ifrs-s2-ibg-volume-48-containers-and-packaging-part-b

Title: Volume 48—Containers & Packaging

Category: Part B—Industry-based Guidance for IFRS S2

Source: IFRS Foundation (https://www.ifrs.org)

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Year: 2023

Type: Industry

Industry-based Guidance on implementing

Climate-related Disclosures

Volume 48—Containers & Packaging

June 2023

IFRS S2

IFRS

® Sustainability Disclosure Standard

International Sustainability Standards Board

This Industry-based Guidance accompanies IFRS S2 Climate related Disclosures (published

June 2023; see separate booklet) and is issued by the International Sustainability

Standards Board (ISSB).

Disclaimer: To the extent permitted by applicable law, the ISSB and the IFRS Foundation

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substituted for the services of an appropriately qualified professional.

© IFRS Foundation 2023

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IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023

© IFRS Foundation

1

Introduction

This volume is part of the Industry-based Guidance on Implementing IFRS S2 Climate-related

Disclosures. This guidance suggests possible ways to apply some of the disclosure requirements in

IFRS S2 but does not create additional requirements.

This volume suggests possible ways to identify, measure and disclose information about

climate-related risks and opportunities that are associated with particular business

climate-related risks and opportunities that are associated with particular business

models, economic activities and other common features that characterise participation in

this industry.

This industry-based guidance has been derived from Sustainability Accounting Standards

Board (SASB) Standards, which are maintained by the International Sustainability

Standards Board (ISSB). The metric codes used in SASB Standards have been included for

Standards Board (ISSB). The metric codes used in SASB Standards have been included for

ease of reference. For additional context regarding the industry-based guidance contained

in this volume, including structure and terminology, application and illustrative

examples, refer to Section III of the Accompanying Guidance to IFRS S2.

IFRS S2 INDUSTRY-BASED GUIDANCE

2

© IFRS Foundation

Volume 48—Containers & Packaging

Industry Description

Containers and packaging industry entities convert raw materials including metal,

plastic, paper and glass, into semi-finished or finished packaging products. Entities

produce a wide range of products, including corrugated cardboard packaging, food and

beverage containers, bottles for household products, aluminium cans, steel drums and

other forms of packaging. Entities in the industry typically function as business-to-

other forms of packaging. Entities in the industry typically function as business-to-

business entities and many operate globally.

Sustainability Disclosure Topics & Metrics

Table 1. Sustainability Disclosure Topics & Metrics

TOPIC

METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Greenhouse

Gas

Emissions

Gross global Scope 1 emissions,

percentage covered under emissions-

limiting regulations

Quantitative

Metric tons (t)

CO₂-e,

Percentage

(%)

RT-CP-110a.1

Discussion of long- and short-term

Quantitative

Metric tons (t)

CO₂-e,

Percentage

(%)

RT-CP-110a.1

Discussion of long- and short-term

strategy or plan to manage Scope 1

emissions, emissions reduction targets

and an analysis of performance against

those targets

Discussion

and Analysis

n/a

RT-CP-110a.2

Energy

Management

(1) Total energy consumed,

(2) percentage grid electricity,

(3) percentage renewable and (4) total self-generated energy Quantitative Gigajoules (GJ),Percentage (%) RT-CP-130a.1 Water Management

self-generated energy Quantitative Gigajoules (GJ),Percentage (%) RT-CP-130a.1 Water Management

(1) Total water withdrawn, (2) total water consumed; percentage of each in regions with High or Extremely High Baseline Water Stress Quantitative Thousand cubic metres (m³),Percentage (%) RT-CP-140a.1 Description of water management risks and discussion of strategies and practices to mitigate those risks Discussion and Analysis n/a RT-CP-140a.2 Number of incidents of non-compliance

Discussion and Analysis n/a RT-CP-140a.2 Number of incidents of non-compliance associated with water quality permits,

standards and regulations Quantitative Number RT-CP-140a.3 Waste Management Amount of waste generated, percentage hazardous and percentage recycled Quantitative Metric tons (t),Percentage (%) RT-CP-150a.1 Supply Chain Management Total wood fibre procured; percentage from certified sources Quantitative Metric tons (t),Percentage (%) RT-CP-430a.1

from certified sources Quantitative Metric tons (t),Percentage (%) RT-CP-430a.1 Total aluminium purchased; percentage from certified sources Quantitative Metric tons (t),Percentage (%) RT-CP-430a.2 IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 3

Table 2. Activity Metrics

ACTIVITY METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Amount of production, by substrate 83 Quantitative Metric tons (t) RT-CP-000.A Percentage of production as: (1) paper/wood, (2) glass,

(3) metal, and (4) plastic Quantitative Percentage (%) by revenue RT-CP-000.B Number of employees Quantitative Number RT-CP-000.C Greenhouse Gas Emissions Topic Summary The Containers & Packaging industry generates direct (Scope 1) greenhouse gas (GHG)

Topic Summary The Containers & Packaging industry generates direct (Scope 1) greenhouse gas (GHG) emissions from fossil fuel combustion in manufacturing and cogeneration processes.

GHG emissions may result in regulatory compliance costs or penalties and operating risks for entities. However, the financial effects may vary depending on the magnitude of emissions and the prevailing emissions regulations. The industry may be subject to

emissions and the prevailing emissions regulations. The industry may be subject to increasingly stringent regulations as countries try to limit or reduce emissions. Entities that cost-effectively manage GHG emissions through greater energy efficiency, the use of alternative fuels or manufacturing process advances could benefit from improved operating efficiency and reduced regulatory risk, among other financial benefits.

Metrics

operating efficiency and reduced regulatory risk, among other financial benefits.

Metrics RT-CP-110a.1. Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations 1 The entity shall disclose its gross global Scope 1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),

dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),

perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3).

1.1

Emissions of all GHGs shall be consolidated and disclosed in metric tons of carbon dioxide equivalents (CO2-e) and calculated in accordance with published 100-year time horizon global warming potential (GWP) values.

To date, the preferred source for GWP values is the Intergovernmental

To date, the preferred source for GWP values is the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (2014).

1.2

Gross emissions are GHGs emitted into the atmosphere before accounting for offsets, credits or other similar mechanisms that have reduced or compensated for emissions.

2 Scope 1 emissions are defined and shall be calculated according to the methodology contained in The Greenhouse Gas Protocol: A Corporate Accounting and

methodology contained in The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG Protocol), Revised Edition, March 2004, published by the World Resources Institute and the World Business Council on Sustainable Development (WRI/WBCSD).

83 Note to RT-CP-000.A – Relevant substrates include paper and/or wood fibre, glass, metal, and petroleum-based substrates (i.e., polymers).

IFRS S2 INDUSTRY-BASED GUIDANCE 4© IFRS Foundation

2.1

Acceptable calculation methodologies include those that conform to the GHG Protocol as the base reference, but provide additional guidance, such as industry- or region-specific guidance. Examples may include:

2.1.1

GHG Reporting Guidance for the Aerospace Industry published by the International Aerospace Environmental Group (IAEG)

2.1.2

Greenhouse Gas Inventory Guidance: Direct Emissions from Stationary Combustion Sources published by the US Environmental Protection Agency (EPA)

2.1.3

Combustion Sources published by the US Environmental Protection Agency (EPA)

2.1.3

India GHG Inventory Program

2.1.4

ISO 14064-1

2.1.5

Petroleum Industry Guidelines for Reporting GHG Emissions, 2nd edition,

2011, published by IPIECA

2.1.6

Protocol for the Quantification of Greenhouse Gas Emissions from Waste Management Activities published by Entreprises pour l’Environnement (EpE)

2.2

GHG emissions data shall be consolidated and disclosed according to the

l’Environnement (EpE)

2.2

GHG emissions data shall be consolidated and disclosed according to the approach with which the entity consolidates its financial reporting data,

which generally is aligned with the ‘financial control’ approach defined by the GHG Protocol, and the approach published by the Climate Disclosure Standards Board (CDSB) described in REQ-07, ‘Organisational boundary’, of the CDSB Framework for reporting environmental and social information.

3

the CDSB Framework for reporting environmental and social information.

3 The entity shall disclose the percentage of its gross global Scope 1 GHG emissions covered under an emissions-limiting regulation or programme intended to limit or reduce emissions directly, such as cap-and-trade schemes, carbon tax or fee systems, and other emissions control (for example, command-and-control approach) and permit-based mechanisms.

3.1

Examples of emissions-limiting regulations include:

3.1.1

3.1

Examples of emissions-limiting regulations include:

3.1.1

California Cap-and-Trade (California Global Warming Solutions Act)

3.1.2

European Union Emissions Trading Scheme (EU ETS)

3.1.3

Quebec Cap-and-Trade (Quebec Environment Quality Act)

3.2

The percentage shall be calculated as the total amount of gross global Scope 1 GHG emissions (CO2-e) covered under emissions-limiting regulations divided by the total amount of gross global Scope 1 GHG emissions (CO2-e).

3.2.1

regulations divided by the total amount of gross global Scope 1 GHG emissions (CO2-e).

3.2.1

For emissions subject to more than one emissions-limiting regulation, the entity shall not account for those emissions more than once.

3.3

The scope of emissions-limiting regulations excludes emissions covered under voluntary emissions-limiting regulations (for example, voluntary trading systems), as well as reporting-based regulations.

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 5

4 The entity may discuss any change in its emissions from the previous reporting period, including whether the change was because of emissions reductions,

divestment, acquisition, mergers, changes in output or changes in calculation methodology.

5 In the case that current reporting of GHG emissions to the CDP or other entity (for example, a national regulatory disclosure programme) differs in terms of the scope and consolidation approach used, the entity may disclose those emissions.

scope and consolidation approach used, the entity may disclose those emissions.

However, primary disclosure shall be according to the guidelines described above.

6 The entity may discuss the calculation methodology for its emissions disclosure,

such as if data are from continuous emissions monitoring systems (CEMS),

engineering calculations or mass balance calculations.

RT-CP-110a.2. Discussion of long- and short-term strategy or plan to manage

RT-CP-110a.2. Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets and an analysis of performance against those targets 1 The entity shall discuss its long- and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions.

1.1

Scope 1 emissions are defined and shall be calculated according to the methodology contained in The Greenhouse Gas Protocol: A Corporate Accounting

methodology contained in The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG Protocol), Revised Edition, March 2004,

published by the World Resources Institute and the World Business Council on Sustainable Development (WRI/WBCSD).

1.2

The scope of GHG emissions includes the seven GHGs covered under the Kyoto Protocol—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),

hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride

hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3).

2 The entity shall discuss its emission reduction target(s) and analyse its performance against the target(s), including, if relevant:

2.1

The scope of the emission reduction target (for example, the percentage of total emissions to which the target is applicable);

2.2

Whether the target is absolute or intensity-based and the metric denominator if it is an intensity-based target;

2.3

denominator if it is an intensity-based target;

2.3

The percentage reduction against the base year, with the base year representing the first year against which emissions are evaluated towards the achievement of the target;

2.4

The time lines for the reduction activity, including the start year, the target year and the base year;

2.5

The mechanism(s) for achieving the target; and

2.6

Any circumstances in which the target or base year emissions have been,

2.6

Any circumstances in which the target or base year emissions have been,

or may be, recalculated retrospectively or the target or base year has been reset.

IFRS S2 INDUSTRY-BASED GUIDANCE 6© IFRS Foundation

3 The entity shall discuss the activities and investments required to achieve the plans or targets, and any risks or limiting factors that might affect achievement of the plans or targets.

4 The entity shall discuss the scope of its strategies, plans or reduction targets, such as whether they pertain differently to different business units, geographies or emissions sources.

5 The entity shall discuss whether its strategies, plans or reduction targets are

5 The entity shall discuss whether its strategies, plans or reduction targets are related to, or associated with, emissions limiting or emissions reporting-based programmes or regulations (for example, the EU Emissions Trading Scheme,

Quebec Cap-and-Trade System, California Cap-and-Trade Program), including regional, national, international or sectoral programmes.

6 Disclosure of strategies, plans or reduction targets shall be limited to activities

6 Disclosure of strategies, plans or reduction targets shall be limited to activities that were ongoing (active) or reached completion during the reporting period.

Energy Management Topic Summary Containers and packaging manufacturing is energy-intensive, with energy used to power processing units, cogeneration plants, machinery and non-manufacturing facilities. The type of energy used, amount consumed and energy management strategies depend on the

type of energy used, amount consumed and energy management strategies depend on the type of products manufactured. Typically, fossil fuels such as natural gas and biomass are the predominant form of energy used, while purchased electricity also may be a significant share. Therefore, energy purchases may be a significant share of production costs. An entity’s energy mix may include energy generated on site, purchased grid

costs. An entity’s energy mix may include energy generated on site, purchased grid electricity and fossil fuels, and renewable and alternative energy. Trade-offs in the use of such energy sources include cost, reliability of supply, related water use and air emissions, and regulatory compliance and risk. As such, an entity’s energy intensity and energy sourcing decisions may affect its operating efficiency and risk profile over time.

Metrics

energy sourcing decisions may affect its operating efficiency and risk profile over time.

Metrics RT-CP-130a.1. (1) Total energy consumed, (2) percentage grid electricity,

(3) percentage renewable and (4) total self-generated energy 1 The entity shall disclose (1) the total amount of energy it consumed as an aggregate figure, in gigajoules (GJ).

1.1

The scope of energy consumption includes energy from all sources,

including energy purchased from external sources and energy produced by

including energy purchased from external sources and energy produced by the entity itself (self-generated). For example, direct fuel usage, purchased electricity, heating, cooling and steam energy all are included within the scope of energy consumption.

1.2

The scope of energy consumption includes only energy directly consumed by the entity during the reporting period.

1.3

In calculating energy consumption from fuels and biofuels, the entity shall

1.3

In calculating energy consumption from fuels and biofuels, the entity shall use higher heating values (HHV), also known as gross calorific values (GCV), which are measured directly or taken from the Intergovernmental Panel on Climate Change (IPCC).

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 7

2 The entity shall disclose (2) the percentage of energy it consumed that was supplied from grid electricity.

2.1

The percentage shall be calculated as purchased grid electricity consumption divided by total energy consumption.

3 The entity shall disclose (3) the percentage of energy it consumed that was renewable energy.

3.1

Renewable energy is defined as energy from sources that are replenished at a rate greater than or equal to their rate of depletion, such as

at a rate greater than or equal to their rate of depletion, such as geothermal, wind, solar, hydro and biomass.

3.2

The percentage shall be calculated as renewable energy consumption divided by total energy consumption.

3.3

The scope of renewable energy includes renewable fuel the entity consumed, renewable energy the entity directly produced and renewable energy the entity purchased, if purchased through a renewable power purchase agreement (PPA) that explicitly includes renewable energy

purchase agreement (PPA) that explicitly includes renewable energy certificates (RECs) or Guarantees of Origin (GOs), a Green‐e Energy Certified utility or supplier programme, or other green power products that explicitly include RECs or GOs, or for which Green‐e Energy Certified RECs are paired with grid electricity.

3.3.1

For any renewable electricity generated on site, any RECs and GOs shall be retained (not sold) and retired or cancelled on behalf of the

shall be retained (not sold) and retired or cancelled on behalf of the entity for the entity to claim them as renewable energy.

3.3.2

For renewable PPAs and green power products, the agreement shall explicitly include and convey that RECs and GOs be retained or replaced and retired or cancelled on behalf of the entity for the entity to claim them as renewable energy.

3.3.3

The renewable portion of the electricity grid mix outside of the

3.3.3

The renewable portion of the electricity grid mix outside of the control or influence of the entity is excluded from the scope of renewable energy.

3.4

For the purposes of this disclosure, the scope of renewable energy from biomass sources is limited to materials certified to a third-party standard (for example, Forest Stewardship Council, Sustainable Forest Initiative,

Programme for the Endorsement of Forest Certification or American Tree

Programme for the Endorsement of Forest Certification or American Tree Farm System), materials considered eligible sources of supply according to the Green-e Framework for Renewable Energy Certification, Version 1.0 (2017) or Green-e regional standards, or materials eligible for an applicable jurisdictional renewable portfolio standard.

4 The entity shall disclose (4) the amount of energy self-generated as an aggregate figure, in gigajoules (GJ).

4.1

figure, in gigajoules (GJ).

4.1

The entity may disclose the amount of self-generated energy sold to an electric utility or end-use customer.

IFRS S2 INDUSTRY-BASED GUIDANCE 8© IFRS Foundation

5 The entity shall apply conversion factors consistently for all data reported under this disclosure, such as the use of HHVs for fuel usage (including biofuels) and conversion of kilowatt hours (kWh) to GJ (for energy data including electricity from solar or wind energy).

Water Management Topic Summary Containers and packaging manufacturing requires water for various stages of production including in raw materials processing, process cooling and steam generation at on site

including in raw materials processing, process cooling and steam generation at on site cogeneration plants. Long-term historical increases in water scarcity and cost, and expectations of continued increases—because of over-consumption and reduced supplies resulting from population growth and shifts, pollution and climate change—show the importance of water management. Water scarcity may result in a higher risk of

importance of water management. Water scarcity may result in a higher risk of operational disruption for entities with water-intensive operations, and can increase water procurement costs and capital expenditures. Meanwhile, containers and packaging manufacturing may generate process wastewater that must be treated before disposal.

Non-compliance with water quality regulations may result in regulatory compliance and

Non-compliance with water quality regulations may result in regulatory compliance and mitigation costs or legal expenses stemming from litigation. Reducing water use and consumption through increased efficiency and other water management strategies may result in lower operating costs over time and may mitigate financial effects of regulations, water supply shortages and community-related disruptions of operations.

Metrics

regulations, water supply shortages and community-related disruptions of operations.

Metrics RT-CP-140a.1. (1) Total water withdrawn, (2) total water consumed; percentage of each in regions with High or Extremely High Baseline Water Stress 1 The entity shall disclose the amount of water, in thousands of cubic metres,

withdrawn from all sources.

1.1

Water sources include surface water (including water from wetlands,

rivers, lakes and oceans), groundwater, rainwater collected directly and

rivers, lakes and oceans), groundwater, rainwater collected directly and stored by the entity, and water and wastewater obtained from municipal water supplies, water utilities or other entities.

2 The entity may disclose portions of its supply by source if, for example, significant portions of withdrawals are from non-freshwater sources.

2.1

Fresh water may be defined according to the local laws and regulations where the entity operates. If no legal definition exists, fresh water shall be

where the entity operates. If no legal definition exists, fresh water shall be considered to be water that has less than 1,000 parts per million of dissolved solids.

2.2

Water obtained from a water utility in compliance with jurisdictional drinking water regulations can be assumed to meet the definition of fresh water.

3 The entity shall disclose the amount of water, in thousands of cubic metres,

consumed in operations.

3.1

Water consumption is defined as:

consumed in operations.

3.1

Water consumption is defined as:IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 9

3.1.1

Water that evaporates during withdrawal, use and discharge

3.1.2

Water that is directly or indirectly included in the entity’s product or service

3.1.3

Water that does not otherwise return to the same catchment area from which it was withdrawn, such as water returned to another catchment area or the sea 4 The entity shall analyse all its operations for water risks and identify activities that withdraw and consume water in locations with High (40–80%) or Extremely

that withdraw and consume water in locations with High (40–80%) or Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct.

5 The entity shall disclose water withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn.

6 The entity shall disclose water consumed in locations with High or Extremely

6 The entity shall disclose water consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed.

RT-CP-140a.2. Description of water management risks and discussion of strategies and practices to mitigate those risks 1 The entity shall describe its water management risks associated with water withdrawals, water consumption and discharge of water or wastewater.

1.1

Risks associated with water withdrawals and water consumption include

1.1

Risks associated with water withdrawals and water consumption include risks to the availability of adequate, clean water resources, which include:

1.1.1

Environmental constraints—such as operating in water-stressed regions,drought,concerns of aquatic impingement or entrainment, interannual or seasonal variability, and risks from the impact of climate change

1.1.2

Regulatory and financial constraints—such as volatility in water costs, stakeholder perceptions and concerns related to water

costs, stakeholder perceptions and concerns related to water withdrawals (for example, those from local communities, non-

governmental organisations and regulatory agencies), direct competition with and impact from the actions of other users (for example, commercial and municipal users), restrictions to withdrawals because of regulations, and constraints on the entity’s ability to obtain and retain water rights or permits

1.2

ability to obtain and retain water rights or permits

1.2

Risks associated with the discharge of water or wastewater include the ability to obtain rights or permits related to discharges, regulatory compliance related to discharges, restrictions to discharges, the ability to maintain control over the temperature of water discharges, liabilities,

reputational risks and increased operating costs because of regulation,

stakeholder perceptions and concerns related to water discharges (for

stakeholder perceptions and concerns related to water discharges (for example, those from local communities, non-governmental organisations and regulatory agencies).

2 The entity may describe water management risks in the context of:IFRS S2 INDUSTRY-BASED GUIDANCE 10© IFRS Foundation

2.1

How risks may vary by withdrawal source, including surface water (including water from wetlands, rivers, lakes and oceans), groundwater,

rainwater collected directly and stored by the entity, and water and wastewater obtained from municipal water supplies, water utilities or other entities; and

2.2

How risks may vary by discharge destinations, including surface water,

groundwater or wastewater utilities.

3 The entity may discuss the potential effects that water management risks may

3 The entity may discuss the potential effects that water management risks may have on its operations and the time line over which such risks are expected to manifest.

3.1

Effects include those associated with costs, revenue, liabilities, continuity of operations and reputation.

4 The entity shall discuss its short- and long-term strategies or plans to mitigate water management risks, which include:

4.1

The scope of its strategy, plans, goals or targets, such as how they relate to

4.1

The scope of its strategy, plans, goals or targets, such as how they relate to various business units, geographies or water-consuming operational processes.

4.2

Any water management goals or targets it has prioritised, and an analysis of performance against those goals or targets.

4.2.1

Goals and targets include those associated with reducing water withdrawals,reducing water consumption,reducing water discharges, reducing aquatic impingements, improving the quality

water consumption,reducing water discharges, reducing aquatic impingements, improving the quality of water discharges and regulatory compliance.

4.3

The activities and investments required to achieve the plans, goals or targets, and any risks or limiting factors that might affect achievement of the plans or targets.

4.4

Disclosure of strategies, plans, goals or targets shall be limited to activities that were ongoing (active) or reached completion during the reporting period.

5

that were ongoing (active) or reached completion during the reporting period.

5 For water management targets, the entity shall additionally disclose:

5.1

Whether the target is absolute or intensity-based, and the metric denominator if it is an intensity-based target.

5.2

The time lines for the water management activities, including the start year, the target year and the base year.

5.3

The mechanism(s) for achieving the target, including:

5.3.1

5.3

The mechanism(s) for achieving the target, including:

5.3.1

Efficiency efforts, such as the use of water recycling or closed-loop systems;

5.3.2

Product innovations, such as redesigning products or services to require less water;

5.3.3

Process and equipment innovations, such as those that enable the reduction of aquatic impingements or entrainments;

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 11

5.3.4

Use of tools and technologies (for example, the World Wildlife Fund Water Risk Filter, the Global Water Tool and Water Footprint Network Footprint Assessment Tool) to analyse water use, risks and opportunities; and

5.3.5

Collaborations or programmes in place with the community or other organisations

5.4

The percentage reduction or improvement from the base year, in which the base year is the first year against which water management targets are

the base year is the first year against which water management targets are evaluated towards the achievement of the target.

6 The entity shall discuss whether its water management practices result in any additional lifecycle impacts or trade-offs in its organisation, including trade-offs in land use, energy production and greenhouse gas (GHG) emissions, and why the entity chose these practices despite lifecycle trade-offs.

entity chose these practices despite lifecycle trade-offs.

RT-CP-140a.3. Number of incidents of non-compliance associated with water quality permits, standards and regulations 1 The entity shall disclose the total number of incidents of non-compliance,

including violations of a technology-based standard and exceedances of quantity or quality-based standards.

2 The scope of disclosure includes incidents governed by applicable jurisdictional

2 The scope of disclosure includes incidents governed by applicable jurisdictional statutory permits and regulations, which include the discharge of a hazardous substance, violation of pre-treatment requirements or total maximum daily load (TMDL) exceedances.

3 The scope of disclosure shall only include incidents of non-compliance that resulted in a formal enforcement action(s).

3.1

Formal enforcement actions are defined as governmental actions that

3.1

Formal enforcement actions are defined as governmental actions that address a violation or threatened violation of water quantity or quality laws, regulations, policies or orders, and can result in administrative penalty orders, administrative orders and judicial actions, among others.

4 Violations shall be disclosed, regardless of their measurement methodology or frequency. These include violations for:

4.1

Continuous discharges, limitations, standards and prohibitions that are

4.1

Continuous discharges, limitations, standards and prohibitions that are generally expressed as maximum daily, weekly and monthly averages; and

4.2

Non-continuous discharges, limitations that are generally expressed in terms of frequency, total mass, maximum rate of discharge and mass or concentration of specified pollutants.

Waste Management Topic Summary Containers and packaging manufacturing may generate hazardous process waste which

Topic Summary Containers and packaging manufacturing may generate hazardous process waste which may include heavy metals, spent acids, catalysts and wastewater treatment sludge.

Entities face regulatory and operational challenges in managing waste because some wastes are subject to regulations pertaining to its transport, treatment, storage and IFRS S2 INDUSTRY-BASED GUIDANCE 12© IFRS Foundation

disposal. Waste management strategies include reduced generation, effective treatment and disposal, and recycling and recovery, if possible. Such activities, while requiring initial investment or operating costs, may reduce an entity’s long-term cost structure and mitigate the risk of remediation liabilities or regulatory penalties.

Metrics RT-CP-150a.1 Amount of waste generated, percentage hazardous and percentage recycled 1

Metrics RT-CP-150a.1 Amount of waste generated, percentage hazardous and percentage recycled 1 The entity shall calculate and disclose the total amount of hazardous waste generated, in metric tons.

1.1

Hazardous wastes are defined in accordance with the applicable jurisdictional legal or regulatory framework(s) where the waste was generated.

2 The entity shall calculate and disclose the percentage of hazardous waste recycled

generated.

2 The entity shall calculate and disclose the percentage of hazardous waste recycled as the total weight of hazardous waste generated that was recycled, divided by the total weight of hazardous waste generated.

2.1

Hazardous waste that is reused, reclaimed or remanufactured shall be considered within the scope of recycled.

2.2

Recycled, reused, reclaimed and remanufactured hazardous waste is defined in accordance with the applicable jurisdictional legal or regulatory

defined in accordance with the applicable jurisdictional legal or regulatory framework(s) where the waste was generated.

2.3

Materials incinerated, including for energy recovery, shall not be considered within the scope of recycled.

2.3.1

Energy recovery is defined as the use of combustible waste to generate energy through direct incineration, with or without other waste, but with recovery of the heat.

2.3.2

The entity may separately disclose the percentage of hazardous

2.3.2

The entity may separately disclose the percentage of hazardous waste generated that was incinerated.

3 The entity may use the United Nations Environmental Programme (UNEP) Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal for the purposes of defining hazardous waste or recycled hazardous waste for operations located in jurisdictions that lack applicable legal or regulatory definitions.

4

or regulatory definitions.

4 The entity shall disclose the legal or regulatory framework(s) used to define hazardous waste and recycled hazardous waste, and the amounts defined in accordance with each applicable framework.

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 13

Supply Chain Management Topic Summary Containers and packaging manufacturing uses large quantities of raw materials including wood fibre and aluminium. Sustainable production of these materials is an important supply chain consideration for entities in the industry because adverse environmental impacts could increase materials costs and affect the brand value of entities. To mitigate such risks, entities may implement supply chain vetting practices

entities. To mitigate such risks, entities may implement supply chain vetting practices and implement third-party standards within internal operations and suppliers that certify that the materials were produced in a sustainable manner. Additionally, such actions may raise brand value and meet customer demand for sustainably produced packaging products, providing access to new markets and growth opportunities.

Metrics RT-CP-430a.1. Total wood fibre procured; percentage from certified sources 1

Metrics RT-CP-430a.1. Total wood fibre procured; percentage from certified sources 1 The entity shall disclose the total weight (in metric tons) of wood-fibre-based raw materials procured during the reporting period.

1.1

The scope of raw materials includes all inputs processed to be sold as a finished good, including recycled raw materials, virgin raw materials and goods consumed directly in the production process.

2

goods consumed directly in the production process.

2 The percentage shall be calculated as the total weight (in metric tons) of its wood-

fibre-based raw materials certified to a responsible sourcing standard divided by the total weight (in metric tons) of wood-fibre-based raw materials, if responsible sourcing certifications include those promulgated by the following organisations (or an equivalent):

2.1

American Tree Farm System (ATFS)

2.2

(or an equivalent):

2.1

American Tree Farm System (ATFS)

2.2

Forest Stewardship Council (FSC) (FSC 100% label and FSC Mixed Sources and FSC Recycled labels)

2.3

Programme for the Endorsement of Forest Certification (PEFC) (PEFC Certified and PEFC Recycled labels)

2.4

Sustainable Forest Initiative (SFI) (SFI Chain of Custody and SFI Certified Sourcing labels) 3 The entity may disclose separately the percent of fibre that is certified to each

3 The entity may disclose separately the percent of fibre that is certified to each relevant responsible sourcing standard (for example, FSC, SFI, PEFC and ATFS) and relevant standards (for example, FSC 100% label, FSC Mixed Sources and FSC Recycled labels, SFI Chain of Custody and SFI Certified Sourcing labels, and PEFC Certified and PEFC Recycled labels).

4 Wood fibre certified to more than one standard shall be accounted for by the entity only once.

4 Wood fibre certified to more than one standard shall be accounted for by the entity only once.

RT-CP-430a.2. Total aluminium purchased; percentage from certified sources 1 The entity shall disclose the total weight (in metric tons) of aluminium-based raw materials purchased during the reporting period.

IFRS S2 INDUSTRY-BASED GUIDANCE 14© IFRS Foundation

1.1

The scope of raw materials includes all inputs processed to be sold as a finished good, including recycled raw materials, virgin raw materials and goods that will be consumed directly in the production process.

2 The percentage shall be calculated as the total weight (in metric tons) of its aluminium based raw materials certified to a responsible sourcing standard divided by the total weight of aluminium based raw materials.

3

divided by the total weight of aluminium based raw materials.

3 Responsible sourcing certification includes that promulgated by the Aluminium Stewardship Initiative (ASI) (Performance Standard Version 1 and Chain of Custody Standard Draught 2) or certification to an equivalent standard.

4 Aluminium certified to more than one standard shall be accounted for by the entity only once.

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 15

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