GRI 305-1, 305-2, 305-3, 305-5
Climate action
(0.5% increase compared to 2023)
20.9% greenhouse gas emission reduction from our value chain compared to base year 2021
Our goal to reduce emissions in our value chain by 50% by 2030, touches upon 6 out of 8 Sustainable Packaging criteria.
Goal
Reduce absolute scope 1 and 2 greenhouse gas emissions 50% by 2030, from base year 2021, and reduce scope 3 greenhouse gas emissions 50% within the same timeframe. [SBTi validated]
In base year 2021, 362,976 t CO2e was emitted in LC Packaging’s value chain. Meaning that by 2030, no more than 181,488 t CO2e may be emitted in our value chain.
Baseline
Royal LC Packaging’s emission reduction goal includes the company’s full operations and value chain, which includes the direct (Scope 1) and indirect emissions (Scope 2 and 3) of all our sales offices and warehouses, and our FIBC production facilities in Bangladesh and South Africa.
Scope
In 2024, 287,172 t CO2e was emitted in our value chain. This means a decrease of 20.9% compared to base year 2021, and an increase of 0.5% compared to 2023.
Progress on goal
The visual shows the results for 2024 and the progress on our emission reduction goal compared to 2021, divided into scope 1, 2 and 3 categories (direct and indirect emissions).
A summary of the results in 2024:
Emissions related to ‘purchased goods and services’ decreased by 21.9% compared to base year 2021, and emissions related to ‘end-of-life of sold products’ decreased by 22.4%. A substantial decrease in product sales compared to base year 2021 drove the main reduction in emissions, as these categories are closely linked to sales and contribute most to the greenhouse gas inventory. In addition, emission intensity for most materials decreased in the EcoInvent database used to calculate emissions.
The total emissions for scope 1 and 2 stayed relatively stable. There was a slight increase of 1.8% compared to base year 2021. Scope 1 emissions decreased by 13.2% compared to 2021, while scope 2 emissions increased by 28.7%. This is because joint-venture production facility Dutch-Bangla Pack (DBPL) – responsible for over 80% of total scope 1 and 2 emissions – had to use more electricity from the grid, instead of its own generators, while the emission intensity of the Bangladesh grid increased. Scope 2 emissions decreased by 3.4% compared to 2023 because more renewable electricity was purchased and installed on LC Packaging premises.
As scope 1 emissions have been reduced, emissions related to ‘fuel and energy related activities’ have also been reduced (-22.2%).
Emissions related to ‘upstream transportation and distribution’ decreased by 3.4% compared to 2021 due to fewer shipments. As data quality for transport was low in 2024, most data was extrapolated from 2023.
In 2021, COVID-related travel restrictions limited mobility. Since these constraints were lifted, we have experienced a large growth in emissions related to ‘business travel’ (+109.8%). Overall, this is still a small impact (0.04% of total 2024 emissions).
For more detailed information on greenhouse gas emissions in our value chain, high emitting areas and energy use in our operations, please refer to our 2024 Sustainability Report.
Explanation
Actions
Royal LC Packaging’s near-term, science-based greenhouse gas emission reduction targets were validated and approved by the Science Based Targets initiative (SBTi). We collected more data on the lifecycle of our products, including actual emission data from production partners. Furthermore, we have updated our climate strategy by translating our commitment into an action plan per product category.
01
01
Policies, codes, and commitments
02
Awareness and
implementation
03
Research and
development
04
Data and
reporting
Additionally, the actions mentioned in the chapter ‘Circular Economy’ lead directly to significant emissions reductions in our value chain.
We have joined the United Nations Global Compact Forward Faster Programme and have committed to contributing to a Just Transition by taking concrete actions that address social impacts of climate change mitigation and adaptation measures, in partnership with actors such as with workers, unions, communities and suppliers.
For our additional production partners, the Code of Conduct for Production Partners has been updated and distributed. Included is a commitment to reduce emissions by 2030.
All our key production partners have signed the dedicated Code of Conduct for Key Production Partners. This code includes a binding commitment to reduce scope 1 and 2 emissions 50% by 2030.
To reduce the climate impact of the transportation of our products, a Sustainable Transportation Policy was introduced, supplemented by a Code of Conduct for Logistics Partners.
Policies, codes, and commitments
Our near-term, science-based reduction targets have been validated by the Science Based Targets initiative (SBTi). > download approval letter
Our updated Energy Consumption and Greenhouse Gas Emissions Policy and Sustainable Consumption Policy were communicated and implemented.
Next steps
As looking forward is even more important than looking back, below is an overview of actions we are planning to take next.
Continue to update our climate action plan towards achieving the 50% emission reduction goal, based on new available data and research, and define missing subgoals and take necessary actions.
Conduct CO2e Product Lifecycle Assessments for our remaining product categories and where needed, define product category targets and sales KPIs in order to boost low-emission product innovation and the sales of these products.
Use our footprint calculation tool and lifecycle impact visuals to educate our customers, so that they can make climate-minded purchasing decisions. Next to our FIBCs, include the remaining main product categories in the tool.
Further improve data quality and availability, leading to more reliable data for greenhouse gas reporting and decision making.
Use energy and CO2e reporting data to support our production partners to gain insight into and easily report on emissions and reductions on an annual basis.
Implement the Logistics Supplier Code of Conduct and Sustainable Transportation Policy and – with our logistics partners – discuss and agree upon emission reduction ambitions related to transportation.
For more detailed information on the climate impact of our operations and products, please refer to our 2024 Sustainability Report.
2024 Sustainability Report
2024 Sustainability Report
GRI 305-1, 305-2, 305-3, 305-5
Additionally, the actions mentioned in the chapter ‘Circular Economy’ lead directly to significant emissions reductions in our value chain.
Climate
action
Our goal to reduce emissions in our value chain by 50% by 2030, touches upon 6 out of 8 Sustainable Packaging criteria.
In base year 2021, 274,775 MT CO2e was emitted in LC Packaging’s value chain. Meaning that by 2030, no more than 137,387 MT of CO2e may be emitted in our value chain.
Baseline
(0.5% increase compared to 2023)
20.9% greenhouse gas emission reduction from our value chain compared to base year 2021
Reduce absolute scope 1 and 2 greenhouse gas emissions 50% by 2030, from base year 2021, and reduce scope 3 greenhouse gas emissions 50% within the same timeframe. [SBTi validated]
Goal
Royal LC Packaging’s emission reduction goal includes the company’s full operations and value chain, which includes the direct (Scope 1) and indirect emissions (Scope 2 and 3) of all our sales offices and warehouses, and our FIBC production facilities in Bangladesh and South Africa.
Scope
In 2024, 287,172 t CO2e was emitted in our value chain. This means a decrease of 20.9% compared to base year 2021, and an increase of 0.5% compared to 2023.
Progress on goal
The visual shows the results for 2024 and the progress on our emission reduction goal compared to 2021, divided into scope 1, 2 and 3 categories (direct and indirect emissions).
A summary of the results in 2024:
Emissions related to ‘purchased goods and services’ decreased by 21.9% compared to base year 2021, and emissions related to ‘end-of-life of sold products’ decreased by 22.4%. A substantial decrease in product sales compared to base year 2021 drove the main reduction in emissions, as these categories are closely linked to sales and contribute most to the greenhouse gas inventory. In addition, emission intensity for most materials decreased in the EcoInvent database used to calculate emissions.
The total emissions for scope 1 and 2 stayed relatively stable. There was a slight increase of 1.8% compared to base year 2021. Scope 1 emissions decreased by 13.2% compared to 2021, while scope 2 emissions increased by 28.7%. This is because joint-venture production facility Dutch-Bangla Pack (DBPL) – responsible for over 80% of total scope 1 and 2 emissions – had to use more electricity from the grid, instead of its own generators, while the emission intensity of the Bangladesh grid increased. Scope 2 emissions decreased by 3.4% compared to 2023 because more renewable electricity was purchased and installed on LC Packaging premises.
As scope 1 emissions have been reduced, emissions related to ‘fuel and energy related activities’ have also been reduced (-22.2%).
Emissions related to ‘upstream transportation and distribution’ decreased by 3.4% compared to 2021 due to fewer shipments. As data quality for transport was low in 2024, most data was extrapolated from 2023.
In 2021, COVID-related travel restrictions limited mobility. Since these constraints were lifted, we have experienced a large growth in emissions related to ‘business travel’ (+109.8%). Overall, this is still a small impact (0.04% of total 2024 emissions).
For more detailed information on greenhouse gas emissions in our value chain, high emitting areas and energy use in our operations, please refer to our 2024 Sustainability Report.
Explanation
Actions
Royal LC Packaging’s near-term, science-based greenhouse gas emission reduction targets were validated and approved by the Science Based Targets initiative (SBTi). We collected more data on the lifecycle of our products, including actual emission data from production partners. Furthermore, we have updated our climate strategy by translating our commitment into an action plan per product category.
01
We have joined the United Nations Global Compact Forward Faster Programme and have committed to contributing to a Just Transition by taking concrete actions that address social impacts of climate change mitigation and adaptation measures, in partnership with actors such as with workers, unions, communities and suppliers.
For our additional production partners, the Code of Conduct for Production Partners has been updated and distributed. Included is a commitment to reduce emissions by 2030.
All our key production partners have signed the dedicated Code of Conduct for Key Production Partners. This code includes a binding commitment to reduce scope 1 and 2 emissions 50% by 2030.
To reduce the climate impact of the transportation of our products, a Sustainable Transportation Policy was introduced, supplemented by a Code of Conduct for Logistics Partners.
Policies, codes,
and commitments
Our near-term, science-based reduction targets have been validated by the Science Based Targets initiative (SBTi). > download approval letter
Our updated Energy Consumption and Greenhouse Gas Emissions Policy and Sustainable Consumption Policy were communicated and implemented.
02
Research
and development
Awareness
and implementation
Customers have been educated on the climate impact of our products, using lifecycle impact visuals and our FIBC footprint calculator, which allows us to calculate the exact emissions for each customer scenario.
Short-, medium- and long-term affiliate and department goals, product category targets and sales KPIs have been implemented throughout relevant parts of the organisation, in order to reduce emissions related to our own operations, and boost low-emission product innovation and the sales of these products.
A mandatory online training course on our climate commitment is available for all employees. On 31 December 2024, the course had a completion rate of 80.1%.
Following the workshops organised for employees in 2022, all new hires participate in a dedicated workshop on LC Packaging’s 2030 Ambition, including our climate commitment.
03
CO2e Product Lifecycle assessments have been conducted for Royal LC Packaging’s main product categories, to better understand the environmental impact of our products, identify the high emitting areas in their lifecycle, and identify opportunities to reduce emissions.
Included in the CO2e Product Lifecycle assessment are design scenarios, in order to make strategic sustainable product development decisions, leading to an emission reduction in the lifecycle of our products. > read more
04
Data
and reporting
Many key production partners report annually on their energy use and emissions related to the production of our products.
We have once again improved the quality and availability of data needed to calculate CO2e emissions. In particular, the quality of data related to Scope 3 categories ‘purchased goods and services’, and ‘end-of-life of sold products’ has significantly improved.
Next steps
As looking forward is even more important than looking back, below is an overview of actions we are planning to take next.
Continue to update our climate action plan towards achieving the 50% emission reduction goal, based on new available data and research, and define missing subgoals and take necessary actions.
Conduct CO2e Product Lifecycle Assessments for our remaining product categories and where needed, define product category targets and sales KPIs in order to boost low-emission product innovation and the sales of these products.
Use our footprint calculation tool and lifecycle impact visuals to educate our customers, so that they can make climate-minded purchasing decisions. Next to our FIBCs, include the remaining main product categories in the tool.
Use energy and CO2e reporting data to support our production partners to gain insight into and easily report on emissions and reductions on an annual basis.
Implement the Logistics Supplier Code of Conduct and Sustainable Transportation Policy and – with our logistics partners – discuss and agree upon emission reduction ambitions related to transportation.
For more detailed information on the climate impact of our operations and products, please refer to our 2024 Sustainability Report.
2024 Sustainability Report
2024 Sustainability Report
