Crown Holdings Sustainability Report
1 Forward Momentum 2021 SUSTAINABILITY REPORT
2 1 FROM OUR CEO 1 2 WHO WE ARE 2 Our Business 4 Products Sold 5 Our Guiding Principles 6 Our Value Chain 7 3 SUSTAINABILITY STRATEGY 11 Stakeholder Engagement: Building Lasting Partnerships 13 Materiality: The Core of Our Reporting 15 Advancing Impact Through Partnerships 18 4 FAST-TRACKING PROGRESS 21 Twenty by 30 Program Progress Report 22 Driving Progress from Within 34 Achievements & Recognition 35 Critical Areas of Focus 36 5 FOCUSING ON OUR CORE 49 Problem-Solving with the Right Substrate 54 6 OUR PEOPLE & COMMUNITIES 55 Employee Data 56 Diversity & Inclusion 59 Developing Our Employees 62 Building the Workforce of Tomorrow 63 Sustaining Our Communities 64 7 REPORT OVERVIEW 66 Data Collection & Reporting Boundaries 67 External Verification 67 Contact Crown 67 8 REPORTING STANDARDS 68 GRI Index 69 SASB Disclosures 76 2021 TCFD Report 79
1 The packaging products we deliver have never been so critical to the sustainability movement. From the aluminum can that is the highest-recycled drinks package in the world, to the steel food can that protects valuable food products, to the transit packaging that ensures the products shipped around the world are protected, Crown is committed to continuing to deliver high quality, sustainable products to our customers and consumers every day. We are one year into the implementation of our comprehensive Twenty by 30 program and are already making significant strides toward our goals. In 2019, we joined RE100, an initiative led by The Climate Group and CDP that is dedicated to accelerating the transition to renewable electricity. Taking this pledge was a natural fit for our business as we examined areas where we could evolve, including actively seeking alternative sources of power. We began using 100% renewable electricity in the U.K. in 2019, and in 2020, we became the first metal packaging manufacturer to activate renewable electricity in 100% of its U.S. and Canadian beverage can plants. In 2021, we also expanded the commitment of our Mexican beverage can operations to renewable electricity. These combined efforts will help us reach our goal of 75% renewable electricity by 2030 in accordance with our Science Based Targets initiative (SBTi) goal and 100% by 2040, in line with our Net-Zero goal via The Climate Pledge. Another critical element in our sustainability journey is product lifecycle and recyclability. The more that valuable materials can be captured and recycled, the greater the impact on reducing emissions, energy consumption and waste, all factors that contribute to climate change. Consumers recycle aluminum beverage cans at a rate of 69% on average globally, a rate that is more than double that of plastic bottles. With this in mind, we continue to promote the sustainability benefits of aluminum as a permanent and infinitely reusable material. To further advance recycling rates globally, our Twenty by 30 program includes bold new global recycling rate goals for aluminum beverage cans, which you can read about in this report. Other notable progress shared in this report includes reducing our Scope 1 and Scope 2 greenhouse gas emissions by 11% against our baseline year of 2019 and moving 28% of our global locations to zero waste to landfill. While we are proud of these accomplishments, we know our path is not a linear journey. We are committed to continuous progress across all aspects of our business in considering what we make, how we make it and where we can influence change by collaborating with our customers, suppliers and the industry at large. Our 26,000-plus global associates have been instrumental to our sustainability achievements, and I would like to thank them for their drive and commitment to helping us do better every day. We are committed to being leaders in sustainability. As part of that pledge, we will begin formally reporting our sustainability progress annually, with our next report to be issued in 2023. I look forward to sharing more updates on our progress as we continue our collective journey to a more sustainable future. TIMOTHY J. DONAHUE President and Chief Executive Officer I am excited to share our 2021 Sustainability Report with you, as it serves as the next chapter of our sustainability journey. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
2 2 Who We Are Crown Holdings, Inc. is a global packaging technology innovator dedicated to delivering innovation that helps its customers build their brands and connect with consumers around the world. Our innovations touch the lives of millions of people every day in dynamic, fast-growing industries. 2 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
3 CROWNGLOBALHQ YARDLEY, PA Crown Global Locations CROWN AT-A-GLANCE: 2021 HIGHLIGHTS growth in global beverage can volume 9 % employees globally 26 K manufacturing sites in 40 countries 200 of our total annual R&D spend was on sustainability-related projects 60 % in net sales $ 11.4 B FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
Our Business We are a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. OUR TECHNOLOGIES ⹅ Aluminum and steel beverage cans and ends ⹅ Aluminum and steel food cans and ends ⹅ Decorative steel packaging ⹅ Glass bottles for beverage products ⹅ Metal vacuum and composite closures ⹅ Steel aerosol cans ⹅ Steel beverage crowns and aluminum caps ⹅ Transit and protective packaging ▢ Plastic, woven and steel strapping ▢ Stretch film, honeycomb, container liners, transit protection airbags and edge protectors for pallet unitization ▢ Automatic and semi-automatic manufacturing equipment and tools MARKETS WE SERVE ⹅ B e v e r a g e ⹅ Food ⹅ General Industrial ⹅ Health & Beauty ⹅ Household/Industrial ⹅ Luxury Goods ⹅ M e t a l s ⹅ Promotional NET SALES BY SEGMENT ⹅ Americas Beverage—39% ⹅ European Beverage—16% ⹅ Asia Pacific—12% ⹅ Transit Packaging—22% ⹅ O t h e r — 1 1 % NET SALES BY GEOGRAPHIC AREA ⹅ United States & Canada—44% ⹅ Europe, Middle East & North Africa—24% ⹅ Central & South America—17% ⹅ Asia Pacific—15% NET SALES BY PRODUCT ⹅ Beverage Cans—64% ⹅ Food Cans & Closures—9% ⹅ Transit Packaging—22% ⹅ O t h e r — 5 % 4 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
5 5 Products Sold 1 Reflects the sale of European tinplate business, which included our Crown Food Europe Business Unit, as of August 31, 2021. 2 Includes cornerboards, angleboards, door cores and custom paper packaging solutions. TRANSIT PACKAGING In Metric Tons 2019 2020 2021 Steel 301,674 264,907 303,431 Plastic 175,694 168,431 186,789 Wood/Paper 2 172,671 146,072 165,688 METAL PACKAGING In Billions 2019 2020 2021 Beverage Cans 70.25 72.87 79.33 Food Cans 15.41 16.50 6.31 1 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
6 Our Guiding Principles No matter where we are in the world, there are five values at the heart of everything we do. These values are the foundation for our business, our sustainability journey and our path forward. PUT PEOPLE FIRST Our global workforce is the key to our success. The safety of our team members is critical to us, which is why our Total Safety Culture has become integrated into all facets of our operating policy. This framework puts the health and safety of our team first and promotes a healthy working environment. We consider a diverse and inclusive workforce to be essential to our day-to-day operations. We must welcome and encourage different points of view and backgrounds to strengthen team spirit and improve the products and services we offer to our customers. We foster an inclusive environment for our team members, allowing our employees to have an experience of belonging, to be authentic in their interactions and to contribute to a higher level of performance. We always strive to build a cohesive and resilient organization. GOVERN ETHICALLY & RESPONSIBLY We operate in the spirit and letter of the law, upholding high ethical standards wherever we conduct business. We maintain and regularly review our governance principles, policies and practices for the purpose of meeting or exceeding current legal requirements and commercial best practices. OPERATE SUSTAINABLY Sustainability is ingrained in every aspect of our business, including how we produce our products, how we treat our team members and how we interact with our suppliers and the community around us. We are proud of our continued progress in reducing our use of materials and resources and decreasing energy consumption even as our manufacturing footprint grows and production volumes increase. Our Twenty by 30 initiative sets our sights higher and continuously challenges us to assess every aspect of our business for potential improvement. COMMITMENT TO QUALITY AND SAFETY We are committed to the satisfaction and success of our customers. This includes continuously improving the cost-effectiveness and performance of our products and processes, placing a particular emphasis on innovation and maintaining strong standards of consumer safety. We deliver on these commitments through our One Crown Standard, which ensures the highest global safety standards and works to eliminate Chemicals of Concern (COC) in the manufacturing process. Our integrated, global approach to continuous improvement recognizes the interaction and impact every function and activity has on the quality of our products. INNOVATE EVERY DAY Maintaining our position as a top global supplier requires constant innovation, determination and a deep understanding of customer and market needs. We remain inspired by our founder, William Painter, who revolutionized the beverage industry with the invention of the crown cork (now known as the bottle cap) and driven by a desire to help customers make a meaningful impact with their brands through packaging. We strive to develop technologies that change how consumers view, use and engage with metal packaging, including colors, designs and advanced finishes that strengthen brand recognition and heighten consumer appeal. Our Transit Packaging Division is also focused on innovation, developing solutions for reducing and reusing packaging materials as part of a long-term strategy to optimize efficiencies and enhance the sustainability of the supply chain. In addition to the products and processes themselves, we aim to be innovative in our sustainability strategy, constantly striving for better, more efficient ways to do what we do every day. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
7 Our Value Chain From the point of material sourcing to the point of consumption—and beyond— we carefully consider what goes into our products and how they make their way through the market and the environment. Knowing it is critical to implement sustainability and reduce our environmental impact at each stage of our products’ lifecycles, we continue to invest in people and innovate our processes and technologies. We also remain closely collaborative and communicative with our partners up and down the value chain to ensure that we practice ethically and with mindfulness. METAL MINING & RECYCLED CANS Collection of Recycled Metal, Mining METAL PRODUCTION Processing and Rolling of Metals DISPOSAL/RECYCLING Collection and Delivery of Recycled Cans CUSTOMERS Filling and Sealing of Canned Products RETAILERS Food, Beverage and E-Commerce Businesses CAN PRODUCTION Production and Decoration of Cans CONSUMERS Purchase, Consumption and Disposal of Canned Products SUPPLIERS CROWN CUSTOMERS Metal Packaging Value Chain FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
8 SUPPLIERS CROWN CUSTOMERS PAPER PRODUCTION PRINTING & CONVERTING INDUSTRIES LOGGING, PULPING, CURBSIDE RECYCLING R E C Y C L E MARKET DISTRIBUTORS Industrial and Commercial RETAILERS Freight Shippers, White Goods Manufacturing, and Consumer Goods CONSUMERS Purchase, Consumption and Disposal of Paper Products DISPOSAL/RECYCLING Collection and Delivery of Recycled Paper Transit Packaging—Paper Value Chain ANGLEBOARD & CORNERBOARD MANUFACTURING FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
9 PLASTIC PRODUCTION DISTRIBUTORS Industrial and Commercial DISPOSAL/RECYCLING Collection and Delivery of Recycled Plastic OIL EXTRACTION & CURBSIDE RECYCLING RETAILERS Freight Shippers and Brick, Lumber and White Goods Manufacturing CONSUMERS Purchase, Consumption and Disposal of Plastic Products Transit Packaging—Plastic Value Chain SUPPLIERS CROWN CUSTOMERS PLASTIC STRAP PRODUCTION PELLETISING & SIZE REDUCTION SORTING FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
10 DISTRIBUTORS Industrial and Commercial DISPOSAL/RECYCLING Collection and Delivery of Recycled Cans METALS MINING & STEEL RECYCLING RETAILERS/E-COMMERCE Freight Shippers and Brick, Lumber and White Goods Manufacturing CONSUMERS Purchase, Consumption and Disposal of Steel Products STEEL PRODUCTION Transit Packaging—Steel Value Chain SUPPLIERS CROWN CUSTOMERS STEEL STRAP PRODUCTION STEEL SEAL & TOOL FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
11 11 Sustainability Strategy From our founder, William Painter’s, first game-changing technology, the crown cork, to the 26,000-employee organization we are today, our Company continues to follow a business strategy rooted in strong values, built on a clear vision and focused on future growth. As a global organization, we understand the role we play in supporting critical consumer markets and driving innovation that impacts people every day. We also strive to recognize our responsibility to be watchful stewards of our environment and our communities. Our values and priorities guide our decisions and actions and reflect our commitment to being a collaborative partner, best-in-class employer and responsible corporate citizen. 3 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
12 Working Together Emphasizes the importance of the safety, health and welfare of our team members being woven into every aspect of our business, as well as focuses on D&I and active engagement with our workforce. As we closed in on our 2020 goals and began planning for the next decade of progress, we were motivated to accelerate our sustainability commitments. Our robust Twenty by 30 program was born, which includes goals that stretch across the environmental, social and governance (ESG) spectrum and are grounded in our long-standing commitment to driving change. Twenty by 30 encompasses 20 measurable sustainability goals to be completed by or before the end of 2030. The program identifies five distinct pillars of action that represent topics of urgent global concern and reflect the priorities of our internal and external stakeholders. It includes greenhouse gas (GHG) emissions reductions that align with our Science Based Targets initiative (SBTi) and water stewardship goals, as well as an elevation of our focus on material use efficiency, recycling, responsible and ethical sourcing, and food contact and chemical safety. Additionally, Twenty by 30 tackles meaningful areas of sustainability, such as employee safety and Diversity & Inclusion (D&I). All pillars are underpinned by our well-established governance and ethics principles and practices. Each pillar contains several goals, all set against a 2019 baseline, that together create a framework for larger change. See pages 22–32 of this report for a summary of all 20 goals that make up the Twenty by 30 program and our progress against them. Never Compromise Enacts Crown’s Product Stewardship strategy. We are committed to working throughout our product lifecycle to ensure that our materials are sourced responsibly, our products are designed to minimize risks to people and the environment and the products we manufacture meet the highest safety standards. Climate Action Focuses on production efficiency, product and process innovation, strategic material procurement and utilization of renewable electricity. This strategy acknowledges how climate change can have financial impacts on our global business—however, we can create opportunities for growth by proactively mitigating risks throughout our value chain. Resource Efficiency Supports our aim to protect water sources—one of our world’s most valuable resources. We are committed to monitoring our water quality and usage, establishing best practices for water use efficiency and investing in innovative equipment that allows for water reuse. Optimum Circularity Implements Crown’s Circularity Strategy throughout our value chain by eliminating wasteful resource use, utilizing design and innovation to decrease the footprint of our products and by working to extend our products’ lifecycle via increased recycled content and recycling rates. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
13 Stakeholder Engagement: Building Lasting Partnerships We interact with a variety of stakeholders on a global, national and local scale to exchange ideas, help us prioritize critical issues, inform our business strategy and maximize the value we deliver. Appropriate stakeholders are identified based on several factors, including alignment with our goals and values, expertise, willingness to collaborate, location and reputation. We strive to maintain an open and ongoing dialogue with each group. The frequency of engagement for each of our stakeholder groups is ongoing and continuous. We engage with each of the listed stakeholder groups at least annually and often on a monthly or weekly basis, depending on the nature of the dialogue and the weight of the discussion. Stakeholder engagement occurs at all levels of the Company, from employees in our manufacturing plants to senior management in our Business Units and Divisions to our Board of Directors. Examples of how we engage with our main stakeholder groups are outlined on the next page. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
14 Methods of Engagement STAKEHOLDER GROUP: INVESTORS Methods of Engagement: ⹅ Annual report ⹅ Conference participation ⹅ Corporate website ⹅ Investor releases ⹅ Quarterly earnings calls ⹅ Shareholder meetings ⹅ Conversations with investors (subject to applicable securities laws) ⹅ Materiality assessment interviews Relevant Topics and Issues: ⹅ Business performance, governance practices, sustainability strategy STAKEHOLDER GROUP: INDUSTRY TRADE ASSOCIATIONS Methods of Engagement: ⹅ Organizational memberships and leadership ⹅ Conference and event participation ⹅ Research efforts ⹅ Sponsorships ⹅ Materiality assessment interviews Relevant Topics and Issues: ⹅ Product quality and safety, increasing the recycling rate of packaging materials, consumer education about the sustainability of metal packaging and recycling practices, regulations and legislation STAKEHOLDER GROUP: COMMUNITY Methods of Engagement: ⹅ Community engagement programs ⹅ Philanthropic efforts ⹅ Volunteering Relevant Topics and Issues: ⹅ Environmental issues, plant openings and closings, site expansions, employment, health and safety issues, local community issues, volunteer efforts STAKEHOLDER GROUP: EMPLOYEES Methods of Engagement: ⹅ Everyday management ⹅ Community projects ⹅ Corporate website/intranet ⹅ Employee engagement surveys ⹅ Focus groups ⹅ Training opportunities/career development ⹅ Materiality assessment interviews Relevant Topics and Issues: ⹅ Employee job satisfaction, career development, environmental sustainability, operational efficiency, health, safety and wellness, ethical business practices, training and education, Diversity & Inclusion, business performance, product and process innovation STAKEHOLDER GROUP: CUSTOMERS Methods of Engagement: ⹅ Customer relationship managers ⹅ Direct contact through sales, sustainability and regulatory teams ⹅ Conferences and trade shows ⹅ Corporate website ⹅ Customer satisfaction surveys ⹅ Innovation meetings ⹅ Materiality assessment interviews Relevant Topics and Issues: ⹅ Product quality and safety, energy and carbon footprint, water stewardship, waste management, ethical business practices, responsible sourcing, product and process innovation and legislation STAKEHOLDER GROUP: NON-GOVERNMENTAL ORGANIZATIONS (NGOS) Methods of Engagement: ⹅ Collaborative partnerships ⹅ Meetings ⹅ Organizational memberships Relevant Topics and Issues: ⹅ Diverse issues depending on focus of NGO STAKEHOLDER GROUP: SUPPLIERS Methods of Engagement: ⹅ Sourcing team engagement ⹅ Assessments and audits ⹅ Innovation meetings ⹅ Logistical planning ⹅ Partnership meetings ⹅ Trainings and workshops ⹅ Supplier surveys ⹅ Materiality assessment interviews Relevant Topics and Issues: ⹅ Product quality and safety, responsible sourcing, ethical business practices, product and process innovation, compliance with regulations and legislation, environmental and sustainability practices STAKEHOLDER GROUP: EDUCATIONAL INSTITUTIONS Methods of Engagement: ⹅ Apprenticeship programs ⹅ Equipment donation for training programs ⹅ Guest lecturing on packaging- and engineering- related topics ⹅ Research partnerships ⹅ Partnerships with schools and universities ⹅ Student fairs Relevant Topics and Issues: ⹅ Training and education, employment, research and development activities STAKEHOLDER GROUP: GOVERNMENT & REGULATORY AUTHORITIES Methods of Engagement: ⹅ Governmental affairs liaisons ⹅ Meetings ⹅ Plant tours Relevant Topics and Issues ⹅ Compliance with regulations and legislation, ethical business practices FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
15 Materiality: The Core of Our Reporting Defining Materiality We strive to conduct a formal Sustainability Materiality Assessment in accordance with the Global Reporting Initiative’s (GRI) guidelines every two years. Our latest assessment began in 2021 and was completed in March 2022. Performing a formal Sustainability Materiality Assessment helps identify a set of sustainability-related focus areas that our stakeholders care about and that intersect with our business. These focus areas are identified with the input of over 100 internal and external stakeholders. See pages 16–17 for a summary of priority topics from our latest assessment. Our process when performing a Sustainability Materiality Assessment includes three main steps: 1. IDENTIFICATION We update and hone our assessments each time to reflect the key changes since our last report, including: ⹅ Significant changes in our business, such as acquisitions and divestitures. ▢ Alignment with GRI Standards, reporting via the latest reporting guidance offered. ▢ Other changes related to our business, customers, public policy, the context in which we do business and the evolving expectations of key stakeholders. ⹅ While sustainability is an evolving field, topics and lessons learned from our initial materiality assessment remain relevant today. During each assessment, we conduct in-depth interviews with customers, industry associations, employees and Company executives from around the world, in addition to reviewing the sustainability priorities of our customers and peer companies and researching key topics affecting the industry. 2. EVALUATION Our evaluation process includes speaking directly with identified key stakeholders via an independent third party, assessing reports outlining the environmental, social and governance stakeholders for the industry and analyzing our business plans, strategies and key risk assessments. Industry peers and enterprise customers are also benchmarked as part of this analysis. 3. PRIORITIZATION While all the topics identified as part of this process are important, six of the most “material” issues were ranked as among the most critical to manage on a continuing basis and have served as the foundation for our Twenty by 30 program : ⹅ Energy & Carbon Footprint ⹅ Water Management & Scarcity ⹅ Waste Reduction & Management ⹅ Employee Health, Safety & Wellness ⹅ Product Quality & Safety ⹅ Business Ethics FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
16 INFLUENCE ON STAKEHOLDER ASSESSMENT AND DECISIONS SIGNIFICANCE OF CROWN’S ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS Priority High Priority To p Priority Communities Resources Water & Air Carbon Footprint & Energy Circularity & Waste Business Practices Products Customers Employees Sourcing FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
17 Top Priority Topics BUSINESS PRACTICES ⹅ Business ethics and good governance ⹅ Compliance with ESG rules, regulations and standards ⹅ Data and information security risk management PRODUCTS ⹅ Product quality, safety (including food safety) and stewardship ⹅ Cost reduction, including operational excellence, efficiency and lightweighting CUSTOMERS ⹅ Customer satisfaction ⹅ Compliance with environmental (chemical, waste, recycling) legislation applicable to customers and our industry ⹅ Support for the sustainability goals of our customers ⹅ Alignment with customers on sustainability/customer partnerships and dialogue CIRCULARITY & WASTE ⹅ Circular Product Lifecycle Management (e.g., % raw materials from a) recycled content, b) renewable resources, c) renewable and recycled content; revenue from products that are reusable, recyclable and/or compostable; reducing lifecycle impact) ⹅ Business model, product and process innovation ⹅ Improvement in the recycling rate and recycled content of metal packaging ⹅ Supplier, customer and consumer education on the recyclability of metal packaging ⹅ Waste reduction EMPLOYEES ⹅ Employee health, safety and wellness ⹅ Employee relations ⹅ Diversity & Inclusion ⹅ Professional and social engagement ⹅ Development needs ⹅ Career growth ⹅ Inclusive working climate CARBON FOOTPRINT & ENERGY ⹅ Carbon/greenhouse gas emissions ⹅ Total energy consumption ⹅ Energy and carbon intensity ⹅ Renewable energy High Priority Topics WATER & AIR ⹅ Water management and risks ⹅ Air emissions (VOCs, particulate matter (PM), NOx, etc.) reduction SOURCING ⹅ Supplier Code of Conduct adherence ⹅ Responsible supply chain management (e.g., resource traceability, identify and manage materials and chemicals, optimized logistics, percent of certified aluminum purchased) ⹅ Responsible sourcing assessment RESOURCES ⹅ Resource scarcity (managing and helping to preserve key inputs that may be under threat by environmental conditions, political instability, economic instability or other) ⹅ Locally sourced inputs Priority Topics COMMUNITIES ⹅ Community support to enhance well-being ⹅ Investment and engagement with local communities and non-profits ⹅ Community engagement by employees FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
18 Advancing Impact Through Partnerships We are focused on helping consumers understand that with the circularity of metal packaging, every recovered can is capable of being—and will be—transformed into another product. If consumers continue to recycle at increasing rates, the impact on resource preservation and reuse will be tremendous. We are working to make recycling as easy, accessible and practical as we can by collaborating with our suppliers, customers and other industry partners around opportunities to establish greater consumer accessibility and incentive for more effective recycling. A full list of our industry association memberships can be found on our website. To further accelerate our impact, we also support multiple global initiatives that are paving the way toward carbon neutrality. Initiatives we are proud to support include: 3 4 Corporate Governance Operating as a responsible organization hinges on a well-established system of governance principles and accountability structures. Ultimate responsibility for setting business policies for the Company is held by our Board of Directors , who are accountable to shareholders for the Company’s performance. In the best interest of the shareholders and other constituents, the Board selects and controls the compensation of the Chief Executive Officer, confirms that appropriate corporate procedures and controls are in place and approves the foundational policies that are intended to ensure ethical operations within the Company. The Board has established Corporate Governance Guidelines and charters for each of our three Committees (Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee). The guidelines and the charters are publicly available in the Corporate Governance section of our Company website . See the next page of this report for more detail about how our Committees get involved in our sustainability strategy. ALL LEVELS OF OUR COMPANY, FROM OUR POLICIES AND PROCEDURES TO OUR PROGRAMS AND VALUE CHAIN, ARE ROOTED IN SUSTAINABILITY. 3 Since 2022, Crown has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labor, the environment and anti-corruption. 4 CDP Climate Change 2022, CDP Water 2022. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
19 Sustainability Governance All levels of our Company, from our policies and procedures to our programs and value chain, are rooted in sustainability. A sustainability governance model has been established as a foundation for developing sustainability strategies and targets that touch each part of the Company. CHIEF EXECUTIVE OFFICER ⹅ Key participant in the decision-making process around Crown’s global sustainability strategy. ⹅ Reports directly to the Board of Directors. BOARD OF DIRECTORS The Nominating & Corporate Governance Committee ⹅ Reviews and assesses the Company’s ESG programs, policies and practices. ⹅ Makes recommendations to the Board to further the sustainable growth of the Company’s businesses. The Audit Committee ⹅ Reviews Crown’s detailed ESG disclosures, reports and audits. VICE PRESIDENT OF GLOBAL SUSTAINABILITY & REGULATORY AFFAIRS ⹅ Leads sustainability initiatives, including the environmental management program. ⹅ Drives accountability and performance in meeting Crown’s sustainability goals and identifies innovative ways to manage operational risks and opportunities related to climate change. ⹅ Reports directly to the Chief Operating Officer and regularly updates the Board of Directors and/or its Nominating and Corporate Governance Committee and Audit Committee. GLOBAL EXECUTIVE SUSTAINABILITY COMMITTEE ⹅ Makes strategic decisions related to ESG sustainability and guides daily activities to help the Company meet its goals. ⹅ Composed of Crown’s Chief Operating Officer; Vice President of Global Sustainability & Regulatory Affairs; Director of Sustainability and other executives from investor relations, technology development, procurement, human resources, EHS, risk management and legal. RISK MANAGEMENT TEAM ⹅ Elevates and appropriately assigns risks to be addressed and mitigated at an operational level by designated teams within the Company. ⹅ Where appropriate, elevates risks directly to the Chief Executive Officer, who determines whether further evaluation by the Board is necessary. ⹅ Includes local plant management champions for on-the- ground sustainability efforts, including in the communities in which we operate. 19 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
20 Precautionary Approach As one of the world’s largest and most comprehensive packaging companies, risk is inherent in our growing global operations. We follow a comprehensive approach to risk and strive to protect the assets of the Company and the investments of our shareholders, as well as to address the concerns of all our other stakeholders and ensure the continuity of our business. We recognize that managing risk must be a dynamic process that is integrated into day-to-day management practices and applies process rigor. Our business decision-making process is governed by a philosophy that requires a conscious awareness of the risks and opportunities that different scenarios may entail. We carefully evaluate our business environment to identify potential risks and take appropriate measures to eliminate or reduce their adverse impact while remaining committed to acting in a manner consistent with our strategic objectives. To achieve this, and in addition to the day-to-day risk management activities that occur globally throughout our organization, we have a global Enterprise Risk Management (ERM) program. Crown’s ERM program was formed in 2009 to provide a process for identifying, assessing and managing global risks. ERM program participants include representatives from multiple functions, including senior corporate executives, Business Units, corporate-level support functions, information technology, cybersecurity, regulatory and operations. This program ensures that the Company takes a holistic view of risk to identify any risks that would prevent the Company from achieving its strategic objectives. A comprehensive risk assessment process is performed to identify all potential risk factors affecting Crown. These risks are ranked and eventually classified into the following four categories: Strategic, Corporate, Financial and Operations. To allow us to fully understand our environmental, economic and social impacts, sustainability is a continuous consideration within our ERM process. 20 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
21 21 Fast-Tracking Progress Putting a plan in place is just the first step to advancing our sustainability performance. It is the actions we take that enable us to deliver against our commitments and move the needle around critical sustainability initiatives. With this in mind, we have challenged ourselves not to simply stay on track with our Twenty by 30 program, but to accelerate progress wherever possible. By prioritizing areas of focus in which we can create significant impact, we are able to push our organization into an industry-leading position that drives us closer to our targets every day. 4 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
22 Twent y by 30 Program Progress Report Our bold Twenty by 30 program includes 20 measurable sustainability goals to be completed by or before 2030. All goals are set against a 2019 baseline. GOALS SUSTAINABLE DEVELOPMENT GOALS 01. Reduce Scope 1 GHG emissions, targeting a 50% combined reduction in absolute Scope 1 (fuel) and Scope 2 (electricity) emissions. 02. Reduce Scope 2 GHG emissions, targeting a 50% combined reduction in absolute Scope 1 (fuel) and Scope 2 (electricity) emissions. 03. Reduce absolute GHG emissions from our supply chain (Scope 3) by 16%. 04. Source 75% renewable electricity by 2030 in accordance with our SBTi GHG goals and 100% by 2040. 05. Reduce Volatile Organic Compound (VOC) emissions by 10% per unit of product. Climate Action Recognizes climate change as the broadest environmental risk of this era and aims to minimize energy use and emissions. O U R P R O G R E S S (AS OF DECEMBER 31, 2021) Total Goal Progress: 22% 2019 2030 Goal 11 % absolute reduction in Scope 1 and Scope 2 GHG emissions. Total Goal Progress: 15% 2019 2030 Goal 1.5 % reduction in VOC emissions per unit of product. 2019 Total Goal Progress: 40% 2030 Goal 30% of our total electricity used in 2021 was consumed from renewable resources. Renewable electricity activated in 100% of beverage can plants in the U.S., Canada and the U.K. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
23 ACCELERATING IMPACT Zeroing in on Climate Our actions to decrease our emissions and improve our electricity consumption ladder up to our larger commitment to be carbon neutral by 2040. This work aligns with our commitments to global industry movements, including The Climate Pledge and RE100—groups calling for all industrial sectors to do their part to slow the pace of climate change. The path to Net-Zero continues to factor into our business decisions as we find ways to deliver high- quality products to customers in increasing volumes while remaining careful stewards of the environment. Relying on Renewables We are moving toward greater reliance on renewables by increasing our use of wind and solar power across our operations. We are well on our way to achieving our goal of 100% renewable electricity by 2040. In 2019, we began using 100% renewable electricity in the U.K. In 2020, we became the first metal packaging manufacturer to activate renewable electricity in 100% of its U.S. and Canadian beverage can plants. In 2021, we also took steps to increase the amount of renewable energy our Mexican beverage can operations utilized. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
24 GOALS SUSTAINABLE DEVELOPMENT GOALS 06. Reduce water usage in our operations by 20% by the end of 2025. 07. Maintain a 100% track record of meeting local wastewater standards. 08. Ensure all employees have continued access to safe water, sanitation and hygiene (WASH). 09. By 2030, be replenishing 100% of water consumed from high scarcity risk watersheds back to those watersheds. Resource Efficiency Prioritizes the preservation of water as the global supply becomes increasingly scarce. O U R P R O G R E S S (AS OF DECEMBER 31, 2021) Commitment made to our first water replenishment project. Effluent wastewater meters installed on 96% of aluminum beverage can lines globally. We aim to have meters installed on 100% of these lines by the end of 2022. Flowmeters installed on 100% of beverage line washers globally. 2019 Total Goal Progress: 18% 2025 Goal 3.6 % reduction in water usage. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
25 ACCELERATING IMPACT Commitment to Best Practices The Twenty by 30 Best Practices Program is designed to optimize our global efforts at the plant level and enhance operational efficiencies. We believe that sharing best practices throughout our organization allows us to continue to learn from each other and realize our Twenty by 30 goals. The program encourages leaders to motivate and collaborate with their operational teams to review and submit implemented plant processes’ best practices. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
26 GOALS SUSTAINABLE DEVELOPMENT GOALS 10. Send zero waste from our operations to landfill. 11. Reduce packaging material use by making our aluminum and steel cans 10% lighter in weight. 12. Support increased metal packaging recycling rates in our major markets in collaboration with industry associations and other partners. 13. Maintain or improve the industry-wide average of recycled content in metal cans and Transit Packaging products in collaboration with suppliers, industry associations and other partners. 14. Increase the recycled content of the plastic strapping we make by 10% globally. Optimum Circularity Strives to recycle and reuse valuable resources and minimize waste. O U R P R O G R E S S (AS OF DECEMBER 31, 2021) 5 Assessment does not include warehouse locations. We do not currently track waste data in these facilities but plan to in the future. 28% of our global locations (58 sites) are zero waste to landfill. 5 4 % global average reduction in our standard 12 oz. or 330 ml can weight. 2019 Total Goal Progress: 40% 2030 Goal Only 1% of total waste is sent to landfill. Launched new global recycling targets to drive the industry toward the highest achievable recycling rates, in addition to boosting our own recycled content averages and recycling rates. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
27 ACCELERATING IMPACT The Race to Recycle By increasing aluminum beverage can recycling rates worldwide, our industry can help preserve energy and resources, reduce emissions and decrease waste—all of which protect the atmosphere and combat climate change. To boost averages as quickly and successfully as possible, we have set new global recycling goals for the regions in which we operate: IN THE AMERICAS: ⹅ United States: Lifting the current 45% average to strive for ambitious milestones of 70% by 2030, 80% by 2040 and 90% by 2050. ⹅ Mexico: Maintaining >90% through 2030 and working with industry partners to establish country-wide recycling rates. ⹅ Brazil: Maintaining >97% through 2030. IN EUROPE, THE MIDDLE EAST & AFRICA (EMEA): Striving for 80% in the countries in which we operate by working with industry partners. IN ASIA PACIFIC: Establishing country-wide 2030 recycling rates in the three major markets in which we operate (Cambodia, Thailand and Vietnam) by the end of 2025. To meet our goals, we are placing attention and driving action around improved recycling access (both public and private), greater consumer education on the importance of recycling, more effective can capture systems at recycling centers and increased support around legislative recycling policies. 2030 RECYCLED CONTENT GOAL: 80% recycled content global average in aluminum beverage cans by 2030. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
28 ACCELERATING IMPACT Supporting Increased Recycling Rates We are helping consumers understand that with metal packaging, every can that is recovered is able to — and will be — transformed into another product. If consumers can support more successful steel and aluminum recovery, they can have a tremendous impact on resource preservation and reuse. That is a mission we know people want to get behind. We are working to make recycling as easy, accessible and practical as we can by collaborating with our suppliers, customers and other industry partners to further greater incentives for more effective recycling. In partnership with the Can Manufacturers Institute (CMI) and The Recycling Partnership, we helped fund five aluminum beverage can recycling grants for Material Recovery Facilities (MRFs) in the U.S. in 2021. These grants allow MRFs to more effectively separate used beverage cans (UBCs) from other recyclables and divert them from landfills. The result? An additional 71 million aluminum cans will be recycled annually, totaling over $1.15 million in revenue for the U.S. recycling system. We supported industry associations European Aluminium and Metal Packaging Europe (MPE) as they launched a joint roadmap toward achieving 100% aluminum beverage can recycling by 2030. The roadmap includes multiple steps: improving curbside and on-the-go waste collection systems for aluminum beverage cans, increasing efficiency in sorting infrastructure and addressing informal recycling effectively, recovering aluminum from bottom ash treatment and informing and engaging consumers effectively. Our relationship with Every Can Counts (ECC), whose mission is to achieve a 100% recycling rate for aluminum beverage cans across Europe, also remains active. The program recently expanded to Brazil with a campaign called Cada Lata Conta and is being led by Abralatas. Brazil, the world’s third-largest aluminum can market, has maintained an average beverage can recycling rate above 95% for over 15 years, avoiding the emission of 19 million metric tons of GHGs during that period and 1.8 million metric tons in 2020 alone. 28 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
29 ACCELERATING IMPACT Maximizing Recycled Content in Packaging Materials Our Transit Packaging Division is also taking steps to increase the recycled content of its products, including plastic strapping. Our Florence, Kentucky (U.S.) plant team members developed a Closed Loop Recycling Program that collects and recycles polyester beverage containers, polyester strapping and other recyclable materials. Customers can also contribute to the initiative by returning their used plastic strap to the plant, helping reduce waste and disposal costs. To date, the facility has reduced its dependency on new raw material consumption and produces strap containing up to 78.5% recycled content. Additionally, the facility more than doubled its use of internal regrind. Our stretch film facility in Virton, Belgium, has taken several actions to increase circularity and maximize the use of recycled content. These efforts include investing in a reclaim line and developing a stretch film that contains post-consumer recycled content in collaboration with several industry partners. In 2020, 100% of the plant’s internal waste was reprocessed and upcycled into usable material through its reclaim line. 29 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
30 GOALS SUSTAINABLE DEVELOPMENT GOALS 15. Reduce our Total Recordable Incident Rate (TRIR) by 20% by 2025. 16. Continuously encourage, inform and empower every employee to be an active participant in Crown’s Sustainability program, creating meaningful connections between their daily tasks, their personal lives and the impact they can make on the environment and society. 17. Evolve toward a more employee-centric organization where Diversity & Inclusion (D&I) awareness is embedded in the organizational culture, allowing our people to be authentic at work. Encourage our top management to be D&I role models as a source of inspiration for all. Working Together Invests in the health and well-being of employees and a more diverse workforce. Launched a global balanced safety scorecard across the global beverage business in 2021. Introduced quarterly internal newsletter to enhance employee communication around sustainability. The newsletter is translated into 19 languages. 2019 Total Goal Progress: 40% 2025 Goal reduced TRIR by 8% 8 % O U R P R O G R E S S (AS OF DECEMBER 31, 2021) FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
31 ACCELERATING IMPACT Responsible Sourcing We have made significant progress toward achieving our interim 2025 responsible and ethical sourcing goal and remain on target for our 2030 objectives. As part of our Responsible and Ethical Sourcing Policy, we are assessing our core raw materials and service suppliers for adherence to our Supplier Code of Conduct as well as identifying higher-risk suppliers requiring third-party audits. We review multiple areas of risk during the assessment process, including: ⹅ Identifying suppliers that are critical and fundamental to our ability to operate. ⹅ Understanding the regions where our raw materials are sourced and the impact that local regulations and/or law enforcement have on human rights, labor and the environment. ⹅ Determining whether suppliers have been assessed by independent third-party verification evaluations. ⹅ Weighing the impact of governance by multinational corporations. 31 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
32 GOALS SUSTAINABLE DEVELOPMENT GOALS 18. Decrease the lifecycle footprint of our products and processes through eco-design and manufacturing innovation. Crown commits to devoting at least 50% of its Research & Development technology developments toward minimizing the footprint of its products and manufacturing processes. 19. By 2022, all operations meet a new consolidated “One Crown Standard.” This new standard will unify existing standards of migration, toxicology and safety utilized in our various geographical locations. By 2025, Crown will have screened all food contact materials for the presence of Chemicals of Concern (COC) and will take action to eliminate them where deemed necessary. 20. By 2025, all suppliers determined as high risk are assessed by third-party verification assessments. By 2030, 100% of Crown’s core raw material and service suppliers, by spend, are assessed and comply with Crown Responsible and Ethical Sourcing Policies and requirements, with an interim target of achieving 75% by 2025. Never Compromise Focuses on upholding product safety, sourcing responsibly and ethically and minimizing product lifecycle footprint. O U R P R O G R E S S (AS OF DECEMBER 31, 2021) Over 60% of R&D efforts are focused on sustainability improvements. Manage 26 groups of chemicals and single substances of particular concern to ensure they are not used in the manufacture of any of our food contact materials. One Crown Standard implemented across all locations. 75% of our high-risk suppliers have been assessed by third-party verification assessments. We reached this milestone four years early. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
33 ACCELERATING IMPACT Chemicals of Concern We launched our Chemicals of Concern (COC) program in 2020 in response to concerns from the public, NGOs and government entities over the use of potentially hazardous chemicals and industrial products. The program aims to screen all our food contact materials for the use or presence of COC by 2025 and take action to eliminate their use whenever possible. Since no single authoritative list of COC exists, we have been developing our own list based on several publicly available materials and our evaluations. Initially, over 1,000 chemicals were identified. We are currently refining the list of chemicals to focus on those relevant to the food contact materials we use. Once the list is finalized, we will begin evaluating the composition of our food contact materials and determine where COC are used or present. Where they are used or present, we will collaborate with our suppliers to either substitute the COC in the material, obtain third-party expert confirmation of the safety of the COC in the finished article or eliminate the material. 33 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
34 LESS IS MORE Bangi, Malaysia Asia Pacific Division Our Bangi, Malaysia, beverage can plant received the Environmental Sustainability Award for minimizing the impact of our operations on air quality through reduced VOC emissions, leading to greater employee protection and ozone layer protection, as well as providing electricity and gas savings. COMMITMENT TO COMMUNITY Owatonna, Minnesota Crown Food Packaging North America After providing abundant support to residents of its local and greater Minnesota communities, our Owatonna food can plant received the Social Sustainability Award for engaging its community with activities, including employment opportunities, toy drives for children and job interview preparation for high school students. TAKING CARE AT CROWN Izmit, Turkey Crown Bevcan Europe & Middle East Our beverage can facility in Izmit, Turkey , was presented with the Sustainability Award for Safety for prioritizing a positive work environment and operational safety to better protect employees, implementing new training methods, topical discussions and improved awareness, reporting and corrective actions. THE 3 R’S Brazil Crown Brazil Crown Brazil received a special Divisional Environmental Award for creating and exercising more effective methods of reduction, reuse and recycling to reach zero waste to landfill at each of its local manufacturing facilities. Driving Progress from Within Our Chairman’s Sustainability Awards program celebrates the Company’s manufacturing facilities and operating divisions that have shown outstanding leadership and innovation so as to have made a substantial impact on our sustainability goals. The latest award cycle covers Fiscal Years 2019 and 2020 and highlights initiatives tied to environmental sustainability, safety, zero waste to landfill and community engagement. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
35 Achievements & Recognition Delivering against our commitments is an important principle of our organization, leading us to design and execute strategies that are aggressive but still feasible. Our Twenty by 30 sustainability program is built to strike this balance, allowing us to make meaningful progress around key areas of focus and prove our ability to meet specific goals. We are proud that our sustainability efforts have been validated and recognized by several well-respected, independent organizations. Highlights from the current reporting period include: LEADING THE WAY We were named to Investor’s Business Daily’s Best ESG Companies of 2021, joining a prestigious list of the top 100 businesses with exceptional ESG ratings. In addition to making the list for the first time and ranking at #24 overall, we also stood as the only packaging company among the top five organizations in the Industrials category. A’S ACROSS THE BOARD We achieved an “A-” ranking in the Climate Change 2021 report from CDP, a leading global environmental impact non-profit organization. With this grade, we outperformed the global average of a “B-” and our industry peer group, which averaged a “C.” Additionally, CDP also awarded us an “A” Supplier Engagement Rating (SER) following its annual climate change assessment, placing us in the top 8% of over 11,400 graded companies around the world. MINIMIZING ESG RISK In 2021, ESG ratings provider Sustainalytics ranked Crown in the top position for mitigating ESG risk within the metal and glass packaging sector for the second consecutive year. Sustainalytics also advanced Crown to the Negligible Risk category, a designation achieved by only 1% of the more than 12,000 global companies reviewed. RANKING AMONG THE BEST CORPORATE CITIZENS We have appeared on 3BL Media’s 100 Best Corporate Citizens List for two consecutive years— 2021 and 2022. Our efforts also landed us in the top 10 Materials industry companies included on the list. The 3BL Media ranking recognizes outstanding ESG transparency and performance among the 1,000 largest publicly-traded U.S. companies. AMONG THE WORLD’S TOP FEMALE- FRIENDLY COMPANIES In 2021, Crown was ranked in the top 100 companies included in Forbes’ inaugural “World’s Top Female- Friendly Companies” list. The list was compiled by surveying 85,000 women in 40 countries. Participants were asked to rate their employers on criteria including pay equity, parental leave, promotion of gender equality and representation at equity board levels. ADVANCING THE GREEN POWER MARKET For two consecutive years (2021 and 2022), our North American Beverage Packaging business unit ranked within the U.S. Environmental Protection Agency’s (EPA) Top 25 Green Power Partners from the Fortune 500 list. The EPA cites this annual alternative energy usage, which for our U.S. beverage operations equates to nearly 400 million kilowatt-hours (kWh), as a contributor to growing the voluntary green power market and reducing the negative impacts of air emissions, including those related to ozone, fine particles, acid rain and regional haze. The Company also ranked within the top half of EPA’s Top 100 Partners across the U.S. in 2022. COUNTRY-WIDE SUCCESS In late 2021, all six of our production facilities in Brazil met the requirements for responsible production, sourcing and stewardship of aluminum, fulfilling the Aluminium Stewardship Initiative (ASI) Performance Standard. In Q1 2022, Crown Brazil achieved the ASI Chain of Custody certification, which complements the ASI Performance Standard and reinforces our compliance around responsible sourcing policies, anti-corruption, human rights due diligence and conflict-affected and high-risk areas. CRITICAL ADVANCEMENT IN MEXICO Following the success of their Brazilian colleagues, our beverage can operations in Mexico also earned the ASI Performance Standard in Q1 2022. The Mexico team’s achievement also supports our customers in their own ethical and responsible sourcing goals. Additionally, our renewable electricity progress has expanded into Mexico, with plans to power most of our beverage can operations with renewable electricity before the end of the year. With this, we are on track to exceed 40% renewable electricity for our global beverage operations in 2022 after reaching milestones around solar and wind power usage. These efforts drive us toward our current targets of reaching 75% renewable electricity by 2030 and 100% by 2040. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
36 Critical Areas of Focus Employee Health, Safety & Wellness We see the impact our employees have on our business daily. Their dedication, passion, knowledge and skills are the driving force behind our ability to deliver innovative technologies to our customers and advance our sustainability performance. We remain committed to safeguarding their safety, health and well-being, whether they are inside or outside our facilities. STRIVING FOR A SAFER TOMORROW A well-trained workforce is a safer workforce. That is why workplace health and safety are requirements that get built into every process, procedure and system of the Company, as well as the attitudes and values of every employee—from top management down. We believe that a safe and healthy workplace is a business imperative. We aspire to zero work-related injuries. To help us achieve that goal, we continually review, evaluate and invest in improving our processes, procedures, technology and training programs. This includes making safety metrics more proactive by moving away from reliance on lagging indicators, such as Recordable Case Rates, in favor of leading indicators such as employee engagement in safety, near-miss investigations and hazard recognition. Our Total Safety Culture supports each employee and exceeds basic requirements to achieve safety excellence. We aim to help employees develop a keen sense of responsibility for observation, behavior and attitude, identifying ways of instilling safer work practices and fostering communication, so they feel encouraged to discuss safety issues with their peers. The result is safer decision-making, correction of unsafe behaviors and reduction of incidents, injuries and near-misses. Our approach to workplace health and safety includes multiple programs and procedures: ⹅ Our Environment, Health and Safety (EHS) organizations support every Crown location—including corporate offices, Research & Development facilities, Centers of Excellence and plants—in meeting or exceeding regulatory requirements and Company standards. Crown’s health and safety team members focus on safety training, increasing safety awareness, safety audits, healthcare and more. ⹅ Our SAFE (Safety Awareness For Employees) behavioral observation program has resulted in thousands of peer-to-peer safety observations every day. ⹅ Auditing each Crown site to identify and correct potential hazards and liabilities, helping to ensure continuous improvement. ⹅ Holding safety workshops for salaried and hourly employees at every Crown location. ⹅ Mandating a job hazard analysis at each site for every significant task, developing safe job procedures and reviewing every new process and purchase against a safety checklist. ⹅ Setting strict safety requirements for contractors and third- party vendors who work with Crown. ⹅ Implementing a program to monitor contractor safety. ⹅ Providing ergonomic training to reduce and eliminate musculoskeletal disorders. ⹅ Implementing an accident/injury investigation system, including near-misses, that examines root causes and identifies potential short- and long-term corrective actions. To demonstrate our commitment to our employees’ health and safety, we set a goal to reduce TRIR by 20% by 2025 as part of our Twenty by 30 sustainability program. TRIR 6 2019 2020 2021 0.98 0.90 0.90 2019 Total Goal Progress: 40% 2025 Goal 8 % reduced TRIR by 8% 6 Figures exclude data from Crown’s European tinplate operations, which were divested in August 2021, for the entire reporting period. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
37 HEAR FROM OUR TEAM: Global Commitment to Safety Employees at every level are responsible and accountable for our overall safety initiatives and performance. We continually monitor and improve workplace safety through employee education and engagement and the introduction of new programs. For example, the Americas Division is actively piloting a Serious Injury or Fatality Prevention (SIF) program at several U.S.-based beverage can facilities. We have conducted an in-depth review of our injuries and near-miss reports to assess the level of SIFp risks present in our operations. Once the program is finalized, SIFp activities will be incorporated into our existing safety observation process and provide another important tool to help protect our team. ” Mike Antry Crown Americas Vice President, Environment, Health & Safety We launched the Stop-Think-Act initiative as we realized most of our injuries were linked to unsafe behaviors. We wanted to change the way we were approaching every task in the workplace and reinvigorate our Health & Safety program toward zero injuries. Stop-Think-Act is three simple steps that have great potential to prevent avoidable injuries in the workplace. If everyone uses this approach before starting a new task, we will be one step closer to zero injuries. It is not about what we do but how we do it that matters most, and this new initiative will reward employees that are doing the most to make our workplace safer, day in and day out. I encourage everyone to use this long-term initiative and become a safety ambassador for their own safety and that of their colleagues. ” Florent Gourven Crown Bevcan Europe & Middle East Quality EHS and World-Class Performance Director While business priorities can and will change, at Crown, our commitment to safety as the first core value of our operations is unwavering. The Americas organization continues a remarkable journey in pursuit of safety excellence. Our mantra of “100% Safe Behavior, Everyone, Every Day” points the organization in the direction of true north. We relentlessly strive for continuous improvement in our Safety Management Systems, always ensuring that safety can be efficiently and effectively integrated with other organizational core values. To achieve and sustain safety excellence, the Americas Division applies a mosaic strategy that incorporates advanced learning and practice from the areas of EH&S Compliance, Human Factors, Human and Operational Performance and Behavioral Science. We are committed to supporting the creation of working environments where our employees can feel physically and psychologically safe as well as thrive professionally and personally. ” Ken Tutin Crown Americas Vice President of Business Support FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
38 HEAR FROM OUR TEAM: Global Commitment to Safety IT IS NOT ABOUT WHAT WE DO BUT HOW WE DO IT THAT MATTERS MOST Safety isn’t the job of a single individual—it is everyone’s responsibility and for the well-being of all. Like the rest of Crown, we take a holistic approach to safety in Asia Pacific that relies on a mix of training, employee engagement and best practices. In 2021, the Division achieved a 20% improvement in the number of reportable incidents. We are committed to continuing to educate our team and reinforce Crown’s Total Safety Culture. ” Roger Gan Crown Asia Pacific Regional EHS Manager Safety is both a value and strategy at Crown, regardless of location or language. Compliance with health and safety regulations provides an essential base from which we regularly go beyond to ensure a high level of safety across our entire organization. Our environmental, health and safety programs are designed to continually evaluate our working environment to identify and eliminate unsafe conditions and behaviors and to develop, share and live our best practices. We accomplish this through leadership, education, behavior and full employee engagement. The influence of our program on our Company’s culture is reflected in our words, actions and results. We all benefit when everyone involved with our organization is healthy and safe at work and at home and understands their impact on the fragile environment we all share. ” John Ciba Signode Transit Packaging Solutions Director Global EHS&S FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
39 Energy & Carbon Footprint Our primary product—metal packaging—embodies sustainability in its manufacture and its contributions to the Circular Economy. While effective management and conservation of resources have always been the bedrock of Crown’s operations, as our global footprint has grown and production volumes have increased, these principles have taken on new meaning. We know that operating unsustainably is detrimental to long-term success and impacts profitability and our reputation with our key stakeholders. As such, we rely on an environmental management system to help us manage compliance, reduce costs and increase efficiencies. OUR PERFORMANCE The charts on this page and the next page detail our progress in primary environmental metrics for the products that we manufacture. They include data from 2019 to 2021 to align with the current reporting period; the 2019 data also represents the baseline for our Twenty by 30 goals. For data prior to 2019, please review the archived sustainability reports on our Corporate website. MATERIALS USED 7, 8 All materials measured in Metric Tons YEAR ALUMINUM STEEL OTHER 2019 925,548 1,592,009 737,187 2020 971,381 1,521,417 678,548 2021 1,040,625 783,561 9 758,905 7 Data only reflects materials used to produce Crown’s primary products; it does not include materials to package our primary products. We do not currently track this usage of materials. 8 Figures based on materials procured. 9 Reflects the sale of European tinplate business, which included our Crown Food Europe Business Unit, as of August 31, 2021. CROWN’S 360 END ® Crown's 360 End ® combines both food and beverage end technology to design a drinking experience for the consumer with significant environmental advantages. With this design, the entire lid of the beverage can is removed, turning the metal can itself into a drinking cup and eliminating the need for single-use plastic cups. In addition, the can filling process and supply chain are identical to that of conventional beverage cans. One final advantage makes the new container ideally suited for the beer industry, as the 360 End ® improves the flavor of the beer by allowing the full aroma of the beer to hit the drinker’s senses when drinking directly from the can. ENERGY CONSUMPTION All energy measured in Megajoules YEAR FUELS ELECTRICITY 2019 9,840,125,490 8,449,870,854 2020 9,463,675,175 9,141,209,850 2021 10,477,558,854 8,168,810,324 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
40 SCOPE 1, SCOPE 2 & SCOPE 3 GHG EMISSIONS All GHG emissions are measured in Metric Tons (MT)of CO 2 e MARKET-BASED 2019 2020 2021 Scope 1 Emissions 511,858 490,013 545,488 Scope 2 Emissions 768,007 693,794 597,528 Scope 1+2 Emissions 1,279,865 1,183,807 1,143,016 Scope 3 Emissions 8,938,555 8,962,842 10,230,048 2021 OPERATIONAL EMISSIONS BREAKDOWN SCOPE 1: 48% SCOPE 2: 52% 2021 TOTAL MARKET-BASED EMISSIONS SCOPE 1: 5% SCOPE 2: 5% Crown set its first formal GHG emissions reduction goal in 2016, with a target of reducing emissions by 10% per billion standard units of production (base- lined against our 2015 performance), including Scope 1 and Scope 2 emissions by December 31, 2020. We surpassed the goal across our global operations ahead of schedule by making a range of improvements in our operations, equipment and energy efficiency. In 2019, we accelerated our commitment to transitioning to the low-carbon economy by committing to reduce absolute Scope 1 and Scope 2 GHG emissions by 50% by 2030, as well as decrease absolute Scope 3 GHG emissions by 16% over the same target period (using a 2019 baseline). These targets were officially validated by SBTi in 2020. Absolute Scope 1 and 2 market-based emissions in 2021 have decreased 4% from 2020 and 11% from 2019. Based on current progress, we fully expect to achieve, and exceed, our Scope 1 and 2 Science Based Targets. Scope 3 emissions have increased 13% from 2019 to 2021. We attribute this to several factors, including a 12% increase in Metric Tons of aluminum purchased during the reporting period to meet increased demand for beverage cans globally. SCOPE 3: 90% FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
41 ACCELERATING IMPACT Reducing Our Environmental Footprint While the nature of our manufacturing processes requires large amounts of energy, we remain committed to implementing innovative solutions to maximize our energy efficiency and reduce our GHG emissions. As part of this commitment, we have made significant investments to improve infrastructure and equipment and to adopt new practices that reduce energy use. Here are just a few examples. PATRAS, GREECE Identifying and repairing air leakages, optimizing the use of various production line motors and updating facility lighting all contributed to the facility’s annual energy savings of 1160 megawatt-hours (MWh), even while maintaining the same output of cans year over year. These improvements have helped the plant avoid the release of 360 tons of CO 2 per year. PONTA GROSSA, BRAZIL Upgrading to electric forklifts across the production floor reduced this plant’s CO 2 emissions from pallet transfer by 95%. A similar equipment switch was eventually made across all Brazilian plants and could lead to a total of 750 tons of CO 2 saved annually—a collective regional impact that promotes a more energy-conscious operation. MONTERREY, MEXICO Investing in multiple areas on the production floor enabled this team to cut its energy consumption and find new efficiencies. With new air conditioners, variable speed compressors, high-efficiency motors and new lighting, the facility lowered its annual CO 2 emission levels by over 120 tons, demonstrating the significant impact made possible through what seem like minor adjustments. 41 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
42 ACCELERATING IMPACT Water Replenishment We are placing increased importance on biodiversity, first by better understanding the nature of the localities in which our plants are situated, and then by assessing and mitigating any potential impacts our operations may be effectuating. To date, using the WRI Aqueduct global water risk mapping tool, we have validated the number of plants in our network in high water stress locations and reported that figure via our CDP Water Security 2022 submission. We have also identified our first water replenishment project: the São Paulo Water Fund, specifically the Jundiaí region of the Water Fund, in partnership with The Nature Conservancy. The project site is approximately 40 kilometers from our Cabreúva facility, and while the plant is outside the watershed, water to the facility is supplied from the watershed. Our participation will protect 100 hectares of forest in the Jundiaí Mirim and other important sub- watersheds in Jundiaí City for each year of the three-year project. When completed, we anticipate the project will replenish almost half of the water consumed by our Cabreúva plant and offset 1,310 metric tons of CO 2 equivalent per year. Water Management & Scarcity Few natural resources are as essential as fresh water. Yet, in many regions of the world, it is becoming an increasingly scarce resource in the face of growing demand, pollution and climate change. As a global corporation, we recognize our role in helping protect this invaluable resource. We have always been committed to responsible water use and to meeting our Company’s water demand without impacting the availability or quality of the resource to others. Water is a key input for our beverage can manufacturing process (forming, washing, rinsing and cooling), as well as for the manufacture of aluminum and the production of our customers’ products. This water is withdrawn from third parties, surfaces or wells and goes to a wastewater treatment system on-site prior to its discharge. Most of our locations discharge into third-party municipal wastewater treatment systems, while a few plants discharge directly into surface water areas in compliance with local regulations. At some of our plants, such as our operations in Mexico and Brazil, the quality of the water discharged is superior to the water withdrawn. Our primary mode of consumption is not in the production of the products, or in our production processes, but rather due to evaporation losses along the production steps. We identify water-related impacts by evaluating the specific data in each of our operations. Our assessment is then verified through an external third-party verification process, which includes our incoming and outgoing water as well as the sources and points of discharge. We also utilize the World Resources Institute’s (WRI) Aqueduct global water risk mapping tool and other systems to assess for water stress as part of our replenishment goal. Given the importance of water to our business, customers, suppliers and communities, the Resource Efficiency pillar of our Twenty by 30 program focuses on our water stewardship strategy. Our objective is to advance water stewardship in the places where we live and work and improve the long-term sustainability of shared water resources. Our approach includes: ⹅ Increasing efficiencies to reduce overall water use. ⹅ Identifying alternative water sources such as recycled and reclaimed water. ⹅ Discharging water responsibly to prevent pollution. ⹅ Reporting publicly on our performance and progress annually. Compliance with local and national laws and regulations is a priority for Crown’s manufacturing facilities. Most of our locations are subject to strict national and local regulations on effluent quality. To track performance and implement any necessary changes, all incidents related to wastewater exceedances are registered and investigated. All Crown plants and offices have readily available potable water that is unlimited and free of charge to employees. Sanitary facilities, including toilets and hand/face washing facilities, are also available across all our facilities. São Paulo Water Fund Photo courtesy of The Nature Conservancy FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
43 TOTAL WATER WITHDRAWAL FROM ALL AREAS, BY SOURCE 10 In Megaliters SOURCE 2019 2020 2021 Surface water 925.895 778.444 781.982 Groundwater 2,014.231 2,007.882 2,011.879 Seawater 0 0 0 Produced water 0 0 0 Third-party water 6,729.316 6,711.431 6,320.606 Rainwater 2.031 1.799 1.832 ACCELERATING IMPACT Reducing Water Usage Our plants around the world are helping us reduce water usage in our operations via multiple levers: ⹅ Measuring, monitoring and reporting water consumption company-wide ⹅ Identifying and eliminating losses and leaks ⹅ Installing flowmeters to measure and report water consumption and enhance water conservation ⹅ Increasing wastewater systems’ efficiency ⹅ Identifying and incentivizing water reuse opportunities ⹅ Identifying, benchmarking and replicating water use efficiency best practices ⹅ Piloting and replicating new and hybrid technologies toward Minimal to Zero Liquid Discharge Water efficiency is implemented locally in several ways, including proactive, regular maintenance, rainwater harvesting, replacing washer nozzles and installing new shutoff valves, adding new pumps for wastewater treatment and variable frequency drives in cooling towers to reduce energy and water usage and fixing leaks in pipes and washer tanks. From 2019-2021, we saved over 82 million gallons of water due to a combination of best management practices and capital expenditure projects in our facilities. For example, our Sisa, Mexico plant made several facility water improvements during the reporting period, including modifications to multiple pieces of equipment to recover process water and rainwater. These efforts enabled the Sisa plant to reduce process water usage from 0.98 to 0.68 m3/tons in one year alone. The facility is also active in ecological restoration, which it carries out annually on the land that has been exploited, to regenerate the conditions of flora and fauna through the planting of native plants. TOTAL WATER WITHDRAWAL FROM ALL AREAS WITH WATER STRESS, BY SOURCE 10 In Megaliters SOURCE 2019 2020 2021 Surface water 642.399 181.912 159.049 Groundwater 979.473 573.969 691.100 Seawater 0 0 0 Produced water 0 0 0 Third-party water 1,116.596 1,775.743 1,802.407 Rainwater 2.031 1.799 1.832 TOTAL WATER WITHDRAWAL BY SOURCE 10 In Megaliters SOURCE 2019 2020 2021 Freshwater ( ≤ 1,000 mg/L Total Dissolved Solids) 9,561.016 11 9,391.592 11 9,016.121 11 Other water ( ≥ 1,000 mg/L Total Dissolved Solids) 110.458 12 107.963 12 100.179 12 Crown has an invoice collection program and uses a database platform for the management of utilities and other resources the Company uses. Our plants can manually enter their usage, or it may be invoiced or be provided through meter readings. 10 Figures from 2019 and 2020 include data from our European tinplate business. Figures from 2021 exclude data from this business to reflect its sale as of August 31, 2021. 11 All plants, excluding Ensenada, Mexico. 12 Ensenada, Mexico groundwater. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
44 Waste Reduction & Management As a global manufacturer, we have an important role to play in reducing our operational waste and supporting the Circular Economy. For decades, our sites around the world have practiced effective waste management, focusing on reducing, reusing and recycling as much waste as possible. When those steps are not possible, we apply controls and treatment technologies to prevent human health effects and minimize the environmental impacts of disposal. Every Crown facility around the world tracks and reports the amount of operational waste it generates and how it is managed. Since requirements for disposal vary from country to country, waste reporting is done at the local business level, and documentation is supplied by the waste contractor or the facility itself. Due to these global differences, we continue to work with our waste management suppliers to improve the collection of data against waste categories in a reliable and consistent way. In our metal packaging facilities, steel and aluminum represent about 85% of our incoming materials. Significant effort is made to capture, recover and recycle nearly 100% of our metal waste globally. To process the remainder of our waste, which includes items such as pallets, shrink wrap and cores from our metal coils, we take every step possible to divert it from landfills by reusing, recycling or generating energy. Effective waste management is an important component of our goals for world-class manufacturing and sustainability. That is why one of the goals in the Optimum Circularity pillar of our Twenty by 30 program is to send zero waste from our operations to landfill. That goal is based on several key strategies, including: ⹅ Improving processes, equipment and materials to reduce waste generation. ⹅ Continuing to send less waste to landfill globally by maximizing the use of environmentally beneficial disposal methods like recycling, composting and waste-to-energy. ⹅ Collaborating with suppliers to reduce waste across the value chain. WASTE GENERATED 13, 14 All waste is measured in Metric Tons (MT) HAZARDOUS/ NON-HAZARDOUS GENERATED WASTE (MT) PERCENTAGE OF TOTAL WASTE (%) 2019 Non-hazardous waste 3,285,349 99.8 Hazardous waste 5,486 0.2 2019 Total 3,290,835 100 2020 Non-hazardous waste 2,571,036 97.9 Hazardous waste 54,442 2.1 2020 Total 2,625,478 100 2021 Non-hazardous waste 2,870,271 97.9 Hazardous waste 62,923 2.1 2021 Total 2,933,194 100 13 Data shows waste generated in our operations over the last three years, measured in Metric Tons. 14 Data has been compiled using waste transfer notes from contracted waste collectors. Estimations and extrapolations have been used where necessary. 2020 and 2021 hazardous waste figures reflect improved data collection methods. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
45 WASTE DISPOSAL 15, 16 All waste is measured in Metric Tons (MT) ALL WASTE AMOUNT (MT) PERCENTAGE OF TOTAL (%) 2019 Total diverted 3,248,600 98.7 Compost 166 Converted to energy 10,868 Recycled 1,005,833 Scrap and recycled metal 2,231,733 Total disposed 42,235 1.3 Incineration 3,010 Landfill 39,225 Total waste 3,290,835 100 2020 Total diverted 2,399,949 91.4 Compost 1,046 Converted to energy 5,087 Recycled 474,866 Scrap and recycled metal 1,918,950 Total disposed 225,529 8.6 Incineration 75,364 Landfill 150,165 Total waste 2,625,478 100 15 Data has been compiled using waste transfer notes from contracted waste collectors. Estimations and extrapolations have been used where necessary. 16 Approximately 100% of our waste disposal is off-site; less than 1% of our waste is disposed of on-site. ACCELERATING IMPACT Moving Toward Zero Waste In Brazil, our team works to divert its non-metal waste (i.e., pallets, shrink wrap and metal coil cores) from landfills through recycling, co-processing, composting and refining. As of November 2020, 100% of Crown’s beverage can plants in Brazil are zero waste to landfill. This achievement makes it the first Division in our global network to reach this milestone. Our beverage can operations in Izmit and Osmaniye, Turkey, received a Zero Waste certificate awarded by the Turkish government. The award is part of Turkey’s Zero Waste Policy, an action plan initiated in 2017 with the primary goal of collecting and separating all waste and increasing recycling rates, both in industrial and consumer environments across the country. The plants implemented measures such as reducing hazardous waste by 80%, reducing chemical usage by 60%, reducing greenhouse gas emission rates through energy-saving activities and reducing waste deposited in landfills by 95%. Employees have become dedicated to the sustainability journey and are proud to be making an impact on the community around them. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
46 46 WASTE DISPOSAL 15, 16 All waste is measured in Metric Tons (MT) ALL WASTE AMOUNT (MT) PERCENTAGE OF TOTAL (%) 2021 Total diverted 2,786,943 95 Compost 1,713 Converted to energy 6,021 Recycled 234,646 Scrap and recycled metal 2,544,563 Total disposed 146,251 5 Incineration 10,643 Landfill 135,608 Total waste 2,933,194 100 15 Data has been compiled using waste transfer notes from contracted waste collectors. Estimations and extrapolations have been used where necessary. 16 Approximately 100% of our waste disposal is off-site; less than 1% of our waste is disposed of on-site. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
47 Business Ethics Our culture is rooted in a strong foundation of integrity and sound governance, and our Twenty by 30 program reflects this commitment. We know that operating successfully can only be done when we have the trust of our stakeholders. This includes our associates, customers, suppliers, shareholders, partners, the governmental and non-governmental organizations we work with and the communities where we live and conduct business. We earn that trust by doing what is right and ethical. We comply with applicable legal, regulatory and industry code requirements and uphold the highest principles of integrity and standards in every aspect of our business and every market in which we operate. That mindset is ingrained into our business culture and is monitored, enforced and improved through our globally deployed Code of Business Conduct and Ethics. Available in nearly 20 languages, the Code outlines the high level of ethical behavior expected from our directors, officers and employees. Our Code of Business Conduct and Ethics is supplemented with standalone policies for certain issues covered by the Code, such as Antitrust Law Compliance, Anti-Corruption Law Compliance, Trade Sanctions Law Compliance, Related Party Transactions and Environment, Health and Safety Compliance. Acting with integrity extends to our suppliers. We direct supplier compliance through our Supplier Code of Conduct which is informed by the Crown Code and other important public principles, such as the United Nations Global Compact. It is designed to align the ethical objectives and conduct of all of Crown’s suppliers, all over the world, with the standards that Crown applies to its own personnel. We expect each supplier to comply with the code’s principles, or comparable provisions of its own code of conduct, in all its dealings with us. ETHICS MANAGEMENT Our Code of Business Conduct and Ethics is reviewed regularly by our Board of Directors, management and outside counsel to consider evolving issues and best practices. Final decisions on changes to the Code must be approved by the Board of Directors. In addition, each year, qualified management personnel are required to participate in Crown’s Code of Business Conduct and Ethics training, which includes certification of the employee’s compliance with the Company’s standards of business conduct and disclosure of any known potential violations of such standards. Our proactive compliance training program includes live and online Code training in numerous contexts for employees of all levels. Approximately 8,200 employees, or over 31% of our workforce, including all our senior executives and middle management, received online Code training in 2021. In furtherance of our commitment to operating in accordance with the highest ethical standards, we offer several ways for employees and other stakeholders to report concerns about suspected unethical behavior safely, promptly and confidentially: ⹅ Speak directly to their supervisor or plant manager (or equivalent). ⹅ Contact their HR Manager, the Legal Department or their Regional Compliance Officer for the relevant policy. ⹅ Call Crown’s Business Ethics Line using the 24/7 toll-free reporting hotline (877-222-3029). We handle all inquiries promptly and investigate to the fullest extent necessary. Violations of the Code of Business Conduct and Ethics by employees are subject to disciplinary action up to and including termination of employment. Any employee who reports a violation will be treated with dignity and respect and will not be subjected to any form of discipline or retaliation for reports made in good faith. Senior management regularly reports to the Audit Committee of the Board of Directors on the status of open Code matters. ANTI-CORRUPTION POLICIES No Crown employee, officer, director or independent third party acting on behalf of the Company may pay, offer or promise to pay, or authorize payment to any party, public or private, in any country, in order to secure an improper benefit for the Company, to cause the party to act contrary to their duties or, in the case of a government official, to influence that FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
48 government official to obtain or retain business or an advantage in the conduct of business. Nor may they accept or solicit such payments or advantages. “Payment” includes making bribes or kickbacks, as well as conferring anything of value or any advantage, whether tangible or intangible (e.g., gifts, entertainment, travel expenses, charitable donations, political contributions, hiring an individual or relative). Through various ongoing Company programs, including Crown’s Code of Business Conduct and Ethics, 100% of our operations are analyzed for risks related to corruption. Crown’s Code of Business Conduct and Ethics applies to every employee, officer and director of Crown Holdings, Inc. and its subsidiaries. Using our annual ethics training, as well as other Company programs that underpin the Code, such as our Supplier Code of Conduct, the Company aims to mitigate corruption risk on topics such as conflicts of interest, money laundering, gifts and hospitality, charitable contributions and third-party relationships and interactions. MANAGING CYBERSECURITY RISKS As technology advances, we are aware there are associated risks. Crown is dedicated to keeping our employees and their data safe. Governance & Oversight Crown created the position of Chief Information Security Officer (CISO) in 2021 as a proactive measure in information security, privacy and data protection. This subject is critical to the safety of our employees and to the success of the Company. This Corporate Officer position has oversight of policies and processes to assure the security and integrity of our systems, data and networks and is responsible for communicating with Crown’s Board of Directors. Briefing the Board and reporting on information security matters are among primary responsibilities. Our CISO works closely with the Risk Management team, including decision-making related to the Company’s information security risk insurance policy protections. The Company’s Information Security Policies and Systems are annually audited by regulations set by Sarbanes-Oxley. External vulnerability assessments are also conducted. Global Information Security Awareness Campaign By 2021, the highest level of management, along with over 300 Crown global employees, participated in security awareness training. Crown is leveraging new and existing security awareness training platforms in 2022. Our goal is to ensure we are providing our employees at all levels with an immersive cyber-savvy experience. This will include in-person/virtual and online training methods. The cyber education and awareness we will be providing employees will help us improve and assess our “cyber smarts” and readiness. Employees can take this knowledge and apply it at work and at home. Our first step in this journey is a Cyber Security assessment of our employees’ awareness and knowledge of cyber security. Results from this assessment are underway and will aid us in establishing a baseline to guide future security training initiatives. ANY EMPLOYEE WHO REPORTS A VIOLATION WILL BE TREATED WITH DIGNITY AND RESPECT AND WILL NOT BE SUBJECTED TO ANY FORM OF DISCIPLINE OR RETALIATION FOR REPORTS MADE IN GOOD FAITH. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
49 49 Focusing on Our Core As we advance in our sustainability strategy and work to address the urgent issues impacting our world today, we acknowledge the significant ways metal can serve as a catalyst for change. 5 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
50 The ways that we choose, create and use packaging can have a tremendous impact on the issues affecting the Earth’s resources, environments and communities. Here are just a few of the ways metal is answering the call to address several critical issues of our time: 17 https://stopwastingfoodmovement.org/food-waste/food-waste-facts/ 18 https://www.forbes.com/sites/quora/2018/07/18/what-environmental-problems-does-wasting-food- cause/?sh=5220fba02f7a 19 https://www.unep.org/regions/north-america/regional-initiatives/promoting-sustainable- lifestyles#:~:text=Globally%2C%20if%20food%20waste%20could,3.3%20billion%20tons%20of%20CO2. Food Waste Emphasizing current global concerns around unnecessary product loss and the accompanying drain on resources. SUSTAINABILITY ISSUE METAL PACKAGING SOLUTION Each year, roughly one-third of the food produced globally— approximately 1.3 billion metric tons—is lost or wasted. 17 Food waste ends up wasting a quarter of our water supply in the form of uneaten food. That’s equal to U.S. $172 billion in wasted water. 18 If food waste was considered a country, it would be the third-largest emitter of greenhouse gases worldwide, after only China and the U.S. 19 Metal packaging serves as an unbeatable barrier to the intrusion of oxygen, light and bacteria, extending the shelf life of products and preventing premature spoilage. Optimized sizes, whether fit for family dinner recipes or for individual portions, help to reduce food waste by consumers. Time spent between harvesting, transporting and canning is generally less than three hours, preserving nutrient levels and decreasing product loss at processing. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
51 20 https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/national-overview-facts-and- figures-materials#NationalPicture 21 https://www.byui.edu/university-operations/facilities-management/recycling-and-sustainability/recycling- statistics 22 https://www.cancentral.com/can-stats/history-of-the-can/renewable-can-0 23 https://www.metalpackagingeurope.org/sustainability 24 https://www.cancentral.com/media/news/cans-are-most-recycled-drinks-package-world Recycling & Resource Preservation Prioritizing responsible use of limited resources and materials and the benefits of a circular product lifecycle. SUSTAINABILITY ISSUE METAL PACKAGING SOLUTION Of the 292.4 million tons of waste discarded in 2018, only 32.1% was recycled or composted. 20 About one-third of an average landfill is made up of packaging materials. 21 Metal can be recycled infinitely in a closed material-to-material loop. In fact, it is possible for recycled beverage cans to return to store shelves as new beverage cans in as little as 60 days. 22 80% of all metals produced are still available today. 23 Recycling metal minimizes the level of raw materials required to be sourced from the Earth. Consumers recycle aluminum cans at a global average of 69%. 24 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
52 25 https://www.cancentral.com/foodcans/nutritious 26 https://www.cdc.gov/foodsafety/cdc-and-food-safety.html 27 https://www.cancentral.com/foodcans/nutritious Food Accessibility & Safety Underscoring the importance of a stable and nutritious food supply to communities around the globe. SUSTAINABILITY ISSUE METAL PACKAGING SOLUTION Over half of the adults in the U.S. have a diet-related chronic disease from growing nutritional deficiencies. 25 Foodborne illness reportedly costs Americans $15.6 billion annually. 26 Cans make the important food groups of fruit and vegetables more accessible. For example, in the U.S., consumers who consume canned foods have more fruit and vegetables in their diets than the average American. 27 Metal packaging has an unprecedented food safety record due to the high temperatures of retort cooking, which effectively sterilizes the food in cans. Tamper- proof and tamper-resistant features indicate when a package has been compromised and help consumers feel confident about the quality and safety of their food products. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
53 Energy Consumption & Emissions Spotlighting the pressing crisis around climate change and the need to minimize damaging greenhouse gas emissions. SUSTAINABILITY ISSUE METAL PACKAGING SOLUTION In 2019, the world consumed more than 173,000 terawatt-hours (TWh) of energy. 28 Global energy demand is set to increase by 4.6% in 2021. 29 Global energy-related CO 2 emissions are heading for their second-largest annual increase ever. 29 Aluminum cans save >90% of their production energy when made with recycled materials, as opposed to virgin materials, minimizing their emissions levels. The inherent stackability of metal cans allows more product per truckload, meaning fewer emissions are emitted as products make their way to consumers. 28 https://ourworldindata.org/energy-production-consumption 29 https://iea.blob.core.windows.net/assets/d0031107-401d-4a2f-a48b-9eed19457335/ GlobalEnergyReview2021.pdf FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
54 Problem-Solving with the Right Substrate With such natural benefits available to metal, it is clear where manufacturers and consumers can leverage the material to work toward specific sustainability goals. When compared to other beverage packaging formats like PET, the substrate stands strong in its potential for resource savings, environmental mindfulness and community support. The proof is in the numbers: RATE TYPE ALUMINUM BEVERAGE CANS (%) G L A S S BOTTLES (%) PET BOTTLES (%) CARTON BEVERAGE PACKAGING (%) Closed-loop circularity rate (U.S.) 30 92.6 31 30–60 31 26.8 31 Unknown Consumer recycling rate (U.S./EU) 45.2 31 /75.8 32 39.6 31 /78 33 20.3 31 / 50 34 –61 35 18 36 /51 37 Average recycled content rate (U.S./EU) 73 31 /55 38 23 31 /52 39 3–10 31 /17 40 Unknown 30 European data unavailable as similar study not available for Europe. 31 https://www.aluminum.org/sites/default/files/2021-11/2021_KPI_Report_1.pdf 32 https://www.metalpackagingeurope.org/article/aluminium-beverage-can-recycling-remains-high-76-2019 33 https://feve.org/glass_recycling_stats_2019/ 34 https://zerowasteeurope.eu/wp-content/uploads/2022/02/HCIP_V13_summary-1.pdf 35 https://www.petcore-europe.org/news-events/409-pet-market-in-europe-state-of-play-2022.html 36 https://www.recyclecartons.com/ 37 https://www.beveragecarton.eu/wp-content/uploads/2021/10/ACE-Recycling_BROCHURE_September-2021.pdf 38 https://eplca.jrc.ec.europa.eu/LCDN/developerEF.xhtml 39 https://feve.org/wp-content/uploads/2021/10/FEVEFERVER-Joint-Paper-On-Recycled-Content-October-2021.pdf 40 https://zerowasteeurope.eu/press-release/new-report-pet-the-most-circular-of-all-plastics-is-far-from-real-circularity/ 54 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
55 55 Our People & Communities The knowledge and commitment of our global workforce are the backbone of our sustainability and business success. We value the contributions made by each employee and remain focused on providing them with safe, engaging work environments and access to high-value development opportunities to help them reach their highest potential. As an employer, we are dedicated to living up to our corporate values and creating an atmosphere that is based on trust and respect for diversity and equality of opportunity. This mindset is embedded in our recruitment practices as we believe that different points of view and perspectives generate powerful new ideas and foster good decision-making. 6 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
56 Employee Data As of December 31, 2021, Crown employed approximately 26,000 associates around the world. Roughly 46% of our workforce is employed in our Americas operations, 24% across our European Division and the remaining 30% in the Asia Pacific region. CROWN AMERICAS EMPLOYMENT TYPE & CONTRACT 2021 2020 2019 Gender Identity Male/Female Male/Female Male/Female Permanent employees—full time 8,874/1,875 8,437/1,721 8,637/1,776 Permanent employees—part time 6/3 7/3 7/4 Temporary/fixed-term employees—full time 405/168 392/152 362/119 Temporary/fixed-term employees—part time 19/1 15/3 16/3 Agency staff working in Crown facilities—full time 426/115 451/125 381/101 Agency staff working in Crown facilities—part time 0/0 0/0 0/0 Unionized employees 5,846 5,298 5,252 Division Totals 11,892 11,306 11,406 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
57 Employee Data CROWN EUROPE EMPLOYMENT TYPE & CONTRACT 2021 41 2020 2019 Gender Identity Male/Female Male/Female Male/Female Permanent employees—full time 4,717 /900 10,009 /1,991 9,762 /1,955 Permanent employees—part time 70/41 131 /274 211 /180 Temporary/fixed-term employees—full time 420 /79 915 /252 898 /248 Temporary/fixed-term employees—part time 1/5 95/54 81 /63 Agency staff working in Crown facilities—full time 256 /35 466 /139 450 /134 Agency staff working in Crown facilities—part time 0/2 14/5 14/4 Unionized employees 3,815 10,322 10,351 Division Totals 6,526 14,345 14,000 41 Reflects the sale of the European tinplate business as of August 31, 2021. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
58 Employee Data CROWN ASIA PACIFIC EMPLOYMENT TYPE & CONTRACT 2021 2020 2019 Gender Identity Male/Female Male/Female Male/Female Permanent employees—full time 4,828 /1,390 4,751 /1,375 4,764 /1,378 Permanent employees—part time 1/1 2/2 3/3 Temporary/fixed-term employees—full time 687 /259 729 /261 757 /280 Temporary/fixed-term employees—part time 2/11 2/13 2/9 Agency staff working in Crown facilities—full time 163 /347 143 /333 132 /308 Agency staff working in Crown facilities—part time 0/2 0/2 0/2 Unionized employees 2,546 2,504 2,524 Division Totals 7,691 7,613 7,637 CROWN GLOBAL EMPLOYEES Global Totals 26,109 33,264 33,043 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
59 Diversity & Inclusion Successful business performance requires creativity, problem- solving, proactivity, accountability and autonomy. Diverse perspectives are critical to this balance. Research has also shown that diverse organizations outperform those that do not invest in diversity and that employees consider societal impact as the number one indicator of success for their organization. We prioritize creating a working environment in which all employees feel welcome and heard and can perform their best work. To make progress against our goals, we have identified four key objectives to advance D&I across our Company: ⹅ Creating awareness for D&I and creating best practices ⹅ Becoming the employer of choice ⹅ Ensuring D&I remains a highly visible part of our overall corporate strategy ⹅ Building positive workplaces where D&I is “business as usual” We are taking several actions to achieve these aspirations, including: ⹅ Deploying new D&I workshops and training addressing unconscious bias, the gender gap and other topics ⹅ Recognizing D&I best practices that are implemented in our facilities ⹅ Updating our recruitment and onboarding processes, including developing regional approaches to attract and develop talents among minorities and women ⹅ Reviewing all current policies, practices and procedures to identify gaps and issue new guidance as needed ⹅ Promoting a positive work environment, free from harassment and bullying in all our locations ⹅ Establishing D&I Committees in each of the Company’s Divisions 59 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
60 HEAR FROM OUR TEAM: Gender Diversity at Crown At Crown, we strive to create an environment where every individual within the Company can fulfill their full potential. We are committed to providing flexibility and support and creating opportunities for everyone, especially women across the world. Visit our corporate website to view our video series highlighting the inspirational stories of women working at Crown. Here are just a few of the thoughts you will hear from our talented associates. Manufacturing is not a boy’s club at Crown ... I am proof. ” Judy Macnak Signode Industrial Group Operations Manager I get to do really exciting work. If I have an idea, it is embraced. People want to hear what I have to say and see the results of the work I am doing. ” Carol Winning Crown Packaging Europe PLC and Data Automation Engineer at Corporate Technologies Crown gives opportunities to people, whether they are a man or a woman, based on their qualifications and their experience, which is what it should be based on. It shouldn’t matter if you’re a man or a woman—you should be capable of doing the job, and I do believe Crown offers opportunities to people that have proven experience and qualifications. ” Dee Pucket Signode Americas Operations Director At Crown, women have the opportunity to succeed in scientific positions. In the Asia Pacific region, about 50% of the R&D employees are women. ” Sinenat Kaewklam Crown Asia Pacific Senior Manager R&D—2PC From the very first day, I have felt valued, appreciated and respected as a woman. ” Dolores Bredmeyer Crown Americas Plant Manager I have had bosses that challenged me, that gave me responsibility, that gave me projects to work on, that expected me to contribute. That gave me a lot of confidence and helped me believe in myself. ” Caroline Archer Crown Bevcan Europe, Middle East & Africa Vice President and Global Account Director Quick Facts: Diversity at Crown EXECUTIVE POPULATION: of new recruits in 2021 were female of new generation employees (less than 29 years old) are female of our executives are female 24 % 32 % 37 % of our global population have 10+ years of seniority, cultivating a sense of belonging 35 % of our global population of women is composed of the “young generation” (less than 29 years old) 17 % FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
61 HEAR FROM OUR TEAM: D&I Training Makes an Impact Through our D&I training, I learned that it is important for me as a leader to foster an environment of inclusion with my team. I can make an impact by speaking last and giving everyone an opportunity to engage and voice their opinions. Because we all have diverse experiences and backgrounds, we can get to the best outcome by working together. ” Corey Darula Crown Americas Plant Manager As a woman in a large Company, I want to see that D&I is taken seriously. The training helped me understand what D&I really means, particularly that it goes beyond gender and race. Today, I feel I am not just working for a large company but for a great company that I am proud of. ” Katia Enfedaque Signode Industrial Group Sales Operations Manager, Europe, Middle East & Africa Our D&I awareness training offered an important opportunity to share experiences and best practices with other leaders and equalize information and attitudes among all to help create an even more inclusive Company. At Signode Brazil, we aim to select the best professionals for our teams, and the training allowed us to enhance our hiring and promotion processes. It has also helped improve our internal conversations and relationships. ” Marcio Cordoso Signode Brazil Plant Manager Inclusion is the idea that all identities matter and that they should be embraced as an asset within an organization. Having these diverse identities and inclusive environments allows the organization to see the benefit of different perspectives. ” Paulina Stawarz Crown Americas HR Coordinator FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
62 Developing Our Employees We believe that lifelong learning is critical to a successful career. We see it as our responsibility to offer our employees a broad range of educational opportunities. Our training offering includes a mix of mandatory and voluntary training programs that occur in classrooms, online, on the job or in partnership with academic institutions. Examples include: ⹅ E-learning courses on a range of topics, including Leadership, Communication, D&I, Digital Transformation, Project Management, Supply Chain and Sales & Marketing. ⹅ Lean Manufacturing training and Six Sigma certification. ⹅ Tailored management programs proposed at different stages of our employees’ careers. ⹅ Specific management and leadership skills journey for our potential executives. ⹅ Supervisory training for Operations Supervisors and Managers. ⹅ Financial understanding training for non-financial employees. ⹅ Comprehensive “Train the Trainer” program to accelerate learning techniques. ⹅ Tuition reimbursement for employees pursuing degree-related programs. ⹅ Compliance training on topics including anti-bribery, Employee Code of Conduct and non-harassment. We also recognize that some of the best learning experiences come from challenging job tasks and through participation in multifunctional teams. That is why, for example, our management training involves a variety of assignments, including customized functional training, international exposure and core Division-wide activity to develop common approaches and values. To help attract and retain a high level of talent at Crown and provide each employee with ample opportunities to grow and prosper, we provide a mix of mandatory and voluntary training. In 2021, approximately 55% of our global employees received some level of company-sponsored training. Each employee averaged about 34 hours of training in 2021. 62 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
63 HEAR FROM OUR TEAM: Preparing Future Leaders Building the Workforce of Tomorrow Today’s young professionals have many exciting careers from which to choose. Our goal is to help stimulate and foster an interest in technical fields and show how fulfilling a career in the manufacturing industry can be. We have taken a proactive approach to filling our future operational leadership positions with our FORWARD program. Now in its fifth cycle, the initiative is designed to accelerate the careers of highly skilled graduates with two to five years of experience in engineering or commercial roles in the manufacturing industry and represents a unique and exciting opportunity for growth. Successful candidates will be offered a permanent role within the business with a faster pathway for progression. There are many roles to experience within the Company, and the FORWARD engineers and commercial professionals can expect to gain valuable experience across a wide range of disciplines over a three-year rotation period. Participants are also able to work in three different locations within our global operations. I have greatly enjoyed my time in the FORWARD program so far. While I came into the program with several years of experience in quality and project management, I have advanced my skills significantly while here. In my rotations, I have learned about the business as well as acquired new technical knowledge. One of the most exciting opportunities I have had involved building a new production line in Spain. I got to see everything that happens before the line even starts working! I have also been able to grow as a person, thanks to the international exposure the program provides. I am confident that the experiences I am gaining here will prepare me for anything, and I am excited about building a career in the fast-paced metal packaging industry and with Crown. ” Hanane Benaddi Crown Bevcan Europe, Middle East & Africa FORWARD Engineer Manufacturing and operations have always been interests of mine, but prior to joining this program, I knew nothing about the can-making industry. It has been fascinating to learn about the process—the volume of cans produced in such a short amount of time is simply astonishing, and there is so much science and engineering that goes into producing what looks like a simple package. I have been exposed to so many aspects of the business, including production planning, designing the layout for a new plant, working with suppliers and budgeting. The international exposure has been invaluable and enabled me to build a vast amount of knowledge, and connected me with a wide network of people across the Company. I feel fortunate to have had this experience and look forward to a rewarding future with Crown. ” Ludovico Sarperi Crown Bevcan Europe, Middle East & Africa FORWARD Engineer FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
64 Sustaining Our Communities We have a long-standing philosophy of prioritizing active engagement in the communities in which our employees work and live. Most of our operations are in small towns and we believe it is our responsibility to support these communities. Our approach includes seeking new ways to leverage the power of partnership to drive positive impacts. Here are just a few examples of our commitment in action around the world: SUPPORTING RECYCLING Our Conroe, Texas (U.S.), team is dedicated to advancing recycling in their community. By sponsoring the Montgomery County Fair & Rodeo and working to capture more than 16,000 used beverage cans consumed during the 10-day event, they supported the Circular Economy and helped educate consumers. CMI’s impact calculator reveals that the total amount of recycled cans at this event helped avoid the release of over 1.5 million grams of CO 2 e, contributing toward combating climate change. Beyond reducing emission levels, saving valuable materials from landfill and promoting higher recycling rates, the Conroe team also donated 100 cases of purified water packaged in Crown cans to event attendees. CONNECTING WITH CULTURE After identifying local projects for children and teenagers with disabilities, team members in our Cabreuva, Brazil, facility invested in several partnerships to strengthen resources and give back to the community. Two projects designed to promote music culture and education included dance classes and musical instrument lessons. A third project involved a basketball program that trained wheelchair users in the sport. As a result of the plant’s participation in the programs, around 100 individuals were connected with new skills and opportunities and were able to improve their physical and mental health, socialization and self-esteem. DRIVING HEALTHCARE SUPPORT As part of its Health Initiative Program, associates in our Korinthos, Greece, plant organized a blood donation drive in early 2020 in collaboration with Korinthos General Hospital to combat a supply shortage in the province and help meet extreme transfusion needs. Specialized doctors were on-site to answer questions, educate employees about the benefits of blood donation and help conduct the drive. FEEDING LOCAL FAMILIES To help contribute to its local community and ensure residents had access to meals, the associates in our Bengaluru, India plant supplied approximately 400 grocery kits to families in need in nearby villages. CONTRIBUTING TO EDUCATION Our team in Rudraram, India, engaged with the SMILE Foundation to extend educational support to underprivileged children. Its donation enabled books, uniforms and remedial classes to be provided to school-aged youngsters. Each year, our Nong Khae, Thailand, facility hosts 6–12 trainees from different universities located across the country. The trainees rotate through several departments while working with the team, including Engineering, Accounting, Purchasing and Logistics, Environmental Health and Safety, and Human Resources. The goal is to help them build their problem-solving, time management and teamwork skills. The team members based in our Dayton, Ohio (U.S.), plant are actively engaged with local colleges and technical schools to build the workforce of tomorrow. Examples include creating a program with Sinclair Community College to upgrade the Machine Repairman role to Machinist and recruiting a graduate from the Industrial Electrician course at Miami Valley Career Technology Center. Our Owatonna, Minnesota (U.S.), plant hosted an open house for Faribault Riverland and South-Central Mankato Mechatronics students and staff. It also partnered with Owatonna High School to conduct mock interviews as part of an effort to prepare graduating seniors for employment interviews. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
65 MAKING CHARITABLE CONTRIBUTIONS We recently established our Twenty by 30 Charitable Giving program to support organizations and charities in the local communities in which we operate. The organizations we donate to are nominated by employees across our global operations and often represent meaningful personal connections. We are proud to be an employer that supports our employees by helping the people and places they care about most and helping fund projects that might otherwise not be possible. We are proud to have supported the work of multiple charities around the world, which to date include: ⹅ El Albergue del Padre Pío A.C. (Guadalajara, Mexico) ⹅ American Red Cross, South Central Kentucky (Bowling Green, Kentucky, U.S.) ⹅ American-Senegal Surgical Initiative—Surgeons Teaching Surgeons (ASSISTS) (Pipersville, Pennsylvania, U.S.) ⹅ Breathing Room Foundation (Elkins Park, Pennsylvania, U.S.) ⹅ Carlisle Youth Zone (Botcherby, U.K.) ⹅ Canine Companions (Medford, New York, U.S.) ⹅ Escola de Guardas Mirins (Ponta Grossa, Parana, Brazil) ⹅ Family Accommodation Center, Republic of Bulgaria (Kardzhali, Bulgaria) ⹅ Governor’s Fund for Bowling Green (Bowling Green, Kentucky, U.S.) ⹅ Hogar Amparo de Ángeles (Tocancipa, Colombia) ⹅ Houston Food Bank (Houston, Texas, U.S.) ⹅ Kindergarten Zdravets (Bansko, Bulgaria) ⹅ Lar Cristão de Assistência a Menores (Cabreúva, São Paulo, Brazil) ⹅ Monte Salém (Manaus, Amazonas, Brazil) ⹅ Manouba Elderly Protection Centre (Manouba, Tunisia) ⹅ Neurodiversity Civil Association (Veracruz, Mexico) ⹅ Nina, un Rayon de Soleil (Dombasle-sur-Meurthe, France) ⹅ Northern Kentucky Children’s Advocacy Center (Florence, Kentucky, U.S.) ⹅ Montgomery County Food Bank (Conroe, Texas, U.S.) ⹅ Rumah Bakti Nur Ain Bangi (Selangor, Malaysia) ⹅ Seal Rescue Ireland (Courtown, Co. Wexford, Ireland) ⹅ The Smile of the Child (Patras, Greece) ⹅ Worthwhile Wear (Silverdale, Pennsylvania, U.S.) FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
66 66 Report Overview With this sustainability report, we aim to provide transparent and in-depth insight into our sustainability strategy and overall sustainability performance. The reporting period is fiscal years 2019 through 2021. The closing date for all data and facts included in this report is December 31, 2021. We have voluntarily aligned our sustainability reporting to the guidelines of the Global Reporting Initiative (GRI) since our inaugural report in 2011. In April 2022, Crown became a signatory to the UN Global Compact, committing to strive to align our sustainability priorities with the UN’s Ten Principles. This report has been prepared in accordance with GRI Standards: Core option. It also addresses the relevant requirements of the Sustainability Accounting Standards Board (SASB) Containers & Packaging standard. We first used this framework with our 2020 Interim Sustainability Report, issued on April 20, 2021, which is our most recent sustainability report. A summarized index is included at the end of this report; it is also available in a PDF format on our website. Our climate reporting also follows the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). An index covering our sustainability journey through 2021 is included at the end of this report and is available on our website in PDF format . 42 Since 2022, Crown has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labor, the environment and anti-corruption. 7 42 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
67 Data Collection & Reporting Boundaries The selection of reported content is based on the results of our materiality analysis and the requirements of the GRI Standards. Our 2021 Sustainability Report includes environmental, economic and social (ESG) data from facilities within our three metal packaging operating divisions (Crown Americas, Crown EMEA and Crown Asia Pacific) and our Transit Packaging Division. The data reflects any acquired or divested facilities that were operated by Crown for the reporting period of January 1, 2019, through December 31, 2021. It also includes information from the Company’s regional headquarters locations in Yardley, Pennsylvania (U.S.); Zug, Switzerland; and Singapore; our Research, Development and Engineering Center in Wantage, U.K.; and our regional Centers of Excellence in Singapore, Thailand, Massillon, Ohio (U.S.) and Lancaster, Ohio (U.S.), where engineers specialize in specific packaging technologies. In this reporting period, Crown opened one plant and closed four plants. We also divested 45 plants through the sale of our European tinplate business to KPS Capital Partners. Our Transit Packaging Division also began the process of moving its global headquarters to Tampa, FL, in July 2021. There are no restatements of information provided in previous Crown sustainability reports. External Verification Information provided in our sustainability reporting is subject to internal reviews and, for select data, external assurance. We engaged Lucideon CICS Limited to provide limited assurance in relation to the GRI disclosures made in this report, our total 2021 data for GHG emissions (Scope 1, 2 and 3 categories) as well as our 2021 water usage data. The assurance was conducted according to Lucideon’s assurance methodology, based on ISO 14064-3 verifications. A short assurance statement is available for download on our website. Lucideon has also provided GRI verification to the GRI Core Index, Limited Verification. Documentation can be found on our website. We have committed to publishing an annual Sustainability Report, and our next Sustainability Report is scheduled to be published in 2023. Contact Crown Seeking further details? Contact our Global Sustainability and Regulatory Affairs department at [email protected]. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
68 68 Reporting Standards 8 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
General Disclosures DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 1.ORGANIZATIONAL PROFILE 102-1 Name of the organization Crown Holdings, Inc. 102-2 Activities, brands, products and services 2021 Sustainability Report Page 4 2021 Annual Report Form 10-K Pages 1–2 102-3 Location of headquarters Yardley, Pennsylvania (U.S.) 102-4 Location of operations 2021 Sustainability Report Page 3 2021 Annual Report Form 10-K Page 22 102-5 Ownership and legal form Crown Holdings, Inc. is a publicly held corporation incorporated in the state of Pennsylvania. Our shares trade on the New York Stock Exchange. 102-6 Markets served 2021 Sustainability Report Page 4 2021 Annual Report Form 10-K Pages 2–3 102-7 Scale of the organization 2021 Sustainability Report Page 3 , 5 , 56-58 102-8 Information on employees and other workers 2021 Sustainability Report Page 56–58 Most of our workforce is comprised of Crown employees. There are no significant variations in employment numbers. 102-9 Supply chain 2021 Sustainability Report Page 7–10 102-10 Significant changes to the organization and its supply chain 2021 Sustainability Report Page 67 102-11 Precautionary principle or approach 2021 Sustainability Report Page 20 102-12 External initiatives 2021 Sustainability Report Page 18 102-13 Membership of associations 2021 Sustainability Report Page 18 Corporate website GRI Index Our 2021 Sustainability Report has been prepared in accordance with the Global Reporting Index (GRI) Standards: Core option. This content index serves as a reference to find our GRI standard disclosures in the report, as well as providing additional information that has been disclosed elsewhere in accordance with the GRI standards. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE 69
70 DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 2.STRATEGY 102-14 Statement from senior decision-maker 2021 Sustainability Report Page 1 3.ETHICS AND INTEGRITY 102-16 Values, principles, standards and norms of behavior 2021 Sustainability Report Page 6 Code of Business Conduct and Ethics Supplier Code of Conduct 4.GOVERNANCE 102-18 Governance structure 2021 Sustainability Report Page 19 2021 Annual Report Form 10-K Page 86 5.STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups 2021 Sustainability Report Page 14 102-41 Collective bargaining agreements 2021 Sustainability Report Page 56–58 102-42 Identifying and selecting stakeholders 2021 Sustainability Report Page 13 102-43 Approach to stakeholder engagement 2021 Sustainability Report Page 14 102-44 Key topics and concerns raised 2021 Sustainability Report Page 14 6.REPORTING PRACTICE 102-45 Entities included in the consolidated financial statements 2021 Annual Report Form 10-K Page 1–2 102-46 Defining report content and topic boundaries 2021 Sustainability Report Page 15–17 102-47 List of material topics 2021 Sustainability Report Page 15–17 102-48 Restatements of information There have been no restatements of information presented in previous reports. 102-49 Changes in reporting 2021 Sustainability Report Page 66 102-50 Reporting period 2021 Sustainability Report Page 66 GRI Index FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
71 DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 6.REPORTING PRACTICE 102-51 Date of most recent report 2021 Sustainability Report Page 66 102-52 Reporting cycle 2021 Sustainability Report Page 67 102-53 Contact point for questions regarding the report [email protected] 102-54 Claims of reporting in accordance with the GRI Standards 2021 Sustainability Report Page 66 102-55 GRI context index 2021 Sustainability Report Page 69–75 102-56 External assurance 2021 Sustainability Report Page 67 Anti-Corruption 205 Anti-Corruption 2016 103 Management Approach 2016 2021 Sustainability Report Page 47–48 205-1 Operations assessed for risks related to corruption 2021 Sustainability Report Page 47–48 Materials 301 Materials 2016 103 Management Approach 2016 2021 Sustainability Report Page 39–41 301-1 Materials used by weight or volume 2021 Sustainability Report Page 39 GRI Index FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
72 GRI Index Energy DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 302 Energy 2016 103 Management Approach 2016 2021 Sustainability Report Page 39-40 302-1 Energy consumption within the organization 2021 Sustainability Report Page 39 ADDITIONAL DATA ENERGY CONSUMPTION MJ COMMENT Total fuel consumption from non-renewable sources 2019: 9,840,125,490 2020: 9,463,675,175 2021: 10,477,558,854 Fuel types include natural gas, LPG, propane, diesel, fuel oil, kerosene, jet fuel and petrol and diesel for fleet. Total fuel consumption from renewable sources N/A Total electricity consumption 2019: 8,449,870,854 2020: 9,141,209,850 2021: 8,168,810,324 Includes district heating. Cooling consumption N/A Steam consumption N/A Electricity sold N/A Heating sold N/A Cooling sold N/A Steam sold N/A Total energy consumption 2019: 18,289,996,344 2020: 18,604,885,025 2021: 18,655,593,257 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
73 GRI Index Water & Effluents DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 303 Water & Effluents 2018 103 Management Approach 2016 2021 Sustainability Report Page 42–43 303-1 Interactions with water as a shared resource 2021 Sustainability Report Page 15-17 , 42-43 Twentyby30 program brochure 303-2 Management of water discharge-related impacts 2021 Sustainability Report Page 42–43 303-3 Water withdrawal 2021 Sustainability Report Page 42–43 FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
74 Emissions 305 Emissions 2016 103 Management Approach 2016 2021 Sustainability Report Page 39–40 305-1 Direct (Scope 1) GHG emissions 2021 Sustainability Report Page 40 305-2 Indirect (Scope 2) GHG emissions 2021 Sustainability Report Page 40 ADDITIONAL DATA All GHG emissions are measured in Metric Tons (MT)of CO 2 e LOCATION-BASED 2019 2020 2021 Scope 1 Emissions 511,857 490,013 545,488 Scope 2 Emissions 789,180 764,625 800,352 Scope 1+2 Emissions 1,301,037 1,254,638 1,345,840 Scope 3 Emissions 8,938,555 8,962,842 10,230,048 305-3 Other indirect (Scope 3) GHG emissions 2021 Sustainability Report Page 40 305-7 Nitrogen oxides (NO X ), sulfur oxides (SO X ), and other significant air emissions Significant air emissions, in kilograms or multiples, for each of the following: YEAR NO x SO x VOCs PM 2019 846,369kg 72,517kg 59,123kg 52,570 (*PM-10) 2020 645,818kg 31,493kg 43,157kg 40,438 (*PM-10) 2021 824,541kg 93,906kg 56,489kg 52,310 (*PM-10) GRI Index FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
75 Waste 306 Waste 2020 103 Management Approach 2016 2021 Sustainability Report Page 44–46 306-3 Waste generated 2021 Sustainability Report Page 44 306-4 Waste diverted from disposal 2021 Sustainability Report Page 45–46 306-5 Waste diverted to disposal 2021 Sustainability Report Page 45–46 Occupational Health & Safety DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 403 Occupational Health & Safety 2018 103 Management Approach 2016 2021 Sustainability Report Page 36–38 403-2 Hazard identification, risk assessment and incident investigation 2021 Sustainability Report Page 36 Training & Education DISCLOSURE DESCRIPTION REFERENCE/RESPONSE 404 Training & Education 2016 103 Management Approach 2016 2021 Sustainability Report Page 62–63 404-1 Average hours of training per employee 2021 Sustainability Report Page 62 404-3 Percentage of employees receiving regular performance and career development reviews 100% of full-time employees receive regular performance reviews. GRI Index FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
76 METRIC CATEGORY U N I T O F MEASUREMENT SASB CODE RESPONSE/ COMMENT/LINK Greenhouse Gas Emissions Gross global Scope 1 emissions, percentage covered under emissions- limiting regulations Quantitative Metric tons (t) CO 2 -e, Percentage (%) RT- CP-110a.1 CDP Climate Change—C4 , 100% of emissions are covered under emissions-limiting regulations Discussion of long-term and short- term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets Discussion and Analysis N/A RT- CP-110a.2 CDP Climate Change—C3, C4, C5 Twentyby30 brochure Air Quality Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs), and (4) particulate matter (PM 10) Quantitative Metric tons (t) RT-CP-120a.1 NO x SO x VOCs PM 909 103 62 58 Energy Management (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total self-generated energy Quantitative Gigajoules (GJ), Percentage (%) RT-CP-130a.1 CDP Climate Change—C8.2 Water Management (1) Total water withdrawn (2) Total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress Quantitative Thousand cubic meters (m 3 ), Percentage (%) RT-CP-140a.1 CDP Water Security—W1.2 Description of water management risks and discussion of strategies and practices to mitigate those risks Quantitative Number RT-CP-140a.2 CDP Water Security Number of incidents of non-compliance associated with water quality permits, standards and regulations Quantitative Number RT-CP-140a.3 9—all have since been resolved/ in-compliance SASB Disclosures FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
77 METRIC CATEGORY U N I T O F MEASUREMENT SASB CODE RESPONSE/ COMMENT/LINK Waste Management Amount of hazardous waste generated, percentage recycled (The entity shall disclose the legal or regulatory framework(s) used to define hazardous waste and recycled hazardous waste, and the amounts of waste defined in accordance with each applicable framework) Quantitative Metric tons (t), Percentage (%) RT-CP-150a.1 Crown 2021 Sustainability Report, GRI 306-3, 306-4 and 306-5 Product Safety Number of recalls issued, total units recalled Quantitative Number RT-CP-250a.1 0 Discussion of process to identify and manage emerging materials and chemicals of concern Discussion and Analysis N/A RT-CP-250a.2 Never Compromise , Product Safety Product Lifecycle Management Percentage of raw materials from: (1) recycled content, (2) renewable resources and (3) renewable and recycled content Quantitative Percentage (%) by weight RT-CP-410a.1 (1) 47% (2) 6.1% (3) 4.8% Revenue from products that are reusable, recyclable and/or compostable Quantitative Reporting Currency RT-CP-410a.2 94% of revenue, or $10,739 million USD, was from products that are reusable, recyclable and/or compostable Discussion of strategies to reduce the environmental impact of packaging throughout its lifecycle Discussion and Analysis N/A RT-CP-410a.3 Circular Economy , Optimum Circularity Supply Chain Management Total wood fiber procured, percentage from certified sources Quantitative Metric tons (t), Percentage (%) RT-CP-430a.1 156,956 metric tons procured, 66% from certified sources (FSC) Total aluminum purchased, percentage from certified sources Quantitative Metric tons (t) CO 2 -e, Percentage (%) RT-CP-430a.2 1,040,625 MT. We currently do not report on the percentage from certified sources SASB Disclosures FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
78 METRIC CATEGORY U N I T O F MEASUREMENT SASB CODE RESPONSE/ COMMENT/LINK Activity Metrics Amount of production, by substrate (Relevant substrates include paper and/or wood fiber, glass, metal and petroleum-based substrates (i.e., polymers) Quantitative Metric tons (t) RT-CP-000.A Steel (MT) Aluminum (MT) Glass (MT) 470,209 1,108,218 419,246 Plastic (MT) Paper/Wood (MT) 193,104 165,688 Percentage of production as: (1) paper/wood, (2) glass, (3) metal and (4) plastic Quantitative Percentage (%) by revenue RT-CP-000.B The Percentage of production by revenue is as follows, by material: 61% aluminum beverage, 13% steel packaging, 22% transit packaging, 2% glass packaging, 2% Crown machinery Steel packaging includes: Food, Aerosol, Closures, Promotional Packaging Transit packaging includes: steel strapping, plastic wrap & strapping, paper/cardboard Number of employees Quantitative Number RT-CP-000.C 26,000 SASB Disclosures FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
79 Scenario Analysis Crown has completed an initial climate-related scenario analysis and intends to continue to refine it further as we mature in our alignment with the TCFD disclosures. With a focus on the 2020–2030 timeframe, we identified risks and opportunities for our operations in two types of climates: “business as usual” and “Paris Agreement-aligned 1.5°C increase.” These potential scenarios will be considered when developing strategies for the global organization. Goals With the launch of the Twenty by 30 program in July 2020, Crown has been accelerating its sustainability commitments with ambitious targets. Our climate goals, approved by the Science Based Targets Initiative (SBTi), include: ⹅ 50% reduction in Scope 1 and 2 GHG emissions ⹅ 16% reduction in Scope 3 GHG emissions ⹅ Source 75% of our energy from renewable sources by 2030 and 100% by 2040 Recognition SUSTAINALYTICS Total ESG risk rating score of 9.8 ranks in the highest-performing category. INVESTOR’S BUSINESS DAILY Top 100 businesses with superior ESG ratings and stock price performance: Top 5 in Industrials category and #24 overall. THE WALL STREET JOURNAL 100 most sustainably managed companies in the world: Only U.S.-based organization, only containers and packaging supplier and top 10 in best companies at managing environmental risk. CDP Supplier Engagement Leader (A score) and Climate Change Leader (A- score). Data Verification Our Scope 1, 2, and 3 GHG emissions and water data submitted to CDP are verified by a third party. This ensures confidence in our ability to measure progress toward our Twenty by 30 sustainability targets. Recent Initiatives THE CLIMATE PLEDGE Crown committed to reaching Net-Zero by 2040, 10 years ahead of the Paris Agreement. THE ALUMINIUM STEWARDSHIP INITIATIVE Crown achieved certification to the Performance Standard for all operations in Brazil and Mexico. Crown will continue to expand the certification to Asia Pacific and Europe regions, next. In 2022, Brazil achieved certification to the Chain of Custody Standard with Mexico next in line to pursue Chain of Custody Standard certification. THE ELLEN MACARTHUR FOUNDATION Crown became a member to support circularity. THE NATURE CONSERVANCY Crown partnered with The Nature Conservancy to replenish resources in water-scarce regions. 2021 TCFD Report As an official supporter of the Task Force on Climate-Related Financial Disclosures (TCFD), this disclosure references Crown’s first voluntary reporting following the guidelines of TCFD and covers our sustainability journey through 2021. The TCFD framework is closely aligned with disclosures in our CDP Report, Annual Report and Sustainability Report. Additional information is available on Crown’s Corporate website. FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
80 RECOMMENDATION CATEGORY CRITERIA DISCLOSURE Governance Disclose the organization’s governance around climate-related risks and opportunities. Describe the Board’s oversight of climate-related risks and opportunities. The entire Board of Directors oversees ESG issues. Details can be found in the Nominating and Corporate Governance Committee Charter. Describe management’s role in assessing and managing climate-related risks and opportunities. CDP C1.3, C2.2 Strategy Disclose the actual and potential impacts of climate- related risks and opportunities on the organization’s businesses, strategy and financial planning where such information is material. Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term. CDP C2.2—C2.4 Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning. CDP C2.2—C2.4, CDP C3.3—C3.4 Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. While climate-related risks and opportunities have influenced Crown’s strategy, we plan to conduct in-depth climate scenario analyses to be considered in strategic decision-making. Risk Management Disclose how the organization identifies, assesses and manages climate-related risks. Describe the organization’s processes for identifying and assessing climate-related risks. CDP C2.2 Describe the organization’s processes for managing climate-related risks. CDP C2.2 Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management. CDP C2.2 Metrics & Targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. CDP C2.2—C2.4 Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. CDP C6, Verified Emissions Data Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. CDP C6, Verified Emissions Data, Twenty by 30 Brochure 2021 TCFD Report FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE FAST-TRACKING PROGRESS FOCUSING ON OUR CORE OUR PEOPLE & COMMUNITIES REPORT OVERVIEW REPORTING STANDARDS SUSTAINABILITY STRATEGY FROM OUR CEO WHO WE ARE
81 Please visit our website crowncork.com to read more of our story and obtain additional information. CORPORATE/AMERICAS DIVISION HEADQUARTERS Crown Holdings, Inc. Crown Americas LLC 770 Township Line Road Yardley, PA 19067 USA Main Tel: +1 (215) 698-5100 EUROPEAN DIVISION HEADQUARTERS Crown Packaging Europe Division GmbH Baarermatte CH-6340 Baar Switzerland Main Tel: +41 41 759 10 00 ASIA PACIFIC DIVISION HEADQUARTERS 1 HarbourFront Place #03-01 HarbourFront Tower One Singapore 098633 Main Tel: +65 6423 9798 TRANSIT PACKAGING DIVISION HEADQUARTERS Signode Industrial Group 14025 Riveredge Drive Tampa, FL 33637 Main Tel: +1 (847) 724-6100