2018 Sustainability Initiatives A GRI-Referenced Report Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability Social Responsibility GRI Content Index 2 Table of Contents A MESSAGE FROM OUR CHAIRMAN 3 SPECIFIC DISCLOSURES GENERAL DISCLOSURES Environmental Sustainability 26 INDEVCO Overview 4 Solar Energy Capabilities in the Middle East 28 Sourcing Paper Responsibly 32 Operations & Products 6 Circular Economy of Plastics 33 Brands 8 Compounding Fillers from Minerals 37 Supply Chain 9 Innovating Consumer & Foodservice Disposables 39 Beliefs 10 Social Responsibility 42 Standards 12 Enhancing Occupational Health & Safety 44 Significant Changes 15 Fostering Employee Diversity & Inclusion 47 Empowering Arab Women 52 Governance 16 Nurturing Childhood Development in the Middle East 55 Sustainability Management Approach 17 Developing & Strengthening Youth in Lebanon 60 GRI Content Index 69 In this GRI-referenced report, the numbers in the side margins represent GRI Standards Appendices 71 disclosure numbers. All data included in this report is as of 31 December 2018. Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability Social Responsibility GRI Content Index 3 102-14 A Message from Our Chairman From the time we began communicating our for us to set INDEVCO’s 2025 Sustainability Pledge progress three years ago, sustainability has in the coming year. We remain committed to the UN become a strategic priority for INDEVCO. The Global Compact (UNGC) Ten Principles and submitted transition to where we are today wasn’t easy, but our first Communication on Progress in 2018. In the challenges we faced propelled us forward. addition, we’re dedicated to partnerships that help We’ve worked to unify our vision, objectives, and achieve UN Sustainable Development Goals (SDGs). initiatives across business units worldwide, and Building on our legacy as a community-oriented we’re automating environmental and social data to company, our responsibility today is more important ensure visibility into the future. than ever. Our INDEVCO family remains front and Our sustainability workshops in 2017 and 2018 center in steering our businesses responsibly. I thank allowed us to develop Global Reporting Initiative each and every one of you for your part in making (GRI)-referenced reports and have paved the way INDEVCO a sustainability pioneer in the region. Neemat G. Frem INDEVCO Chairman & CEO INDEVCO 2025 Pledge “ “ will quantify our global objectives for the first time. Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability Social Responsibility GRI Content Index 4 102-1 2 INDEVCO 3 Overview 4 5 6 Founded in 1956 by Georges N. Frem, INDEVCO sal has grown from its first 80 2m paper plant to 7 FOUNDING VALUES 8 a multinational group employing over 10,100 employees in nearly 80 operations and 20 countries 41 worldwide. Guided by our forward-thinking corporate philosophy “What is good for the community, Honesty 45 is good for the company”, sustainability has been embedded in our culture, with seven values serving Modesty as pillars to corporate development and growth. Hard Work Entrepreneurial Drive We have diversified over the years both vertically and horizontally with our major operations currently Servant Leadership divided into 5 divisions and with additional support products and services. Today, our nearly 40 plants Family Spirit in 8 countries export to customers in 95 countries, including manufacturers, distributors, retailers, Precision wholesalers, institutions, government ministries and municipalities, and non-profit organizations. *See Ethics & Integrity on page 11. 10,114 Employees 79 Operations FULL-TIME PART-TIME 39 MANUFACTURING 10,019 95 FACILITIES PERMANENT TEMPORARY 40 COMMERCIAL COMPANIES 9,338 776 & SALES OFFICES INDEVCO abides by the local labor laws of all the countries in which it operates, including right to freedom of association and collective bargaining (UN Global Compact Principle 3). The group also ensures no forced or compulsory labor at offices nda plants worldwide (UN Global Compact Principle 4). As a privately-owned company, net sales are not publicly provided. Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability Social Responsibility GRI Content Index 5 INDEVCO OVERVIEW SECTORS SERVED Agriculture Away-from-Home Beverage Building & Construction Chemical & Petrochemical Consumer Retail Dairy & Ice Cream Food Healthcare Household Care Hygiene Converting Exporting to over Other Manufacturing Countries Personal Care 95 Plastics Converting Renewable Energy International HQ Arabian Gulf Distribution Hubs & Manufacturing Locations Commercial Companies & Sales Offices Retail & Wholesale INDEVCO sal Napco National CJSC Warehousing hubs Egypt Lebanon Algeria Jordan Saudi Arabia Ajaltoun, Lebanon Dammam, Saudi Arabia England Ghana Saudi Arabia Bahrain Kuwait Spain Tissue Converting USA Greece UAE Cyprus Lebanon Tunisia Export Countries North America Iraq USA Egypt Morocco UAE Transportation & Warehousing INDEVCO Plastics, Inc. England Nigeria USA Doswell, Virginia, USA France Oman Iraq Qatar See full list of export countries in Appendix A. See full list of companies included in financial statement in Appendix C. INDEVCO Management Resources, Inc. (IMRI) maintains a 20% share in DS Smith North America Packaging and Paper. INDEVCO Plastics, Inc. is a shareholder in ePac Holdings LLC and has signed an owner-operator agreement for 5 ePac flexible packaging plants to launch in the US starting 2019. Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability Social Responsibility GRI Content Index 6 OPERATIONS & PRODUCTS INDEVCO INDEVCO INDEVCO Consumer Products Flexible Packaging Paper Containers 4,100+ Employees 2,900+ Employees 1,360+ Employees 8 Manufacturing Plants 20 Manufacturing Plants 8 Manufacturing Plants 7 Countries 6 Countries 6 Countries INDEVCO Consumer Products Division INDEVCO Flexible Packaging Division INDEVCO Paper Containers Division manufactures consumer disposables for adult, manufactures plastic raw materials, films, and manufactures single, double and triple wall baby, family, feminine, and household care. packaging, as well as paper packaging and corrugated boards and converts them into The division also produces professional and sheets. The division also produces flexographic various packaging and display solutions, paramedical away-from-home (AFH) disposable and rotogravure packaging printing inks, as well including corrugated and solid board cartons, products. as digital printed pouches. corrugated sheets, corrugated containers, point The division’s products include: adult and baby The division has established leading waste of purchase (POP) displays, and shelf-ready diapers, aluminum containers, aluminum foil, collection, segregation, washing and recycling packaging. cleaners, cling film, coasters, combo boxes, services, as we grow a circular economy in The division added recycled linerboard and cotton, detergent, dispensers, facial tissue, our core locations of operations that produce recycling fluting to our portfolio after our feminine napkins, food storage bags, garbage recycled products for secondary and tertiary recent acquisition in Greece and also produces bags, gloves, gowns and aprons, meal boxes, packaging. printing plates for high-quality printing on napkins, oven bags and baking sheets, pack corrugated packaging. carrier, panty liners, paper bags, paper cups, paper sheets, paper towels, plates and cutlery, pocket tissue, pre-cut lids, refills, sandwich boxes, sanitizers, table covers, table napkins, toilet tissue, toiletries, towels, trash bags, under pads, wet wipes. Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability Social Responsibility GRI Content Index 7 OPERATIONS & PRODUCTS INDEVCO Paper Making Phoenix Group SUPPORT SERVICES 700 Employees 150+ Employees 800 Employees 2 Manufacturing Plants 3 Manufacturing Plants 8 Companies 2 Countries 2 Countries 1 Country INDEVCO Paper Making Division manufactures Phoenix Group of Companies is a cluster of INDEVCO Group central service departments offer virgin and recycled jumbo tissue rolls for small business units that supply a wide range member companies a diverse range of consultancy converting into facial tissue, paper towels, of products from furniture manufacturing services, including customer experience napkins, and toilet tissue. management and technical prefab installations management, integrated marketing and to hygiene and tissue converting machinery, communications, customer events and exhibition high-precision CNC parts, automation, power management, content strategy and development, management and MEP services, to renewable social and digital media management, and energy solutions. Renewable energy solutions sustainability management. INDEVCO also include LED and solar lighting, biomass and PV provides other specialized Technical & Consultancy solar power, waste management sorting lines Services to companies, including business and plants, composting and waste-to-energy units. These services include audit, business solutions, water hydropanels, solar heaters, development, manufacturing and engineering, and PV pumping systems. process improvement, R&D, and more. Other additional member companies provide trading, real estate, hospitality, and technology services. http://www.indevcogroup.com/services Table of Contents Chairmanʻs Message INDEVCO Overview Environmental Sustainability