SMURFIT KAPPA: Statement re 2021 Sustainable Development Report

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PRESS RELEASE

20(th) April 2022

Smurfit Kappa reports significant progress in its Sustainability goals

2021 Sustainable Development Report highlights reduction of over 40% in CO(2) emissions since 2005 and an improvement of over 6% year-on-year

Smurfit Kappa continues to make significant progress on achieving its sustainability goals according to its 15th Sustainable Development Report (SDR). The report highlights the company's progress towards its long-standing goal of driving change and supporting a greener planet through the three main pillars of Planet, People and Impactful Business. It shows that the company's actions are delivering today, and together with its ongoing investments and continuous improvement, it is well positioned to deliver on its long-term ambition to have net zero emissions by 2050.

Smurfit Kappa made significant progress in reducing its fossil CO(2) emission intensity in 2021. The Group is the first in its industry to have announced targeting at least net zero emissions by 2050 and, compared to its baseline year 2005, it reduced its emissions intensity by 41.3% by the end of 2021. The reduction in 2021 versus 2020 was 6%, another significant step towards its net zero target.

During 2021, Smurfit Kappa delivered several landmark achievements highlighting its continued leadership in sustainability, such as:

   -- In March, Smurfit Kappa became the first FTSE 100 company to be awarded 5 
      stars by "Support the Goals" in recognition of the Group's support of the 
      United Nations Sustainable Development Goals 
 
   -- In September, the Group launched its Green Finance Framework which was 
      accompanied by a very strong second party opinion with its product and 
      circular business model being reported as a "significant contributor" to 
      UN SDG 12 "Responsible consumption and production" 
 
   -- In September, Smurfit Kappa launched its inaugural green bond which was 
      over-subscribed multiple times and secured the lowest ever coupon for a 
      corporate issuer of its credit rating, along with strong participation 
      from "dark green" investors 
 
   -- In December, Smurfit Kappa had its emissions reduction targets validated 
      by the Science Based Target initiative (SBTi) as consistent with the 
      objectives of the Paris Agreement, and well below 2degC. This validation 
      is further evidence of its long-term ambition coupled with delivery 
      today. 
 

Tony Smurfit, Group CEO, said: "This report highlights our continued leadership in sustainability, and how it extends from our products and manufacturing into the local communities in which we operate. Our circular business model helps us to address many of the challenges our stakeholders face. With continued focus on sustainability and through close collaboration with our value chain partners, Smurfit Kappa can deliver an even greater social, economic and environmental impact."

Smurfit Kappa has published a significantly enhanced disclosure consistent with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations in its 2021 Annual Report, including a comprehensive top-down identification and process review of climate-related risks and opportunities and an evaluation of the potential impact on Smurfit Kappa assets from physical and transition risks under different climate scenarios.

Highlights from the 2021 SDR include:

   -- Social projects received EUR4.9 million during 2021 
 
   -- Reduction of 41.3% in fossil fuel emission intensity since 2005, or 6% 
      year-on-year 
 
   -- SBTi approval of its emission reduction targets in line with the Paris 
      Agreement 
 
   -- Reduction in water consumption of 6.2% year-on-year 
 
   -- Decrease in waste to landfill intensity of 29.2% since 2013, or 7% 
      year-on-year 
 

As a leader in packaging, Smurfit Kappa continues to invest in sustainability to ensure continued delivery on its long-term goals. One such example from 2021 was an investment of EUR11.5 million into a multi-fuel boiler at Smurfit Kappa's Zülpich paper mill which provides a more sustainable fuel source for generating steam and electricity. The investment will remove 55,000 tonnes of CO(2) emissions from 2022 onwards, delivering a 25% reduction of CO(2) emissions at the mill.

Commenting on the release of the report, Garrett Quinn, Chief Sustainability Officer at Smurfit Kappa, said: "Sustainability is at the heart of all we do and how we think across our business. The progress outlined in this report is testament to the dedication and commitment of everyone in our company, our increasingly circular business, the benefits of our investments and our end-to-end approach to sustainability. In Smurfit Kappa we focus on long-term ambition coupled with action and delivery today, which is evidenced throughout the 2021 SDR."

Smurfit Kappa is a leader in the circular economy providing sustainable, renewable, recyclable and biodegradable paper-based packaging solutions for over 65,000 customers.

To read more about Smurfit Kappa's sustainability targets and achievements, or to download a summary or the full version of the Sustainable Development Report please visit Smurfit Kappa's website.

-ENDS-

Media contact:

Sinead Gill

Smurfit Kappa

T: [phone]

E: [e-mail]

About Smurfit Kappa

Smurfit Kappa, a FTSE 100 company, is one of the leading providers of paper-based packaging solutions in the world, with approximately 48,000 employees in over 350 production sites across 36 countries and with revenue of EUR10.1 billion in 2021. We are located in 23 countries in Europe, and 13 in the Americas. We are the only large-scale pan-regional player in Latin America. Our products, which are 100% renewable and produced sustainably, improve the environmental footprint of our customers.

With our proactive team, we relentlessly use our extensive experience and expertise, supported by our scale, to open up opportunities for our customers. We collaborate with forward-thinking customers by sharing superior product knowledge, market understanding and insights in packaging trends to ensure business success in their markets. We have an unrivalled portfolio of paper-based packaging solutions, which is constantly updated with our market-leading innovations. This is enhanced through the benefits of our integration, with optimal paper design, logistics, timeliness of service, and our packaging plants sourcing most of their raw materials from our own paper mills.

We have a proud tradition of supporting social, environmental and community initiatives in the countries where we operate. Through these projects we support the UN Sustainable Development Goals, focusing on where we believe we have the greatest impact.

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April 20, 2022 02:00 ET (06:00 GMT)