FMN | April 25th, 2022

Smurfit Kappa Drives Change

Digital Edition Exclusive:

Fast Food Faces Packaging Lawsuits by Greg Kishbaugh M cDonald’s and Burger King are both facing lawsuits for using PFAS (per and polyfluoroalkyl substances, aka “forever chemicals”) in their packaging. Many restaurant chains have vowed to eliminate their use of PFAS over time, especially after the United States Environ-

Smurfit Kappa has released its 15th Sustainable Development Re- port (SDR). The report highlights the company’s progress toward its long-standing goal of driving change and supporting a greener planet through the three main pil- lars of Planet, People and Impact- ful Business. The report suggests the compa- ny is well positioned to deliver on its long-term ambition to have net zero emissions by 2050. Reducing Emissions Smurfit Kappa made progress in reducing its fossil CO2 emission intensity in 2021. The group an- nounced targeting at least net zero emissions by 2050 and, compared to its baseline year 2005, it reduced its emissions intensity by 41.3 per- cent by the end of 2021. The re- duction in 2021 versus 2020 was 6 percent, another step toward its net zero target. During 2021, Smurfit Kappa de- livered several key achievements, such as: • In March, Smurfit Kappa be- came the first FTSE 100 company to be awarded 5 stars by “Sup- port the Goals” in recognition of the Group’s support of the United Nations Sustainable Development Goals. • In September, the group

mental Protection Agency (EPA) announced an initiative to restrict their use last year. But many consumers believe the fast food chains are not moving quickly enough. Following a recent report from Consumer Reports that found significant levels of PFAS in several McDonald’s and Burger King packaging, three lawsuits were filed against the two chains, reported National Restaurant News . After testing more than 100 food packaging products from 24 restaurant and grocery chains, Consumer Reports found PFAS in multiple types of packaging from every retailer in

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their research — including chains that promote healthier food, such as Cava and Sweetgreen. At McDonald’s, the highest levels of chemicals were discovered in the bags for fries, cookies and Chicken McNuggets and the Big Mac container. Meanwhile, Burger King’s cookie and French toast sticks bags, Whopper wrapper and chicken nuggets bags had higher levels of PFAS than other packag- ing. Consumer Reports also noted that a McDon- ald’s Big Mac container that used paper from “re- sponsible sources” included PFAS. Taco Bell, Chick-fil-A, Arby’s, Trader Joe’s and Stop & Shop also had high levels of PFAS in some of their packaging products, according to the re- port. Other companies with lower levels included Chipotle, Panera Bread, White Castle and Whole Foods. Violating Pledge Despite the exhaustive list of retailers involved in the research, so far, the lawsuits that have been filed since the release of Consumer Reports ’ re- search have only been against McDonald’s and Burger King. A lawsuit filed in the U.S. District Court for the Southern District of Illinois alleges that McDonald’s Fast Food Packaging (Cont’d from Page 1)

has exposed consumers to high levels of PFAS that have a “host of health effects”. The plaintiff also claims that the restaurant violated its food-safety pledge by using the harmful chemicals. A California resident also filed a similar lawsuit against the Chicago, Illinois-based company in the U.S. District Court for the Northern District of Illinois. Earlier this month, a separate plaintiff sued Burg- er King in the U.S. District Court for the Northern District of California, calling out the restaurant’s claim that it uses sustainable packaging and “real ingredients” with “no secrets” in the complaint. The plaintiffs are seeking class-action status, and the lawsuits are mostly focused on claims of false advertising. PFAS are synthetic chemicals that are hard to break down and last a long time — hence the “forever” in their nickname. They’re widely used in consum- er products because they’re resistant to grease, oil, water and heat. Aside from food packaging, they’re also used in nonstick cookware, household prod- ucts and even bottled water. Aside from not being good for the environment, PFAS exposure has been linked to health problems in humans, ranging from immune system suppres- sion to increased risk for some cancers.

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Smurfit Kappa (Cont’d from Page 1)

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launched its Green Finance Framework, which was accompanied by a 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 inau- gural green bond ,which was over-subscribed mul- tiple 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 objec- tives of the Paris Agreement, and well below 2°C.

Smurfit Kappa has published an enhanced dis- closure consistent with the Task Force on Cli- mate-Related Financial Disclosures (TCFD) recom- mendations in its 2021 Annual Report, including a comprehensive top-down identification and pro- cess review of climate-related risks and opportu- nities 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 €4.9 million during 2021; • Reduction of 41.3 percent in fossil fuel emission intensity since 2005, or 6 percent year-on-year; • SBTi approval of its emission reduction targets in line with the Paris Agreement; • Reduction in water consumption of 6.2 percent year-on-year; and • Decrease in waste to landfill intensity of 29.2 percent since 2013, or 7 percent year-on-year. Smurfit Kappa continues to invest in sustainability to deliver on its long-term goals. One such example from 2021 was an investment of €11.5 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.

To boost your market presence contact:

Greg Kishbaugh / 317-306-1060 / [email protected]

Robyn Smith / 910-553-4055 / [email protected]

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Labeling and product decoration are critical to the packaging industry, combining the essential infor- mation to identify a product with the sales enhance- ment properties of branding and on-shelf visibility. The status of this market is documented in the newly published 16th edition of AWA Labeling and Product Decoration Annual Review 2022. It explores all the different facets of the subject across the main labeling formats – pressure-sensitive, glue-applied, sleeving, in-mold labels – and their supply chain characteristics. The new study details the profiles of the different end-use application segments, includ- ing primary product labeling, variable information printing, and security labeling, and sets them in the context of in-depth regional market analyses. In 2021, AWA estimates that global label demand approximated 71,010 million square meters — showing a growth of some 3.8 percent over the prior year. While these figures span all the label and product decoration technologies, 41 percent of these volumes were in pressure-sensitive labels, 34 percent in glue-applied labels, and 19 percent in the sleeve labeling technologies. Regionally, the countries of Asia continue to claim the largest market share, 45 percent of the total; Europe a 25 percent share; North America an 18 percent share; South America 8 percent; and Africa and the Middle East 4 percent. DS Smith Opens New Paper Development Lab DS Smith has unveiled a Fibre and Paper Devel- opment Laboratory at its flagship Kemsley Paper Mill in Kent, UK. The laboratory will be used for researching technologies that enhance the perfor- mance and sustainability qualities of fibre-based packaging, including coatings and barrier technolo- gy, wet-end chemistries, surface chemistries, repul- pability, and recyclability. The new laboratory also reportedly advances the company’s research in alternative fibres as sustain- able raw material for paper and packaging prod- ucts. Last year, the company announced its explor- ing the use of seaweed as an alternative fibre source to wood, as well as a barrier coating to replace pe- troleum-based coatings. The Fibre and Paper Development Laboratory is the latest development in its R&D program, an- nounced in May 2021, to accelerate our work in the Circular Economy.

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Mercian Labels Enhances Cyber Security Mercian Labels has been accredited to the highest ‘plus’ level of the UK Government endorsed Cyber Essentials Plus (CE+) security standard. Cyber Essentials Plus is a UK government-backed scheme independently verified by an accredited external penetration tester who conducts a series of technical assessments across various attack vec- tors to ensure the company is sufficiently protect- ed. These include boundary firewalls, secure asset configuration, internal vulnerability scans, MFA en- forced accounts, patch management, user access controls, malware protection, and mobile assets. “Cyber-attacks are becoming more sophisticated and frequent today, and the technical controls you need to deliver a resilient manufacturing platform in labeling are very challenging,” said Dr. Adrian Steele, Managing Director of Mercian Labels. One of the Mercian Labels’ biggest customers drove the company to accredit to the top CE+ stan- dard as the profile of high volume variable barcode labeling is particularly sensitive. The assessment included cyber security hackers trying to breach the company’s cyber defenses in many different ways, including firewall penetra- tion tests, email malware, malicious browser down- loads, and internal vulnerability scans probing for weaknesses. Walmart Connect Suppliers With Packaging Innovation The Walmart Circular Connector platform has been designed to make it easier for sourcing teams and brand companies to quickly find sustainable packaging solutions. In mid-April, Walmart launched its new Circular Connector, an online tool designed to bridge the gap between companies searching for more sus- tainable packaging ideas and those that offer them. Says the company, “As Walmart drives toward its commitment to be- coming a regenerative company, it remains focused on accelerating progress on the environmental sus- tainability of its products,” said the company. “The Circular Connector, available on WalmartSustain- abilityHub.com , represents a continuation of this sustainability commitment.” The Circular Connector is available for all packag- ing companies interested in submitting sustainable packaging solutions.

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