IRELAND – Smurfit Kappa, a leading corrugated packaging company, has received the prestigious ‘Supplier of the Year’ recognition from PepsiCo, a testament to their exceptional performance in sustainability, market agility, and overall business excellence.
This accolade marks a significant milestone in the enduring fifteen-year partnership between the two global entities.
One standout collaboration that contributed to this accolade was Smurfit Kappa’s pivotal role in supporting the UK-based Walkers crisps brand, owned by PepsiCo, in their shift towards sustainable packaging.
Tasked with reducing the annual production of 660 million plastic pack bags, Smurfit Kappa’s Better Planet Packaging design team, in collaboration with PepsiCo and machine manufacturers, engineered a 100% paper-based concept.
By transitioning Walkers’ 22 and 24 multipacks from plastic to cardboard outer packaging, an impressive 250-tonne reduction in annual plastic usage was achieved.
This move not only aligned with Walkers’ sustainability commitment but also enhanced logistical efficiency by increasing pallet loads and streamlining the supply chain process.
Sherif Eskandar, Chief Procurement Officer of PepsiCo Europe, commended Smurfit Kappa for their outstanding dedication and contribution to advancing PepsiCo’s sustainability agenda.
The award recognizes Smurfit Kappa’s exceptional value delivery, commitment to objectives, innovation, cost transformation, and sustainability efforts.
Expressing delight at receiving the award, Saverio Mayer, CEO of Smurfit Kappa Europe, emphasized the shared determination with PepsiCo to contribute to environmental protection.
Mayer attributed the recognition to the excellence of Smurfit Kappa’s teams, from world-class designers to talented plant employees, who consistently deliver innovative packaging solutions with measurable sustainability benefits.
Smurfit Kappa’s Green Bond Impact: Advancing Sustainability Initiatives
In another significant stride, Smurfit Kappa recently launched its second annual Green Bond Allocation and Impact Report.
This report sheds light on the use of proceeds from their inaugural €1 billion dual-tranche Green Bond issued in September 2021.
Reflective of the sustainable nature of their business model, Smurfit Kappa’s Green Finance Framework outlines eligibility criteria covering the geographic scope of their operations and emphasizing strong circular business practices.
The proceeds from the Green Bond were allocated to assets falling into two primary categories. Firstly, the investment went into circular economy adapted products, production technologies, and certified eco-efficient projects (96%).
These initiatives contributed to recycling 6.8 million tonnes of primarily post-consumer waste in 2022, with 76% recycled fibres in global production and 100% recycled fibres sourced sustainably.
Additionally, the second category focused on environmentally sustainable management of natural resources and land use (4%), ensuring 100% FSC-certified forestry assets.
Over 30% of these assets in Colombia are protected natural forests, aiding biodiversity, storing 9.34 million tonnes of CO2, and ensuring 100% wood used in production is from certified sustainably managed forests.
Commenting on the report, Emer Murnane, Group Treasurer at Smurfit Kappa, highlighted their commitment to integrating corporate sustainability into their capital structure.
Murnane stressed their dedication to circularity, a core aspect of their business, through green finance instruments.
The aim is to provide debt investors with opportunities to invest in genuinely sustainable practices, ensuring transparent reporting on their ambitious sustainability goals and the progress made in achieving them.
Garrett Quinn, Chief Sustainability Officer at Smurfit Kappa, emphasized the strategic approach outlined in the report, underscoring the positive environmental and social impacts achieved through responsible investment practices.
He highlighted instances of environmental and social investment initiatives that have tangibly contributed to positive change.
Through green bonds and sustainable finance, Smurfit Kappa is committed to investing in a more sustainable planet while generating economic value.
