Sonoco 2009-2010 Sustainability Annual .Sonoco 2010 Sustainability Annual Report 1 Sonoco’s Sustainability

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  • Sonoco 2009-2010 Sustainability Annual Report

  • Sonoco 2010 Sustainability Annual Report 1

    Sonocos Sustainability Statement of IntentSonoco 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.

    Sustainability Mission StatementSonocos strategic mission statement is to be the low-cost global leader in providing customer-preferred packaging solutions to selected value-added segments, where we expect to be either number one or two in market share. Shareholder return, customer and employee satisfaction, commitment to excellence, integrity, environmental stewardship and a safe workplace will be the hallmarks of our culture.

    The Companys focus on sustainability is directly linked to and in support of its mission statement. We believe that initiatives

    around enhancing our reputation, being a strong corporate citizen, providing a good

    place to work and being a good steward of our environmental

    resources will make us a stronger, more competitive company,

    better able to support and satisfy our broad customer base and provide shareholders with sustainable returns.

    Sonoco 2009-2010 Sustainability Annual Report

    1 introduction 2 letter to stakeholders 4 sustainability scorecard 5 environmental stewardship 9 sonoco recycling inc. 11 economic performance 12 sonoco at a glance 14 true blue products 16 social responsibility 19 sustainability oversight

    In todays competitive global marketplace, the issues relevant to supporting sustainability are directly linked to Sonocos long-term profitability and viability. We believe that sustainability and business success are not only compatible but are inextricably linked and that by embracing both, we will benefit our shareholders for the long term.

    About the coverThe photos on the cover illustrate how Sonoco is setting the standard for sustainability in the packaging industry. As shown on the cover from left: Sonoco is helping customers meet their need for more environmentally friendly packaging through its new True Blue line of sustainable products and services, which includes the high-performance composite can Sonoco pro-duces for Kraft Foods popular Maxwell House coffee. At Sonocos service center in Wroclaw, Poland, an employee pre-pares a customers product for distribution. Sonocos service centers, which provide just-in-time product packaging, create sustainable value for customers by helping them reduce unnec-essary inventory, improve customer service, eliminate obsoles-cence and reduce costs. Sonoco is one of the largest producers of uncoated recycled paperboard, manufacturing approxi-mately 1.8 million tons annually at its 21 global mills. Recovered plastic bottles are readied for processing at Sonocos expanded recycling center in Charlotte, N.C.

  • Sonoco 2010 Sustainability Annual Report2

    2009 was one the most difficult, and yet, one of the more reward-ing years for sonoco. The continua-tion of the deepest global recession in decades significantly impacted consumers and many businesses, including Sonoco. Yet our com-mitment to pursuing the triple bottom line of sustainability did not change. Our efforts to integrate environmental stewardship, social responsibility and economic performance into our business strategies have made Sonoco more competitive and better prepared to meet economic and other challenges.

    Reducing our carbon footprintDespite tough operating conditions, Sonoco made significant progress in reducing our carbon footprint by cutting greenhouse gas (GHG) emissions. Last year, we committed to reducing GHG emissions from our uncoated recycled papermills in the United States and Canada by approximately 15% by 2013. I am pleased to report that our efforts in 2009 led to an approximate 13% reduction of GHG emissions from these mills.

    In addition in 2009, we implemented a global Web-based envi-ronmental management system to collect GHG emissions data from all of our international manufacturing facilities. We have taken this new global data, established 2008 as our baseline year, and set a goal of reducing GHG emissions from our more than 300 manufacturing facilities by 15% by 2014. Further-more, we have submitted our global data for participation in the Carbon Disclosure Project and are working to expand our GHG tracking to include global mobile sources.

    The significant progress we made in 2009 toward reducing GHG emissions has come from decreasing energy consump-tion and by converting steam boilers at some of our paperboard mills to less carbon-intensive fuels.

    Over the past decade, Sonocos global manufacturing opera-tions have been focused on reducing energy consumption by an average of about 2% per year. In 2009, our North American paperboard mills exceeded this goal by reducing overall energy consumption by 3.3%, which saved the Company approxi-

    mately $2.2 million and reduced GHG and other emissions. During the past 10 years, we have reduced total energy consumption at our mills by 18%, saving approxi-mately $15 million, and sig-nificantly reducing emissions.

    Some of these energy-use reductions have been achieved by using variable-frequency drives on equipment to lower horsepower usage and by

    installing lower wattage lighting with motion sensors. Additionally, thermal energy reductions have been achieved with waste-heat-recovery systems that capture energy typically lost through boiler stacks, effluent streams and other sources. We are reusing this captured heat in other capacities in our mills. Finally, to squeeze even more energy out of our system, we have implemented office energy conservation programs focused on better managing lighting, heating and cooling systems.

    At our Menasha, Wis., paper-board mill, we switched from purchasing steam produced from a local coal-fired utility in late 2009 to generating steam with natural gas-fired boilers at the plant. This con-version reduced energy costs and GHG emissions. In the third quarter of 2010, we will make a similar switch involv-ing an investment of $2.8 mil-lion on the installation of two high-efficiency, natural gas-fired boilers that will supply steam for our Holyoke, Mass., mill.

    In Europe, we are investing approximately $4 million in our paperboard mills in Cirie, Italy, and Kilkis, Greece, to improve energy efficiency and environmental controls as well as product range and cost competitiveness.

    To Sonoco Stakeholders

    Harris E. DeLoach Jr., Chairman, President and Chief Executive Officer

    DOMESTIC AND CANADIAN MILLS

    GREENHOUSE GAS REDUCTION TARGETS(thousand metric tons co2e)

    1600

    1200

    800

    400

    15%

    13%

    891 774 1405 1288 1194

    08 09 08 09 14PGLOBAL

    OPERATIONS

  • Sonoco 2010 Sustainability Annual Report 3

    Creating sustainable value for our customersWe took our commitment to meeting our customers needs for environmentally responsible packaging to the next level in 2009 with the launch of our True Blue brand of sustainable packaging solutions and recycling services.

    Our True Blue brand gives consumer product customers a one-stop shop for sustainable packaging solutions that reduce their environmental footprint. The True Blue brand leverages our extensive skill and experience in developing superior design concepts that meet our customers performance, cost and sus-tainability requirements.

    To qualify for Sonocos new True Blue brand, a package must provide a clear environmental advantage over the package it was created to replace, either through the use of more sustain-able materials or source reduction. (More information on our True Blue brand of products and recycling services can be found on page 14 in this report.)

    Recognition for sustainabilitySonoco received significant recognition for its commitment to sustainability this past year. We were one of only seven U.S. com-panies selected to join the prestigious Dow Jones Sustainability World Index (DJSI World), which tracks the financial perfor-mance of leading sustainability-driven companies worldwide. Only three global packaging companies are listed on DJSI World, and only about 10% of the approximately 3,000 compa-nies invited to participate in the program were chosen.

    Sonocos inclusion in this elite index was a result of a 17% improvement in the Companys overall sustainability score in 2009, which demonstrates the progress were making in all of our global operations. This improvement was also recognized by Sustainable Asset Management (SAM), which has assessed and documented the sustainability performance of more than 1,000 corporations annually since 1999. In its Sustainability Yearbook 2010, SAM named Sonoco the SAM Sector Mover in the Container and Packaging Sector for achieving the largest year-over-year sustainability performance improvement of the companies in the sectors top 15%. The Company also was awarded the SAM Bronze Class status for attaining a total score within 5% of the SAM Sector Leader.

    To Sonoco Stakeholders

    Newsweek magazine also named Sonoco one of the 100 Greenest Large American Companies and the highest-rank-ing U.S. packaging company in its inaugural Green Rankings. Leading environmental researchers KLD Research & Analytics, Trucost and CorporateRegister.com spent more than a year developing the rankings by evaluating the countrys 500 largest companies on their environmental performance, green policies and reputation.

    Finally, in early 2010, we received a Supplier Achievement Award from Altria Corporation as its leading supplier for sus-tainability and corporate responsibility.

    People, Culture and ValuesOur values guide