Sonoco corporate reSponSibility report

Transcription

Sonoco
Corporate
Responsibility
Report
sonoco 2012-13 corporate responsibility report
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Introduction
Letter to Stakeholders
Sonoco at a Glance
Financial Performance and Strategic Leadership
Commitment to Customers
Environmental Stewardship
Social Responsibility
Sustainability Oversight
Corporate responsibility statement of intent
Become the acknowledged packaging industry
leader in creating and enhancing a sustainable
future that benefits all of Sonoco’s stakeholders
through improvement of economic performance,
social responsibility and environmental stewardship.
Principles of corporate responsibility
and sustainable development
L Customer commitment
L Governance and integrity
L Financial performance
L Strategic leadership
L Environmental responsibility
L Employee health, safety and development
L Stakeholder engagement and communication
L Community support and philanthropy
About this report
Sonoco used the Global Reporting Initiative (GRI)
G3 Guidelines to define the content of our 2012-13
Corporate Responsibility Report. These guidelines form
a voluntary framework of principles and indicators that
are used to measure and report economic, environmental and social performance. They also provide a standard
of comparison among Sonoco and our peers.
Additionally, we carefully considered projects we completed in the second half of 2012 and the first half of
2013, and how those projects relate to our customers,
shareholders, employees, suppliers and the communities
in which we operate. We hope you will read this report
alongside our GRI Content Index on pages 16-31.
In 2012, Sonoco was listed in the Dow Jones
Sustainability World Index for the fourth consecutive
year. Thus, we have used the Corporate Sustainability
Assessment developed by RobecoSAM to determine
materiality. This year’s report repeats the format and
metrics used in previous responsibility reports to provide
stakeholders with easy, understandable communication
of the Company’s progress of corporate responsibility.
In 2012, we successfully integrated the largest acquisition
in our Company’s history following the November 2011
purchase of Tegrant Holding Corp. This acquisition
added $462 million to Sonoco’s sales. The information
contained in the Economic Performance section of this
report includes Tegrant, but we have not yet integrated
Tegrant’s performance into our Environmental and
Social metrics.
Environmental metrics in this report have been gathered
from all global manufacturing locations, excluding certain warehouses, small office structures and facilities
obtained through the Tegrant acquisition. Water usage
includes only what is used in global paper operations,
which we estimate to be approximately 90% of our total
usage.
S o n o c o 2 01 2-1 3 c o r p o r at e r e s p o n s i b i l i t y R e p o r t
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to sonoco stakeholders
On behalf of our nearly 20,000 teammates around
the world, I’m pleased to share with you Sonoco’s
2012-13 Corporate Responsibility Report. As only the
eighth CEO in Sonoco’s 114-year history, I take
seriously our commitment to operate with integrity
while creating a sustainable future for all of our
stakeholders through improvement of economic
performance, social responsibility and environmental
stewardship.
M. Jack Sanders, President and
Chief Executive Officer
Stakeholder engagement and communication
Communicate openly and engage directly with internal
and external stakeholders to achieve a strong, secure and
sustainable society, economy and environment
l
Principles of corporate responsibility
and sustainable development
To better focus our efforts, we have adopted eight
guiding Principles of Corporate Responsibility and
Sustainable Development. They include:
Customer commitment
Focus relentlessly on providing high-quality, innovative,
value-creating packaging solutions that Satisfy the
Customer
l
Governance and integrity
Maintain strong corporate governance and human
rights programs through the highest level of compliance,
ethics, integrity and accountability
l
Financial performance
Achieve average annual double-digit total return to
shareholders and return on capital and equity in the top
quartile of the S&P 500
l
Strategic leadership
Take advantage of emerging global opportunities, development and challenges to position Sonoco for the future
l
Environmental responsibility
Conduct our business in accordance with all legal
requirements and ethical responsibilities using
scientific knowledge, technical innovation and
sound environmental practices. Achieve continuous
environmental performance improvement and energy
efficiency in our operations
l
Employee health, safety and development
Provide opportunities that allow employees to develop
to their fullest potential in a creative, inclusive, safe and
healthy environment
l
Community support and philanthropy
Improve the quality of life in the communities where
we operate through partnerships focused on community
development, improving education, social welfare, health
and culture
l
These guiding principles are linked directly with
Sonoco’s business strategies which we communicate and
reinforce with our employees, shareholders, customers,
vendors and to our neighbors in the communities where
we operate. Our commitments to further improve on
these principles are listed on page 3.
Focus on environmental stewardship
2012-13 has been an important transitional period
for Sonoco in achieving our commitment to reduce the
Company’s environmental footprint. Over the past year,
we reduced normalized direct (Scope 1) greenhouse gas
(GHG) emissions by 9.8% from our facilities as we used
more natural gas to fuel our boilers versus highercarbon-content coal. During 2012, we started up a new
natural gas boiler to produce steam for our Hartsville,
S.C., paperboard mill complex and, in turn, reduced
coal usage.
We expect to meet our five-year, 15% carbon emission
reduction goal by the end of 2014 with the start up of
a new $75 million biomass cogeneration system at our
Hartsville complex in November 2013. Powered by
wood waste from regional logging activity, the new
cogeneration system will produce low-cost ‘green’ energy
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t o s o ncommitment
oco stakeholders
sonoco’s
and steam for our paperboard mills, again replacing
inefficient coal boilers. In addition, we are improving the
performance of a flex-fuel boiler operation in the
Hartsville complex, which allows us to use more mill
scrap as fuel, thus diverting those wastes from landfills.
Supplier Sustainability
To encourage development of sustainability efforts
outside our scope, Sonoco recently christened a new
Supplier Sustainability Awards program to recognize
vendors that demonstrate leadership in developing
and measuring their environmental and corporate
responsibility efforts. First-year recipients were Arcelor
Mittal, Buckman International, Staples and W.R. Grace.
I want to thank all of our suppliers who are working to
improve their sustainability efforts.
In conclusion, let me thank you for taking time to read
our report. If you would like to extend a dialogue with
the Company on issues of sustainability, you may contact
us at [email protected].
Sincerely,
M. Jack Sanders
President and Chief Executive Officer
sonoco’s commitment
We are committed to reducing the environmental footprint of our global operations.
We have reduced normalized GHG emissions by 8.2%
since 2009, moving toward our five-year carbon emission
reduction goal of 15% by the end of 2014.
l
Landfill waste from Company facilities was reduced by
nearly 12,000 metric tons in 2012 and 31 company plants
reached landfill-free status by diverting 95% or more of its
wastes from landfills.
l
Normalized water usage by our global manufacturing
operations has been reduced 5.6% since 2009.
l
We are committed to providing innovative
packaging and recycling solutions to meet
our customers’ sustainability goals.
Sonoco Recycling reduced wastes from our U.S. packaging
customers’ operations by nearly 44,000 metric tons in 2012
and helped seven customer plants achieve landfill-free status.
l
Sonoco’s Flexible Packaging business designed and
printed an award-winning, stand-up pouch used by LEGO’s
Hero Factory toys that resulted in a 75% weight reduction
from its previous packaging.
l
Sonoco Alcore, our European affiliate, and the Alliance for
Beverage Cartons and the Environment (ACE) UK opened a
recycling facility at our Stainland, West Yorkshire, paperboard
mill that is able to take up to 25,000 metric tons of UK paper
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cartons along with an estimated 3,000 metric tons of paper
coffee cups from London’s Heathrow Airport to be converted
into uncoated recycled paperboard.
We are committed to providing a safe and
healthy workplace for our employees and
supporting the communities where we operate.
l Sonoco provides its employees with coverage of health
assessments, preventive screenings, a 24-hour NurseLine,
health coaching and other wellness services, including an
on-site clinic for its employees at the Company’s Hartsville,
S.C., manufacturing complex.
Sonoco teamed with four Hartsville elementary schools to
start a Scoutreach afterschool program to teach young boys
the precepts to become better citizens by building character,
developing strong values and accepting responsibility.
l
We are committed to strong governance
practices and ongoing engagement with our
stakeholders.
l In 2012, all Sonoco directors, officers, employees and
vendors reaffirmed adoption of stringent Corporate Governance Guidelines and Code of Business Conduct and Ethics.
Sonoco’s Board intends to regularly seek input from
shareholders regarding executive compensation, including
annual advisory votes on “Say on Pay” regarding directional
input on compensation decisions.
l
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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.
display and
packaging
Consumer
Packaging
Products and Services: Round
composite cans, shaped rigid paperboard
containers, fiber caulk/adhesive tubes;
aluminum, steel and peelable membrane
easy-open closures for composite and
metal cans; plastic bottles, jars, jugs, cups
and trays; printed flexible packaging,
rotogravure cylinder engraving, global
brand management
Markets: Snacks, nuts, cookies, crackers,
hard-baked goods, desserts, candy, gum,
frozen concentrate, powdered and liquid
beverages, non-carbonated beverages,
ready-to-drink products, powdered infant
formula, coffee, refrigerated dough,
frozen entrees, processed food, vegetables,
fruit, seafood, poultry, soup, pasta, dairy,
sauces, dips, fresh-cut produce, pet food,
home and personal care, adhesives
Products and Services: Point-ofpurchase displays, custom packaging;
fulfillment, primary package filling,
supply chain management; paperboard
specialties
Markets: Automotive, beverages, candy,
electronics, personal care, baby care,
food, cosmetics, fragrances, hosiery,
office supplies, toys, home and garden,
medical, over-the-counter drugs,
sporting goods, hospitality industry,
advertising
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sonoco at a glance
With annualized net sales of approximately $4.8 billion, Sonoco has approximately 19,900 employees
working in 347 operations in 34 countries, serving many of the world’s best-known brands in some 85 nations.
protective
solutions
paper
and
industrial
converted
Products and Services: Recycled
paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard,
corrugating medium, specialty grades;
paperboard tubes and cores, concrete
forms, pallets, molded plugs, reels;
collection, processing and recycling
of old corrugated containers, paper,
plastics, metal, glass and other recyclable
materials
Markets: Converted paperboard
products, spiral winders, beverage
insulators, construction, film, flowable
products, metal, paper mill, shipping
and storage, tape and label, textiles,
wire and cable, municipal, residential,
customers’ manufacturing and
distribution facilities
Products and Services: Highly
engineered, custom-designed protective,
temperature-assurance and retail
security packaging solutions
Markets: Consumer electronics,
automotive, appliances, medical devices,
temperature-sensitive pharmaceuticals
and food, heating and air conditioning,
office furnishings, fitness equipment,
promotional and palletized distribution
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11
12
4.79
10
4.12
09
3.60
billions
of dollars
4.12
NET SALES
08
4.50
financial performance and strategic leadership
overview
2012 was an important year in the continuing
$4.8
transformation of Sonoco into a global total solutions
3.6
provider of consumer, industrial and protective
2.4
packaging and services. We successfully integrated
1.2
the largest acquisition in our Company’s history
following the November 2011 purchase of Tegrant
12
196.0
11
217.5
10
201.1
09
151.5
millions
of dollars
164.6
NET INCOME
ATTRIBUTABLE
TO SONOCO
08
Holding Corp., which made Sonoco the leading
$220
165
110
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solutions in North America. The acquisition helped us
achieve record sales in 2012, along with record gross
profits, while base EBIT (earnings before interest and
taxes) grew by 2.4%. In addition, free cash flow
(cash from operations minus net capital expenditures
12
1.91
10
2.13
09
1.50
dollars
1.63
EARNINGS
PER SHARE
08
1.96
55
provider of custom engineered protective packaging
and dividends) grew to $101.2 million, compared
$2.20
with a negative $31.9 million last year.
1.65
1.10
09
10
11
12
1.11
1.15
1.19
dollars
per share
08
1.08
CASH DIVIDENDS
PAID TO
SHAREHOLDERS
1.07
.55
$1.20
.90
.60
.30
Governance
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. Sonoco’s
Board of Directors annually evaluates itself through the use of
questionnaires and interviews
with members of the Corporate
Governance and Nominating
Committee to drive participation
and effectiveness.
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. Sonoco’s Human Rights
Policy emphasizes our commitment to ethical business conduct,
equal opportunity, protection of
workers’ rights, including the
rights of children.
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financial performance and strategic leadership
As South Carolina’s
largest company,
Sonoco annually
contributes more
than $1 billion to
the state’s economy,
creating nearly 9,300
jobs and generating
more than
$473 million in
income for residents,
according to a study
released in March by
the Division of
Research at the
University of South
Carolina’s Darla
Moore School of
Business. In addition,
Sonoco’s $1 billion
annual economic
impact contributes
nearly $35 million to
state tax revenue
each year, and for
every 10 jobs created
by Sonoco, an
additional nine
jobs are created
elsewhere in the
state.
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commitment to customers
As the world’s largest producer of
composite cans, Sonoco helped
Melitta USA, which roasts premium
European-style coffee, move from
traditional metal cans to 90% recycled, 80% post-consumer rigid paperboard composite cans that deliver a
reduced environmental footprint.
Composite cans such as Melitta’s are
not only made from recycled paperboard, but are also gaining acceptance in the recycling
stream. In 2012, Sonoco Recycling invested $4 million
in its Columbia, S.C., materials recovery facility (MRF),
allowing the facility to accept additional types of materials. Because of this, residents can recycle composite
cans, as well as glass, magazines and other types of
plastics. With this upgrade, Sonoco can now recycle
even more of the packaging it produces, further demonstrating the Company’s commitment to sustainable
business practices.
overview
We have made a commitment to satisfy our
customers since we were founded in 1899. From
continually improving shelf impact, to supply-chain
management and protection, to point-of-purchase
displays and recycling, providing solutions for our
customers’ needs remains central to our sustained
success.
In 2012, we adopted Net Promoter® Score (NPS),
an on-going customer feedback process to optimize
the customer product and service experience. Already
in use in three of our business units, NPS 360 is being
adopted worldwide and expected to be implemented
in all businesses over the next two-to-three years.
Sonoco Alcore and the Alliance for
Beverage Cartons and the Environment
(ACE) UK have opened a beverage
recycling facility in Stainland, West
Yorkshire. When the facility reaches full
capacity in July, it will be the first time in
seven years that the United Kingdom has
had a place to recycle its beverage cartons.
The new facility can recycle 25,000 tons
of cartons, almost a third of the
approximately 60,000 tons of paper-based
cartons used in the UK each year. In
addition to municipal recycling, Heathrow
Airport, which generates around 110,000
tons of waste per year, 2.5% of which is
coffee cups, is looking to recycle at the
beverage recycling plant as well.
Sonoco Alcore will use the paperboard
layers from the recycled cartons to produce
coreboard, used to make tubes and cores
for consumer and industrial applications,
such as plastic film, textiles and paper.
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commitment to customers
awards and ACCOLADEs
Sonoco’s Flexible Packaging business
designs and manufactures the flexible
stand-up pouches used to package LEGO’s
Hero Factory toys at our Poland facility.
This conversion from plastic and paperboard packaging resulted in a minimum
75% weight reduction of the various package sizes offered. Listed as one of only three global packaging
companies in the Dow Jones Sustainability World
Index for 2012/13. This was Sonoco’s fourth
consecutive listing.
Sonoco’s patented,
Ranked by Sustainability Asset Management
(SAM) as Gold Class winner and Sector Leader
in the packaging category in its 2012 and 2013
Sustainability Yearbook.
anti-microbial
cupstock is made
from 100% recycled
fiber and up to 35%
post-consumer fiber,
that is also FSC
Named one of the 25 Top Companies for Leaders
in North America by Aon Hewitt, The RBL Group
and Fortune magazine for a fourth time.
chain-of-custody certified. The U.S. Environmental
Protection Agency calculates that use of recycled instead
of virgin fiber reduces greenhouse gas (GHG) emissions by
2012
0.8 metric tons for each short ton produced.
Ranked as the one of the greenest
large companies in the U.S.
in Newsweek’s 2012 Green
Rankings.
Ecotect® tan bending chip, primarily
sold to manufacturers of folding cartons, is
produced from 100% recycled paper with
a minimum of 80% post-consumer content.
FlatStack® slip sheets can replace
corrugated sheets used for separating
stacks of product on a pallet. FlatStack
sheets are made from 100% recycled
fiber, minimum 85% post-consumer and
are recyclable. Five FlatStack sheets can
be stored and transported in the space
used for one corrugated sheet, allowing in-bound trucks to
ship twice the amount of slip sheets per truckload, reducing
in-bound shipments by 50%. Named the top ranked packaging
company in the 2012 Top 100
Corporate Citizens by Corporate
Responsibility magazine.
Named one of 2013’s Most Admired Companies
by Fortune magazine.
Named a Platinum Fit-Friendly Company by the
American Heart Association.
Listed as the top ranked company in South
Carolina for Excellence in Sustainability by the
Southeastern Corporate Sustainability Rankings
developed by Green Business WORKS.
Sonoco’s radial crush recycled paper stock eliminates
almost 20% of paper from film cores.
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environmenta l stewardship
environmental policy
overview
Sonoco takes seriously our responsibility to
Climate change, resource scarcity and declining water
protect the environment in which we work and live,
availability are global challenges that affect us all.
and will conduct its business in accordance with
all legal requirements and ethical responsibilities,
Sonoco is committed to proactively responding
using scientific knowledge, technical innovation
to them in a way that’s good for our customers, our
and sound environmental management practices.
employees, our business and the world.
l We will be sensitive to environmental issues
throughout our business systems, including our
To that end, Sonoco is shrinking the environmental
selection of materials, processes and products.
footprint of our 347 manufacturing plants in 34
We will utilize appropriate monitoring techniques
countries by reducing energy consumption, greenhouse
to ensure adherence to accepted standards.
gasses and other air emissions, water usage and
l We will conduct operations in full compliance
wastes going to landfills. In 2012 and 2013 we
with applicable environmental laws and
made great strides toward our sustainability goals.
regulations. In those areas of the world where
We reduced energy use by 1%, continued construction
such requirements are at a minimum, we will
operate in a completely responsible manner.
l 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
of our biomass cogeneration system in Hartsville,
and recognized 31 Sonoco facilities that achieved
milestones in landfill diversion and waste stream
reduction through our Sonoco Sustainability Star
Awards program.
manufacture and use.
l We will minimize the generation of discharges
to the environment, including air emissions,
wastewater and solid waste.
l We will support the development of scientific
knowledge relating to environmental matters
and implement appropriate new technologies to
improve our environmental performance.
l We will proactively assist our customers in
addressing environmental issues related to their
use of our products.
l We will communicate openly with our stake-
holders concerning our environmental record.
l We will cooperate with public and
governmental organizations to seek responsible
solutions to environmental needs and to develop
effective and balanced environmental standards.
2013 was a transition
year for Sonoco as we
increased use of natural
gas and reduced coal usage
in our boilers. The Company’s efforts to move
from traditional coal fuel
to a combination of natural
gas and biomass in late
2013 is expected to
significantly reduce
greenhouse gases (GHGs).
Natural gas is used to
produce steam, and the
new biomass cogeneration
system will produce both
steam and electricity, all
of which will be used in
Sonoco’s Hartsville
manufacturing complex.
A truck dumps the first load of biomass fuel
onto a chip pile located at Sonoco’s
Hartsville, S.C., complex. The Company’s
$75 million biomass cogeneration system is
expected to be operational November 2013.
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Sonoco’s approach
to climate change
environmenta l stewardship
Sonoco recognizes our responsibility to
address the challenges of global climate
change. We are committed to measuring
and reporting our greenhouse gas (GHG)
emissions, energy and water consumption
and waste generation in our operations
around the world. We are meeting our
responsibility by developing innovative new
processes, and by identifying and managing risks and opportunities to our raw
materials inputs, operations, employees,
suppliers, customers and products.
The Company has committed to taking 10% of
its global manufacturing operations landfill free
(95% or more waste diverted from
landfills) by 2015. As of June 2013,
Sonoco has a total of 31 plants, or 8.9% of
its global operations, diverting 95% or more from
landfills. Six of those 31 plants are sending less
than 1% to landfills.
In April 2012, Sonoco’s Hartsville Campus Sustainability Team ran a
one-time, voluntary trash can trade-in program as part of its Earth
Day events. More than 130 employees turned in their trash cans,
which were then donated to local elementary schools to be used as
recycling bins. This spring, the entire Hartsville campus went trashcan free, replacing employees’ individual trash cans with larger
recycling bins and a much smaller waste receptacle that is emptied
by the employee, reducing maintenance labor and eliminating the
cost of individual trash can liners for offices.
Establishing 2009 as our baseline year,
Sonoco is committed to reducing GHG
emissions by 15% from our global
manufacturing facilities by the end of 2014.
To meet our goal, we are reducing energy
usage at our uncoated recycling paperboard mills by maximizing energy efficiency
through targeted investments and
initiatives. Additionally, we are focusing on
further reducing overall energy use, other
air emissions, water usage and landfill
wastes, and encouraging our vendors,
partners and contractors to do the same.
key environmental metrics
Key Metrics
Unit Total Energy Usage MMBtu % Improved 2012 2011
0.98 15,700,414
15,855,000
Energy Usage (normalized)* MMBtu/mtonnes 1.02
3.471
3.507
Total Greenhouse Gas Emissions (GHG) mtonnes CO2e 3.19 1,309,144
1,352,299
Direct Emissions (Scope 1) (normalized)
mtonnes CO2/mtonnes
9.79
0.147
0.163
Indirect Emissions (Scope 2) (normalized) mtonnes CO2/mtonnes
(3.01)
0.142
0.138
Total GHG Emissions (normalized)*
mtonnes CO2e/mtonnes 3.93
0.289
0.301
Total Landfill Disposed mtonnes 6.95 160,006
171,953
Landfill Disposed (normalized)*
mtonnes/mtonnes 5.93 0.035
0.038
Total Water Usage
m3 (2.65) 29,743,173
28,974,137
Water Usage (normalized)*
m3/mtonnes (1.86)
6.575
6.455
Shipped Production mtonnes 0.77
4,523,568
4,488,897
*Historical data referenced in this report has been adjusted to reflect changes in business structure and improvement in data collection and accuracy, and so may differ from previous reports.
11
social responsibility
overview
Sonoco believes that we have an inherent
responsibility to help improve the quality of life in the
communities in which we serve. Sonoco continues
our strong support of communities through
Sonoco’s greatest asset is our people, so the
Company does everything it can to take care of its
employees, both short- and long-term. Sonoco
provides 100% coverage of preventive screenings,
health assessments, a 24-hour NurseLine, paid time
off for preventive services, health coaching and
numerous health improvement programs. Participation in these activities is incentivized and rewards
can be used to reduce medical plan out-of-pocket
expenses. The Hartsville location also provides an
on-site employee health clinic staffed by a nurse
practitioner, RN health coach and medical assistant.
partnerships, diversity, education and safety
programs. The Sonoco Foundation, Sonoco’s
philanthropic arm, donated more than $2.5 million to
nonprofit organizations around the world in 2012.
The Company’s employees also donated, contributing
time, funds and talents to a multitude of worthy
causes, including volunteering, serving on boards,
raising funds and participating in other civic-oriented
projects.
Preventive, acute care, full lab services and limited
prescriptions are readily available to active
employees. A full-time wellness coordinator provides
resources to all locations, wellness program
development and activity coordination.
02
05
06
07
08
09
10
11
12
.44*
.47
1.0
.44
.63
.75
.85
1.5
.55
2
Benchmark median percent spend with diverse suppliers.
04
2.0
4
03
.84
6
recordable
injury rate
01
.98
8%
00
1.03
7.9
SAFETY
PERFORMANCE
1.19
12
1.49
11
1.99
10
7.7
percentage of total
company spending
09
5.5
SUPPLIER
DIVERSITY
SPENDING
7.5
Arranged by Sonoco, these 12 students from the
South Carolina Governor’s School for Science and
Mathematics, based in Sonoco’s hometown of
Hartsville, S.C., visited and toured the New York Stock
Exchange in December 2012 as a part of a three-week
interim class called Tech Trek. The students visited
with researchers, entrepreneurs, venture capitalists
and investment bankers in Boston and New York to
learn the process of building technology-based
businesses.
.5
*Does not include incidents occuring at Tegrant facilities, which will be recorded in 2013.
12
Sonoco is participating in the Community Foundation for a Better
Hartsville, a nonprofit public benefit corporation that comprises a
cross-section of institutional and community partners working to
further local community improvement projects.
The Foundation facilitated the generous donation of 24 acres of
land from Pacolet Milliken Enterprises for its ongoing community
revitalization efforts. The land was donated in a historic mill village,
and includes 34 residential lots and 17 acres of undeveloped
land, which will be used to further the neighborhood’s
renaissance. The properties will be
used to develop a community park
and garden, provide green space,
add security and attract new homeowners to the area. A portion of the
land will go to the adjoining South Carolina Governor’s School for
Science and Mathematics for future expansion.
The Foundation also began a 12-month project to expand and
update “Hartsville 2020 Vision” and create a visual framework
for the continued development of the city. This master planning
project is intended to help synthesize existing research and planning documents with new data, citizen opinions and professional
design expertise to offer a coherent vision, strategy and action
steps to guide development in Hartsville for the next 20 years.
In 2012, Sonoco contributed $60,000 to disaster relief
through the Red Cross, $35,000 locally and $25,000 for
Hurricane Sandy relief. Sonoco was also quick to respond
in 2013 with a $20,000 donation for local fire relief and a
$25,000 donation within 24 hours of the devastating
sonoco foundation
Sonoco views our philanthropic and
business endeavors as investments
to improve the quality of life in
communities where the Company has
operations.
The Sonoco Foundation, Sonoco’s
principal conduit for corporate
contributions, is responsive to human
needs through its support of quality
projects and programs within the areas
it supports.
The Foundation’s grant program focuses
on education, health and wellness, arts
and culture, and the environment. The
primary focus of these corporate
contributions is to support institutions
with a local, rather than a national or
international, perspective.
All requests for specific information
should be sent to:
Sonoco Foundation – A09
1 North Second Street
Hartsville, SC 29550
www.sonocofoundation.com
Oklahoma tornados.
Unveiled in May 2013, the Sonoco Supplier Sustainability
Award program recognizes suppliers who demonstrate
clear differentiation from their competitors with
measurable, strategic and transparent social and
environmental responsibility efforts. First-year recipients
Arcelor Mittal, Buckman International, Staples and W.R.
Grace showed definitive leadership in various categories such
as water, energy, emission and waste disposal reduction goals;
environmental policies; social responsibility reports; and
codes of conduct.
2012 CASH
CONTRIBUTIONS
IN SONOCO
COMMUNITIES
13
Memberships and groups
l American Forest and Paper Association
l AMERIPEN
l Composite Can and Tube Institute
l Ecodesk
l EcoVadis
l Environmental Education Association of S.C.
l EPS Industry Alliance
l Flexible Packaging Association
l Forest Stewardship Council® (FSC®)
l Institute of Scrap Recycling Industries (ISRI)
l Material Handling Institute (MHI)
l National Association of Information Destruction
l National Council for Air and Stream Improvement
l National Minority Supplier Development Council
l National Sustainability Coalition
l Paper Stock Institute (Chapter of ISRI)
l Programme for the Endorsement of Forest
Certification (PEFC)
l Sedex
l Solid Waste Association of North America
l Southeastern Recycling Coalition
More than 50 students at four Hartsville, S.C.,
elementary schools are learning life skills through
the Scoutreach program, which began in 2012 and
is funded by Sonoco. Scoutreach, a division of the
Boy Scouts of America, focuses on urban and rural
participation. Activities teach boys the integral
precepts necessary to become better leaders and
citizens: building character, developing values and
accepting responsibility. Sonoco’s support covers
all expenses, including uniforms, activities and
transportation.
12
27.2
26.7
26.4
11
32
10.1
24
9.7
25.4
10
10.0
25.6
09
9.8
percent
08
8.9
EMPLOYEE
DIVERSITY
16
8
Women
Minorities
l Southeastern Recycling Development Council
l Sustainable Forestry Initiative® (SFI®)
l Sustainable Packaging Coalition
l Walmart’s Packaging Sustainable Value Network
Sonoco has committed $5 million over five years to fund
Partners for Unparalleled Local Scholastic Excellence
(PULSE), a first-of-its-kind public-private 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,
S.C., and involves Darlington County schools, the South
Carolina Governor’s School for Science and Mathematics,
Coker College and Yale University’s Child Study Center.
Four elementary schools in Hartsville—Southside Early
Childhood Center, Thornwell School for the Arts,
Washington Street and West Hartsville—are the first
schools to use Basecamp, a web-based project management tool used to promote collaboration and
communication within and across the four schools.
Basecamp helps manage grant writing and communications, and serves as an online archive for professional
development materials, articles and other resources.
14
sustainability oversight
Corporate Sustainability Council
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.
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.
The council, which meets quarterly, reports to and is
sponsored by Sonoco’s president and CEO. The Council
reports on Sonoco’s sustainability activities, biannually,
to the Board of Directors.
For more information on the Employee and Public
Responsibility Committee, visit http://phx.corporateir.net/phoenix.zhtml?c= 82014&p=irol-govhighlights.
Objectives
lIdentify and define those issues that are relevant to
Sonoco’s long-term sustainability and image as a good
corporate citizen
lEstablish meaningful long-term and short-term sustainability objectives related to key areas of focus and
provide Sonoco’s executive committee with recommendations or guidance on how to meet those objectives
lRecommend and establish new Company guidelines,
policies and processes to support areas of focus
lCreate and communicate a business case for corporate
sustainability
lProvide recommendations for the Company’s philanthropic efforts in support of overall corporate sustainability objectives
Sonoco l 1 North Second Street
+843/383-7000 l sonoco.com
l
Members
John E. Linville, Chair
John R. Haley
Edgar H. Lawton III
Philippe R. Rollier
Sustainability sponsor
M. Jack Sanders, President and Chief Executive Officer
Sustainability Council
l Roger Schrum, Vice President, Investor Relations and Corporate
Affairs – Committee Chair
l Gloria Bell, Staff Vice President, Internal Audit
l Rodger Fuller, Group Vice President, Paper and Industrial
Converted NA
l Ray Howard, General Manager, Sonoco Recycling
l Jim Lassiter, Staff Vice President, Global Operating Excellence
l Allan McLeland, Vice President, Human Resources
l Larry Pattengill, Director, Global Environmental Services
l Marty Pignone, Vice President, Paper NA
l Bob Puechl, Vice President, Global Flexibles
l Laura Rowell, Manager, Global Sustainability, Consumer
l Jeffrey Schuetz, Staff Vice President, Global Technology, Consumer
l Marcy Thompson, Vice President, Marketing and Innovation
Hartsville, S.C. 29550-3305
15
G3 content index
Application Level C
Standard Disclosures Part 1: Profile Disclosures
1. Strategy and Analysis
Profile disclosure
Description
Reported
Cross-reference/Direct answer
1.1Statement from the most senior decision-makerFully
2012-13 Sonoco Corporate Responsibility Report (CRR),
of the organizationLetter from the CEO (page 2)
2. Organizational Profile
Profile disclosure
Description
Reported
2.1Name of the organizationFullySonoco 2012 Annual Report (AR), Form 10-K (page 1)
2.2Primary brands, products, and/or services FullyAR, Sonoco at a Glance
2.3Operational structure of the organization, including FullyAR, Sonoco at a Glance
main divisions, operating companies, subsidiaries,
and joint ventures.
2.4
Location of organization’s headquarters
Fully
AR, Form 10-K (page 4)
2.5Number of countries where the organization FullyGRI Appendix 1
operates, and names of countries with either major
operations or that are specifically relevant to the
sustainability issues covered in the report
2.6Nature of ownership and legal formFullySonoco is a publicly owned C Corporation incorporated under
the laws of South Carolina, with stock traded on the New York Stock Exchange under the symbol SON (NYSE:SON). 2.7
Markets served (including geographic breakdown, FullyAR, Sonoco at a Glance
sectors served, and types of customers/
beneficiaries)
2.8Scale of the reporting organizationFullyAR, Sonoco at a Glance
AR, Financial Highlights (page 1)
2.9
Significant changes during the reporting period Fully
AR, Form 10-K, Acquisitions (page F8), Restructuring and asset regarding size, structure, or ownership
impairment charges (page F8)
2.10Awards received in the reporting periodFullyCRR, Awards and Accolades (page 9)
3. Report Parameters
Profile disclosure
Description
Reported
3.1
Reporting period (e.g., fiscal/calendar year) for Fully
AR, Form 10-K, Notes to the Consolidated Financial information providedStatements, Note 1 (page F6)
3.2Date of most recent previous report (if any)FullyAR: March 2013
CRR: July 2012
16
3. Report Parameters (continued)
Profile disclosure
Description
Reported
3.3
Reporting cycle (annual, biennial, etc.)
Fully
Both Sonco’s Annual Report and Corporate Responsibility
Report are published on an annual basis.
3.4
Contact point for questions regarding the report or Fully
Roger P. Schrum, VP, Investor Relations and Corporate Affairs
its contents.
3.5
Process for defining report content.
Fully
CRR, About This Report (page 1)
3.6Boundary of the report (e.g., countries, divisions, FullyCRR, About This Report (page 1)
subsidiaries, leased facilities, joint ventures,
suppliers).
3.7
State any specific limitations on the scope or Fully
boundary of the report (see completeness principle for explanation of scope)Labor Practices & Decent Work and Human Rights
Performance Indicator numbers, rates and percentages have been gathered from all United States and Canadian locations.
3.8Basis for reporting on joint ventures, subsidiaries, FullyCRR, About This Report (page 1)
leased facilities, outsourced operations, and other
entities that can significantly affect comparability
from period to period and/or between organizations
3.10Explanation of the effect of any re-statements of FullyCRR, About This Report (page 1)
information provided in earlier reports, and the
reasons for such re-statement (e.g.,mergers/
acquisitions, change of base years/periods, nature
of business, measurement methods).
3.11
Significant changes from previous reporting periods Fully
in the scope, boundary, or measurement methods
applied in the report
3.12Table identifying the location of the Standard FullyCRR, About This Report (page 1)
Disclosures in the report
4. Governance, Commitments and Engagement
Profile disclosure
Description
Reported
4.1Governance structure of the organization, including Fully
2013 Proxy, Leadership Structure (page 13), Board Meetings
committees under the highest governance body and Committees of the Board (page 15, 16)
responsible for specific tasks, such as setting strategy or organizational oversightAR, Board of Directors (page 20, 21)
AR, Form 10-K, Item 10. Directors, executive officers and
corporate governance (page 34)
CRR, Sustainability Oversight (page 15)
4.2Indicate whether the Chair of the highest Fully
2013 Proxy, Leadership Structure (page 13)
governance body is also an executive officer
AR, Board of Directors (page 21)
17
4. Governance, Commitments and Engagement (continued)
Profile disclosure
Description
Reported
4.3
For organizations that have a unitary board Partially
Sonoco’s Board of Directors has a Tiered Structure.
structure, state the number of members of the
highest governance body that are independent
and/or non-executive members
4.4
Mechanisms for shareholders and employees to Partially
2013 Proxy, Communications with the Board of Directors
provide recommendations or direction to the
(page 14, 15)
highest governance body Employees may make recommendations (anonymously)
through the Company’s Sonofone telephonic suggestion box. Recommendations and questions are reviewed and responses developed by the highest-level executive responsible for the issue raised by the employee. Also, the Company employs a
third-party service called The Network where employees can
provide anonymous information regarding any illegal or
unethical activity. These reports are investigated by the Company’s Director of Internal Audit and results are shared with the Board of Director’s Audit Committee for final disposition.
4.14
List of stakeholder groups engaged by the Fully
Sonoco has identified our stakeholders to include investors
organization. in the Company’s common stock and debt, employees, customers, suppliers, industry organizations, regulatory and
other government agencies, the media and the communities
in which we operate. 4.15
Basis for identification and selection of Fully
As a global packaging company with operations in 34 countries,
stakeholders with whom to engage. Sonoco must continually monitor and address our many stake-
holders’ most critical issues. Each year, we identify areas in which the Company could have the greatest impact based on issues and opportunities in our operations and communities. This in turn helps us determine our stakeholders of focus.
In 2012, our stakeholder engagement practices were focused
on employees and our investors following the November 2011 acquisition of Tegrant Corp. In addition, we surveyed
employees’ satisfaction, our analysts’ confidence in our
2013 strategy and community matters in the neighborhoods
surrounding our Hartsville, S.C., U.S., headquarters. 18
G3 content index
Application Level C
Standard Disclosures Part 3: Performance Indicators
Economic
Performance Description
indicator
Reported
Economic performance
EC1Direct economic value generated and distributed, FullyCRR, Financial Performance and Strategic Leadership
including revenues, operating costs, employee (page 7)
compensation, donations and other community investments, retained earnings, and payments to AR, Form 10-K
capital providers and governmentsConsolidated Statements of Income (page F3)
Consolidated Balance Sheets (page F2)
Item 6. Selected financial data (page 15)
EC2
Financial implications and other risks and opportunities Partially
CRR, Sonoco’s Approach to Climate Change (page 11)
for the organization’s activities due to climate change. EC3
Coverage of the organization’s defined benefit plan Fully
2013 Proxy
obligations Sonoco Pension Plan (page 47)
EC4
Significant financial assistance received from Fully
No significant financial assistance was received in 2012
government Market presence
EC6Policy, practices, and proportion of spending on locally-NotInformation is not available
based suppliers at significant locations of operation
EC7
Procedures for local hiring and proportion of senior
Partially
Sonoco’s Employee Referral Program (ERP) encourages
management hired from the local community at
Sonoco employees to help find talented applicants.
significant locations of operation
Sonoco’s ERP provides a quick, easy and financially rewarding process for employees to refer qualified candidates for vacant positions.
19
Economic (continued)
indicator
Reported
Indirect economic impacts
EC8Development and impact of infrastructure investments FullySonoco targets philanthropic contributions at approximately
and services provided primarily for public benefit 1 percent of the Company’s annual domestic pretax profits.
through commercial, in-kind, or pro bono engagement In 2012, cash contributions equaled over $2.5 million. Charitable grants are made only to organizations with tax-
exempt status. The Company’s priority is to give to and support those communities in which we operate, with special consideration given to those institutions which are supported by 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 does not make grants for capital fundraising programs, endowments or for trips or tours.
In 2010, Sonoco worked with the Darlington County
School District, the South Carolina Governor’s School for Science and Mathematics (GSSM) and Coker College to conduct a detailed needs assessment to address ways of significantly improving educational achievement for
students attending school in the Company’s hometown of Hartsville. The needs assessment group was headed by Sonoco Chairman Harris DeLoach and included the presidents of Coker and GSSM along with the superintendent of schools for Darlington County. Two items were identified by the assessment—improving academic
and personal development skills for four underperforming Tier 1 elementary schools and providing accelerated learning programs for top achieving high school students.
The group solicited support from Yale University’s Child Study Center to develop a Comer School Development at the four elementary schools patterned after Yale’s nationally recognized development initiative. In addition, college equivalent classes were developed for Hartsville High School and Governor School students in organic chemistry, Mandarin Chinese, calculus, physics and fine
art programs. The program, called PULSE (Partners for Unparalleled Local Scholastic Excellence) was funded by a $5 million grant (over five years) by the Sonoco Foundation and was launched in 2011, reaching 1,400 elementary students and 100 high school students.
20
Economic (continued)
indicator
Reported
Indirect economic impacts (continued)
In 2012, PULSE provided the following results:
• Comer School Development Program impacted 1,296 Kindergarten-5th grade students at four elementary schools.
• Coker College provided 18 professional development workshops for Darlington County teachers
• Comer’s four elementary schools’ test scores improved in Palmetto Assessment of State Standards (PASS) testing.
• Overall scores improved 12-24 percent in Measures of Academic Progress(MAP) testing at the four Comer
elementary schools:
• Comer’s mentor program included 77 volunteer
community mentors and 88 student mentees
• AP Calculus scores improved for students in the PULSE Accelerated Learning Opportunities (ALO) program. 50 percent of ALO students scored 3 or higher compared to 13 percent of non-ALO students
• ALO Enrollment increased for the 2012-2013 school year to the following enrollment:
–Fifty-two students enrolled in Mandarin Chinese I, II
–Six students in Advanced Chemistry
–Eight students in Voice class
–Four students in Applied Voice class
–Two students in Piano
–Two students in Applied Piano
–Four students in Applications of Calculus AB
–Six students in Pedal to the Metal pre-Calculus
Environmental
indicator
Reported
Materials
EN1
Materials used by weight or volume NotInformation is not available
EN2Percentage of materials used that are recycled input NotInformation is not available
materials Energy
EN3Direct energy consumption by primary energy sourceFully
15,700,000 MMBtu (Does not include biomass or
by-product fuels for Hartsville, S.C., U.S.)
EN4Indirect energy consumption by primary sourceFully
1,121,158 MWh
EN6
Initiatives to provide energy-efficient or renewable Fully
CRR (page 10)
energy based products and services, and reductions in energy requirements as a result of these initiatives Sonoco’s new biomass cogeneration system is expected
to be operational in November 2013 and will produce 16
megawatts of low-cost, green electricity and steam that will be used at the Hartsville, S.C., U.S., complex. The boiler system is expected to provide approximately $14 million in savings.
21
Environmental (continued)
indicator
Reported
Water
EN8Total water withdrawal by source FullyCRR, Key Environmental Metrics (page 11)
Biodiversity
EN11Location and size of land owned, leased, managed in, FullySonoco owns and manages multiple tracts of timberland or adjacent to, protected areas and areas of high
totaling 55,080 acres, all of which are located in South biodiversity value outside protected areasCarolina. These Company-owned forests are primarily
hardwoods and provide a fiber source used to produce
corrugated paper at Sonoco’s Hartsville-based paper mill,
in addition to being managed under a multiple use system for recreation and wildlife. All of Sonoco’s timberland is
managed according to the Sustainable Forestry Initiative (SFI). Through SFI, Sonoco achieved certification for respon-
sible and sustainable forestry management practices. Sonoco also is certified by the Forest Stewardship Council and the Program for the Endorsement of Forest Certification (PERC) for responsible fiber-sourcing practices. To our knowledge, we do not own any land adjacent to protected areas or areas deemed to be of high biodiversity value.
EN12
Description of significant impacts of activities, products Fully
To our knowledge, we do not own any land adjacent to
and services on biodiversity in protected areas and protected areas or areas deemed to be of high biodiversity
areas of high biodiversity value outside protected areas. value.
Emissions, effluents and
waste
EN16Total direct and indirect greenhouse gas emissions by Fully
1,309,144 mtonnes CO2e
weight EN17Other relevant indirect greenhouse gas emissions by FullyInformation is not available
weight EN19Emissions of ozone-depleting substances by weight NotInformation is not available EN20
NOx, SOx, and other significant air emissions by type Not
Information is not available
and weight EN21
Total water discharge by quality and destination Fully
12,026,085 m3 (recycled paperboard mills only, which
represent 90 percent of water usage)
EN22
Total weight of waste by type and disposal method Fully
159,995 mtonnes landfilled
EN23
Total number and volume of significant spills Fully
No significant spills occurred at Company operations in 2012
Products and services
EN26Initiatives to mitigate environmental impacts of products FullyCRR, Commitment to Customers (page 8-9)
and services, and extent of impact mitigation
EN27
Percentage of products sold and their packaging Partially
Sonoco’s strategy is to work with customers to ensure
materials that are reclaimed by category return shipments and reuse of the tubes and cores,
pallets, reels, carts and racks, bins, slip sheets and
cartons that are utilized to move our products
22
Environmental (continued)
indicator
Reported
Compliance
EN28
Monetary value of significant fines and total number of Fully
AR, Form 10-K, Item 3, Legal proceedings (pages 10-13)
non-monetary sanctions for non-compliance with Environmental matters (pages F25-26)
environmental laws and regulations Sonoco operates 347 facilities in 34 countries and all have various forms of environmental requirements. In those
facilities we occasionally exceed the permit limit, for which we take immediate corrective action, thus any fines that may have been paid were minimal. Currently, the Company doesn’t have any environmental violations involving our facilities. On a global basis, ongoing capita investment allows a few Company facilities to continue meeting
current and future environmental limits.
Social: Labor Practices and Decent Work
indicator
Reported
Employment
LA1Total workforce by employment type, employment FullyAppendix 2
contract, and region
LA2Total number and rate of employee turnover by age FullyAppendix 2
group, gender, and region Labor/management relations
LA4Percentage of employees covered by collective FullyThirteen (13) percent of Sonoco employees are covered by bargaining agreements
collective bargaining agreements.
LA5
Minimum notice period(s) regarding significant Partially
Depending on the business circumstances, a minimum
operational changes, including whether it is specified in of 60 days and up to one year’s notice is required
collective agreements
Occupational health and safety
LA7Rates of injury, occupational diseases, lost days, and FullyCRR, Social Responsibility (page 12)
absenteeism, and number of work-related fatalities by
regionThe Company follows OSHA 1904 regulations for recording and reporting occupational injuries and illness throughout our global operations. In 2012, Sonoco’s global injury rate (IR), the total injuries per 100 employees, including
independent contractors, excluding Tegrant employees, was 0.44. Including Tegrant, the IR was .53.
Sonoco did have 182 Standard Threshold shifts under the hearing conservation standard and would yield a Total Incident Rate of (TIR) of 1.25
Our 2012 lost workday incident rate, the lost workday
incidents per 100 employees, excluding Tegrant, was .27. Including Tegrant, the rate was .28.
Our lost workday rate, the lost scheduled workdays per 100 employees, excluding Tegrant, was 8.79. Including Tegrant, the rate was 8.33. Sonoco does not have any recorded occupational diseases and in 2012 we experi-
enced one (1) workplace fatality.
23
Social: Labor Practices and Decent Work (continued)
indicator
Reported
Occupational health and safety (continued)
LA8Education, training, counseling, prevention, and FullySonoco provides training and development programs for
risk-control programs in place to assist workforce employees and groups of employees at every level. For
members, their families, or community members help with work life balance issues, we provide assistance
regarding serious diseases
through Guidance Resources. Guidance Resources offers free and confidential counciling for issues ranging from family finances and healthcare to daycare for children or aging parents. We offer health improvement programs and health coaches for employees and in many cases, for
family members. Sonoco employees do not have a high incidence or high risk of any specific diseases.
Training and education
LA10Average hours of training per year per employee byNotInformation is not available
employee category
Diversity and equal opportunity
LA13Composition of governance bodies and breakdown of FullyAppendix 2
employees per category according to gender, age group,
minority group membership, and other indicators of
diversity
LA14
Ratio of basic salary of men to women by employee Partially
It is the policy of Sonoco to provide equal employment
category opportunities without regard to race, color, religion, sex, age, national origin, disability and veteran status. The Company will also take affirmative action to employ and advance disabled individuals who are qualified. This policy relates to all phases of employment, including, but not
limited to, recruiting, employment, placement, upgrading, demotion or transfer; layoff, recall and termination; rates
of pay or other forms of compensation and selection for training; and the use of all facilities. This policy is
periodically brought to the attention of all managers and supervisors who are responsible for its implementation.
Social: Human Rights
indicator
Reported
Investment and Procurement Practices
HR1
Percentage and total number of significant investment Fully
One hundred (100) percent of agreements with of Sonoco’s agreements that include human rights clauses or that
1150 direct suppliers outline human rights and Sonoco’s
have undergone human rights screening
requirements of our suppliers regarding human rights.
HR2
Percentage of significant suppliers and contractors that Fully
One hundred (100) percent of Sonoco’s 1150 direct
have undergone screening on human rights and actions
suppliers took part in our human rights screening in 2012.
taken
HR3
Total hours of employee training on policies and Fully
One hundred (100) percent of Sonoco’s global exempt level procedures concerning aspects of human rights that are
professionals are required to participate in business code
relevant to operations, including the percentage of
of conduct and human rights training biennially. The last
employees trained
training was conducted in Summer 2012.
24
Social: Human Rights (continued)
indicator
Reported
Non-discrimination
HR4Total number of incidents of discrimination and FullySonoco had nine charges of discrimination in 2012. Five
actions taken
were dismissed by the EEOC and/or state agency, three were settled out of court and one remains open in 2013.
Freedom of association and collective bargaining
HR5
Operations identified in which the right to exercise Fully
freedom of association and collective bargaining may be
at significant risk, and actions taken to support these
rights
No Sonoco operations or suppliers have been identified
as being at significant risk.
Child labor
HR6
Operations identified as having significant risk for Fully
No Sonoco operations or suppliers have been identified as
incidents of child labor, and measures taken to being at significant risk. The minimum working age at
contribute to the elimination of child labor Sonoco is 18.
Forced and compulsory labor
HR7
Operations identified as having significant risk for Fully
incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory
labor No Sonoco operations or suppliers have been identified as
being at significant risk.
Security practices
HR8Percentage of security personnel trained in the Fully
One hundred (100) percent of Sonoco’s global exempt-level organization’s policies or procedures concerning
professionals are required to participate in business code aspects of human rights that are relevant to operations
of conduct and human rights training biennially. The last
training was in Summer 2012.
Indigenous rights
HR9
Total number of incidents of violations involving rights Fully
No incidents or violations have ever been filed related to
of indigenous people and actions taken
human rights
25
Social: Society
indicator
Reported
Community
SO1
Nature, scope, and effectiveness of any programs and Fully
CRR, Sonoco’s Approach to Climate Change (page 11)
practices that assess and manage the impacts of CRR, Environmental Policy (page 10)
operations on communities, including entering, operating http://www.sonocofoundation.com/philosophy.aspx
and exiting
http://www.sonoco.com/contact.aspx
Most of Sonoco’s global manufacturing locations are relatively small, with less than 100 employees. However,
at the Company’s largest manufacturing and headquarters complex in Hartsville, S.C., we have approximately 2,000 employees and contractors and 1000 retirees. As a result, most of the Company’s stakeholder engagement programs are employed inside and outside the Sonoco operations in this community. This includes approximately 75 percent of all philanthropic contributions; annual philanthropic needs assessments (including community engagement, environmental, development programs) and ongoing stakeholder engagement programs. Corruption
SO2Percentage and total number of business units analyzed NotRegulatory compliance -- business conduct
for risks related to corruption SO3
Percentage of employees trained in organization’s anti-
Fully
One hundred (100) percent of Sonoco’s employees are
corruption policies and procedures trained in anti-corruption biennially. The last training was conducted in 2012, and training will occur again in
Summer 2014.
SO4Actions taken in response to incidents of corruptionFullySonoco is not aware of any material weakness or
significant deficiency in our internal controls. The Company did report an incident of theft in 2012 involving recyclable materials. One employee was arrested and prosecuted. Public policy
SO5Public policy positions and participation in public policy FullyCRR, Memberships (page 14)
development and lobbying Sonoco is a member of American Forest and Paper
Association, Composite Can and Tube Institute, Can Manufacturers Institute, AMERIPEN, and many other
organizations, all of whom support our interests in public policy development and lobbying.
Anti-competitive behavior
SO7Total number of legal actions for anti-competitive FullyNo legal actions for anti-competitive behavior, anti-trust
behavior, anti-trust, and monopoly practices and their and monopoly practices and their outcomes
outcomes Compliance
SO8
Monetary value of significant fines and total number of Fully
AR, Form 10-K, Item 3, Legal proceedings (pages 10-13)
non-monetary sanctions for non-compliance with laws Environmental matters (pages F25-26)
and regulations 26
Social: Product Responsibility Performance Description
indicator
Reported
Customer health and safety
PR1
Life cycle stages in which health and safety impacts of Fully
For all packaging, Sonoco evaluates suppliers’ materials
products and services are assessed for improvement for compliance with laws and regulations required by
and percentage of significant products and services product safety. A large percentage of Sonoco’s consumer
categories subject to such procedures
packaging is developed for the food packaging industry as well as for the health and beauty market. Our Product Safety organization is responsible for ensuring compliance of our packaging products with all health, safety, and
environmental laws and applicable to packaging materials in the countries and regions in which they are
manufactured and marketed. Suppliers of components
for these packaging applications are scrutinized for
compliance with U.S. Food and Drug Administration and other national laws and regulations for food-contact packaging.
Sonoco is currently pursuing GFSI (Global Food Safety Initiative) certification for several dozen Sonoco manu
facturing sites. The certification of these Sonoco facilities
is schedule to be completed by the end of 2014. Sonoco operates commercial recycling and materials processing centers. This allows Sonoco to collaborate with customers on available end-of-life options for their packaging.
For new product development and some significant design changes, Sonoco may use an internally-created Design for Sustainability tool to evaluate raw material choices. In 2012, Sonoco also used the Sustainable Packaging Coalition’s COMPASS life cycle indicator tool to assess and communicate packaging changes. COMPASS has a
material health and safety component based on industry-
average raw material sourcing, manufacturing, and
packaging converting practices. When appropriate, these COMPASS assessments were performed by a third-party consultant.
Product and service labelling
PR3
Type of product and service information required by Fully
procedures, and percentage of significant products and services subject to such information requirements
Sonoco manufactures packaging for consumer brands
companies and others. These customers dictate and are responsible for package graphics, including labeling. The component materials in Sonoco packages are sourced from various vendors/suppliers. This may include other facilities that manufacture and supply component
materials within or across divisions. These component materials are assessed for material health and safety based on vendor/supplier documents. As with labeling,
safe use of the product packaging is ultimately determined by the customer. Much of Sonoco’s sales are assessed to ensure product and food safety. We have assessed and can communicate the end of life options for many of our product offerings and have closed loop return systems in place for our packaging.
27
Social: Product Responsibility Performance Description
indicator
Reported
Marketing communications
PR6Programs for adherence to laws, standards, and FullySonoco manufactures packaging for consumer brands
voluntary codes related to marketing communications, companies and others. These customers dictate and are
including advertising, promotion, and sponsorship
responsible for package graphics, including labeling. However, Sonoco does provide data that are used to
validate a claim. Additionally, environmental marketing claims made about Sonoco packaging to these customers or the public are reviewed for compliance with ISO 14021 and the Federal Trade Commission’s Guides for the use of Environmental Marketing Claims.
Compliance
PR9
Monetary value of significant fines for non-compliance Fully
with laws and regulations concerning the provision and use of products and services Sonoco is not aware of any significant fines for noncompliance with laws and regulations concerning provision and use of products and services.
28
G3 content index
Application Level C
appendix 1: Countries Where the Organization Operates
Australia
Belgium
Brazil
Canada
Chile
China
Colombia
Estonia
Finland
France
Germany
Greece
Indonesia
Ireland
Italy
Luxembourg
Malaysia
Mexico
Netherlands
New Zealand
Norway
Poland
Puerto Rico
Russia
Singapore
Spain
Sweden
Switzerland
Taiwan
Thailand
Turkey
United Kingdom
United States
Venezuela
29
G3 content index
Application Level C
appendix 2: Labor Practices and Decent Work Performance Indicators
LA1: Total workforce by employment type, employment contract and region
broken down by gender (US and Canada)
The total workforce broken down by employees, supervised workers Female: 2783
and gender
Male: 8380Hourly: 8409Salary: 2754
The total number of employees broken down by type of employment Regular Female: TemporaryRegular Male: Temp Male:
contract and gender
2747Female: 36
8281
99
The total number of permanent employees broken down byHourly Female: Salaried Female: Hourly Male: Salaried Male:
employment type and gender 1873
910
6536
1844
The total workforce broken down by region and gender based on theCanadianCanadian Male: United States United States
scale of the organization’s operations Female: 362
676
Female: 2421
Male: 7704
LA2: Total number and rate of new employee hires and employee turnover
by age group, gender, and region
Total number of new employee hires entering employment during the Female: 342
Male: 1082
reporting period broken down by gender
Rate of new employee hires entering employment during the reporting Females: 24%
Males: 76%
period broken down by gender
Total number of new employee hires entering employment during the Under 30: 600
30-50: 631Over 50: 193
reporting period broken down by age group
Rate of new employee hires entering employment during the reporting Under 30: 42%
30-50: 44%Over 50: 14%
period broken down by age group
Total number of new employee hires entering employment during the Canada: 73United States:
reporting period broken down by region
1351
Rate of new employee hires entering employment during the reporting Canada: 5%United States:
period broken down by region
95%
Total number of employees leaving employment during the reporting Female: 429
Male: 1015
period broken down by gender
Rate of employees leaving employment during the reporting period Female: 30%
Male: 70%
broken down by gender
Total number of employees leaving employment during the reporting Under 30: 314
30-50: 692Over 50: 438
period broken down by age group
Rate of employees leaving employment during the reporting period Under 30: 22%
30-50: 48%Over 50: 30%
broken down by age group
Total number of employees leaving employment during the reporting Canada: 262United States: period broken down by region
1182
Rate of employees leaving employment during the reporting period Canada: 18%United States:
broken down by region
82%
30
LA13: Composition of governance bodies and breakdown of employees
per employee category according to gender, age group, minority group
membership, and other indicators of diversity
The percentage of employees in the gender category (female/male)Female: 24.93%
The percentage of employees in minority groupsTotal: 26.6%
The percentage of employees by age group (under 30; 30-50; over 50)Under 30: 13.57%
For the identified minority and age groups, report the percentage of employees by gender
Male: 75.07%
30-50: 52.96%Over 50: 33.46%
Minority Females: Under 30
8%Females: 10%
Minority Males: Under 30 Males:
20%
15%
30-50 Females: Over 50
53%Females: 37%
30-50 Males: Over 50 Males:
53%
32%
The percentage of individuals within the organization’s governance Female: 8.3%
Male: 91.7%
bodies in the gender category (female/male)
The percentage of individuals within the organization’s governance Total: 4.0%
bodies in minority groups
The percentage of individuals within the organization’s governance Under 30: 0%
30-50: 17.4%
Over 50: 82.6%
bodies by age group (under 30; 30-50; over 50)
31

Sonoco corporate reSponSibility report

Transcription

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