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Operating expenditure (“OpEx”) KPI
The OpEx KPI is defined as Taxonomy-eligible OpEx (numerator) divided by total OpEx (denominator).
The denominator consists of direct non-capitalized costs related to research and development, maintenance and repair costs, expenses for short-term leases and expenses related to day-to-day serving of
property, plant and equipment. Direct costs for training and other human resource needs are not included in the denominator (or the numerator). Research and development costs recognized as an expense
are included in note 14 of the consolidated financial statements for the year ended December 31, 2023. This amount includes all non-capitalized research and development costs that is directly attributable to
research and development activities (and excludes depreciation and amortization expense). Other values of the denominator are derived from internal reporting systems, which are not directly reconcilable with
the consolidated financial statements. Short-term leases are not significant (see note 5.5.2 of the consolidated financial statements for the year ended December 31, 2023).
The numerator consists of the OpEx related to assets or processes that are associated with Taxonomy- eligible activities. We allocated the Taxonomy-eligible OpEx based on the percentage of our Taxonomy-
eligible turnover by type of packaging solution. By doing this, we also ensured that no double counting of eligible OpEx occurs.
For the year ended December 31, 2023, 92.5% of the SIG Group’s OpEx were Taxonomy-eligible under the objectives of climate change mitigation and transition to a circular economy.
The following table provides an overview of our Taxonomy-eligible OpEx.
Year ended December 31, 2023
Substantial contribution criteria
Economic activities (1)
A. Taxonomy-eligible activities
Manufacture of other low carbon technologies
Manufacturing of plastic packaging goods
OpEx of Taxonomy-eligible activities
B. Taxonomy-non-eligible activities
OpEx of Taxonomy-non-eligible activities
Total
1 EL = Taxonomy eligible activity for the relevant objective.
N/EL = Taxonomy non-eligible activity for the relevant objective.
Code(s)
(2)
OpEx
(3)
Proportion
of OpEx
(4)
Climate
Change
mitigation
(5)
Climate
change
adaptation
(6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiversity
and
ecosystems
(10)
(In € million)
%
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
EL, N/EL1
CCM 3.6
CE 1.1
95.1
26.0
121.0
72.7%
19.8%
92.5%
EL
N/EL
72.7%
N/EL
N/EL
0.0%
N/EL
N/EL
0.0%
N/EL
N/EL
0.0%
N/EL
EL
19.8%
N/EL
N/EL
0.0%
9.8
7.5%
130.8
100.0%
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Our advancement towards Taxonomy-alignment
Do no significant harm (“DNSH”)
In 2023, we have made major advancements towards testing the Taxonomy-alignment and meeting
the technical screening criteria. The Taxonomy-alignment assessment is ongoing, and our current
progress is summarized below.
Further details about our commitments, targets, progress and performance in relation to topics
described below are included in the sustainability part of our Annual Reports in the sub-sections
Climate+, Resource+, Forest+, Sustainable innovation and Responsible culture: Human rights.
Additional information can also be found in our published environmental, social and governance
(“ESG”) policies covering various ESG matters (https://www.sig.biz/en/responsibility/esg-topics).
Substantial contribution
For all eligible activities in the carton business, we have identified the applicable substantial
contribution criteria and performed a pilot assessment of the aseptic carton solutions eligible under
activity 3.6 Manufacture of other low carbon technologies. In the absence of prescribed GHG emission
reduction performance thresholds, we have developed a structured methodology to quantify and
assess the substantial GHG emission reductions in comparison to the best performing alternative on
the market. This methodology is supported by our life-cycle assessments, which are conducted in line
with international standards such as ISO 14040.
We are committed to continue offering our customers the lowest carbon packaging solutions in every
market segment, and work to reduce the carbon footprint of our packs at every stage of their life-cycle.
We continue to work on the substantial contribution of eligible products under activity 1.1 Manufacture
of plastic packaging goods. The introduction of circular polymers suitable for food contact applications
is one part of our sustainable innovations in the bag-in-box and spouted pouch businesses. In 2023,
we have joined forces with our partners to pilot a new circular bag-in-box solution in the Netherlands.
The pilot involves partners throughout the value chain to create an innovative circular system on a
mass balance basis. With more and more customers asking for recycled content in their packaging,
our innovative circular bag-in-box solution can support their sustainability ambitions and help them
comply with emerging regulations. Furthermore, we are using lightweight bag-in-box as a solution to
steadily replace rigid plastic. We are also working to make more of our bag-in-box and spouted pouch
solutions recycle-ready. Our SIG Terra portfolio includes recycle-ready solutions for the bag of our
bag-in-box and for our spouted pouches. Bag-in-box solutions for dairy are already recycle-ready, and
our bag-in-box for water is the first to be recognized as 100% recycle-ready by the US Association of
Plastic Recyclers (APR).
We have also initiated the assessment of the DNSH criteria for the aseptic and chilled carton solutions
eligible under activity 3.6 Manufacture of other low carbon technologies under the climate change
mitigation objective. We have carried out the assessment at the activity, company and production site
or plant level. Below, we describe our approach to assess whether there is any harm to the other five
climate or environmental objectives.
Climate change adaptation
Building on our ESG commitments relating to climate change, we performed a comprehensive
physical climate risk assessment. We have identified the exposure and vulnerability of our owned
and leased production sites to a wide range of climate-related chronic and acute hazards based
on the Taxonomy requirements (eg. heatwaves, floods, droughts, precipitation). The asset-level
quantification of climate-related physical risks was conducted through scenario analysis and was
based on Representative Concentration Pathway (“RCP”) scenarios 2.6 and 8.5 by 2030 and 2050.
We have initiated the process of amending adaptation solutions for relevant climate risks. For more
information about climate risk assessments on our value chain, refer to the “Risk management”
section of our TCFD report
Sustainable use and protection of water and marine resources
Building on our ESG commitments relating to environment, health and safety (“EHS”), we have
assessed our activities for relevant sites regarding the sustainable use and protection of water and
marine resources in line with the recommendations of the Taskforce on Nature-related Financial
Disclosures (”TNFD”), analyzing the requirements regarding water quality preservation (“WFD”),
water stress avoidance and water impact assessment (eg. environmental impact assessment (“EIA”)
or comparable process). We included in our analysis the availability of an ISO 14001 certification for
an environmental management system, using the WWF Water Risk Filter (“WWF WRF”) and, where
relevant, other internal and external data sources. The WWF WRF is based on sites’ geographic
location, which determines a site’s basin-related risks, as well as characteristics of its operating nature
(eg. its reliance upon water and its water use performance given the nature of the business/site), which
impacts a site’s operational-related risks.
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Transition to a circular economy
Minimum safeguards
Building on our ESG commitments relating to product stewardship, we aim to lead the way towards
a fully circular packaging system. We have, for all activities at group level, evaluated the degree of
fulfillment of the criteria, where relevant, such as the re-use and use of secondary raw materials and/
or reused components in our manufactured products, or the durability, recyclability, disassembly and
adaptability of products manufactured. 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 – all underpinned by use of renewable energy.
Pollution prevention and control
The DNSH criteria require that the economic activity in question does not lead to the production,
use or trade of chemical substances listed in certain EU regulations and directives (eg. EU regulation
2019/1021, 2017/852, EC 1907/2006 Annex XVII and the REACH directive). We understand the
challenges companies are facing with the DNSH criteria for pollution prevention and control and are
in the process of implementing an in-depth screening and monitoring process for relevant substances
that aims to analyze the compliance with the relevant EU regulations and directives.
Protection and restoration of biodiversity and ecosystems
Building on our ESG commitments relating to EHS, we have initiated a process to identify sites in or
near biodiversity-sensitive or protected areas in line with the TNFD’s recommendations as well as
the principles and methodology of the Science Based Targets Network’s (“SBTN”). We based our
self-assessment on the WWF Biodiversity Risk Filter (“WWF BRF”) and ISO 14001 certification. The
WWF BRF is a free-of-charge, web-based, spatially explicit corporate- and portfolio-level screening,
and prioritization tool for biodiversity-related risks. It allows us to understand and assess the
biodiversity-related risks of our production sites. By using spatially explicit data on biodiversity and
freshwater at global scale, the tool provides location-specific and industry-specific assessments of
biodiversity-related physical and reputational risks.
The minimum safeguards are drawn from principles expressed by the OECD Guidelines for
Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, the Fundamental
Conventions of the International Labor Organization and the International Bill of Human Rights. Their
objective is to ensure that any activity labeled as Taxonomy-aligned meets minimum governance
standards and does not violate specific social norms, including human and labor rights. We have used a
structured assessment to document our compliance with the minimum safeguards at group level. The
assessment covers the SIG Group and considers the recommendations for the operationalization of
the minimum safeguards as set forth in the Final Report on Minimum Safeguards from the EU Platform
on Sustainable Finance.
Outlook
Throughout 2024, we will continue our work and expect to conclude our Taxonomy-alignment
assessment for activity 3.6 Manufacture of other
low carbon technologies. For activity 1.1.
Manufacturing of plastic packaging goods, we plan an initial pilot assessment for the circular
economy criteria.
Our assessment may evolve, and we will ensure to update our reporting in line with information from
the European Commission and market interpretations. For the year ending December 31, 2024, we
expect to disclose our first Taxonomy-alignment results in our 2024 Annual Report.
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Task Force on Climate-related Financial Disclosures
In 2023, topics discussed in the RSG meeting included the Group’s forest/biodiversity project with the
WWF and various aspects relating to ESG disclosure requirements.
This report covers our disclosures following the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
Governance
The Board of Directors (BoD), acting collectively, has the ultimate responsibility for the conduct of
business of SIG Group AG (“SIG” or the “Company”, and together with its subsidiaries, the “Group” or
the “SIG Group”) 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.
Our sustainability approach consists of four key action areas that together deliver our net positive
ambition: Climate+, Food+, Resource+ and Forest+. It includes targeted activities, eg. on climate
change mitigation and adaptation under the action area climate+, while activities in the other action
areas are undertaken to mitigate climate change outside of SIG’s value chain, e.g. by reducing food
waste. The key action areas comprise projects and activities resulting from the double materiality
assessment, which is performed in line with the Global Reporting Initiative (“GRI”) to capture both
potential impacts of SIG’s value chain on climate change and risks for the business. See our GRI Index,
section “Material topics”
.
The BoD’s Nomination and Governance Committee (NGC) oversees the Group’s strategy and
governance on corporate responsibility for environmental, social, and governance (ESG) matters, in
particular regarding key issues that may affect the Group’s business and reputation, including climate-
and nature-related risks and opportunities. The NGC advises the BoD on such matters.
The Audit and Risk Committee (“ARC”) reviews and discusses with management and, to the extent
applicable and relevant, with the Group’s assurance providers, the Group’s corporate sustainability
reports. It makes recommendations to the BoD on the Group’s public reporting on ESG matters and
monitors the Group’s performance against the Group’s corporate sustainability metrics.
The Group Corporate Responsibility Director provides updates on the Group’s sustainability approach
and ESG performance to the NGC and the BoD twice a year, and provides input to the BoD in its annual
strategy meeting. This ensures that the BoD maintains oversight of key climate- and nature-related
aspects and KPIs that are relevant to SIG’s business. In 2023, all of SIG’s four key action areas were
covered in BoD meetings. The BoD also approves the Group’s ESG policies.
Ultimate accountability for the Group’s ESG performance and progress lies with the CEO and
the Group Executive Board (GEB). This accountability is underpinned by an ESG-related element
incorporated in the GEB members’ short-term incentive plan. GEB meetings cover, where relevant,
items on sustainability and ESG topics, including climate-related issues.
GEB members are part of the Responsibility Steering Group (RSG), which also includes senior
representatives of key functions and each of the regions. The RSG meets twice a year to review
progress and ensure alignment of ESG-related work across the business. Together with the CEO and
other members of the GEB, the RSG governs climate- and nature-related issues at an operational level.
Members of the GEB also discuss sustainability topics with the independent Responsibility Advisory
Group (RAG), a group of external experts who provide strategic input to the Group’s RSG and GEB and
challenge us to improve. In 2023, the RAG focused on understanding SIG’s role in delivering the most
sustainable packaging solutions in the context of the increasingly urgent need for action on global
challenges. Example of topics discussed in RAG meetings in 2023 include SIG’s progress along its Net
Positive approach and its sustainability strategy, and the review of developments in key areas such as
climate and nature/biodiversity.
For more information on our governance of climate-related issues and an organizational chart of the SIG sustainability
. Additional
structure, refer to section “Governance“ in the “Sustainability” chapter under section ”Sustainability built in”
For more information on corporate governance-
details can also be found in our GRI Index, section “Governance”
related topics, please see our Corporate Governance Report
Strategy
Our regular assessment of potential climate-related impacts on our business and strategy helps us to
better understand how the Group may be affected by climate-related events, both in terms of risks and
opportunities. These assessments help us to ensure that we are well-positioned to navigate risks and
challenges and to explore opportunities arising due to climate change.
Our assessment update in 2023 shows that the SIG Group, overall, is well positioned for the transition
towards a more sustainable, low-carbon, circular economy. The Climate+ action area includes a
program that is designed to reduce the emissions in our operations and throughout the value chain.
Our low-carbon packaging solutions enable us to support our customers and consumers to lower
their own carbon emissions. This ability to offer low carbon alternatives to other types of packaging
is a key differentiator and value driver that not only mitigates climate-related risks but also enables
SIG to capitalize on climate-related opportunities. Our products offer a variety of features 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 transitional and physical risks shows that some issues identified
may have a potential financial impact on the Group’s business. Transitional market risks such as
changes in purchasing behavior of customers and consumers and new regulatory measures can
increase demand for products that demonstrate high climate and environmental performance. While
we are currently well placed to meet such demands and regulations, there is a risk that we in the future
would be unable to keep up with such demands and regulations or be outperformed by competitors on
these matters, which could potentially translate into a reduction of revenue. Physical risks, ie. chronic
or acute climate change impacts on forests, may result in the reduction or loss of forest resources that
may translate into disruptions in the supply of liquid packaging board, one of our main raw materials.
Such disruptions may limit our ability to supply our products to customers. Potential new and more
stringent regulatory measures to limit climate change can pose a transitional risk, as it could increase
our production costs, for example by increasing costs for raw materials with comparably high carbon
emissions or by demanding higher investments in building up for example recycling infrastructure.
For more information on our climate strategy, please see Climate+
GRI Index, section “Governance”
Our management approach is also described in our
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Risk management
The Group has implemented an annual enterprise risk management (ERM) process which involves
our regional and functional leadership teams and the GEB. The top risks and mitigation actions are
subsequently reviewed by the ARC and ultimately by the BoD. Potential transitional and physical
climate- and nature-related risks and opportunities are considered in our risk assessment. Please refer
to section ”Governance” above
.
Following the TCFD’s categorization, our assessment of climate-related risks is based on an in-depth
internal risk analysis covering regulatory, technology- and market-related transitional risks as
well as physical risks related to the acute and chronic physical impacts of a changing climate. This
in-depth internal analysis covers potential impacts occurring over a short term (1-3 years), medium
term (3–5 years) and long term (over 5 years) in line with the methodology of our ERM. In this analysis,
we consider a best-case ”Net Zero by 2050” scenario as well as a worst-case scenario based on
Representative Concentration Pathway (“RCP”) scenarios RCP1.91 and RCP8.52.
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 regulatory reactions, including increased implementation of carbon pricing mechanisms.
Related changes in cost patterns and public awareness may also directly affect consumers’ purchasing
behavior and preferences for more sustainable products, which may turn into an opportunity for our
packaging solutions that 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 likely global mean temperature
increase of around 4.8°C by 2100. This scenario considers that no specific or less stringent regulatory or
climate mitigation targets or requirements will be set, resulting in a steady rise of emissions over time at
a global scale. In comparison to the best-case scenario, social and economic costs are expected to be
higher, while physical effects of climate change are expected to be 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 the methodology of our ERM.
For more information on our ERM, see Enterprise risk management
As part of our EU Taxonomy eligibility and alignment work, we have performed a comprehensive
physical climate risk assessment for our production sites. We identified the exposure and vulnerability
of our owned and leased production sites to a wide range of climate-related chronic and acute hazards
based on the Taxonomy requirements. We will consider the outcome of this assessment as part of our
ERM in 2024 and amend adaptation solutions where appropriate alongside the risks relating to our
operations and our ability to supply. See also EU Taxonomy, sub-section “Climate change adaptation” under section
”Do no significant harm” (“DNSH”)
1 RCP1.9 refers to the Representative Concentration Pathway limiting global warming to below 1.5°C by 2100 in alignment with the
Paris Agreement.
2 RCP8.5 refers to the Representative Concentration Pathway of a no-policy high emission global warming scenario, projecting a
likely global mean temperature increase of around 4.8°C by 2100.
As part of the annual ERM process, the results of the Group’s risk assessments, including climate-
and nature-related impacts, where relevant, were reviewed by the ARC and ultimately by the BoD in
December 2023. Management is responsible for identifying and reporting risks and for implementing
and tracking mitigation measures. Each top risk, including the respective mitigation actions, 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.
Moreover, each focus area of the Group’s sustainability approach, including related commitments, is
owned by a member of the RSG, who is accountable for setting goals and delivering progress through
targeted workstreams. Leaders from relevant business functions and regions are responsible for
implementing the Group’s sustainability commitments, with support from their teams and subject
matter experts.
The Group follows a range of different measures to manage and reduce identified climate-related risks.
Examples of risk mitigating measures and actions from 2023 as reported in the Annual Report include:
• Our science-based target to achieve Net Zero greenhouse gas emissions by 2050 was approved by
the Science Based Targets initiative (SBTi) this year.
• We progressed on sourcing 100% of our electricity for production from renewable sources, and we
installed two vast new solar arrays at two sites to increase renewable capacity.
• We procured 100% of our aluminum foil for our aseptic cartons with ASI certification in 2023.
• We continued to engage with suppliers on emissions reduction plans. For example, one of our
suppliers invested in a new on-site solar installation at one of its paper mills.
• Sales of our lowest-carbon solutions for aseptic cartons, in the SIG Terra portfolio, grew by a further
12% globally.
• Our innovative SIG Terra Alu-free + Full barrier solution, which cuts the carbon footprint of our
aseptic cartons by 25% while maintaining full barrier performance, had its first commercial launches
in 2023 and was recognized for its climate potential at Packaging Europe’s Sustainability Awards.
• Our new aseptic carton plant in Querétaro (Mexico), opened this year, has achieved the Gold
sustainable building standard from LEED.
• Through our Resource+ ambitions, we advance circularity of our packaging worldwide.
For additional information on our climate-related mitigation and adaptation measures, refer to Climate+
and Responsible culture: Our supply chain
Forest+
are driving positive carbon impact beyond our value chain.
,
for details about other ways we
, Resource+
, Food+
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Metrics and targets
Our path to net zero includes reducing our direct and value chain emissions. We will also continue to
help our customers and consumers to further lower their own carbon footprint with our low-carbon
packaging solutions. We are already among the group of leading companies that have set science-based
targets approved by the SBTi in line with the latest climate science to keep global warming below 1.5°C.
In 2022, we further increased our ambition level in line with new science-based targets approved by the
SBTi in 2023, targeting Net Zero by 2050.
Our near-term commitments for 2030 include:
• 42% absolute reduction of Scope 1 and 2 greenhouse gas emissions (from 2020),
• 51.6% reduction of Scope 3 greenhouse gas emissions per liter packed (from 2020), and
• 100% renewable electricity through 2030.
Our long-term targets for 2050 include:
• 90% absolute reduction of Scope 1 and 2 greenhouse gas emissions (from 2020),
• 97% reduction of Scope 3 greenhouse gas emissions per liter packed (from 2020), and
• Net Zero value chain greenhouse gas emissions.
Next to the direct emission reduction KPI targets, we also have KPIs in other action areas that we use
to monitor our progress towards our targets.
For more information on our climate-related metrics and targets, as well as on our greenhouse gas reporting, please refer
to Climate+
, Greenhouse gas emissions basis for reporting
as well as our GRI content index
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GRI content index
GRI content index
Statement of use
GRI 1 used
Applicable GRI Sector Standard(s)
SIG Group AG has reported in accordance with the GRI Standards for the period of January 1, 2023 to December 31, 2023.
GRI 1: Foundation 2021
None
GRI Standard/
Other source
Disclosure
Information/Reference/Omission
General disclosures
The organization and its reporting practices
GRI 2:
General Disclosures
2021
2-1 Organizational details
• Legal name: SIG Group AG
• Nature of ownership/legal form: Publicly listed company limited by shares.
• Headquarters: Neuhausen am Rheinfall, Canton of Schaffhausen, Switzerland.
• Countries of operation: Please see note 27 of the consolidated financial statements.
2-2 Entities included in the organization’s
sustainability reporting
Unless otherwise stated, data covers all operations fully owned by SIG globally, except for our production plant in Baie-d’Urfé
(which closed in 2023) and our production plant in Voronezh.
2-3 Reporting period, frequency and
contact point
Since reporting year 2021, sustainability reporting is published once a year as part of SIG’s Annual Report. The reporting period is
January 1, 2023 to December 31, 2023, corresponding to the Company’s financial year.
Publication date: February 27, 2024
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
2-4 Restatements of information
The structure of our GRI reporting complies with the GRI Universal Standards 2021 and covers the GRI Topic Standards where
relevant. Due to changes within the business and two acquisitions in 2022, some of the data has been restated. Where this is the case,
it is explicitly mentioned.
2-5 External assurance
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Germany, an independent audit firm, has provided limited
assurance on the data points related to our sustainability key performance indicators (see Sustainability; Key performance indicators
See Sustainability; Independent Practitioner’s Report on a Limited Assurance Engagement on Sustainability Information
).
PricewaterhouseCoopers AG, Switzerland is the auditor of the Group’s financial statements.
SIG seeks external assurance from independent assurance providers (see above). At SIG, the assurance process for the sustainability
reporting is steered by the Group Corporate Responsibility Director, a direct report of the Chief Markets Officer (CMO). 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 sustainability reporting is approved by SIG’s Group Executive Board. Ultimately the Board of Directors’ Nomination & Governance
Committee (NGC) reviews and recommends to the Board the Group’s public reporting on ESG.
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Activities and workers
2-6 Activities, value chain and other
business relationships
Information/Reference/Omission
SIG is a provider of packaging solutions. Our primary products and services are food and beverage packaging and closures, filling
machines and other related equipment, and technical services. We combine and apply various products and services in integrated
customer solutions. See About us (Who we are; Our diversified global footprint; Our distinctive model for superior value creation)
business. Our supply chain business relationships are described in Sustainability; Responsible culture: Our supply chain
for information on our
2-7 Employees
See Sustainability; Responsible culture: Our people; Our workforce in 2023
2-8 Workers who are not employees
Omission: Information unavailable/incomplete
The data necessary to accurately report on ‘Workers who are not employees’ is not currently available. Data is maintained in various
systems at local level that do not enable aggregated global reporting. We are working on upgrading our data collection processes and
IT systems (both global and local) to collect the necessary data for accurate reporting. An integrated global human resources
application is planned to be implemented with an expected project start in 2025.
Governance
2-9 Governance structure and
composition
See Our governance; Board of Directors
4. Committees
and Corporate Governance Policy, 4.3 Board composition and selection.
, and Group Executive Board
; see Corporate Governance Report; 3. Board of Directors
; and
The Nomination and Governance Committee (NGC) defines and reviews the Group’s Governance structure and composition annually
with the Board. The NGC considers the applicable skillset and characteristics required to serve on the Board in the context of current
operations. This includes consideration such as diversity of viewpoints, background, gender, experience, independence, as well as
other factors to ensure a well-balanced Board.
2-10 Nomination and selection of the
highest governance body
See Corporate Governance Report; 3. Board of Directors ; 3.3 Election and term of office
4.Committees; 4.3 Nomination and Governance Committee
.
and
See also 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 organization.
2-12 Role of the highest governance body
in overseeing the management of impacts
See Sustainability; Sustainability introduction; Sustainability built in; Embedding sustainability
Sustainability; Sustainability introduction; Sustainability built in; Governance
and
2-13 Delegation of responsibility for
managing impacts
See Sustainability; Sustainability introduction; Sustainability built in; Governance
Corporate Governance Report; 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
and
and
2-14 Role of the highest governance body
in sustainability reporting
The Board of Directors’ Nomination and 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 Group’s business and reputation,
including climate and nature-related risks and opportunities. The Board of Directors’ Audit and Risk Committee (ARC) reviews and
discusses with management and, to the extent applicable and relevant, with the Group’s assurance providers, the Group’s corporate
sustainability reports. It makes recommendations to the Board on the Group’s public reporting on ESG matters and monitors the
Group’s performance against the Group’s corporate sustainability metrics. The Board also reviews and approves the Group’s ESG
Policies.
See Sustainability; Sustainability introduction; Sustainability built in; Governance
2-15 Conflicts of interest
See Corporate Governance Report; 8.2 Number of Permissible Activities
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2-16 Communication of critical concerns
See Corporate Governance Report; 4.2 Audit and Risk Committee
If there are critical concerns, they are communicated to the Board of Directors, the Group’s 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.
2-17 Collective knowledge of the highest
governance body
SIG’s Group Executive Board (GEB) and SIG’s Board of Directors (the “Board”) receive regular updates regarding sustainability
initiatives and their progress.
The GEB is part of SIG’s Responsibility Steering Group (RSG). Deep-dive topics discussed in RSG meeting August 2023: Activities of
the SIG Foundation (Cartons for Good, Recycle for Good); Collection and recycling – status and outlook; Forest/Biodiversity project
with WWF; ESG Disclosure requirements; Human rights due diligence roadmap.
The C-suite members of our GEB (Chief Executive Officer, Chief Financial Officer, Chief Supply Chain Officer, Chief Technology
Officer, Chief Markets Officer, Chief People & Culture Officer) also discuss sustainability topics with the Responsibility Advisory Group
(RAG). Main topics discussed: RAG meeting May/June 2023: Progress along SIG’s Net Positive approach & sustainability strategy;
Review of developments in key areas (Climate, Nature/Biodiversity, People & Communities; Systemic action and transformation).
RAG meeting December 2023: updated progress along the sustainability strategy and sustainability challenges ahead.
The Board regularly reviews with the Group Corporate Responsibility Director the ESG strategy against the backdrop of latest
developments in that field. Topics of Board Meeting September 2023: SIGs four action areas to create a net-positive future: Climate+,
Forest+, Resource+ (deep-dive), Food+ and the foundations that support the action areas (sustainable innovation and
responsible culture).
To further advance the collective knowledge of the Board, its members are encouraged to participate in voluntary tutorials regarding
sustainability matters. These tutorials take place on an annual basis. In 2023 the deep-dive topic focused on recycling and
circular economy.
See also Corporate Governance Report; 3.1 Members of the Board of Directors; Board skill matrix
2-18 Evaluation of the performance of the
highest governance body
See the Organizational Regulations published on our website: Organizational Regulations section 2.7 as well as Corporate Governance
Report; 4.3 Nomination and Governance Committee
2-19 Remuneration policies
See Compensation Report; Compensation governance
Articles of Association, 4. Compensation of the Board of Directors and the Group Executive Board
2-20 Process to determine remuneration
See Compensation; Compensation Report, esp. Figure 3: Authority table regarding compensation
Our shareholders vote on an advisory basis on our Compensation Report at our Annual General Meetings. In 2023, the Compensation
Report 2022 was approved by 79.16% of the votes. The compensation report 2023 will be approved in April 2024 at the next Annual
General Meeting.
At our 2023 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 2023 until the Annual General Meeting 2024) with 99.28% of
the votes, and remuneration of our Group Executive Board for financial year 2024 with 90.98% of the votes.
All voting results are publicly available on our website: see pages 7-10 of the Minutes of the ordinary general meeting of shareholders
2-21 Annual total compensation ratio
Omission: Information unavailable/incomplete
Data is maintained in various systems at local level that currently do not enable aggregated global reporting. We are working on
upgrading our data collection processes and IT system (global as well as local) to collect the necessary data and make it reportable.
An integrated global human resources system is planned to be implemented with an expected project start in 2025.
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Strategy, policies, and practices
2-22 Statement on sustainable
development strategy
See Chairman and CEO statement
2-23 Policy commitments
Our commitments:
• Overview of SIG’s ESG commitments
Our public policies:
• SIG Code of Conduct
• Corporate Governance Policy
• Environment, Health and Safety Policy (EHS)
• Responsible Sourcing Policy
• Human Rights, Labor 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. Please refer to our public ESG policies mentioned above for more
details.
Approval procedures are dependent on the content and scope of application. The ESG Policies and the SIG Code of Conduct
are approved by the Board of Directors.
The policies reveal the guiding principles and general commitments of SIG Group 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 AG and its subsidiaries unless otherwise indicated.
Our policies are built on the following values: leadership, accountability, quality, integrity, performance, pride, collaboration,
and feedback.
Sustainability and responsible business conduct is fundamental to our purpose and is embedded in our Corporate Compass as one of
our business priorities. Each focus area of our sustainability approach, including related commitments, is owned by a member of the
RSG. Leaders from relevant business functions and regions are responsible for implementing our sustainability commitments, with
support from their teams and subject matter experts. Furthermore, we provide employees with training on topics relevant to their role.
See Sustainability; Sustainability introduction; Sustainability built in; Embedding sustainability, Governance, Engaging our people
2-24 Embedding policy commitments
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2-25 Processes to remediate negative
impacts
2-26 Mechanisms for seeking advice and
raising concerns
Please refer to our SIG Code of Conduct; 15. Reporting Violations. 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 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 employees, shareholders and other financial market
participants, customers, international organizations, and local communities.
Issues or concerns may be reported through any available channel, including supervisors and managers, representatives of People &
Culture, Legal & Compliance, Internal Audit, or the Integrity & Compliance Hotline. The hotline allows reports to be made via a phone
number in the local language and on an anonymous basis (where permitted by local legislation), and also electronically. The hotline is
available to internal stakeholders including all SIG employees, as well as to external stakeholders such as investors, suppliers and
customers, or other business partners.
The grievance mechanism is communicated in our Code of Conduct, in trainings and advertised through posters on site, as well as on
our website.
The effectiveness of the grievance mechanism is regularly assessed, including by statistical analysis of the reports and other controls.
The organization is open to stakeholder feedback and suggestions to improve the grievance mechanism.
Negative impacts are remediated as appropriate.
Individuals have various means to seek advice and raise concerns, including in shareholder meetings, in townhalls and team meetings
or during audits on-site. Issues or concerns may be reported through any available channel, including supervisors and managers,
representatives of People & Culture, Legal & Compliance, Internal Audit, or the Integrity & Compliance Hotline. The hotline allows
reports to be made via a phone number in the local language and on an anonymous basis (where permitted by local legislation), and
also electronically. The hotline is available to internal stakeholders including all SIG employees, as well as to external stakeholders such
as investors, suppliers and customers, or other business partners.
The grievance mechanism is communicated in our Code of Conduct, in trainings and advertised through posters on site, as well as on
our website.
Training programs provide additional guidance where appropriate.
2-27 Compliance with laws and regulations 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 17 million, in line with the materiality threshold
applied in connection with our consolidated financial statements 2023.
2-28 Membership associations
SIG is a member of various industry associations, alliances, and initiatives.
Key organizations 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); Alliance to End Plastic Waste; 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); Sustainability and Health Initiative for
NetPositive Enterprise (SHINE).
In addition, SIG is a member of numerous national alliances and initiatives in our core markets. See Sustainability; Resource+; Performance
in 2023
1 Our evaluation of recyclability of cartons is based on the relevant EN643 standard and our evaluation of recycle-readiness for bag-in-box and spouted pouch is in line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers)
and Recyclass.
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Stakeholder engagement
2-29 Approach to stakeholder
engagement
See Appendix; Stakeholder engagement
2-30 Collective bargaining agreements
See Sustainability; Responsible culture: Human rights; Upholding labor rights in our operations
Material topics
GRI 3:
Material Topics 2021
3-1 Process to determine material topics
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 assessment and its results are still valid for 2023 as there were no major changes in the meantime that
would have required a complete update of the assessment.
At the beginning of the materiality assessment 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 the second step, the actual and potential impacts on the economy, environment and people, including impacts on their human
rights, were 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 prioritized accordingly. The analysis looked at the net impacts, taking into consideration the
actions SIG has 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 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 business functions.
The validation process led to slight adaptations 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 materiality assessment was reviewed and approved by SIG’s Group Executive Board. SIG’s Board of Directors also
reviewed the materiality assessment in the course of reviewing SIG’s annual reporting 2022.
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3-2 List of material topics
The following material topics were identified in the double materiality assessment in Q2 2022 and are still valid for 2023:
• Climate change
• Waste and circular economy
• Biodiversity and forest ecosystems
• Sustainable raw materials
• Water
• Health, safety and wellbeing
• 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.
Our material
topics
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
Economic
effects
Sustainable raw materials
Human rights2
Employee
satisfaction,
development,
and working
environment
Public policy
and advocacy
Diversity, equity, and inclusion
Water
Access to nutrition
and hydration1
Clean air
Anti-corruption
Community
engagement
Privacy and data security
Non-material
Material
)
s
e
i
t
i
n
u
t
r
o
p
p
o
d
n
a
s
k
s
i
r
(
t
c
a
p
m
i
d
r
a
w
n
I
Our sustainability approach is built on our material topics
Climate+
Climate change
Forest+
Sustainable innovation
Innovation in products and
services
Biodiversity and forest
ecosystems
Responsible culture
Responsible suppliers
Resource+
Waste and circular economy
Water
Food+
Product safety and integrity
Access to nutrition and
hydration1
Sustainable raw materials
Human rights2
Diversity, equity, and
inclusion
Employee satisfaction,
development, and working
environment
Health, safety, and wellbeing
Outward impact (on environment, society, and economy)
1 Additional strategic topic (not a material issue).
2
Includes freedom of association, freely chosen labor, living standards, and protection
of the child.
In line with the methodology for the materiality assessment as described in the GRI Universal Standards, the x-axis represents the
outward impact perspective and the y-axis represents the inward business risk and opportunity perspective.
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Material Topics
Disclosure
Information/Reference/Omission
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. In addition, they 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 sustainability approach
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 recurring
measures are listed. In the Sustainability chapters
the activities of 2023 are reported. Information on how the goals and targets are set and how they take the sustainability context into account is described in
the chapter Sustainability; Sustainability introduction
and in the performance sections of the Sustainability
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 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 Appendix; Stakeholder Engagement
Climate change
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• By conducting our business activity in a sustainable way, we positively contribute to UN SDGs 2, 7, 12, 13 and 17. See Appendix; Contribution
to the SDGs; Targeted support for the SDGs for further information
• SIG Group AG voluntarily reports taxonomy eligibility for the second consecutive year. For information on the SIG Group’s progress
towards Taxonomy-alignment please See EU Taxonomy; Our advancement towards Taxonomy-alignment
• Our regular assessment of potential climate-related impacts on our business and strategy helps us better understand how the SIG
Group may be affected by climate-related events, both in terms of risks and opportunities. See Task Force on Climate-related Financial
Disclosures; TCFD report
• By offering a packaging solution with the lowest carbon footprint, in comparison to available solutions in the market, we offer our
customers and consumers options to further reduce their carbon footprint and impact on climate change.
• By further innovating our packaging solutions 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.
See Sustainability; Sustainable Innovation; Our sustainable innovation journey so far
• A major positive impact on climate change can be achieved by supporting customers and consumers to make more informed
choices about the environmental performance of our solutions via transparent and comprehensive studies.
• Climate change as a result of global warming is associated with a variety of impacts on the environment and on people. These can be
acute or chronic physical impacts. This also includes impacts on people’s 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.
• A major share of our GHG emissions is generated outside our direct operational control through business partners and customers
(sourcing, production, transportation, and operation of filling machines).
• Within our value chain the purchased goods have the biggest share of GHG emissions. Thereof, most emissions come from the
production of raw materials (incl. aluminum foil, polymers and paperboard).
• Sustainable forestry: as a buyer of board made from forest-based fiber, we have influence on how wood is produced and how forests,
as important carbon stocks and sinks, are managed. See Sustainability; Forest+
• Our direct contribution to climate change primarily results from greenhouse gas (GHG) emissions, generated through production
(electricity and gas).
• For more details see Sustainability; Climate+; Reducing carbon footprint at every stage of the life-cycle
and Scope 3 emissions by category in 2023
and
Appendix; Greenhouse gas emissions basis for reporting
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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 and bag-in-box and spouted pouch collection and recycling in regions.
• Statement of intent: We aim to reduce the negative climate-related impacts of our business and maximize climate positive outcomes
by adhering to these policies and by taking the actions described below.
• We are committed to tackling climate change through both mitigation and adaptation solutions in 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 decarbonize 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. In 2023 our science-based Net Zero target was approved by the SBTi.
Actions taken to manage the topic and our impacts:
• We have various actions in place for emissions reduction, such as energy saving programs in packaging production. We purchase 100%
renewable electricity through Energy Attribute Certificates, as well as directly through on- or off-site Power Purchase Agreements.
• Refer to Sustainability; Climate+
and to the stated policies to find detailed information on actions taken to manage and minimize our
above-mentioned negative impacts on climate change and to enhance positive outcomes.
• The main projects of our climate positive program 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: Global Production & Supply Chain, supported by Global Environmental, 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 organized in the above-mentioned departments.
The level of responsibility in the functional areas varies, but the global department heads have oversight.
• In our strategic and financial decision-making, including decisions as to which actions to take, we inherently consider climate-related
aspects and the potential costs of carbon emissions and corresponding regulations, even though SIG Group is currently not regulated
by a carbon pricing system.
• Our journey to decarbonizing our own operations, and ensuring the effectiveness of our actions, is informed by a carbon price in the
form of carbon offset pricing. We purchase Gold Standard CO2 offsets for all direct GHG emissions mainly from fossil energy carriers.
The total costs for the certificates divided by the offset emissions reflect our internal carbon price.
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Tracking the effectiveness of our actions:
• We have assessed the resilience of our business strategy in the light of climate-related risks, as recommended by the TCFD. We are
refining our process to include more specifically future changes in view of costs of carbon eg. in regulation and taxations (such as the
Carbon Border Adjustment Mechanism (CBAM)).
• Growth in low carbon solutions is a central KPI for our sales and markets teams.
• To assess the effectiveness of our actions, our operations report plant specific data, energy usage and emissions. The results are
reported on a monthly basis in our EHS dashboard.
• A quarterly review of raw materials and energy sourcing is conducted by the VP of Global Sourcing and Procurement, who reports to
the CSO. A monthly review of production metrics is conducted by the Group Executive Board.
• Internal audits and regular review of performance against the sustainability targets by the Group Executive Board.
• A quarterly review of Climate+ projects is conducted with the Chief Technology Officer.
• We track and evaluate our performance through external sustainability assessments, such as:
• Annual EcoVadis assessments (including actions and results alongside our climate strategy.
• Regular ASI Performance Standard audits (including robustness of our product carbon footprint data management).
• Life-cycle assessments and carbon footprint calculations for our products based on ISO 14040. We compare eco-innovations and
average products with competing substrates. See Sustainability; Sustainable innovation; Taking a life-cycle approach
• See Progress towards 2025+ targets; Climate+
and also see Sustainability; Climate+; Our targets
and the subsequent paragraphs on targets and
evaluation of progress.
• We currently assess where a defined internal carbon price could add further value to our current management approach.
Engagement with our stakeholders:
• Based on feedback from inside and outside the organization from customers, suppliers, employees, investors and other stakeholders
we continually review and update the policies and standards. See Appendix; Stakeholder engagement for further information
GRI 305:
Emissions 2016
305-1 Direct (Scope 1) GHG Emissions
See Sustainability; Climate+; SIG Group carbon footprint (thousand metric tons of CO2 equivalent)
305-2 Energy indirect (Scope 2) GHG
emissions
305-3 Other indirect emissions (Scope 3)
emissions
See Sustainability; Climate+; SIG Group carbon footprint (thousand metric tons of CO2 equivalent)
See Sustainability; Climate+; SIG Group carbon footprint (thousand metric tons of CO2 equivalent)
305-4 GHG emissions intensity
See Sustainability; Climate+; Value chain emissions rate (grams CO2 equivalent/liter of food packed)
305-5 Reduction of GHG emissions
SIG reports its reductions in GHG emissions, including emission reductions relating to specific initiatives.
See Appendix; Greenhouse gas emissions basis for reporting
footprint at every stage of the life-cycle
targets and the subsequent paragraphs
See Sustainability; Climate+; Improving energy efficiency in our operations
See Sustainability; Climate+; Performance in 2023; Towards Net Zero, Reducing the carbon
See Sustainability; Climate+; Our
Reductions in all scopes can be ascribed to reduction initiatives, such as any reductions relating to energy efficiency measures (Scope 1),
reductions relating to purchased electricity (Scope 2), or reductions relating to sourcing of raw materials (Scope 3).
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GRI 302:
Energy 2016
Disclosure
Information/Reference/Omission
302-1 Energy consumption within the
organization
302-2 Energy consumption outside of the
organization
See Sustainability; Climate+; Energy use for production (GWh, by type)
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 recognized 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 decarbonize in line with our path to net zero – which typically includes
the reduction of energy demand and a 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 Appendix; Greenhouse
). Energy consumption and energy carriers used are also typically confidential data points in the supply
gas emissions basis for reporting
chain and we do not therefore have access to this type of information. The second largest energy consumption in our value chain
occurs during the operation of the filling machines and the equipment we manufacture. We work towards the reduction of energy
consumption for installed machines and for each new generation of machine. As for our supply chain we use a climate footprint
metric to address this; thus, we consider energy use of our filling machines and equipment as both not applicable and confidential.
302-3 Energy intensity
See Sustainability; Climate+; Value chain emissions rate (grams CO2 equivalent/liter of food packed)
302-4 Reduction of energy consumption
See Sustainability; Climate+; Improving energy efficiency in our operations
Sustainability; Climate+; Energy use for production (GWh, by type)
and
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
Omission: Information unavailable/incomplete
For our packaging material products this disclosure is not applicable as the packaging does not require energy during its use phase.
For our filling machines and other related equipment this disclosure is applicable. Through continuous improvements, the energy
requirements of our filling machines in the aseptic carton business that were sold in 2023 were reduced by 1% vs the base year 2020.
For our newly acquired bag-in-box, spouted pouch, and carton businesses, we are defining energy reduction targets and plan to
report them from 2025. See Sustainability; Sustainable innovation; Our targets
Transition and physical risks are assessed within our corporate risk assessment. This also allows us to contextualize the financial
implications to manage and mitigate identified risks occurring outside our organization. Risks relating to our operations are integrated
into CAPEX planning.
See Our company; Enterprise risk management on material financial risks in relation to climate change
See Task Force on Climate-related Financial Disclosures; TCFD report 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
Our assessment of climate-related opportunities is based on the assessment of revenue implications of increased market shares of
our eco-innovations within our low carbon packaging portfolio during 2021.
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Information/Reference/Omission
Waste and circular economy
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDGs 2, 7, 12, 14 and 17. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted
support for the SDGs for further information on our contribution to the SDGs
• Packaging prevents the occurrence of food loss and waste during filling, distribution, storage, and consumption.
• Positive impact through recycling in the supply chain, production and after product use, as less waste occurs.
• 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.
• Negative impacts arise along our value chain due to the waste generated. During the production of our products byproducts which
are considered as waste occur. This also applies to the activities of our business partners.
• 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.
Key policies and commitments:
• Overview of SIG’s ESG commitments.
• Environment, Health and Safety Policy (EHS).
• Product Stewardship Policy.
• Sustainable Packaging Guidelines for beverage cartons.
• Sustainable Packaging Guidelines for bag-in-box and spouted pouches.
• Global R&D Process Handbook.
• Standard Operating Procedure to improve used beverage carton and bag-in-box and spouted pouch 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 maximize resource positive outcomes. Thereby, we strive to lead the
way towards a fully circular packaging system.
• We are committed to reducing materials waste, including from electronics.
• To tackle environmental pollution, we minimize 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.
• For more information, refer to Sustainability; Resource+; Our commitment
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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 organized 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. See Appendix; GRI-Index; Sustainable raw materials
• 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.
• See Sustainability; Resource+
and the stated policies to find detailed information about the actions described 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.
• See Appendix; Progress towards our 2025+ Targets; Resource+
Also refer to Sustainability; Resource+; Our targets and the subsequent paragraphs 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 Alliance to End
Plastic Waste, the Consumer Goods Forum’s Coalition of Action on Plastic Waste, and the Circular Economy for Flexible Packaging
(CEFLEX) initiative and our platform EXTR:ACT (both in the EU).
• Customers can raise questions or concerns about waste and recycling via our sales team.
• Exchange with customer and suppliers on the AIM-PROGRESS platform.
• Information on end-consumer behavior and local recycling and consumption habits from NGOs and local business partners
• See Appendix; Stakeholder engagement for further information on stakeholder engagement
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GRI 306:
Waste 2020
Disclosure
Information/Reference/Omission
306-1 Waste generation and 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.
306-2 Management of significant
waste-related impacts
Supplier waste:
• Our ASI Certification supports the management of impacts of aluminium foil production waste.
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 program. See Appendix; GRI-Index; Climate change
• cyclos-HTP recyclability certificates for our products.
306-3 Waste generated
• See Sustainability; Resource+; Production waste by type (thousand metric tons)
306-4 Waste diverted from disposal
• See Sustainability; Resource+; Production waste by disposal method (metric tons) in 2023
306-5 Waste directed to disposal
• See Sustainability; Resource+; Production waste by disposal method (metric tons) in 2023
Own Disclosure
Waste rate for production (aseptic carton
sleeves only) (grams of waste per m2 of
packaging material)
• See Sustainability; Key performance indicators; Resource+
and
Sustainability; Resource+; Production waste rate for aseptic carton packs (grams of waste per m2 of sleeves produced)
SIG packaging portfolio that is
recycle-ready1 (%)
• See Sustainability; Key performance indicators; Resource+
and
Sustainability; Resource+; Designing for recycling
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Biodiversity and forest ecosystems
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDGs 2, 12, 13, 15, 17. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support
for the SDGs 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.
• Another major opportunity is to reduce food loss and waste via the advantages of a highly efficient shelf stable packaging system.
This supports the efficiency in the food produce industry and thereby can contribute to lower the pressure to further intensify
agriculture.
• 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. Paper-based liquid packaging board makes up around 70-80%
of each SIG carton 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 cultivated 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 ore 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.
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 and responsible management practices exist
across our value chain.
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Responsibility to manage the material topic:
• The VP of Global Sourcing and Procurement and Group Corporate Responsibility is responsible for supply chain-related impacts.
• 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 landscape projects is further developed in a cooperation with WWF
Switzerland involving SIG’s Group Executive Board/C-Suite. See Sustainability; Forest+; Performance in 2023
this partnership.
for further information about
• The internal decision-making, budget allocation and oversight processes are organized 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).
• We are working on a detailed analysis to identify nature-related dependencies, impacts, risks and opportunities following the
recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).
• We consider potential biodiversity-related risks within our enterprise risk management and have started to assess our exposure to
sensitive biodiversity areas. Our exposure assessment follows a location-specific approach, using insights from self-assessments
with the WWF risk filters as well as ISO 14001 and SMETA audits, 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 program, and we focus on
restoring, protecting or improving management of forests through partnerships.
• We manage our impact on biodiversity in our supply chain, eg. 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, thus lowering the
impacts on biodiversity and forest ecosystems. See Sustainability; Resource+; Our targets
and the subsequent paragraphs.
• In context of our WWF partnership and the Forests Forward membership we are working on agreed targets to improve biodiversity
further beyond our direct value chain.
• See Sustainability; Forest+
and the stated policies to find detailed information about the actions described 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.
• See Appendix; Progress towards our 2025+ targets
; and Sustainability; Forest+; Our targets and the subsequent paragraphs on targets and evaluation of
progress
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GRI 304:
Biodiversity 2016
304-1 Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity value
outside protected areas
304-2 Significant impacts of activities,
products, and services on biodiversity
Engagement with our stakeholders:
• Partnerships with industry peers to develop recommendations on how life-cycle assessments can be used to better address land use
impacts on biodiversity and biodiversity footprints of product systems including all relevant impact drivers such as climate change
and pollution.
• Based on feedback from inside and outside the organization, including from customers, suppliers, employees, investors and other
stakeholders, we continually review and update the policies and related standards.
• See Appendix; Stakeholder Engagement
for information on stakeholder engagement.
Omission: Information incomplete
Potential biodiversity-related risks concerning our operations are identified through our enterprise risk management framework. We
have initiated identification of biodiversity risks related to our exposure to sensitive areas. Our exposure assessment follows a
location-specific approach, using insights from self-assessments with the WWF risk filter and the latest guidance from the Science
Based Targets Network (SBTN). We are working to implement the outcomes of the assessments and establish a robust reporting in
line with the recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD) in 2024.
Omission: Information incomplete
Potential biodiversity-related risks concerning impacts along our value chain and operations are identified through our enterprise risk
management framework. We have initiated identification of our exposure to sensitive biodiversity areas within our operations. Our
exposure assessment follows a location-specific approach, using insights from the self-assessment with the WWF risk filter and the
latest guidance from the Science Based Targets Network (SBTN). We are working to implement the outcomes of the assessments
and establish a robust reporting in line with the recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD)
in 2024.
304-3 Habitats protected or restored
Third-party partnerships are agreed on. Regarding the partnership with WWF Switzerland See Sustainability; Forest+; Partnering to expand our
positive impact
The findings will inform a roadmap for reforestation and restoration that will begin in 2024.
304-4 IUCN Red List species and national
conservation list species with habitats in
areas affected by operations
Omission: Information incomplete
IUCN Red List species and national conservation list species with habitats in areas affected by operations are included as part of our
broader assessment of potential adverse impacts on biodiversity at the locations where we operate and will (in case) be disclosed in
2024.
Own Disclosure
% packs sold labelled with FSC™ logo
See Sustainability; Key performance indicators; Forest+
% FSC™-certified liquid packaging board
See Forest+; Sourcing from sustainably managed forests
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Sustainable raw materials
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDGs 2, 7, 12, 14 and 17. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted
support for the SDGs
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 have
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 packaging board sourcing might be linked to deforestation and potentially soil
degradation.
• The polymers we use depend to a large extent on fossil resources, which carries the potential risk of land and water pollution.
• Sourcing of metals is energy-intensive and can impact the local environment.
• If natural resources are over-exploited, 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 and bag-in-box and spouted pouch collection and recycling in
regions.
• Statement of intent: We aim to reduce the negative impacts of our business regarding raw material sourcing by respecting these
policies and taking the actions described below.
• Our ambition is to make all our packs with exclusively renewable or recycled materials, using only renewable energy.
• 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, which encourages companies to pledge support for the United Nations Sustainable
Development Goals through FSC™ certification.
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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 organized 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 on people and their human
rights.
• The use of by-products from other industries (eg. woodchips or tall oil) in our production process.
• Certification standards: Forest Stewardship Council™ (FSC™) for liquid packaging board, Aluminium Stewardship Initiative (ASI) for
aluminum and International Sustainability & Carbon Certification (ISCC) PLUS for plant-based polymers.
• We are increasing transparency in the supply chains.
• Significant suppliers have to sign the SIG Supplier Code of Conduct or an equivalent code.
• See Sustainability; Resource+
and Sustainability; Responsible culture: Our supply chain
about the described actions taken as well as more actions to manage the above-mentioned impacts.
and the stated policies to find detailed information
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.
• See Appendix; Progress towards our 2025+ targets; Forest+
, Resource+
Forest+; Performance in 2023, Our targets and the subsequent paragraphs
subsequent paragraphs
on targets and evaluation of progress
and Sustainability; Responsible culture: Our supply chain; Performance in 2023, Our targets and the subsequent paragraphs
, Responsible culture: Our supply chain
Sustainability; Resource+; Performance in 2023, Our targets and the
also refer to Sustainability;
Engagement with our stakeholders:
• Based on feedback from inside and outside the organization from customers, suppliers, employees, investors, and other stakeholders
we continually review and update the policies and standards.
• By requiring raw material certification standards (FSC™, ASI etc.) we take into account a key perspective of NGOs.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
GRI 301:
Materials 2016
301-1 Materials used by weight or volume
See Sustainability; Responsible culture: Our supply chain; Sourcing sustainable raw materials; Sourcing A-materials for our packs
Own Disclosure
% A-materials from certified sources
See (also for a definition of A-materials) Responsible culture: Our supply chain; Sourcing sustainable raw materials; Sourcing A-materials for our packs
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Water
GRI 3:
Material Topics 2021
Disclosure
Information/Reference/Omission
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDGs 6 and 14. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support for the
SDGs
for further information on our contribution to the SDGs.
• In our own operations, we use process water in closed water circuits to cool machines, primarily in extrusion lines. 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 aseptic carton 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
(eg. hydrogen peroxide) are used in the cleaning process. However, process wastewater is typically directed to a municipal water
treatment plant.
• Lack of wastewater treatment can cause water pollution and negatively affect the people living in the area (eg. 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).
• Product Stewardship Policy.
• Aluminum Purchasing Policy.
• Statement of intent: We aim to reduce the negative impacts of our business with regard to water by respecting the above policies and
taking the actions described below.
• We are committed to conservative water use throughout the product supply chain and business operations and strive to responsibly
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 in our operations.
• The internal decision-making, budget allocation and oversight processes are organized by local plant management.
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Actions taken to manage the topic and our impacts:
• For our aseptic carton filling machines:
• we provide user guidance on target water use to ensure efficient operation at the customer stage; and
• offer water reduction kits and continuously work on product development to lower resource use.
• 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.
• By applying the WWF Risk Filter, we have begun to evaluate the nature and conditions of the basins in which we operate, to better
understand potential impacts on water security.
• As water stewardship is included in the Forest Stewardship™ (FSC™) principles and in the Aluminium Stewardship Initiative (ASI)
Performance Standard Certification, water impacts are addressed for both raw materials.
• Refer to Sustainability; Resource+ and to the stated policies
to find detailed information about the actions described as well as more actions
to manage the above-mentioned impacts.
Tracking the effectiveness of our actions:
• Monthly review of the global performance with the EHS dashboard (water-related KPIs).
• Water risks are assessed regularly for the next one to three years in an environmental risk assessment.
• 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.
• See Sustainability; Resource+; Our targets
also refer to Performance in 2023
production
and Sustainability; Sustainable innovation; Reducing resource use in filling
and Sustainability; Resource+; Minimizing waste and water use in
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 teams in R&D and filling machine assembly.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
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GRI 303:
Water and Effluents
2018
Disclosure
Information/Reference/Omission
303-1 Interactions with water as a shared
resource
• Monthly performance review with the EHS dashboard by the Global EHS manager.
• Changes to the previous month are analyzed and reported to the Group Executive Board.
• The plant specific water use (in cubic meters) is measured from our operations. The results are reported on a monthly basis in our EHS
dashboard, which serves the plausibility checking (cloud-based database, Power apps).
• Environmental manual for each of our locations. Raw data is delivered by locations for Global EHS dashboard.
• Regarding the exchange with local parties on water as a shared resource see Appendix; GRI-Index; Water; 3-3 Engagement with our
stakeholders
We consider water in our internal risk analysis, which we use as input for the SIG 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.
• Bases for water thresholds are regulated in the local applicable laws and regulations, which are regularly reviewed.
• 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).
• Assessing and managing our water-related risk.
• Reducing water consumption.
• Developing partnerships with communities.
303-2 Management of water discharge-
related impacts
303-5 Water consumption
See Sustainability; Resource+; Minimizing waste and water use in production
Health, safety, and wellbeing
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDG 8. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support for the SDGs
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 9,000+ 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 behavior in their private lives, which has a positive impact on
their families and on the community.
• Negative impact on health & safety can occur through high heat at production sites.
• At-risk behavior in the workplace can lead to injuries and lost-time cases.
• 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 can potentially have a direct impact on the human right to live.
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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
the above 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 sits with Global EHS, which reviews performance with the local management and local
EHS leads, monitors and manages the sustainable implementation of safety projects and EHS alerts, and provides regular reports to
the Global Executive Board.
• Head of operations is responsible at operational level.
• Group Human Resources is responsible for employee wellbeing.
• The internal decision-making, budget allocation and oversight processes are organized in the above-mentioned functions. The level
of responsibility in the functional areas varies, but the global heads have oversight.
• To support progress a regional governance structure for EHS in our operations has been created. Regional leaders are responsible for
EHS across our businesses in each region and are part of a broader network to learn from each other.
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.
• Two-yearly SEDEX SMETA audits, which include health and safety as one of the pillars.
• By focusing on human behavior and adopting a ”Take Care“ culture, we will reduce occupational incidents and additionally achieve
positive spill-over effects in other areas (eg. 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 programs to promote work–life balance, healthy lifestyles, mindfulness and smart time management to support
employee wellbeing.
• We have implemented a bi-weekly newsletter on the topic of safety (Safety Flash) to keep this topic top of mind for our employees.
• Refer to Sustainability; Responsible culture: Health, safety and wellbeing
and to the stated policies to find detailed information about the
actions described as well as more actions to manage the above-mentioned impacts.
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Tracking the effectiveness of our actions:
• EHS dashboard contains health and safety KPIs and is reviewed by the Group Executive Board each month.
• Quarterly reports to the Group Executive Board.
• Annual site self-assessments (based on ISO 45001) and internal audits/assessments.
• 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 behavior-based
safety process.
• See Appendix; Progress towards our 2025+ targets; Responsible culture: Our people
and
Sustainability; Responsible culture: Health, safety, and wellbeing; Our targets and Performance in 2023 on targets and evaluation of progress
• We monitor incidents and near misses.
• Lessons learned: preliminary incident reporting, analysis of the incidents, 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.
• Board of Directors is regularly updated.
• See Appendix; Stakeholder engagement
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 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 are also considered as part of our “Take Care” culture. They are instructed on health and safety
protocols before they visit the production site.
See Sustainability; Resource+; Minimizing waste and water use in production
GRI 403:
Occupational Health
and Safety 2018
403-1 Occupational health and safety
management system
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403-2 Hazard identification, risk
assessment, and incident investigation
• Our health and safety management systems help us to 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, refer to our Environment, Health and Safety Policy (EHS) and
Sustainability; Responsible culture: Health, safety and wellbeing
403-3 Occupational health services
• Local EHS department is responsible for the management of these issues.
• For further information, refer to our Environment, Health and Safety Policy (EHS) and
Sustainability; Responsible culture: Health, safety and wellbeing
403-4 Worker participation, consultation,
and communication on occupational
health and safety
• Programs 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
403-5 Worker training on occupational
health and safety
improvements.
• Workers are involved in the Risk-Assessment creation and reviews.
• Extension of the behavior-based model is used for 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, refer to our Environment, Health and Safety Policy (EHS) and
Sustainability; Responsible culture: Health, safety and wellbeing
• All new employees are trained on health and safety as part of their induction.
• Training programs are conducted to ensure our people understand how to manage risks 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, refer to our Environment, Health and Safety Policy (EHS) and
Sustainability; Responsible culture: Health, safety and wellbeing
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403-6 Promotion of worker health
• Support and benefits vary locally depending on the regional, legal and cultural context.
• Workers’ access to non-occupational medical and healthcare services are facilitated, eg. through company clinics or disease
treatment programs, referral systems, or health insurance or financial contributions.
• Rescue chain is trained, documented, and audited.
• Examples include health insurance, health check-ups, fitness programs, flexible working arrangements, parental benefits and leave,
and access to counselling services to address problems at work or at home through employee assistance programs.
• For further information, refer to our Environment, Health and Safety Policy (EHS) and
Sustainability; Responsible culture: Health, safety and wellbeing
• Investment in business-wide improvements, eg. 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 centers.
• See Sustainability; Responsible culture: Health, safety and wellbeing; Performance in 2023
100% coverage at production sites as well as our Global Assembly, Global Technology and Technical Service functions.
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
403-8 Workers covered by an
occupational health and safety
management system
403-9 Work-related injuries
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.
See Sustainability; Responsible culture: Health, safety and wellbeing; Performance in 2023
403-10 Work-related ill health
Omission: information unavailable.
The data necessary to report on ‘Work-related ill health’ is not maintained in a global system. We are working on enabling our system
landscape (global as well as local) to collect the necessary data and make it reportable. In a next step we will determine whether the
data will be maintained globally in a HR system or an EHS system. Depending on the option, implementation of the project is expected
to start in 2024 or 2025.
Diversity, equity and inclusion
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDGs 5 and 10. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support for the
SDGs
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.
• Promoting diversity, equity, and inclusion decreases the likelihood of discrimination and violation of human rights.
• Depending on the producing country, there might be a high risk of inequality and discrimination based on gender, race, religion,
political affiliation, and sexual orientation in our supply chain.
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Key policies and commitments:
• SIG Code of Conduct.
• Human Rights, Labor 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 against 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 Alliance Group.
• We have a single point of contact in every region.
• The internal decision-making, budget allocation and oversight processes are organized in the above-mentioned functions. The level
of responsibility varies, but the Chief People & Culture 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 behavior 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. Thereby,
we apply recruitment practices that help us to attract diverse talent.
• Refer to Sustainability; Responsible culture: Our people
and to the stated policies to find detailed information about the actions described
as well as more actions to manage the above-mentioned impacts.
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Tracking the effectiveness of our actions:
• Regular dialogue with employees.
• SEDEX SMETA site audits, EcoVadis assessments.
• Diversity and inclusion dashboard.
• Issues or concerns may be reported through any available channel, including supervisors and managers, representatives of People &
Culture, Legal & Compliance, Internal Audit, or the Integrity & Compliance Hotline.
• We analyze 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.
• See Appendix; Progress towards our 2025+ targets; Responsible culture: Our people
and
Sustainability; Responsible culture: Our people; Performance in 2023 and Our progress and the subsequent paragraphs on targets and evaluation
of progress
Engagement with our stakeholders:
• SIG cooperates with universities and other organizations via websites, campaigns or through networks and communities, to attract
female engineers and better engage with women to understand what matters most to them.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
See Sustainability; Responsible culture: Our people; Our workforce in 2023, Governance bodies by age group in 2023 and Women in management (%)
Omission: Information unavailable/incomplete
The data necessary to accurately report on ‘Ratio of basic salary and remuneration of women to men’, maintained in the global human
resource application, is incomplete. The data currently maintained at global level insufficient for accurate calculation of remuneration
ratios. Data is maintained in various systems at local level that do not enable aggregated global reporting. We are working on enabling
our system landscape (global as well as local) to collect the necessary data and make it reportable. An integrated global human
resources application is planned with an expected project start in 2025.
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. The analysis confirmed that SIG is compliant with the requirements
of Swiss law. In 2023 we assessed pay for employees in two countries (Austria and Romania) with an independent third-party provider
to support fair and equitable pay levels – including between genders – and living wage rates. For both countries we achieved a result
within our internal guidance for gender pay gap.
See Sustainability; Responsible culture: Human rights; Raising awareness and acting concerns
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
GRI 406:
Non-discrimination
2016
406-1 Incidents of discrimination and
corrective actions taken
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Employee satisfaction, development and working environment
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDG 8. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support for the SDGs
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 programs, 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 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.
• We provide opportunities for continuous learning and development.
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 organized in the above-mentioned functions. The level
of responsibility varies, but the Chief People & Culture 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 labor practices or other breaches of the Code of Conduct.
• We offer development opportunities, including through mentoring and digital learning, as well as further training opportunities.
• 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.
• Refer to Sustainability; Responsible culture: Our people
and to the stated policies to find detailed information about the actions described
as well as more actions to manage the above-mentioned impacts.
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Tracking the effectiveness of our actions:
• Regular internal or third-party assessments of our operations.
• SEDEX SMETA site audits.
• Quarterly meeting with Group Executive Board and employees.
• Regular dialogue with employees.
• Issues or concerns may be reported through any available channel, including supervisors and managers, representatives of People &
Culture, Legal & Compliance, Internal Audit, or the Integrity & Compliance Hotline.
• Surveys and comparison with other companies.
• See Appendix; Progress towards our 2025+ targets; Responsible culture: Our people
and
Sustainability; Responsible culture: Our people; Progress in 2023, Our Targets, Performance in 2023 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.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
See Sustainability; Responsible culture: Our people; Employee turnover and New hires in 2023
Omission: Information unavailable/incomplete
The data necessary to accurately report on ‘Benefits provided to full-time employees that are not provided to temporary or part-time
employees’ is not maintained in a global human resource application. Data is maintained in various systems at local level that do not
enable aggregated global reporting. We are working on enabling our system landscape (global as well as local) to collect the
necessary data and make it reportable. An integrated global human resources application is planned with an expected project start
in 2025.
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
401-3 Parental leave
Omission: Information unavailable/incomplete
GRI 404:
Training and
Education 2016
404-1 Average hours of training per
year per employee
The data necessary to accurately report on ‘Parental leave’ is not maintained in a global human resource application. Data is
maintained in various systems at local level that do not enable aggregated global reporting. We are working on enabling our system
landscape (global as well as local) to collect the necessary data and make it reportable. An integrated global human resources
application is planned to be implemented with an expected project start in 2025.
See Sustainability; Responsible culture: Our people; Average hours of training
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404-2 Programs for upgrading employee
skills and transition assistance programs
404-3 Percentage of employees receiving
regular performance and career
development reviews
Omission: Information unavailable/incomplete
We maintain all the SIG-related training/programs 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, as the data
necessary to accurately report on ‘Programs for upgrading employee skills and transition assistance programs’ is not maintained in a
global human resource application. While all trainings & programs are recorded in our global Learning Management System, other
related initiatives and data are maintained in various systems at local level that do not enable aggregated global reporting. We are
working on enabling our system landscape (global as well as local) to collect the necessary data and make it reportable. An integrated
global human resources application is planned to be implemented with an expected project start in 2025.
See Sustainability; Responsible culture: Our people; Developing talent
Omission: Information unavailable/incomplete
The data necessary to accurately report the breakdown by gender and employee category on ‘Percentage of employees receiving
regular performance and career development reviews’, maintained in the global human resource application, is incomplete. We are
working on enabling our system landscape (global as well as local) to collect the necessary data and make it reportable. An integrated
global human resources application is planned to be implemented with an expected project start in 2025.
For percentages of all employees receiving regular performance and career development reviews please see Sustainability; Responsible
culture: Our people; Developing talent
Own Disclosures
Sustainable engagement score
See Responsible culture: Our people; Employee survey results related to our people commitment
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Responsible Suppliers
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Through our supplier engagement, we contribute to UN SDGs 8, 12, 13, 15 and 17. See Appendix; Contribution to the United Nations Sustainable
Development Goals; Targeted support for the SDGs
for further information on our contribution to the SDGs.
• Through supplier engagement, we can provide transparency around 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.
• In the event of non-compliance by a supplier with our requirements, our process of supplier development will be initiated, which may
result in potential termination of business relationships.
• Negative impacts in the supply chain can potentially arise due to a violation of human rights, such as those relating to child labor or
forced labor, in the upstream business relationships.
• For more information, see Sustainability; Responsible culture: Human Rights
and Appendix; GRI-Index; Biodiversity and forest ecosystems
Key policies and commitments:
• Overview of SIG’s ESG commitments.
• SIG Supplier Code of Conduct.
• Liquid Packaging Board Purchasing Policy.
• Polymer and Aluminum Purchasing Policies.
• Statement of intent: We aim to reduce the negative impacts of our business regarding responsible suppliers by respecting these
policies and taking the actions described below:
• 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.
• We are committed to screening significant new suppliers for our carton business. This year we also identified direct significant
suppliers for our newly acquired bag-in-box and spouted pouch businesses.
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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 organized 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, labor practices and human rights. This includes the formal acceptance of our Supplier Code of Conduct.
• Equipment suppliers providing parts for our filling machines are required to complete an additional questionnaire related to conflict
minerals and/or provide a CMRT document.
• 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 two 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.
• Refer to Sustainability; Responsible culture: Our supply chain
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.
• See Appendix; Progress towards our 2025+ targets; Responsible culture: Our supply chain
and
Sustainability; Responsible culture: Our supply chain; Our targets and the subsequent paragraphs 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 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.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
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GRI 308:
Supplier
Environmental
Assessment 2016
Disclosure
Information/Reference/Omission
308-1 New suppliers that were screened
using environmental criteria
See Sustainability; Responsible culture: Our supply chain; Screening and assessing suppliers
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
414-2 Negative social impacts in the
supply chain and actions taken
Omission: Information unavailable/incomplete
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.
Refer to Sustainability; Responsible culture: Our supply chain; Performance in 2023
See Sustainability; Responsible culture: Our supply chain; Screening and assessing suppliers
Omission: Information unavailable/incomplete
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.
Refer to Sustainability; Responsible culture: Our supply chain; Performance in 2023
Human Rights
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• 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.
Refer to Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support for the SDGs 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 organization and in
business relationships, and in a broader sense to the community.
• Possible negative impacts on people and their human rights arising from both our direct operations and the broader supply chain are
primarily associated with our initiatives in the areas of health, safety and wellbeing, modern slavery, discrimination and harassment,
children’s rights, minorities, liberty and security of the person, fair labor 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 2023 within our
own operations include issues related to working hours and overtime. We are further investigating these impacts at the plants
concerned and are analyzing the root causes at the plant level. We have devised specific action plans, tailored to the circumstances,
to address the issue and the impacts at each plant concerned. Additionally, we will establish mechanisms to prevent similar issues
recurring in the future.
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GRI Standard/
Other source
Disclosure
Information/Reference/Omission
Key policies and commitments:
• Human Rights, Labour and Community Engagement Policy.
• SIG Code of Conduct.
• SIG Supplier Code of Conduct.
• 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, ie. 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, labor, 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 organized 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
labor, freedom of association, health and safety, child labor, wages and benefits, working hours and discrimination, no harsh and
inhumane treatment. All our production sites undergo SMETA audits to assess compliance with fair labor 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 labor practices to safeguard our employees‘ rights in all aspects. See also
Sustainability; Responsible culture: Human Rights
and managers, representatives of People & Culture, Legal & Compliance, Internal Audit, 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.
Issues or concerns may be reported through any available channel, including supervisors
• Positive impacts on people and their human rights or success stories can be shared via our Best Practices app.
• Refer to Sustainability; Responsible culture: Human rights
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.
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Disclosure
Information/Reference/Omission
Tracking the effectiveness of our actions:
• In 2023, we strengthened our human rights due diligence, including reviewing and updating our policy, conducting further risk
assessments and analyses to inform identification of salient human rights issues, and explicitly extending our grievance mechanism
to suppliers and other third parties.
• For tracking the effectiveness of measures taken with regard to human rights violations in the supply chain, see Sustainability; Responsible
culture: Our supply chain
• See Appendix; Progress towards our 2025+ targets; Human rights
and
Sustainability; Responsible culture: Human rights; Our targets and the subsequent paragraphs on targets and evaluation of progress
Engagement with our stakeholders:
• Employees, suppliers and any third parties can report issues or concerns related to human rights via our Integrity & Compliance
Hotline, Human Resources teams or 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.
• See Appendix; Stakeholder engagement
SEDEX audits are a suitable indicator to address the cumulative topic of human rights issues. See Sustainability; Responsible culture:
Human rights; Upholding labor rights in our operations
and Sustainability; Key performance indicators; Human rights
Own Disclosure
Plants completed SEDEX
Members Ethical Trade Audit
(of total number of plants)
Product safety and integrity
GRI 3:
Material Topics 2021
3-3 Management of material topics
Our direct impacts:
• Positive contribution to UN SDGs 2 and 12. See Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted support for the
SDGs
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 (eg. taste, smell).
• Our commitment to product stewardship includes our commitments to safeguard the environment including, but not limited to,
impacts related to climate change and biodiversity.
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Information/Reference/Omission
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.
• R&D and filling machine assembly teams for developing and implementing solutions.
• The internal decision-making, budget allocation and oversight processes are organized 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 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 recognized methods such as HACCP (hazard analysis and critical
control points) and the use of risk analysis tools, eg. FMEA (Failure Mode & Effects Analysis) or simplified risk analysis.
• 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 the raw materials used.
• Our production plants are certified according to a GFSI recognized Scheme standard/ISO 22000 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 standardized 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.
• Refer to Sustainability; Food+
and to the stated policies to find detailed information about the actions described as well as more actions
to manage the above-mentioned impacts.
• For our actions on supplier monitoring and auditing, please see Sustainability; Responsible culture: Our supply chain
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Information/Reference/Omission
Tracking the effectiveness of our actions:
• The traceability system and processes are subject to 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, eg. our product withdrawal
procedure is validated 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. 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. We also standardized the customer complaint management
process.
• See Appendix; Progress towards 2025+ targets; Food+
and
Sustainability; Food+; Our targets and the subsequent paragraphs on targets and evaluation of progress
Engagement with our stakeholders:
• We have a customer feedback program (NPS = Net Promoter Score) which measures customer satisfaction, including in terms of
quality and safety.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
See Sustainability; Food+; Maintaining food quality and safety
and Sustainability; Key performance indicators; Food+
See Sustainability; Food+; Maintaining food quality and safety
and Sustainability; Key performance indicators; Food+
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:
• Positive contribution to UN SDGs 12, 13 and 17. Please see Appendix; Contribution to the United Nations Sustainable Development Goals; Targeted
support for the SDGs
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 quantity 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 towards less resource-intensive products we mitigate/reduce
negative impacts on the environment and on society and avoid potential human rights violations.
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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 organized 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.
• Refer to Sustainability; Sustainable innovation
and to the stated policies to find detailed information about the actions described 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.
• Issues or concerns can be reported via the Integrity & Compliance Hotline.
• See Appendix; Progress towards our 2025+ targets
and Sustainability; Sustainable innovation; Our targets 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.
• See Appendix; Stakeholder engagement
for further information on stakeholder engagement.
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Other source
Own Disclosures
Disclosure
Information/Reference/Omission
SIG aseptic carton packs sold labelled
with ASI logo (million packs)
See Sustainability; Key performance indicators; Sustainable innovation
and Sustainability; Sustainable innovation; Reducing life-cycle impact
Food packed with SIG Terra1 packaging
materials (million liters)
See Sustainability; Key performance indicators; Sustainable innovation
sustainable innovations
and Sustainability; Sustainable innovation; Growing uptake of our most
Food packed in SIG Terra1 packaging
materials (% of total liters packed in
SIG packs)
GRI 205:
Anti-corruption 2016
205-2 Communication and training about
anti-corruption policies and procedures
205-3 Confirmed incidents of corruption
and actions taken
GRI 206:
Anti-competitive
Behavior 2016
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices
See Sustainability; Key performance indicators; Sustainable innovation
sustainable innovations
and Sustainability; Sustainable innovation; Growing uptake of our most
See Sustainability; Responsible Culture: Governance and ethics; Training our people and raising awareness and Investigating and acting on concerns
See Sustainability; Responsible Culture: Governance and ethics; Training our people and raising awareness and Investigating and acting on concerns
No legal actions for anti-competitive behavior, antitrust or monopoly practices in 2023.
1 Formerly known as SIGNATURE portfolio for aseptic cartons. From 2023 includes as well BIB&SP Terra products. No chilled carton Terra products defined at this stage.
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Report on non-financial matters in accordance with the Swiss Code of Obligations
Report on non-financial matters in accordance
with the Swiss Code of Obligations
1 General disclosures
1.1 Scope of consolidation
Introduction
Article 964a-c of the Swiss Code of Obligations (Swiss CO) defines reporting obligations for
environmental, social, and governance matters for large Swiss public interest entities. The obligations
apply for the financial year 2023 with the first report to be published in 2024.
This report of SIG on non-financial matters has been established in accordance with Art. 964a et seq.
of the Swiss CO and it covers environmental, social, employee-related, human rights and corruption
issues as required by article 964b of the Swiss CO. For any additional information on our sustainability
approach, please refer to our Annual Report.
Our Board of Directors has approved and signed off on the report with regards to the accountability of
the Swiss Code of Obligations.
This report covers all subsidiaries of SIG globally.1 See note 27 of the consolidated financial statements
for the year ended December 31, 2023 for a list of the Group’s subsidiaries.
1.2 Reporting standards
In addition to the Swiss law on reporting obligations on non-financial matters (Swiss CO article 964 a et
seq), SIG reports sustainability and ESG-related disclosures in line with:
• Task Force on Climate-related Financial Disclosures (TCFD).
• EU Taxonomy.
• Global Reporting Initiative (GRI) Standards (including a content index).
• United Nations Sustainable Development Goals.
Please see the Annual Report, Appendix: ESG disclosures, section “Reporting frameworks” for an
overview of additional frameworks and regulations followed by SIG.
1.3 Our business model
SIG is a leading solutions provider of packaging for better – better for our customers, for consumers,
and for the world. With our unique portfolio of aseptic carton, bag-in-box, and spouted pouch, we work
in partnership with our customers to bring food and beverage products to consumers around the world
in a safe, sustainable, and affordable way. Additional information about our business model can be
found in our Annual Report, section “Who we are”.
1 Our production plant in Baie-d’Urfé, Canada, has been excluded from this report as it was closed in 2023, unless otherwise stated.
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1.4 Main impacts and risks
1.4.1 Material topics
We have identified material sustainability topics, on which we provide detailed disclosures in our Annual Report and in the GRI index.
Innovation in
products and
services
Waste and
circular
economy
Our sustainability approach is built on
our material topics
Climate+
Climate change
Forest+
Climate
change
Biodiversity and forest ecosystems
Resource+
Waste and circular economy
Biodiversity
and forest
ecosystems
Business
practices
Product safety
and integrity
Health, safety, and wellbeing
Responsible
suppliers
Economic
effects
Sustainable raw materials
Human rights2
Employee
satisfaction,
development,
and working
environment
Public policy
and advocacy
Diversity, equity, and inclusion
Water
Water
Food+
Product safety and integrity
Access to nutrition and hydration1
Sustainable innovation
Innovation in products and services
Responsible culture
Responsible suppliers
Sustainable raw materials
Human rights2
Diversity, equity, and inclusion
Employee satisfaction, development,
and working environment
Health, safety, and wellbeing
Access to nutrition
and hydration1
Clean air
Anti-corruption
Community
engagement
Privacy and data security
)
s
e
i
t
i
n
u
t
r
o
p
p
o
d
n
a
s
k
s
i
r
(
t
c
a
p
m
i
d
r
a
w
n
I
Outward impact (on environment, society, and economy)
Non-material
Material
1 Additional strategic topic (not a material issue).
2
Includes freedom of association, freely chosen labor, living
standards, and protection of the child.
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Report on non-financial matters in accordance with the Swiss Code of Obligations
The following mapping shows under which of our material topics we address the non-financial matters as required by the Swiss CO. The green coloration indicates under which Swiss CO topic category
information on our material topics is disclosed in this report.
SIG Group’s material sustainability topics:
Environmental matters
Social issues**
Swiss CO topic categories
Employee-related
issues
Respect for
human rights
Combating corruption
Climate change
Waste and circular economy
Biodiversity and forest ecosystems
Sustainable raw materials
Water
Health, safety and wellbeing
Diversity, equity and inclusion
Employee satisfaction, development and working environment
Responsible suppliers
Human rights
Product safety and integrity
Innovation in products and services
Business practices*
Anti-corruption*
* The topics business practices and anti-corruption were part of our double materiality assessment but have not been identified as material.
** Social issues under the Swiss CO mainly relate to information on various stakeholders. Based on our materiality assessment, we have determined that with respect to social issues, the material topics to be covered are our supplier engagement and product safety and
integrity. Our stakeholders, other than suppliers, are customers, employees, industry, investors, sustainability experts and non-governmental organizations, policymakers and regulators and local communities round SIG production sites. Information on how we engage with
these stakeholders to understand what matters most to them and how we respond to their feedback is included in the Stakeholder Engagement Appendix of our Annual Report.
1.4.2 Risks and due diligence
Enterprise risk management
The Group’s enterprise risk management (ERM) 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. 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.
Refer to section Enterprise risk management in our Annual Report for additional details.
Due diligence
SIG Group applies a due diligence approach to address environmental matters, social matters, employee-related matters, human rights and corruption. Relevant impacts, risks and opportunities are regularly
assessed and policies implemented and regularly updated. The policies define commitments and targets, as well as measures (implementation approach) and responsibilities in relation to these matters.
Measures in place are aimed at reducing negative impacts or increasing positive impacts, where possible. SIG Group defines KPIs in relation to these matters, which are regularly tracked. Additional details can
be found under each material topic described below.
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SIG is a pioneer of the net positive movement. Our ambitions follow the Net Positive Principles, which
demand a material, systemic, regenerative, and transparent approach.
We are striving to minimize our footprint at every stage of the value chain – from sourcing to production,
filling, use, and recycling of our packs. And we are going further to bring positive impact beyond our
value chain, what we call our handprint.
To achieve a net positive impact, our handprints should exceed our footprints when assessed together.
We collaborate with others to develop transparent and credible methodologies to measure both.
2.1.1 Contribution to global goals
The four action areas of our sustainability approach are where we can make the biggest contribution
to the United Nations Sustainable Development Goals – by accelerating progress on global goals
related to climate, nature, circularity, and nutrition. All four contribute, either directly or indirectly, to
preventing biodiversity loss and restoring ecosystems.
We are committed to a science-based approach to help us measure and transparently report progress
towards our net positive ambition – and catalyze our contribution to an equitable, Net Zero, and nature
positive future.
Our Net Zero and greenhouse gas emissions reduction targets have been approved by the Science
Based Targets initiative. In the next phase of our sustainability approach, we aim to establish science-
based targets for nature and have joined the Science Based Targets Network (SBTN) Corporate
Engagement Program to support the development of an enabling framework.
Our sustainability approach also contributes to the ten principles of the United Nations Global
Compact, including through our focus on human rights due diligence as part of our responsible culture.
For more information, see our Annual Report.
Report on non-financial matters in accordance with the Swiss Code of Obligations
2 Our sustainability approach
2.1 Road to net positive
Our sustainability approach is our roadmap for better. We want our packaging solutions to give more
than they take from people and the planet.
At SIG, we are on a journey to create a net-positive impact
on people and planet along our four action areas:
Climate+
Removing more
carbon than we emit
Climate+
Forest+
Creating more
thriving forests
Forest+
Our
sustainability
approach
Resource+
Accelerating innovation
on circularity
Food+
Improving access to nutrition
and cutting food waste
Resource+
Food+
Sustainable innovation & Responsible culture
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2.2 Targets and performance
The following table provides an overview of our progress towards our sustainability targets.
2025 target
Climate+
Material issue: Climate change
Progress tracker
2023 performance
Net Zero value chain greenhouse gas emissions by 2050
More work to do
Our science-based Net Zero target and the accompanying near- and long-term targets (below) were
approved by the SBTi this year. Our pathway to Net Zero prioritizes decarbonization of our operations
and value chain, and we are implementing a series of workstreams to support progress.
Reduce Scope 1 and 2 greenhouse gas emissions by 42% by 2030 –
and by 90% by 2050 (from 2020)
On track
We have cut our total Scope 1 and 2 greenhouse gas emissions by 71% in 2023 and by 79% from the
2020 baseline.
Reduce Scope 3 greenhouse gas emissions by 51.6%2 per liter packed
by 2030 – and by 97% by 2050 (from 2020)
More work to do
Our Scope 3 emissions per liter packed decreased by 6% from 2020, slightly behind our
reduction pathway.
Maintain 100% renewable electricity2 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
On track
On track
Transition to 100% bioethanol or other bio-materials for printing our
aseptic cartons3
On track
We used 100% renewable electricity to make our packs and compensated all non-renewable energy
for production through Gold Standard CO2 offsets.5
We have more than tripled our total on-site solar capacity to 34.5 MWp with two new installations
coming online in Germany this year and further developments are in the pipeline. On-site solar power
met 5.1% of our global electricity needs for production this year and, overall, renewable PPAs
(both on- and off-site) met 21.8%.5
Eight of our nine aseptic carton production plants have already transitioned from fossil-based
solvents to plant-based bioethanol for printing. We expect our plant in Riyadh (Saudi Arabia) to
achieve this transition in the coming year.
Reduce CO2 emissions from inbound and out bound logistics by 18%
(from 2020)4
On track
CO2 emissions from our inbound and outbound logistics across SIG Group have decreased by 18%
from 2020.
1 Greenhouse gas emissions data includes our production plant in Baie-d’Urfé.
2 Target wording changed in line with SBTi-approved target.
3 Target wording amended to clarify that this applies to our aseptic cartons only.
4 Target revised to include the bag-in-box, spouted pouch, and chilled carton businesses we acquired in 2022.
5 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Forest+
Material issue: Biodiversity and forest ecosystems
Progress tracker
2023 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 products1 by 2030
On track
We have begun our first on-the-ground project through our five-year partnership with WWF
Switzerland – to improve the land management of 100,000 hectares and restore a further
750 hectares of degraded forest to create critical habitats and corridors for jaguars in Mexico.
Partner with a non-governmental organization (NGO) to develop a
methodology to measure the impact of FSC™ certification
More work to do
Following initial work with the Institute for Energy and Environmental Research (our NGO partner)
to refine our approach, we will revisit this target as we work towards nature positive.
Work with customers to include the FSC™ label on 100% of the cartons
we sell (up from 97% in 2020)2
On track
Maintain 100% FSC™-certified supply of paperboard for our cartons4
On track
Almost all (99%) of our aseptic cartons carried the FSC™ label.3 To close the remaining gap, we are
working with the small number of aseptic carton customers not using the FSC™ label to integrate it
into their next décor design update, as well as beginning to engage with customers of our newly
acquired chilled carton business on this topic. Overall, 94% of the cartons (aseptic and chilled) we
sold in 2023 carried the FSC™ label.
We continued to purchase 100% of the paperboard for our aseptic cartons with FSC™ certification5
– and achieved this milestone for our chilled carton business (acquired last year) from January 2024.
Overall, 98% of the paperboard for our cartons was procured with FSC™ certification in 2023.
1 Based on the equivalent forest area needed to continually regenerate the wood needed to produce all the SIG cartons made in
4 Target wording revised to clarify that it only applies to our cartons (aseptic and chilled). Our cartons use paper-based liquid
2020 (the year we set the commitment) all over again.
2 Target wording amended to clarify that this target refers only to cartons (as our other packs do not use paperboard) and to clarify
the baseline figure SIG is working from.
packaging board, referred to throughout as “paperboard”. Our supply chains for bag-in-box and spouted pouch solutions are not
connected to forest-based materials as we do not manufacture or sell the cardboard box of our bag-in-box solutions.
5 SIG uses FSC™ Mix material that allows the mixing of FSC™ certified wood with FSC™ controlled wood and ensures that an
3 The FSC™ label that customers can include on SIG packs is the FSC™ Mix label, which means the product is made with a mixture of
equivalent amount of FSC™ certified wood is procured at the beginning of the value chain.
materials from FSC-certified forests, recycled materials, and/or FSC-controlled wood.
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2025 target
Resource+6
Progress tracker
2023 performance
Material issue: Waste and circular economy
Launch a full barrier carton linked to 100% renewable materials1,
On track
SIG Terra Alu-free + Full-barrier had its first commercial launch this year. It is the world’s first full
barrier solution for aseptic carton packs with no aluminum layer that can be used with oxygen-
sensitive products, such as juices, as well as liquid dairy. This solution provides comparable barrier
properties to our standard aseptic carton solutions that include a layer of aluminum foil. We are
working to add Forest-based polymers as an option for SIG Terra Alu-free + Full barrier to complete
this target with SIG Terra Alu-free + Full barrier + Forest-based polymers.7
Further reduce the amount of non-paper2 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
Target replaced
We have replaced this target with new quantified targets for paper content in our cartons by 2025
and 2030 (see below).
Develop a full barrier aseptic carton with at least 85% paper content
(excluding closure) by 2025 – and at least 90% paper content
(including closure) by 2030
New target
Offer a recycle-ready3 bag-in-box and spouted pouch solution in all
our relevant market segments
New target
SIG cartons already contain 75% paper content on average, sometimes more, and we have set
targets to increase this even further as part of our renewed Resource+ ambition. In addition to a
continued focus on increasing collection and recycling rates of beverage cartons, achieving this new
target will enable our cartons to be recycled in regions where only paper recycling streams are
available.
We increased sales of our recycle-ready spouted pouch and continued to offer the first
APR4-recognized recyclable bag-in-box. We are piloting a circular bag-in-box solution that links the
polymers to post-consumer recycled plastics5 and recycles the bags after use. We have also
established detailed guidelines on designing for recycling that will be integrated into our development
of all new bag-in-box and spouted pouch solutions.
1 Excluding negligible constituents, such as inks and pigments.
2 Target wording amended from “fiber” to “paper” to align with wording of new quantified targets.
3
4 Association of Plastic Recyclers.
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
5 Via an independently certified mass balance system.
6 A target, and accompanying KPI, for the newly identified material issue of water is in development.
7 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Resource+ continued
Progress tracker
2023 performance
Partner with stakeholders to implement dedicated and country-
specific roadmaps to support increased collection and recycling of
beverage cartons, bag-in-box, and spouted pouches in priority
countries that account for more than 90% of our global packaging
sales (by weight)
On track
Scale up and expand our community recycling model
On track
We have Going Circular local roadmaps in priority countries that together account for 90% of our
global packaging sales (by weight) – including priority countries identified this year for our newly
acquired bag-in-box and spouted pouch businesses. We continued to partner with industry,
governments, municipalities, customers, and communities to implement local programs to support
increased collection and recycling. These include a new partnership with the German Development
Cooperation in Egypt that monitors ethical working conditions for waste collectors, the expansion of
our social model for collection to Indonesia, new recycling facilities in development in Australia and
Brazil, and awareness and collection programs in a range of other countries. In Europe, our focus is on
developing common industry guidelines and advocating effective policies to enable more collection
and recycling of used packaging.2
The SIG Foundation launched a new Recycle for Good program in Indonesia to incentivize recycling
and provide social support for low-income people by offering rewards in exchange for recyclable
waste – with a strong focus on used beverage cartons and polymer pouches. SIG also launched a
new partnership with the German Development Cooperation in Egypt that supports ethical working
conditions for waste pickers.2
25% reduction in grams of waste per m2 of packaging material used to
produce our aseptic cartons1 (from 2016)
More work to do
Our waste rate from production of our aseptic carton packs has decreased by 3% this year – and by
10% from 2016.
Zero landfill – all waste to be recycled or used as renewable biofuel
On track
Maintain certification to ISO 14001:2015 at all production plants
On track
90.8% of waste from production was reused or recycled, 2.0% was recovered for energy, and only
around 0.8% went to landfill. We have achieved zero waste to landfill at 16 of our production plants.2
We maintained our global ISO 14001 certification and extended it to include the production plants that
were acquired during 2022.2
1 Wording amended to clarify that this target is for aseptic carton production only.
2 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Food+
Material issue: Product safety and integrity8
Progress tracker
2023 performance
Maintain existing ISO 9001:2015 certifications at production plants
(including all aseptic carton plants)1
Maintain top level GFSI2-recognized certification at all packaging
production plants3
On track
On track
We maintained certification to the ISO 9001:2015 quality management standard across our aseptic
carton business, and at nine of our bag-in-box, spouted pouch, and chilled carton production plants.
We achieved top level certification to GFSI-recognized food safety standards at 26 of our 27 relevant
production plants. The remaining chilled carton plant in Taiwan, acquired in 2022, maintained
certification to ISO 22000:2018 and is working towards certification to a GFSI-recognized standard.
Additional strategic topic: Access to nutrition and hydration4
Use SIG’s position within a more sustainable food supply system to
create demonstrable positive impacts on nutrition and hydration
On track
Increase the total volume of nutritious5 food and beverage products
brought to consumers in SIG packs by 50% by 2030 (from 2020)
On track
Support two start-ups per year through our SIG Incubator program to
share unused filling capacity to deliver nutritious food safely and
efficiently6
On track
Create self-sustaining, scalable models for the SIG Foundation’s
Cartons for Good project7
More work to do
We partnered with customers to enable the development of nutritious food and beverages globally,
including plant-based milk and protein beverages – and with food technology company AnaBio
Technologies to create the world’s first long-life probiotic drink. We joined MISTA, a new food
innovation platform, to explore innovative ways to create a more regenerative global food system, as
well as continuing to work with NGO partners to explore opportunities to foster a regenerative food
supply.
The integration of bag-in-box and spouted pouches into our portfolio (through acquisitions in 2022)
has significantly expanded the amount and types of nutritious food we help customers deliver. In
2023, 15.5 billion liters of nutritious food and beverage products were brought to consumers in SIG
packs, up 39% from the 2020 baseline. The amount of nutritious food packed in our cartons alone
has increased by 10% from 2020 to 12.3 billion liters.
We have supported six start-ups to date through the SIG Incubator program. In 2023, the program
helped Earth and Iron launch a plant-based, highly nutritious drink in the UK, as well as supporting our
innovative partnership with AnaBio Technologies (see above). In 2024, we will extend SIG Incubator to
include access to our bag-in-box and spouted pouch filling capacity and expertise.
The SIG Foundation engaged with NGO partners this year to help scale up Cartons for Good in
Bangladesh – where the pilot project turned a further 4.5 metric tons of food loss into 23,000 school
meals in 2023 – and expand it to Egypt.
1 Target amended following integration of our newly acquired bag-in-box, spouted pouch, and chilled carton businesses.
2 Global Food Safety Initiative (GFSI)-recognized certifications include the Brand Reputation Compliance Global Standards
(BRCGS) packaging standard, Safe Quality Food (SQF), Food Safety System Certification (FSSC 22000), and International
Featured Standard (IFS).
3 Target expanded to include other GFSI-recognized standards (not just BRCGS), following integration of our newly acquired bag-in-
box, spouted pouch, and chilled carton businesses.
4 Additional strategic topic (not a material issue).
5 Different types of products are categorized according to their nutritional profile based on the independent Health Star Rating
System.
6 Target amended to include any unused filling capacity and reflect the new name of the SIG Incubator program (formerly
SIGCUBATOR).
7 Target wording shortened by removing the full name of the SIG Way Beyond Good Foundation.
8 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Sustainable innovation
Material issue: Innovation in products and services
Progress tracker
2023 performance
Launch a full barrier carton linked to 100% renewable materials1
On track
2023 performance is reported earlier in this table under Resource+.
Further reduce the amount of non-paper2 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
Develop a full barrier aseptic carton with at least 85% paper content
(excluding closure) by 2025 – and at least 90% paper content
(including closure) by 2030
Offer a recycle-ready3 bag-in-box and spouted pouch solution in all
our relevant market segments
Target replaced
2023 performance is reported earlier in this table under Resource+.
New target
2023 performance is reported earlier in this table under Resource+.
New target
2023 performance is reported earlier in this table under Resource+.
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 aseptic carton packs4 (by 2024)
More work to do
We announced the launch of our prototype next-generation filling machine, SIG NEO, in 2021. It is
designed to reduce use of energy, hydrogen peroxide, and water. The first commercial filling is
underway which will help us confirm whether we have met our reduction targets. We expect to report
results in 2024.
Reduce use of consumables by 25% for the next-generation filling
machine for small format aseptic carton packs5
More work to do
Initial development of our next-generation filling machine for small format packs has commenced,
and reduction of consumables is being considered in the concept phase.
1 Excluding negligible constituents, such as inks and pigments.
2 Target wording amended from “fiber” to “paper” to align with wording of new quantified targets.
3
In line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
4 Targeted reductions compared with our previous generation filling machines. Target wording changed to clarify this refers to
filling of aseptic cartons.
5 Target wording changed to clarify this refers to filling of aseptic cartons.
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2025 target
Our supply chain
Material issue: Responsible suppliers5
Progress tracker
2023 performance
Ensure 100% of significant suppliers1 accept our Supplier Code of
Conduct or have an equivalent code in place
Audit 50% of high-risk significant suppliers each year
On track
On track
80% of significant suppliers have signed up to our Supplier Code of Conduct or have an equivalent
code in place.
In 2023, we audited one of the six suppliers identified as high risk through self-assessments in 2022.
A further four of the suppliers identified as high risk in 2022 are no longer high-risk because they have
accepted our Supplier Code of Conduct, or provided SEDEX SMETA audit or EcoVadis results (or an
equivalent). This means we have met our annual target to audit 50% of high-risk significant suppliers
this 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
We updated our Responsible Sourcing Directive to include our newly acquired businesses, and
provided training for all global, regional, and local procurement teams.
Material issue: Sustainable raw materials
100% A-materials2 from certified sources
More work to do
We increased the proportion of A-materials from certified sources from 74% to 75% (by volume)
for our aseptic cartons this year. Overall, 69% (by volume) of A-materials for all our packs – including
chilled cartons and polymer-based bag-in-box and spouted pouch solutions – were from certified
sources in 2023.
Maintain 100% FSC™-certified supply of paperboard for our cartons3
On track
2023 performance is reported earlier in this table under Forest+.
Transition to 100% bioethanol or other bio-materials for printing our
aseptic cartons4
On track
2023 performance is reported earlier in this table under Climate+.
1 Significant suppliers are those considered most significant to our business (excluding equipment suppliers) – based on their
3 Target wording revised to clarify that it only applies to our cartons (aseptic and chilled). Our cartons use paper-based liquid
potential to affect our ability to meet customer needs, the high volumes we purchase from them, or sustainability risks identified
in the supply chain. They include all direct suppliers that provide materials for our packs, as well as some indirect suppliers of
secondary packaging and services (such as facilities management and logistics).
2 A-materials are the raw materials that go directly into our packs: paperboard, polymers, aluminum foil, ink, and solvents for aseptic
cartons; paperboard, polymers, ink, and solvents for chilled cartons; and polymers and films for bag-in-box and spouted pouches.
(SIG does not manufacture or sell the cardboard box of our bag-in-box solutions.)
packaging board, referred to throughout as “paperboard”. Our supply chains for bag-in-box and spouted pouch solutions are not
connected to forest-based materials as we do not manufacture or sell the cardboard box of our bag-in-box solutions.
4 Target wording amended to clarify that this applies to our aseptic cartons only.
5 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Human rights
Material issue: Human rights1, 4
Progress tracker
2023 performance
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 significant suppliers3 accept our Supplier Code of
Conduct or have an equivalent code in place
Audit 50% of high-risk significant suppliers3 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
Building on the risk assessments of our operations and supply chain that we conducted in 2022,
we completed two-yearly SEDEX SMETA audits of our operations (see related target below
further in-depth human rights risk assessments of our supply chain, to inform our work to identify
salient human rights issues for SIG.
), as well as
We conducted an assessment of potential human rights risks and impacts through SEDEX SMETA
audits at all 27 of our production sites globally – including our newly acquired chilled carton,
bag in box, and spouted pouch production sites, which joined our two-yearly SMETA audits for
the first time.2
On track
2023 performance is reported earlier in this table under Our supply chain.
On track
On track
2023 performance is reported earlier in this table under Our supply chain.
2023 performance is reported earlier in this table under Our supply chain.
Includes freedom of association, freely chosen labor, living standards, and protection of the child.
Includes one audit within the 2023 cycle that was completed in early January 2024.
1
2
3 Significant suppliers are those considered most significant to our business (excluding equipment suppliers) – 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. They include all direct suppliers that provide materials for our packs, as well as some indirect suppliers of
secondary packaging and services (such as facilities management and logistics).
4 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Our people
Progress tracker
2023 performance
Material issue: Diversity, equity, and inclusion
Increase percentage of women in leadership positions to 30%
On track
We continued our focus on recruiting and developing women into leadership positions, including
through our Women Acceleration program. Overall, women represented 25% of our leaders in 2023,
up from 23% in 2022, and we remain on track to hit our 30% target by 2025.3
Maintain survey score linked to inclusive environment above industry
benchmark1
On track
We achieved a score of 85% for diversity, equity, and inclusion in our 2023 employee survey,
eight points above the industry benchmark.1
Material issue: Employee satisfaction, development, and working environment3
Sustain our training and development investment above industry
benchmark
More work to do
Achieve engagement level above industry benchmark1
On track
Increase % of employees who feel SIG has 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
On track
On track
We expanded training and development opportunities, and provided an average of 23.6 hours of
training per employee.2 This is an increase from 20.9 hours last year, but falls just short of the
pre-pandemic industry benchmark of 24.0 hours.
We further strengthened our overall engagement score from 83% to 85% in 2023, two points above
the industry benchmark.1
62% of employees agreed that significant actions have been taken to address priorities identified in
the last survey, up from 60% in 2022.
We continued to extend our non-monetary recognition programs, and 63% of employees felt we
made adequate use of recognition and rewards other than money to encourage good performance
in 2023. This is a significant improvement from 58% last year, but is one point below the industry
benchmark.1
1
Industry benchmark defined as norms for manufacturing companies participating in the Willis Towers Watson employee
engagement survey.
2 Excludes employees in our bag-in-box and spouted pouch business, who will be integrated into our training data from 2024.
3 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2025 target
Progress tracker
2023 performance
Health, safety, and wellbeing
Material issue: Health, safety and wellbeing7
Zero recordable cases1
Achieve a lost-time case2 rate in the top 20% of industry peers3
More work to do
There were 65 recordable cases across SIG Group in 2023, 4% less than in 2022, and the total
recordable case rate for SIG Group decreased by 7% to 0.80 recordable cases per 200,000 hours
worked.
Target
discontinued
We have discontinued this target to focus on more meaningful performance drivers, with a strong
focus on integration of the bag-in-box, spouted pouch, and chilled carton businesses we acquired
in 2022 into our established health and safety systems, procedures, and reporting.
Define a holistic strategy and roadmap to foster wellbeing at SIG
More work to do
We rolled out our holistic program to promote physical, mental, financial, and social wellbeing through
global awareness activities, guides, training, and a new podcast to equip employees and managers
with know-how to support wellbeing.
Communities
Additional strategic topic: Thriving communities4, 7
Increase the impact of community engagement programs by 50%
(from 2020)
More work to do
We have increased the overall impact of our employee-led community engagement programs by
29% from the 2020 baseline to achieve an impact score of 21,997 in 20235 – including through local
initiatives held on our Future+ Day global engagement day and a campaign to raise awareness of
biodiversity and promote conservation activities.
Create self-sustaining, scalable models for the SIG Foundation’s
Cartons for Good project6
More work to do
2023 performance is reported earlier in this table under Food+.
Scale up and expand our community recycling model
On track
2023 performance is reported earlier in this table under Resource+.
Governance and ethics
Additional strategic topic: Fair business practices4
Mandatory annual Code of Conduct training for all employees
On track
Approximately 99% of our employees completed an annual certification on the SIG Code of Conduct
and approximately 95% completed additional in-person or virtual training on the Code of Conduct.
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.
4 Additional strategic topic (not a material issue).
5
Impact score is derived through an assessment of our employee-led community engagement projects – by the employees and
communities involved in them – based on who benefits from each project, the type of impact it has and its potential to contribute
to the United Nations Sustainable Development Goals.
6 Target wording shortened by removing the full name of the SIG Way Beyond Good Foundation.
7 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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2.3 Measures and effectiveness
3 Environmental matters
SIG Group has different management approaches in place to implement measures and ensure
their effectiveness. SIG Group defines KPIs in relation to environmental matters, social matters,
employee-related matters, human rights and anti-corruption which are regularly tracked and help to
assess effectiveness. The Group Corporate Responsibility Director provides updates on the Group’s
sustainability approach and ESG performance to the Nomination & Governance Committee (NGC)
and the BoD twice a year and provides input to the BoD in its annual strategy meeting. This ensures
that the BoD maintains oversight of these matters and KPIs that are relevant to SIG’s business.
Ultimate accountability for our ESG performance and progress on sustainability lies with our CEO and
Group Executive Board (GEB). Progress is reported in section 2.2 above, which further allows to track
effectiveness. In cases of a negative development of KPIs or in cases of non-achievement of targets,
counter measures can be taken or measures may be adjusted to enhance effectiveness.
SIG Group has adopted the following key policies in relation to environmental matters, which summarize
per topic the defined overarching commitment, targets, implementation approach and specific
responsibilities:
• Environment, Health and Safety (EHS) Policy – see chapters 4.1 Tackling climate change, 4.2 Energy
consumption, 4.3 Water, 4.4 Raw materials, 4.5 Production waste and pollution, 4.6 Biodiversity, 4.7
Consumer waste, recycling and circular economy, 4.8 Environmental product performance
• Responsible Sourcing Policy – see chapters 4.1 Responsible suppliers, 4.2 Sustainable raw material
sourcing, 4.3 Energy sourcing, 4.4 Sustainable logistics
• Product Stewardship Policy – see chapters 4.1 Product stewardship, innovation and promotion, 4.2
Filling machine innovation
• Liquid Packaging Board Purchasing Policy
3.1 Climate change
3.1.1
Impacts
By conducting our business activity in a sustainable way, we positively contribute to the United Nations
sustainability development goals 2, 7, 12, 13 and 17. Our regular assessment of potential climate-related
impacts on our business and strategy helps us better understand how the SIG Group may be affected
by climate-related events, both in terms of risks and opportunities.
By offering a packaging solution with the lowest carbon footprint in comparison to available solutions
in the market, we offer our customers and consumers options to further reduce their carbon footprint
and impact on climate change. By further innovating our packaging solutions 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 supporting customers and consumers to
make more informed choices about the environmental performance of our solutions via transparent
and comprehensive studies.
Climate change as a result of global warming is associated with a variety of impacts on the environment
and on people. These can be acute or chronic physical impacts. This also includes impacts on people’s
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.
A major share of our GHG emissions is generated outside our direct operational control through
business partners and customers (sourcing, production, transportation and operation of filling
machines). Within our value chain the purchased goods have the biggest share of GHG emissions.
Thereof, most emissions come from the production of raw materials (incl. aluminum foil, polymers
and paperboard). Regarding sustainable forestry, as a buyer of board made from forest-based fiber,
we have influence on how wood is produced and how forests, as important carbon stocks and sinks,
are managed. Our direct contribution to climate change primarliy results from greenhouse gas (GHG)
emissions, generated through production (electricity and gas).
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3.1.2 Commitments
Tracking the effectiveness of our actions
We aim to reduce the negative climate-related impacts of our business and maximize climate positive
outcomes by adhering to or key policies referred to in section 3 relating to this matter, and by taking
the actions described below.
• We are committed to tackling climate change through both mitigation and adaptation solutions
in 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 decarbonize 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. In 2023 our science-based Net Zero target
was approved by the SBTi.
3.1.3 Measures and performance
Actions taken to manage the topic and our impacts
•
We have various action\ns in place for emissions reduction, such as energy saving programs
in packaging production. We purchase 100% renewable electricity through Energy Attribute
Certificates, as well as directly through on- or off-site power purchase agreements.
• The main projects of our climate positive program 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: Global Production & Supply Chain, supported by Global Environmental, Health and
Safety (EHS).
We have assessed the resilience of our business strategy in the light of climate-related risks, as
recommended by the Task Force on Climate-related Financial Disclosures (TCFD). We are refining our
process to include more specifically future changes in view of costs of carbon e.g. in regulation and
taxations (such as the Carbon Border Adjustment Mechanism (CBAM)).
To assess the effectiveness of our actions:
• Our operations report plant specific data, energy usage and emissions. The results are reported on
a monthly basis in our EHS dashboard. Our VP of Global Sourcing and Procurement, reporting to
the CSO, performs a quarterly review of raw materials and energy sourcing. Production metrics are
reviewed by our Group Executive Board on a monthly basis.
• We perform Internal audits and regularly review our performance against the sustainability targets
by the Group Executive Board.
• A quarterly review of Climate+ projects is conducted with the Chief Technology Officer.
• We track and evaluate our performance through external sustainability assessments such as:
• Annual EcoVadis assessments (including actions and results alongside our climate strategy).
• Regular ASI Performance Standard audits (including robustness of our product carbon footprint
data management).
• Life-cycle assessments for our products based on ISO 14040. We compare eco-innovations and
average products with competing substrates.
• We currently assess where a defined internal carbon price could add further value to our current
management approach. Growth in low carbon solutions is a central KPI for our sales and markets
teams.
Engagement with our stakeholders
Based on feedback from inside and outside the organization from customers, suppliers, employees,
investors and other stakeholders we continually review and update the policies and standards.
• Product design: Global Technology with support from Global Marketing.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
• Filling machines: Global Research and Development and Global Engineering & Application teams
• Logistics: Global Supply Chain Management.
• Recycling: Organizations, overseen by Regional Presidents.
• The internal decision-making, budget allocation and oversight processes are organized in the
above-mentioned departments. The level of responsibility in the functional areas varies, but the
global department heads have oversight.
•
In our strategic and financial decision-making, including decisions as to which actions to take,
we inherently consider climate-related aspects and the potential costs of carbon emissions and
corresponding regulations, even though SIG Group is currently not regulated by a carbon pricing
system.
• Our journey to decarbonizing our own operations, and ensuring the effectiveness of our actions,
is informed by a carbon price in the form of carbon offset pricing. We purchase Gold Standard
CO2 offsets for all direct GHG emissions mainly from fossil energy carriers. The total costs for the
certificates divided by the offset emissions reflect our internal carbon price.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
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We have Standard Operating Procedure for incident reporting in all our production plants: Create EHS
alert. The EHS responsible at each location needs to report back to Global EHS within six weeks of
an incident and provide a root cause analysis and, if possible, resolve the issue. Positive impacts are
communicated via our internal Best Practices app.
Tracking the effectiveness of our actions
We perform 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. We report on lessons learned through local communication to key stakeholders
and consideration of incident reports in EHS meetings.
Engagement with our stakeholders
We exchange with other companies in the industry, enhance dialogue among leading companies and
drive action, these include, but are not limited to The Alliance to End Plastic Waste, the Consumer
Goods Forum’s Coalition of Action on Plastic Waste, and the Circular Economy for Flexible Packaging
(CEFLEX) initiative and our platform EXTR:ACT (both in the EU). We exchange with customers and
suppliers on the AIM-PROGRESS platform and customers can also raise questions or concerns about
waste and recycling with our sales teams. NGOs and local business partners provide us with information
on end-consumer behavior and local recycling and consumption habits.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Sustainability Report for additional measures.
Report on non-financial matters in accordance with the Swiss Code of Obligations
3.2 Waste and circular economy
3.2.1 Impacts
• Packaging prevents the occurrence of food loss and waste during filling, distribution, storage and
consumption.
• Positive impact through recycling in the supply chain, production and after product use, as less
waste occurs.
• 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.
• Negative impacts arise along our value chain due to the waste generated. During the production of
our products byproducts which are considered as waste occur. This also applies to the activities of
our business partners.
•
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.
• Positive contribution to the United Nations sustainability development goals 2, 7, 12, 14 and 17.
3.2.2 Commitments
We aim to reduce the negative impacts of our business with regard to waste and circular economy
by respecting our key policies referred to in section 3 relating to this matter, and taking the actions
described below, and to maximize resource positive outcomes. Thereby, we strive to lead the way
towards a fully circular packaging system.
We are committed to reducing materials waste, including from electronics. To tackle environmental
pollution, we minimize 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.
3.2.3 Measures and performance
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. New production plants are certified in accordance with LEED
(Leadership in Energy and Environmental Design) – construction waste management.
We source sustainably to lower our waste rates. We require FSC™ and ASI Certifications from our
suppliers, making sure that waste is managed efficiently at the sites of the extraction and production
processes and reduced to a minimum.
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3.3 Biodiversity and forest ecosystems
3.3.2 Commitments
3.3.1 Impacts
• Through our engagement for thriving forests 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.
• Another major opportunity is to reduce food loss and waste via the advantages of a highly efficient
shelf stable packaging system. This supports the efficiency in the food produce industry and thereby
can contribute to lower the pressure to further intensify agriculture.
• 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.
Paper-based liquid packaging board makes up around 70-80% of each SIG carton 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 cultivated 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 ore 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.
• Positive contribution to the United Nations sustainability development goals 2, 12, 13, 15, 17.
We aim to reduce negative impacts of our business with regard to biodiversity and achieve more
positive outcomes for nature and forests by respecting our key policies referred to in section 3, and
taking the actions described below.
We are committed to ensuring that biodiversity is maintained and healthy ecosystems and responsible
management practices exist across our value chain.
3.3.3 Measures and performance
Actions taken to manage the topic and our impacts
• We manage any potential impacts through our certified environmental management systems (ISO
14001).
• We are working on a detailed analysis to identify nature-related dependencies, impacts, risks
and opportunities following the recommendations of the Taskforce for Nature-related Financial
Disclosures (TNFD).
• We consider potential biodiversity-related risks within our enterprise risk management and have
started to assess our exposure to sensitive biodiversity areas. Our exposure assessment follows a
location-specific approach, using insights from self-assessments with the WWF risk filters as well
as ISO 14001 and SMETA audits, 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 program, and we focus on creating, restoring, protecting or improving management
of 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, thus lowering the impacts on biodiversity and forest ecosystems.
•
In context of our WWF partnership and the Forests Forward membership we are working on agreed
targets to improve biodiversity further beyond our direct value chain.
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Tracking the effectiveness of our actions
3.4.2 Commitments
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.
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. Issues or concerns can be reported
via the Integrity & Compliance Hotline.
Engagement with our stakeholders
We continually review and update our policies and related standards based on feedback from inside
and outside the organization, including from customers, suppliers, employees, investors and other
stakeholders. Partnerships with industry peers to develop recommendations on how life-cycle
assessments can be used to better address land use impacts on biodiversity and biodiversity footprints
of product systems including all relevant impact drivers such as climate change and pollution.
We aim to reduce the negative impacts of our business regarding raw material sourcing by respecting
respecting our key policies referred to in section 3 on this matter, and taking the actions described
below:
• Our ambition is to make all our packs with exclusively renewable or recycled materials, using only
renewable energy, 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 which encourages companies to pledge support for the
United Nations Sustainable Development Goals through FSC™ certification.
3.4.3 Measures and performance
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Actions taken to manage the topic and our impacts
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Sustainability Report for additional measures.
• We have actions in place to mitigate the stated impacts of the sourcing practices on the environment
and on people and their human rights:
3.4 Sustainable raw materials
3.4.1 Impacts
• 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.
• 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 aluminum and International Sustainability & Carbon Certification
(ISCC) PLUS for plant-based polymers.
• We are increasing transparency in the supply chains.
• Significant suppliers have to acknowledge the SIG Supplier Code of Conduct or an equivalent code.
Tracking the effectiveness of our actions
• Our responsible sourcing ambition and entrepreneurial introduction of responsible sourcing
standards in our value chain have numerous positive outcomes, for example on labor 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.
The SIG Group Executive Board conducts internal audits and regular reviews of performance against
the Way Beyond Good targets. Monthly calls of the local management team with the VP of Global
Sourcing and Procurement, where lessons learned are also discussed. 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.
•
If forests are not responsibly managed, liquid paper board sourcing might be linked to deforestation
and potentially soil degradation.
Engagement with our stakeholders
• The polymers we use depend to a large extent on fossil resources, which carries the potential risk of
land and water pollution.
• Sourcing of metals is energy-intensive and can impact the local environment.
•
If natural resources are over-exploited, 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.
• Positive contribution to the United Nations sustainability development goals 2, 7, 12, 14 and 17.
Based on feedback from inside and outside the organization from customers, suppliers, employees,
investors and other stakeholders we continually review and update the policies and standards. By
requiring raw material certification standards (FSC™, ASI etc.) we take into account a key perspective
of NGOs.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
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3.5 Water
3.5.1 Impacts
•
In our own operations we use process water for cooling the machines in closed water circuits.
increase the
Nevertheless, a potential negative
consumption of fresh water and in those potential cases additional wastewater has to be treated.
impact can arise through
leakages which
3.5.3 Measures and performance
Actions taken to manage the topic and our impacts
• For our aseptic carton filling machines:
• we provide user guidance on target water use to ensure efficient operation at the customer stage.
• we offer water reduction kits and continuously work on product development to lower resource
• The aseptic carton filling machines we produce require water for start-up, cleaning, test runs and
use.
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.
• Positive contribution to the United Nations sustainability development goals 6 and 14.
3.5.2 Commitments
We aim to reduce the negative impacts of our business with regard to water by respecting our key
policies referred to in section 3 relating to this matter, and taking the actions described below.
• We are committed to conservative water use throughout the product supply chain and business
operations and we strive to responsibly 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.
• 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.
• By self-assessments with the WWF Risk Filter, we have begun to evaluate the nature and conditions
of the basins in which we operate, to better understand potential impacts on water security.
• As water stewardship is included in the Forest Stewardship™ (FSC™) principles and in the Aluminium
Stewardship Initiative (ASI) Performance Standard Certification, water impacts are addressed for
both raw materials.
Tracking the effectiveness of our actions
• Monthly review of the global performance with the EHS dashboard (water-related KPIs).
• Water risks are assessed regularly for the next 1-3 years in an environmental risk assessment.
• 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.
•
ISO 14001 impact assessment.
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Engagement with our stakeholders
We exchange with local parties and water utilities sharing the same water resource and/or the same
wastewater treatment facility in water-stressed areas. Our customers can provide feedback to the
sales team or ask questions on water use guidance for the filling machines. Feedback is shared with
teams in R&D and filling machine assembly.
We currently do not have a KPI for the material issue of water. However, we consider reduction of water
usage as part of our sustainable innovation targets and evaluation of progress and performance in
respect of our next-generation filling machine, SIG Neo. See section 2.2, for an overview of our targets
and how we progress to reach our targets.
In respect of performance, we also conducted an assessment using the WWF Water Risk Filter to
identify which of our production plants are in water-stressed areas. The plants in water-stressed areas
– Merced (USA), Querétaro (Mexico), Riyadh (Saudi Arabia), and Suzhou (China) – together account for
14% of our production plants. We began work to conduct site water risk assessments and develop action
plans for water management at each of these plants, in addition to their existing water management
systems. We used a total of 486,462 m3 of water in 2023, including 124,473 m3 in water-stressed areas
(based on an assessment using the WWF Water Risk Filter). We discharged 308,312 m3 of wastewater
in 2023 (around 63% of the total used).
3.6
Innovation in products and services
3.6.1 Impacts
Innovation towards higher recyclability of products or less resource-intensive products will positively
impact SIG’s entire value chain and reduce the quantity 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 towards less resource-intensive products we
mitigate/reduce negative impacts on the environment and on society and avoid potential human rights
violations. We positively also contribute to the United Nations sustainability development goals 12, 13
and 17.
3.6.2 Commitments
We aim to reduce the negative impacts of our business with regard to innovation in products and
services by respecting our Product Stewardship policy referred to in section 3, and taking the actions
described below.
3.6.3 Measures and performance
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.
Tracking the effectiveness of our actions
We perform Internal audits and regular reviews of progress by our Responsibility Steering Group and
our Group Executive Board. Any issues or concerns can be reported via the Integrity & Compliance
Hotline. Lessons learned are shared with the organization 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.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
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4 Social matters
SIG Group has adopted the following key policies in relation to social matters, which summarize per topic
the defined overarching commitment, targets, implementation approach and specific responsibilities:
• Responsible Sourcing Policy – see chapters 4.1 Responsible suppliers, 4.2 Sustainable Raw material
sourcing (relevant in relation to enhancing product stewardship and traceability)
4.1.3 Measures and performance
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, labor practices and human rights. This includes
the formal acceptance of our Supplier Code of Conduct.
• Product Safety and Quality Policy – see chapters 4.1 Product safety and quality, 4.2 Product liability
• Equipment suppliers providing parts for our filling machines are required to complete an additional
• Product Stewardship Policy – see chapters 4.1 Product stewardship, innovation and promotion
• Liquid Packaging Board Purchasing Policy – see section 1.1.4 Wood sources (describing expectation
that wood is not harvested in violation of civil rights)
• Corporate Governance Policy – see chapter 4.6 Shareholders and wider stakeholder group
In addition to the material topics below, 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
impact for people and the planet. Section “Communities” in the Annual Report provides details on how
we engage and support our communities to help them thrive, for example through the SIG Foundation
and our network of Future+ Ambassadors, with support from employee volunteers.
questionnaire related to conflict minerals and/or provide a CMRT document.
• 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 two 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.
•
•
•
4.1 Responsible suppliers
4.1.1
Impacts
• Through supplier engagement, we provide transparency around 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.
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. There were no lessons
learned in the reporting period.
Engagement with our stakeholders
In the event of non-compliance by a supplier with our requirements, our process of supplier
development will be initiated, which may result in potential termination of business relationships.
Negative impacts in the supply chain can potentially arise due to a violation of human rights, such as
those relating to child labor or forced labor, in the upstream business relationships.
• 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
• Through our supplier engagement, we contribute to the United Nations sustainability development
supply chain is very fragmented.
goals 8, 12, 13, 15 and 17.
4.1.2 Commitments
We aim to reduce the negative impacts of our business with regard to responsible suppliers by
respecting our key policies referred to in section 4 on this matters, and taking the actions described
below.
• 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.
• We are committed to screening significant new suppliers for our carton business. This year we
also identified direct significant suppliers for our newly acquired bag-in-box and spouted pouch
businesses.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
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4.2 Product safety and integrity
4.2.1 Impacts
• 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.
• Positive contribution to the United Nations sustainability development goals 2 and 12.
4.2.2 Commitments
We avoid the negative impacts related to product safety and integrity which could potentially be
caused by our business by respecting our key policies referred to in section 4 on this matter, 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 and biodiversity.
4.2.3 Measures and performance
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 recognized 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.
• 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 the raw
materials used.
• Our production plants are certified according to a GFSI recognized Scheme standard / ISO 22000
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 standardized 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.
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 is validated 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 organization on an ad hoc basis.
• We identify potential improvements through data analysis and follow-up with individual respondents
in our customer surveys. 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. We also standardized the customer complaint management
process.
Engagement with our stakeholders
We have a customer feedback program (NPS = Net Promoter Score) which measures customer
satisfaction, including in terms of quality and safety.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
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5 Employee-related matters
SIG Group has adopted following key policies in relation to employee-related matters, which summarize
per relevant topic the defined overarching commitment, targets, implementation approach and
specific responsibilities:
• Environment, Health and Safety (EHS) Policy – see chapters 5.1 Workplace safety, 5.2 Chemical
safety, 5.3 Employee health and well-being
• Human Rights, Labour and Community Engagement Policy – see chapters 5.1 Human Rights Due
Diligence, 5.2 Child and Forced Labour, 5.3 Fair labour practices, 5.4 Diversity, equity and inclusion,
5.5 Employee relation and communication, 5.6 Employee engagement and retention, 5.7 Employee
recognition and development
• Code of Conduct – see chapter 2 Equal employment opportunity, harassment and discrimination, 3
Environment, health and safety, 4 Human rights compliance, 11 Privacy and data protection
5.1 Health, safety and wellbeing
5.1.1
Impacts
• As a global employer operating in more than 60 countries, we have an impact on the health and
safety of our 9,000+ 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.
5.1.3 Measures and performance
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.
• Two-yearly SEDEX SMETA audits which include health and safety as one of the pillars.
• By focusing on human behavior 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 programs to promote work–life balance, healthy lifestyles, mindfulness and
smart time management to support employee wellbeing.
• We have implemented a bi-weekly newsletter on the topic of safety (Safety Flash) to keep this topic
top of mind for our employees.
Tracking the effectiveness of our actions
• EHS dashboard contains health and safety KPIs and is reviewed by the Group Executive Board each
month.
• Employee wellbeing (mental, social and physical) is a key driver to improve employee engagement
• Quarterly reports to the Group Executive Board.
levels and productivity.
• There are positive spill-over effects if employees incorporate their safe behavior in their private lives,
which has a positive impact on their families and on the community.
• Negative impact on health & safety can occur through high heat at production sites.
• At-risk behavior in the workplace can lead to injuries and lost-time cases.
• 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 site self-assessments (based on ISO 45001) and internal audits / assessments.
• 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 behavior-based safety process.
• We monitor incidents and near misses.
• Lessons learned: preliminary incident reporting, analysis of the incidents, final accident report with
lessons learned (global EHS distribution list).
• Board of Directors are regularly updated.
• Positive contribution to the United Nations sustainability development goal 8.
Engagement with our stakeholders
5.1.2 Commitments
We aim to reduce the negative impacts of our business with regard to health, safety and wellbeing by
respecting the EHS policy referred to in section 5, 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.
We conduct employee surveys and focus groups on wellbeing. Partnerships with customers to extend
our engagement on workplace safety in their operations. Our technicians are instructed to inform
customers about health and safety issues, and they report customer feedback.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
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5.2 Diversity, equity and inclusion
5.2.1 Impacts
• 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.
•
Promoting diversity, equity and inclusion decreases the likelihood of discrimination and violation of
human rights.
• Depending on the producing country, there might be a high risk of inequality and discrimination
based on gender, race, religion, political affiliation and sexual orientation in our supply chain.
• Positive contribution to the United Nations sustainability development goals 5 and 10.
5.2.2 Commitments
We aim to reduce the negative impacts of our business with regard to diversity, equity and inclusion
by respecting our key policies referred to in section 5 relating to this matter, 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
against employees or suppliers’ workers based on race, religion, national origin, political affiliation,
gender, sexual orientation, disability, age or any other relevant category.
5.2.3 Measures and performance
Actions taken to manage the topic and our impacts
Tracking the effectiveness of our actions
• Regular dialogue with employees.
• SEDEX SMETA site audits, EcoVadis assessments.
• Diversity and inclusion dashboard.
•
Issues or concerns may be reported through any available channel, including supervisors and
managers, representatives of People & Culture, Legal & Compliance, Internal Audit or the Integrity
& Compliance Hotline.
• We analyze 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.
Engagement with our stakeholders
SIG cooperates with universities and other organizations via websites, campaigns or through networks
and communities, to attract female engineers and better engage with women to understand what
matters most to them.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
5.3 Employee satisfaction, development and working environment
5.3.1 Impacts
• Appealing working conditions attract talent and contribute to the economic development of the
• We create an inclusive workspace with equal professional opportunities regardless of gender, age,
region.
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.
• Positive impact through professional education, trainee programs, technical and management
courses.
• Long working hours can have serious health implications such as burn-out, psychological problems
and stress.
• Positive contribution to the United Nations sustainability development goal 8.
• We train our leaders on diversity and inclusion to increase awareness and drive behavior change.
5.3.2 Commitments
• 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. Thereby, we apply recruitment
practices that help us to attract diverse talent.
• We implemented an Integrity & Compliance Hotline which is available to all SIG employees, as well
as to external stakeholders such as investors, suppliers and customers, or other business partners.
We aim to reduce the negative impacts of our business with regard to employee satisfaction,
development and working environment by respecting our key policies referred to in section 5 relating
to this matter, 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. We provide opportunities for continuous learning and
development.
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5.3.3 Measures and performance
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 labor practices or other breaches of the Code of Conduct.
• We offer development opportunities, including through mentoring and digital learning, as well as
further training opportunities.
• 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.
Tracking the effectiveness of our actions
• Regular internal or third-party assessments of our operations.
• SEDEX SMETA site audits.
• Quarterly meeting with Group Executive Board and employees.
• Regular dialogue with employees.
•
Issues or concerns may be reported through any available channel, including supervisors and
managers, representatives of People & Culture, Legal & Compliance, Internal Audit or the Integrity &
Compliance Hotline.
• Surveys and comparison with other companies.
• Lessons learned: reported ad hoc and individually discussed at quarterly meetings.
Engagement with our stakeholders
6 Respect for human rights
• SIG Group has adopted following key policies in relation to human rights matters, which summarize
per topic the defined overarching commitment, targets, implementation approach and specific
responsibilities:
• Human Rights, Labour and Community Engagement Policy – see chapters 5.1 Human rights due
diligence, 5.2 Child and forced labour, 5.3 Fair labour practices, 5.4 Diversity, equity and inclusion
• Responsible Sourcing Policy – see chapter 4.1 Responsible suppliers
• Code of Conduct – see chapters 2 Equal employment opportunity, harassment and discrimination
and 4 Human rights compliance
• Supplier code of conduct
6.1 Human rights
6.1.1
Impacts
• As we integrate the respect for human rights into the Company, we actively contribute to the United
Nations sustainability development goal 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.
• By embedding respect for human rights in the Company culture, we contribute positively to the work
ethic in the organization and in business relationships, and in a broader sense to the community.
• Possible negative impacts on people and their human rights arising from both our direct operations
and the broader supply chain are primarily associated with our initiatives in the areas of health,
safety and wellbeing, modern slavery, discrimination and harassment, children’s rights, minorities,
liberty and security of the person, fair labor 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 2023 at our own operations include issues related to working hours and overtime. We
are further investigating these impacts at the plants concerned and are analyzing the root causes
at the plant level. We have devised specific action plans, tailored to the circumstances, to address
the issue and the impacts at each plant concerned. Additionally, we will establish mechanisms to
prevent similar issues recurring in the future.
Engagement with our employees through supervisor or human resources hotline.
6.1.2 Commitments
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
We aim to reduce the negative impacts of our business with regard to people and their human rights by
respecting our key policies referred to in section 6 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. While
performing due diligence 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, labor, 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.
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6.1.3 Measures and performance
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 labor, freedom of association, health and safety, child labor, wages and
benefits, working hours and discrimination, no harsh and inhumane treatment. All our production
sites undergo SMETA audits to assess compliance with fair labor 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 labor practices
to safeguard our employees‘ rights in all aspects.
•
Issues or concerns may be reported through any available channel, including supervisors and
managers, representatives of People & Culture, Legal & Compliance, Internal Audit 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.
• Positive impacts on people and their human rights or success stories can be shared via our Best
Practices app.
Tracking the effectiveness of our actions
7 Combating corruption
• SIG Group has adopted the following key policies in relation to corruption-related matters, which
summarize per topic the defined overarching commitment, targets, implementation approach and
specific responsibilities:
• Code of Conduct – see chapter 6. Anti-corruption/anti-bribery
• Anti-Bribery and Anti-Corruption Policy
• Corporate Governance Policy – see chapters 3. Core principles, 4.2 Compliance, monitoring and
reporting, 4.4 Board operations
7.1
Impacts
Unethical business practices by SIG employees, such as bribery and corruption, and failing to act with
integrity, in compliance with applicable laws and regulations or in accordance with our internal policies
and processes, could result in reputational and financial impact for SIG Group.
Unethical business practices by third parties, such as bribery and corruption, make it more difficult
for SIG managers and employees to act with integrity and in compliance with applicable laws and
regulations and our internal policies, such as SIG’s Code of Conduct. SIG Group, its managers and
employees can contribute to combating corruption and bribery by upholding ethical business practices
and by complying with applicable laws and regulations and our internal policies.
In 2023, we strengthened our human rights due diligence, including reviewing and updating our policy,
conducting further risk assessments and analyses to inform identification of salient human rights
issues, and explicitly extending our grievance mechanism to suppliers and other third parties.
Engagement with our stakeholders
Employees, suppliers and any third parties can report issues or concerns related to human rights via
our Integrity & Compliance Hotline, Human Resources teams or the Global Legal and Compliance
team.
7.2 Commitments
We are committed to acting professionally and with integrity in everything we do, abiding by the
principles set out in the SIG Code of Conduct which include:
• Ethical and legal behavior (for example regarding anti-bribery and anti-corruption).
• 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.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
• Professionalism and good business practice.
Section 8 provides an overview of our key performance indicators over the period 2020-2023. Refer to
our Annual Report for additional measures.
The SIG Code of Conduct is approved by our Board of Directors and detailed by policies and guidelines
on specific topics. Available in 19 languages, it sets out our expectations on topics such as anti-bribery
and anti-corruption, avoidance of and dealing with 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, detailed in our Anti-bribery and Anti-corruption Policy, and reinforced through training.
We encourage people to speak up if they have any questions or concerns, without fear of retaliation,
via their line managers, our people and culture teams, or global and regional Legal and Compliance
Officers. SIG employees, as well as external stakeholders such as investors, suppliers and customers, or
other business partners can also report concerns via our Integrity & Compliance Hotline (anonymously
if they wish, where permitted by local legislation).
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7.3 Measures and performance
Actions taken to manage the topic and our impacts
• We are committed to conducting business in an honest and ethical manner and have a zero tolerance
approach towards bribery and corruption as stated in our Code of Conduct and in our Anti-Bribery
and Anti-Corruption Policy.
• All employees must complete an SIG Code of Conduct training as part of their induction when they
join the business, and they are required to complete a refresher training every year.
• We provide additional in-depth training on specific topics for those working in high-risk roles.
This include further training for sales, procurement and finance teams on anti-bribery and anti-
corruption.
• Group Internal Audit regularly reviews expense reports as part of their audits to assess implementation
of and compliance with our internal policies and procedures on anti-bribery and anti-corruption.
• Any issues or concerns, including those related to bribery and corruption, may be reported through
any available channel, including supervisors and managers, representatives of People & Culture,
Legal & Compliance, Internal Audit or the Integrity & Compliance Hotline, see the Annual Report,
chapter Sustainability, section Responsible culture: Governance and ethics, sub-section Progress in
2023 and sub-section Our Commitment.
• We investigate all concerns and take appropriate action, including, but not limited to, disciplinary
measures.
Tracking the effectiveness of our actions
• Regular updates and statistics on compliance matters, including those relating to anti-bribery and
anti-corruption, are provided to the Audit and Risk Committee.
Internal audit reports are provided to the Audit and Risk Committee.
Issues or concerns can be reported via the Integrity & Compliance Hotline.
•
•
• Lessons learned are shared with the organization on an ad hoc basis.
See section 2.2 for an overview of our targets and how we progress to reach our targets.
Refer to our Annual Report for additional measures.
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8 Sustainability key performance indicators
The table below shows our sustainability key performance indicators for our material topics from 2020-2023. For the limited assurance report by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft,
Germany on the KPIs for periods 2021, 2022 and 2023, please see the end of the section “Sustainability key performance indicators”.
Metric
Climate+
Material issue: Climate change
2020
2021
2022
2023
Total Scope 1 and 2 greenhouse gas emissions (thousand metric tons CO2 equivalent)6
100.42, 5
75.92, 5
73.62, 5
Total Scope 3 greenhouse gas emissions (million metric tons CO2 equivalent)1
Scope 3 greenhouse gas emissions intensity (grams CO2 equivalent/liter of food packed)1
Scope 1, 2, and 3 greenhouse gas emissions intensity (grams CO2 equivalent/liter of food packed)1
Scope 1 greenhouse gas emissions for production (thousand metric tons CO2 equivalent)6
Scope 1 greenhouse gas emissions for our aseptic carton production (thousand metric tons CO2 equivalent)6
Scope 2 greenhouse gas emissions for production (market based) (thousand metric tons CO2 equivalent)6
Scope 2 greenhouse gas emissions for our aseptic carton production (market based) (thousand metric tons CO2 equivalent)6
Scope 1 and 2 greenhouse gas emissions intensity for production (aseptic carton sleeves only) (metric tons CO2 equivalent/million m2
of sleeves produced)6
Energy used for production from renewable sources (Power Purchase Agreements or Energy Attribute Certificates) or compensated
using Gold Standard CO2 offset (%)6
Electricity used for production from renewable sources (Power Purchase Agreements or Energy Attribute Certificates) (%)6
Operational energy use for our production (GWh)6
Energy intensity for production (aseptic carton sleeves only) (MWh/million m2 of sleeves produced)6
1.92
682
722
31.42, 5
31.1
69.12, 5
22.9
17
1003
1002, 3
3833
201
1.92
662
682
30.12, 5
29.8
45.82, 5
0
15
1003
1002, 3
4023
197
2.02
652
672
26.62, 5
25.1
47.12, 5
0
12
1003
1002, 3
3883
183
20.9
1.9
64
65
20.9
19.5
0
0
10
100
100
492
175
Forest+
Material issue: Biodiversity & forest ecosystems
SIG carton packs4 sold labeled with FSC™ logo (%)
973
983
993
94
1 Data includes our production plant in Baie-d’Urfé. 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.
2 Not assured.
3 Aseptic carton business only.
4
5 Restatement based on changed emission factors 2023
6 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
Includes aseptic and chilled cartons.
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Metric
Resource+1
Material issue: Waste management & circular economy
SIG carton packaging7 that is designed for recycling2 (%)
2020
2021
2022
2023
1008
1008
1008
100
SIG bag-in-box and spouted pouch packaging that is recycle-ready3 or for which we offer alternative recycle-ready bag-in-box and
spouted pouch solutions (%)
SIG packaging portfolio that is recycle-ready4 (%)
Waste rate for production (aseptic carton sleeves only) (grams of waste per m2 of packaging material)
–
–
32
–
–
34
–
–
32
Food+
Material issue: Product safety & integrity
Significant carton7 product and service categories which health and safety impacts are assessed for improvement (%)
1008
1008
1008
Significant bag-in-box and spouted pouch product and service categories for which health and safety impacts are assessed for
improvement (%)
Non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services in our
carton businesses7 (number of incidents)
Non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services in our
bag-in-box and spouted pouch business (number of incidents)
–
08
–
–
08
–
–
08
–
69
90
31
1008
100
07
0
Additional strategic topic: Access to nutrition & hydration5
Nutritious food and beverage products6 brought to consumers in SIG packaging (billion liters)
11.27, 9
11.87, 9
12.17, 9
15.59
1 A KPI for the material issue of water is in development.
2 Our evaluation of recyclability of cartons is based on the relevant EN643 standard.
3 Our evaluation of recycle-readiness for bag-in-box and spouted pouch is in line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
4 Our evaluation of recyclability of cartons is based on the relevant EN643 standard and our evaluation of recycle-readiness for bag-in-box and spouted pouch is in line with Design for Recycling criteria developed by APR (Association of Plastic Recyclers) and Recyclass.
5 Additional strategic topic for our Food+ action area (not a material issue).
6 Defined by the independent Health Star Rating System as food and drinks that contribute to a balanced diet and lead to better health.
7
8 Aseptic carton business only.
9 Not assured.
Includes aseptic and chilled cartons.
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Metric
Sustainable innovation
Material issue: Innovation in products & services
Food packed with SIG Terra9 packaging materials (million liters)
Food packed in SIG Terra9 packaging materials (% of total liters packed in SIG packs)
SIG aseptic carton packs sold labeled with ASI logo (million packs)
Supply chain
Material issue: Responsible suppliers
2020
2021
2022
2023
457.27, 14
540.97, 14
613.56, 7, 14
1,544.2
3.17, 14
80.07
3.57, 14
577.0
3.47, 14
5.3
1,383.7
2,801.0
New suppliers10 screened using social responsibility criteria (% of significant suppliers11 for our carton businesses)8
100
100
1001
100
New suppliers10 screened using social responsibility criteria (% of significant suppliers11 for our bag-in-box and
spouted pouch business)15
–
–
–
1002
Material issue: Sustainable raw materials
A-materials12 from certified sources for our cartons8 (% by volume)
A-materials12 from certified sources for all our packaging (% by volume)15
Human rights
Material issue: Human rights3, 15
627, 14
–
7014
–
7414
–
7514
69
Plants completed SEDEX Members Ethical Trade Audit (of total number of plants)4
8 of 913
9 of 913
8 of 8
27 of 275
1 Excludes the chilled carton business acquired part way through 2022.
2
Integration of our bag-in-box and spouted pouch business into our Group procurement processes is ongoing. Data for 2023 includes the direct significant suppliers we have identified that provide raw materials for our bag-in-box and spouted pouch packs. We will work
to add further significant suppliers for our bag-in-box and spouted pouch business in future, including indirect suppliers providing secondary packaging and services.
Includes freedom of association, freely chosen labor, living standards, and protection of the child.
3
4 SEDEX audits are completed on a two-yearly cycle and plants are considered to hold completed status for the year following their last audit. We report the number of plants that have completed SEDEX audits, but SIG’s total number of SEDEX certifications is higher due
to multiple entities being audited at a single plant as well as additional SIG business entities undergoing SEDEX audits beyond our production plants.
Includes one audit within the 2023 cycle that was completed in early January 2024. The bag-in-box, spouted pouch, and chilled carton production plants we acquired in 2022 joined our scheduled two-yearly cycle of audits in 2023.
5
6 Data restated due to an error in reporting.
7 Not assured.
8
9 Formerly known as our SIGNATURE portfolio for aseptic carton solutions. From 2023, recycle-ready bag-in-box and spouted pouch solutions have also been added to the SIG Terra portfolio.
10 Includes suppliers that are new to SIG Group through our acquisitions in 2022.
11 Significant suppliers are those considered most significant to our business (excluding equipment 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
Includes aseptic and chilled cartons.
risks identified in the supply chain.
12 A-materials are the raw materials that go directly into our packs: paperboard, polymers, aluminum foil, ink, and solvents for aseptic cartons; paperboard, polymers, ink, and solvents for chilled cartons; and polymers and films for bag-in-box and spouted pouches. (SIG
does not manufacture or sell the cardboard box of our bag-in-box solutions.)
13 The Australia production site acquired in 2019 completed its first SEDEX audit in 2021 as part of our two-yearly audit cycle. The site ceased production in mid-2021.
14 Aseptic carton business only.
15 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data access.
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Metric
Our people
Material issue: Diversity, equity & inclusion7
Women in leadership positions
Material issue: Employee satisfaction, development, and working environment7
Sustainable engagement score (% favorable responses)
Training and development investment (average training hours/employee)
Health, safety, & wellbeing
Material issue: Health, safety, & wellbeing7
Total recordable cases1 across SIG Group
Total recordable case rate (per 200,000 hours worked) across SIG Group
Lost-time cases2 across SIG Group
Lost-time case rate (per 200,000 hours worked) across SIG Group
Total recordable cases1 in our aseptic carton business
Total recordable case rate (per 200,000 hours worked) in our aseptic carton business
Lost-time cases2 in our aseptic carton business
Lost-time case rate (per 200,000 hours worked) in our aseptic carton business
Total recordable cases1 in our bag-in-box, spouted pouch, and chilled carton businesses
Total recordable case rate (per 200,000 hours worked) in our bag-in-box, spouted pouch, and chilled carton businesses
Lost-time cases2 in our bag-in-box, spouted pouch, and chilled carton businesses
Lost-time case rate (per 200,000 hours worked) in our bag-in-box, spouted pouch, and chilled carton businesses
2020
2021
2022
2023
18%3
20%
23%6
25%
874
19.44
–5
20.54
–
–
–
–
333
0.833
13
0.31
–
–
–
–
–
–
–
–
313
0.603
17
0.33
–
–
–
–
83
20.96
683
0.863
183
0.363
33
0.623
18
0.35
353
1.323
103
0.383
85
23.66
65
0.80
40
0.49
33
0.60
21
0.38
32
1.24
19
0.73
1 Total recordable cases include medical treatment and restricted work cases as well as lost-time cases.
2 A lost-time case is defined as absence for one or more shifts or loss of one or more working days.
3 Not assured.
4 Aseptic carton business only.
5 There was no employee survey in 2021 as it was previously run every two years.
6
7 Data excludes our production plant in Voronezh, Russia, due to limitations in respect of data collection.
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 in 2022.
SIGAnnual Report 2023 Disclaimer and cautionary statement
The information contained in the Annual Report and in any link to our website indicated herein is not for
use within any country or jurisdiction or by any persons where such use would constitute a violation of
law. If this applies to you, you are not authorized to access or use any such information.
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.
The information contained in the Annual Report is not an offer to sell or a solicitation of offers to
purchase or subscribe for securities. The Annual Report is not a prospectus within the meaning of the
Swiss Financial Services Act nor a prospectus under any other 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.