Could you briefly explain what Greif does and share a bit about its history?
Greif has been in operation for over 145 years. Founded by the Greif brothers in 1877, we have grown to employ more than 13,000 people and operate over 200 plants in more than 35 countries. We were listed on the New York Stock Exchange in 1926, making us one of its oldest companies. Our primary role has always been to enable the storing and shipping of what we term "life's essentials." From the ketchup in your fridge to the oil in your car, most products people use daily have at some point been stored or shipped in our containers. Our operations span the journey from field to consumer packaging, filling a critical role in business-to-business bulk shipping.
Our packaging plays a crucial role across the supply chain. Without our products, many operations would cease to function. Many aspects of the modern supply chain rely heavily on the type of packaging solutions we provide.
Can you describe the historical environmental impact of packaging?
Historically, our first packages were wooden barrels, tying directly into the circular economy as they were made from our timberlands. Now, our focus has shifted. We currently own and operate 13 paper mills, utilizing old corrugated containers (OCC) -basically recycled boxes like boxes you receive online deliveries in - as our raw material. This recycled paper is converted into new paper and other products, completing the circular process. Beyond paper, we also produce steel and plastic packaging. We are particularly focused on full-circle plastic recycling. We have introduced life cycle services, where we collect, clean, and repurpose our plastic drums, working towards a completely circular economy for our products.
While paper recycling seems established, what challenges face plastic recycling?
The primary challenge in plastic recycling is reaching our customers' customers to collect used products. While technology exists to repurpose plastic, the collection remains a challenge. Plus, there are regulatory challenges preventing the use of post-consumer recycled (PCR) products in certain sectors, like food and pharmaceuticals. We are seeking technological solutions to overcome these barriers while complying with regulations.
Our focus is on technological innovation. We aim to develop barrier technologies to ensure safety, especially when PCR products are involved. These barriers prevent contamination between our products and the items they store. We are also working on solutions that allow the continuous reuse of our products. While some advocate for chemical recycling, which is often just burning old plastic as fuel, we believe in a more holistic circular economy approach.
Can you elaborate on Greif’s 2030 sustainability targets?
Greif's 2030 sustainability targets are comprehensive and ambitious, covering various critical aspects of our operations and contributions to the global environment and society. Our climate targets are aligned with the science-based trajectory to keep global temperature rise well below two degrees. We have made significant strides in reducing our carbon footprint and are continuously innovating to further diminish our greenhouse gas emissions.
Our waste reduction goal aims for 97% of our facilities to achieve zero waste to landfill, defined as less than 0.5% of our waste ending up in landfills. Currently, 46 of our facilities have met this stringent standard. Additionally, we have instituted circularity targets, aiming for 100% of our products to be recyclable and to increase our usage of recycled raw materials to 60% across our product lines.
How do these targets translate in terms of supply chain management?
Our supply chain targets are integral to our comprehensive sustainability goals. We are diligently working to ensure our suppliers align with our commitment to sustainability. Currently, we have assessed 51% of our suppliers from a sustainability perspective, with a goal to reach 80% by 2030.
Our approach is collaborative, recognizing the immense value in partnering with suppliers, customers, and other stakeholders to collectively advance our sustainability agenda. Each target is meticulously crafted, combining our historical data, current capabilities, and future projections to ensure they are both ambitious and achievable.
Are there geographical challenges in meeting these sustainability targets due to consumer behavior or regulatory frameworks?
Indeed, geographical variances play a significant role. Europe is generally more advanced in sustainability compared to North America, with heightened consumer awareness and more stringent regulatory frameworks. In Europe, sustainability is often a primary discussion point with customers, while in North America, particularly outside of California, it is not as prominent.
However, it is essential to recognize the dynamism in each market. While Europe has been proactive in sustainability, various factors, including subsidies and regulatory incentives, have sometimes artificially inflated progress. We believe in creating genuine, lasting change that is economically viable and does not rely heavily on temporary stimuli.
How does the cost of sustainability affect the pricing of your products, especially in relation to the recycling process of plastics?
Currently, buying post-consumer regrinds (PCR) in the open market is more expensive than purchasing virgin resin due to limited availability and heightened demand for sustainable materials.
Collaboration on sustainability projects is fundamental, where cost-saving innovations are mutually beneficial and contribute to advancing our collective sustainability objectives.
As a closing remark, what message would you like to convey to the audience regarding Greif’s commitment to sustainability?
Greif is deeply invested in the circular economy, dedicating millions annually to R&D focused on sustainable innovations. Our emphasis is on practical, economically viable solutions that enhance our products’ sustainability without imposing additional costs on our customers. We encourage more partnerships and collaborations with our customers on sustainability, moving beyond transactions to create value-added sustainable solutions.
Building on that, the global challenges we face are too monumental for isolated efforts. Real impact stems from collaborative actions involving companies, suppliers, customers, and NGOs. Our goal is to shift from dialogues to tangible actions, ushering in a new era of sustainability that is defined by collective efforts, innovative solutions, and shared objectives. We are committed to this journey and invite all stakeholders to join us in making a significant, lasting impact.
