2022 Responsibility Report
At PCA, we are committed to sustainable and responsible growth over the long term. We are very pleased to publish our Responsibility Reports to our stakeholders and share the progress we have made in doing our part to ensure the continued health of the resources on which we all depend.
2022 PCA RESPONSIBILITY REPORT
GRI Index
Disclosure | Description | Detail |
---|---|---|
The Organization and Its Reporting Practices | ||
2-1 | Organizational Details | Packaging Corporation of America (PCA) is publicly held, incorporated in Delaware, USA. Our common stock is listed on the New York Stock Exchange under the symbol “PKG.” PCA headquarters are located in Lake Forest, Illinois, USA, and the company operates primarily in the United States. |
2-2 | Entities Included in the Organization’s Sustainability Reporting | 2022 10-K, Exhibit 21.1 |
2-3 | Reporting Period, Frequency and Contact Point | Both sustainability and financial reporting are for PCA’s fiscal year, which aligns with the calendar year. The frequency of sustainability reporting is annual, and the reporting period is January 1, 2022, to December 31, 2022. This report was published June 30, 2023. For questions about the report or reported information, please contact responsibility@packagingcorp.com. |
2-4 | Restatements of Information | Any restatements of information are noted with an adjacent footnote. |
2-5 | External Assurance | No external assurance for PCA’s 2022 Responsibility Report. All data and information has undergone internal review. |
Activities and Workers | ||
2-6 | Activities, Value Chain and Other Business Relationships | PCA operations align to the Forestry (specifically production of pulp and paper) and Packaging sectors as classified by GRI.
No significant changes to the organization during 2022. |
2-7 | Employees | 2022 Responsibility Report, page 20 page 25 |
2-8 | Workers Who Are Not Employees | PCA utilizes contractors to carry out non-routine tasks to supplement the core competencies of our operations. This ensures that the work is done efficiently and effectively. Temporary employees supplement our workforce, especially during peak seasons. This allows flexibility in scheduling employee work hours and in production planning. We also engage temporary employees to do piece work for low-volume specialized boxes and displays that are assembled by hand. Reputable staffing agencies are used to source temporary employees, and each is required to agree to, and is bound by, PCA legal agreements mandating compliance with applicable law and other legal provisions. |
Governance | ||
2-9 | Governance Structure and Composition | Corporate Governance Guidelines Audit Committee Charter Compensation Committee Charter Section 162(m) Subcommittee Charter Nominating and Governance Committee Charter Sustainability Committee Charter Board of Directors Senior Management Team |
2-10 | Nomination and Selection of Highest Governance Body | Corporate Governance Guidelines |
2-11 | Chair of the Highest Governance Body | Board Committee Composition |
2-12 | Role of the Highest Governance Body in Overseeing the Management of Impacts | Corporate Governance Guidelines |
2-13 | Delegation of Responsibility for Managing Impacts | Nominating and Governance Committee Charter |
2-14 | Role of the Highest Governance Body in Sustainability Reporting | PCA’s Sustainability Committee oversees sustainability reporting. |
2-15 | Conflicts of Interest | Corporate Governance Guidelines Code of Ethics for Directors Code of Ethics for Executive Officers and Principal Accounting Personnel |
2-16 | Communication of Critical Concerns | Procedures for Handling Complaints |
2-17 | Collective Knowledge of the Highest Governance Body | Board of Directors |
2-18 | Evaluation of the Performance of the Highest Governance Body | Corporate Governance Guidelines |
2-19 | Remuneration Policies | Compensation Committee Charter Section 162(m) Subcommittee Charter |
2-20 | Process to Determine Remuneration | SEC Form DEF 14A, pages 21–52 |
2-21 | Annual Total Compensation Ratio | SEC Form DEF 14A, page 49 |
Strategy, Policies and Practices | ||
2-22 | Statement on Sustainable Development Strategy | 2022 Responsibility Report, page 2 page 4 pages 32–37 page 72 |
2-23 | Policy Commitments | 2022 Responsibility Report, page 72 Code of Ethics and Business Conduct
PCA follows a “precautionary approach” when developing, and prior to offering, new products. We seek to identify potential hazards and risk early in development, such that they can either be eliminated or assuredly managed to a level where they are acceptably mitigated for purposes of our customers, employees, communities and other stakeholders. Sensitivity to the impact that our products and their sourcing/production/provision may have on health, safety and the environment is a key underpinning of our sustainability strategy and objectives. |
2-24 | Embedding Policy Commitments | Corporate Governance Guidelines Code of Ethics and Business Conduct Code of Ethics for Directors |
2-25 | Process to Remediate Negative Impacts | Procedures for Handling Complaints Code of Ethics and Business Conduct |
2-26 | Mechanisms for Seeking Advice and Raising Concerns | Procedures for Handling Complaints Code of Ethics and Business Conduct |
2-27 | Compliance With Laws and Regulations | In 2022, PCA agreed to pay $2.5 million in civil penalties to settle allegations of violation of the Clean Air Act’s General Duty Clause and Risk Management Program Regulations at our containerboard mill in DeRidder, Louisiana. PCA did not admit liability for violation of the Clean Air Act in connection with the settlement. |
2-28 | Membership of Associations | 2022 Responsibility Report, page 59 |
Stakeholder Engagement | ||
2-29 | Approach to Stakeholder Engagement | 2022 Responsibility Report, page 7 |
2-30 | Collective Bargaining Agreements | 2022 Annual Report, page 8 page 14 page 74 |
Disclosure on Material Topics | ||
3-1 | Process to Determine Material Topics | 2022 Responsibility Report, page 7 |
3-2 | List of Material Topics | 2022 Responsibility Report, page 7 |
Environmental Disclosures | ||
301 | Materials Management Approach | 2022 Responsibility Report, page 45 |
301-1 | Materials Used by Weight or Volume | 2022 Responsibility Report, page 46 |
301-2 | Recycled Input Materials Used | 2022 Responsibility Report, page 46 |
301-3 | Reclaimed Products | 2022 Responsibility Report, page 48 |
302 | Energy Management Approach | 2022 Responsibility Report, page 38 |
302-1 | Energy Consumption Within the Organization | 2022 Responsibility Report, page 40 |
302-2 | Energy Consumption Outside of the Organization | 2022 Responsibility Report, page 40 |
303-1 | Interactions With Water as a Shared Resource | 2022 Responsibility Report, page 51 |
303-2 | Management of Water Discharge-Related Impacts | 2022 Responsibility Report, page 52 |
303-3 | Water Withdrawal | 2022 Responsibility Report, page 51 |
303-4 | Water Discharge | 2022 Responsibility Report, page 52 |
305 | Emissions Management Approach | 2022 Responsibility Report, page 41 |
305-1 | Direct (Scope 1) GHG Emissions | 2022 Responsibility Report, page 41 |
305-2 | Energy Indirect (Scope 2) GHG Emissions | 2022 Responsibility Report, page 41 |
305-3 | Other Indirect (Scope 3) GHG Emissions | 2022 Responsibility Report, page 41 |
305-4 | GHG Emissions Intensity | 2022 Responsibility Report, page 42 |
305-5 | Reduction of GHG Emissions | 2022 Responsibility Report, page 41–42 |
305-6 | Emissions of Ozone-Depleting Substances (ODS) | Emissions from unrecovered refrigerant are a de minimis source of GHG emissions for PCA. |
305-7 | Nitrogen Oxides (NOx), Sulfur Oxides (SOx) and Other Significant Air Emissions | 2022 Responsibility Report, page 42 |
306 | Waste Management Approach | 2022 Responsibility Report, page 54 |
306-2 | Waste by Type and Disposal Method | 2022 Responsibility Report, page 54 |
306-4 | Transport of Hazardous Waste | 2022 Responsibility Report, page 54 |
307-1 | Non-Compliance with Environmental Laws and Regulations | In 2022, PCA agreed to pay $2.5 million in civil penalties to settle allegations of violation of the Clean Air Act’s General Duty Clause and Risk Management Program Regulations at our containerboard mill in DeRidder, Louisiana. PCA did not admit liability for violation of the Clean Air Act in connection with the settlement. PCA did not have any material violation of environmental laws in 2021, 2020, 2019 or 2018. |
Social Disclosures | ||
401 | Employment Management Approach | 2022 Responsibility Report, page 20 |
401-1 | Employee Hires and Turnover | 2022 Responsibility Report, page 20 |
401-2 | Benefits Provided | 2022 Responsibility Report, pages 22–23 |
401-3 | Parental Leave | 2022 Responsibility Report, page 23 |
403-1 | Occupational Health and Safety Management System | 2022 Responsibility Report, page 12 |
403-2 | Hazard Identification, Risk Assessment and Incident Investigation | 2022 Responsibility Report, page 13 |
403-3 | Occupational Health Services | 2022 Responsibility Report, page 13 |
403-4 | Worker Participation, Consultation and Communication on Occupational Health and Safety | 2022 Responsibility Report, page 14 |
403-5 | Worker Training on Occupational Health and Safety | 2022 Responsibility Report, page 12 |
403-6 | Promotion of Worker Health | 2022 Responsibility Report, page 15 |
403-7 | Prevention and Mitigation of Occupational Health and Safety Impacts Directly LInked by Business Relationships | 2022 Responsibility Report, page 11 |
403-8 | Workers Covered by an Occupational Health and Safety Management System | 2022 Responsibility Report, page 12 |
403-9 | Work-Related Injuries | 2022 Responsibility Report, page 15 |
404 | Training and Education Management Approach | 2022 Responsibility Report, page 16 |
404-1 | Average Hours of Training Per Year Per Employee | 2022 Responsibility Report, page 16 |
404-2 | Programs for Upgrading Employee Skills and Transition Assistance Programs | 2022 Responsibility Report, pages 16–19 |
404-3 | Percentage of Employees Receiving Regular Performance Reviews | PCA utilizes various formal and informal performance management processes, trainings and development programs to build competence among employees. Employees are evaluated on job performance, including performance against the expected standards of conduct. |
405 | Diversity and Equal Opportunity Management Approach | 2022 Responsibility Report, page 24 |
405-1 | Diversity of Governance Bodies and Employees | 2022 Responsibility Report, page 25 |
413 | Local Communities Management Approach | 2022 Responsibility Report, page 28 |
413-1 | Operations with Local Community Engagement | 2022 Responsibility Report, page 28 |
413-2 | Operations with Significant Actual and Potential Negative Impacts on Local Communities | PCA is not aware of any current operations that pose actual or potential material negative impacts on the communities where we operate. |
416 | Consumer Health and Safety Management Approach | 2022 Responsibility Report, page 26 |
416-1 | Assessment of the Health and Safety Impacts | 2022 Responsibility Report, page 27 |
416-2 | Incidence of Non-Compliance Concerning Health and Safety | PCA did not have any incidents of non-compliance with product safety regulations or material incidents of non-compliance with voluntary product safety codes in 2022. |