Ball, a global aluminum packaging solutions provider, has released its 2023 annual report and sustainability report. In 2023, the company continues to demonstrate its commitment to sustainability, the resilience of its products, and the foundations, capabilities and strength of its operations. Over the past year, Ball has continued to strengthen the groundwork to deliver on the company's commitment to create measurable value and promote sustainability for itself and its stakeholders by providing scalable, low-carbon aluminium packaging solutions.
Ball provides innovative, sustainable aluminium packaging solutions for beverage, personal care and household products customers. The company employs 16,000 people worldwide (excluding the divestitures of the aerospace segment) and has net sales of $14.03 billion in 2023.
The company had a strong 2023 financial performance and plans to use the net proceeds and free cash flow from the sale of its aerospace segment of approximately $4.5 billion to significantly deleverage in 2024 and beyond and accelerate value return to shareholders. The company continues to invest, playing to its strategic positioning to deliver ongoing value to its stakeholders and to provide its customers with the sustainable solutions they need.
In its sustainability report, Ball discloses its practices in responsible production and sourcing, demonstrating its performance and objectives in driving a sustainable supply chain.
More than half (58%) of Ball's global electricity consumption comes from renewable energy sources, with beverage packaging plants in the United States running on 100% renewable energy. The company's global greenhouse gas emissions were cut in half compared to the previous year.
In 2023, the company continued to work with suppliers to improve the recycled content of its products, with the global average recycled content of beverage packaging reaching 70%, an increase of 4% over the previous year.
Ball follows the Aluminum Management Initiative ASI to build a sustainable aluminum supply chain
In particular, Ball highlighted the company's response to and active participation in the Aluminum Management Initiative ASI program to support its efforts to demonstrate the ambition of its climate transformation plan and its 2030 goals. ASI is a global standards setting and certification organization whose goal is to work with aluminum producers, users and stakeholders to promote responsible production and sourcing practices. ASI is a simple, reliable way to support our customers' products to truly align with the values of governance, ethics, social responsibility and product stewardship throughout the value chain.
Ball has been with ASI since 2012. In 2017, Ball worked with ngos and other industry partners to help develop the ASI standard. Ball is currently working with aluminum suppliers to achieve ASI certification in a broader and larger proportion of its supply chain.
In 2022, Ball became the world's first beverage can manufacturer to have all its canning plants certified by the Aluminum Management Initiative ASI Performance Standard (PS) and Chain of Custody Standard (CoC). In January 2023, Ball's aerosol tank business also received ASI certification.
By the end of 2023, 100% of Ball's global aluminum can suppliers (aluminum rolling plants) are already ASI members, of which 68% of aluminum suppliers have passed the ASI performance standard certification, 46% of aluminum suppliers have passed the ASI performance standard and chain of custody standard dual certification. In 2023, 21% of the aluminum cans purchased by Ball will be responsible aluminum (ASI aluminum) following a continuous certification path along the ASI chain of custody.
Ball has set a responsible sourcing goal for aluminum, with 100 percent of its aluminum coming from ASI-certified sustainable aluminum supply chains by 2030. Ball is actively working with aluminum material suppliers to promote ASI certification for suppliers and their upstream supply partners.
In 2023 Bohr collaborated with Cervejaria Masterpiece to introduce the ASI product logo on the design of its newly released aluminum cans for wine products. This package bearing the ASI Responsible Aluminum Sourcing logo is a landmark moment for the can industry and represents a tangible result of responsible aluminum sourcing in compliance with ASI standards.
Ball's statement on the sustainability of aluminium packaging
Ball has analysed the challenges and opportunities facing the aluminium packaging industry in the context of sustainability. Pohl believes that in recent years, consumers have shifted from convenience consumption to more prudent and sustainable options. After the traditional price, quality and convenience factors, sustainability has become the fourth key factor in packaging choices. Ball is at the forefront of this transformation, delivering 106.5 billion aluminum packaging products to the market in 2023 alone.
Aluminum packaging is becoming more and more attractive to consumers. Its lightweight, efficient packaging and high breakage-resistance and design make it ideal for e-commerce and direct-to-consumer business models. Ball understands the importance of customers' products standing out on crowded retail shelves. At the heart of Bohr's approach is a belief in the potential of aluminium packaging, whose lightweight, durable and recyclable properties make it a sustainable packaging option. Compared to other packaging forms, aluminum packaging has the potential to be used in a variety of occasions, including single-use, refilling and reuse. Ball is also working to find innovative solutions to reduce waste and promote a circular economy.
It all starts with listening to the client. Bohr's commitment to its customers is unwavering, Bohr understands the challenges that customers are currently facing, and Bohr is committed to providing solutions that not only meet, but exceed their needs. Since 2020, many of Ball's largest customers have published plans to achieve net zero carbon emissions by 2050 or earlier. Packaging accounts for 40% of these customers' greenhouse gas emissions, and Ball is continuing to develop aluminum packaging solutions to support the continued success of its customers.
Bohr said that aluminum penetration in beer, carbonated soft drinks, coffee and energy drinks increased for the fifth consecutive year. Aluminum packaging in the above areas of the global market share of more than 30%. When consumers know that the packaging of their favorite products can be reused over and over again, it gives them peace of mind and a feeling of contributing to the circular economy.
Ball is proud to be a global player in aluminum packaging and is committed to advancing innovation by pushing the boundaries of what is possible. Ball believes that aluminum has the potential to change the way we all think and use packaging, and Ball is excited to be at the forefront of this change. Ball currently offers a wide selection of aluminium packaging containers to all customers. "We're not just a packaging company," Bohr says. We are a resource for our customers by helping them meet today's challenges and providing them with solutions they can feel good about. Product management, innovation and customer success are what set us apart, and we are proud to be a trusted partner to our customers."
In 2023, Ball published a comprehensive Climate transformation plan that charts the company's path to a circular and decarbonized business that delivers unmatched value to shareholders, customers and all other stakeholders, while being more beneficial to the planet's environment and ecology. The plan is a path for the company to achieve significant emissions reductions in the near and medium term. At the same time, by further increasing the level of transition, it is possible to reduce greenhouse gas emissions across the supply chain partners by 55%, achieving net zero carbon emissions between 2040 and 2050.
Ball's Climate transformation program demonstrates the company's commitment to sustainability. The company has developed customized emission reduction paths to help its customers meet their respective climate goals. It is Ball's focus on innovation and recycling that enables it to remain at the forefront of the industry while providing customers with solutions that reduce their environmental impact and enhance their brand image. In addition to beverages, Ball's aluminum packaging products are also making waves in the health, beauty, personal and home care products sector. These same qualities make aluminum packaging ideal for these emerging categories. Ball's commitment to sustainability and innovation ensures that aluminium packaging is both a carrier for the products being packaged and a statement of value for those products.
Ball's 2030 sustainability targets for product management
Recovery and recycling:
Promote the global recycling rate of aluminum cans, bottles and cups to reach 90% by 2030. (The current global average is 70%)
Working with our supply chain partners, an average of 85% of the aluminum used in the production of Ball aluminum cans, bottles and cups is recycled in the regions where we operate. (The current global average recycled aluminum content of Ball products is 67%)
Start the second generation of ReAl? Aerosol tank technology to achieve 75% recovery content by 2030. (Currently the recycling content of Re:Gen products is 50%)
Climatic force
Reduce all greenhouse gas emissions in Scope 1 and 2 by 55% by 2030 compared to 2017. (It has been reduced by 42%.)
Reduce all greenhouse gas emissions in Scope 3 by 55% by 2030 compared to 2017. (It's currently up 4%.)
Achieve 100% renewable electricity globally by 2030, with an interim target of 75% by 2025. (58% by the end of 2023)
Healthy material
By 2030, 100% of Ball's inks, coatings and compounds will be silver or better Certified Cradle to Cradle? . (Currently 33% of beverage coatings are certified silver or higher)
Ball's aluminum cups achieve platinum rating in compliance with Cradle to Cradle certified product standards (2023). (Certified Bronze level for 2022)
Resource efficiency
In 2023, 80% of global Ball aluminum beverage can production will use the weight-optimized STARcan dome design. (41% in 2023)
By 2030, 50% of the world's Boer aerosol tanks will use lightweight ReAl? Alloy production (2030). (66% in 2023)
The energy efficiency of aluminum can manufacturing in 2030 is 30% higher than in 2020. (A 4.7% increase by 2023)
The water efficiency of tank production in 2030 is 50% higher than in 2020, and at least 30% higher in existing facilities. (7.6% increase by 2023)
Responsible purchasing
By 2030, 100% of aluminum will come from ASI-certified sustainable aluminum supply chains.
Advance Ball's supplier diversity program to double sourcing from different U.S. suppliers by 2030 compared to 2020.
By 2030, evaluate the ESG practices of all key suppliers (48 percent in 2023), spend $5 million or more annually on this, and ensure that suppliers implement corrective actions when they do not meet Bohr requirements.
