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View Report - SocialFunds.com
sm 2011-2012 Corporate Responsibility Report Sonoco 2011-2012 Corporate Responsibility Report Sonoco’s sustainability statement of intent About this report Sonoco will be the packaging industry leader in creating, maintaining and enhancing a sustainable future that benefits all of its stakeholders through continuous improvement in operating performance, social responsibility and environmental stewardship. For the 2011-2012 Corporate Responsibility Report, Sonoco followed the Global Reporting Initiative (GRI) Guidelines for the first time. These guidelines form a voluntary framework setting out principles and indicators that are used to measure and report economic, environmental and social performance. To define the content of this report, Sonoco carefully considered projects it completed in 2011 and the first half of 2012 and how those projects relate to our customers, shareholders, employees, suppliers and the communities in which we operate. Sustainability mission statement Sonoco’s strategic mission statement is to be the lowcost global leader in providing customer-preferred packaging solutions to selected value-added segments, where we expect to be either number one or two in market share. Shareholder return, customer and employee satisfaction, commitment to excellence, integrity, environmental stewardship and a safe workplace will be the hallmarks of our culture. The Company’s focus on sustainability is directly linked to and in support of its mission statement. We believe that initiatives around enhancing our reputation, being a strong corporate citizen, providing a good place to work and being a good steward of our environmental resources will make us a stronger and more competitive company, better able to support and satisfy our broad customer base and provide shareholders with sustainable returns. In today’s competitive global marketplace, the issues relevant to supporting sustainability are directly linked to Sonoco’s long-term profitability and viability. We believe that sustainability and business success are not only compatible but are inextricably linked and that by embracing both, we will benefit our shareholders for the long term. 1 2 4 6 7 9 11 14 Introduction Letter to Stakeholders Sonoco at a Glance Economic Performance Sustainability Progress Environmental Stewardship Social Responsibility Sustainability Oversight The Company used the GRI Technical Protocol to ensure it correctly defined this report’s content and then used the G3 guidelines to ensure comprehensiveness, adding content as considered necessary by the guidelines. A GRI Reference Table is available at http://www. sonoco.com/sustainability/ corporateresponsibilityreports. Sonoco has been listed in the Dow Jones Sustainability World Index for three consecutive years. Thus, we have used the Corporate Sustainability Assessment developed by Sustainable Asset Management (SAM) to determine materiality. This year’s report repeats the format and metrics used in previous sustainability reports to provide stakeholders with easy understandable communication of the Company’s progress of corporate responsibility. All historical data referenced in this report have been adjusted to reflect changes in business structure and improvements in data collection and accuracy, and so may differ from previous reports. For instance, data used in 2011 included the Company’s acquisition of Associated Packaging Technologies, Inc., a large plastics thermoforming business with operations in North America and Ireland, as well as other smaller acquisitions. Environmental metrics in this report have been gathered from all global manufacturing locations, excluding certain warehouses and small office structures. Water usage includes that used in global paper operations, which we estimate to be approximately 90% of our total usage. 1 To Sonoco Stakeholders economic performance continues to provide a balance of consistent financial performance while achieving our sustainability targets. Building sustainable businesses While we expected to meet our 2014 carbon emission reduction goals through already identified programs, we made a further commitment to reduce greenhouse gas (GHG) and other emissions by beginning the construction of a new $75 million biomass cogeneration system at our Hartsville, S.C., manufacturing complex in late 2011. Harris E. DeLoach Jr. Chairman and Chief Executive Officer I’M PLEASED TO SHARE SONOCO’S 2011-2012 CORPORATE RESPONSIBILITY REPORT WITH YOU. It communicates our progress as we help ensure that the Company operates with integrity, honoring the trust that has been placed in us, and helping to strengthen the communities where we operate. For more than 113 years, Sonoco has been committed to creating long-term value for its stakeholders by becoming a more sustainable and responsible corporate citizen. The Company’s focus on pursing business strategies that support the “triple bottom line” of integrating environmental stewardship, social responsibility and Powered by wood wastes from regional logging activity, the new cogeneration system will produce low-cost “green” energy and steam for our paper and other operations. As part of the project, we will shut down a coalfired boiler system in the second half of 2012 and produce steam with a new gas-fired boiler system. Once operational in late 2013, the biomass cogeneration project is expected to significantly reduce our energy costs and emissions resulting in annual operating savings of about $14 million. As one of the largest recyclers in the packaging industry, Sonoco further expanded recycling operations in 2011, growing collections by 6% with an emphasis on develop- SONOCO’S COMMITMENT WE ARE COMMITTED TO REDUCING THE ENVIRONMENTAL FOOTPRINT OF OUR GLOBAL OPERATIONS. n We have reduced normalized GHG emissions intensity by 4.4% since 2009, moving toward our five-year carbon emission reduction goal of 15% by 2014. n Normalized water usage by our global manufacturing operations has been reduced by 7.2% since 2009, including a 5.1% reduction in 2011. n The Company met its goal of having five of its U.S. manu- facturing plants achieve Star Award status by diverting at least 95% of their waste streams from landfill disposal through improved recycling efforts. WE ARE COMMITTED TO IMPROVING THE SUSTAINABILITY OF OUR PACKAGING AND PROVIDING INNOVATIVE SOLUTIONS TO MEET OUR CUSTOMERS’ SUSTAINABILITY GOALS. n Our Design for Environment packaging evaluation tool, along with the use of life-cycle indicator tools, helped our customers reduce packaging materials, utilize more sustainable materials and shrink supply chain costs. n In 2011, we started the Sustainability Star Award program to recognize our customers’ and Sonoco’s facilities that have achieved significant milestones in waste stream reduction through recycling and other landfill mitigation efforts. A total of 12 plants received gold and silver awards for diverting up to 99% of those facilities’ waste streams from landfills. 2 To Sonoco Stakeholders ing new comingled residential material recovery facilities (MRF). We now serve nearly 150 communities and expanded MRFs in Columbia, Charleston and Greenville, S.C., and Charlotte, Raleigh and Jacksonville, N.C. Achievements in corporate responsibility Sonoco continues to be recognized for achievements in corporate responsibility. For the third year in row, the Company was listed to the Dow Jones Sustainability World Index for 2011/2012. We received the highest ranking of any global packaging company on the index and were honored with a Sector Leader and Gold Class rankings by Sustainability Asset Management. Sonoco also was ranked as the top packaging company in Newsweek’s 2011 Green Rankings and was selected as South Carolina’s Top Ranked Company for Sustainability Excellence by Southeastern Corporate Sustainability Rankings. In addition, the Company was recognized in Corporate Responsibility Magazine’s 100 Best Corporate Citizens. While we don’t go out of our way to receive external recognitions, they confirm our actions and performance are at the highest level with our peers and with the best companies in the world. Focused on a sustainable future We remain focused on creating sustainable value to all our stakeholders. In an era when many companies come and go, Sonoco has weathered the test of time. The Company is a member of the New York Stock Exchange’s elite Century Club, which represents 10% of NYSE’s U.S. listed companies that have been able to not only survive but thrive for more than 100 years. Ongoing dialogue with our stakeholders plays an essential part in our sustainability efforts. We hosted a range of stakeholder dialogue events with our customers, shareholders, vendors, employees and with residents in the communities where we operate. I join our more than 19,600 employees in thanking you for taking time to read our 2011-2012 Corporate Responsibility Report. If you would like to extend a dialogue with the Company on issues of sustainability, you may contact us at sustainability@sonoco.com. Sincerely, Harris E. DeLoach Jr. Chairman and Chief Executive Officer SONOCO’S COMMITMENT WE ARE COMMITTED TO PROVIDING A SAFE AND HEALTHY WORKPLACE AND SUPPORTING THE COMMUNITIES WHERE WE OPERATE. n The Sonoco Health Connection opened on the Company’s Hartsville manufacturing complex to provide our employees with on-site medical treatment options, including preventative screenings and wellness care. n Sonoco teamed with Darlington County (South Carolina) WE ARE COMMITTED TO STRONG GOVERNANCE PRACTICES AND ONGOING DIALOGUE AND ENGAGEMENT WITH OUR STAKEHOLDERS. n The Company’s bylaws were amended to provide that the Board of Director’s chair of Corporate Governance and Nominating Committee, which is always an independent director, serve as Lead Director. n We updated our Human Rights Policy to further Schools, Yale University’s School Development Program, emphasize our commitment to ethical business conduct, Coker College and the South Carolina Governor’s School for equal opportunity, protection of workers’ rights, including Science and Mathematics to launch a unique public-private the rights of children. education partnership to increase academic achievement and provide unique accelerated learning programs to more than 1,500 elementary and high school students in the Company’s hometown of Hartsville. n We continue to emphasize our performance-driven culture by empowering our people. We annually survey employees to measure engagement and consistently receive 75% positive satisfaction scores. 3 Sonoco At a Glance FOUNDED IN 1899, SONOCO IS A GLOBAL PROVIDER OF A VARIETY OF CONSUMER PACKAGING, INDUSTRIAL PRODUCTS, PROTECTIVE PACKAGING AND PACKAGING SUPPLY CHAIN SERVICES. CONSUMER PACKAGING PAPER AND INDUSTRIAL CONVERTED Products and Services: Recycled paperboard, Products and Services: Round composite cans, chipboard, tubeboard, light-weight corestock, shaped rigid paperboard containers, fiber caulk/ boxboard, linerboard, corrugating medium, adhesive tubes, aluminum, steel and peelable specialty grades; paperboard tubes and cores, membrane easy-open closures for composite concrete and void forms, molded plugs, reels, and metal cans; plastic bottles, jars, jugs, cups collection, processing and recycling of old and trays; printed flexible packaging, rotogravure corrugated containers, paper, plastics, metal, cylinder engraving, global brand management glass and other recyclable materials Markets: Snacks, nuts, cookies, crackers, hard- Markets: Converted paperboard products, spiral baked goods, desserts, candy, gum, frozen winders, beverage insulators, construction, film, concentrate, powdered and liquid beverages, flowable products, metal, paper mill, shipping and non-carbonated beverages, ready-to-drink storage, tape and label, textiles, wire and cable, products, powdered infant formula, coffee, municipal, residential, customers’ manufacturing refrigerated dough, frozen entrees, processed and distribution facilities food, vegetables, fruit, seafood, poultry, soup, pasta, dairy, sauces, dips, fresh-cut produce, pet food, home and personal care, adhesives Sonoco 2011-2012 Corporate Responsibility Report 4 Sonoco At a Glance (continued) WITH ANNUALIZED NET SALES OF APPROXIMATELY $4.5 BILLION, THE COMPANY HAS APPROXIMATELY 19,600 EMPLOYEES WORKING IN MORE THAN 340 OPERATIONS IN 34 COUNTRIES, SERVING MANY OF THE WORLD’S BEST-KNOWN BRANDS IN SOME 85 NATIONS. DISPLAYS AND PACKAGING SERVICES Products and Services: Point-of-purchase PROTECTIVE SOLUTIONS Products and Services: Highly engineered, custom-designed protective, temperatureassurance and retail security packaging displays, custom packaging, in-distribution solutions center packaging, fulfillment, primary and Markets: Consumer electronics, automotive, secondary package filling, supply chain appliances, medical devices, temperature- management, paperboard specialties sensitive pharmaceuticals and food, heating Markets: Automotive, beverages, candy, and air conditioning, office furnishings, fitness electronics, personal care, baby care, food, cosmetics, fragrances, hosiery, office supplies, toys, home and garden, medical, over-thecounter drugs, sporting goods, hospitality industry, advertising equipment, lawn and garden, promotional and palletized distribution, health and beauty, mobile devices, writing and office supplies, medical trays, over-the-counter pharmaceuticals, hardware/lighting, housewares 5 Economic Performance OVERVIEW NET SALES billions of dollars 07 08 10 4.50 11 164.6 165 151.5 201.1 214.2 217.5 $220 2012 PERCENT PROJECTED SALES BY OPERATING SEGMENT 110 Paper and Industrial Converted 39% Packaging Services 9% 55 Consumer Packaging 41% 07 08 09 10 11 Protective Packaging 11% Sonoco 2011-2012 Corporate Responsibility Report 2.29 2.24 2.34 $2.40 1.78 1.80 1.20 .60 07 08 09 10 11 CASH DIVIDENDS PAID TO SHAREHOLDERS dollars per share 1.15 1.11 $1.20 1.08 Sonoco will not permit any type of illegal, unethical or improper behavior on the part of any employee. Employees are expected to comply with all laws and conduct all business in a fair and ethical manner. Furthermore, the Company requires its board of directors, management, employees, contractors and vendors to understand and comply with stringent business conduct standards. In 2012, Sonoco updated its Human Rights Policy to further emphasize our commitment to ethical business conduct, equal opportunity, protection of workers’ rights, including the rights of children. dollars 1.07 Sonoco follows a philosophy that greater transparency, sensible risk taking and strong governance policies are necessary to protect shareholder value. The Company’s board of directors and its management strongly support and adhere to all legislative and regulatory standards adopted by the U.S. Congress, the Securities and Exchange Commission, the State of South Carolina and the New York Stock Exchange. In 2012, the Company’s bylaws were amended to provide that the Board of Director’s chair of Corporate Governance and Nominating committee, which is always an independent director, serve as Lead Director. BASE EARNINGS PER SHARE 2.38 Governance 1.02 Consumer Packaging $1,977 • 44% Protective Packaging $158 • 4% 09 millions of dollars millions of dollars Packaging Services $471 • 10% 4.12 1.2 NET INCOME ATTRIBUTABLE TO SONOCO Changing mix of business Paper and Industrial Converted $1,892 • 42% 3.6 2.4 Furthermore, the Company completed the largest acquisition in its history paying $550 million for Tegrant Holding Corporation. The acquisition provides the Company a new growth platform and establishes Sonoco as a leading provider of custom-engineered protective packaging in North America. 2011 SALES BY OPERATING SEGMENT 3.60 4.04 2011 was a year of challenge and change for Sonoco. The Company’s businesses faced escalating raw material, energy, freight and other costs and an unexpected decline in industrial-related volumes late in the year. Despite these significant macroeconomic headwinds, Sonoco achieved record sales while attaining the third highest base earnings in Company history. 4.12 $4.8 .90 .60 .30 07 08 09 10 11 6 Product Stewardship In early 2011, Sonoco worked with Unilever to create a high-performance, lighter-weight package for its Wish-Bone® salad dressing. The dressing bottle, made from reduced materials, sports the highly recognizable “wishbone” shape and diamond pattern. Sonoco Plastics reduced the bottle’s weight by 20%, meeting Unilever’s sustainability goals. IN 2011, PLANTERS ASKED SONOCO TO UPGRADE Sonoco has taken the iconic Pringles rigid paperboard can from two plies of recycled paperboard to one ply; the foil from .00275 inches to .00255 inches gage; and adhesives from three glue lines to two, while maintaining the same can strength and integrity, resulting in a material reduction of over 7%. ITS 16 OZ. AND 20 OZ. GLASS PEANUT JARS. SONOCO RESPONDED WITH A DURABLE, LIGHTWEIGHT PLASTIC OPTION (SHOWN ON COVER) THAT MET ALL OF PLANTERS’ PERFORMANCE TARGETS—BUT WEIGHED 84% LESS. THE DRASTIC REDUCTION IN PACKAGING MATERIALS LED TO A HOST OF SUSTAINABLE BENEFITS INCLUDING A 25% REDUCTION IN THE NUMBER OF TRUCKS REQUIRED TO TRANSPORT PLANTERS DRY ROASTED PEANUTS. ADDITIONALLY, THE NEW PACKAGING IS 100% RECYCLABLE AND NON-BPA. 7 AWARDS AND CERTIFICATIONS Product Stewardship Named one of the 25 Top Companies for Leaders in North America by Aon Hewitt, The Sonoco Alcore, the Company’s European unit, signed a contract in 2012 with the Alliance for Beverage Cartons & the Environment (ACE) to establish the RBL Group and Fortune for a fourth time. Named a Platinum Fit-Friendly Company by the American Heart Association. United Kingdom’s first drink carton Listed as one of only three global packaging reprocessing facility near Halifax, West companies in the Dow Jones Sustainability Yorkshire. Beginning in 2013, Sonoco World Index for 2011/2012. This was Alcore will be capable of recycling Sonoco’s third consecutive listing. 25,000 tonnes of paper-based drink cartons sorted from household and commercial waste streams. The recycled cartons will be processed into uncoated recycled paperboard at Sonoco’s Halifax Ranked by Sustainability Asset Management (SAM) as Gold Award winner and Sector Leader in the packaging category in its Sustainability Yearbook 2011. mill. The recycled paperboard will then Rated as the top packaging company and be used to produce paperboard tubes the top company in the Materials Sector in and cores that will hold wound goods, Newsweek’s 2011 Green Rankings. including plastic film, textiles and paper. Listed on 2012 Fortune Most Admired Companies. Named 2010-2011 Philanthropist of the Year by The Pee Dee Chapter of the Amer- Traditionally, gum packaging has used foil as a barrier lidding that allows for easy dispensing by pushing each piece of gum through the foil wall. Sonoco’s high-performance die cut, polyethylene terephthalate (PET) film, used in Trident Vitality™ gum, eliminated the need for this foil and resulted in a 7% reduction in the weight of the blister pack’s lidding. 6 BEGINNING IN THE SUMMER OF 2012, SONOCO ALCORE IS INVESTING NEARLY 6 MILLION EUROS AT ITS SCHWEIGHOUSE-SURMODER PAPERBOARD MILL LOCATED IN THE HEART OF ALSACE REGION OF FRANCE. THE INVESTMENTS ARE PRIMARILY FOCUSED AROUND ENERGY, MATERIAL AND ENVIRONMENTAL EFFICIENCY. ican Red Cross for the Company’s disaster relief donations in Haiti, Japan, New Zealand, Thailand and in Alabama and Darlington County, South Carolina, in the United States. Listed as the top ranked company in South Carolina for Excellence in Sustainability by the Southeastern Corporate Sustainability Rankings developed by Green Business WORKS. Named the top ranked packaging company in the 2011 Top 100 Corporate Citizens by Corporate Responsibility Magazine. Received Monarch Butterfly program certification from the Mexican Paper Chamber for production of paperboard, tubes and cores from 100% recycled fiber at industrial carrier plants and paper mills in Mexico. 2012 SM SFI-00112 Sonoco 2011-2012 Corporate Responsibility Report 8 Environmental Stewardship Climate change policy Sonoco recognizes its responsibility to address the challenges of climate OVERVIEW change. As a result, the Company maintains an environmental Sonoco is working to shrink the environmental footprint of each of its more than 340 “manufacturing plants in 34 countries by reducing energy consumption, green house gas and other air emissions, water usage and wastes going to landfills. Landfill disposals from the Company’s plants increased in 2011 reflecting improved data collection and the onetime disposal of certain recycled materials that had been collected for future beneficial use. Sonoco is working to implement and encourage recycling programs through its Sonoco Star Awards program, created to recognize customer- and Company-owned facilities for achieving significant milestones in landfill diversion and waste stream reduction. management system that measures the environmental performance of our operating facilities around the world. We measure energy usage, greenhouse gas and other air emissions, water consumption and waste generation. In addition to required regulatory disclosures, we annually report our environmental performance to the Carbon Disclosure Project and other Goals and targets external sustainability ratings. Using 2008 as the baseline year, Sonoco has committed to reducing normalized GHG emissions by 15% from our global manufacturing We are committed to providing open, facilities by 2014. Sonoco expects to meet this goal by reducing ongoing communications about our sustainability goals and progress. energy and carbon emissions through targeted investments and initia- We also will continue working in tives. Sonoco also intends to have 10% of the Company’s global manu- partnership with our suppliers and facturing operations at landfill-free status by 2015. customers to address issues involving climate change. KEY ENVIRONMENTAL METRICS Key Metrics Unit % Improved 2011 2010 Total Energy Usage MMBtu 4.84 15,741,174 16,541,437 Energy Usage (normalized)* MMBtu/ton 4.96 3.507 3.688 Total Greenhouse Gas Emissions (GHG) mtons CO2 3.21 1,352,299 1,395,820 Direct Emissions (Scope 1) (normalized) mton CO2/ton 3.37 0.163 0.169 Indirect Emissions (Scope 2) (normalized) mton CO2/ton 3.23 0.138 0.143 Total GHG Emissions (normalized)* mton CO2e/ton 3.13 0.301 0.311 Total Landfill Disposed mtons (12.54) 168,611 149,826 Landfill Disposed (normalized)* mton/mton (12.46) 0.0376 0.033 Total Water Usage MM m3 1.84 29.930 30.490 Water Usage (normalized)* m3/ton 5.06 6.455 6.799 Shipped Production mtons .09 4,488,897 4,484,656 *Historical data referenced in this report have been adjusted to reflect changes in business structure and improvement in data collection and accuracy, and so may differ from previous reports. 9 ENVIRONMENTAL POLICY Environmental Stewardship Turbine Generator Steam Boiler m to Process Stea Steam Sonoco takes seriously its responsibility to protect the environment in which we work and live, and will conduct its business in accordance with all legal requirements and ethical responsibilities, using scientific knowledge, technical innovation and sound environmental management practices. We will be sensitive to environmental issues throughout our business systems, including our selection of materials, processes and products. We will utilize appropriate monitoring techniques to ensure adherence to accepted standards. n Wood H20 Electricity Wood Residue Paper Mill Process Steam We will conduct operations in full compliance with applicable environmental laws and regulations. In those areas of the world where such requirements are at a minimum, we will operate in a completely responsible manner. n We will utilize natural resources efficiently, continuously seeking ways to reduce our requirements. We will strive to maximize the utilization of recovered materials in the products we manufacture and use. n Sonoco’s new biomass cogeneration system, currently under construction, will produce 16 megawatts of low-cost, “green” electricity and steam that will be used at its Hartsville complex. The boiler system is expected to provide approximately $14 million in annual savings. We will minimize the generation of discharges to the environment, including air emissions, wastewater and solid waste. n We will support the development of scientific knowledge relating to environmental matters and implement appropriate new technologies to improve our environmental performance. n Led by Sonoco’s Operating Excellence group, in 2011 the Company began a series of lighting and compressor projects aimed at reducing energy usage and saving the Company money by using direct capital towards energy reduction. Year-to-date, Sonoco has saved 4.3 million kWh through lighting retrofits and 5.3 million kWh with upgrades to its compressors. The team plans to continue the project during the second half of 2012. In 2011, Sonoco launched its Sonoco Sustainability Star Awards program. To date, 12 customer and Company facilities have achieved at least 95% landfill diversion. Five of those are Sonoco owned: Cascades Sonoco, Birmingham, Ala. (99%); Sonoco CorrFlex, York, Pa. (99%); Rigid Paper and Closures, West Chicago, Ill. (99%); Sonoco CorrFlex, Winston-Salem, N.C. (95%); and Sonoco CorrFlex, Rural Hall, N.C. (95%). Sonoco 2011-2012 Corporate Responsibility Report We will proactively assist our customers in addressing environmental issues related to their use of our products. n We will communicate openly with our stakeholders concerning our environmental record. n We will cooperate with public and governmental organizations to seek responsible solutions to environmental needs and to develop effective and balanced environmental standards. n 10 SONOCO FOUNDATION Social Responsibility Contributions OVERVIEW A summary of all 2011 cash contributions in Sonoco communities: Sonoco believes that it has the inherent responsibility to help improve the quality of life in the communities where it does business. In 2011, Sonoco continued its strong support of communities, through the support of community partnerships, diversity, education and safety programs. The Sonoco Foundation, Sonoco’s main conduit for corporate donations, contributed more than $2 million to numerous nonprofit organizations. The Company’s employees made a difference in their communities by contributing time, funds and talents to a variety of worthy causes, including serving on boards, raising funds and participating in other civic-oriented projects. n Education $1,360,840 n Cultural and Civic n Social Welfare and Health n TOTAL CONTRIBUTIONS 423,984 308,776 $2,093,600 General policy and guidelines The general target for Sonoco’s charitable contributions is 1% of Company domestic pretax profits. Charitable grants are made only to organizations with tax-exempt status. Our priority is to give to and support those communities in which we operate. Special consideration is given to those In the first year of its commitment to help modernize recycling services in its hometown of Hartsville, Sonoco Recycling saw a two-fold increase in recycling volumes as businesses, schools and other commercial institutions significantly increased their recycling activity. Under a six-year program, Sonoco Recycling is assisting the City of Hartsville in converting from dual-stream curbside collection to an expanded single-stream process, where all materials are collected in one container and then are sorted at a Sonoco Recycling material recovery facility (MRF). Sonoco Recycling also expanded the types of materials accepted for recycling and assisted the city in purchasing 1,000, 95-gallon roll carts. institutions which are supported by our employees through their personal contributions of time and/or money. Sonoco does not make grants to individuals or organizations for religious or political purposes, either for lobbying efforts or campaigns. Sonoco generally does not make grants for educational capital funds programs, endowment purposes, or for trips or tours. All requests for specific information should be sent to: Sonoco Foundation – A09 1 North Second Street Hartsville, SC 29550 sonocofoundation.com CASH CONTRIBUTIONS IN SONOCO COMMUNITIES 2011 To further increase material recovery in Hartsville, additional roll carts will be placed in the community in 2012-13 and efforts are underway to increase recycling at local schools and colleges. 95 IN 2011, SONOCO CONTRIBUTED $95,000 TO GLOBAL DISASTER RELIEF IN THE UNITED STATES (ALABAMA AND SOUTH CAROLINA), JAPAN, THAILAND AND NEW ZEALAND. Education 65% Social Welfare and Health 15% Cultural and Civic 20% 11 Social Responsibility As part of its ongoing commitment to employee health and wellness, in late 2011 Sonoco opened a state-ofthe-art employee health center that gives employees quick and easy access to medical assistance and treatment while at work. The Sonoco Health Connection is located on the Company’s Hartsville campus and is open during regular business hours Monday–Thursday, and from 7–11 a.m. Friday. The new facility also houses a limited-service pharmacy that can provide an initial 30-day supply of the most commonly prescribed drugs and over-the-counter medications. The Sonoco Health Connection is operated by CHS Health Services, a leading national workforce health management company with more than 30 years of experience in employee wellness. SUPPLIER DIVERSITY SPENDING RECORDABLE INJURIES billions of dollars 289 300 01 02 03 04 05 06 07 08 09 10 105 96 108 150 140 171 184 182 192 199 236 225 11 75 11 154.0 123.5 40 7.7 03 78.0 8 120 80 90.0 06 81.5 16 7.5 10 09 $160 5.5 09 24 millions of dollars percent of total company spend 5.7 08 9.7 07 9.8 06 10.1 9.8 age of 5.5% for similar-sized companies. 9.3 significantly surpassing the national aver- 9.2 its total spending to diverse businesses, 12% 63.7 Company also directed a record 8% of 32% 5.2 25.6 25.6 26.9% in its employment of women. The 25.4 25.3 In 2011, the Company attained a best ever 26.7 around employee and supplier diversity. 26.1 percent females percent minorities 4.5 EMPLOYEE DIVERSITY Sonoco takes great pride in its efforts 06 07 08 09 10 11 Human Rights Policy In 2012, Sonoco renewed its strong commitment to treating employees with respect and dignity by updating our Human Rights policy, which reflects the Company’s broader commitment to ethical business practices. The updated policy includes a new section addressing the California Transparency in Supply Chains Act (CTSCA). To view those policies, visit the Human Rights or CTSCA pages on our website, under About Us/ Doing Business with Sonoco. Sonoco 2011-2012 Corporate Responsibility Report 12 Social Responsibility Sonoco committed $5 million, over five years, to fund PULSE (Partners for Unparalleled Local Scholastic Excellence), a first-of-its-kind publicprivate partnership in South Carolina that is expanding student development and curriculum opportunities through collaborative academic and social development initiatives. The program is focused on schools in Sonoco’s hometown of Hartsville, and involves Darlington County schools, the South Carolina Governor’s School for Science and Mathematics (GSSM), Coker College and Yale University’s Child Study Center. The PULSE program kicked off in the 2011-12 school year and included the implementation of Yale’s Comer School Development Program (SDP) at four elementary schools in Hartsville involving 1,400 elementary school students, along with teachers and administrators. According to Dr. James P. Comer, Maurice Falk Professor of Child Psychiatry at the Yale University School of Medicine, and founder of the Comer School Development Program, Hartsville’s implementation demonstrated “more community effort than maybe anywhere we’ve ever been.” The program has been implemented in more than 300 schools nationwide and in several foreign countries. In addition, a total of 29 high school students completed Accelerated Learning Opportunity college-credit courses in the first year of the PULSE program. Courses included Mandarin Chinese I, AP Calculus and voice programs at Coker College. Beginning in the next school year, Mandarin Chinese II will be offered along with Advanced Chemistry, Environmental Sciences at Hartsville High School and GSSM, and additional courses in voice, modern dance and ballet at Coker College. 48 TO COMPLEMENT THE COMER SDP, A MENTORING PROGRAM INVOLVING 48 ADULTS FROM THE COMMUNITY WAS DEVELOPED TO ASSIST STUDENTS. EFFORTS WERE EXTENDED INTO THE SUMMER THROUGH A NEW “FREEDOM SCHOOL” PROGRAM HELD DURING THE SUMMER OF 2012 AT COKER COLLEGE. FREEDOM SCHOOL IS A SIXWEEK READING-BASED PROGRAM SERVING STUDENTS FROM THE COMER SCHOOLS. I returned to New Haven uplifted by all I saw and learned about the first year of implementation of our School Development Program model and framework in the four pilot schools in Hartsville. Your vision and generous support of Sonoco through the TEACH Foundation are making it possible for children to receive the support for their development that is critical to their success in school and in life. Best wishes for continued success. Cordially, James P. Comer M.D. 13 Sustainability Oversight Corporate Sustainability Council Employee and Public Responsibility Committee Purpose The purpose of the Sonoco Corporate Sustainability Council is to provide oversight, guidance and direction on social, community and environmental issues that have potential impact on the reputation and long-term economic viability of the Company and our stakeholders. Through our actions, we contribute to the economic and social well-being of our stakeholders. Members John E. Linville, Chairperson James L. Coker John R. Haley Edgar H. Lawton III Philippe R. Rollier Sustainability sponsor Harris DeLoach, Chairman and Chief Executive Officer Sustainability Council The council meets quarterly and reports to and is sponsored by Sonoco’s chairman and CEO. The council reports on Sonoco’s sustainability activities, biannually, to the board of directors. Council objectives Identify and define those issues that are relevant to Sonoco’s long-term sustainability and image as a good corporate citizen n Establish meaningful long-term and short-term sustainability objectives related to key areas of focus and provide Sonoco’s executive committee with meaningful recommendations or guidance on how to meet those objectives n Recommend and establish new Company guidelines, policies and processes to support areas of focus n Create and communicate a business case for corporate sustainability n Provide recommendations for the Company’s philanthropic efforts in support of overall corporate sustainability objectives n Roger Schrum, Vice President, Investor Relations and Corporate Affairs, –Committee Chair Gloria Bell, Staff Vice President, Internal Audit Rodger Fuller, Vice President, Global Rigid Plastics and Corporate Customers John Grups, Division Vice President, Primary Materials N.A. Ray Howard, General Manager, Sonoco Recycling Ron Leach, Vice President, Sonoco Protective Solutions Allan McLeland, Vice President, Human Resources Larry Pattengill, Director, Global Environmental Services Marty Pignone, Vice President, Global Operating Excellence Bob Puechl, Vice President, Global Flexibles Laura Rowell, Manager, Global Sustainability, Consumer Jeffrey Schuetz, Staff Vice President, Global Technology, Consumer Marcy Thompson, Vice President, Rigid Paper N.A. MEMBERSHIPS n n n n n Board of Directors Employee and Public Responsibility Committee Purpose The purpose of the Employee and Public Responsibility Committee of the Board of Directors is to provide oversight and guidance on social and public policy issues, including compliance with governmental or other regulatory requirements, which may impact business performance and the investment potential of Sonoco. n n n n n n n n n n For more information on the Employee and Public Responsibility Committee, visit the Corporate Governance section of Sonoco’s Investor Relations web page. n n n n n Sonoco n 1 North Second Street +843/383-7000 n sonoco.com n Hartsville, S.C. 29550-3305 n American Forest and Paper Association AMERIPEN Composite Can and Tube Institute Environmental Education Association of S.C. Forest Stewardship Council Institute of Scrap Recycling Industries (ISRI) National Association for PET Container Resources National Association of Information Destruction National Council for Air and Stream Improvement National Minority Supplier Development Council National Sustainability Coalition Paper Stock Institute (Chapter of ISRI) Program for the Endorsement of Forest Certification Rainforest Alliance Sedex Solid Waste Association of North America Southeastern Recycling Development Council Southeastern Recycling Coalition Sustainable Forestry Initiative Sustainable Packaging Coalition Walmart’s Packaging Sustainable Value Network 14
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