Elopak upgrades net zero targets as quarterly revenues surpass US$252m mark

NORWAY – Elopak, a leading global supplier of carton packaging and filling equipment, has updated its near and long-term, company-wide emission reduction targets as part of a commitment to achieving net-zero across the value chain by 2050.

In the recently updated targets, Elopak is committing to reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions 42% by 2030 from a 2020 base year.

 This, according to the company, includes all direct emissions from fuel combustion at its factories and all indirect emissions from purchased electricity.

In addition, the Oslo, Norway based company pledges to continue sourcing 100% renewable electricity, as it has done since 2016.

Elopak has also committed to reduce scope 3 GHG emissions 25% by the year 2030. This refers to all indirect emissions related to the company’s products, such as raw materials, transportation, business travel, and the use of filling machines.

These near-term targets have been reviewed and approved by the SBTi and form the first step in reaching net zero by the year 2050, according to the company.

“Achieving these near-term targets is especially important as scientists believe that the next decade will be absolutely crucial in mitigating the worst impacts of climate change,” Elopak’s Director Sustainability Marianne Groven explained.

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“Reaching these targets will require a different way of thinking, working and collaborating both internally and across our value chain. We are raising the bar and encourage other companies to join us in the journey to net-zero,” she added.

Quarterly revenues surpass US$252m mark

Meanwhile, Elopak reported strong operational performance in the first quarter of 2022, with revenues rising 9% to EUR 243.4 million (US$252.33 million).

The company attributed the results to value growth in EMEA and Americas although operations were negatively impacted by the ongoing conflict in Ukraine, as well as unprecedented high prices of raw materials.

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Increased raw material prices impacted the Q1 results by approximately EUR 9 million while the company took on a total impairment charge of EUR 22.2 million related to assets in Russia and Ukraine.

“I am very pleased with our strong revenue growth delivered in the quarter. This was primarily driven by our ability to pass through cost increases, in addition to higher volumes in segments in both Europe and Americas,” said Elopak CEO Thomas Körmendi.

Körmendi however noted that the inflationary environment will continue to have a negative impact in the second quarter until the company’s recently announced price increases take effect from June.

During the quarter, Elopak managed to complete the acquisition of Naturepak acquisition and signed a JV agreement in India with GLS.

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