Driven by purpose
Our approach to sustainability is embodied by our purpose “We commit to making food safe and available, everywhere, and we promise to protect what’s good: food, people, and the planet”.
Our purpose guides our business decisions, unifies our people, and continues to be the driving force behind our innovations. It is central to our Strategy 2030 and its four pillars of quality, sustainability, integration and optimisation, and innovation.
Our approach to sustainability takes into consideration the expectations of our stakeholders, and the environmental, social and governance (ESG) topics that are most material to our industry. At the heart of our sustainability approach, we consider the interconnections and interdependencies of five focus areas, which are aligned with our purpose and where Tetra Pak can contribute the most: food systems1, nature, climate, circularity, and social sustainability.
Our sustainability priorities
Tetra Pak remains committed to monitoring, managing, and reporting on our five focus areas. As part of this commitment to openness and transparency, we regularly conduct a formal, materiality assessment to ensure we are addressing those topics of greatest relevance, for our customers, business, society, and the environment.
In 2023 we conducted our first Double Materiality Assessment (DMA) with the support of a third party, in line with guidance from the EU Corporate Sustainability Reporting Directive (CSRD) and the underlying European Sustainability Reporting Standards (ESRS). The DMA was conducted in four phases: understanding, identification, assessment, and determination. Read more about the objectives and key activities performed within each phase below.
Our DMA resulted in a list of material impacts that Tetra Pak has on people and the environment (impact materiality) as well as material risks and opportunities that various ESG topics have on Tetra Pak’s business (financial materiality). These material impacts, risks and opportunities (IROs) have been grouped under 21 material topics in connection with Tetra Pak’s sustainability agenda which help structure our sustainability statements within our FY23 Sustainability Report.
In 2024 we plan to refine our DMA methodology and assessment considering our learnings from our first assessment and the draft ‘Implementation Guidance’ published by EFRAG in December 2023.
Process of our double materiality assessment
Phase 1
Understanding
Create understanding of Tetra Pak’s value chain activities and stakeholders, and gather relevant information sources
We mapped relevant business activities across our value chain and collected relevant information sources, such as our risk register, sustainability assessments and stakeholder engagement.
Phase 2
Identification
Identify actual and potential impacts, risks and opportunities (IROs), and map to the business activities in our value chain and the ESRS topics
Impacts: Drawing on insights from our ongoing affected stakeholder engagement due diligence processes for human rights and environment, and sustainability assessments, we listed actual and potential impacts by ESRS standard. Internal topic experts reviewed lists to identify any additional impacts. Impacts (actual/ potential, negative/positive)2 were identified across the value chain – taking short, medium and long-term timeframes3 into account.
Risks: We listed sustainability-related risks from our company risk register.
Opportunities: Opportunities identified in our strategy process and programmes related to sustainability were listed.
Phase 3
Assessment
Assess materiality for all identified IROs, resulting in impact materiality scores for impacts and financial materiality scores for risks and opportunities
Impacts: Drawing on the sources of due diligence processes and assessments, internal subject matter experts assessed impact materiality based on severity (scale, scope, irremediability) and likelihood.4 Severity of impacts were calculated using the formula: (scale + scope + irremediability)/3.
Risks: Financial materiality is based on potential financial effect, and likelihood6 in line with our risk register.
Opportunities: Financial materiality was assessed based on potential financial effect, and likelihood, in line with the Business Units’ three-year and long-term growth plans.
Phase 4
Determination
Determine material IROs based on a threshold for impact and financial materiality
To determine the material IROs along our value chain, we used topic- specific thresholds, based on both the materiality scores of the full list of IROs and our internal experts’ qualitative judgement. A total of 45 IROs were determined to be material. These 45 material IROs were grouped into 21 material topics under our five sustainability agenda areas to help structure sustainability reporting and strategic discussions.
Our material topics
The DMA process involved identifying and assessing the material impacts that Tetra Pak has on people and the environment – called impact materiality – and the material risks and opportunities that various ESG topics have on our business, referred to as financial materiality. These material impacts, risks and opportunities (IROs) were grouped under 21 material topics related to the five areas of our sustainability agenda.
How we verify our sustainability approach
Verification is essential to our sustainability process. Our GHG emissions data has received third-party limited assurance since 2013, and our direct operations water data has received limited assurance by a third party since 2023. Our FY24 Sustainability Report is prepared using the latest ESRS as a foundation for our disclosures.
See our GHG and Water Inventory report
We are working with our financial auditors on building confidence in our approach to sustainability reporting to gain limited assurance on our first CSRD reporting in 2028.
We also have an Advisory Panel, formed in 2020, to provide independent strategic insight, guidance and assistance focused on sustainability and innovation in pursuit of Tetra Pak’s purpose. The panel comprises independent external advisors, who were selected based on their range of experience and expertise deemed necessary to shape and inform a pioneering sustainability agenda that will help us achieve our sustainability goals, including our ultimate ambition to create the world’s most sustainable food package5.
Tetra Pak's Sustainability Leadership
Tetra Pak’s overall sustainability direction, including ambitions, targets and commitments, is led by the Sustainability Leadership Team, chaired by the Executive Vice President of Sustainability of the Tetra Pak Group, and governed by the Executive Leadership Team (ELT), chaired by the President and CEO of Tetra Pak.
1The term ‘food systems’ refers to all the elements and activities related to producing and consuming food, and their effects, including economic, health, and environmental outcomes (OECD, https://www.oecd.org/food-systems, 2023).
2Positive Impacts: These refer to beneficial effects that an undertaking has or could have on people or the environment. Positive impacts can be either actual or potential Negative Impacts: These are adverse effects that an undertaking has or could have on people or the environment. Negative impacts can be actual or potential, short-term or long-term, intended or unintended, and reversible or irreversible Actual Impacts: These are impacts that have occurred or are occurring as a result of the undertaking’s activities or its business relationships Potential Impacts: These are impacts that could occur but have not yet materialised. They represent possible future effects resulting from the undertaking’s activities or its business relationships
3Timeframes used were – short term = < 1 year, medium term = 1-5 years, long-term = > 5 years
4Scale – how severe or beneficial the impact is or would be for people or the environment. Scope – how widespread the impact is, based on extent of the damage or amount of stakeholders affected. Irremediability – when the impact is negative, how hard it is to counteract or remedy the harm (N/A for positive impacts). Likelihood – chance of a potential impact occurring (always scored as ‘certain’ for actual impacts)
5This means creating cartons that are fully made of renewable or recycled materials, that are responsibly sourced, therefore helping protect and restore our planet's climate, resources and biodiversity; contributing towards carbon-neutral production and distribution; are convenient and safe, therefore helping to enable a resilient food system; are fully recyclable.