INTERVIEW

Emmanouil Gitsis, Sustainability Ecosystem Engagement Mgr, Avery Dennison

 

What are the key components of your organization’s sustainability strategy, and how do they align with your overall business goals? Is there any challenge specific to your industry?

At Avery Dennison, we put sustainability at the core of everything we do. We have been pushing our efforts across all angles of sustainability for over a decade now and we have set up targets in 2018 in line with the Paris Agreement.

 

Our 2030 sustainability strategy is built on three key pillars: advancing the circular economy, reducing environmental impact, and fostering positive change. Working toward a fully sustainable future while supporting the communities in which we operate is critical to the long-term health of our business strategy and culture.

 

We use our resources, operational experience and creativity to drive better outcomes for our industries,customers, team and world. Last year, we made further progress reducing our
environmental footprint, expanding our portfolio of sustainability-oriented products, and advancing our diversity, equity and inclusion efforts. We are proud to say we are on track to
achieving our 2025 sustainability goals and have accelerated our plans to deliver our 2030 goals.

Can you describe the specific steps your organization is taking to transition from traditional business/ business as usual practices to more sustainable ones?

Avery Dennison is actively shifting towards more sustainable practices through several key initiatives. We are investing in innovative solutions, including products made from recycled and bio-based materials, and embracing circular economy principles to extend product life cycles and improve recyclability. For example, we are developing products that will enable recycling of each packaging type. We have solutions that enable plastic, fiber-based and glass packaging recycling. Our AD CleanFlake™ technology offers a revolutionary way to create labels that are easy to separate from bottles during recycling.

 

We also aim to further reduce our environmental impact, by optimizing our manufacturing processes to minimize energy use, greenhouse gas emissions, and waste, and are investing in renewable energy. Our Luxembourg site cut natural gas consumption by 20% per square meter in 100 days by reducing waste heat, improving recuperation, eliminating steam use, and optimizing onsite processes.

How do you measure and track the progress of your sustainability initiatives, and what metrics or benchmarks do you use?

Avery Dennison publishes an annual sustainability report that details progress towards our sustainability goals. Sustainability metrics are in alignment with the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) frameworks. Furthermore, Avery Dennison annually submits reports to CDP Climate, Water, and Forests. We are a member of the United Nations Global Compact and have made commitments to the United Nations Sustainable Development Goals as well as the Science Based Targets initiative (SBTi). Our targets for reducing Scope 1, 2, and 3 greenhouse gas emissions have been validated by SBTi to be consistent with the reductions necessary to limit global warming to no more than 1.5ºC. In addition, we support the growing adoption of International Sustainability Standards Board (ISSB) standards, where we actively assess our reporting standards against ISSB standards as part of an ongoing effort towards sustainability reporting transparency.

What challenges have you encountered in the transition to a sustainable business model, and how have you addressed them?

Avery Dennison has faced a range of challenges in our transition to a sustainable business model, each requiring targeted strategies to overcome.

 

One major challenge is educating customers and the broader market about the implications of upcoming legislation changes, such as the Packaging and Packaging Waste Regulation (PPWR), and the benefits and availability of sustainable products. The regulatory landscape is constantly evolving, and keeping our customers informed and prepared is crucial. To address this, we’ve taken a proactive approach by launching comprehensive marketing campaigns, providing detailed educational resources, and engaging directly with customers through workshops and seminars. These efforts are designed to not only increase awareness but also to showcase the tangible benefits of adopting sustainable products, such as reducing environmental impact and meeting new regulatory requirements.

 

Balancing the costs of innovation with the need to maintain affordability is another challenge we face. Sustainable materials and processes often come at a higher cost compared to traditional options, which can be a barrier to both our operations and our customers. To mitigate this, we’ve made continuous investments in research and development to drive innovation that lowers costs over time. By improving operational efficiency and scaling up production, we’ve been able to reduce the cost differential. Additionally, we work closely with our customers to demonstrate the long-term value and return on investment that sustainable products offer, helping to justify the initial higher costs.

 

Overall, while the transition to a sustainable business model presents significant challenges, we are committed to overcoming them through innovation, collaboration, and a steadfast focus on our long-term sustainability goals. Our approach ensures that we not only meet regulatory requirements but also lead the industry in sustainable practices that benefit both our business and the planet.

How do you engage and motivate your employees, customers, suppliers and other relevant stakeholders, to support and participate in your sustainability efforts?

Avery Dennison fosters a culture of sustainability by integrating it into our core values and offering training programs that empower employees to contribute ideas and take action. ‘’Sustainability training sprints’’ are organized on key sustainability topics that impact day-to-day business, including PPWR, Deforestation Act and greenwashing and Scope 1, 2, 3 emission.

 

We also collaborate with customers by showcasing the benefits of our sustainable products and providing solutions that align with their sustainability goals and sharing success stories and case studies to demonstrate the positive impact of our collaborations. In addition our “AD Stretch Accelerator” program seeks innovators and founders to partner on solving real business challenges and creating impactful, sustainable solutions.

What do you consider will be the most pressing challenges that the company will need to address in the next 5 years in order to maintain economic performance while also achieving sustainability goals? (For example, economic/geopolitical instability, energy prices, climate change, limited natural resources, talent acquisition and retention, supply chain issues, global conflicts, etc.)

In the next five years, Avery Dennison anticipates key challenges, including sourcing sustainable materials, adapting to evolving regulations like PPWR, managing energy costs, and balancing innovation expenses. Despite these challenges, we view them as opportunities to lead and innovate in our industry. By strengthening our supply chain partnerships and investing in cutting-edge technologies, we are committed to ensuring a steady and scalable supply of sustainable materials. We are proactively educating ourselves and adapting to regulatory changes, ensuring compliance while driving forward with our sustainability initiatives. We are also focusing on enhancing energy efficiency and exploring renewable energy solutions to manage energy costs effectively. Our continued investment in research and development will drive innovation and position us as an industry leader. Embracing these challenges with a forward-thinking approach allows us to maintain economic performance while achieving our ambitious 2030 sustainability goals and advancing our role as a leader in the industry.