In its latest sustainability report, Avery Dennison Corporation AVY announced plans to cut absolute greenhouse gas (GHG) emissions by at least 3% every year from now till 2025. This is in sync with the company’s strategy of reducing environmental impacts of manufacturing.
One of the serious challenges companies face now a days is cutting emissions while maintaining growth. Avery is working hard to reduce carbon emissions that come from powering its 170 facilities which are driven by energy from electricity and natural gas. Accordingly, the company continues to pursue its aim of reducing GHG indexed to net sales by 15% by 2015, compared to a 2005 baseline. The company expects to achieve this goal by the end of 2015.
Notably, on the basis of “The 3% Solution” approach, developed by World Wildlife Fund and Carbon Disclosure Project, Avery expects to reduce emissions by a minimum of 26% over the next decade. To meet the new goal the company has adopted every option, including renewable energy sources and fuel switching.
Avery believes customer engagement to be an opportunity to promote sustainability. Its innovation work is focused on providing solutions that not only help customers but also reduce their environmental impact. Also, its products and solutions promote sustainability for brands and consumers.
The company has integrated life cycle assessment (LCA) into product development by employing Greenprint, an innovative process through which it can calculate the consumption of water, electricity, fossil material and bio-based material along with the amount of solid waste and GHG emissions.
At the factory level, Avery implemented a pilot program. Under this, the company employed wireless submeters to measure the minute-to-minute consumption of individual pieces of equipment in order to fine-tune the use of each for optimal energy consumption.
Additionally, the company declared further objectives in its sustainability report, like reduction of landfill waste by 95% and minimizing waste from the company’s label products by 70%. It is also expected that 70% of purchased film, chemicals and end products will match the company’s environmental and social guiding principles.
Avery will continue to cultivate a diverse, engaged, safe, productive and healthy workforce. Per the report, the company will also strive to achieve revenue growth from sustainability-driven products and services.
Pasadena, CA-based Avery Dennison manufactures pressure-sensitive materials and tickets, tags, labels and other converted products. The company has over 200 manufacturing and distribution facilities in more than 60 countries.
Currently, Avery has a Zacks Rank #3 (Hold).
Some better-ranked industrial products sector stocks include AGCO Corporation AGCO, AO Smith Corp. AOS and AptarGroup, Inc. ATR. All these stocks carry a Zacks Rank #1 (Strong Buy).
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