Essentra plc announce new environmental KPIs and targets

Consumer Goods

Essentra plc (LON:ESNT) has today announced new environmental KPIs and targets representing a significant step forward in the advancement of the Company’s established sustainability agenda. These new targets are over and above the Company’s existing safety-related KPIs.

·    Carbon neutral by 2040, for manufacturing and distribution operations (Scope 1 and 2 emissions1)

o  Interim target of 25% reduction in normalised Scope 1 and 2 emissions by 2025, vs 2019 baseline

·    All sites at zero waste to landfill by latest 2030

·    20% reduction in overall waste volumes by 2030, vs 2019 baseline

·    20% of packaging and raw materials from sustainable sources by 2025[1]

Chief Executive Paul Forman said:

“Essentra’s purpose is to provide the products and services our customers need to succeed – and to do so responsibly. I am pleased to be announcing these new environmental KPIs and targets which provide us with an ambitious framework as we continue to drive forward our sustainability agenda.

The measures that we are announcing today will see an accelerated reduction in our Greenhouse Gas (GHG) emissions, providing the roadmap to being carbon neutral by 2040 as the Essentra family steps up to play its part in achieving a low carbon economy. Our new waste management initiatives will ensure we do not send anything to landfill by latest 2030, at all of our sites around the world – taking their lead from the eight sites that have already achieved this goal. During this period we also aim to reduce overall waste by a fifth across our business, while significantly increasing the usage of more sustainable raw materials such as fully biodegradable or post-consumer recycled products.

There are four pillars to our sustainability agenda, which have been carefully chosen based on who we are and what we do: responsible resource usage; energy and climate change; people & community; and responsible supply chain. These new environmental KPIs are an important step forward and reinforce our commitment to investing and innovating to reduce Essentra’s environmental impact as part of our commitment to acting responsibility in everything we do.”

GHG emissions

Essentra will target carbon neutrality by 2040 through a programme of energy efficiency improvements and emissions reductions across its manufacturing and other sites. To ensure the Company is on track to meet this commitment an interim target has been set of a 25% reduction in normalised Scope 1 and 2 emissions by 2025 as measured against a 2019 baseline (the first year where Essentra emissions were third party verified on a Group-wide basis).    

The site improvement programme is comprehensive and wide-ranging, focusing on reducing overall emissions through initiatives that include:

·    Energy efficiency upgrades: Implementation of a rolling programme of site energy audits and energy efficiency improvements, including roll-out of energy efficient LED lighting, site insulation, and ongoing energy reduction and conservation measures.

·    Clean energy: Pilot projects are currently underway across five locations globally for the installation of local energy generation on Essentra sites, including the installation of solar PV solutions. In addition to on-site generation the Company is also reviewing its energy supply contracts to prioritise the procurement of certified renewable energy. 

·    Innovation and technology: Development and adoption of innovative, energy efficient projects on a site-specific basis, such as all-electric presses in the Components business.

The implementation of these initiatives will continue and accelerate Essentra’s journey to carbon neutrality. In addition to these projects Essentra is committed to working closely with supply chain partners to promote low carbon operations across the Company’s operating footprint.  

Waste reduction and sustainable materials

Essentra is committing to ensuring all of its sites operate with zero waste to landfill by latest 2030. The Company currently has eight production sites verified as zero waste to landfill and is rolling out initiatives and best practice from these sites globally.  These measures include advanced tracking and reporting of waste flows and the implementation of advanced site-specific recycling projects and waste reduction programmes. In addition to committing to eliminate all waste to landfill, Essentra is targeting a 20% reduction in overall waste volumes by 2030.

As part of the Company’s continued emphasis on responsible resource usage, Essentra is also pursuing a wide range of projects with more sustainable material approaches. The Group is targeting 20% of all packaging and raw materials used in the Components Division’s manufacturing processes to be from more sustainable sources by 2025. All businesses are actively engaged in material trials, customer collaborations and new product development with the aim of reducing material usage, increasing post-consumer recycled (PCR) content, using new materials from more sustainable sources or making packaging and products biodegradable. Example of sustainable product initiatives that are currently being explored by the Company’s business divisions are as follows:

·    Components: The Components business is working closely with customers on new product development, including the incorporation of increased recycled content and biodegradable additives into cap and seal products.

·    Packaging: The Company is working with Packaging customers to substitute plastic with paper-based designs and reduce material usage and waste, trialling higher PCR content materials and designs that facilitate consumer recycling.

·    Filters: Supplier collaboration projects are focused on investigation of alternative fibre materials with a range of fully biodegradable materials products under development.

Each of Essentra’s divisional businesses are tracking division-specific metrics to improve the overall sustainability of their product and packaging portfolios. These represent a significant opportunity for the Group to collaborate more closely with customers, accelerate new innovation and improve the long-term sustainability of the business. Essentra’s sustainability agenda will remain at the centre of the Group’s strategy as it continues to build for the future.

Sustainability Governance

Towards the end of 2019 a new Board Sustainability Committee was formed, which elevated the previous Group Sustainability Committee to Board level and underscored the increasing importance that both the Board and the Company’s stakeholders are placing on this issue of Sustainability. The Board Sustainability Committee meets at least quarterly in order to input on strategy, risk management and performance.


(1)  Scope 1 (direct emissions e.g. fuel combustion on site) and Scope 2 (indirect emissions associated with the generation of purchased energy).

(2) Components Division target, as a proxy for Group activity – other Divisions will also be tracking different material-related metrics.

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