Introduction from our Chair of the Board and Group Chief Executive

Our Purpose of Redefining Packaging for a Changing World has never been more relevant to our business and society. As a fully fibre-based packaging business, our integrated Packaging, Paper and Recycling circular operations support our vision to be the leading supplier of sustainable packaging solutions.

Designing for the circular economy

As a leading packaging supplier that works with some of the biggest brands in the world, we are well-positioned to transform packaging supply chains through innovative, circular design. This is a crucial part of our customer value proposition, providing a springboard to firmly position DS Smith as an enabler of the circular economy through sustainable packaging solutions, reinforcing our circular business model. Sustainability is at the heart of DS Smith, not only in how we operate our own business but also in how we help our customers to solve their own sustainability challenges.

Tackling problem plastics

This year, we saw even greater acceleration in our customers’ aspirations for plastic replacement and carbon reduction, reflecting the acceptance of fibre-based packaging as a sustainable alternative to the hard-torecycle plastics that pollute our planet. Since setting our Now and Next target to replace 1 billion pieces of problem plastic by 2025, we have replaced 313 million units with recyclable alternatives by the end of 2021/22. We achieved our target to fund 100 biodiversity projects, which will improve nature in our local communities across Europe and North America, ahead of its 2025 deadline. We continued to drive carbon reduction, reducing the emissions intensity of our operations by 5 per cent compared to last year and by 29 per cent per tonne of production compared to 2015.

“Our engagement with stakeholders on ESG has increased as the interests and requirements of our customers, investors and consumers continues to grow, indicating that we are performing well across every measure, such as in our use of recycled and sustainably sourced materials.” “In the year that the UK hosted COP26, we announced a 1.5°C science-based target, having already reduced our emissions by 29 per cent per tonne of production since 2015. We achieved our Now and Next target to manufacture 100 per cent reusable or recyclable packaging, enabling the circular economy for our customers at scale.”

Setting a 1.5°C science-based target

During 2021/22, the Board approved the significant strategic decision to commit to a science-based target to reduce Scope 1, 2 and 3 GHG emissions 46% by 2030 compared to 2019 and to reach Net Zero GHG emissions by 2050. This ambitious target has been validated by the Science-Based Targets initiative (SBTi) as in line with a 1.5°C trajectory, committing DS Smith to make a critical contribution to limit the worst impacts of climate change.

Engaging our stakeholders on ESG

Throughout the year, our engagement with stakeholders on ESG (Environmental, Social and Governance) has increased significantly, as the interests and requirements of our customers, investors and consumers continues to grow, indicating that we are performing well across every measure, such as in our use of recycled and sustainably sourced materials. The Board is pleased with the performance of the Group with respect to ESG and sustainability matters and on behalf of the Board I would like to thank everyone for their commitment and hard work.

Geoff Drabble

Chair Every day, we continue to live our Purpose of Redefining Packaging for a Changing World, accelerating the transition to the circular economy and working to realise our vision to be the leading supplier of sustainable packaging solutions. I was appalled by the invasion of Ukraine and our immediate priority has been the safety of our colleagues, partners and wider stakeholders across the region. Many of our colleagues led fundraising and donation efforts across the globe and we have committed hundreds of thousands of pounds of humanitarian aid in response to this crisis. At a time of great change in the world, during which we have seen continued strong growth from evolving retail and e-commerce environments, we have deepened our commitment to sustainability and continued to progress our ambitious plans.

Enabling the circular economy

Our Now and Next sustainability strategy, focused on the challenges we face today, as well as those that will impact future generations, continues to position DS Smith at the forefront of the packaging industry as we enable our customers to participate in the circular economy. We achieved our target to manufacture 100 per cent reusable or recyclable packaging, ensuring that new packaging solutions are fit for the circular economy by design and that our customers can help the consumer to recycle, enabling the circular economy at scale. Increasing ESG ratings

We increased our scores in five leading ESG ratings, with strong progress made in CDP, DJSI (S&P Global CSA), EcoVadis, MSCI and Sustainalytics throughout 2021, strengthening our credentials as a leader in sustainable packaging. We were placed on the prestigious ’A List’ for protecting water resources, recognising our leadership on corporate environmental ambition and action by CDP, which is widely recognised as the gold standard of corporate environmental transparency.

Accelerating sustainable growth

Sustainability and the circular economy is the energy that drives our business and growth. We remain steadfast in our commitment to improving the world around us, playing an important role in helping brands and the wider society transition to the circular economy.

Miles Roberts

Group Chief Executive