Double materiality assessment

The double materiality assessment evaluated the impacts, risks and opportunities associated with ALPLA’s activities from both an impact materiality and financial materiality perspective. The process involved key internal stakeholders and considered the entire value chain. After ALPLA colleagues reviewed the positive and negative impacts (impact materiality) as well as risks and opportunities (financial materiality) of a long list of sustainability topics, a detailed assessment was conducted for a shortlist of topics to identify the material ones. A threshold of 0.65 (for either impact or financial materiality) was applied to determine our conclusion.

In 2025, we will work on updating the materiality assessment, including the views of external stakeholders as well.

The following topics emerged as material as a result of our double materiality assessment:

• Climate change (ESRS E1): all three sub-topics – energy, climate change mitigation and climate change adaptation – are highly material to ALPLA from both an impact and financial materiality perspective. This is due to our global operations in manufacturing plastic packaging, which inherently involve energy consumption and related greenhouse gas emissions.
   
• Pollution (ESRS E2): only the sub-topic of microplastics was deemed material, something which was also prompted by the increasingly stringent regulations surrounding it.
   
• Water (ESRS E3): as nearly 40% of our plants are located in areas experiencing high or severe water stress, ALPLA has chosen to cover this topic in the current Report to reflect its growing significance.
   
• Circular economy (ESRS E5): all sub-topics in this category – resource in- and outflows and waste – are material to ALPLA. Resource use represents one of the industry’s greatest challenges in the journey towards decarbonisation. ALPLA is committed to contributing to a circular economy for plastic packaging by applying the 4Rs (reduce, reuse, recycle, replace), recognising both the risks and opportunities it presents.
   
• Own workforce (ESRS S1): several sub-topics related to employees are considered material. As a family-owned business, ALPLA values fostering a sense of belonging to the ‘Family of Pioneers’ and aims to be a responsible global employer to all 24,000 internal and external employees worldwide. Our employees are our greatest asset, enabling us to deliver value to our customers and consumers worldwide.
   
• Business conduct (ESRS G1): governance and business ethics are crucial for ALPLA as they are directly linked to business performance and reputational risk. Most sub-topics – corporate culture, whistle-blowing, corruption and bribery – in this category are therefore material from both an impact and financial perspective.