2019 Sustainability Report

Why Cradle to Cradle Manufacturing, Reconditioning, Reuse & Recycling Matters

Greif actively manages the Cradle to Cradle life cycle of industrial packaging through manufacturing, reconditioning, reuse and recycling to advance circular economy principles. We work with our customers, and even their customers, to produce new packages and products that build economic, environmental and social capital. Our Cradle to Cradle management through manufacturing, reconditioning, reuse and recycling solutions help divert waste from landfills while strengthening relationships within our supply chain. As the demand for sustainable solutions increases, our collaborative efforts with our suppliers and our customers, enable us all to reach our collective sustainability goals.

Greif Recycling Operations

Governance

We provide end-of-life services through a program called EarthMinded Life Cycle Services (LCS), which leverages a network of Greif joint-venture owned and other third-party owned and operated facilities in EMEA and North America, including Container Life Cycle Management LLC (CLCM)*. Participant reconditioners in the network collect used, empty, plastic, steel and Intermediate Bulk Containers (IBC). Flexible Intermediate Bulk Containers (FIBCs) are recollected in EMEA through our wholly owned subsidiary, Rebu. The collected containers are reconditioned so they are suitable for reuse and then reintroduced into trade. The reconditioned containers reduce the demand for new containers and demand for virgin raw materials, while decreasing the number of containers that go to landfill. If a container cannot be reconditioned, the materials are recycled for use into other products. Across our reconditioning operations, we reconditioned, remanufactured, or recycled more than 4.3 million containers and managed over 4 million tons of recycled paper fibre in 2019.

Many of Greif’s largest customers use the EarthMinded LCS network to recondition their containers. Customers who use the network can access real-time reports through EcoTrack and the Greif Green Tool, which enables customers to quantify performance by tracking key indicators like carbon impact and weight of reused and recycled materials.

In 2019, we took a number of deliberate steps to better integrate and align our reconditioning operations into the overall Greif business, beginning with instating a General Manager to oversee all EarthMinded LCS and CLCM operations. The General Manager is tasked with implementing Greif’s policies, procedures, training and business objectives throughout the network. The network is now also operating on many of Greif’s IT systems, including our Compliance Management System (please see the Environmental Management Systems section of our report for additional information). We established a three-year strategy that is well-aligned to the needs we see in the reconditioning market and Greif’s strategic objectives. As part of this strategy, we will be working in 2020 and beyond to expand our return program, build our capabilities across multiple packaging materials and enhance our IBC services.

Our new management structure will allow us to improve our management of social and environmental issues that have the potential to impact the communities in which we operate. Since 2017, CLCM has been actively addressing the concerns of the St. Francis community and applicable regulators related to odor and alleged health and safety violations (many of which CLCM disputes) at a reconditioning facility operating under the trade name “Mid America Steel Drum.” CLCM’s history of engagement with the community and regulators and actions taken to address their concerns, are available at CLCMWI.com. In 2019 CLCM initiated use of a regenerative thermal oxidizer (RTO) at the St. Francis facility intended to reduce odors emanating from the site’s operations. Thermal oxidation is recognized as the most effective way to destroy odor-causing compounds and is commonly used throughout the United States for a wide variety of processes. CLCM is one of the first industrial packaging reconditioners to adopt this technology. CLCM is continuing to engage with local officials to endeavor to maintain positive relations with the community and continue to identify areas for improvement.

Our commitment to enhancing our IBC services expands outside of North America. In 2019, we took a majority stake in Tholu, an IBC rebottling, reconditioning and distribution company serving the EMEA region. We will also be working with our new colleagues that have joined Greif through the Caraustar acquisition to improve our capabilities to provide reconditioning services for fibre containers.

Greif’s acquisition of Caraustar vastly expanded our recycling footprint and operational capabilities. Greif now operates 20 recycling facilities, offers complete outsourcing solutions for plastics, pulp and  paper fibre procurement, transportation and administration and provides complete paper fibre audit and management solutions. 98 percent of the products we handle, by volume, is paper fibre. Our paper fibre recycling operations collect paper fibre for use in our own containerboard mills and for sale to other containerboard manufacturers or converters. Because of our integrated capabilities, Greif now holds a central position in the paper recycling industry and operates as a net positive recycler. Approximately 50 percent of the fibre we collect is used in our own operations to manufacture paper products for use in consumer and industrial settings. The remaining 50 percent of the fibre we collect is sold to external converters for use in their own operations. Over 90 percent of the fibre we use in our paper manufacturing is from 100 percent recycled inputs.  

We are proud to be able to offer these services, however global demand for fibre from converters is falling and driving commodity prices down. For many recyclers, the cost of collecting fibre is now higher than its commodity price. Many users of recycling services, including municipalities, have not yet realized or adjusted to the costs that may be required to continue offering these services. Through our sales force and participation in various industry groups, we are doing our part to educate the market on the dynamics of the changing industry to ensure this remains a viable business for ourselves and our peers. As a collector, converter, and supplier of fibre, Greif is well positioned to continue to operate profitably as the market adjusts to these changing dynamics.

Beyond our Paper Packaging & Services (PPS) operations, the use of recycled plastics plays an important role in our business. In our Rigid Industrial Packaging & Services (RIPS) business, all of our plastic products globally are 100 percent recyclable and 100 percent of our internal regrind plastic is reused to be incorporated back into our products. Internal regrind accounts for approximately 20 percent of our drums and IBCs.

We use recycled steel where possible. Globally, steel products were made from a minimum of 15 percent recycled steel in 2019. In North America, steel products were made from a minimum of 33 percent recycled steel. 

In our Flexible Packaging & Services (FPS) business, 90 percent of our internal scrap is recycled by ourselves and the balance is sold to recycling companies. There is approximately 7 percent recycled plastics (internal scrap) in our FPS plastics products.

Cradle-to-cradle and the use of recycled products are just two components of our circular economy strategy that spans across our operations and value chain. As part of that strategy, we are working to drive circular economy principles in four key areas:

• Reducing raw material use
• Waste reduction and reducing natural resource use
• Innovation and increasing recyclability, and use of recycled materials, in our products
• End-of-life

Please see the Supply Chain Management, Waste and Innovation pages of our report for more information about how our circular economy strategy spans our entire business.

In 2020, we will continue to engage customers on packaging innovation and partner to develop new reconditioning solutions. Greif will develop the appropriate tools to educate and encourage our customers to ensure empty packaging is disposed of in a sustainable fashion. This includes engaging customers at conferences and other events. Greif is continually evaluating partners who can both manage collection and ensure Greif’s safety standards so we can support our customers’ goals and to better offer a truly global reconditioning service. Currently, we are building the infrastructure to respond to demand, particularly as the global market continues to evolve to meet consumer expectations for sustainable products and operations.

Goals & Progress

Our end-of-life efforts support our 2025 supply chain, waste and innovation goals.

Performance

EARTHMINDED LIFE CYCLE SERVICES - ESTIMATED DRUMS AND IBCS RECONDITIONED*

1. Virgin Materials Saved by Reconditioning and Reuse data has been restated to standardize units across regions

REBU – ESTIMATED Flexible Intermediate Bulk Containers (FIBCs) RECONDITIONED Europe, Middle East and Africa