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2011-2012
Corporate Responsibility Report
Sonoco 2011-2012 Corporate Responsibility Report
Sonoco’s sustainability statement of intent
About this report
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.
For the 2011-2012 Corporate Responsibility Report,
Sonoco followed the Global Reporting Initiative (GRI)
Guidelines for the first time. These guidelines form a
voluntary framework setting out principles and indicators
that are used to measure and report economic, environmental and social performance. To define the content of
this report, Sonoco carefully considered projects it
completed in 2011 and the first half of 2012 and how
those projects relate to our customers, shareholders,
employees, suppliers and the communities in which
we operate.
Sustainability mission statement
Sonoco’s strategic mission statement is to be the lowcost 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 Company’s 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 and more
competitive company, better able to support and satisfy
our broad customer base and provide shareholders with
sustainable returns.
In today’s competitive global marketplace, the issues
relevant to supporting sustainability are directly linked
to Sonoco’s 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.
1
2
4
6
7
9
11
14
Introduction
Letter to Stakeholders
Sonoco at a Glance
Economic Performance
Sustainability Progress
Environmental Stewardship
Social Responsibility
Sustainability Oversight
The Company used the GRI Technical Protocol
to ensure it correctly defined this report’s
content and then used the G3 guidelines to
ensure comprehensiveness, adding
content as considered necessary by
the guidelines. A GRI Reference
Table is available at http://www.
sonoco.com/sustainability/
corporateresponsibilityreports.
Sonoco has been listed in the Dow Jones
Sustainability World Index for three consecutive
years. Thus, we have used the Corporate Sustainability
Assessment developed by Sustainable Asset
Management (SAM) to determine materiality. This year’s
report repeats the format and metrics used in previous
sustainability reports to provide stakeholders with easy
understandable communication of the Company’s progress of corporate responsibility.
All historical data referenced in this report have been
adjusted to reflect changes in business structure and
improvements in data collection and accuracy, and so
may differ from previous reports. For instance, data
used in 2011 included the Company’s acquisition of
Associated Packaging Technologies, Inc., a large plastics
thermoforming business with operations in North
America and Ireland, as well as other smaller acquisitions.
Environmental metrics in this report have been gathered
from all global manufacturing locations, excluding certain
warehouses and small office structures. Water usage
includes that used in global paper operations, which we
estimate to be approximately 90% of our total usage.
1
To Sonoco Stakeholders
economic performance continues to provide a balance of
consistent financial performance while achieving our
sustainability targets.
Building sustainable businesses
While we expected to meet our 2014 carbon emission
reduction goals through already identified programs,
we made a further commitment to reduce greenhouse
gas (GHG) and other emissions by beginning the construction of a new $75 million biomass cogeneration system at our Hartsville, S.C., manufacturing complex in late
2011.
Harris E. DeLoach Jr.
Chairman and Chief
Executive Officer
I’M PLEASED TO SHARE SONOCO’S 2011-2012 CORPORATE
RESPONSIBILITY REPORT WITH YOU. It communicates our
progress as we help ensure that the Company operates
with integrity, honoring the trust that has been placed in
us, and helping to strengthen the communities where we
operate.
For more than 113 years, Sonoco has been committed
to creating long-term value for its stakeholders by
becoming a more sustainable and responsible corporate
citizen. The Company’s focus on pursing business strategies that support the “triple bottom line” of integrating
environmental stewardship, social responsibility and
Powered by wood wastes from regional logging activity,
the new cogeneration system will produce low-cost
“green” energy and steam for our paper and other operations. As part of the project, we will shut down a coalfired boiler system in the second half of 2012 and produce steam with a new gas-fired boiler system. Once
operational in late 2013, the biomass cogeneration project is expected to significantly reduce our energy costs
and emissions resulting in annual operating savings of
about $14 million.
As one of the largest recyclers in the packaging industry,
Sonoco further expanded recycling operations in 2011,
growing collections by 6% with an emphasis on develop-
SONOCO’S COMMITMENT
WE ARE COMMITTED TO REDUCING THE
ENVIRONMENTAL FOOTPRINT OF OUR GLOBAL
OPERATIONS.
n
We have reduced normalized GHG emissions intensity by
4.4% since 2009, moving toward our five-year carbon emission reduction goal of 15% by 2014.
n
Normalized water usage by our global manufacturing
operations has been reduced by 7.2% since 2009, including
a 5.1% reduction in 2011.
n
The Company met its goal of having five of its U.S. manu-
facturing plants achieve Star Award status by diverting at
least 95% of their waste streams from landfill disposal
through improved recycling efforts.
WE ARE COMMITTED TO IMPROVING THE
SUSTAINABILITY OF OUR PACKAGING AND PROVIDING
INNOVATIVE SOLUTIONS TO MEET OUR CUSTOMERS’
SUSTAINABILITY GOALS.
n Our Design for Environment packaging evaluation tool,
along with the use of life-cycle indicator tools, helped our
customers reduce packaging materials, utilize more
sustainable materials and shrink supply chain costs.
n
In 2011, we started the Sustainability Star Award program
to recognize our customers’ and Sonoco’s facilities that have
achieved significant milestones in waste stream reduction
through recycling and other landfill mitigation efforts. A total
of 12 plants received gold and silver awards for diverting up
to 99% of those facilities’ waste streams from landfills.
2
To Sonoco Stakeholders
ing new comingled residential material recovery facilities
(MRF). We now serve nearly 150 communities and
expanded MRFs in Columbia, Charleston and Greenville,
S.C., and Charlotte, Raleigh and Jacksonville, N.C.
Achievements in corporate responsibility
Sonoco continues to be recognized for achievements in
corporate responsibility. For the third year in row, the
Company was listed to the Dow Jones Sustainability
World Index for 2011/2012. We received the highest
ranking of any global packaging company on the index
and were honored with a Sector Leader and Gold Class
rankings by Sustainability Asset Management.
Sonoco also was ranked as the top packaging company
in Newsweek’s 2011 Green Rankings and was selected
as South Carolina’s Top Ranked Company for Sustainability Excellence by Southeastern Corporate Sustainability Rankings. In addition, the Company was recognized in Corporate Responsibility Magazine’s 100 Best
Corporate Citizens.
While we don’t go out of our way to receive external recognitions, they confirm our actions and performance are
at the highest level with our peers and with the best
companies in the world.
Focused on a sustainable future
We remain focused on creating sustainable value to all
our stakeholders. In an era when many companies come
and go, Sonoco has weathered the test of time. The
Company is a member of the New York Stock Exchange’s
elite Century Club, which represents 10% of NYSE’s U.S.
listed companies that have been able to not only survive
but thrive for more than 100 years.
Ongoing dialogue with our stakeholders plays an essential part in our sustainability efforts. We hosted a range
of stakeholder dialogue events with
our customers, shareholders, vendors, employees and
with residents in the communities where we operate.
I join our more than 19,600 employees in thanking you
for taking time to read our 2011-2012 Corporate
Responsibility Report. If you would like to extend a dialogue with the Company on issues of sustainability, you
may contact us at [email protected].
Sincerely,
Harris E. DeLoach Jr.
Chairman and Chief Executive Officer
SONOCO’S COMMITMENT
WE ARE COMMITTED TO PROVIDING A SAFE AND
HEALTHY WORKPLACE AND SUPPORTING THE
COMMUNITIES WHERE WE OPERATE.
n The Sonoco Health Connection opened on the Company’s
Hartsville manufacturing complex to provide our employees
with on-site medical treatment options, including
preventative screenings and wellness care.
n
Sonoco teamed with Darlington County (South Carolina)
WE ARE COMMITTED TO STRONG GOVERNANCE
PRACTICES AND ONGOING DIALOGUE AND
ENGAGEMENT WITH OUR STAKEHOLDERS.
n The Company’s bylaws were amended to provide that the
Board of Director’s chair of Corporate Governance and
Nominating Committee, which is always an independent
director, serve as Lead Director.
n
We updated our Human Rights Policy to further
Schools, Yale University’s School Development Program,
emphasize our commitment to ethical business conduct,
Coker College and the South Carolina Governor’s School for
equal opportunity, protection of workers’ rights, including
Science and Mathematics to launch a unique public-private
the rights of children.
education partnership to increase academic achievement
and provide unique accelerated learning programs to more
than 1,500 elementary and high school students in the
Company’s hometown of Hartsville.
n
We continue to emphasize our performance-driven
culture by empowering our people. We annually survey
employees to measure engagement and consistently
receive 75% positive satisfaction scores.
3
Sonoco At a Glance
FOUNDED IN 1899, SONOCO IS A GLOBAL PROVIDER OF A VARIETY OF CONSUMER
PACKAGING, INDUSTRIAL PRODUCTS, PROTECTIVE PACKAGING AND PACKAGING
SUPPLY CHAIN SERVICES.
CONSUMER PACKAGING
PAPER AND INDUSTRIAL CONVERTED
Products and Services: Recycled paperboard,
Products and Services: Round composite cans,
chipboard, tubeboard, light-weight corestock,
shaped rigid paperboard containers, fiber caulk/
boxboard, linerboard, corrugating medium,
adhesive tubes, aluminum, steel and peelable
specialty grades; paperboard tubes and cores,
membrane easy-open closures for composite
concrete and void forms, molded plugs, reels,
and metal cans; plastic bottles, jars, jugs, cups
collection, processing and recycling of old
and trays; printed flexible packaging, rotogravure
corrugated containers, paper, plastics, metal,
cylinder engraving, global brand management
glass and other recyclable materials
Markets: Snacks, nuts, cookies, crackers, hard-
Markets: Converted paperboard products, spiral
baked goods, desserts, candy, gum, frozen
winders, beverage insulators, construction, film,
concentrate, powdered and liquid beverages,
flowable products, metal, paper mill, shipping and
non-carbonated beverages, ready-to-drink
storage, tape and label, textiles, wire and cable,
products, powdered infant formula, coffee,
municipal, residential, customers’ manufacturing
refrigerated dough, frozen entrees, processed
and distribution facilities
food, vegetables, fruit, seafood, poultry, soup,
pasta, dairy, sauces, dips, fresh-cut produce, pet
food, home and personal care, adhesives
Sonoco 2011-2012 Corporate Responsibility Report
4
Sonoco At a Glance (continued)
WITH ANNUALIZED NET SALES OF APPROXIMATELY $4.5 BILLION, THE COMPANY HAS
APPROXIMATELY 19,600 EMPLOYEES WORKING IN MORE THAN 340 OPERATIONS IN 34
COUNTRIES, SERVING MANY OF THE WORLD’S BEST-KNOWN BRANDS IN SOME 85 NATIONS.
DISPLAYS AND
PACKAGING SERVICES
Products and Services: Point-of-purchase
PROTECTIVE SOLUTIONS
Products and Services: Highly engineered,
custom-designed protective, temperatureassurance and retail security packaging
displays, custom packaging, in-distribution
solutions
center packaging, fulfillment, primary and
Markets: Consumer electronics, automotive,
secondary package filling, supply chain
appliances, medical devices, temperature-
management, paperboard specialties
sensitive pharmaceuticals and food, heating
Markets: Automotive, beverages, candy,
and air conditioning, office furnishings, fitness
electronics, personal care, baby care, food,
cosmetics, fragrances, hosiery, office supplies,
toys, home and garden, medical, over-thecounter drugs, sporting goods, hospitality
industry, advertising
equipment, lawn and garden, promotional and
palletized distribution, health and beauty,
mobile devices, writing and office supplies,
medical trays, over-the-counter pharmaceuticals, hardware/lighting, housewares
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Economic Performance
OVERVIEW
NET SALES
billions of dollars
07
08
10
4.50
11
164.6
165
151.5
201.1
214.2
217.5
$220
2012 PERCENT PROJECTED
SALES BY OPERATING SEGMENT
110
Paper and
Industrial Converted
39%
Packaging Services
9%
55
Consumer Packaging
41%
07
08
09
10
11
Protective Packaging
11%
Sonoco 2011-2012 Corporate Responsibility Report
2.29
2.24
2.34
$2.40
1.78
1.80
1.20
.60
07
08
09
10
11
CASH DIVIDENDS PAID
TO SHAREHOLDERS
dollars per share
1.15
1.11
$1.20
1.08
Sonoco will not permit any type of illegal, unethical or improper
behavior on the part of any employee. Employees are expected to
comply with all laws and conduct all business in a fair and ethical
manner. Furthermore, the Company requires its board of directors,
management, employees, contractors and vendors to understand
and comply with stringent business conduct standards. In 2012,
Sonoco updated its Human Rights Policy to further emphasize our
commitment to ethical business conduct, equal opportunity, protection of workers’ rights, including the rights of children.
dollars
1.07
Sonoco follows a philosophy that greater transparency, sensible risk
taking and strong governance policies are necessary to protect
shareholder value. The Company’s board of directors and its management strongly support and adhere to all legislative and regulatory
standards adopted by the U.S. Congress, the Securities and
Exchange Commission, the State of South Carolina and the New York
Stock Exchange. In 2012, the Company’s bylaws were amended to
provide that the Board of Director’s chair of Corporate Governance
and Nominating committee, which is always an independent director,
serve as Lead Director.
BASE EARNINGS PER SHARE
2.38
Governance
1.02
Consumer Packaging
$1,977 • 44%
Protective Packaging
$158 • 4%
09
millions of dollars
millions of dollars
Packaging Services
$471 • 10%
4.12
1.2
NET INCOME ATTRIBUTABLE
TO SONOCO
Changing mix of business
Paper and
Industrial Converted
$1,892 • 42%
3.6
2.4
Furthermore, the Company completed the largest acquisition in its history paying
$550 million for Tegrant Holding Corporation. The acquisition provides the
Company a new growth platform and establishes Sonoco as a leading provider
of custom-engineered protective packaging in North America.
2011 SALES BY
OPERATING SEGMENT
3.60
4.04
2011 was a year of challenge and change for Sonoco. The Company’s businesses
faced escalating raw material, energy, freight and other costs and an unexpected
decline in industrial-related volumes late in the year. Despite these significant
macroeconomic headwinds, Sonoco achieved record sales while attaining the
third highest base earnings in Company history.
4.12
$4.8
.90
.60
.30
07
08
09
10
11
6
Product Stewardship
In early 2011, Sonoco
worked with Unilever to
create a high-performance,
lighter-weight package for
its Wish-Bone® salad
dressing. The dressing bottle,
made from reduced
materials, sports the highly
recognizable “wishbone”
shape and diamond pattern.
Sonoco Plastics reduced
the bottle’s weight by 20%,
meeting Unilever’s
sustainability goals.
IN 2011, PLANTERS ASKED SONOCO TO UPGRADE
Sonoco has taken the iconic Pringles rigid paperboard can from two plies of recycled paperboard to
one ply; the foil from .00275 inches to .00255 inches
gage; and adhesives from three glue lines to two,
while maintaining the same can strength and
integrity, resulting in a material reduction of over 7%. ITS 16 OZ. AND 20 OZ. GLASS PEANUT JARS. SONOCO
RESPONDED WITH A DURABLE, LIGHTWEIGHT PLASTIC
OPTION (SHOWN ON COVER) THAT MET ALL OF PLANTERS’
PERFORMANCE TARGETS—BUT WEIGHED 84% LESS. THE
DRASTIC REDUCTION IN PACKAGING MATERIALS LED TO
A HOST OF SUSTAINABLE BENEFITS INCLUDING A 25%
REDUCTION IN THE NUMBER OF TRUCKS REQUIRED
TO TRANSPORT PLANTERS DRY ROASTED PEANUTS.
ADDITIONALLY, THE NEW PACKAGING IS 100%
RECYCLABLE AND NON-BPA.
7
AWARDS AND
CERTIFICATIONS
Product Stewardship
Named one of the 25 Top Companies for
Leaders in North America by Aon Hewitt, The
Sonoco Alcore, the Company’s European
unit, signed a contract in 2012 with the
Alliance for Beverage Cartons & the
Environment (ACE) to establish the
RBL Group and Fortune for a fourth time.
Named a Platinum Fit-Friendly Company by
the American Heart Association.
United Kingdom’s first drink carton
Listed as one of only three global packaging
reprocessing facility near Halifax, West
companies in the Dow Jones Sustainability
Yorkshire. Beginning in 2013, Sonoco
World Index for 2011/2012. This was
Alcore will be capable of recycling
Sonoco’s third consecutive listing.
25,000 tonnes of paper-based drink
cartons sorted from household and
commercial waste streams. The recycled
cartons will be processed into uncoated
recycled paperboard at Sonoco’s Halifax
Ranked by Sustainability Asset Management
(SAM) as Gold Award winner and Sector
Leader in the packaging category in its
Sustainability Yearbook 2011.
mill. The recycled paperboard will then
Rated as the top packaging company and
be used to produce paperboard tubes
the top company in the Materials Sector in
and cores that will hold wound goods,
Newsweek’s 2011 Green Rankings.
including plastic film, textiles and paper.
Listed on 2012 Fortune Most Admired
Companies.
Named 2010-2011 Philanthropist of
the Year by The Pee Dee Chapter of the Amer-
Traditionally, gum packaging has used foil
as a barrier lidding that allows for easy dispensing by pushing each piece of gum
through the foil wall. Sonoco’s high-performance die cut, polyethylene terephthalate
(PET) film, used in Trident Vitality™ gum, eliminated the need for this foil
and resulted in a 7% reduction in the weight of the blister pack’s lidding.
6
BEGINNING IN THE SUMMER OF 2012, SONOCO ALCORE IS
INVESTING NEARLY 6 MILLION EUROS AT ITS SCHWEIGHOUSE-SURMODER PAPERBOARD MILL LOCATED IN THE HEART OF ALSACE
REGION OF FRANCE. THE INVESTMENTS ARE PRIMARILY FOCUSED
AROUND ENERGY, MATERIAL AND ENVIRONMENTAL EFFICIENCY.
ican Red Cross for the Company’s disaster
relief donations in Haiti, Japan, New Zealand,
Thailand and in Alabama and Darlington
County, South Carolina, in the United States.
Listed as the top ranked company in South
Carolina for Excellence in Sustainability
by the Southeastern Corporate Sustainability
Rankings developed by Green Business WORKS.
Named the top ranked packaging company
in the 2011 Top 100 Corporate Citizens by
Corporate Responsibility Magazine.
Received Monarch Butterfly program
certification from the Mexican Paper Chamber
for production of paperboard, tubes and cores
from 100% recycled fiber at industrial carrier
plants and paper mills in Mexico.
2012
SM
SFI-00112
Sonoco 2011-2012 Corporate Responsibility Report
8
Environmental Stewardship
Climate change policy
Sonoco recognizes its responsibility
to address the challenges of climate
OVERVIEW
change. As a result, the Company
maintains an environmental
Sonoco is working to shrink the environmental footprint of each of its more than 340
“manufacturing plants in 34 countries by reducing energy consumption, green house gas
and other air emissions, water usage and wastes going to landfills. Landfill disposals from
the Company’s plants increased in 2011 reflecting improved data collection and the onetime disposal of certain recycled materials that had been collected for future beneficial
use. Sonoco is working to implement and encourage recycling programs through its
Sonoco Star Awards program, created to recognize customer- and Company-owned facilities for achieving significant milestones in landfill diversion and waste stream reduction.
management system that measures
the environmental performance of our
operating facilities around the world.
We measure energy usage, greenhouse
gas and other air emissions, water
consumption and waste generation.
In addition to required regulatory
disclosures, we annually report our
environmental performance to the
Carbon Disclosure Project and other
Goals and targets
external sustainability ratings.
Using 2008 as the baseline year, Sonoco has committed to reducing
normalized GHG emissions by 15% from our global manufacturing
We are committed to providing open,
facilities by 2014. Sonoco expects to meet this goal by reducing
ongoing communications about our
sustainability goals and progress.
energy and carbon emissions through targeted investments and initia-
We also will continue working in
tives. Sonoco also intends to have 10% of the Company’s global manu-
partnership with our suppliers and
facturing operations at landfill-free status by 2015.
customers to address issues involving
climate change.
KEY ENVIRONMENTAL METRICS
Key Metrics
Unit % Improved 2011 2010
Total Energy Usage MMBtu 4.84 15,741,174
16,541,437
Energy Usage (normalized)* MMBtu/ton 4.96
3.507
3.688
Total Greenhouse Gas Emissions (GHG) mtons CO2 3.21 1,352,299
1,395,820
Direct Emissions (Scope 1) (normalized)
mton CO2/ton
3.37
0.163
0.169
Indirect Emissions (Scope 2) (normalized) mton CO2/ton
3.23
0.138
0.143
Total GHG Emissions (normalized)*
mton CO2e/ton 3.13
0.301
0.311
Total Landfill Disposed mtons (12.54) 168,611
149,826
Landfill Disposed (normalized)*
mton/mton (12.46) 0.0376
0.033
Total Water Usage
MM m3 1.84 29.930
30.490
Water Usage (normalized)*
m3/ton 5.06 6.455
6.799
Shipped Production mtons .09 4,488,897
4,484,656
*Historical data referenced in this report have been adjusted to reflect changes in business structure
and improvement in data collection and accuracy, and so may differ from previous reports.
9
ENVIRONMENTAL
POLICY
Environmental Stewardship
Turbine Generator
Steam
Boiler
m to Process
Stea
Steam
Sonoco takes seriously its responsibility to
protect the environment in which we work and
live, and will conduct its business in accordance
with all legal requirements and ethical responsibilities, using scientific knowledge, technical
innovation and sound environmental
management practices.
We will be sensitive to environmental issues
throughout our business systems, including our
selection of materials, processes and products.
We will utilize appropriate monitoring techniques to ensure adherence to accepted
standards.
n
Wood
H20
Electricity
Wood
Residue
Paper Mill
Process Steam
We will conduct operations in full compliance
with applicable environmental laws and
regulations. In those areas of the world where
such requirements are at a minimum, we will
operate in a completely responsible manner.
n
We will utilize natural resources efficiently,
continuously seeking ways to reduce our
requirements. We will strive to maximize the
utilization of recovered materials in the
products we manufacture and use.
n
Sonoco’s new biomass cogeneration system, currently under construction, will produce 16 megawatts of low-cost, “green” electricity
and steam that will be used at its Hartsville complex. The boiler system
is expected to provide approximately $14 million in annual savings.
We will minimize the generation of
discharges to the environment, including air
emissions, wastewater and solid waste.
n
We will support the development of scientific
knowledge relating to environmental matters
and implement appropriate new technologies to
improve our environmental performance.
n
Led by Sonoco’s Operating
Excellence group, in 2011 the
Company began a series of lighting and compressor projects
aimed at reducing energy usage
and saving the Company money
by using direct capital towards
energy reduction. Year-to-date,
Sonoco has saved 4.3 million kWh
through lighting retrofits and 5.3
million kWh with upgrades to its
compressors. The team plans to
continue the project during the
second half of 2012.
In 2011,
Sonoco
launched its
Sonoco
Sustainability
Star Awards
program. To
date, 12 customer and Company facilities
have achieved at least 95% landfill diversion.
Five of those are Sonoco owned: Cascades
Sonoco, Birmingham, Ala. (99%); Sonoco
CorrFlex, York, Pa. (99%); Rigid Paper and
Closures, West Chicago, Ill. (99%); Sonoco
CorrFlex, Winston-Salem, N.C. (95%); and
Sonoco CorrFlex, Rural Hall, N.C. (95%).
Sonoco 2011-2012 Corporate Responsibility Report
We will proactively assist our customers in
addressing environmental issues related to
their use of our products.
n
We will communicate openly with our
stakeholders concerning our environmental
record.
n
We will cooperate with public and
governmental organizations to seek responsible
solutions to environmental needs and to
develop effective and balanced environmental
standards.
n
10
SONOCO FOUNDATION
Social Responsibility
Contributions
OVERVIEW
A summary of all 2011 cash contributions in Sonoco
communities:
Sonoco believes that it has the inherent responsibility to help improve the
quality of life in the communities where it does business. In 2011, Sonoco
continued its strong support of communities, through the support of community partnerships, diversity, education and safety programs. The Sonoco
Foundation, Sonoco’s main conduit for corporate donations, contributed more
than $2 million to numerous nonprofit organizations.
The Company’s employees made a difference in their communities by contributing time, funds and talents to a variety of worthy causes, including serving
on boards, raising funds and participating in other civic-oriented projects.
n
Education
$1,360,840
n
Cultural and Civic
n
Social Welfare and Health
n
TOTAL CONTRIBUTIONS
423,984
308,776
$2,093,600
General policy and guidelines
The general target for Sonoco’s charitable
contributions is 1% of Company domestic pretax
profits. Charitable grants are made only to
organizations with tax-exempt status. Our priority is
to give to and support those communities in which
we operate. Special consideration is given to those
In the first year of its commitment to help modernize recycling services in its
hometown of Hartsville,
Sonoco Recycling saw a
two-fold increase in recycling volumes as businesses, schools and other
commercial institutions
significantly increased
their recycling activity.
Under a six-year program,
Sonoco Recycling is assisting the City of Hartsville in converting from
dual-stream curbside collection to an expanded single-stream process,
where all materials are collected in one container and then are sorted at
a Sonoco Recycling material recovery facility (MRF). Sonoco Recycling
also expanded the types of materials accepted for recycling and
assisted the city in purchasing 1,000, 95-gallon roll carts.
institutions which are supported by our employees
through their personal contributions of time and/or
money. Sonoco does not make grants to individuals
or organizations for religious or political purposes,
either for lobbying efforts or campaigns. Sonoco
generally does not make grants for educational
capital funds programs, endowment purposes, or
for trips or tours.
All requests for specific information
should be sent to:
Sonoco Foundation – A09
1 North Second Street
Hartsville, SC 29550
sonocofoundation.com
CASH CONTRIBUTIONS
IN SONOCO COMMUNITIES
2011
To further increase material recovery in Hartsville, additional roll carts
will be placed in the community in 2012-13 and efforts are underway to
increase recycling at local schools and colleges.
95
IN 2011, SONOCO CONTRIBUTED
$95,000 TO GLOBAL DISASTER RELIEF
IN THE UNITED STATES (ALABAMA AND
SOUTH CAROLINA), JAPAN, THAILAND
AND NEW ZEALAND.
Education
65%
Social Welfare
and Health
15%
Cultural and Civic
20%
11
Social Responsibility
As part of its ongoing commitment to employee health
and wellness, in late 2011 Sonoco opened a state-ofthe-art employee health center that gives employees
quick and easy access to medical assistance and
treatment while at work. The Sonoco Health
Connection is located on the Company’s Hartsville
campus and is open during regular business hours
Monday–Thursday, and from 7–11 a.m.
Friday. The new facility also houses a
limited-service pharmacy that can
provide an initial 30-day supply of the
most commonly prescribed drugs and
over-the-counter medications.
The Sonoco Health Connection is
operated by CHS Health Services, a
leading national workforce health management
company with more than 30 years of experience in
employee wellness.
SUPPLIER DIVERSITY SPENDING
RECORDABLE INJURIES
billions of dollars
289
300
01
02
03
04
05
06
07
08
09
10
105
96
108
150
140
171
184
182
192
199
236
225
11
75
11
154.0
123.5
40
7.7
03
78.0
8
120
80
90.0
06
81.5
16
7.5
10
09
$160
5.5
09
24
millions of dollars
percent of total company spend
5.7
08
9.7
07
9.8
06
10.1
9.8
age of 5.5% for similar-sized companies.
9.3
significantly surpassing the national aver-
9.2
its total spending to diverse businesses,
12%
63.7
Company also directed a record 8% of
32%
5.2
25.6
25.6
26.9% in its employment of women. The
25.4
25.3
In 2011, the Company attained a best ever
26.7
around employee and supplier diversity.
26.1
percent females
percent minorities
4.5
EMPLOYEE DIVERSITY
Sonoco takes great pride in its efforts
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07
08
09
10
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Human Rights Policy
In 2012, Sonoco renewed its strong commitment
to treating employees with respect and dignity by
updating our Human Rights policy, which reflects
the Company’s broader commitment to ethical
business practices. The updated policy includes
a new section addressing the California
Transparency in Supply Chains Act (CTSCA).
To view those policies, visit the Human Rights
or CTSCA pages on our website, under About Us/
Doing Business with Sonoco.
Sonoco 2011-2012 Corporate Responsibility Report
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Social Responsibility
Sonoco committed $5 million, over five years, to fund PULSE (Partners
for Unparalleled Local Scholastic Excellence), a first-of-its-kind publicprivate partnership in South Carolina that is expanding student development and curriculum opportunities through collaborative academic and
social development initiatives. The program is focused on schools in
Sonoco’s hometown of Hartsville, and involves Darlington County schools,
the South Carolina Governor’s School for Science and Mathematics
(GSSM), Coker College and Yale University’s Child Study Center.
The PULSE program kicked off in the 2011-12
school year and included the implementation
of Yale’s Comer School Development Program
(SDP) at four elementary schools in Hartsville
involving 1,400 elementary school students, along with teachers and
administrators. According to Dr. James P. Comer, Maurice Falk Professor
of Child Psychiatry at the Yale University School of Medicine, and
founder of the Comer School Development Program, Hartsville’s
implementation demonstrated “more community effort than maybe
anywhere we’ve ever been.” The program has been implemented in
more than 300 schools nationwide and in several foreign countries.
In addition, a total of 29 high school students completed Accelerated
Learning Opportunity college-credit courses in the first year of the
PULSE program. Courses included Mandarin Chinese I, AP Calculus and
voice programs at Coker College. Beginning in the next school year,
Mandarin Chinese II will be offered along with Advanced Chemistry,
Environmental Sciences at Hartsville High School and GSSM, and
additional courses in voice, modern dance and ballet at Coker College.
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TO COMPLEMENT THE COMER SDP, A MENTORING
PROGRAM INVOLVING 48 ADULTS FROM THE
COMMUNITY WAS DEVELOPED TO ASSIST
STUDENTS. EFFORTS WERE EXTENDED INTO THE
SUMMER THROUGH A NEW “FREEDOM SCHOOL”
PROGRAM HELD DURING THE SUMMER OF 2012
AT COKER COLLEGE. FREEDOM SCHOOL IS A SIXWEEK READING-BASED PROGRAM SERVING
STUDENTS FROM THE COMER SCHOOLS.
I returned to New Haven uplifted by all I saw and
learned about the first year of implementation of our
School Development Program model and framework
in the four pilot schools in Hartsville. Your vision and generous
support of Sonoco through the TEACH Foundation are making it
possible for children to receive the support for their development
that is critical to their success in school and in life.
Best wishes for continued success.
Cordially,
James P. Comer M.D.
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Sustainability Oversight
Corporate Sustainability Council
Employee and Public Responsibility Committee
Purpose
The purpose of the Sonoco Corporate Sustainability
Council is to provide oversight, guidance and direction on
social, community and environmental issues that have
potential impact on the reputation and long-term
economic viability of the Company and our stakeholders.
Through our actions, we contribute to the economic and
social well-being of our stakeholders.
Members
John E. Linville, Chairperson
James L. Coker
John R. Haley
Edgar H. Lawton III
Philippe R. Rollier
Sustainability sponsor
Harris DeLoach, Chairman and Chief Executive Officer
Sustainability Council
The council meets quarterly and reports to and is
sponsored by Sonoco’s chairman and CEO. The council
reports on Sonoco’s sustainability activities, biannually,
to the board of directors.
Council objectives
Identify and define those issues that are relevant to
Sonoco’s long-term sustainability and image as a good
corporate citizen
n Establish meaningful long-term and short-term
sustainability objectives related to key areas of focus and
provide Sonoco’s executive committee with meaningful
recommendations or guidance on how to meet those
objectives
n Recommend and establish new Company guidelines,
policies and processes to support areas of focus
n Create and communicate a business case for
corporate sustainability
n Provide recommendations for the Company’s
philanthropic efforts in support of overall corporate
sustainability objectives
n
Roger Schrum, Vice President, Investor Relations and Corporate Affairs, –Committee Chair
Gloria Bell, Staff Vice President, Internal Audit
Rodger Fuller, Vice President, Global Rigid Plastics and Corporate Customers
John Grups, Division Vice President, Primary Materials N.A.
Ray Howard, General Manager, Sonoco Recycling
Ron Leach, Vice President, Sonoco Protective Solutions
Allan McLeland, Vice President, Human Resources
Larry Pattengill, Director, Global Environmental Services
Marty Pignone, Vice President, Global Operating Excellence
Bob Puechl, Vice President, Global Flexibles
Laura Rowell, Manager, Global Sustainability, Consumer
Jeffrey Schuetz, Staff Vice President, Global Technology, Consumer
Marcy Thompson, Vice President, Rigid Paper N.A.
MEMBERSHIPS
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Board of Directors
Employee and Public Responsibility Committee
Purpose
The purpose of the Employee and Public Responsibility
Committee of the Board of Directors is to provide
oversight and guidance on social and public policy
issues, including compliance with governmental or other
regulatory requirements, which may impact business
performance and the investment potential of Sonoco.
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For more information on the Employee and Public
Responsibility Committee, visit the Corporate Governance section of Sonoco’s Investor Relations web page.
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Sonoco n 1 North Second Street
+843/383-7000 n sonoco.com
n
Hartsville, S.C. 29550-3305
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American Forest and Paper Association
AMERIPEN
Composite Can and Tube Institute
Environmental Education Association of S.C.
Forest Stewardship Council
Institute of Scrap Recycling Industries (ISRI)
National Association for PET Container Resources
National Association of Information Destruction
National Council for Air and Stream Improvement
National Minority Supplier Development Council
National Sustainability Coalition
Paper Stock Institute (Chapter of ISRI)
Program for the Endorsement of Forest Certification
Rainforest Alliance
Sedex
Solid Waste Association of North America
Southeastern Recycling Development Council
Southeastern Recycling Coalition
Sustainable Forestry Initiative
Sustainable Packaging Coalition
Walmart’s Packaging Sustainable Value Network
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