1 Sustainability and Sonoco SERDC October 2011 Susan Albritton

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1 Sustainability and Sonoco SERDC October 2011 Susan Albritton Slide 2 2 Sonocos strategy targets a shift in the mix of its business toward faster-growing consumer-related markets. Global Consumer Strategy Global Rigid Paper and Closures Global FlexiblesGlobal ServicesGlobal Plastics Slide 3 3 Sonoco is a vertically integrated global manufacturer of uncoated recycled paperboard and the worlds largest producer of tubes and cores. Sonoco Industrial Strategy Industrial Converted ProductsPrimary MaterialsSonoco Recycling Slide 4 4 Package Creation and Innovation Complete Consumer Packaging Retail Merchandising Packaging Supply Chain Services Sustainability and Recycling Sonoco Provides a Total Solutions Offering Slide 5 5 Founded 1899 in Hartsville, S.C. Diversified provider of consumer and industrial packaging and services $4.1 billion in sales 300 plants in 34 countries, 17,300 employees Products sold in 85 countries Sonoco Is Global Packaging Slide 6 Sustainability Oversight 6 Board of Directors Employee and Public Responsibility Committee Sustainability Sponsor Harris DeLoach Chairman and CEO Sonoco Sustainability Council Roger Schrum - VP, Investor Relations & Corporate Affairs, Committee Chair Vicki Arthur - VP, Global Corporate Accounts Gloria Bell - Staff VP, Internal Audit Jim Bowen - SVP, Primary Materials Group, NA Rodger Fuller - VP, Global Rigid Paper and Plastics John Grups - Staff VP, Operating Excellence Allan McLeland - VP, HR Bob Puechl - VP, Global Flexibles Jeffrey Schuetz - Staff VP, Global Technology, Consumer Jim Brown - Staff VP and GM, Sonoco Recycling Marty Pignone - Vice President, Global Industrial Manufacturing Slide 7 7 What Corporate Responsibility and Sustainability Means to Sonoco Sonoco will be the packaging industry leader in creating, maintaining and enhancing a sustainable future that benefits all of its stakeholders through continuous improvement in operating performance, social responsibility and environmental stewardship. Sonocos Statement of Intent Community Service Purpose: Enhance corporate citizenship in the communities in which Sonoco operates through community support and partnerships, employee volunteerism, workplace practices, diversity, and corporate governance Environmental Stewardship Purpose: Reduce Sonocos environmental footprint by: Reducing waste going to landfills Reducing energy consumption Reducing greenhouse gas emissions Reducing hazardous air emissions Reducing water usage Implementing and encouraging internal recycling programs Economic Performance Purpose: Create sustainable value for Sonoco and its customers by: Enhancing use of sustainable packaging solutions Using more sustainable materials Providing commercial waste reduction services Expanding community-based recycling programs Developing renewable energy partnerships Slide 8 Environmental Stewardship GHG Emission Targets* Goal: Reduce normalized global GHG emission intensity 15% by 2014 o 5.8% reduction since 2008 base year; 1.2% reduction in 2010 o Shipped production increased by 9.7% in 2010 Reduce normalized global energy o 1.6% global reduction in 2010 o 3.5% U.S./Canada reduction in 2010 Use less carbon-intensive fuels and more efficient boiler operations o Menasha, Wis.; Holyoke, Mass.; Hartsville, S.C. 8 *Historical data has been adjusted to reflect changes in business structure and improvements in data collection and accuracy, and so differ from previous reports Metric tons CO2 equivalent / ton of production Slide 9 Mature Plan in Place for Operations Established an environmental management system to measure consumption and emissions at the plant level Implemented energy usage metering and tracking systems at paper mills Established 3.5% energy reduction goal at U.S. and Canadian paper mills Initiated two programs designed to accelerate progress at converting operations o Lighting projects o Compressor projects o Franklin, Ohio, included in Phase 1 9 Environmental Stewardship *Historical data has been adjusted to reflect changes in business structure and improvements in data collection and accuracy, and so differ from previous reports MMBtus / ton of production Slide 10 Landfill Disposal Targets* Reduced normalized global landfill disposal by 8.3% in 2010 Goal: Have 10% of Sonocos 315 global plants at land- fill free status by 2014 o Five plants brought to land-fill free status in 2010 Goal: Double number of customer plants at land-fill free status by 2014 o 14 plants brought to land-fill free status by S3 program 10 Environmental Stewardship *Historical data has been adjusted to reflect changes in business structure and improvements in data collection and accuracy, and so differ from previous reports Metric tons / Metric ton of production Water Withdrawal* Reduced normalized global water withdrawal by 2.3% in 2010 Cubic meters / ton of production Slide 11 Sonocos Industry Involvement and Recognition Active role in shaping and leading the industry o Newsweeks 125 Greenest companies o Sustainable Forestry Initiative o Dow Jones Sustainability Index 1 of only 2 packaging companies in the U.S. o Wal-Mart Packaging Sustainability Network o Sustainable Packaging Coalition o GMA Committee Founding member on the sub-committee for Extended Product Stewardship o Sustainable Asset Management (SAM) Gold Class Leader, SAM Sustainability Yearbook 2011 Awarded to only two U.S. packaging companies SAM reviews and documents the sustainability performance of companies o S3 referenced in a NYSE Magazine article (see 2nd page) for its work with a major CPG, http://www.nysemagazine.com/smartmanufacturing Packaging Sustainable Value Network 11 Slide 12 Awards and Recognition 12 Slide 13 13 Created to help customers create and implement sustainable business solutions: Identify cost avoidance opportunities through reducing and diverting materials currently going to landfills Convert waste streams to revenue streams by finding alternative uses for the materials Provide summary reporting of both productivity improvements and sustainability statistics Assurance of safe destruction of branded material The Purpose of Sonoco Recycling Perform waste audit Identify landfill reduction and revenue enhancement opportunities Specify and install equipment Influence packaging design, convert recyclables into new products Convert waste streams to revenue streams Transport and sell recyclables Remove standard recyclables ------------ Destroy branded recyclables Slide 14 Recycling is Core Business Increased recycling helps Sonoco stay competitive 35% of tubes/ cores produced are reclaimed in closed loop programs Recycling is integral to Sonocos packaging success 50% of fiber consumed in 3 key SE Mills Slide 15 Whats Challenging in the Industry Today? Fiber consumption decreasing in USA Reclamation is at an all time high Single stream technology needs continual refinement / investment Economics ! Slide 16 Material Supply Strategy Manage Commodity Impact Drop-off Single-stream Dual-stream Slide 17 Sonoco Recycling Aiming forward Creative Approaches help facilitate recycling program development Drive Education to encourage participation and community support Collaboration with Supplier Stakeholders to meet specific needs Partnership with communities and supply generators to expand program footprints Slide 18 18 Helping to Increase the Population Served Partnering with Municipalities to increase Participation o Awareness / Education Positive / Negative incentives PSAs Public Events (E-Waste Recycling, Paper Shredding) Visual Communication / Bin Stickers Interactive online media o Increasing Materials Accepted Rigid Plastics EMPTY Aerosol Cans Partnering with Govt Agencies o SC: DHEC, SC Department of Parks & Recreation, Palmetto Pride, SCDOT and Sonoco Recycling for Recycling on the Go programs in State Parks (Recycling at the Park) & Visitors Centers o NC: Partnership w/ the NC Division of Pollution & Prevention, Keep NC Beautiful o All states: various recycling coalitions Slide 19