Updated carbon reduction targets

RNS Number : 3073B

Smith (DS) PLC

09 June 2021

 

DS Smith announces commitment to Science Based Target for 2030 and Net Zero emissions by 2050

· DS Smith commits to Science Based Target by 2030, cutting CO2 emissions per tonne of product by at least 40%*

The Company is ahead of previous carbon reduction targets, achieving a 23% reduction in emissions per tonne of product by the end of 2020**

London, UK; 9 June 2021: DS Smith, the FTSE 100 sustainable packaging company, today announces a series of ambitious climate targets. This includes a Science Based Target which requires a 40% reduction of CO2 emissions per tonne of product by 2030, compared to 2019 levels, and a commitment to reach at least Net Zero emissions by 2050.

These targets will be validated by the Science Based Targets initiative as being in line with the goals of the Paris Agreement. To further underline the company's ambition and commitment, DS Smith also announced its membership of the UN's Race to Zero. To achieve these targets, it will further adopt a number of engineering solutions, including using local biomass and biogas, and renewable electricity like wind and solar.

In 2017, DS Smith announced its target to reduce carbon emissions per tonne of product by 30% by 2030 against a 2015 baseline. As part of a coordinated effort across its over 250 sites globally, it has achieved a 23% reduction by the end of 2020, placing it well ahead of its plans.

DS Smith has achieved this by investing in groundbreaking technology, including waste-to-energy solutions, state-of-the-art combined heat and power facilities, and equipment upgrades from new boilers and LED lighting. It has also increased its use of renewable fuel sources, such as biogas and biomass, and improved its energy usage to reduce greenhouse gas emissions.

Miles Roberts, Group Chief Executive of DS Smith, said: "It is widely recognized that heavy manufacturing is one of the most challenging sectors to de-carbonise, but we are committed to playing our part by taking action to Net Zero with a clear plan and roadmap. We make sustainable packaging that is fibre-based and fully recyclable and believe that through combined leadership in the circular economy and climate action, we are uniquely positioned to have a real impact in helping to reduce the rise in global temperatures.

"We've already made good progress in reducing our carbon as part of our long-term sustainability focus, but we know we need to do much more. That's why today we are not only setting ambitious climate targets for ourselves; but strengthening our commitment to delivering more circular solutions for our customers and wider society. I am incredibly proud of all of our people for making this happen."

Andrew Griffith MP, UK Net Zero Business Champion, said:   "I'm delighted DS Smith has joined the UN's Race to Zero. It is great to see a company with an ambitious 2030 target and commitment to reach Net Zero by 2050. DS Smith is making great progress against its previous carbon reduction targets, tackling the challenges associated with decarbonising the paper and packaging sector. Business plays a key role in driving the UK's transition to a low carbon economy, with over 40 of the FTSE100 now signed up to the UN's Race to Zero,  I hope this announcement inspires other companies in the sector to take action."

Andrew Morlet, CEO of the Ellen MacArthur Foundation, a Strategic Partner of DS Smith, said:  "We look forward to exploring how our Strategic Partnership with DS Smith can help accelerate the company's progress towards achieving the climate targets announced today, in parallel with its circular economy commitments. The switch to renewable energy can only reduce greenhouse gas emissions by 55%, while the remaining 45% of emissions come from how we make and use products - so the transition to a circular economy is vital in order to tackle climate change, as well as other global challenges."

In addition to its climate action commitment, DS Smith recently announced its £100m R&D and innovation package to accelerate its work in the circular economy. The new investment underpins DS Smith's new circular economy led sustainability strategy, Now and Next, which pledges to manufacture 100% recyclable or reusable packaging by 2023 and to take a billion pieces of problem plastics off supermarket shelves by 2025.

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Enquiries

DS Smith Plc    [phone]

Investors

Hugo Fisher, Group Communications Director

Rachel Stevens, Investor Relations Director

Media

Greg Dawson, Corporate Affairs Director

Brunswick   [phone]

Simon Sporborg

Dan Roberts 

Net Zero:

The term Net Zero refers to the balance between the amount of greenhouse gas produced and taken out of the atmosphere. The Science Based Targets initiative engages and supports companies in defining how much and how quickly they need to reduce their greenhouse gas emissions.

About DS Smith

DS Smith is a leading provider of sustainable paper-based packaging worldwide which is supported by recycling and papermaking operations. It plays a central role in the value chain across sectors including e-commerce, fast moving consumer goods and industrials.

Through its purpose of 'Redefining Packaging for a Changing World' and its Now and Next sustainability strategy, DS Smith is committed to leading the transition to the Circular Economy, while delivering more circular solutions for its customers and wider society - replacing problem plastics, taking carbon out of supply chains and providing innovative recycling solutions. Its bespoke box-to-box in 14 days model, design capabilities and innovation strategy sit at the heart of this response.

DS Smith operates in 34 countries employing around 30,000 people and is a Strategic Partner of the Ellen MacArthur Foundation.

DS Smith will report annually its progress across its climate targets in its Sustainability and Annual Reports.

 

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