Plastic Industries

Corporate Sustainability

Plastic Industries

Environmental, Social and Governance (ESG) program.

LETTER FROM LEE MARKS

CHIEF EXECUTIVE OFFICER

WE’RE PROUD TO LEAD THE WAY TO A MORE SUSTAINABLE FUTURE, AS ONE TEAM, COMMITTED TO EXCELLENCE

2021 Corporate Sustainability Report (PDF)

OUR COMMITMENT TO ESG

At Plastic Industries, sustainability is part of our DNA. We consider our impact on the environment and our people in everything we do—from initial product design through the purchase of raw materials and the manufacturing process to product transportation. Our future goal is to become the most ethical and transparent company in the industry through an effective Environmental, Social and Governance (ESG) program.

We’ve had many ESG successes in the last year, including implementing a 5% annual carbon reduction rate, increasing the use of PCR (post-consumer recycled content) and other environmentally friendly materials, receiving above-average ratings on employee engagement surveys, maintaining a highly skilled, diverse workforce, and achieving zero audit deficiencies.

Moving forward, we intend to continue lowering transportation costs and carbon emissions while boosting product reuse and recycling rates—all while strengthening our entire supply chain to reduce waste. We also believe it’s our responsibility as industry leaders to educate our consumers, the broader public, and policymakers about the benefits of plastics—such as plastic’s ability to decrease food waste by extending product shelf life.

We intend to become the plastic industry’s number one company of choice by continuing to invest in workforce training and development, delivering top-tier salaries and benefits to our employees, and collaborating across the supply chain to protect the environment. All of our products at Plastic Industries are 100% recyclable, and we’re proud to lead the way to a more sustainable future, as one team, committed to excellence.

WE’RE Harnessing our power choice by choosing innovative waste-free and carbon-neutral approaches

LETTER FROM KIM CURTIN

REGULATORY COMPLIANCE MANAGER

THE POWER OF CHOICE AND CONNECTIVITY

In life, it’s important we remember two powerful truths that benefit all of us. First, we always have the great power of choice, and, second, we are all connected.

The choices we make each day impact our family, friends, neighbors, cities, states, regions, and country. Ultimately, our individual choices bind us together collectively and affect our planet as a whole.

I am excited to be part of the Plastic Industries management team. Here, we’re harnessing our power of choice by choosing innovative waste-free and carbon-neutral approaches and working with our internal team to implement reduction goals, recycling systems, and ways to reuse all raw material inputs used in the manufacturing process.

We value collaborative and open-minded discussions, our diverse hard-working team, and positive communication with our employees, customers, suppliers, and communities. Together, we can ensure every person within our company and supply chain understands
our goals and helps us work toward reducing our carbon footprint.

Lastly, we pride ourselves on safety and transparent business. Our facilities span the United States and are monitored, audited, and certified for SMETA, Ethical Business practices, FDA regulations, and food packaging safety with the Global Food Safety Initiative (GFSI).

I look forward to watching the seeds of our innovations grow, flourish, and positively impact our Plastic Industries team members, customers, suppliers, and our world.

Our ESG Mission

Plastic Industries is dedicated to producing socially and environmentally responsible products. We base our ESG business model and manufacturing operations on sustainability principles and are constantly striving to improve across all systems and processes. Above all, the health and safety of our diverse employees are our top priority.

These values govern all of our decisions, which we believe benefit our workers, stakeholders, the communities in which we work, and our shared world.

Ethical, Sustainable

OUR ESG MODEL

Through ethical standards, sustainable practices, and team member involvement, development, advancement, safety, reward, and recognition, we’re committed to becoming the supplier and employer of choice. Our goal is to become the most ethical and transparent company in the industry.

Plastic Industries is dedicated to lowering our carbon footprint and increasing the use of environmentally-friendly processes and materials year over year.

We are constantly working to enhance our business and eliminate waste across all areas, from transportation and inventory, to materials and overproduction, to wait time and defects using our Plastic Industries Management Systems (PIMS).

As we work to fulfill our ESG mission, Plastic Industries is focused on four key areas:

E

Product Management

E

Manufacturing Footprint

E

Social Management

E

Program Governance

We have seen many successes and have set long-term goals in each of these areas to attain unrivaled excellence in everything we do.

By The Numbers

At a Glance

100%

of Plastic Industries products are recyclable and capable of utilizing recylced resin

25%

of our leadership was comprised of women in 2021

Over the last five years, we reduced our total recordable incident rate by

35%

100%

We received an EXCELLENT SCORE on our SMETA compliance across all our plants

57%

of our workforce is comprised of minority groups, as defined by EEOC

We’ve achieved a 

15% REDUCTION

in greenhouse gas emission per pound sold in the last 3 years

23%

of our hourly workforce has been promoted internally in the last year

The average employee receives more than

30 HOURS

of safety training annually

We received a

3.5

out of 5 Gallup team member engagement score

We experienced a

1.6 REDUCTION

in safety incident rates over the last 5 years

Environmental

We know that plastic is a contentious product in today’s culture and take the creation of our products extremely seriously.

We work hard to maximize the value of our large-format plastic products by ensuring our goods are lightweight and recyclable.

Our multi-use plastics are better for the environment than single-service plastics and can even extend the shelf life of food products by up to four days—significantly helping to reduce food waste.

ESG – Environmental

Product Management

Our product management program centers around the three essential components of environmentally-responsible consumer behavior—the three Rs: reduce, reuse, and recycle.

ESG – Environmental

Product Management Success

Through the use of light-weighting, unique O2 barrier coating, and post-consumer content, Plastic Industries has achieved sustainable and environmentally-friendly product management success in several key areas.

Reduce

We are reducing the amount of plastic we produce through light-weighting, alternative product design, and utilization of substitute materials such as fillers and plant or bio-based resins.

Reuse

We are reusing plastic components, such as Post Consumer Regrind (PCR) and re-pelletized decorated materials, to extend the life of our products and reuse materials as efficiently as possible.

Recycle

Our plastic goods are ethically recycled through our reuse and waste stream management systems, as well as the usage of additives to speed the decomposition of non-recycled materials.

Our plastic dairy gallon containers are up to 10% lighter than standard plastic dairy containers, without sacrificing durability.

Our proprietary O2 barrier coating extends the life of
syrup grade and maintains recyclability.

We use 25-to-100% food grade, post-consumer content in all our herbal supplement containers.

We source reduction with 10% lightweight resins and up to 25% industrial post-consumer resins in our automobile cleaner containers.

Long-Term Goals

Increase our consumption of our recyclable and bioresins annually to achieve 25% of total pounds used by 2030

Work with our suppliers and customers to use pallets made from recycled materials

Improve plastic packaging education and communication to educate our stakeholders on the benefits of plastic materials and their usage/application. We lead by example and encourage everyone to recycle at home and work

ESG – Environmental

Manufacturing Management

We’re assessing our manufacturing footprint by tracking our greenhouse gas emissions, searching for opportunities to reduce resource consumption, and lowering internal waste rates as well as transportation and fuel costs.

GREENHOUSE GAS EMISSION (GHG) REDUCTION

We studied four years of Plastic Industry manufacturing usage data to measure and build a baseline for our greenhouse gas emissions. This information has helped us set relevant benchmarks and long-term goals for lowering our manufacturing footprint.

FACILITY WASTE REDUCTION

Through improvement in machine cycle times, reduction in machine downtimes, reduction in internal [scrip rotes], and process capability enhancements that allow us to control our bottle weights, we are minimizing our landfill contributions and internal waste rates. These practices yielded a 50% reduction in internal resin waste over three years.

TRANSPORTATION WASTE & FUEL REDUCTION

Over the last four years, we’ve been effectively implementing back hauling programs that have significantly reduced fuel and transportation waste. These changes have enabled us to save money and inefficiencies —we’ve been able to drastically cut carrier miles while also lowering freight expenses by 44%.

CONSUMPTION REDUCTION

We’re reducing our resource consumption through best practices in electricity usage, water conservation, and freight management. We’re also exploring access to clean and renewable energy resources—including wind, solar, and hydroelectric.

Long-Term Goals

We aim to reduce our annual GHG emissions by 1% with adherence to strict ISO and PAS standards and ISO 4000 compliance.

We aim to expand our recycling capacity through internal regrind and reuse, and reduce internal resin waste by half by 2025, with the goal of zero waste to landfill by 2028.

We intend to continuously improve freight miles and save on fuel costs each year by strategically moving products closer to our customers using our nine sites across North America.

Social Management

Our company’s success is contingent on cultivating and maintaining a culture of inclusiveness and respect. Plastic Industries’ social management strategy prioritizes employee health and safety; ongoing communication, engagement, and retention efforts; inclusiveness; fair wages and benefits; strong labor standards, and the opportunity to learn and grow. Our goal is to become a top-rated environment by attracting, training, and retaining the best employees.

ESG – Social

Health & Safety

We view our people as our greatest asset. That’s why Plastic Industries’ robust social management strategy begins with our first priority: the health and safety of our team members.

Our culture of continual improvement is designed to ensure that our employees feel safe when they come to work. We expect our facility managers to provide safety performance metrics to senior staff on a weekly basis to help create a safe and healthy work environment.

We have protocols in place to deal with major safety incidents should they arise and 100% of our team members have received safety training. We also implement industry best practices to assist our personnel in performing their duties in the safest possible manner.

Successes to Date

We reduced our total recordable incident rate from 4.73 to 3.15 over three years

We provide safety and 3rd component on-the-job virtual training at all plants

The average employee received over 30 hours of safety training annually

Long-Term Goals

We aim to reduce our recordable incident rate year over year to achieve zero safety incidents

We plan to provide 40 hours of safety training and education to our employees annually

ESG – Social

Labor & Management Standards

The foundation of our social management program is transparent communication with our employees—we gather and listen to their comments and suggestions on a regular basis.

We’ve also established an anonymous employee hotline to give employees a way to convey issues to higher management without fear of repercussions.

Some of our key social management goals are to retain talent and keep employees engaged and satisfied at work.

Employee engagement surveys, safety observation reports, training programs, management meetings, and other engagement tools are used at each of our nine locations to communicate with and collect feedback from employees.

We utilize Gallup’s Q12 Employee Engagement Survey to track the pulse of our corporate culture on a regular basis and assess the 12 core employee needs managers should meet to increase staff productivity.

Overall, 65% of our employees are engaged at work, and 84% percent of employees believe they contribute to the company’s success. We’re particularly pleased with those results, given that Gallup estimates that only 36% of employees are engaged on a regular basis.

We also receive outstanding SMETA audit findings on a regular basis, which evaluate responsible supply chain activities such as labor rights, health and safety, the environment, and corporate ethics.

Successes to Date

We saw a 1.0 reduction in TRIR over 3 years

We received an excellent score on our SMETA compliance across all our plants

We received a 3.5 of 5 Gallup team member engagement score

Long-Term Goals

Our goal is to improve our employee engagement score by 5% annually

ESG – Social

Diversity, Equity & Inclusion

At Plastic Industries, we seek to foster an inclusive and encouraging atmosphere where all of our employees feel respected.

We take pride in treating each other with kindness, regardless of ethnicity or gender, and leveraging our diversity to improve our performance.

We challenge ourselves on a daily basis to be more understanding of each other and to find ways to create common ground and unity within our workforce.

With nearly 600 team members, we promote fair and equal opportunity recruitment, hiring, and advancement policies across our business.

We strive to fill each unique role within our workforce free from discrimination. We seek to hire the best-qualified individual regardless of race, religion, gender, or any other trait other than the candidate’s qualification to accomplish this task, ensuring equal opportunity for all potential employees.

Successes to Date

In 2021, 25% of our leadership team were women

57% of our workforce is comprised of all minority groups, as defined by EEO

Long-Term Goals

We want women and minority groups to represent 40% of the management team by 2028

ESG – Social

Development & Training

Plastic Industries believes that professional development, training, and promotion is critical to building pride and commitment within our workforce.

We’re confident that recognizing and rewarding our team’s performance will help our organization achieve long-term competitive advantages.

We combine our recruitment efforts with a post-hire commitment to provide extensive training and growth opportunities. New Plastic Industries employees receive detailed job orientation and on-boarding, as well as on-the-job training. All our employees are compensated for their unique and developed skills, and they are given priority for promotions and new opportunities within the company.

We’ve developed extra training programs, both live and virtual, to foster growth and uncover potential leaders. Team members receive an average of 33 hours of additional training every year, and we perform succession planning sessions on a regular basis in order to maximize staff development.

In 2020, we established our “Pay For Skills” initiative, which allows our employees to expand their job skills and knowledge while also receiving increased financial benefits.

Our team’s ability to improve their skills offers them professional advancement opportunities that ultimately improve employee retention and satisfaction. Since the launch, we’ve promoted over 100 team members to higher-level positions within the organization.

Program Governance

We’ve formalized our long-standing commitment to sustainability by establishing an ESG Committee—a multi-disciplinary group of leaders from across the organization, including the president and CEO.

The committee oversees our company’s compliance with laws, regulations, standards, controls, and initiatives.

We’ve also extended these expectations to our supply partners as well in the form of a Supplier Code of Conduct.

ESG – Governance

Ethical, Transparent Governance

We use uniform data and metrics tracking, hold ourselves and our suppliers to high ethical standards, and implement sound risk management processes to reach our goal of becoming the industry’s most ethical and transparent organization.

DATA ACCURACY & ACCOUNTABILITY

To track consistent measurements and metrics around our ESG targets, we utilize reliable data and accountability systems. We audit and verify data to provide “one source of truth” and maintain internal control and success.

BUSINESS ETHICS

We adhere to the highest code of ethics and corporate conduct, both internally and externally, and only collaborate with vendors, customers, and suppliers who share our same values, integrity, and ethical standards. We also successfully implemented our monitored, online Governance Training Program that requires a passing test score at the end of each module and addresses a variety of topics including legal compliance, sexual harassment, and management ethics.

RISK MANAGEMENT

Plastic Industries has implemented best-in-class security and risk management systems as well as data protection, cyber security, and insurance services. We have conducted and passed annual cyber security audits, including penetration tests, user Phishing training, and alerts.

Successes to Date

We achieved targeted annual EBITDA growth for the last three years

We developed and cascaded proper delegation of authority standards

Long-Term Goals

New employees must complete business ethics training within 30 days of hire

Reduce insurance rates while still safeguarding our business

We’re targeting a 90% supplier audit program compliance success rate

We aim to achieve zero audit deficiencies across the boar

Plastic Industries is dedicated to achieving our ESG goals and believe we can attain these goals while remaining honest and ethical.

From product design to manufacturing procedures and product transportation, we consider the environment, our employees, and our ethics in everything we do. We aspire to expand plastics knowledge and improve the entire supply chain by collaborating with our communities, team members, customers, and competitors to create a better world.

Plastic Industries: put your trust in our containers.