Inspiring Climate Action: Net Zero by 2050

Inspiring Climate Action: Net Zero by 2050

September 26, 2024

Sustainable consumer packaging plays a key role in the fight against climate change. That's why Graphic Packaging announced an aspiration to achieve Net Zero Greenhouse Gas (GHG) emissions by 2050. This ambitious goal is aligned with the Paris Agreement and the United Nations Sustainable Development Goal 13, which call for urgent action to limit global warming. By setting and validating near-term science-based targets, the company has committed to a transformative path to become Better Every Day.

The Imperative for Net Zero

The urgency to achieve Net Zero emissions cannot be overstated. According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C above pre-industrial levels is crucial to avoid the most catastrophic effects of climate change. Achieving Net Zero GHG emissions by 2050 is a major driver toward this goal, requiring both significant reductions in total GHG emissions and balancing any residual greenhouse gases emitted with equivalent removals from the atmosphere.

Companies that adopt Net Zero targets are better positioned to manage risks associated with climate regulations, energy costs, and supply chain disruptions. A recent report by the World Economic Forum highlights that transitioning to Net Zero is not only essential for environmental sustainability but also presents significant economic opportunities.

Our Strategic Approach

Committing to Net Zero by 2050 is a testament to Graphic Packaging's proactive approach in addressing climate change. In 2023, Graphic Packaging set and validated near-term science-based targets through the Science Based Targets initiative (SBTi). These targets are aligned with the 1.5°C pathway, which is a critical benchmark for ensuring that global temperature rise is kept within safe limits.

Michelle Fitzpatrick, vice president and chief sustainability officer at Graphic Packaging, emphasized the importance of these targets: "Establishing clear, actionable near-term targets is a critical first step in achieving the GHG emissions reductions needed to limit global warming." The near-term targets extend up to 2032 and are designed to provide an initial pathway towards achieving the 2050 Net Zero goal.

Trends in Sustainability and Industry Leadership

The push towards Net Zero is part of a broader trend within the corporate world, where sustainability is increasingly being integrated into business strategies. According to the UN Global Compact and Accenture's largest ever CEO study on sustainability, 98 percent of CEOs believe that sustainability is core to their role. This shift is driven by a combination of regulatory pressures, evolving consumer preferences, and the recognition of sustainability as a driver of innovation and efficiency.

In the packaging industry, companies are investing in technologies and practices that reduce carbon footprints and improve environmental performance. For example, advancements in renewable energy such as solar and wind power are being integrated into manufacturing processes to lower emissions. In addition, there is a growing emphasis on circular economy principles which focus on reducing waste and increasing the recyclability of materials.

Graphic Packaging's Better, Every Day approach is emblematic of these industry trends, encompassing initiatives aimed at reducing waste (98 percent paperboard waste recycled), increasing the use of renewable resources (68 percent renewable fuel used), and improving the overall sustainability of packaging solutions (~665 million foam cups replaced with paper cups in North America).

The Road Ahead

Challenges do exist, including developing and commercializing technology for low-emissions manufacturing and carbon capturing. Fitzpatrick noted, "Looking beyond 2032, we anticipate that new, scalable carbon abatement innovations and evolving regulations will provide the decarbonization solutions needed to define our longer-term path to Net Zero GHG emissions."

Companies must also navigate an evolving regulatory landscape, as governments around the world implement more stringent climate policies. Staying ahead of these regulations and integrating them into business strategies will be important for companies on the road to Net Zero.

As the world continues to face the challenges of climate change, Graphic Packaging's efforts serve as a powerful example of how businesses can grow while still driving positive environmental change. By embracing sustainability and setting ambitious targets, the company is packaging life's everyday moments while paving the way for a renewable future.

Stay tuned to Graphic Packaging's Newsroom, where we'll continue to share our point of view on global sustainability trends and issues as we work to become Better, Every Day.

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