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Directors’ Report and Financial Statements 2024 | 1
HUHTAMÄKI OYJ
DIRECTOR’S REPORT AND
FINANCIAL STATEMENTS
2024
BUSINESS ID: 0140879-6
This ESEF report is a translation and has been published voluntarily.
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Directors’ Report and Financial Statements 2024 | 2
Contents
Director’s report 2024
4
Financial review
4
Risk review
12
Information for shareholders
15
Sustainability statement
18
General information
18
Environmental information
35
Social information
70
Governance information
92
Appendix to the sustainability statement
97
Financial statements
107
Consolidated financial statements
107
Consolidated statement of income (IFRS)
107
Group statement of comprehensive income (IFRS)
108
Consolidated statement of financial position (IFRS)
109
Consolidated statement of changes in equity (IFRS)
110
Consolidated statement of cash flows (IFRS)
111
Notes to the consolidated financial statements
112
1. Basis of preparation
112
1.1. CORPORATE INFORMATION
112
1.2. BASIS OF PREPARATION
112
1.3. ADOPTION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS
112
1.4. PRINCIPLES OF CONSOLIDATION
113
1.5. FOREIGN CURRENCY TRANSLATION
114
1.6. USE OF SIGNIFICANT ESTIMATES AND JUDGEMENTS
114
2. Financial performance
115
2.1. SEGMENT AND REVENUE
115
2.2. EMPLOYEE BENEFITS
118
2.3. DEPRECIATION, AMORTIZATION AND IMPAIRMENT
120
2.4. OTHER OPERATING INCOME
121
2.5. OTHER OPERATING EXPENSES
122
2.6. INCOME TAXES
122
2.7. EARNINGS AND DIVIDEND PER SHARE
124
3. Acquisitions and capital expenditure
126
3.1. BUSINESS COMBINATIONS
126
3.2. GOODWILL
126
3.3. INTANGIBLE ASSETS
128
3.4. TANGIBLE ASSETS
129
3.5. NON-CURRENT ASSETS HELD FOR SALE
132
4. Working capital
133
4.1. INVENTORIES
133
4.2. TRADE AND OTHER CURRENT RECEIVABLES
133
4.3. PROVISIONS
134
4.4. TRADE AND OTHER CURRENT LIABILITIES
135
4.5. SUPPLIER FINANCE ARRANGEMENTS
135
5. Capital structure and financial items
136
5.1. NET FINANCIAL ITEMS
136
5.2. INTEREST-BEARING RECEIVABLES
136
5.3. CASH AND CASH EQUIVALENTS
137
5.4. SHAREHOLDERS’ EQUITY
137
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Directors’ Report and Financial Statements 2024 | 3
5.5. INTEREST-BEARING LIABILITIES
140
5.6. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
141
5.7. MANAGEMENT OF FINANCIAL RISKS
143
6. Other disclosures
148
6.1. CLIMATE RELATED MATTERS
148
6.2. RELATED PARTY TRANSACTIONS
148
6.3. SHARE-BASED PAYMENTS
150
6.4. LEASES
152
6.5. COMMITMENTS
153
6.6. LITIGATIONS
153
6.7. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
154
Subsidiaries
155
Parent company financial statements
158
Signatures of the Board of Directors’ Report and Financial Statements
167
Auditor’s Report
168
Assurance Report on the Sustainability Statement
173
Independent Auditor’s Reasonable Assurance Report on Huhtamäki Oyj’s ESEF Financial Statements
176
Definitions for performance measures
178
Key figures and financial development
179
Share and shareholders
180
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Directors’ Report and Financial Statements 2024 | 4
Director’s report 2024
Financial review
Operating environment
During the first half of 2024, market conditions remained similar or slightly better than during the latter part of 2023.
During the second half of 2024, overall conditions improved. The cumulative inflation over the last years continued to
have a negative impact on consumption. Lower interest rates supported consumers’ purchasing power, together with
the continued increase in wages.
Throughout the year, there were material differences in the development of demand by categories and geographies. In
North America, demand improved in the foodservice market and remained close to the previous year’s level in the retail
and consumer goods categories. In other foodservice markets, demand was hampered by the impact of inflation and
boycotts of certain brands as a result of the war in the Middle East. Demand for fiber and flexible packaging products
improved in most markets.
For input costs, most raw material prices did not materially fluctuate during the year. Prices for paperboard decreased
somewhat compared to 2023. Plastics prices, on average, remained close to the previous year’s level. On the other
hand, there was a significant increase in fiber prices, both for recycled paper and virgin fiber. Out of the other key cost
components, labor costs continued to increase globally. Transportation costs remained close to the previous year’s level,
whereas energy prices decreased.
Strategic development
Huhtamaki updated its 2030 Strategy in March 2023, and it builds on four priorities: scaling up its profitable core
businesses, developing its blueloop™ sustainable innovation in partnership with customers, driving world-class
competitiveness across its global footprint and investing in strategic capabilities to drive its transformation journey.
Huhtamaki targets sustainable profitable growth based on its strong competitive position. Scaling up profitable core
business is one of the key elements in Huhtamaki’s 2030 strategy, leveraging the company’s knowhow in its three key
technologies, its existing global footprint and existing products’. Huhtamaki’s capital expenditure is focused accordingly,
while also investing in innovation. In 2024, the company invested in, for example, the expansion of the folded carton
site in Texas in the United States. Huhtamaki targets long-term growth by both capturing the organic growth
opportunities and via acquisitions.
Innovation plays an increasingly important role for Huhtamaki, as it is leveraging its proprietary technology. The entire
packaging industry is going through a transformation, driven by increasing requirements in the fields of sustainability,
functionality and convenience. The required technological solutions are increasingly complex, and the market is evolving
rapidly. During 2024, Huhtamaki focused on rolling out the recyclable flexible packaging solutions, the sales of which
gained traction towards the end of the year.
Huhtamaki aims to achieve world-class operational performance across its footprint, where the key drivers are structural
performance and continuous operational improvements. These actions are expected to contribute 1-2 percentage
points to the overall profitability improvement, as stated in the long-term financial ambitions. To drive efficiency,
Huhtamaki launched a profitability improvement program in late 2023. During 2024, the company made significant
progress and achieved significant cost savings. Actions in the program included savings from sourcing, closure of sites
in China, Malaysia and the UAE, labor efficiencies and reduced waste.
In 2024, Huhtamaki continued to make good progress implementing the strategic priorities.
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Directors’ Report and Financial Statements 2024 | 5
Key figures
EUR million
2024
2023
2022
Net sales
4,126.3
4,168.9
4,479.0
Comparable net sales growth
-0%
-2%
15%
Adjusted EBITDA
1
622.2
590.1
596.9
Margin
1
15.1%
14.2%
13.3%
EBITDA
595.6
621.2
614.9
Adjusted EBIT
2
416.9
392.6
395.1
Margin
2
10.1%
9.4%
8.8%
EBIT
372.3
380.9
405.3
Adjusted EPS, EUR
3
2.48
2.32
2.49
EPS, EUR
2.14
1.97
2.65
Adjusted ROI
2
12.1%
11.2%
11.0%
Adjusted ROE
3
13.4%
13.2%
14.9%
ROI
10.8%
10.9%
11.4%
ROE
11.6%
11.8%
15.7%
Capital expenditure
247.9
318.7
318.5
Free Cash Flow
215.8
321.4
11.1
1
Excluding IAC of EUR -26.5 million in 2024 (EUR 31.1 million in 2023 and EUR 18.0 million in 2022).
2
Excluding IAC of EUR -44.7 million in 2024 (EUR -11.7 million in 2023 and EUR 10.2 million in 2022).
3
Excluding IAC of EUR -35.1 million in 2024 (EUR -35.9 million in 2023 and EUR 16.0 million in 2022).
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2023. Figures of return on investment (ROI),
return on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calculated on a 12-month rolling
basis.
IAC includes, but is not limited to, material restructuring costs and acquisition related costs (gains and losses on business combinations, professional
and legal fees, material purchase price accounting adjustments for inventory, material purchase price amortization of intangible assets and changes
in contingent considerations) as well as material impairment losses and reversals, gains and losses relating to sale of intangible and tangible assets,
implementation costs concerning large projects with SaaS cloud computing technology, fines and penalties imposed by authorities and extraordinary
taxes.
The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been
calculated using exact figures
.
Net sales by business segment
EUR million
2024
2023
Change
Foodservice Europe-Asia-Oceania
989.6
1,037.2
-5%
North America
1,460.1
1,457.9
0%
Flexible Packaging
1,322.5
1,341.0
-1%
Fiber Packaging
363.2
343.1
6%
Elimination of internal sales
-9.1
-10.3
Group
4,126.3
4,168.9
-1%
Comparable net sales growth by business segment
2024
2023
2022
Foodservice Europe-Asia-Oceania
-5%
2%
18%
North America
0%
2%
14%
Flexible Packaging
1%
-9%
14%
Fiber Packaging
6%
7%
15%
Group
-0%
-2%
15%
The Group’s net sales decreased 1% to EUR 4,126 million (EUR 4,169 million) during the reporting period.
Comparable net sales growth was -0%. Demand improved during the second half of the year, after a muted first half.
The impact of inflation and boycotts of global brands in certain markets had a negative impact on demand. Net sales
were weighed on by changes in currencies and lower pricing, while sales volumes increased slightly. Comparable sales
growth in emerging markets was -2%. Foreign currency translation impact on the Group’s net sales was EUR -37
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Directors’ Report and Financial Statements 2024 | 6
million (EUR -153 million) compared to 2023 exchange rates.
Net sales by segment, 2024
Net sales by segment, 2023
Adjusted EBIT by business segment
Items affecting comparability
EUR million
2024
2023
Change
2024
2023
Foodservice Europe-Asia-Oceania
91.0
98.0
-7%
-15.1
-9.9
North America
203.4
187.9
8%
-7.6
-0.0
Flexible Packaging
94.2
88.0
7%
-16.6
5.8
Fiber Packaging
43.5
39.6
10%
-2.2
-6.2
Other activities
-15.2
-20.9
-3.2
-1.4
Group
416.9
392.6
6%
-44.7
-11.7
Adjusted EBIT by segment, 2024
Adjusted EBIT by segment, 2023
Adjusted EBIT margin by business segment
2024
2023
2022
Foodservice Europe-Asia-Oceania
9.2%
9.4%
9.5%
North America
13.9%
12.9%
11.7%
Flexible Packaging
7.1%
6.6%
6.3%
Fiber Packaging
12.0%
11.6%
11.0%
Group Total
10.1%
9.4%
8.8%
The Group’s adjusted EBIT increased to EUR 417 million (EUR 393 million) and reported EBIT was EUR 372 million
(EUR 381 million). Adjusted EBIT increased by 6% supported by the company’s actions to improve profitability as well
as lower raw material and energy costs. On the other hand, lower sales prices and the increase in labor costs had a
negative impact on profitability. The Group’s adjusted EBIT margin increased and was 10.1% (9.4%). Foreign currency
translation impact on the Group’s earnings was EUR -4 million (EUR -15 million).
Adjusted EBIT excludes EUR -44.7 million (EUR -11.7 million) of items affecting comparability (IAC), including costs of
implementing operational efficiency measures and positive impacts from divestment of real estate in China and India.
24
3
32
Foodservice EAO
North America
Flexible Packaging
Fiber Packaging
2
3
32
Foodservice EAO
North America
Flexible Packaging
Fiber Packaging
2
4
22
0
Foodservice EAO
North America
Flexible Packaging
Fiber Packaging
24
4
2
0
Foodservice EAO
North America
Flexible Packaging
Fiber Packaging
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Directors’ Report and Financial Statements 2024 | 7
Adjusted EBIT and IAC
EUR million
2024
2023
Adjusted EBIT
416.9
392.6
Acquisition related costs
-1.1
-0.5
Restructuring gains and losses, including writedowns of related assets
-25.1
17.3
PPA amortization
-8.8
-8.9
Settlement and legal fees of disputes
-2.0
-0.2
Prague site closure-related costs
-
-18.8
Property damage incidents
-1.5
-0.1
Implementation costs concerning large projects with SaaS cloud computing technology
-6.1
-0.6
EBIT
372.3
380.9
Net financial expenses were EUR 72 million (EUR 69 million). Tax expense was EUR 69 million (EUR 87 million). The
effective tax rate was 23% (28%). The lower effective tax rate was due to the unusually high deferred tax charge related
to functional currency remeasurements in Türkiye in the comparison period. Profit for the period was EUR 232 million
(EUR 225 million). Adjusted earnings per share (EPS) were EUR 2.48 (EUR 2.32) and reported EPS EUR 2.14 (EUR 1.97).
Adjusted EPS is calculated based on adjusted profit for the period attributable to equity holders of parent company,
which excludes EUR -35.1 million (EUR -35.9 million) of IAC.
Adjusted profit and IAC
EUR million
2024
2023
Adjusted profit for the period attributable to equity holders of the parent company
259.2
242.3
IAC in EBIT
-44.7
-11.7
IAC in Financial items
-0.4
-0.1
Taxes relating to IAC
10.5
-15.5
IAC attributable to non-controlling interest
-0.5
-8.6
Profit for the period attributable to equity holders of the parent company
224.1
206.3
Statement of financial position and cash flow
The Group’s net debt decreased and was EUR 1,216 million (EUR 1,288 million) at the end of December. The level of
net debt corresponds to a gearing ratio of 0.57 (0.67). Net debt to EBITDA ratio (excluding IAC) was 2.0 (2.2). Average
maturity of external committed credit facilities and loans was 3.1 years (2.9 years).
On September 23, 2024, Huhtamaki announced that it had extended the maturity of the EUR 125 million sustainability-
linked bilateral term loan facility agreement, first announced on May 22, 2023. The extension for a further period of
one year is in accordance with the extension option of the loan agreement. The new termination date is May 22, 2026.
The term loan will be used for general corporate purposes of the Group.
On November 12, 2024, Huhtamaki announced that it had signed a EUR 450 million sustainability-linked syndicated
multi-currency revolving credit facility loan agreement (“RFC”) with a maturity of years. The RCF refinanced an EUR
400 million sustainability-linked syndicated revolving credit facility signed in January 2021 and will be used for general
corporate purposes of the Group. The RCF has two one-year extension options at the discretion of the lenders.
Capital expenditure was EUR 248 million (EUR 319 million). The largest investments for business expansion were
directed to smooth-molded fiber products in Europe, increasing capacity in North America and rolling out production
of recyclable flexible packaging. The Group’s free cash flow was EUR 216 million (EUR 321 million), supported by higher
profitability and lower capital expenditure. On the other hand, free cash flow in the comparison period was supported
by a material decrease in working capital, driven by raw material prices.
Cash and cash equivalents were EUR 317 million (EUR 348 million) at the end of December and the Group had EUR
402 million (EUR 355 million) of unused committed credit facilities available.
Total assets on the statement of financial position were EUR 4,894 million (EUR 4,665 million).
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Directors’ Report and Financial Statements 2024 | 8
Three-year program to accelerate strategy implementation and to bring MEUR
100 cost savings
On November 30, 2023, Huhtamaki announced that the company is accelerating the strategy implementation by
starting a program which is expected to materially support the profitability with efficiency improvements leading to
savings of approximately EUR 100 million over a three-year period. All cost levers are addressed including potential
restructuring to a more optimal manufacturing footprint, reducing input costs at an accelerated pace, and improving
productivity globally. The costs of the program are expected to be approximately EUR 80 million, which upon
materialization will be treated as items affecting comparability.
Huhtamaki made significant progress in the program during 2024, and expects to achieve the EUR 100 million savings
target and to complete the program ahead of the original schedule. By the end of 2024, the program generated cost
savings of approximately EUR 76 million, significantly compensating for the continued high cost inflation. Program-
related costs accounted for EUR 24 million by the end of 2024, including a positive impact from divestment of real
estate in China. The total costs of the program are expected to be below the originally estimated EUR 80 million.
Significant events after the reporting period
On January 8, 2025, Huhtamaki announced the appointment Ralf K. Wunderlich (58) as President and CEO effective
on January , 202 when the Company’s previous President and CEO Charles Héaulmé stepped down. Ralf K.
Wunderlich is based in Espoo, Finland. Charles Héaulmé is available as needed to secure smooth transition until July
2025.
Subsequent to Ralf K. Wunderlich appointed as the President and CEO, he stepped down from the Board of Directors
of Huhtamäki Oyj with immediate effect. The Board of Directors now comprise of seven members.
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Directors’ Report and Financial Statements 2024 | 9
Business review by segment
Foodservice Europe-Asia-Oceania
EUR million
2024
2023
Change
Net sales
989.6
1,037.2
-5%
Comparable net sales growth
-5%
2%
Adjusted EBIT
1
91.0
98.0
-7%
Margin
1
9.2%
9.4%
Adjusted RONA
1
10.3%
10.4%
Capital expenditure
66.3
64.0
4%
Operating cash flow
1
98.5
130.6
-25%
Items affecting comparability (IAC)
-15.1
-9.9
1
Excluding IAC.
The demand for foodservice packaging remained soft. Prices of most raw materials decreased compared to 2023.
Net sales in the Foodservice Europe-Asia-Oceania segment decreased. Comparable net sales growth was -5%, weighed
on by sales volumes and pricing. The high inflation on food products continued impacting the demand, particularly for
quick service restaurants and high-end coffee chains. Additionally, the war in the Middle East led to boycotts of certain
large customers, negatively impacting sales volumes. Net sales decreased in most markets, but particularly in Asia-
Oceania as well as Middle-East and Africa.
The impact of currency movements on the segment’s reported net sales was EUR 4 million.
The segment’s adjusted EBIT decreased due to lower sales volumes, whereas actions to improve profitability had a
positive impact.
The impact of currency movements on the segment’s reported earnings was EUR 1 million.
North America
EUR million
2024
2023
Change
Net sales
1,460.1
1,457.9
0%
Comparable net sales growth
0%
2%
Adjusted EBIT
1
203.4
187.9
8%
Margin
1
13.9%
12.9%
Adjusted RONA
1
19.6%
18.4%
Capital expenditure
83.9
121.4
-31%
Operating cash flow
1
219.5
122.2
80%
IAC in EBIT
-7.6
-0.0
1
Excluding IAC.
Demand improved from the previous year’s level. Prices of most raw materials decreased compared to 2023, with the
exception of pulp and resins.
Net sales in the North America segment remained at the previous year’s level and the comparable net sales growth was
0%. Sales volumes increased but sales prices decreased. Net sales was driven by Foodservice, while Retail remained at
the previous year’s level. Net sales decreased in Consumer Goods, despite the positive impact from ramp-up of egg
carton capacity in the Hammond, Indiana, site.
The impact of currency movements on the segment’s reported net sales was EUR -1 million.
The segment’s adjusted EBIT increased. It was driven by actions to improve profitability and increased sales volumes.
The decrease in input costs were partially offset by lower pricing.
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Directors’ Report and Financial Statements 2024 | 10
The impact of currency movements on the segment’s reported earnings was EUR -0 million.
Flexible Packaging
EUR million
2024
2023
Change
Net sales
1,322.5
1,341.0
-1%
Comparable net sales growth
1%
-9%
Adjusted EBIT
1
94.2
88.0
7%
Margin
1
7.1%
6.6%
Adjusted RONA
1
7.1%
6.5%
Capital expenditure
69.0
103.7
-33%
Operating cash flow
1
84.1
103.9
-19%
IAC in EBIT
-16.6
5.8
1
Excluding IAC.
Overall demand for flexible packaging improved, but with significant variations by market. Raw material prices decreased
compared to 2023.
Net sales in the Flexible Packaging segment decreased and comparable net sales growth was 1%. Net sales were
supported by increased sales volumes, whereas pricing had a negative impact. Net sales decreased particularly in India
and Europe but increased in South-East Asia and Oceania.
The impact of currency movements on the segment’s reported net sales was EUR -33 million.
The segment’s adjusted EBIT increased, supported by actions to improve profitability, higher sales volumes and lower
raw material costs. At the same time, labor and transportation costs increased. Adjusted EBIT improved in most markets,
but was mainly weighed on by the developments in Türkiye and India.
The impact of currency movements on the segment’s reported earnings was EUR -4 million.
Fiber Packaging
EUR million
2024
2023
Change
Net sales
363.2
343.1
6%
Comparable net sales growth
6%
7%
Adjusted EBIT
1
43.5
39.6
10%
Margin
1
12.0%
11.6%
Adjusted RONA
1
14.6%
13.7%
Capital expenditure
28.1
29.3
-4%
Operating cash flow
1
42.6
31.8
34%
IAC in EBIT
-2.2
-6.2
1
Excluding IAC.
Overall demand for fiber-based egg packaging improved, but remained soft for food-on-the-go products. The prices of
recycled fiber increased compared to 2023.
Net sales in the Fiber Packaging segment increased and the comparable net sales growth was 6%. Net sales increased
driven by sales volumes and higher sales prices. Net sales increased in most markets, driven by Europe. The impact from
avian flu in certain markets had a negative impact on demand during the year.
The impact of currency movements on the segment’s reported net sales was EUR -7 million.
The segment’s adjusted EBIT increased, driven by higher sales volumes and actions to improve profitability. Profitability
was weighed on by a weaker operational performance during the first quarter of 2024 and the lag in pricing in the third
quarter of 2024 due to higher raw material cost.
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Directors’ Report and Financial Statements 2024 | 11
The impact of currency movements on the segment’s reported earnings was EUR -1 million.
Personnel
Number of Personnel
December 31, 2024
December 31, 2023
Change
Foodservice Europe-Asia-Oceania
4,049
4,248
-5%
North America
4,300
4,040
6%
Flexible Packaging
7,446
7,681
-3%
Fiber Packaging
1,739
1,703
2%
Corporate
260
238
9%
Group
17,794
17,910
-1%
At the end of December 2024, the Group had a total of 17,794 (17,910) employees. The number of employees was
1% lower than in the comparison period, due to efficiency improvements to drive competitiveness.
Personnel by segment on December 31, 2024
Personnel by segment on December 31, 2023
Changes in management
On April 12, 2024, Huhtamaki announced that Marina Madanat, Executive Vice President, Strategy and Business
Development, and a member of the Huhtamaki Global Executive Team, decided to leave Huhtamaki to pursue other
career opportunities.
On October 3, 2024, Huhtamaki announced the appointment of Wilhelm Wolff (46) as Executive Vice President,
Strategy and Business Development and a member of Global Executive Team as of January 13, 2025. He reports to
President and CEO Ralf K. Wunderlich and is based in Espoo, Finland.
On October 18, 2024, Huhtamaki announced that Marco Hilty, President, Flexible Packaging, and member of the Global
Executive Team, decided to leave Huhtamaki for personal reasons. Marco’s last day with Huhtamaki was January 3,
2025. Hans-Peter Edelbluth (63), Vice President MEA, Flexible Packaging was appointed as Interim President, Flexible
Packaging, starting February 1, 2025.
On December 12, 2024, Huhtamaki announced the appointment of Axel Glade (55) as President, Flexible Packaging
and member of the Global Executive Team. He will join the company no later than January 1, 2026. He will report to
President and CEO Ralf K. Wunderlich and will be based in Espoo, Finland.
On January 8, 2025, Huhtamaki announced the appointment Ralf K. Wunderlich (58) as President and CEO effective
on January , 202 when the Company’s previous President and CEO Charles Héaulmé stepped down. Ralf is based
in Espoo, Finland. Charles Héaulmé will be available as needed to secure smooth transition until July 2025.
23
24
42
0
Foodservice EAO
North America
Flexible Packaging
Fiber Packaging
Corporate
24
23
43
0
Foodservice EAO
North America
Flexible Packaging
Fiber Packaging
Corporate
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Directors’ Report and Financial Statements 2024 | 12
Short-term risks and uncertainties
Decline in consumer demand, inflation in key cost items (including raw materials, labor, distribution and energy),
availability of raw materials and movements in currency rates are considered to be relevant short-term business risks
and uncertainties in the Group's operations. Economic and financial market conditions, as well as a potential geopolitical
escalation and natural disasters can also have an adverse effect on the implementation of the Group's strategy and on
its business performance and earnings.
Outlook for 2025
The Group’s trading conditions are expected to remain relatively stable during 202. The good financial position will
enable the Group to address profitable growth opportunities.
Risk review
Risk management
Risk management at Huhtamaki aims to identify potential events that may affect the achievement of the Huhtamaki’s
objectives as outlined in its 2030 Strategy. Its purpose is to manage risks to a level that the Group is capable and
prepared to accept, so that there is reasonable assurance and predictability regarding the achievement of the Group’s
objectives. The aim is also to enable the efficient allocation of resources and risk management efforts.
The Group Enterprise Risk Management (ERM) Policy defines the objectives, scope and responsibilities of risk
management. Efficient risk management ensures timely identification and assessment of opportunities and risks in the
short, medium, and long term, as well as relevant measures to manage them. Detailed risk management procedures are
described in the Group’s ERM framework and process guidelines. The overall risk management process of the Group
follows the principles of the Enterprise Risk Management (ERM) framework of Committee of Sponsoring Organizations
of the Treadway Commission (COSO), and ISO 31000 Risk Management Standard. Further, Huhtamaki has tailored its
ERM processes to meet its own needs.
To systematize and facilitate the identification of risks, they are categorized as strategic, operational and financial risks.
These categories are closely aligned with the objectives of Huhtamaki, with sustainability and compliance embedded in
all of them. Huhtamaki assesses risks in terms of their impact and the likelihood of their occurrence. A risk impact is
considered in terms of impact on the organization’s annual EBIT margin. The likelihood of a risk occurring is generally
considered in terms of the expected frequency of occurrence. To further evaluate the residual risk level when risk
controls are in place, Huhtamaki assesses the effectiveness of those controls over the impact and likelihood of the risk.
Enterprise Risk Management is supported by several specific risk assessments e.g. Double Materiality Assessment and
Climate Change analysis, as well as property risk control program.
Risk review process 2024
In 2024, businesses and Group functions identified and assessed strategic, operational and financial risks and
opportunities against the impact on the achievement of the strategic priorities and performance objectives. These risk
assessment results were consolidated to the Group level. Risk treatment actions were defined to reach acceptable risk
levels at each stage.
The acceptable risk levels associated with appropriate risk management efforts were first evaluated by the Global
Executive Team, then reviewed by the Audit Committee of the Board of Directors and finally approved by the Board of
Directors. Agreed risk management efforts will be conducted and monitored during 2025.
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Directors’ Report and Financial Statements 2024 | 13
During 2024, the key risks identified in the 2023 risk assessment process were monitored to assess their existing and
newly implemented controls and any changes in the risk level itself. Actions to manage those risks were planned and
executed at the Group and segment level and followed by the Global Risk Management function, with a focus on each
business segment’s most significant risks.
The most significant strategic risks
Macro-level uncertainties include geopolitical risks, macroeconomic risks and recession risks. Ongoing conflicts, such as
wars in Ukraine and Middle East region may expand and new conflicts may arise. Unstable political conditions and
geopolitical instability increase the uncertainties in global trade and worsen business conditions. Further, tariffs and
other trade barriers may slow down investments and economic growth in impacted geographies. Hyperinflation and
high interest rates could worsen the business conditions in some market areas. Economic downturns affect customer
and consumer behavior and purchasing power. Huhtamaki is actively monitoring the developments so that it can react
to changes relevant in its business environment.
Changes in the business environment driven by regulation and sustainability present significant risk and opportunity.
The company’s future growth and success depend on its continued ability to predict and respond to changes and its
ability to innovate and develop new sustainable products and solutions in a timely manner. Regulatory changes may
introduce material bans and other packaging related regulations, including those related to recyclability, recycled content
requirements, single-use plastics, compostability, supply chain management and extended producer responsibility
impacting packaging industry. Further, these regulatory changes include a level of unpredictability, especially in certain
geographics. To mitigate the threats, Huhtamaki is investing in new innovative and sustainable solutions. Huhtamaki is
also focused on driving an evidence-based discussion to deliver data on the value of packaging in terms of hygiene, food
safety, food availability and food waste prevention. Furthermore, Huhtamaki actively tracks early stages of regulatory
initiatives and potential regulatory changes to reflect these changes in the development and commercialization of its
products and solutions.
Lack of consistent enforcement of new regulations and major delays in customers’ sustainability commitments increase
uncertainty and risks related to investments in new innovations. Wrong timing of investments may compromise
investment payback time.
Changes in competitive landscape, in consumer and customer preferences as well as in technologies and materials
present major opportunities, but also risks for Huhtamaki. Adequate investments in research and development (R&D)
are needed to meet the future customer and consumer needs. Protection of intellectual property is an essential part of
R&D. Huhtamaki is also actively screening for strategic partnerships and merger and accquisition (M&A) opportunities
to secure a competitive advantage on new technology innovations.
To mitigate the risk of its technology and machinery becoming obsolete, inefficient or unfit for serving customer demand,
the Group continuously monitors and anticipates long-term needs and invests in new technology.
Understanding consumers enables Huhtamaki to realize business opportunities in building long-term sustainable growth
in partnership with its customers. Activities to manage the threats and seize the opportunities involve active dialogue
with the customers to develop ways to increase value and understand Huhtamaki´s competitive position,
comprehensive commercial excellence program as well as cross-functional and cross-segment collaboration at
Huhtamaki.
Large customers offer growth opportunities in developing and manufacturing new sustainable products, but
dependence on large customers may also present a risk in case significant portion of revenue comes from a small number
of customers. Losing a large customer could affect also capacity utilization.
In terms of human resources, the key risks and opportunities are identified to arise from availability of labor and talent.
The risk mitigation actions include consistent development of employee experience including employee promise, hiring
practices, onboarding, talent and leadership development and succession planning.
Operational and financial risks
There are risks and opportunities related to the ability to manage prices so that price changes are implemented in a
timely manner and with correct cost and market intelligence data. This includes the ability to pass price increases of raw
materials, energy and transportation to the price of the products. Risk management actions include ongoing monitoring
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Directors’ Report and Financial Statements 2024 | 14
of raw material and energy costs, securing cost competitiveness and focus on contract management with energy and
material escalation clauses included in customer contracts when possible.
Risks related to information security, IT infrastructure and applications are operational risks potentially impacting the
business continuity and operational effectiveness. Risks related to inefficient business processes may weaken the
competitiveness. Huhtamaki is continuously developing its IT environment including ERP systems and processes, to
enhance productivity and mitigate cyber and other business interruption risks.
Climate change affects the frequency of natural hazards, such as floods and storms. In addition to natural hazards, major
fires or disruption in supply chain may cause business interruptions. The company implements a continuous
improvement program in property risk management, designed to reduce the impact and likelihood of hazards, such as
fire, explosion, flood or storm. Huhtamaki also develops its disaster recovery and business continuity plans and allocates
manufacturing capacity to several locations to minimize the impact of a potential business interruption.
Risk related to non-compliance with laws and sanctions include risk of penalties or claims for compensation, or
indictment due to a failure to comply with applicable legislation such as anti-bribery, competition, product,
environmental or other legislation or applicable sanctions. Key risk management actions include policies and processes
to identify and mitigate the non-compliances, and training on various compliance topics.
None of the key risks identified in connection with the 2024 risk assessment is considered of a magnitude that could
not be managed or would endanger the implementation of Huhtamaki’s 2030 Strategy. When considered necessary,
appropriate risk treatment actions may also involve a risk transfer by means of insurance. The Group
maintains several global insurance programs. The need for insurance, including the adequacy of its scope and limits, is
continuously evaluated by the Global Risk Management function.
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Directors’ Report and Financial Statements 2024 | 15
Information for shareholders
Share capital, shareholders and trading of shares
Share capital and share data
2024
2023
2022
Registered share capital
1
, EUR million
366
366
366
Total number of shares
1
107,760,385
107,760,385
107,760,385
Shares owned by the Company
1
2,999,685
3,222,204
3,395,709
% of total number of shares
2.8%
3.0%
3.2%
Number of outstanding shares
1, 2
104,760,700
104,538,181
104,364,676
Average number of outstanding shares
2, 3
104,712,538
104,497,300
104,364,676
Number of shares traded
4
, million
35.0
43.4
61.7
Closing price on final day of trading, EUR
34.18
36.73
32.00
Volume-weighted average price, EUR
36.41
32.64
34.30
High, EUR
40.16
37.20
39.94
Low, EUR
32.88
28.45
26.41
Market capitalization
1, 2
, EUR million
3,581
3,840
3,340
Earnings per share, EUR
2.14
1.97
2.65
Earnings per share, diluted, EUR
2.13
1.97
2.64
Dividend per share, EUR
1.10
5
1.05
1.00
Dividend to earnings
51%
5
53%
38%
Effective dividend yield
3.2
5
2.9
3.1
Price to earnings ratio
1
16.0
18.6
12.1
Equity per share
1
, EUR
19.45
17.59
17.65
1
At the end of period.
2
Excluding shares owned by the Company.
3
Average number of outstanding shares used in EPS calculations.
4
Number of shares traded on Nasdaq Helsinki.
5
2024: Board proposal
Shareholder structure as at December 31, 2024
The number of registered shareholders at the end of December 2024 was 51,783 (53,834). Foreign ownership including
nominee registered shares accounted for 43% (42%).
Trading of shares
During the reporting period, the Company’s shares were quoted on Nasdaq Helsinki Ltd on the Nordic Large Cap list
under the Industrials sector. It was a component of the Nasdaq Helsinki 25 Index.
At the end of December 2024, the Company’s market capitalization was EUR 3,581 million (EUR 3,840 million). With a
closing price of EUR 34.18 (EUR 36.73) at the end of the reporting period, the share price decreased by 7% from the
4.
.4
42.
Finnish instuons, companies and organizaons
Households
Foreign and nomineeregistered shareholders
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Directors’ Report and Financial Statements 2024 | 16
beginning of the year. During the reporting period the volume weighted average price for the Company’s shares was
EUR 36.41 (EUR 32.64). The highest price paid was EUR 40.16 (EUR 37.20) and the lowest was EUR 32.88 (EUR 28.45).
During the reporting period, the cumulative value of the Company’s share turnover on Nasdaq Helsinki Ltd was EUR
1,268 million (EUR 1,418 million). The trading volume of approximately 35 million (43 million) shares equaled an average
daily turnover of 138,697 (173,069) shares. The cumulative value of the Company’s share turnover including alternative
trading venues, such as BATS Chi-X and Turquoise, was EUR 4,118 million (EUR 6,345 million). During the reporting
period, 69% (78%) of all trading outside Nasdaq Helsinki Ltd. (source: Refinitiv Eikon).
Resolutions of the Annual General Meeting 2024
Huhtamäki Oyj’s Annual General Meeting of Shareholders was held in Helsinki on April 2, 2024. The meeting adopted
the Annual Accounts including the Consolidated Annual Accounts for 2023, discharged the members of the Company’s
Board of Directors and the CEO from liability, and approved all proposals made to the Annual General Meeting by the
Board of Directors and the Shareholders’ Nomination Board. The Annual General Meeting also approved the
Remuneration Report for the Company’s Governing Bodies presented to it.
The Annual General Meeting resolved that an aggregate dividend of EUR 1.05 per share be paid based on the balance
sheet adopted for the financial period ended on December 31, 2023. The dividend was paid in two installments. The
first dividend installment, EUR 0.3 per share, was paid to shareholders registered in the Company’s register of
shareholders maintained by Euroclear Finland Ltd on the record date for the first dividend installment April 29, 2024.
The payment date for the first dividend installment was May 7, 2024. The second dividend installment, EUR 0.52 per
share, was paid to shareholders registered in the Company’s register of shareholders maintained by Euroclear Finland
Ltd on the record date for the second dividend installment October 1, 2024. The payment date for the second dividend
installment was October 8, 2024.
In addition, the Annual General Meeting authorized the Board of Directors to decide, if necessary, on a new record date
and a new payment date for the second dividend instalment, if regulations applicable to the Finnish book-entry system
change or otherwise so require.
The number of members of the Board of Directors was confirmed to as eight (8). Ms. Mercedes Alonso, Mr. Doug Baillie,
Ms. Anja Korhonen, Ms. Pauline Lindwall, Ms. Kerttu Tuomas, Mr. Pekka Vauramo and Mr. Ralf K. Wunderlich were re-
elected and, as a new member, Mr. Robert K. Beckler was elected as members of the Board of Directors for a term
ending at the end of the next Annual General Meeting. The Annual General Meeting elected Mr. Pekka Vauramo as the
Chair of the Board of Directors and re-elected Ms. Kerttu Tuomas as the Vice-Chair of the Board of Directors.
Subsequent to Ralf K. Wunderlich being appointed as the President and CEO, he stepped down from the Board of
Directors of Huhtamäki Oyj, as well as from the Human Resourcs and Investment Committees. The Board of Directors
now comprise of seven members.
In a meeting that took place after the Annual General Meeting, the Board of Directors resolved upon members of its
Committees. Ms. Anja Korhonen was elected as the Chair and Ms. Mercedes Alonso, Mr. Robert K. Beckler and Ms.
Kerttu Tuomas as the members of the Audit Committee. Mr. Doug Baillie was elected as the Chair and Ms. Pauline
Lindwall, Mr. Pekka Vauramo and Mr. Ralf K. Wunderlich as the members of the Human Resources Committee.
The Annual General Meeting resolved that the annual remuneration to the members of the Board of Directors will be
paid as follows: to the Chair of the Board EUR 175,000, to the Vice-Chair EUR 82,000 and to the other members EUR
67,000 each. In addition, the Annual General Meeting resolved that the annual remuneration to the Chairs and members
of the Board Committees will be paid as follows: to the Chair of the Audit Committee EUR 16,500 and to the other
members of the Audit Committee EUR 5,700 as well as to the Chair of the Human Resources Committee EUR 10,000
and to the other members of the Human Resources Committee EUR 4,000. In addition, the Annual General Meeting
resolved that EUR 1,500 will be paid for each Board and Committee meeting attended. Traveling expenses of the Board
members will be compensated in accordance with the Company policy.
KPMG Oy Ab, a firm of authorized public accountants, was re-elected as Auditor of the Company for the financial year
January 1 – December 31, 2024. Mr. Henrik Holmbom, APA, ASA, will continue as the Auditor with principal
responsibility. KPMG Oy Ab will also act as Authorized Sustainability Audit Firm of the Company and Mr. Henrik
Holmbom as the key sustainability partner. The Auditor’s and the Authorized Sustainability Audit Firm’s remunerations
will be paid against an invoice approved by the Audit Committee of the Board of Directors.
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Directors’ Report and Financial Statements 2024 | 17
The Annual General Meeting authorized the Board of Directors to resolve on the repurchase of an aggregate maximum
of 0,6,03 of the Company’s own shares. Own shares may be repurchased at a price formed in public trading on
the date of the repurchase or otherwise at a price formed on the market. The authorization also covers directed
repurchases of the Company’s own shares. The authorization remains in force until the end of the next Annual General
Meeting, however, no later than June 30, 2025.
The Annual General Meeting authorized the Board of Directors to resolve on the issuance of shares and the issuance
of options and other special rights entitling to shares referred to in chapter 10 section 1 of the Companies Act. The
aggregate number of new shares to be issued may not exceed 10,000,000 shares which corresponds to approximately
9.3 percent of the current shares of the Company, and the aggregate number of own treasury shares to be transferred
may not exceed 4,000,000 shares which corresponds to approximately 3.7 percent of the current shares of the
Company. The authorization also covers directed issuances of shares. The authorization remains in force until the end
of the next Annual General Meeting, however, no later than June 30, 2025.
Dividend proposal
On December 31, 2024, Huhtamäki Oyj’s distributable funds were EUR 1,496 million (EUR 836 million). The Board of
Directors will propose to the Annual General Meeting that a dividend of EUR 1.10 (EUR 1.05) per share be paid.
Annual General Meeting 2025
The Annual General Meeting of Shareholders (AGM) will be held on Thursday, April 24, 2025 at 11:00 (EEST) at Scandic
Marina Congress Center, Katajanokanlaituri 6, Helsinki, Finland .
Corporate Governance Statement and Remuneration Report
The Corporate Governance Statement and Remuneration Report have been issued separately and are presented in a
section of this Huhtamaki Annual Report 2024 publication. The statements are also available on the Group’s website
www.huhtamaki.com/investors.
Operating model
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Directors’ Report and Financial Statements 2024 | 18
Sustainability statement
Huhtamaki’s ambition is to become the first choice in sustainable packaging solutions. It is a key differentiator for
Huhtamaki and is at the core of its 2030 Strategy. The Group’s sustainability approach is comprehensive, covering three
pillars related to the environmental, social, and governance responsibility.
General information
General basis for preparation of the Sustainability Statement
This Sustainability Statement has been prepared in accordance with the sustainability reporting standards (European
Sustainability Reporting Standards, ESRS) referred to in Chapter 7 of the Finnish Accounting Act, and with the Article 8
of Taxonomy Regulation (EU) 2020/852. The statement contains information on Huhtamaki’s sustainability performance
in the period January 1 – December 31, 2024.
The Huhtamaki Sustainability Statement is published annually in the Directors’ Report in both Finnish and English. The
previous Sustainability Report 2023 was prepared on voluntary basis and published as a section of the Annual Report
in English only.
The reporting period for the Sustainability Statement is consistent with that of its Financial Statements. The
Sustainability Statement has been prepared on a consolidated basis. The scope of consolidation is the same as for the
Financial Statements, covering all group subsidiaries. However, for the purpose of environmental reporting only
Huhtamaki’s manufacturing locations (6) are included in the sustainability metrics reported. The non-manufacturing
locations environmental data is not material and include by way of example sales offices and warehouses. For health
and safety reporting, the figures encompass all operational sites and relevant office locations. At the end of 2024, the
Group manufactured Fiber Foodservice EAO segment’s products in 2 locations, Flexible Packaging segment’s products
in 20 locations, and North America segment’s products in locations. No significant changes in the definition of what
constitutes reporting for Huhtamaki and its upstream and downstream value chain has taken place in 2024. While
manufacturing locations were closed in Czechia, China (2) and Malaysia, their impact is assessed as insignificant.
Manufacturing sites closed during the reporting period are included in the sustainability reporting until their closing
date.
In line with the Financial Statements and other disclosures in the Sustainability Statement, the consolidation principle
used for the activity data collection, GHG emission calculations and reporting is financial control. As Huhtamaki does
not have associates, joint ventures, unconsolidated subsidiaries (investment entities) or contractual arrangements that
are joint arrangements not structured through an entity, using financial control yields the same outcome as operational
control.
The consolidation principles are discussed in greater detail in the Financial Statements.
Assessments and estimates are utilized when reporting selected sustainability metrics where exact metrics could not be
produced. This includes the capital expenditure and operating expenses reported as part of the EU Taxonomy indicators,
as well as selected energy-related metrics where the data for the full year is not available. The principles and
methodology applied for these estimates, as well as details of any specific reporting principles applied to metrics, are
presented under each topical chapter. The figures in the tables are exact, with the exception of figures where the use
of estimations make presenting rounded figures more meaningful.
The Sustainability Statement has been assured (limited assurance) by the Huhtamaki statutory auditor, KPMG Oy Ab,
an independent third party.
The Sustainability Statement has been prepared with consideration to the upstream and downstream value chain, in
addition to own operations. The assessment of impacts, risks and opportunities (IRO) covers the whole value chain. The
different value chain impacts have been considered when defining relevant targets, metrics, and actions. As examples
of value chain considerations, the greenhouse gas (GHG) target covers sources of emissions from Huhtamaki’s own
operations as well as upstream and downstream value chains. Water consumption and measurement are considered in
own operations and in upstream value chains, where water requirements of certain Huhtamaki’s operations are material.
The raw materials utilized make the impact on biodiversity relevant in both own operations as well as in the value chain.
As a final example, workers in the value chain as well as consumers and end-users in the downstream value chain are
both material topics for Huhtamaki and therefore covered within this Sustainability Statement.
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Directors’ Report and Financial Statements 2024 | 19
Value chain considerations and impacts are discussed more extensively under each topical chapter.
Huhtamaki has decided not to use the option to omit a specific piece of information corresponding to intellectual
property, know-how or the results of innovation within this Sustainability Statement.
The Group has no impending developments or matters that it would not disclose within this Sustainability Statement.
Specific circumstances applying to metrics are disclosed under the applicable topical sections where each metric is
described more in detail.
Governance
The role of administrative, management and supervisory bodies
This Sustainability Statement provides details about sustainability governance. Further information about the general
duties, composition, diversity, and experience of the administrative, management and supervisory bodies, as well as the
processes of internal control, internal audit and risk management, is available in the Corporate Governance Statement.
The Board of Directors and Committees
Huhtamaki’s Board of Directors (the Board) is the governance body with the highest decision-making authority in the
entire Group. The Board may appoint Committees in order to focus on certain responsibilities. On December 31, 2024,
the Board had two Committees: the Audit Committee and the Human Resources Committee. The Board decided on
December 11, 2024 to establish an Investment Committee with its term of office commencing on January 1, 2025. The
Board oversees sustainability related activities in the Group. The Audit Committee monitors the auditing and assurance
of the statutory sustainability reporting.
Composition and expertise of the Board
The Shareholders’ Nomination Board prepares a proposal concerning the composition of the Board to be presented to
the General Meeting of Shareholders. When preparing its proposal, the Nomination Board takes into account the
independence requirements under the Finnish Corporate Governance Code adopted by the Securities Market
Association, the results of the annual performance assessment of the Board, the principles on diversity of the Board,
and other applicable rules and regulations. According to the Articles of Association of the Company, the Board consists
of a minimum of six and a maximum of nine members.
The principles on diversity of the Board are defined in the Charter of the Shareholders’ Nomination Board. According
to the Charter of the Nomination Board, the Board must have sufficient expertise, competence and experience related
to Huhtamaki’s line of business. The composition of the Board shall reflect the requirements set by the Company’s
operations and development stage. The Board must specifically have sufficient collective knowledge and competence
in:
•
matters pertaining to the Company’s line of business and its business operations
•
management of an internationally operating public limited company of corresponding size
•
group and financial management
•
strategy as well as mergers and acquisitions
•
internal control and risk management
•
corporate governance.
The selection of the members of the Board is based on candidates’ background and competence to understand
Huhtamaki’s current and future markets, strategy, employees and customers, including a sound understanding of
financials and business dynamic. The Board must as a whole have combined experience in different markets, geographies
and important topics such as digitalization and notably sustainability. The most important nomination criteria for the
candidates of the Board are competency, knowledge, personal qualities and integrity. Both genders must be represented
in the Board. In accordance with the Finnish Companies Act, the Company has an objective according to which at least
40% of the Board members represent the underrepresented sex. These principles on diversity are central to achieving
objectives concerning the diversity and ensuring that the Board composition corresponds to the needs of Huhtamaki.
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Directors’ Report and Financial Statements 2024 | 20
The objectives concerning the diversity of the Board have been achieved well. According to the Shareholders’
Nomination Board, the composition of the Board comprises qualifications defined in the principles on diversity of the
Charter of the Nomination Board, that were valid at the time of the election of the Board members, in a balanced way.
At the Annual General Meeting in 2024 eight members representing seven different nationalities were elected to the
Board. In December 31, 2024, the age structure of the Board members was 58–71 years. Four Board members were
female (50%) and four male (50%). The Board members have international experience in different roles in global
companies operating in the different businesses and geographical market areas that are important for the Group. Board
members hold or have held management positions and positions of trust in both listed and unlisted companies. All Board
members have a university level degree, mainly in technology or finance. All of the Board members are non-executive.
Employees or other workers of the Group are not presented in the Board. The Board considers all Board members
independent of the Group and independent of the significant shareholders of the Group.
The Board has members with extensive work experience and significant positions of trust within sustainability matters.
Further, the continued expertise and knowledge of the Board in relation to sustainability matters is ensured by regular
information and updates provided to the Board by the executive management. The Board also has regular access to
request updates and inquire any details from Huhtamaki’s employees with expertise in sustainability matters.
Roles and responsibilities in relation to sustainability matters
In addition to the powers vested in the Board by the Finnish Companies Act and the Articles of Association of the
Company, the essential duties and working principles of the Board are defined in the Company’s Charter of the Board
of Directors. The responsibilities and duties of the Board include, among other things, organizing the Company's
management and directing the Company's business and strategy. The Board approves the targets and guiding corporate
policies for sustainability, and outline sustainability principles regarding the Group’s strategy. The Board approves the
Sustainability Statement as part of the Directors’ Report. In line with Huhtamaki Enterprise Risk Management Policy,
the Board reviews and guides the risk management activities of the Group, including sustainability impacts,
dependencies, risks and opportunities. It approves the risk level that Huhtamaki can and is prepared to accept and the
extent to which risks and impacts have been identified, addressed, and followed up.
The Human Resources Committee of the Board validates Huhtamaki Global Sustainability and Safety Index (GSSI) targets
each year.
The Audit Committee of the Board monitors and assesses the Company’s reporting system and processes, including the
sustainability target progress. The Audit Committee assists the Board by monitoring and assessing the effectiveness and
efficiency of the risk management systems. Further details of the Board’s and Audit Committee’s role are given under
the topical section related to Governance (G1).
The Global Executive Team (GET) is responsible for supervising that material Group policies and guidelines are
maintained and properly followed, including policies related to the management of impacts, risks and opportunities
through allocating adequate resources as well as adopting and deploying risk management procedures. In addition, the
GET reviews the Group’s and the segments’ risks and accepts the related risk levels, and the extent to which these risks
have been properly identified, recognized, and addressed by the Group and the segments, for the approval of the Board.
The Executive Vice President (EVP), Sustainability and Communications is a member of the GET reporting to the
President and CEO. The EVP, Sustainability and Communications leads the Global Sustainability function and chairs the
Sustainability Committee formed among the members of the GET. The EVP, Sustainability and Communications ensures
that the Board, the Audit Committee and the GET are well informed on sustainability related topics. The Global
Sustainability function follows a systematic procedure to inform the GET on sustainability matters. The Board, the Audit
Committee and the GET receive sustainability reports on a quarterly basis. The Sustainability function is responsible for
ensuring that the controls and procedures used to assess and manage environmental issues are aligned with and
integrated into Huhtamaki’s overall strategy, risk management, innovation and reporting processes.
The Global Risk Management function organizes, instructs, supports, supervises and monitors risk management activities
on an ongoing basis. It reports the results of the risk management process to the Audit Committee annually. The
processes and controls related to the management of impacts, risks and opportunities are part of the broader Enterprise
Risk Management (ERM) control framework.
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Directors’ Report and Financial Statements 2024 | 21
Leadership teams at global, segment and local levels are responsible for ensuring that risk management is appropriately
implemented in their field of responsibility.
Information provided to and sustainability matters addressed by Huhtamaki’s administrative, management and
supervisory bodies
The Board approves the guiding corporate policies for sustainability and outline sustainability principles regarding the
Group’s strategy. Regular updates on progress on Huhtamaki’s sustainability ambitions are given to the Board
throughout the year.
In addition to discussing the Group’s overall sustainability agenda, the Board specifically monitored and steered the
progress of updating the Group’s sustainability strategy. The Board also focused on various sustainability-driven
innovations and investments during the year. The Audit Committee received regular updates on the progress of the
Group’s CSRD readiness program.
The Board is provided with a sustainability dashboard as part of quarterly result updates, which tracks Huhtamaki’s
progress towards sustainability ambition for 2030. The metrics included in the dashboard have been defined based on
previous materiality assessments and the sustainability topics identified as material. These material sustainability topics
include material use related to renewable or recycled material as well as certified fiber content, use of renewable
electricity, recycling targets related to non-hazardous waste, GHG emissions, waste to landfill, coverage of water
management plans at Huhtamaki sites, and health and safety indicators.
The Board receives regular updates on business development, innovation projects and risks. A summary report on risks
and opportunities is submitted annually to the Audit Committee and the Board.
The Human Resources Committee of the Board is responsible for overseeing specific organizational and human
resources matters that are further deliberated by the Board. The Committee received quarterly updates on safety
performance and attrition as well as an annual updates on the employee engagement survey. The Committee also
reviewed progress made on the people strategy pillars and annual people processes such as performance, remuneration
and talent.
The Board annually approves a rolling 3-year Strategic plan which is based on the existing long-term strategy. The annual
operating plan (AOP) is reviewed and approved by the Board based on the 3-year strategic plan. Strategic investments
are approved on a case-by-case basis. The Board ensures execution of the strategy through regular review and
operational visits to the business units.
Integration of sustainability-related performance in incentive schemes
There are no incentive schemes in place for the Board.
The incentive model for the President and CEO contains as one element the Huhtamaki Global Sustainability and Safety
Index (GSSI). The index tracks the Group’s progress towards its 2030 sustainability ambition. KPIs within the index are
linked to the Group’s sustainability strategy and include the following specific targets and metrics:
•
Renewable or recycled material use
•
Renewable electricity consumption
•
Non-hazardous waste recycled
•
Certified of recycled fiber use
•
Water intensity
•
Solvent consumption
•
Total recordable injury frequency rate
Climate targets and greenhouse gas (GHG) emission reductions were not directly considered in the GSSI for 2024, but
partially captured through the target of renewable electricity consumption. The sustainability-related performance
formed 20% of the overall variable remuneration criteria for the President and CEO during 2024.
The GSSI model and the related targets and yearly metrics goals are deliberated annually by the Human Resources
Committee and approved by the Board.
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Directors’ Report and Financial Statements 2024 | 22
Further details of the Huhtamaki incentive model can be found in the Remuneration Report.
Statement on due diligence
Mapping of the information provided in the Sustainability Statement about the due diligence process
Risk management and internal controls over sustainability reporting
The foundation of the sustainability reporting control environment lies with the Huhtamaki values – Care, Dare, Deliver.
They form the core of the culture and way of working as well as providing discipline and structure for the operations.
They are formalized in the Huhtamaki Code of Conduct, policies, instructions and guidelines.
The overall risk management process of the Group follows the principles of the Enterprise Risk Management (ERM)
framework of the Treadway Commission (COSO), and ISO 31000 Risk Management Standard. Huhtamaki has further
tailored its ERM processes to meet its own needs. In terms of risk management and sustainability reporting, internal
reporting is based on properly documented data and risk analysis with an adequate audit trail. The report is also subject
to external assurance.
The defined operating principles for internal control apply also to sustainability reporting. The Board and the President
& CEO are responsible for adequate internal control. The Audit Committee monitors the effectiveness and efficiency
of the internal control systems and the correctness of the sustainability reporting.
Internal control for sustainability reporting includes a process aiming at ascertaining the reliability of the Sustainability
Statement. The internal control framework for the Huhtamaki sustainability reporting is based on the identification,
analysis and prioritization of risks. Risk prioritization takes into consideration the potential impact on the accuracy,
completeness and reliability of the sustainability reporting. The responsibility for arranging the internal controls belongs
to the executive management of the Group and is being carried out by the whole organization.
Huhtamaki’s Global Sustainability function is responsible for preparation of the sustainability reporting. The risks
identified for sustainability reporting include inaccurate, incomplete, or misleading reporting. To mitigate the risks a
control catalogue has been defined outlining how sustainability reporting information is collected, processed, and
reported so that the sustainability information presented is accurate, relevant and complete.
The Group’s non-financial reporting handbook includes definitions, procedures, frequency, and other relevant
instructions applicable throughout the sustainability reporting process. The interpretation and application of
sustainability reporting standards are centralized in the Global Sustainability function which maintains the non-financial
reporting handbook and communicates these throughout the Group. The Global Sustainability function also supervises
compliance with the non-financial reporting handbook. The reporting standards are uniformly applied in the whole
Group and unified Group reporting systems are used.
Core elements of Due Diligence
Paragraph / sections in the Sustainability
Statement
a) Embedding due diligence in governance, strategy
and business model
General information
Environmental, Social, Governance
information
b) Engaging with affected stakeholders in all key steps
of the due diligence
General information
Environmental, Social information
c) Identifying and assessing adverse impacts on people
and the environment
General information
Environmental, Social information
d) Taking action to address adverse impacts on people
and the environment
Environmental, Social information
e) Tracking the effectiveness of these efforts
Environmental, Social information
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Directors’ Report and Financial Statements 2024 | 23
Group sustainability reporting process, including roles and responsibilities for both unit level reporting and Global
Sustainability function, has been defined and implemented. The process promotes governance of the sustainability
reporting by including segregation of duties and required approvals. In addition, it promotes accuracy and completeness
of data by providing standardization and consistency in sustainability reporting.
The Global Sustainability function and the network of business segment and business unit sustainability specialists
perform the sustainability reporting, and manage and control the sustainability reporting process in line with the control
catalogue. Control testing is part of Group Finance department’s annual duties. The efficiency of controls is reported in
line with the Group’s defined principles for internal control, and the findings are used to improve the efficiency and
accuracy of the sustainability reporting process.
Strategy, business model and value chain
Huhtamaki strategy and sustainability
Huhtamaki’s ambition is to be the first choice in sustainable packaging solutions. The Group’s strategy is focused on
four pillars, Scale core business, Develop innovation, Drive world-class competitiveness and Develop strategic
capabilities. As a publicly listed company, Huhtamaki is committed to creating value for all its stakeholders.
At Huhtamaki, sustainability is an integral part of the Group’s strategy and everyday work. As a global solutions provider
in food and everyday necessities packaging, Huhtamaki is fully committed to sustainability as one the strongest
transformative opportunities for stakeholders and customers. The Group’s strategy is based on the belief that Huhtamaki
can only be successful in the long term by creating value both for shareholders and for society.
Huhtamaki’s significant product groups consist of paperboard conversion packaging, molded fiber packaging and flexible
packaging. There have been no material changes in the product portfolio during 2024.
Huhtamaki’s customer base is varied, and contains among others food and beverage companies, quick service and fast
casual restaurants, foodservice operators, fresh produce packers and retailers.
Huhtamaki operates globally, with 36 countries and 101 operating locations around the world.
The Group employs 17,794 employees. The people are employed in Huhtamaki geographical areas as follows:
Huhtamaki is committed to making packaging more circular with a lower carbon footprint and embedding sustainability
in all products. Huhtamaki’s strategic ambitions for 2030 embed sustainability considerations that are relevant for all
product ranges:
•
All products are designed to be recyclable, compostable or reusable
•
Over 80% of material used are renewable or recycled
•
All fiber is sourced from certified sources
•
Over 90% of non-hazardous waste is recycled or composted
•
100% of electricity used is renewable
•
Carbon-neutral production
The current product range reflects the Groups ambition and strategic goal to be the leader in sustainable packaging. All
Huhtamaki products use natural resources as a substrate, and it is a priority to identify the most efficient solutions to
minimize the environmental impact of the products. Huhtamaki does constant work on innovation and product
development to ensure the product related sustainability targets are met. Huhtamaki works together with its customers
and suppliers to find fit-for-purpose packaging solutions, that also enable customers to meet their sustainability goals.
Area
Number of employees
Europe
6,570
Asia-Pacific
4,895
Americas
4,609
Middle East and Africa
1,720
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Directors’ Report and Financial Statements 2024 | 24
Sustainability is a strategic enabler to deliver the Group’s 2030 strategy. To drive this sustainability transition, Huhtamaki
has initiated a number of critical projects:
Designing for circularity
means that all Huhtamaki products are aimed to be designed to be recyclable, compostable, or
reusable and circularity is considered in material selection and product structure. Regarding the choice of materials or
the structure of the packaging, the safety and quality of the final product is always secured.
Securing a sustainable supply chain for fiber
is a key part of the sustainability ambition, and Huhtamaki is committed to
sourcing 100% of its wood fiber from recycled or certified sources. Where the use of virgin fiber is required, certified
materials are aimed to be sourced. Huhtamaki is continuously updating and developing its supply chain due diligence
practices to cover a wider range of business partners across the full ESG agenda.
To improve waste management
, Huhtamaki partners with stakeholders across the value chain. Through participation in
organizations such as Europen and Ceflex, the Group aims to influence the recycling infrastructure development in
Europe. Huhtamaki also contributes to concrete initiatives to mitigate waste in many different ways, such as The Cup
Collective in Europe and partnership with Sporting Kansas City in the North America segment. These initiatives are
described more in detail in the relevant chapters of the Sustainability Statement.
To reduce GHG emissions
from own operations, increasing the share of renewable electricity is critical. Huhtamaki is
targeting to increase the share through long-term Virtual Power Purchase Agreements (VPPA) with global renewable
energy developers. In addition to own operations, Huhtamaki is increasingly engaging with suppliers and business
partners to reduce also the emissions stemming from the supply chain and facilitate the reuse, recycling, and recovery
of the Group’s products at the end of their life cycle.
Business model and value chain
Huhtamaki’s operations are dependent on natural resources as raw material for the production of its products. The
Group works with a large number of suppliers globally to ensure availability and high quality of raw materials. Within
the upstream value chain sustainability matters are an important consideration, notably in terms of sourcing certified
materials and ensuring commitment to the Code of Conduct for Huhtamaki Suppliers.
Within the downstream value chain, the majority of Huhtamaki’s products serve the needs of food and beverage
companies, quick service and fast casual restaurants, foodservice operators, fresh produce packers and retailers. A small
number of products are sold directly to consumer users.
Interests and views of stakeholders in the strategy and business model
Huhtamaki is committed to collaborating with stakeholders from across the value chain as this is a key component in
achieving the Group’s sustainability ambitions. The dialogue with stakeholders both supports the alignment of strategies
and actions to the expectations of various stakeholder groups and gives valuable information about the possible risks
and opportunities related to Huhtamaki business. Sustainability is at the core of Huhtamaki’s 2030 Strategy, and hence
1
Directors’ Report and Financial Statements 2024 | 25
the views of stakeholders are a key input to the strategic planning process. The Huhtamaki strategy and sustainability
ambitions cover many of the issues that stakeholders are most concerned about, and their feedback is utilized to inform
business decisions. These issues are discussed at length under the topical chapters related to environmental and social
topics later in this Sustainability Statement.
Stakeholder engagement should create value for all parties, and therefore, Huhtamaki does not take a ‘one size fits all’
approach. As a global company, Huhtamaki adapts the engagement depending on the needs of the stakeholders, which
may include, for example, specific language and cultural requirements. Also, different groups of stakeholders may also
have differing needs: customers and investors need information in a different format than Group’s employees.
Communities around the Group’s manufacturing units require contact with local management, whereas global
stakeholders require contact with segment teams or global functions. The Group’s engagement with stakeholders is
guided by Huhtamaki’s values and Code of Conduct and aligns with its commitment to human rights.
Huhtamaki’s own workforce is a key group of affected stakeholders and provides valuable insights into potential impacts,
risks and opportunities related to operations. The findings from the stakeholder engagements with own workforce as
well as Huhtamaki’s commitment to improve its human rights due diligence in alignment with the expectations of the
United Nations Guiding Principles on Business and Human Rights (UNGP) are considered when strategic people
priorities and related targets and action plans are set. The progress towards the Group’s strategic targets related to own
workforce is monitored regularly, and targets are reviewed annually as part of the strategic planning process. The
strategy is communicated to Huhtamaki’s workforce regularly, to ensure common understanding on strategic priorities,
and emphasize employees’ opportunity to have an impact on the company’s long-term targets and performance.
Huhtamaki is a global company with a complex supply chain. The company is committed to respecting human rights
throughout its value chain. Huhtamaki understands that its business decisions may have a material impact on value chain
workers, which in turn may present risks to Huhtamaki’s business. In cases of severe human rights violations, Huhtamaki
could face serious reputational damages that might affect the Group’s attractiveness to employees, investors or
customers. Worker injuries or social unrest could also cause supply chain disruptions that could potentially impact the
ability to deliver orders to customers, impairing the customer relationship and Huhtamaki’s reputation as a trusted
supplier.
The Group is working to continuously improve its processes and practices to take the rights of workers in the value
chain into account in line with the UNGPs and other guidelines, including at a strategic business level.
Huhtamaki’s ongoing efforts to address material potential negative human rights impacts are embedded in the
company’s 2030 strategy and further explained in Section ESRS S2 Workers in the value
chain
on page 86.
Regarding the interests and views of consumers and end-users, Huhtamaki focuses on sustainable and affordable
packaging, product safety and functionality, and the reduction and substitution of plastic. Huhtamaki ensures that the
views and interests of consumers and end-users are actively considered and integrated into sustainability practices
through specific measures. Huhtamaki provides labels and end-of life guidance and instruction to consumers and end-
users of its packaging products. Huhtamaki also actively engages in joint projects related to product development to
innovate and enhance the packaging solutions. These collaborative efforts allow Huhtamaki to continuously improve its
products to better meet consumer needs and environmental standards.
The stakeholder engagement results and the stakeholder interests in relation to sustainability matters feed into
Huhtamaki strategy and business planning processes and have been reported to the Board as part of these discussions.
Huhtamaki key stakeholders, their interests and approach for dialogue are summarized below.
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Directors’ Report and Financial Statements 2024 | 26
Key stakeholders
Main interests and views
Form of dialogue
Customers
•
Product safety and functionality
•
Low-carbon, sustainable and
circular packaging solutions,
substitution of plastics
•
Collaboration in the innovation
for sustainable products
•
Ambitious sustainability targets
and action
•
Voice of Customer satisfaction
survey
•
Stakeholder platforms such as the
Think Circle
•
Joint projects e.g. related to
product development
•
Customer sustainability
questionnaires and requests for
information
•
Customer interactions
Employees and
contingent
workers
•
Occupational health and safety:
wellbeing and labor conditions.
•
Engagement and enablement:
training and career growth,
diversity, equity and inclusion.
•
Ambitious sustainability targets
and action
•
Interaction with supervisor
•
Continuous dialogue through
townhall meetings, roundtable and
focus group discussions etc.
•
Annual performance reviews and
development discussions
•
Connect employee engagement
survey
•
Speak Up whistleblowing channel
•
European Works Council (EWC)
•
Health and Safety Committees
Shareholders and
investors
•
Competitive next generation
sustainable packaging solutions
•
Profitable growth, delivery on
strategy and sustainability
ambitions
•
Annual General Meeting and
Capital Markets Day
•
Investor meetings, discussions and
requests for information
•
Sustainability and transparency
questionnaires, such as Carbon
Disclosure Project (CDP)
•
Investor presentations, reports and
other material
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Directors’ Report and Financial Statements 2024 | 27
Material impacts, risks and opportunities and their interaction with strategy and business model
Huhtamaki connuously follows the most recent developments and trends in the field of sustainability, including
changes in legislaon and views from stakeholders.
The material impacts, risks and opportunities identified and assessed
over the course of the double materiality assessment completed in 2024 are presented below. Further details of the
impacts, risks and opportunities are presented in each topical section.
Consumers
•
Sustainable and
affordable packaging
•
Product safety and
functionality
•
Substitution and
reduction of plastic
•
Labels/end-of-life
guidance/instructions on packaging
products
•
Joint projects, e.g. related to product
development
•
Speak Up whistleblowing channel
Suppliers
•
Fair terms and
conditions
•
Long-term
collaboration
•
Collaboration on
sustainable
innovations
•
ESG due diligence tool
•
Supplier screenings, (self-
assessments, questionnaires and
third-party audits
•
Speak Up whistleblowing channel
•
Dialogue with sourcing and quality
managers, including negotiations and
ongoing commercial discussion
Policy makers, public
authorities
•
Science-based
climate and
environmental
regulation
•
Food safety and
hygiene
•
1-to-1 meetings, roundtable
discussions, seminars
•
Technical working groups
•
Consultations and requests for
information
Industry associations,
trade unions
•
Predictable business
environment
•
Science-based
climate and
environmental
regulation
•
Working groups and meetings
•
Consultations and requests for
information
Non-Governmental
Organizations
•
Science-based
climate and
environmental
regulation
•
Food safety and
hygiene
•
Community
engagement
•
Just transition to a
circular economy
•
Joint projects and cooperation, e.g.
WasteAid
•
1-to-1 meetings and seminars
Communities near
Huhtamaki
manufacturing units
•
Job opportunities
•
Health and safety in
the communities
•
Direct contact with local managers
•
Community involvement projects
•
Partnerships with educational
institutions
•
Speak Up whistleblowing channel
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Directors’ Report and Financial Statements 2024 | 28
Topic
Material impact, risk or opportunity
Environmental
Climate change: Energy (E1)
Negative impact due to the energy intensive nature of Huhtamaki
operations, and a risk due to increased costs of energy
Climate change mitigation (E1)
Negative impact from GHG emissions from Huhtamaki operations
Climate change adaptation (E1)
Financial risks from natural events such as floods, storms, heat,
drought, and volatile forest yields, and transition risk from potential
regulatory material restrictions and bans
Water withdrawals and water use (E3)
Negative impact through water withdrawal in production, both from
surface and ground water.
Water consumption (E3)
Negative impact due to water consumption in production.
Water stress and water availability (E3)
Financial risk from reduced water availability leading to price increases
and limited supply
Biodiversity & Ecosystems: Impacts and
dependencies on ecosystem services
(E4)
Negative impact on ecosystem services due to sourcing of fiber-based
materials
Biodiversity & Ecosystems:
Direct impact drivers of biodiversity loss
(E4)
Negative impact on biodiversity due to raw material sourcing
Resource use & circular economy:
Resources inflows, including resource
use and microplastics (E5)
Negative impact from exploitation of natural resources for sourcing
under a business as usual approach, with a moderate financial impact
Resource use & circular economy:
Resource outflows related to products
and services (E5)
Negative impact from material outflows due to improper end-of-life
treatment, with a moderate financial impact
Resource use & circular economy:
Waste (E5)
Negative impact mitigated by product design allowing reducing waste.
Financial effects are assessed as moderate.
Resource use & circular economy:
Food waste (E5)
Positive impact from reduction of food waste through enhanced
packaging
Resource use & circular economy:
Circular business models and product
innovations (E5)
Financial opportunity in circularity from recyclable and compostable
products, with a high positive financial effect.
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Directors’ Report and Financial Statements 2024 | 29
Social
Own workforce:
Health and safety (S1)
Positive impact from offering a safe and healthy workplace and
conversely a negative impact in event on neglect towards safety
Own workforce:
Chemical safety (S1)
Negative impact to workforce from the chemicals used in Huhtamaki
production
Own workforce:
Gender equality and equal pay for work of
equal value (S1)
Positive impact from enhanced employee engagement and conversely
a negative impact in case of failure to provide equal pay
Own workforce:
Social dialogue (S1)
Positive impact in engagement and motivation from actions taken to
facilitate social dialogue
Own workforce:
Training and skills development (S1)
Positive impact on Huhtamaki operations from enhanced skills and
improved productivity
Own workforce:
Secure employment (S1)
Positive impact from enhanced engagement and productivity by
offering a secure employment
Own workforce:
Diversity (S1)
Positive impact of increased innovation and creativity from fostering
an inclusive and diverse workplace
Own workforce:
Availability of skilled workforce and talent
(S1)
Financial risk from shortages in skilled workforce
Workers in the value chain:
Health and safety (S2)
Negative impact in value chain locations with risk of suppliers without
health and safety procedures
Workers in the value chain:
Freedom of association, the existence of
works councils and the information,
consultation and participation rights of
workers (S2)
Negative impact in value chain locations with limitations to freedom of
association
Workers in the value chain:
Collective bargaining, including rate of
workers covered by collective agreements
(S2)
Negative impact in value chain locations with limitations to collective
bargaining
Workers in the value chain:
Chemical safety (S2)
Negative impact to value chain operators from the chemicals used in
Huhtamaki production
Workers in the value chain:
Social dialogue (S2)
Negative impact of value chain locations with limited social dialogue
Consumers and end-users:
Food safety (S4)
Positive impact from the enhanced food safety from Huhtamaki
products and a financial opportunity from promoting food safety
through Huhtamaki products
Consumers and end-users:
Food availability and affordability (S4)
Positive impact and a financial opportunity due to Huhtamaki products
enhancing availability of affordable food products
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Directors’ Report and Financial Statements 2024 | 30
No current financial effects arising from the risks and opportunies were idenfied during the reporng period.
The list of impacts, risks and opportunies (IRO’s) includes
both potenal and actual as well as posive and negave
impacts across the enre value chain. The adjacent image shows the IRO’s mapped according to the Huhtamaki value
chain.
The identified material impacts, risks and opportunities feed into the sustainability strategy and sustainability-related
targets that Huhtamaki has defined. These targets are an input to the annual budgeting process and are integrated in
the Group’s incentive models.
The identified material impacts and their relation to Huhtamaki business model are presented in the table below:
Governance
Ethical business conduct and corporate
culture (G1)
Positive impact through Huhtamaki's commitment to upholding
corporate values, culture, and business conduct that builds trust and
engagement in and outside Huhtamaki
Prevention of corruption and bribery
(G1)
Positive impact from Huhtamaki's robust practices of preventing
corruption and bribery
Environmental
Social
Governance
Climate Change Mitigation: GHG emissions reduction
Energy
Climate Change Adaptation: Transition risks: Increased prices of raw materials, material bans, reputational risks
Climate Change Adaptation: Physical risks: Climate related hazards (floods, storms, extreme heat, drought)
Water stress, Water availability
Biodiversity: Impacts and dependencies on ecosystem services and biodiversity loss
Resources inflows, including resource use, raw material sourcing and management
Resource outflows related to products and services, packaging, material residuals
Waste, waste management
Circular economy: renewable raw materials, product innovation
Working conditions: Health and Safety, Secure employment, Working time
Corruption and bribery
Corporate culture
Food waste
Equal treatment: Diversity and Equal payment
Food availability and safety
Sourcing
(raw materials, suppliers,
transportation)
Production
(Huhtamaki own operations)
Customers and distribution
(logistics, processing to final
products, distribution)
End-use and end-of-life
(consumption,
end-of-life treatment)
Chemical safety
Availability of skilled workforce
Climate change adaptation,
mitigation, energy
As an industrial company, Huhtamaki emits substantial amount
of greenhouse gas (GHG) emissions in its own operations and
throughout its value chain. Climate is one of the priority topics
in ESG ratings the Group’s external stakeholders (e.g. clients,
investors) are interested in. Especially transition risks pose
financial risks to Huhtamaki.
Water withdrawals, water stress
and consumption
Huhtamaki and its value chain uses significant amounts of
water. Water withdrawals affect biodiversity and surrounding
communities. It is an important topic in ESG ratings and interest
of external stakeholders.
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Directors’ Report and Financial Statements 2024 | 31
Description of the processes to identify and assess material impacts, risks and opportunities
Huhtamaki regularly updates its materiality assessment, and d
uring 2024, Huhtamaki completed its first double
materiality assessment (DMA) in accordance with the European Sustainability Reporting Standards (ESRS).
Materiality assessment process
The assessment consisted of three main project phases and related sub-phases. The first phase involved identifying
relevant ESG impacts, risks, and opportunities. This included creating a long list of relevant ESG impacts, risks, and
opportunities through desktop analysis and internal and external stakeholder interviews. These interviews aimed to
identify Huhtamaki’s activities, business relationships, sustainability context, and engage stakeholders. The preliminary
longlist was then validated by Huhtamaki subject matter experts in a workshop, with the objective of narrowing down
the list by excluding topics deemed irrelevant for Huhtamaki.
Biodiversity and ecosystems:
Direct
impact drivers of biodiversity loss,
Impacts and dependencies on
ecosystem services
A significant share of Huhtamaki’s raw materials is based on
wood fiber, thus the impact and dependency on biodiversity
and ecosystems is evident. External stakeholders are likely to
be interested in this topic. It is one of Huhtamaki’s priority
topics in ESG ratings
Resource inflows, outflows, waste
Entity specific:
Food waste, Circular
business models
Huhtamaki’s business is based on raw material processing into
disposable packaging products. Regulation may impose
requirements on the use of different raw material types in
packaging, which could pose financial risks. Circular business
models associated with new business concepts create financial
opportunities, hence making this topic material.
Own workforce
Working conditions:
Secure
employment, Social dialogue, Health
and safety
Equal treatment and opportunities:
Gender equality and equal pay,
Training and skills development,
Diversity
Entity specific:
Chemical safety,
Availability of skilled workforce and
talent
Own workforce is essential asset for achieving business
objectives. A diverse workforce and inclusive working
environment help the Group understand and meet the needs
of customers and communities. Employee training can improve
productivity and efficiency, leading to better business
performance. Providing a safe work environment is a
fundamental responsibility of the Group. The materiality of the
topic is evident.
Workers in the value chain
Working conditions:
Social dialogue,
Freedom of association etc.,
Collective bargaining etc., Health
and safety
Entity specific:
Chemical safety
Wellbeing and safety of workers in the value chain are
associated with improved productivity and quality leading to
improved business performance. Health and safety of workers
in the value chain impact Huhtamaki’s reputation. It is an
important topic in ESG ratings.
Consumers and end-users:
Entity specific:
Food safety, Product
safety and quality
Entity specific
: Food availability and
affordability
Product safety and quality are key to Huhtamaki’s value
proposition. External stakeholders (investors) have expressed
their interest toward the topic.
Business conduct
Corporate culture, Corruption and
bribery - Prevention and detection
including training
Huhtamaki’s values – Care, Dare, Deliver – form the
foundation for the corporate culture and way of working.
Huhtamaki conducts business also in countries where the risk
of corruption and bribery is elevated.
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Directors’ Report and Financial Statements 2024 | 32
The second phase focused on assessing the materiality of ESG impacts, risks, and opportunities. This was achieved by
prioritizing Huhtamaki’s impacts, risks, and opportunities in two workshops with a broad group of internal stakeholders.
The impacts, risks, and opportunities were then scored by Huhtamaki experts.
The final phase involved the validation of material topics and threshold setting. The preliminary results were reviewed
with the GET. The results were finalized based on the GET feedback and validation by the segments.
Climate-related material impacts, risks and opportunities
Huhtamaki assessed both climate-related physical and transition risks as well as opportunities in own operations and
along the upstream and downstream value chain.
When identifying actual and potential future GHG emission sources during the double materiality assessment,
Huhtamaki utilized its existing GHG emission calculations and climate risk assessment. Huhtamaki operates in an energy
intensive industry and therefore emits GHG emissions and has a negative impact on climate. Huhtamaki has, however,
devised a transition plan to mitigate these negative impacts, and aims to create positive ones through initiating projects
to increase renewable electricity production. Huhtamaki calculates its GHG emissions including its own operations
(Scope 1 and 2) as well as upstream and downstream value chain (Scope 3) and has identified its main emission sources.
Huhtamaki addresses the main emission sources through science-based emission reduction targets and action plans.
Climate-related scenario analysis
Climate-related transition- and physical- risks were assessed through three different climate-scenarios; IPCC’s .°C
(RCP 2.6) and 4°C (RCP .) as well as the International Energy Agency’s (IEA) Net zero Emissions by 200 -roadmap.
The scenarios are aligned with TCFD recommendations and leading scientific understanding, and therefore Huhtamaki
believes the chosen scenarios cover its plausible risks and uncertainties. The timeframe that Huhtamaki used for the
scenarios is until 2050.
The critical climate related assumptions disclosed in the Financial Statements are compatible with the scenarios, and at
the end of the reporting period climate-related matters did not have material impact.
The IPCC 1.5°C (RCP 2.6) and IEA Net Zero Emissions by 2050 scenarios aim to limit global warming to 1.5°C by
significantly reducing greenhouse gas emissions through rapid adoption of renewable energy, enhanced energy
efficiency, and carbon capture technologies. The key driving forces are technological innovation, strong policies, global
cooperation, and strong consumer demand towards less carbon intensive products. For Huhtamaki, these scenarios
emphasize the importance of investing in sustainable practices, complying with emerging climate policies, and leveraging
technological innovations to reduce operational costs and enhance market competitiveness.
The scenarios are relevant to the resilience of Huhtamaki's business strategy because they represent the desired future
to keep the global warming at the level established in the Paris agreement, and therefore aligned with the latest
international agreement on climate change. The key constraints of the IPCC 1.5°C (RCP 2.6) scenario involve the need
for substantial investments in renewable energy and carbon capture technologies, along with strong international
climate policies. Achieving the necessary rapid transition also faces challenges from technological, economic, and social
barriers that require coordinated global cooperation and significant behavioral changes.
The 4°C (RCP 8.5) scenario is relevant to the resilience of Huhtamaki's business strategy as the scenario represents the
business-as-usual high greenhouse gas emissions trajectory scenario and highlights the impacts of physical climate
change risks if e.g. political willingness to combat climate change declines. The scenario helps to identify the assets and
business activities that are at the highest risk of physical climate change impacts and to develop adaptation plans. The
key forces and drivers considered in the 4°C (RCP 8.5) scenario include lack of political willingness to cease fossil fuel
expansion and high cost of capital to e.g. increase renewable energy capacity, high population growth increasing energy
consumption and significant deforestation and urbanization reducing natural carbon sinks as well as unwillingness to
pay for less carbon intensive products. These forces and drivers are relevant to Huhtamaki as they shape the
macroeconomic trends, policy assumptions, energy usage and mix, and technological advancements that directly impact
the Group’s operations, costs, and strategic planning. The key constraints in the RCP . scenario include limited
resource availability for fossil fuel extraction, increasing costs over time, and potential irreversible ecosystem damage.
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Directors’ Report and Financial Statements 2024 | 33
Based on previously conducted climate risk assessment, Huhtamaki identified climate-related hazards (floods, storms,
heat, drought) as well as transition risks and opportunities over the short-, medium- and long-term and screened whether
its assets and business activities may be exposed to these hazards or climate-related transition events. High-level
assessment of the extent to which its assets and business activities exposure and sensitivity to the identified climate-
related hazards is based on historic exposure and anticipated future development based on likelihood and frequency of
the hazards in alternative climate scenarios. Geospatial coordinates (such as Nomenclature of Territorial Units of
Statistics- NUTS for the EU territory) specific to Huhtamaki’s locations and supply chains have not been considered.
Financial risks from identified transition events were assessed at high-level based on their likelihood and magnitude,
with these events expected to be relevant in the medium- and long-term. Huhtamaki has identified that a significant
share of its Scope 1 emissions represents locked-in emissions coming from assets utilized in production processes. To
replace or retrofit these assets requires financing creating a transition risk. Similarly, the related emissions are at risk of
increasing carbon pricing. Huhtamaki has begun to prepare a transition plan to mitigate the locked-in emissions and
related transition risks. Similarly, part of Huhtamaki’s business activities are incompatible with the requirements for
Taxonomy-alignment.
Pollution-related impacts, risks and opportunities
During the double materiality assessment impacts, risks and opportunities for pollution were identified and assessed.
The assessment was done following the overall DMA methodology as described below, with assessment on the segment
level. Site-level assessment or consultation with affected communities in relation to pollution were not conducted.
Water-related material impacts, risks and opportunities
Huhtamaki recognizes the critical role that water plays in its operations and value chain. To identify both current and
potential future water-related impacts, risks, and opportunities, Huhtamaki uses the Aqueduct Water Risk Atlas provided
by the World Resources Institute (WRI). This tool helps determine the water-related risks at Huhtamaki's manufacturing
sites and fiber supply plants, including whether these sites are in areas experiencing water stress.
In addition to the physical risks related to the quantity of water, the WRI’s Aqueduct Water Risk Atlas assesses the
physical risks related to water quality, and the related regulatory and reputational risk level. Huhtamaki uses these
assessment results in combination with the information obtained with the water usage and discharge data to assess the
water-related risks thoroughly.
Huhtamaki conducted catchment vulnerability assessments to evaluate overall business risks at sites with high water
risk, considering water supply quantity and quality, local municipal infrastructure, regulations, and governance. These
assessments provide insights into the water basins, validate risk ratings, and help prioritize next steps for Huhtamaki.
Huhtamaki’s double materiality assessment did not include consultations with affected communities on sustainability
assessments of shared water resources and affected basins.
Biodiversity and ecosystems related material impacts, risks and opportunities
When identifying actual and potential future biodiversity and ecosystems related impacts, risks and opportunities during
the double materiality assessment, Huhtamaki utilized the results from its existing assessment conducted using the
ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool. Huhtamaki used this tool to determine the
potential dependencies on ecosystem services and the potential contribution to the impact drivers of nature loss related
to paper packaging production and the sourcing of primary raw materials for this production. At the time of the
assessment, the tool did not include information on plastic packaging production, which is consequently excluded from
1
Directors’ Report and Financial Statements 2024 | 34
the analysis. The potential risks associated with these impacts and dependencies were assessed as part of the DMA
process. The risk scanning included physical, transition and systemic risk types.
Huhtamaki has also analyzed the proximity of its sites to biodiversity-sensitive areas. More information is found under
the topical section for Biodiversity and Ecosystems. Huhtamaki’s double materiality assessment did not include
consultations with affected communities on sustainability assessments of shared biological resources and ecosystems.
Resource Use and Circular Economy
The process to identify actual and potential future resource use and circular economy related impacts, risks and
opportunities followed the general process of the double materiality assessment. The process did not include
consultations with affected communities.
Methodology and assumptions of the Double Materiality Assessment
The process for assessing impact materiality consisted of several phases. Initially, the context landscape was identified,
including activities, business relationships, sustainability context, and stakeholders. While Huhtamaki has processes in
place to understand the impacted stakeholders, these impacted stakeholder groups were not separately consulted
during the DMA process. The Context landscaping phase was followed by identifying actual and potential negative and
positive impacts through engagement with relevant stakeholders and experts. The materiality of these impacts was then
assessed for both own operations and the entire value chain globally. Material sustainability matters were determined
based on adopted thresholds.
Following this, the assessment of financial materiality was conducted. This involved identifying dependencies on natural
and social resources as sources of financial effects and determining the materiality of these dependencies. Material
dependencies were classified as risks or opportunities, and material risks and opportunities were determined based on
appropriate thresholds reflecting the likelihood of occurrence and potential size of effects.
The following time horizons were applied during the DMA as defined in ESRS:
•
short-term (less than one year),
•
medium-term (one to five years),
•
long-term (more than five years).
Impacts, risks, and opportunities were scored based on their severity (scope, scale, and remediability) and likelihood of
occurrence. Both severity and likelihood were rated on a scale from 0 to 5, and the overall score was calculated by
multiplying these two factors, resulting in a score range between 0 and 25. Similarly, the financial effect size and
likelihood of risks or opportunities were rated on a scale from 0 to 5. The assessment of financial effects relied on the
Huhtamaki ERM methodology, that considers sustainability risks as an integral part of risk management. In addition,
Huhtamaki has more specific risk assessment methods e.g. compliance risk assessments to increase focus on
sustainability related risks and support ERM. The overall score was calculated by multiplying these two factors, also
resulting in a score range between 0 and 25. The assessment was done on a relative and qualitative scale.
Decision-making process for materiality
The process for making the final decision on material topics involved several key steps. Initially, topics were prioritized
by scoring the topics. Following this, a qualitative assessment was conducted to select material topical standards. These
standards included climate change, water and marine resources, biodiversity and ecosystems, resource use and circular
economy, own workforce, workers in the value chain, consumers and end-users, and governance. For each material
topical standard, a threshold score of 15 was used to determine the selection of material items.
The GET validated the material topics and threshold. Thereafter the results were reviewed by the Audit Committee
(AC). In accordance with the Finnish Companies Act, the Audit Committee monitors the process carried out to identify
the information reported in accordance with the sustainability reporting standards.
Huhtamaki double materiality assessment will be updated during 2025, and the methodology will be revised based on
the experiences from the assessment and emerging market practices.
1
Directors’ Report and Financial Statements 2024 | 35
Environmental information
EU Taxonomy
The EU Taxonomy is a green classification system that translates the EU’s climate and environmental objectives into
criteria for specific economic activities for investment purposes. It recognizes as environmentally sustainable those
economic activities that make a substantial contribution to at least one of the EU’s six environmental objectives, while
at the same time not significantly harming any of these objectives and meeting minimum social safeguards. The six
environmental objectives that are published as a Delegated Act address emission-intensive economic activities with the
aim of guiding development towards sustainable production.
Nuclear and fossil gas related activities
Taxonomy-eligible activities
An economic activity is considered Taxonomy-eligible if it is referenced by the Taxonomy and has the potential to enable
achieving at least one of the six environmental objectives: 1) Climate change mitigation, 2) Climate change adaptation,
3) Sustainable use and protection of water and marine resources, 4) Transition to a circular economy, 5) Pollution
prevention and control, and 6) Protection and restoration of biodiversity and ecosystems.
Huhtamaki has assessed its eligibility and alignment with the six environmental objectives by screening the economic
activities in the Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139), the Complementary
Climate Delegated Act (Commission Delegated Regulation (EU) 2022/1214), the Environmental Delegated Act
(Commission Delegated Regulation (EU) 2023/2486), and the amendments to the Climate Delegated Act (Commission
Delegated Regulation (EU) 2023/2485). Through this assessment Huhtamaki has evaluated that the Group’s activities
in producing plastic packaging goods fall under objective 4: Transition to circular economy (1.1).
The eligible activities have been defined with reference to the Statistical classification of economic activities in the
European Community (NACE) and the suggested EU Packaging and Packaging Waste Regulation. In relation to the
material content, the NACE classification 22.2 (Manufacture of plastic products) and 22.22 (Manufacture of plastic
packaging goods) include products where the primary material is plastic, which Huhtamaki interprets as products with
over 50% plastic raw material content by weight. The definition of packaging goods has been aligned with the Packaging
and Packaging Waste Regulation, and hence also encompasses cups, bowls, plates and their lids in addition to the bags,
sacks and pouches listed in the NACE definition. Huhtamaki has such products in all three business segments.
The determination of eligible Turnover, CapEx and OpEx have been done as follows:
•
Review of the Huhtamaki product portfolio to identify eligible products
•
Extract the turnover for the eligible products
•
Identify CapEx and OpEx associated with the manufacturing of the eligible products
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations
that produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of
heat generation facilities that produce heat/cool using fossil gaseous fuels.
NO
1
Directors’ Report and Financial Statements 2024 | 36
•
CapEx and OpEx associated with both eligible and non-eligible products have been allocated to the eligible
products based on turnover
•
Double counting is avoided by ensuring that turnover, CapEx and OpEx are only reported once to the taxonomy
activity and only to one environmental objective
Huhtamaki’s interpretation of eligible activities as well as the definition of the CapEx and OpEx KPIs under EU Taxonomy
has been amended, and the indicators reported for 2023 and 2024 in this Sustainability Statement are in accordance
with the new definition.
Taxonomy-aligned activities
Regulation (EU) 2020/852, article 3, sets out criteria that an economic activity must meet to qualify as environmentally
sustainable (Taxonomy-aligned):
•
Substantially contribute to the environmental objectives
•
Do no significant harm (DNSH) to the other five objectives
•
Comply with minimum safeguards covering social and governance standards
Taxonomy-alignment of the identified eligible activity has been assessed against Annex II of the Environmental
Delegated Act.
The stringent criteria relevant to the economic activity of manufacture of plastic packaging goods are such that
Huhtamaki is not currently able to show alignment with this environmental objective. Notably, the requirement that at
least 35% of packaging products by weight consist of recycled post-consumer material for non-contact sensitive
packaging, and at least 0 for contact sensitive packaging is not yet reached within Huhtamaki’s current plastic product
portfolio. This is due to the following reasons:
•
Huhtamaki’s flexible packaging and other plastic packaging serve mainly the food sector for which using
mechanically recycled plastics in packaging is not allowed due to food safety concerns
•
Currently, the market does not have sufficient supply for chemically recycled plastics that could be used for food
packaging.
Huhtamaki continues to develop its Taxonomy-related reporting and will take action in coming years towards achieving
the technical screening criteria in order to report alignment with the EU Taxonomy environmental objectives.
Taxonomy reporting principles
Turnover
Turnover under EU Taxonomy is equal to consolidated net sales as reported in the consolidated statement of income,
amounting to EUR 4,126.3 million (EUR 4,168.9 million in 2023).
Capital Expenditure
CapEx under EU Taxonomy is the sum of additions in tangible assets, intangible assets excluding goodwill and customer
relations, and right-of-use assets from both investments and acquisitions resulting from business combinations.
Additions in tangible assets and intangible assets are reported as capital expenditure in the consolidated statement of
cash flows amounting to EUR 247.9 million (EUR 318.7 million in 2023). CapEx related to right-of-use assets is reported
in note 3.4 of the consolidated financial statements, amounting to EUR 35.0 million (EUR 36.9 million in 2023). There
were no additions related to acquisitions during 2023 and 2024.
Operating Expenditure
OpEx under EU Taxonomy is defined as the direct non-capitalized costs related to maintenance and servicing of
assets, including costs for repairs and maintenance, research and development, short-term leases and other similar
costs, amounting to EUR 211.2 million (EUR 199.7 million in 2023). The OpEx definition is different from the
operating expenditure reported in the consolidated statement of income.
1
Directors’ Report and Financial Statements 2024 | 37
Financial year 2024
Year
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1)
Code
(2)
Turnover
(3)
Proportion
of Turnover,
year N (4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptatio
n (6)
Water (7)
Pollution
(8)
Circular
Economy
(9)
Biodiversit
y (10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptatio
n (12)
Water (13)
Pollution
(14)
Circular
Economy
(15)
Biodiversit
y (16)
Minimum
Safeguard
s (17)
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
Turnover,
year
N-1
(18)
Category
enabling
activity
(19)
Category
transitiona
l
activity
(20)
MEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally
sustainable
activities
(Taxonomy-aligned)
Turnover of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
Of which enabling
Of which transitional
Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of plastic packaging goods
CE1.1
1,401.7
34%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
35%
Turnover
of
Taxonomy-eligible
but
not
environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
1,401.7
34%
35%
Turnover of Taxonomy-eligible activities (A.1+A.2)
1,401.7
34%
35%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
2,724.5
66%
65%
TOTAL
4,126.3
100%
100%
Turnover KPI
1
Directors’ Report and Financial Statements 2024 | 38
Financial year 2024
Year
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1)
Code
(2)
CapEx (3)
Proportion
of
CapEx,
year N (4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptatio
n (6)
Water (7)
Pollution
(8)
Circular
Economy
(9)
Biodiversit
y (10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptatio
n (12)
Water (13)
Pollution
(14)
Circular
Economy
(15)
Biodiversit
y (16)
Minimum
Safeguard
s (17)
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
CapEx, year
N-1 (18)
Category
enabling
activity
(19)
Category
transitiona
l
activity
(20)
MEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally
sustainable
activities
(Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
Of which enabling
Of which transitional
Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of plastic packaging goods
CE1.1
85.7
30%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
30%
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
85.7
30%
30%
CapEx of Taxonomy-eligible activities (A.1+A.2)
85.7
30%
30%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
197.3
70%
70%
TOTAL
283.0
100%
100%
CapEx
KPI
1
Directors’ Report and Financial Statements 2024 | 39
Financial year 2024
Year
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1)
Code
(2)
OpEx (3)
Proportion
of OpEx, year
N (4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptatio
n (6)
Water (7)
Pollution
(8)
Circular
Economy
(9)
Biodiversit
y (10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptatio
n (12)
Water (13)
Pollution
(14)
Circular
Economy
(15)
Biodiversit
y (16)
Minimum
Safeguard
s (17)
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.) OpEx,
year
N-1
(18)
Category
enabling
activity
(19)
Category
transitiona
l
activity
(20)
MEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally
sustainable
activities
(Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
Of which enabling
Of which transitional
Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of plastic packaging goods
CE1.1
55.5
26%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
26%
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
55.5
26%
26%
OpEx of Taxonomy-eligible activities (A.1+A.2)
55.5
26%
26%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
155.7
74%
74%
TOTAL
211.2
100%
100%
OpEx KPI
1
Directors’ Report and Financial Statements 2024 | 40
ESRS E1 Climate change
Transition plan for climate change mitigation
Embedding transition plan in business strategy and financial planning
Huhtamaki has a transition plan to mitigate climate change, which is integrated into its overall business strategy and
financial planning. The company strategy emphasizes sustainable innovation in collaboration with customers, and aims
to achieve world-class operational performance globally. Huhtamaki invests in developing sustainable products that are
recyclable, compostable, or reusable, have a lower carbon footprint than their predecessors, and are made from
responsibly sourced materials. To drive global competitiveness, Huhtamaki focuses on enhancing operational efficiency,
including improving energy efficiency, reducing water and material consumption, and minimizing waste. These strategic
initiatives help mitigate Huhtamaki’s greenhouse gas emissions from its own operations, as well as across its upstream
and downstream value chain.
Sustainability investments are embedded within the Group’s financial plan and are integrated into the strategic plans (3-
year planning) of each Huhtamaki segment. Furthermore, Huhtamaki’s climate transition plan is featured in its global
short-term incentive plan, as detailed in the
Integration of sustainability-related performance in incentive schemes
section on page 21. This plan includes key performance indicators (KPIs) such as the share of renewable electricity and
the share of renewable or recycled materials that contribute to reductions in Scope 2 and Scope 3 emissions.
Science-based emission reduction targets
Huhtamaki is committed to contributing to climate change mitigation by implementing its GHG emission reduction
targets which are validated by the Science-based targets initiative (SBTi). Huhtamaki’s existing science-based near-term
target (SBT) for Scopes 1 and 2 is aligned with the well-below 2-degree (WB2C) trajectory. Huhtamaki’s Scope 3
absolute emission reduction target is aligned with a 2-degree trajectory. The targets cover the main emission sources
from Huhtamaki’s own operations as well as upstream and downstream value chain.
Huhtamaki’s Scope and Scope 2 combined science-based emission reduction target is 27.5% reduction by 2030
compared to the 2019 base year. Additionally, Huhtamaki is committed to achieving 100 % renewable electricity usage
by 2030 which contributes to Scope 2 emission reductions. Huhtamaki has two SBTi validated targets for Scope 3. For
category 1, purchased goods and services, Huhtamaki has defined as a target for supplier engagement that 70% of
suppliers, by spend, will have science-based targets by 2026. For end-of-life treatment of sold products (category 12)
Huhtamaki has set a 13.5 % absolute emission reduction target by 2030 from the 2019 base year.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
the defined climate-related actions or transition plan. However, smaller financial resources and other resources such as
dedicated personnel from the Group, segments and sites are designated to support the implementation efforts.
In 2024, Huhtamaki started reassessing its climate targets with the aim of developing a long-term transition plan to
ensure compatibility with limiting global warming to 1.5°C in line with the Paris Agreement. Huhtamaki aims to update
its near-term climate targets during 2025. As part of the target update process and development of a longer-term
transition plan, Huhtamaki is also currently assessing the required actions, investments and funding.
Transition plan, decarbonization levers and progress
Huhtamaki’s transition plan to achieve its science-based emission reduction targets encompasses multiple
decarbonization levers aimed at reducing emissions across Scope 1, Scope 2, and Scope 3.
For Scope 1 and Scope 2, the primary levers to reduce fossil fuel consumption include improving energy efficiency, fuel
switching, electrification, the use of renewable electricity, and advancing technology development. Since the 2019 base
year, Huhtamaki has decreased its Scope 1 and 2 emissions primarily by increasing the proportion of renewable
electricity in its operations. Main actions taken and planned in 2024, include further increasing the share of renewable
electricity and enhancing energy efficiency.
1
Directors’ Report and Financial Statements 2024 | 41
For Scope 3, the primary decarbonization levers include engaging with suppliers, increasing the renewable and recycled
content in products, and establishing efficient recycling systems. Reducing Scope 3 emissions necessitates collaboration
across the entire value chain with key suppliers, customers, industry groups, and research institutions. This collaborative
effort is essential for reducing product emissions, innovating sustainable materials and packaging designs, and promoting
collection and circularity to minimize end-of-life emissions. Utilizing recycled materials reduces the dependence on virgin
raw materials, which typically require more energy and resources to produce.
Huhtamaki's Scope 3 emissions have fluctuated in line with production volumes. In 2024, Huhtamaki implemented a
targeted supplier engagement approach, reaching out to selected key suppliers in three specific sourcing categories who
had not yet committed to SBTi targets. Additionally, the company actively pursued opportunities to increase the use of
Post-Industrial Recycled (PIR) and Post-Consumer Recycled (PCR) materials, aiming to reduce greenhouse gas emissions
associated with plastics.
Huhtamaki’s current transition plan and the targets associated with it were approved by the Huhtamaki Board of
Directors and Global Executive Team in 2019.
Locked-in emissions
Huhtamaki's Scope 1 greenhouse gas (GHG) emissions are partly derived from production processes that rely on assets
associated with locked-in GHG emissions, primarily using natural gas. These locked-in emissions do not jeopardize
Huhtamaki’s current emission reduction targets.
Achieving long-term alignment with the 1.5°C climate target requires modifying these production processes by either
replacing or retrofitting existing assets with alternatives such as electrification or fuel switching. In 2024, Huhtamaki
initiated the development of a comprehensive long-term transition plan to manage its GHG-intensive and energy-
intensive assets and products.
Taxonomy Regulation and Paris-aligned Benchmarks
To align with the economic activity "manufacture of plastic packaging goods", Huhtamaki aims to increase the use of
post-consumer recycled (PCR) raw materials. Elevating the level of PCR content will enhance the sustainability of
Huhtamaki's products by reducing waste and GHG emissions across the value chain. Additionally, Huhtamaki is
developing technical capabilities to assess the overall sustainability impacts of its products through Lifecycle Assessment
(LCA) across its product portfolio, ensuring compliance with the Do No Significant Harm criteria.
In 2024, the financial resources allocated to these activities were below the financial materiality threshold. However,
Huhtamaki plans to increase investments and efforts in these initiatives during 2025-2026.
Huhtamaki’s approach to the EU Taxonomy has been detailed earlier in
EU Taxonomy
section on page 35.
Huhtamaki is not excluded from the Paris-aligned Benchmarks as the Group is not involved in environmentally harmful
practices as specified in Article 12 of the Commission delegated regulation (EU) 2020/1818.
1
Directors’ Report and Financial Statements 2024 | 42
Material impacts and risks related to climate change adaptation, mitigation and energy
Cl
imat
Climate scenario analysis scope and methodology
In 2023, Huhtamaki utilized a qualitative climate scenario analysis to assess the resilience of its strategy and business
model. Huhtamaki performed the assessment under two scenarios aligned with the Task Force on Climate related
Financial Disclosures (TCFD) recommendations; with the first scenario involving limiting global warming to 1.5 °C (RCP
2.6) and the second exploring the effects of global warming up to 4°C (RCP 8.5). The potential effects of climate change
were assessed in the short- (<3 years), medium- (3-10 years) and long-term (>10 years) aligning the time horizons with
Material impact or risk
Description
Applicability
Climate change adaptation
Risk
Physical risks
related to
extreme weather
events
The main physical risks to Huhtamaki and its upstream value chain
include floods, storms, heat, drought, and volatile forest yields, all of
which pose financial risks. Floods and storms threaten Huhtamaki’s
property, while heat and drought can disrupt production by affecting
employee health and water supply. Drought also increases forest-fire
risk, and warmer winters may increase the impact of pests and
diseases on forestry yield leading to higher costs of raw materials.
Extreme weather conditions threaten the continuity of Huhtamaki’s
sourcing, logistics, and distribution operations.
Value Chain &
Own
operations
Risk
Transition risks
related to
regulatory
changes and
increased prices
Regulatory changes may introduce material bans (e.g. plastic) or
requirements for increased recycled content in products (e.g. fiber or
plastic).
Restrictions on forest utilization to enhance carbon capture
and sinks could impact raw material supply and drive-up prices.
Additionally, market prices for raw materials and energy may rise due
to higher demand for bio-based materials and renewable energy, or
as a result of carbon pricing.
Value Chain
Climate change mitigation
Negative
impact
Generation of
greenhouse gas
emissions
Huhtamaki emits GHG emissions (Scope 1, 2, 3) to the
atmosphere, creating a negative impact. Huhtamaki can reduce
its GHG emissions (Scope 1 and 2) by developing more energy
efficient manufacturing processes, increasing the share of
renewable energy and by electrification and switching to low
carbon fuels in its own operations. To reduce value chain
emissions (Scope 3), Huhtamaki may increase renewable and
recycled content in products, engage with suppliers offering low
carbon intensity raw materials and participate in building
efficient recycling systems.
Value Chain
& Own
operations
Energy
Negative
impact
Energy
consumption in
Huhtamaki’s
production
process
Huhtamaki operates in an energy intensive industry, using
significant amount of primary and secondary energy in the
production process of its products. Huhtamaki's energy mix
choices (renewable or non-renewable) and energy saving
measures have direct impact on its GHG emissions.
Value Chain
& Own
operations
Risk
Increased energy
costs
Risk of increased costs of (renewable) energy influences
Huhtamaki's expenses and potential energy shortages impact
production. Prices of renewable energy may impact Huhtamaki's
ability to reach its climate targets.
Value Chain
& Own
operations
1
Directors’ Report and Financial Statements 2024 | 43
the climate and business scenarios considered for determining material physical and transition risks, in addition to setting
GHG emissions reduction targets. The scope covers Huhtamaki’s own operations and upstream and downstream value
chain. All material physical risks and transition risks have been included in the analysis.
Huhtamaki has made some critical assumptions about how the transition to a lower-carbon and resilient economy will
affect its surrounding macroeconomic trends, energy consumption and mix, and technology deployment assumptions.
Huhtamaki assumes enhanced government policies supporting renewable energy and increased carbon pricing to reduce
GHG emissions and limit global warming to 1.5°C. Incentives and carbon pricing are expected to make renewable energy
investments more attractive. Global development in cleantech, carbon capture, renewable energy technologies, and
energy efficiency is anticipated by 2030. Growing consumer demand for sustainable packaging and stable economic
conditions supporting sustainability investments are also assumed. Uncertainties include the pace of technological
advancements, market trends, regulatory changes, and consumer preferences. Potential resistance to packaging changes
and shifts in government policies could impact initiatives. Constraints include limited resource availability for large-scale
renewable energy deployment, high upfront capital investments, and operational challenges in retrofitting facilities, and
sourcing sustainable raw materials at scale.
Huhtamaki conducted qualitative estimates of the anticipated financial effects from material physical and transition risks
during its Double Materiality Assessment. Huhtamaki considered its mitigation actions and resources while conducting
the climate scenario analysis.
In the 1.5C scenario, physical climate change risks such as flooding, droughts and extreme weather conditions impacting
Huhtamaki’s operations are expected to remain moderate in short- and medium-term. Risks are expected to increase in
long-term. Huhtamaki continuously develops the operations footprint to adapt to new business environments. In terms
of risks, transition risks take precedence in the 1.5C scenario in short-, medium- and long-term. Regulatory changes may
impact packaging businesses for example through the introduction of material bans or requirements for the increased
share of recycled content. Furthermore, these regulatory changes include a level of unpredictability especially in certain
geographics. In addition to increasing regulation, market prices of raw materials and energy may rise due to increased
demand for biobased materials and renewable energy. Disruption in raw material or energy supply is considered one of
the key operational risks to the Group. The scenario aligns with critical assumptions in Huhtamaki’s strategy to develop
products that are made with biobased or recycled raw materials. Investments directed towards sustainable product
innovation required to realize the strategy, are approved in the financial planning and reviewed as part of the financial
reporting.
In the 4C scenario, the predominant risks are associated with physical climate change risks. Primary physical risks include
floods, storms, heat and drought, posing risks to Huhtamaki’s property, employees and supply chains. In particular, floods
and storms pose threats to Huhtamaki’s property. Heat and drought may lead to interruptions in production due to the
impacts on employees’ health and interruptions in water supply. Drought intensifies the risk of forest fires and milder
winters are likely to amplify the impact of pests and diseases on forestry yield in the northern areas. Extreme weather
conditions may lead to disruptions in supply chains, affecting the transportation of both raw materials and finished
products. Huhtamaki’s operations are well diversified globally so physical climate change impacts are not regarded as
posing significant financial risks to the Group. Huhtamaki assumes that physical climate change impacts will develop
over a longer time horizon, leaving time to adapt, and if needed, redeploy, repurpose or decommission existing assets.
Huhtamaki’s resilience to climate change
Huhtamaki’s resilience is based on its sustainability driven strategy in both climate scenarios. Huhtamaki has adjusted
its strategy and business model to consider climate change over the short-, medium- and long-term by setting targets
to constantly increase the share of renewable electricity, operational efficiency as well as the share of renewable or
recycled content in its products.
The Group has sufficient access to funding to ensure adequate financial resources under all foreseeable circumstances.
Detailed information on the Group's access to affordable funding can be found in the Liquidity and Refinancing Risk
section of Note 5.7, 'Management of Financial Risks,' in the consolidated financial statements. Huhtamaki’s strategy
focuses on sustainable packaging solutions to meet future needs. For the medium- and long-term, the company is
actively developing its offerings and technology to address future challenges and mitigate risks. New product
innovations contribute to the circular economy, creating opportunities to combat climate change and respond to
1
Directors’ Report and Financial Statements 2024 | 44
evolving customer preferences. Huhtamaki is investing in strategic capabilities to drive its transformation journey; more
details are available in the Actions related to own workforce section. Huhtamaki closely monitors anticipated regulatory
changes globally and collaborates with key clients to develop products that meet their needs. The company also tracks
fluctuations in raw material and energy prices, employing active price management to mitigate associated risks.
The areas of uncertainties of the resilience analysis include the pace of technological advancements, market trends,
regulatory changes, and consumer preferences. Potential client resistance to packaging changes and shifts in
government policies could impact initiatives. Constraints include limited resource availability for large-scale renewable
energy deployment, high upfront capital investments, and operational challenges in retrofitting facilities and sourcing
sustainable raw materials at scale.
Policies related to climate change mitigation
Huhtamaki’s Group Environmental Policy outlines its ambitions related to climate change mitigation and renewable
energy. The policy addresses material impacts and risks related to climate change mitigation, as well as energy efficiency
and renewable energy. The Group Environmental Policy outlines the parameters and expectations for operations now
and in the future, to achieve the emissions reduction and energy targets. Risks related to climate change adaptation are
not specifically addressed in Huhtamaki's policies.
The Group Environmental Policy is designed and managed in collaboration with the relevant global functions. It is
approved by the Global Executive Team (GET) and applies to all Huhtamaki entities and operations globally, as well as
to all external workforce under Huhtamaki direction in the Group’s premises. The Group Environmental Policy is publicly
available on the Huhtamaki website.
The Code of Conduct for Huhtamaki Suppliers further outlines Huhtamaki’s climate-related expectations for its
suppliers. This includes complying with applicable environmental laws and regulations, making efforts to reduce
environmental impacts, including energy use, striving to minimize environmental impacts including making efforts to
reduce greenhouse gas emissions in their own operations and value chain, and not sourcing materials that contribute to
deforestation of high conservation value areas. The Code of Conduct for Huhtamaki Suppliers is further described in
the
Policies related to value chain
workers
section.
Actions related to climate change mitigation and adaptation
Climate is among the key focus areas of the 2030 sustainability agenda and Huhtamaki is committed to driving the
transition to a low carbon and circular economy.
Activities in 2024:
Mitigation and energy, own operations (Scope 1 + 2):
Use of renewable energy
: Huhtamaki has signed Virtual Power Purchase Agreements (VPPA) which cover approximately
80% of Scope 2 emissions in Europe starting from 2024. In addition, Huhtamaki continued to increase its share of
renewable electricity at the local level across sites to align with its 100% renewable electricity by 2030 target.
Energy efficiency
: Huhtamaki has high growth ambitions (net sales 5% p.a., as outlined in its 2030 strategy), which
makes delivering an absolute emissions reduction challenging. The growth is partly balanced by continuously improving
energy efficiency at the local level across sites.
Mitigation and energy, upstream and downstream value chain (Scope 3):
Recycled materials (upstream value chain)
: To reduce Scope 3 emissions, Huhtamaki continued its collaboration with
customers to enhance product development, focusing on increasing the share of recycled content in packaging.
The
effectiveness of these actions is tracked with circularity target related to the share of renewable and recycled materials,
see section Targets related to resource use and
circular economy.
End-of-life management (downstream value chain)
: To address packaging end-of-life challenges, Huhtamaki has
engaged in global initiatives on promoting recycling and composting across the entire value chain, including industry
1
Directors’ Report and Financial Statements 2024 | 45
partners and policymakers. These collaborative initiatives related to circularity are described in more detail in the circular
economy section.
Supplier engagement:
In 2024, Huhtamaki took a focused supplier engagement approach and reached out to select
uncommitted key suppliers in three sourcing categories, representing 5% of spend to discuss science-based targets.
Adaptation, own operations and upstream and downstream value chain:
Adaptation
: Physical climate risks related Huhtamaki’s own operations are assessed as part of the property risk control
program and mitigation actions are conducted locally. To ensure business continuity, Huhtamaki continuously develops
its manufacturing footprint and adapts to changes in the business environment, including physical and transition risks
of climate change globally, in short-, medium- and long-term.
Planned activities:
Mitigation and energy, own operations (Scope 1 + 2):
Use of renewable energy
: Huhtamaki has planned to continue increasing the share of renewable electricity at the local
level across sites from 2025 onwards.
Energy efficiency
: Huhtamaki continues to improve energy efficiency at the local level across sites from 2025 onwards.
Mitigation and energy, upstream and downstream value chain (Scope 3):
Recycled materials:
Huhtamaki continues exploring opportunities to increase the use of Post-Industrial Recycled (PIR)
and Post-Consumer Recycled (PCR) materials to reduce greenhouse gas emissions from plastics.
End-of-life management:
Huhtamaki continues to collaborate with value chain partners to ensure recycling and
composting in the downstream value chain.
Supplier engagement:
Huhtamaki continues actively collaborating with its suppliers to encourage them to establish their
own science-based targets by 2026.
Adaptation, own operations and upstream and downstream value chain:
Adaptation:
As in 2024, the same adaptation related activities are planned to be continued from 2025 onwards in
Huhtamaki’s own operations and value chain globally in the short-, medium- and long-term.
The estimated emission reduction impact of the reported Scope 1 and 2 actions, primarily driven by the new VPPA
reducing Scope 2 emissions, is
80.000
tCO2eq in 2024. The estimated impact of reported Scope 3 activities in 2024 is
insignificant. Huhtamaki has not quantitatively estimated the emission reduction impact of the reported planned actions
from 2025 onwards.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
the defined climate-related mitigation, energy or adaptation actions. However, smaller financial resources and other
resources, such as dedicated personnel from the Group, segments, and sites are designated to support the
implementation efforts. The Group’s access to funding is sufficient to ensure adequate financing resources to perform
the defined mitigation actions for Scope 1, 2, and 3 in all foreseeable circumstances (see more in Financial Statements
Note 5.7 Management of financial risks). The indicators published earlier in the Sustainability Statement under the EU
Taxonomy relate to Huhtamaki’s taxonomy-eligible business operations (manufacture of plastic packaging goods), and
hence do not reconcile with the development activities presented in this chapter, that are not considered part of the
Group’s taxonomy-eligible activities in their entirety.
1
Directors’ Report and Financial Statements 2024 | 46
Targets related to climate change mitigation
Target
Scope
2030 target
2024 performance
27.5 % reduction in absolute Scope 1 and
Scope 2 emissions by 2030 from 2019 base
year
Base year: 2019
Baseline value: 764,000 tCO2eq
Own operations
554,000 tCO2eq
1
461,537 tCO2eq
(-40 %)
13.5% reduction in absolute Scope 3
emissions from end-of-life treatment of sold
products from a 2019 base year
Base year: 2019
Baseline value: 1,045,000 tCO2eq
Own operations,
downstream value
chain
903,000 tCO2eq
2
941,000 tCO2eq
(-10 %)
70% of purchased goods and services
suppliers, by spend, will have science-based
targets
3
by 2026
Base year: 2022
Baseline value: 26%
Upstream value chain
70 %
47 %
100% renewable electricity by 2030
Base year: 2021
Baseline value: 19.6%
Own operations
100 %
59.5 %
Carbon-neutral production by 2030
4
Base year: 2020
Baseline value: 709,000 tCO2eq
Own operations,
outside value chain
0 tCO2eq
5
461,537 tCO2eq
1
REF 1.5C target value: 411,000 tCO2eq
2
REF 1,5C target value: 562,000 tCO2eq
3
Have set or committed to set science-based targets
4
Progress against the target described further below
5
0 tCO2eq for combined Scope 1 and 2 emissions covering remaining emissions after own reduction actions with high quality carbon
credits
change mitigation
Huhtamaki has set climate-related targets to mitigate climate change through reducing emissions in its own operations
and value chain aligned with its Group Environmental Policy. Additionally, Huhtamaki has set its ambition to reach
carbon-neutral production by 2030.
The metrics used were reviewed during 2024 and no significant changes in metrics or underlying measurement
methodologies affecting the comparability of emission reduction performance and target have been made.
Methodological details related to GHG emission metrics are presented under chapter
1
Directors’ Report and Financial Statements 2024 | 47
Gross Scopes 1, 2, 3 and Total GHG
emissions
on page 50.
Climate scenario analyses, as described in the
Description of the processes to identify and assess material impacts, risks
and opportunities
section on page 31, have been considered when reviewing Huhtamaki’s previously identified
decarbonization levers. Huhtamaki does not have specific targets related to climate change adaptation, or physical or
transition risk mitigation.
Huhtamaki has set science-based target for reducing GHG emissions, aligning with climate change mitigation goals
outlined in the Group Environmental Policy. The targets have been set together with representatives from business
segments and key functions, reviewed by the Global Executive Team, and approved by the Board. External stakeholder
groups were not involved in the target setting process. Furthermore, the Science based Target Initiative (SBTi) validated
and approved these targets in 2021. The year 2019 was chosen as a base year, as it more accurately represents
Huhtamaki´s business activities instead of the most recent year 2020 when demand decreased during two quarters due
to the impact of COVID-. The targets were set using SBTi’s Absolute Contraction Approach. Scope 1 and 2 combined
emission reduction target covers 90 % and Scope 3 targets cover 67.5 % of base year GHG emissions.
Scope 1 and 2 targets
Huhtamaki’s SBTi validated science-based near-term combined target for Scopes 1 and 2 is aligned with the well-below
2-degree (WB2C) trajectory. As stated in Huhtamaki’s SBTi submission documentation in 202, the reference target
value in 2030 for 1.5 °C aligned target is 4,000 tCO2eq compared to Huhtamaki’s existing WB2C target 44,000
tCO2eq when using 2019 as the base year in both.
The market-based calculation method is used to determine the Scope 2 GHG emissions, which are included in
Huhtamaki’s combined Scope and 2 emission reduction target. Increasing the share of renewable energy fully
contributes to achieving the current emission reduction target. The impact of increasing renewable electricity is seen in
Scope 2 emission reductions. Furthermore, enhancing energy efficiency is important for limiting emission growth in both
Scope 1 and 2, even as the business continues to expand. Moreover, improving energy efficiency will help Huhtamaki
adapt to climate transition risks, including increased energy and carbon costs. Adopting new technologies is not
anticipated to play a major role in meeting Huhtamaki’s current emission reduction target.
Huhtamaki has committed to using 00 renewable electricity by 2030. It is one of Huhtamaki’s main emission
reduction levers and therefore complements Scope 1 and 2 emission reduction target. The target requires increasing
the share of renewable electricity that will help Huhtamaki to adapt to climate transition risks related to increased carbon
costs for fossil fuel-based electricity.
Performance against the mitigation and energy targets is monitored and reported quarterly. The progress against the
Scope 1 and 2 mitigation target and renewable energy target is ahead of what was initially planned. Huhtamaki achieved
its Scope 1 and 2 science-based emission reduction target (-27.5%) in 2024. The reduction in emissions was achieved
by increasing the proportion of renewable electricity in Huhtamaki’s own operations. See details about realized
emissions under
1
Directors’ Report and Financial Statements 2024 | 48
Gross Scopes 1, 2, 3 and Total GHG
emissions
section on page 50.
Scope 3 targets
Huhtamaki has established science-based near-term targets, validated by the Science Based Targets initiative (SBTi), for
Scope 3 emissions in two categories: Category 1 (Purchased Goods and Services) and Category 12 (End-of-Life
Treatment of Sold Products). The emission reduction target for Category 12 is aligned with a 2-degree Celsius trajectory.
Collectively, these two categories accounted for 87% of total Scope 3 emissions in 2019.
For Category 1: Purchased Goods and Services, Huhtamaki has established a supplier engagement target. By 2026, 70%
of
its purchased goods and services
suppliers, by spend, are expected to have science-based targets. In practice, this
target primarily applies to direct raw material suppliers, as Huhtamaki’s Category inventory predominantly captures
emissions from raw materials, as detailed in the
1
Directors’ Report and Financial Statements 2024 | 49
Gross Scopes 1, 2, 3 and Total GHG
emissions
section.
The target is not compatible with limiting global warming to
1.5°C. The main lever to achieve this target is to engage with suppliers and encourage them to set science-based targets.
Achieving the target helps to reduce transition risks related to increased carbon costs embedded in raw material costs.
To further reduce emissions and related transition risks from raw material purchases, Huhtamaki aims to increase the
share of recycled materials in products.
For Category 12: End-of-Life Treatment of Sold Products, the science-based emission reduction target is a 13.5%
reduction in absolute emissions by 2030, using 2019 as the base year. Huhtamaki has calculated a 1.5°C-aligned
reference target value for Category 2 emissions. Huhtamaki’s target is to reduce emissions to 03,000 tCO2eq by
2030, compared to the 1.5°C-aligned reference value of 562,000 tCO2eq. The primary lever to achieve this target
involves stakeholder collaboration to enhance circularity and drive systemic change. This includes implementing efficient
recycling systems globally and fostering innovative product design to improve recyclability. Huhtamaki has not yet
quantitatively assessed the potential impacts of adopting new technologies in achieving its Scope 3 emission reduction
targets. Huhtamaki does not yet have a full transition plan to achieve its Scope 3 related targets.
Performance against the Scope 3 targets is monitored and reported annually. Currently, progress towards these targets
is lagging initial plans. In 2022, the Science Based Targets initiative (SBTi) paused the commitments and validations of
science-based targets for fossil fuel companies, which has affected Huhtamaki’s plastic suppliers' ability to commit to
SBTi targets. This situation is estimated to hinder Huhtamaki’s ability to achieve its supplier engagement goals.
Huhtamaki acknowledges the challenges in measuring and reducing Scope 3 Category 12 emissions, particularly due to
the variability in waste management practices across different regions and the difficulty in obtaining accurate local-level
data. Due to constraints in the calculation methodology, Huhtamaki’s Category 2 emissions are closely tied to
production volume, with emissions fluctuating in line with production changes. Despite these challenges, Huhtamaki
identifies potential for emissions reduction through innovative product design and active engagement with customers
and waste management partners. These efforts are expected to aid in achieving the established target. Huhtamaki
intends to reassess the Scope 3 Category 12 calculation methodology next year to enhance clarity on progress towards
the reduction target.
Energy consumption and mix
1
Directors’ Report and Financial Statements 2024 | 50
Table 1. Energy consumption and mix
Calculation methodology
Huhtamaki’s data on energy consumption and mix is presented in the accompanying table. As Huhtamaki operates in
manufacturing, which is considered a high-climate impact sector (NACE: C), full breakdown of fossil energy sources is
provided. The consolidation scope contains all Huhtamaki manufacturing units, and the details are explained in the
chapter General Information on page 20. The same perimeter is applied for reporting GHG Scopes 1 and 2 emissions.
All quantitative energy-related information is reported in Mega-Watt- hours (MWh) in net caloric value (lower heating
value).
Huhtamaki’s activity data inventory encompasses all major fuels consumed in the production of heat, steam, electricity,
and cogeneration, including natural gas, diesel, liquefied petroleum gas (LPG), light fuel oil (LFO), and heavy fuel oil
(HFO). Fuel consumption in vehicles owned or controlled by Huhtamaki is deemed non-material, due to low volumes
compared to primary energy used in production processes (estimated <1% of total fuel consumption).
The data is collected from energy meters and invoices and reported monthly at site level. Fuel consumption from crude
oil and petroleum products includes LPG, HFO, LFO, and diesel. All heating, steam, and cooling is assumed to be fossil-
based. Feedstocks and fuels not combusted for energy purposes are excluded from the figures.
The measurement of the metrics presented in the E1 section is not validated by an external body.
Identified limitations
The separate collection of data on energy consumption from nuclear power sources and self-generated electricity began
in July 2024. Table 1. Energy consumption and mix presents the consumption related to self-generated renewable
electricity, consisting of actual consumption figures for the second half of the year.
The purchased renewable energy presented in the Table 1. Energy consumption and mix considers all energy
consumption as deriving from renewable sources when the origin of the purchased energy is defined in the contractual
Energy consumption and mix
2024
Total fossil energy consumption (MWh)
1,518,929
Fuel consumption from coal and coal products
0
Fuel consumption from crude oil and petroleum products
89,410
Fuel consumption from natural gas
969,814
Consumption of purchased or acquired electricity, heat, steam, and
cooling from fossil sources
459,706
Fuel consumption from other fossil sources
0
Share of fossil sources in total energy consumption
69.3 %
Total consumption from nuclear sources (MWh)
0
Total renewable energy consumption (MWh)
674,104
Fuel consumption from renewable sources, including biomass
6,641
Consumption of purchased or acquired electricity, heat, steam and
cooling from renewable sources
667,411
The consumption of self-generated renewable electricity
52
Share of renewable sources in total energy consumption
30.7 %
Total energy consumption (MWh)
2,193,033
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Directors’ Report and Financial Statements 2024 | 51
arrangements with suppliers (renewable power purchasing agreement, standardised green electricity tariff, market
instruments like Guarantee of Origin or Renewable Energy Certificates).
Table 2. Energy intensity per net revenue
Energy intensity per net revenue
2024
Total energy consumption from activities in high climate impact sectors
per net revenue from activities in high climate impact sectors (MWh / €
[in millions])
531.5
The net revenue used to calculate energy intensity is equal to the net sales amount for the year 2024 of EUR 4,126.3
million, as reported in the consolidated statement of income (IFRS) in the Financial Statements. As Huhtamaki operates
in the manufacturing sector (NACE codes: C17 and C22), the energy consumption and revenue have been included in
full in the intensity calculation.
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Directors’ Report and Financial Statements 2024 | 52
Gross Scopes 1, 2, 3 and Total GHG emissions
Table 3. Gross Scope 1, Scope 2, Scope 3 and total greenhouse gas (GHG) emissions in metric tons of CO2eq
Calculation methodology
Huhtamaki has considered the principles, requirements, and guidelines outlined in the GHG Protocol Corporate
Standard (2004 version). The total greenhouse gas (GHG) emissions reported include CO2, CH4, and N2O, calculated
in metric tons of CO2 equivalent (tCO2eq). Biogenic carbon (CO2) emissions are reported separately when available
(see Table 4. Additional disclosures).
The consolidation scope contains all Huhtamaki manufacturing units, and the details are explained in the chapter General
information. No significant changes in the definition of what constitutes the reporting scope for Huhtamaki and its
upstream and downstream value chain have taken place in 2024, as the impact of the closure of four sites is assessed
as insignificant.
Scope 1 GHG emissions
Base year
2024
2030
Gross Scope 1 GHG emissions (tCO2eq)
220,000
218,431
-
Percentage of Scope 1 GHG emissions
from regulated emission trading schemes
-
25.7 %
-
Scope 2 GHG emissions
Gross location-based Scope 2 GHG
emissions (tCO2eq)
-
454,945
-
Gross market-based Scope 2 GHG
emissions (tCO2eq)
544,000
243,106
-
GHG emissions from own operations, total
Total Scope 1 + 2 emissions (tCO2eq)
764,000
461,537
554,000
Significant Scope 3 GHG emissions (select
relevant cat.)
Gross indirect (Scope 3) GHG emissions
(tCO2eq)
-
3,134,000
-
1 Purchased goods and services
-
1,801,000
-
2 Capital goods
-
2,000
-
3 Fuel and energy-related Activities (not
included in Scope1 or Scope 2)
-
153,000
-
4 Upstream transportation and
distribution
-
102,000
-
5 Waste generated in operations
-
36,000
-
6 Business traveling
-
8,000
-
7 Employee commuting
-
40,000
-
9 Downstream transportation
-
51,000
-
12 End-of-life treatment of sold products
1,045,000
941,000
903,000
Total GHG emissions
Total GHG emissions (location-based)
(tCO2eq)
4,087,000
3,807,375
-
Total GHG emissions (market-based)
(tCO2eq)
4,119,000
3,595,537
-
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Directors’ Report and Financial Statements 2024 | 53
Scope 1 and 2 GHG emissions calculation methodology
The primary and secondary energy data presented in the Energy consumption and mix section are applied in Scope 1
and Scope 2 GHG emission calculations. Actual primary and secondary energy consumption data is prioritized in the
emission calculations. The primary and secondary energy activity data are multiplied by source-specific emission factors
from the emission factor libraries in Huhtamaki’s sustainability reporting tool. The selected emission factor libraries are
well known and trusted, and they are continuously updated when new information becomes available.
For Scope 1 emissions, default emission factors from GHG Protocol emission factor library are applied. No estimates or
bioenergy certificates are included in the calculations. Scope 2 emission calculations follow the Greenhouse Gas
Protocol Scope 2 Guidance. Scope 2 GHG emissions from steam, district heating and cooling are calculated using the
emission factors from MLC v16.1 library (GaBi). To calculate Scope 2 emissions from purchased electricity, two methods
are used. The emission factors of GHG Protocol v19 (eGRID 2021) are used in calculating the location-based emissions.
To calculate the market-based emissions, supplier-specific emission factors are being used when those are available.
Otherwise, the emission factors of RE-DISS (residual mix) or GHG Protocol (eGRID 2021) libraries are used.
Scope 3 GHG emissions calculation methodology
Scope 3 emissions are reported in accordance with the GHG Protocol Corporate Accounting and Reporting Standard
and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard. The reporting covers indirect GHG
emissions from the entire value chain, including both upstream and downstream activities. Huhtamaki has conducted a
materiality assessment
to identify the relevant Scope 3 categories.
Out of the 15 categories, 9 have been assessed as
material for Huhtamaki. These categories have been included in the calculations. The remaining 6 categories were
deemed non-material and have therefore been excluded.
Emissions are reported as per calculated GWP (100a) values obtained with CML 2001 impact assessment method. The
calculation process utilizes primary data from Huhtamaki´s operations and secondary data from global databases.
Overall, 64 % of emissions are calculated using primary activity data available directly from value chain partners (for
categories 1, 2, 3, and 5).
Emission factors used are from ecoinvent 3.5 database and the MLC v16.1 (GaBi) emission
factor library. Huhtamaki uses LCA tool to calculate Scope 3 emissions.
•
Category 1
:
Purchased goods and services
in
cludes all upstream cradle-to-gate emissions from the production
of products purchased or acquired by Huhtamaki in the reporting year.
The calculation process incorporates
primary data from the operations, including raw material volumes measured in metric tons. It also incorporates
ecoinvent 3.5 database to obtain emission factors, facilitating cradle-to-gate assessments. In addition, supplier
specific emission factors have been used for 6 % of the raw material data.
Average data method has been used.
An i
dentified development area is that the calculation does not include the services purchased during the
reporting year.
•
Category 2:
Capital goods
include upstream GHG emissions from laptops, desktop computers, and displays
purchased by Huhtamaki in 2024. For capital goods, the calculation process utilizes primary data from
Huhtamaki´s operations (number of laptops, desktop computers, and displays) and ecoinvent 3.5 database
to
obtain emission factors
for cradle-to-gate data. The average data method is used.
Capital goods do not include
the machines or equipment used in manufacturing site, which has been identified as a development area.
•
Category 3:
Fuel- and energy-related activities not included in Scope 1 or Scope 2
includes all upstream cradle-to-
gate emissions of purchased fuels from raw material extraction until the end-user. Category 3 calculations utilize
primary data of fuel consumption from Huhtamaki´s operations and emission factors obtained from the
ecoinvent 3.5 database. Upstream electricity and distribution losses are calculated based on primary
consumption data from Huhtamaki´s operations.
Emission factors are from the MLC v16.1 (GaBi) library.
Average data method is used.
Industrial steam, district heating, and district cooling are excluded from the
calculation as insignificant. These represent a small fraction of the total secondary energy consumption,
approximately 1%.
•
Category 4:
Upstream transportation
includes Scope 1 and Scope 2 emissions from transportation and
distribution providers during the use of their vehicles and facilities. Emissions are calculated using data on actual
transported raw material volumes, and estimations for distances and the distribution of transport modes. These
1
Directors’ Report and Financial Statements 2024 | 54
estimates are made at the business segment level and then consolidated into group figures. Emission factors
(well-to-wheel) are derived from the ecoinvent 3.5 database using the distance-based method. Currently,
emissions from storage facilities are excluded, which has been identified as an area for improvement.
•
Category 5:
Waste generated in operations
includes Scope 1 and 2 emissions from waste management suppliers
that occur during disposal or treatment.
The calculation uses primary data on waste volumes generated in
Huhtamaki´s manufacturing sites during production. T
he ecoinvent 3.5 database is used
to obtain emission
factors
for waste treatment emissions. A waste-type-specific method is used that considers both non-hazardous
and hazardous waste. Different waste materials, such as fiber and plastics, are not calculated separately.
•
Category 6:
Business travel
includes Scope 1 and Scope 2 emissions of transportation carriers that occur during
the vehicle use.
The calculation of business travel relies on the number of employees in the management
structure. T
he ecoinvent 3.5 database is used
to obtain emission factors
for transportation emissions. The
distance-based method is used.
Identified development area is that o
nly air travel is included in calculation.
•
Category 7:
Employee commuting
includes Scope 1 and Scope 2 emissions from employees and transportation
providers that occur during vehicle use.
The employee commuting calculation process is based on number of
employees within the management structure and incorporates estimated commuting distances for Huhtamaki’s
employees.
The ecoinvent 3.5 database is used
to obtain emission factors
for transport emissions. The average
data method is used.
•
Category 8:
Upstream leased assets
is assessed as non-relevant. Huhtamaki operates a small number of leased
electric trucks and cars. Emissions related to factory space are included in Scope 1 and 2.
•
Category 9:
Downstream transportation
includes Scope 1 and Scope 2 emissions from transport providers,
distributors and retailers that occur during the use of vehicles. Data from Huhtamaki´s production volume is
used to estimate the required distances and shares of different transport modes. These estimations are done
at the segment level and consolidated into Group figures. The ecoinvent 3.5 database is used
to obtain emission
factors
for transport emissions. The distance-based method is used.
Identified potential development area is
that s
torage is excluded.
•
Category 10:
Processing of sold products
is estimated not relevant as Huhtamaki mainly sells only finished
products not intermediate ones.
•
Category 11:
Use of sold products
is estimated as not relevant as the use of Huhtamaki´s products do not cause
direct emissions.
•
Category 12:
End-of-life treatment of sold products
are related to the end-of-life treatment of products sold by
Huhtamaki in the reporting year. This includes Scope 1 and 2 emissions of waste management companies
occurring during waste disposal, recycling, and other treatment processes. Data is gathered on the total mass
of sold products by different product types, such as paper, plastic, and other materials.
To estimate the share
of treatment options by product type, global averages from literature are utilized. Additionally, the ecoinvent
3.5 database is used to obtain emission factors for
landfilling, incineration, and recycling
. A waste-type-specific
method is used. Identified development area is to increase the level of detail in the calculation to allow better
follow-up of progress against targets.
•
Category 13:
Downstream leased assets
is assessed as not relevant as Huhtamaki does not own leased assets
operated by other entities in the reporting year.
•
Category 14:
Franchises
is assessed as not relevant as Huhtamaki has no franchising business in the reporting
year.
•
Category 15:
Investments
is assessed as not relevant as emissions of investments made by Huhtamaki fall in
Scopes 1 and 2.
1
Directors’ Report and Financial Statements 2024 | 55
Identified limitations
HFCs, PFCs, SF6, and NF3 are currently excluded from the Scope 1 inventory boundary. However, an evaluation of
their significance is planned for in the future. Additionally, the percentage of Scope 1 emissions from regulated emission
trading schemes has been calculated using the latest available figures, so it is partly calculated with previous year’s data.
As in previous years, the proportion of emissions covered by the EU Emissions Trading System (EU ETS) has been
calculated by taking the total Scope 1 emissions from sites regulated under the EU ETS and dividing that by the total
Scope 1 emissions for the entire Group. This means that a small portion of other Scope 1 emissions, which are not
regulated under the EU ETS, are also included in the Scope 1 emissions reported for EU ETS sites.
For Scope 2 emissions, due to the unavailability of market-based emission factors for steam, district heating, and cooling,
the disclosed market-based emissions are calculated using location-based emission factors.
The purchased renewable
energy, presented in the Table 1. Energy consumption and mix in the previous chapter, considers all energy consumption
as deriving from renewable sources when the origin of the purchased energy is defined in the contractual arrangements
with suppliers. On the contrary, in emission calculation only consumption based on market instruments (such as
Guarantee of Origin or renewable energy certificates) is considered as renewable energy. Other potential renewable
energy consumption under agreements with energy suppliers is treated as fossil-based energy in emission calculations,
as has been the practice in previous reporting periods. The calculation method is intended to be updated in future
reporting periods so that all energy reported as renewable is also treated as renewable energy in market-based emission
calculations.
For Scope 3, given the indirect nature of the emissions and the variety of sources contributing to them, calculations
involve simplifications and estimations across multiple categories. In 2024, 36% of emissions were derived from activity
data from secondary sources. Huhtamaki acknowledges the challenges in obtaining primary activity data from its value
chain partners, which results in estimates. This reliance can introduce variability in accuracy. Calculations are based on
standardized assumptions that do not fully reflect the specific circumstances of Huhtamaki´s operations and value chain.
Huhtamaki intends to update the materiality assessment and the Scope 3 calculation methodologies in 2025 to address
identified development needs, as detailed per each Scope 3 category, and to achieve better visibility across the
categories, including the separate calculation of biogenic value chain emissions. Plans also include
improving the data
collection processes and increasingly engaging with suppliers.
Table 4. Additional disclosures
Biogenic emissions & contractual instruments
Biogenic emissions of CO2 from the combustion or bio-degradation of biomass
not included in Scope 1 (tCO2eq)
2,391
Biogenic emissions of CO2 from the combustion or bio-degradation of biomass
not included in Scope 2 (tCO2eq)
-
Biogenic emissions of CO2 from the combustion or bio-degradation of biomass
not included in Scope 3 (tCO2eq)
-
Percentage contractual instruments from total purchased energy consumption,
Scope 2 calculation
67.0 %
Percentage of contractual instruments bundled with attributes, Scope 2
calculation (%)
75.2 %
Percentage of contractual instruments under unbundled energy attribute claims,
Scope 2 calculation (%)
24.8 %
Methodology
Biogenic Scope 1 carbon dioxide emissions from biomass combustion have been calculated using the emission factor
from the GHG Protocol (eGRID).
Percentages for contractual instruments used have been calculated based on MWh-figures. Total contractual instrument
use rate has been compared to total purchased energy (in MWh).
1
Directors’ Report and Financial Statements 2024 | 56
Identified limitations
For Scope 2 and 3 biogenic CO2 emissions, data collection capability is not in place. In Scope 2, based on analysis from
comparable companies, making a reasonable estimation was not possible to be made. In Scope 3, the limitation to collect
biogenic emissions has been identified, and will be addressed as part of the climate target revision work during 2025.
The collection of contractual instrument use has been initiated from July 2024 onwards, but no significant changes are
expected to take place within a year.
Table 5. GHG intensity per net revenue
The net revenue used to calculate GHG emissions intensity is equal to the net sales amount for the year 2024 of EUR
4,126.3 million as reported in the consolidated statement of income (IFRS) in the Financial Statements.
GHG removals and GHG mitigation projects financed through carbon credits
Huhtamaki intends to purchase high-quality carbon credits from the voluntary market (VCM) to support its claim of
achieving carbon-neutral production by 2030. This ambition applies to Scope 1 and Scope 2 emissions. The anticipated
amount of greenhouse gas (GHG) emission reductions from climate change mitigation projects outside Huhtamaki’s
value chain, which it intends to finance through the purchase of carbon credits, is 554,000 tCO2eq in 2030. This total
anticipated amount of carbon credits planned for cancellation in the future is not based on existing contractual
agreements.
The amount of carbon credits to be purchased corresponds to the estimated Scope 1 and Scope 2 GHG emissions
remaining after Huhtamaki’s emission reduction actions within its own operations, and the achievement of its emission
reduction target in 2030. Therefore, the same qualitative requirements for metrics apply, as explained in the previous
chapter related to Huhtamaki’s GHG emissions.
The target claim for carbon-neutral production by 2030 and the reliance on carbon credits do not impede or reduce the
achievement of Huhtamaki’s GHG emission reduction targets. Huhtamaki aims to ensure the credibility and integrity of
the carbon credits used by selecting recognized quality standards, such as the Gold Standard.
GHG intensity per net revenue
2024
Total GHG emissions (location-based) per net
revenue (tCO2eq / € [in millions])
922.7
Total GHG emissions (market-based) per net
revenue (tCO2eq / € [in millions])
871.4
1
Directors’ Report and Financial Statements 2024 | 57
ESRS E3 Water
Material impacts and risks related to water
Water-related material impacts, risks and opportunities have been identified in the double materiality assessment, which
is described in detail on page 31 onwards.
Policies related to water
Water is a key component of Group Environmental Policy, which sets commitments and expectations for Huhtamaki’s
operations on water management. The policy covers impacts and risks related to water withdrawals, water consumption
and water-stress and availability. Huhtamaki’s water management commitments are threefold: adopting the principles
of circular water management, maintaining site specific water management plans, and monitoring and mitigating water-
related risks.
•
Circular water management: Huhtamaki is committed to reducing water loss by boosting water efficiency, re-
using water that needs minimal or no treatment, recycling water, and restoring water by returning it to the
source with the same or better quality.
•
In alignment with the Group Environmental Policy, each site has developed its own Water Management Plan
with a focus on identifying water-related risks and implementing appropriate actions to address these risks and
drive reductions in water intensity at all manufacturing sites. These plans detail the various sources of water
and provide insights into how and where the water is utilized.
•
Monitor and mitigate water-related risks: Huhtamaki uses the Aqueduct Water Risk Atlas by the World
Resource Institute (WRI) to identify Huhtamaki’s high-risk sites in water-stressed areas.
Group Environmental Policy applies to all Huhtamaki operations globally, including any sites located in high water-
stressed areas. More detailed description of the Group Environmental Policy and its implementation is found in the
Policies related to climate change mitigation
section on page 44. Huhtamaki also focuses on reducing its environmental
footprint when designing products through lifecycle approach as stipulated in Huhtamaki’s Design Principles Guidelines,
described in the
Policies related to resource use and circular economy
section on page 64.
Huhtamaki also commits to safely managing Water, Sanitation and Hygiene (WASH) in the workplace. This commitment
is clearly outlined in Huhtamaki’s Global Health and Safety Working Conditions Overview policy regarding the Facilities
Management.
Material impact or risk
Description
Applicability
Water
Negative
impact
Water
withdrawals
Some of Huhtamaki’s production sites require significant
amounts of freshwater intake, which could potentially affecting
water availability in local water basins and, consequently
impact the company’s operations. Huhtamaki continuously
assesses whether its sites are located in water-stressed areas
and evaluates whether this has potential impacts on
production continuity.
Value chain &
Own
operations
Negative
impact
Water
consumption
Huhtamaki consumes water in their production processes,
especially in manufacturing molded fiber products that
consume high volumes of water through the pulping process.
Increased production can lead to higher freshwater demands,
potentially impacting water resources negatively.
Value chain &
Own
operations
Risk
Limitations in
water availability
(entity specific)
Water availability poses a key risk to Huhtamaki, as it is a
critical resource across the value chain. Huhtamaki monitors
sites operating in water-stressed areas and their water
availability. Potential risks include price increases, limited
availability of water resources, and raw material supply, which
could impact production continuity.
Value chain &
Own
operations
1
Directors’ Report and Financial Statements 2024 | 58
Furthermore, Huhtamaki extends the requirements to its suppliers and requires them to reduce environmental impacts
of their operations and safeguard the natural resources, with a particular emphasis on managing water usage, along with
other aspects such as raw material consumption, energy use, pollution prevention, and waste management. See more
detailed description of the Code of Conduct for Huhtamaki Suppliers in the
Policies related to value chain
workers
section on page 84.
Actions related to water
Huhtamaki recognizes that water availability and quality are crucial for the production processes throughout its value
chain. The foundation of Huhtamaki’s water management lies in the comprehensive implementation of site-specific
water management plans for all its sites. The water management plan enhancing water usage and consumption practices
and protecting water resources through targeted actions is vital for Huhtamaki’s business operations. Huhtamaki’s
water-related initiatives are designed not only to reduce water intensity, but also to ensure the health and protection
of water basins and sources. Huhtamaki is committed to exceeding minimum water regulatory requirements, adhering
to best practices, and rejecting any violations or unethical dealings.
Manufacturing of molded fiber packaging represents the most water-intensive business segment at Huhtamaki. Given
the inherently water-intensive nature of these operations, Huhtamaki has implemented efficient water recirculation
systems at these manufacturing units where possible. Process water undergoes purification either through its own
treatment plants or through municipal facilities before discharge. As a result, the impact of the operations on the
downstream water quality is negligible or very limited. Non-process water is safely released into the sewage network
where feasible; alternatively, discharge is commissioned to authorized suppliers at sites lacking a sewage network. They
ensure water quality meets local regulations before discharge. Huhtamaki also monitors emerging materials and
chemicals, engages with stakeholders in chemistry-related forums, and aligns with the EU Chemical Strategy for
Sustainability, focusing on zero water pollution.
In 2024, Huhtamaki intensified its efforts to better comprehend its risks related to water availability, by evaluating
overall environmental and business risks through performing catchment vulnerability assessments at Huhtamaki’s high
water-risk sites. The assessment encompassed an evaluation of overall business risk, considering supply quantity and
quality, along with an examination of local municipal infrastructure, regulations, and governance, which in turn gives
Huhtamaki better understanding of the actual risk rating. To address and mitigate the negative impacts related to water
withdrawals and consumption, in 2024 Huhtamaki has installed water meters at the top 80% of its water consumption
sites globally, which will support the Group’s efforts to enhance water consumption monitoring in its own operations in
the future.
In the short and medium term, Huhtamaki will continue to further improve its water monitoring and measuring
capabilities in its own operations at all sites and aims to start water stewardship implementation action plan for the sites
located in water-stressed areas during 2025. In recent years, the Group has taken actions to develop its preparedness
for setting specific water related targets, and the initiatives already conducted along with those planned will support
building the baseline and the ambition of developing group-level water targets by 2026.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
the defined water-related actions. However, smaller financial resources and other resources such as dedicated
personnel from the Group, segments and sites are designated to support the implementation efforts.
Targets related to water
Currently, Huhtamaki does not have measurable, outcome-oriented, and time-bound targets in place to address the
water-related matters in its own operations and in the value chain due to the ongoing capability development. However,
Huhtamaki is committed to its water-related actions on improving water monitoring and measurement capability,
reducing water intensity in its operations, and exploring watershed projects for high water-stressed areas. Huhtamaki’s
short-term ambition is to develop more specific water targets, targeted to be established by 2026. Despite the lack of
targets, Huhtamaki, tracks the effectiveness of its policies and actions with ESRS aligned metrics for water withdrawals,
discharge, and consumption, as presented below. Huhtamaki evaluates the progress and reacts with appropriate actions
through the annual review and update of the site-specific water management plans.
1
Directors’ Report and Financial Statements 2024 | 59
Water consumption
Table 6. Water consumption
Calculation methodologies
The data in Table 6 is derived from information collected from water meters and water bills at the site level, and these
inputs are used to calculate the totals for water consumption. Total water consumption is calculated by subtracting
water discharged from the overall water withdrawal.
The water-stress level for all manufacturing units is assessed annually using the WRI’s Aqueduct Water Risk Atlas to
stay informed of the volatility caused by climate change. In 2024, Huhtamaki identified 30 sites operating in extreme-
to high-water risk.
The measurement of the metrics is not validated by an external body.
Identified limitations
No limitations identified.
Areas covered by metrics
2024
Total water consumption (m
3
)
1,090,226
Total water consumption in areas at water risk, including areas of high-
water stress (m
3
)
354,520
Total water recycled and reused (m
3
)
3,459,461
Water intensity ratio (m
3
/ € [in millions])
264.2
Water consumption per segment (m
3
)
Fiber Foodservices E-A-O
472,183
North America
373,867
Flexible Packaging
244,177
Total water withdrawals (m
3
)
8,286,081
Total water discharges (m
3
)
7,195,854
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Directors’ Report and Financial Statements 2024 | 60
ESRS E4 Biodiversity and Ecosystems
Transition plan on biodiversity and ecosystems
Huhtamaki’s business depends on the availability and quality of natural resources and the ecosystem services they
provide. At the same time, the Group’s operations can alter ecosystem conditions, which in turn affects the availability
and quality of these resources. Given its significant reliance on natural resources and impact on them, Huhtamaki is
committed to taking action that protects the planet, people, and the business.
Huhtamaki has analyzed the resilience of its strategy and business model in relation to some of the driving forces of
biodiversity loss and ecosystem degradation. The most advanced work in this field focuses on climate impacts, with
scenario analysis presented in Climate-related scenario analysis section on page 32. However, a broader scenario
analysis that considers other driving forces of biodiversity loss and ecosystem degradation has not yet been conducted.
Huhtamaki has started a continuous process to systematically analyze its impacts, dependencies, risks, and opportunities
related to nature across the value chain using the LEAP approach provided by the Taskforce on Nature-related Financial
Disclosures. The goal is to further develop the resilience analysis of biodiversity and ecosystem-related physical,
transition, and systemic risks through the LEAP assessment currently underway. As this work progresses, the aim is to
integrate findings from this process into strategic planning and risk management processes, promoting sustainability and
resilience.
Material impacts related to biodiversity and ecosystems
Biodiversity and ecosystems-related material impacts, risks and opportunities have been identified in the double
materiality assessment, which is described in detail in
Description of the processes to identify and assess material
impacts, risks and opportunities
section starting on page 31.
Material impact
Description
Applicability
Direct impact drivers of biodiversity loss
Negative
impact
Impacts on biodiversity
due to activities in
Huhtamaki’s value
chain
Huhtamaki's
activities
can
negatively
impact
biodiversity, particularly in the upstream value chain
during the sourcing of raw materials. The most
significant impacts arise from sourcing fiber-based
materials, plastic resins, and production chemicals,
primarily impacting water resources, land use, and
GHG emissions. Additionally, the use and end-of-life
phases of packaging life cycle can harm nature, for
example, through pollution from inappropriate disposal
by
consumers.
Furthermore,
Huhtamaki's
own
operations
can
negatively
impact
biodiversity
especially through pollution and water use.
Value chain
Impacts & dependencies on ecosystem services
Negative
impact
Impacts and
dependencies on
ecosystem services due
to activities in
Huhtamaki’s value
chain
Huhtamaki
both impacts
and relies on forest
ecosystems through the sourcing of fiber-based
materials. The forest industry can alter ecosystem
services by causing habitat and soil degradation,
increasing the risk of natural hazards, and elevating
levels of water pollution, GHG emissions, and other air,
and soil pollutants. Sourcing oil for plastic resin
production similarly can disrupt ecosystems by causing
habitat
destruction,
soil
contamination,
water
pollution, and increased GHG emissions. Furthermore,
Huhtamaki’s operations also impact and are dependent
on local ecosystem services, such as water resources.
Value chain
1
Directors’ Report and Financial Statements 2024 | 61
Huhtamaki is committed to identifying and mitigating the impact of its operations on biodiversity. Huhtamaki maps
annually the locations of its manufacturing sites to identify whether they are located in or near biodiversity-sensitive
areas. In 2024, the mapping of sites was performed using the Integrated Biodiversity Assessment Tool (IBAT), which
utilizes the World Database on Protected Areas and The World Database of Key Biodiversity Areas. A site is considered
to be near biodiversity-sensitive areas if it is within a maximum distance of 4 kilometers. The information on the sites'
coordinates was retrieved from Huhtamaki’s internal databases. As a result, 3 locations were identified where
Huhtamaki’s operations are in or near biodiversity-sensitive areas and these sites are provided in
Table 7
. Huhtamaki
has not yet concluded whether it is necessary to implement biodiversity mitigation measures for these sites.
The table also contains information on sites' manufacturing activities that can potentially negatively affect these
biodiversity sensitive areas. However, Huhtamaki has not assessed whether the operational activities related to these
sites actually negatively affect these key biodiversity areas by leading to the deterioration of natural habitats and the
habitats of species, and to the disturbance of the species for which a protected area has been designated. During 2024,
Huhtamaki conducted a pilot analysis of sites’ impacts and dependencies on nature, as well as the presence of
threatened species. However, this data is not yet available for reporting. Similarly, information on the ecological status
of the areas where the sites are located is also not currently available. The information provided in the table has not
been validated by an external body.
Table 7. Biodiversity-related information about Huhtamaki's sites under its own operational control located in or near biodiversity-
sensitive areas
Site information
Biodiversity information
Country
Site name
Coordinates
(Lat, Long)
Site activities
potentially
negatively
affecting
biodiversity
sensitive
areas
Position in
relation to the
high
biodiversity
value area
High biodiversity value
area classification: key
biodiversity area (KBA)
or protected area (PA)
Australia
Windsor
-33.620671
150.809905
1
In the area
KBA (1 area)
Adjacent to*
PA: National (1 area)
Brazil
Natal
-25.3832
-49.806
2
Adjacent to
PA: National (1 area)
Palmeira
-25.335203
-49.926301
1
In the area
PA: National (1 area)
Czech
Republic
Okrisky
49.256995
15.7799
1
Adjacent to
PA: National (1 area)
Prague (closed
in 2024)
50.102518
14.526931
2
Adjacent to
PA: National (2 areas)
Finland
Hämeenlinna
60.972299
24.528853
1
Adjacent to
PA: National (13 areas)
Adjacent to
PA: Natura 2000 (2
areas)
France
La Rochelle
46.323777
-0.949894
1
In the area
PA: National (1 area)
Adjacent to
PA: Natura 2000 (1
area)
In the area
KBA (1 area)
Germany
Alf
50.058787
7.104046
1
In the area
PA: Natura 2000 (1
area)
In the area
PA: National (1 area)
Adjacent to
KBA (1 area)
Ireland
Ennis (Cupprint)
52.875
-8.913585
1
Adjacent to
PA: Natura 2000 (3
areas)
Adjacent to
PA: Ramsar site (1 area)
1
Directors’ Report and Financial Statements 2024 | 62
Adjacent to
KBA (1 area)
Italy
Tortona
44.854002
8.855694
2
Adjacent to
PA: Natura 2000 (1
area)
Mexico
Tultitlan
19.645693
-99.155857
3
Adjacent to
PA: National (1 area)
Netherlands
Leeuwarden
53.194133
5.849975
1
Adjacent to
PA: National (2 areas)
Adjacent to
PA: Natura 2000 (1
area)
Adjacent to
KBA (2 areas)
New
Zealand
Otahuhu
-36.958918
174.860789
1
Adjacent to
KBA (3 areas)
Poland
Czeladz
50.315974
19.100283
1
Adjacent to
PA: National (3 areas)
Saudi Arabia
Dammam
(Appco)
26.395435
50.147206
1
Adjacent to
PA: National (1 area)
Adjacent to
KBA (1 area)
South Africa
Verulam,
Durban
-29.650483
31.046815
2
Adjacent to
KBA (2 areas)
Verulam,
Durban -
Gravure
-29.629077
31.050923
2
In the area
KBA (1 area)
Adjacent to
KBA (1 area)
Verulam Fiber
(KZN)
-29.6289
31.04953
1
In the area
KBA (1 area)
Adjacent to
KBA (1 area)
Verulam,
Durban -
Prepress
-29.627794
31.050671
2
In the area
KBA (1 area)
Adjacent to
KBA (1 area)
Atlantis
-33.591404
18.479801
1
Adjacent to
PA: National (1 area)
Spain
Nules
39.840802
-0.160112
1
Adjacent to
PA: National (1 area)
Adjacent to
PA: Natura 2000 (1
area)
Adjacent to
KBA (1 area)
Thailand
Samutsakorn
13.558779
100.232183
2
In the area
KBA (1 area)
New
Samutsakorn
13.548698
100.2304
2
In the area
KBA (1 area)
Türkiye
Istanbul
41.076451
28.647907
2
Adjacent to
KBA (1 area)
Esenyurt and
Istanbul
41.046951
28.634471
1
Adjacent to
KBA (1 area)
UK (England)
Gosport
50.813628
-1.158772
1
Adjacent to
PA: National (5 areas)
Adjacent to
PA: Ramsar Site (2 areas)
Adjacent to
PA: Natura 2000 (1 area)
Adjacent to
KBA (2 areas)
Blackburn
53.734815
-2.44822
1
Adjacent to
PA: National (1 area)
UK (Northern
Ireland)
Antrim
54.733519
-6.238634
1
Adjacent to
PA: Ramsar Site (1 area)
Adjacent to
KBA (1 area)
Belfast
54.578927
-5.974854
1
Adjacent to
PA: National (8 areas)
Adjacent to
PA: Ramsar Site (1 area)
Adjacent to
KBA (1 area)
1
Directors’ Report and Financial Statements 2024 | 63
United
States of
America
De Soto
38.96295
-94.9722
3
Adjacent to
PA: National (1 area)
Franklin
39.574575
-84.263222
3
Adjacent to
PA: National (1 area)
Fulton
43.315293
-76.412229
3
Adjacent to
PA: National (1 area)
Goodyear
33.408165
-112.431115
3
Adjacent to
PA: National (1 area)
Adjacent to
KBA (1 area)
Hammond
41.593313
-87.479465
3
Adjacent to
PA: National (1 area)
Lewiston
44.142686
-70.163452
3
Adjacent to
PA: National (1 area)
New Vienna
39.321283,
83.684616
3
Adjacent to
PA: National (1 area)
Paris
33.678787
-95.56346
3
Adjacent to
PA: National (1 area)
*Adjacent to (within 4 km)
1) Paperboard and/or molded fiber packaging manufacturing
2) Flexible packaging manufacturing
3) Paperboard and/or molded fiber and/or plastic packaging manufacturing
Policies related to biodiversity and ecosystems
Huhtamaki addresses the management of its identified material impacts and dependencies related to biodiversity and
ecosystems through its Group Environmental Policy. This policy commits Huhtamaki to maintaining and enhancing
biodiversity for its operations and encouraging its suppliers to do the same. The commitments outlined in the Group
Environmental Policy focus particularly on promoting sustainable use of forests, aligning with the results of the double
materiality analysis, which indicates that the largest contributor to Huhtamaki’s biodiversity impacts is the sourcing of
fiber-based raw materials. The commitments related to the sustainable use of forests include achieving zero
deforestation and zero conversion of areas of high biodiversity value in supply chain, sourcing virgin wood fiber from
certified sources (PEFC, FSC®, SFI® or other comparable and reputable certification schemes), and having traceability
systems in place to track and monitor the origin of the fiber-based materials used.
Huhtamaki similarly expects its suppliers to protect biodiversity and ecosystems, which is outlined in the Code of
Conduct for Huhtamaki Suppliers. The supplier code of conduct requires that suppliers make efforts to reduce the
environmental impacts of their operations and safeguard natural resources. This includes addressing topics such as raw
material use, energy and water consumption, pollution prevention, and waste management, all of which are drivers of
biodiversity loss and ecosystem degradation. Huhtamaki’s forest-related commitments, as outlined in the Group
Environmental Policy, are also reinforced in the Code of Conduct for Suppliers. It states that suppliers must ensure that
they do not source materials, directly or indirectly, that contribute to the deforestation of high conservation value areas
or interfere with the habitats of endangered species. Both policies are global, covering all Huhtamaki’s operational sites,
including those in or near a biodiversity-sensitive area. Social consequences of biodiversity and ecosystem-related
impacts are currently not covered in these policies.
See more detailed description of the Group Environmental Policy and Code of Conduct for Huhtamaki Suppliers and
their implementation in
Policies related to climate change mitigation
section on page 44, and in
Policies related to value chain
workers
section on page 84.
Actions related to biodiversity and ecosystems
In 2024, Huhtamaki actively engaged in several nature-related initiatives. As previously mentioned, the Group initiated
a TNFD-guided LEAP assessment to identify nature-related impacts, dependencies, risks, and opportunities.
Additionally, site-specific LEAP assessments were conducted for a selected group of Huhtamaki’s manufacturing sites
in India. These assessments aim to provide a systematic, science-based overview of the current situation, helping to
better understand where to prioritize actions for maximum impact.
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Directors’ Report and Financial Statements 2024 | 64
Recognizing the significant impact that wood fiber sourcing can have on biodiversity, Huhtamaki is committed to
achieving zero deforestation and zero conversion of areas of high biodiversity value within supply chain. Regarding this
commitment, continuous efforts to increase the share of recycled or certified fiber sourced were maintained, along with
the development of tracking and monitoring the origin of the forest-based materials used. Huhtamaki has a target in
place to track the sourcing of fiber from recycled or certified sources, through which the journey toward sustainable
sourcing of fiber-based raw materials is monitored. Additionally, necessary actions were initiated to fulfill the
requirements set by the European Union Deforestation Regulation (EUDR). A yearly mapping of manufacturing sites to
determine their proximity to, or location within, key biodiversity areas or protected areas was conducted, and these
results are presented in
Table 7
in the
Material impacts related to biodiversity and ecosystems
section on page 58.
Huhtamaki has not utilized biodiversity offsets in its biodiversity and ecosystem-related actions. Additionally, local and
indigenous knowledge, and nature-based solutions have not been incorporated into these actions.
The Group has not
yet been able to identify individuals or groups who are actually harmed by its material impacts. As a result, the Group
has no information to disclose on actions taken to provide for, cooperate in, or support the provision of remedy for
those affected.
During the year, Huhtamaki also developed its knowledge and expertise in the rapidly evolving landscape of nature
initiatives and frameworks. These activities included completing a Science Based Targets for Nature training program
organized by the UN Global Compact Finland, and participating in the FIBS
1
Nature Network, a peer-learning corporate
group focused on developing companies' nature-related work. Additionally, Huhtamaki was present at the annual
European Business & Biodiversity Forum organized by the WWF.
Huhtamaki plans to continue all the aforementioned activities in the short- and medium-term. In 2024, Huhtamaki joined
the cohort of TNFD Adopter companies, committing to adopt TNFD-aligned disclosures as part of its 2025 corporate
reporting. Key actions in the short and medium term will include conducting the LEAP assessment, which forms the
basis for TNFD-aligned reporting, fulfilling the requirements of the EUDR, and globally improving the traceability of
fiber-based materials.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
the defined biodiversity and ecosystems-related actions. However, smaller financial resources and other resources, such
as dedicated personnel from the Group and segments are designated to support the implementation efforts.
Targets related to biodiversity and ecosystems
The target of sourcing 00 of fiber from recycled or certified sources by 2030 supports the Group’s commitment to
zero deforestation and zero conversion of areas of high biodiversity value in the supply chain, as well as ensuring that
traceability systems are in place to track and monitor the origin of forest-based materials. Both commitments are laid
out in the Group Environmental Policy. This target is also aligned with the findings of Huhtamaki’s major impact and
dependencies on nature, particularly related to the sourcing of fiber-based materials.
The geographical scope of the target is global. Performance against this target is collected monthly from manufacturing
sites, and there have not been any significant changes in the methodology within the reporting year. The definition of
recycled fiber includes both post-consumer and post-industrial recycled paper and paperboard. To classify fiber as being
from certified sources, it must be FSC® (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forest
Certification, PEFC/02-31-385), or SFI® (Sustainable Forestry Initiative) certified.
The target is aligned with the Kunming-Montreal Global Biodiversity Framework’s goals of sustainable use of natural
resources and reducing threats to biodiversity. By ensuring fibers are recycled or certified, Huhtamaki promotes
sustainable forestry practices, and reduces the demand for virgin materials, thereby contributing to ecosystem
1
Finnish Business & Society (FIBS) is a corporate responsibility network operating in the Nordic countries
Target
Scope
2024
performance
100% of fiber is sourced from recycled or certified sources by 2030
Base year: 2020
Baseline value: 98.4 %
Upstream value chain
99.0 %
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Directors’ Report and Financial Statements 2024 | 65
conservation and restoration. The target also aligns with the EU Biodiversity Strategy for 2030 in similar ways. National
biodiversity and ecosystem-related policies and legislation vary by country but generally focus on these same topics,
and thus the target is likely to be also aligned with these.
In the biodiversity mitigation hierarchy, this target can be allocated to the ‘Minimization’ layer as its goal is to reduce
negative impacts on biodiversity by ensuring sustainable forest management practices. Due to the nature of the target,
it cannot be concluded whether it is based on scientific evidence. However, it can be considered that sourcing recycled
or certified fiber indeed supports the reduction of deforestation and conversion of areas of high biodiversity value. Due
to the same reason, the application of ecological thresholds and allocations of impacts to Huhtamaki were not relevant
in setting this target. Huhtamaki has not used biodiversity offsets in setting this target. The target has been set together
with representatives from business segments and key functions, reviewed by the Global Executive Team, and approved
by the Board. External stakeholder groups were not involved in the target setting process.
In 2024, 98% of virgin fiber raw materials were PEFC, FSC® or SFI® certified, which guarantees that the fiber is
traceable to sustainably managed forests. Most Huhtamaki fiber packaging subsidiaries have chain-of-custody
certification, verifying that they have processes in place to produce certified products, and deliver them to customers
and final consumers. The share of fiber sourced from recycled or certified sources has had minor variations in recent
years. Achieving the final decimals of the target depends on the market availability of certified fiber in specific regions
and customers’ preferences for the fiber used in their products.
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Directors’ Report and Financial Statements 2024 | 66
ESRS E5 Resource Use and Circular Economy
Material impacts and opportunities related to resource use and circular economy
Policies related to resource use and circular economy
Huhtamaki addresses the management of its material impacts and opportunities related to resource use and circular
economy in the Group Environmental Policy, Code of Conduct for Huhtamaki Suppliers, and Design principles for
circularity in our products guideline (“Design Principles”). According to these documents, Huhtamaki is committed to
addressing resource use and circularity through different stages of product life across the value chain, and requires its
suppliers to adhere on the same principles.
The key commitments outlined in the Group Environmental Policy address all identified negative impacts of resource
inflows and outflows. Specifically, these commitments include designing for circularity, minimizing waste in own
production, and working together with stakeholders to find solutions to develop waste management solutions that
increase the actual recycling and composting rates of products. The Code of Conduct for Huhtamaki Suppliers explicitly
requires suppliers to make efforts to reduce the environmental impacts of their operations and safeguard natural
Material impact or opportunity
Description
Applicability
Resource inflows
Negative
impact
Raw material
sourcing
Huhtamaki sources various raw materials for its packaging
manufacturing, including paperboard and paper, plastic resins,
chemicals, and other essential components. Huhtamaki’s
sourcing
practices
can
have
environmental
impacts,
particularly related to the exploitation of natural resources.
Value chain
Resource outflows
Negative
impact
End-of-life
management of
products
Despite Huhtamaki's product design actions to enhance
recyclability and compostability of its products, and its
continuous efforts to increase actual recycling and composting
rates, potential negative impacts regarding resource outflows
remain. These impacts mainly arise from improper end-of-life
treatment, such as inadequate disposal or insufficient recycling
infrastructure, which can lead to waste management
challenges and environmental issues, including microplastic
pollution.
Value chain
Waste, waste management
Negative
impact
Waste
management
Huhtamaki can impact waste management of its products
through product design and operational practices. Negative
impacts can be mitigated by designing products to be
recyclable or compostable, reducing operational waste, and
increasing the share of recycled waste from its operations.
Value chain &
Own
operations
Entity specific
Positive
impact
Food waste
reduction
Huhtamaki’s packaging solutions help reduce food waste by
extending the shelf life of food products. By preserving
freshness and preventing spoilage, these packaging solutions
contribute to lowering GHG emissions associated with food
waste, positively impacting the entire value chain.
Value chain
Opportunity
Business
opportunities in
circularity
Huhtamaki
has
business
opportunities
in
circularity,
particularly
in
developing
recyclable
and
compostable
products. This approach can reduce reliance on virgin
materials, leading to cost savings and improved resource
efficiency. Investing in these areas also enables Huhtamaki to
meet regulatory requirements and consumer demand for
sustainable products, providing a competitive edge and
opening new revenue streams.
Value chain &
Own
operations
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Directors’ Report and Financial Statements 2024 | 67
resources, with a particular focus on raw materials and waste management. Additionally, the code sets expectations for
suppliers to comply with all applicable laws, especially those concerning air emissions, water use and discharge, and
waste disposal. These requirements address material risks associated with raw material sourcing and waste management
and ensure that dependencies on natural resources are managed sustainably.
The circularity and technical capabilities of Huhtamaki’s products significantly depend on design decisions. These
decisions influence material selection, product structure, and product end-of-life management. Circularity-focused
design principles are described in Huhtamaki’s Design Principles guideline. These principles are aligned with the Design
for Recyclability guidelines developed for plastic packaging by RecyClass—a cross-industry initiative facilitating the
transition toward a circular plastic future—and those developed by 4evergreen for fiber-based packaging, a cross-
industry alliance advancing the sustainability of fiber-based packaging. Through these Design Principles, the aim is to
design for circularity that supports the capitalization on related business opportunities, improve the end-of-life
management of products, and enhance waste management within direct operations, all of which have been identified
as material impacts for Huhtamaki. The Group’s packaging solutions' ability to reduce food waste by extending the shelf
life of food products is also driven by these design decisions.
Huhtamaki applies the waste hierarchy in its principles to address waste management and circularity, with the primary
focus being on waste prevention as the first option, followed by preparing for reuse, recycling, other recovery, and as a
final option, disposal. This approach is also supported by Huhtamaki’s resource use and circular economy-related targets,
which are outlined in the Group Environmental Policy and reinforced by the Design Principles. The targets are presented
in more detail in the
Targets related to resource use and circular economy
section on page 66.
Design Principles apply to all Huhtamaki business segments globally, and are approved by Huhtamaki’s Global Executive
Team, which is also accountable for overseeing their implementation. Design Principles are made available to all
interested parties through Huhtamaki’s website. See more detailed description of the Group Environmental Policy and
Code of Conduct for Huhtamaki Suppliers and their implementation in
Policies related to climate change mitigation
section on page 44 and in
Policies related to value chain
workers
section on page 84.
Actions related to resource use and circular economy
Huhtamaki is committed to promoting circularity and the efficient use of resources through product design and raw
material sourcing as well as working together with value chain partners to develop better waste management practices,
both regarding its own operations and product end-of-life.
In 2024, Huhtamaki focused on several activities related to resource use and circularity. Regarding resource inflows,
Huhtamaki maintained its continuous and ongoing collaboration on product development with customers to increase
the share of renewable or recycled content in its packaging solutions, and to increase the share of packaging designed
to be recyclable or compostable. Additionally, certifications were utilized to promote responsible material sourcing,
particularly in the case of virgin fiber materials and aluminum. For fiber-based packaging where the raw material must
be virgin to meet the applicable product safety requirements, FSC®, PEFC (PEFC/02-31-385) and SFI® certified
materials were sourced, ensuring traceability and control over sustainability aspects. In addition to fiber materials, ASI
(Aluminium Stewardship Initiative) certifications were used in the sourcing of aluminum.
During the year, Huhtamaki also continued conducting Life Cycle Assessments (LCA) to compare different material and
processing options for optimal sustainability performance. Huhtamaki also launched new solutions, for example in the
mono-material flexible packaging, which facilitate the recycling of packaging. Design principles for circularity to increase
the share of recyclable and compostable packaging are continuously applied in all aspects of product innovation.
To improve operational waste management, Huhtamaki’s sites established local partnerships with waste management
operators to increase the share of non-hazardous waste directed to recycling. Furthermore, Huhtamaki implemented
Total Productive Manufacturing (TPM) practices and Environmental Management Systems (EMS) at its manufacturing
sites, supporting the development of operational waste management practices.
Regarding packaging end-of-life challenges, Huhtamaki collaborated with value chain partners to improve recycling and
composting in the downstream value chain. Some examples of these include The Cup Collective, a partnership program
focusing on developing at scale paper cup recycling since 2022, and the continued partnership between Huhtamaki and
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Directors’ Report and Financial Statements 2024 | 68
Sporting Kansas City, a US Major League Soccer club, to reduce the stadium’s environmental footprint through improved
waste management. These initiatives also aim to tackle the microplastic pollution originating from packaging that
unintentionally ends up in natural environments.
Although the Group has taken the aforementioned actions to mitigate the identified negative impacts, it has not yet
identified the specific individuals or groups who are actually harmed by its material impacts. As a result, the Group has
no information to disclose on actions taken to provide for, cooperate in, or support the provision of remedies for those
affected.
All activities related to resource use and circularity are conducted on a continuous basis and are expected to continue
in the short- and medium-term. Their scope and direction are guided by Huhtamaki’s strategy, customer needs and
regulatory requirements. Actions are expected to promote circularity in Huhtamaki’s processes and value chain, and to
support the Group’s strategy of becoming the first choice in sustainable packaging solutions. These actions specifically
focus on ensuring that the materials used are chosen consciously and that products can contribute to circularity after
their intended use.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
defined resource use and circular economy-related actions. However, smaller financial resources and other resources
such as dedicated personnel from the Group and segments are designated to support the implementation efforts.
Targets related to resource use and circular economy
* Any claim or classification is a general statement and does not imply that a product can be recycled or composted currently everywhere globally.
The ability to be recycled or composted will depend on the specificities of the recycling programs that consumers or other stakeholders have access
to in each market or geography. As such, the statement does not constitute a recyclability or compostability claim according to ISO 14021, the FTC
Green Guides, the ICC guidance, or any other national, state or local law, regulation or standard. Further information about compostability or
recyclability for specific products, markets or geographies shall be obtained. Independent expert legal advice should be considered before making
composting or recyclability claims in specific markets or geographies or for any specific product.
Huhtamaki’s targets for resource use and circular economy support meeting the related commitments outlined in the
section of ‘Waste and design for circularity’ in the Group Environmental Policy. These targets have been selected for
monitoring as they address resource use and circular economy topics identified as material to Huhtamaki, helping to
track progress toward the ambition of the Group’s 2030 strategy.
The geographical scope of all the targets is global. Performance against the targets is collected monthly from
manufacturing sites, except for the target of designing all products to be recyclable, compostable, or reusable, which is
reported on an annual basis. Huhtamaki adheres to widely accepted definitions for renewable and recycled materials,
as well as for distinguishing between hazardous and non-hazardous waste streams. The target of products designed to
be recyclable, compostable or reusable is calculated based on revenue, whereas all other targets are calculated on a
mass basis.
Target
Scope
2024
performance
Over 80% renewable or recycled materials by 2030
Base year: 2020
Baseline value: 67.3 %
Upstream value
chain
65.4 %
100% of products designed to be recyclable, compostable or
reusable by 2030
Base year: 2020
Baseline value: 70.1 %
Own operations
72.0 %*
Over 90% of the non-hazardous waste from production will be
either recycled or composted by 2030
Base year: 2020
Baseline value: 70.1 %
Own operations
81.6 %
0% of waste sent to landfill by 2030
Base year: 2020
Baseline value: 19.7 %
Own operations
5.5 %
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Directors’ Report and Financial Statements 2024 | 69
Huhtamaki has developed technical criteria to assess the recyclability, compostability, and reusability of its products.
These technical criteria follow the principles of industry guidelines provided by RecyClass for plastic packaging and by
4evergreen for fiber-based packaging. The criteria specify the material composition requirements for products to be
considered as recyclable or compostable. Typical examples of products that qualify for this target include molded fiber,
paperboard, and paper products that have been sufficiently tested according to established methodologies, as well as
Huhtamaki’s blueloop™ solutions.
The targets are not based on legislation but are voluntarily set by Huhtamaki. However, all targets can be considered to
support, for example, the objectives of the EU's Circular Economy Actions Plan. Due to the nature of the targets, it
cannot be concluded whether these are based on scientific evidence. The targets have been set together with
representatives from the business segments and key functions, reviewed by the Global Executive Team, and approved
by the Board. External stakeholder groups were not involved in the target setting process. There have not been any
significant changes in the methodologies of these targets within the reporting year.
Huhtamaki has made good progress towards these targets since the base year 2020, with the exception of the target
related to renewable or recycled materials, which has been slightly stagnant in recent years. However, product
innovation is increasingly relying on renewable and recycled materials, anticipating a positive trend for the performance
of this target in the future.
Huhtamaki’s targets comprehensively address various aspects of promoting circularity. The target on renewable or
recycled materials specifically relates to promoting circular material use rate, sustainable sourcing and use of renewable
sources, and minimizing virgin raw material use. Consequently, this target also positively supports efforts to combat
biodiversity loss caused by unsustainable sourcing practices. The target on products designed to be recyclable,
compostable or reusable specifically addresses circular product design. The two other targets on recycling of non-
hazardous waste and minimizing waste sent to landfill relate to waste management.
Regarding the layers of the waste hierarchy, the targets of the use of renewable or recycled material, products designed
to be recyclable, compostable or reusable, and recycling or composting non-hazardous waste relate to the layer of
recycling, while the last target of sending no waste to landfill pertains to recycling and other recovery, depending on
where the waste is directed instead of landfilling.
Figure 1. Allocation of Huhtamaki’s resource use and circularity-related targets across different waste hierarchy levels and
circularity levers.
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Directors’ Report and Financial Statements 2024 | 70
Resource inflows
Table 8. Resource inflows
Materials used in operations
2024
Overall total weight of products and technical and biological materials
used (t)
1,346,617
Percentage of biological materials and packaging that is sustainably
sourced
29.5 %
The absolute weight of recycled or secondary materials used to
manufacture products and services, including packaging (t)
392,717
Percentage of recycled or secondary materials
29.2 %
Calculation methodologies
The resource inflows outlined in Table 8 are derived from purchase data sourced from sites' ERP systems and reflect
actual invoiced figures. For the percentage calculations of biological and secondary or recycled materials used, the
denominator is the total weight of products and materials reported.
The overall total weight of products and technical and biological materials used includes all Huhtamaki’s raw material
use, including production and maintenance chemicals, fiber materials, plastics, metals, and packaging materials. For the
calculation of percentage of biological materials, Huhtamaki defines ‘sustainably sourced’ as all virgin fiber materials
from sustainably managed forests, certified by Forest Stewardship Council (FSC®), the Programme for the Endorsement
of Forest Certification (PEFC/02-31-385), Sustainable Forestry Initiative (SFI®) or other comparable and reputable
certification schemes. Recycled components include post-consumer (i.e. recycled paper from households) and post-
industrial (i.e. recycled paper from industry) fiber.
The measurement of the metrics is not validated by an external body.
Identified limitations:
Regarding the used packaging materials, only the share of PEFC-certified materials is included to avoid double counting,
as some packaging materials are certified by multiple schemes. PEFC is the most widely used certification scheme for
packaging materials at Huhtamaki.
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Directors’ Report and Financial Statements 2024 | 71
Resource outflows
Table 9. Waste
Calculation methodologies
Huhtamaki’s outflow waste streams, as shown in table 0, are divided into two main categories, non-hazardous and
hazardous waste. These categories include both process waste and maintenance waste. The composition of process
waste includes materials such as paperboard, plastic, aluminum, wood, and cardboard. Maintenance waste comprises
chemicals, used oil and other redundant machine parts, including e-waste. The disclosed waste volumes are based on
actual measurements, with data obtained from various sources such as invoices, weighbridge slips (load weighting), and
the waste management system, depending on site’s technology and processes.
The measurement of the metrics is not validated by an external body.
Huhtamaki has identified the metric on the rates of recyclable content in products and packaging material as material,
but this is currently not reported due to the challenges in data collection. Huhtamaki is committed to developing its
reporting capabilities to be able to report this metric in the short-term future. In the meantime, the target for products
designed to be recyclable, compostable, or reusable provides similar information on Huhtamaki's products' contribution
to circularity.
The expected durability of products is not reported, as this data is not material for Huhtamaki’s packaging solutions.
Identified limitations
As Huhtamaki explores the use of different raw materials, such as bio-based plastics, new waste streams have emerged.
These new waste streams are not fully aligned with current reporting guidelines and, as a result, are not consistently
reported as part of the total waste volumes at some operational sites. Huhtamaki is committed to taking action in 2025
to fully integrate these emerging waste streams into our reporting framework.
Waste
2024
Total waste generated (t)
206,835
The total amount of hazardous waste by weight diverted from disposal (t)
11,561
via preparation for reuse
38
via recycling
11,523
The total amount of non-hazardous waste by weight diverted from disposal (t)
155,574
via preparation for reuse
1,764
via recycling
153,811
The total amount of hazardous waste by weight directed to disposal (t)
4,691
via incineration
4,497
via landfilling
194
The total amount of non-hazardous waste by weight directed to disposal (t)
35,009
via incineration
23,770
via landfilling
11,240
Total amount of non-recycled waste (t)
39,700
Percentage of non-recycled waste
19.2 %
Total amount of hazardous waste generated (t)
16,252
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Directors’ Report and Financial Statements 2024 | 72
Social information
ESRS S1 Own workforce
Material impacts and risks related to own workforce
Material impact or risk
Description
Applicability
Working conditions
Positive
impact
Providing secure
employment
By offering secure employment, and as an example long-term contracts,
in compliance with national and local legislation, the impact can be
significantly positive and enhance job stability and foster engagement
and productivity.
Own
operations
Positive
impact
Facilitating social
dialogue
Encouraging social dialogue between own workforce and management
can lead to better representation and improved workplace relations as
well as increase engagement and motivation.
Own
operations
Negative &
positive
impact
Managing workplace
health and safety
Providing a safe and healthy workplace ensures employee well-being
and increases productivity. Conversely, neglecting workplace safety can
threaten health, increase accidents, and lead to absences or turnover.
By prioritizing safety, Huhtamaki fosters a committed and productive
workforce while mitigating risks.
Own
operations
Entity specific
Negative
impact
Chemical safety in
production process
Own workforce in production may be exposed to various chemicals in
specific parts of the processes. Chemical safety is also identified as a
material topic for Huhtamaki’s sector.
Own
operations
Risk
Financial risk from
shortage of skilled
workforce
The shortage of skilled workforce and talent may pose significant
challenges in resourcing the production lines, potentially leading to
delays in manufacturing processes. While this financial risk may initially
manifest on local or regional levels, it could quickly escalate into a global
issue, thereby increasing associated financial risks.
Own
operations
Equal treatment and opportunities for all
Positive
impact
Inclusivity and
diversity at the
workplace
By fostering an inclusive and diverse workplace, Huhtamaki can fuel
innovation and creativity, increase employee engagement, well-being
and improve customer satisfaction, growth and overall performance.
Own
operations
Negative
&
positive
impact
Gender equality and
equal pay for work of
equal value
Ensuring equal pay for work of equal value fosters an inclusive work
environment and may enhance employee engagement. Conversely,
failing to provide equal pay can lead to negative consequences,
including decreased engagement, increased turnover, and potential
legal and reputational risks.
Own
operations
Positive
impact
Providing regular
trainings and
development
opportunities
Ensuring all employees have access to regular training and development
opportunities results in positive impacts for Huhtamaki’s operations,
such as enhancing employee skills, increasing employee engagement,
improving productivity and overall performance.
Own
operations
The material impacts, risks and opportunities related to Huhtamaki’s own workforce have been identified in the double
materiality assessment, which is described in detail in the
Description of the processes to identify and assess material
impacts, risks and opportunities
section starting on page 31. Huhtamaki's global transformation journey is powered by
systematic development of selected strategic capabilities and commitment to improving safety while empowering talent
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Directors’ Report and Financial Statements 2024 | 73
to succeed. Many of the material topics for Huhtamaki’s own workforce are closely connected with the Group’s 2030
strategy.
The actual and potential impacts on own workforce are linked to Huhtamaki’s strategic ambition to offer the most
engaging, motivating, and safe workplace for its employees. The types of employees in Huhtamaki’s own workforce who
are potentially subject to the material impacts include Huhtamaki’s own employees as well as contingent workers
provided by third-party undertakings. Huhtamaki operates globally in multiple regions, including areas where secure
employment and workplace safety are not necessarily always assured. Therefore, secure employment, social dialogue
and health and safety have been identified as material topics. Through its practices and actions, Huhtamaki can have a
positive impact by offering secure employment and good working conditions at its sites.
To achieve strategic ambitions and enhance efficiency and productivity, a talented workforce is essential. Actions for
talent development and training opportunities are planned accordingly to secure relevant capabilities and skills are in
place to reach the strategic ambitions. The negative impact of the availability of skilled workforce is mainly localized,
and thus the impact to Huhtamaki’s operations varies. The main factors contributing to increased risk are the remote
locations of certain sites, which affects the overall availability of skilled workers, and the competition for skilled labor in
other areas. When addressing the identified positive impacts and opportunities, Huhtamaki can better mitigate the
potential risk of shortage of availability of skilled workforce, thereby reducing financial risks. Employee compensation is
defined in line with local market practices. Huhtamaki recognizes the potential negative impact of not providing equal
pay for equal work could have. However, no systemic or widespread issues have been identified. By fostering inclusion,
equal treatment and diversity, Huhtamaki aims to increase employee engagement and performance.
Safety is the foundation for Huhtamaki’s operations as health and safety issues can have potentially big impacts if
materialized, thus improving safety performance is one of the biggest strategic priorities for Huhtamaki. The health and
safety impacts are systematically connected to Huhtamaki’s operations. Therefore, Huhtamaki aims to control all risks
within its manufacturing processes that could negatively impact its workforce. Negative impacts on chemical safety are
widely distributed across Huhtamaki sites where chemicals are in use, and the severity varies depending on the
technology in use. Huhtamaki is committed to systematically and effectively managing identified health and safety risks,
including chemical safety, to ensure a safe workplace regardless of geographical location. By adhering to local legislation
and internal policies and procedures, Huhtamaki strives to maintain high standards of safety and well-being to enable a
safe and secure working environment for its people.
Policies related to own workforce
Huhtamaki is committed to managing the material impacts, risks and opportunities for all employee groups within its
workforce through policies and practices that focus on well-being, development, and safety. The documents outline the
principles and expectations for consistency in employment, working conditions as well as occupational health and safety
across the organization. The documents are available for Huhtamaki’s own workforce on Huhtamaki intranet, and
everyone is expected to be informed of these policies and act in accordance with them. Key documents are also available
to other external stakeholders at Huhtamaki website.
Document
Key content
Scope
Accountability for
implementation
Group Human Rights
Policy
Huhtamaki’s commitment to respect
human rights within own organization
and its value chain
Own workforce
Workers in the
value chain
Other external
stakeholders
GET
Code of Conduct
Fundamental principles for business
conduct and ways of working at
Huhtamaki
Own employees
BoD, GET
Code of Conduct for
Huhtamaki Suppliers
Minimum ethical, legal, environmental
and social standards for Huhtamaki’s
business partners
Contingent
workers
Workers in the
value chain
GET
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Directors’ Report and Financial Statements 2024 | 74
Group Speak Up and
Investigations Policy
Principles for speaking up and
investigating and addressing suspected
or observed violations or instances of
non-compliance
Own workforce
Workers in the
value chain
Other external
stakeholders
GET
Global Employment
Guidelines
Guiding principles in employment
Own workforce
GET
Huhtamaki Working
Conditions Requirements
Framework to provide fair, safe and
good working conditions in all
Huhtamaki sites
Own workforce
GET
Group Occupational
Health and Safety (OHS)
Policy Statement
Principles on safety, well-being and risk
mitigation in line with industry and other
external requirements
Own workforce
GET
Global Health and Safety
Working Conditions
Overview
Framework to establish minimum
requirements, fair, safe and good
working conditions in all Huhtamaki sites
Own workforce
Workers in the
value chain
GET
Recruitment Policy and
Guidelines
Recruitment principles, roles, and
guidelines
Own workforce
GET
Group Diversity, Equity
and Inclusion Guiding
Principles
Commitment to fostering a diverse,
equitable and inclusive work
environment
Own workforce
Workers in the
value chain
Other external
stakeholders
GET
The policies and guidelines are implemented through day-to-day leadership with the support of the Human Resources
(HR) organization at global, regional and local level to ensure consistent employment practices and experience across
Huhtamaki. Additionally, a mandatory Code of Conduct training is provided annually for every employee. To enhance
awareness on global policies and guidelines, news and articles are shared through targeted newsletters for managers
and HR, as well as through Huhtamaki intranet articles available for everyone in the organization.
Human rights policy commitments
Huhtamaki is committed to respecting human and labor rights across all its operations. The Group Human Rights Policy
expresses the support of internationally recognized principles and frameworks of human rights such as the International
Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. The policy also states
Huhtamaki’s commitment to continuously improving its human rights due diligence processes in alignment with the
United Nations Guiding Principles on Business and Human Rights.
The Group Human Rights Policy outlines a dedication to treating everyone with dignity and respect, ensuring fair
working conditions, and prohibiting discrimination and any form of forced labor or child labor in its own workforce —
and an expectation that Huhtamaki’s suppliers and other business partners do the same. The Global Employment
Guidelines and Working Condition Requirements further emphasize Huhtamaki's stance on these topics for own
workforce.
Huhtamaki’s measures to provide grievance mechanisms and appropriate remedial actions if violations are identified
(see Processes to remediate negative impacts and channels for own workers to raise concerns on page 74). Huhtamaki’s
Group Human Rights Policy recognizes the importance of considering potentially vulnerable and marginalized groups
and Huhtamaki commits to efforts to consider the unique challenges faced by these groups and to ensure their rights
and well-being are respected.
Promoting equal opportunities and preventing discrimination
Huhtamaki has implemented several policies aimed at eliminating discrimination and harassment, while promoting equal
opportunities. The Group Human Rights Policy, Huhtamaki Code of Conduct, as well as Huhtamaki Working Conditions
Requirements outline Huhtamaki’s commitment to diversity and equal employment opportunities. There is also emphasis
on treating everyone with dignity and respect, with no toleration of discrimination in any employment decisions during
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Directors’ Report and Financial Statements 2024 | 75
the employment lifecycle. Disrespectful or inappropriate behavior, unfair treatment, or retaliation of any kind are
prohibited.
The Global Employment Guidelines outline specifically how the prevention of harassment is to be applied to local
policies. All Huhtamaki locations are expected to have appropriate local policies or practices to enforce these principles
within the framework of local legislation. Huhtamaki’s commitment to develop its people at all levels of the organization
is specified in the Global Employment Guidelines.
The Group Recruitment Policy and Guidelines specify that all qualified applicants receive consideration for employment
without discrimination based on age, race, gender, color, religion, national origin, sexual orientation, gender identity,
veteran status, disability, or any other protected category. Huhtamaki’s commitment to advancing well-being and
appropriate treatment of its own workforce is stated in the Group Diversity, Equity and Inclusion Guiding Principles.
Managing workplace safety
The Group Occupational Health and Safety (OHS) Policy Statement and Global Health and Safety Working Conditions
Overview outline Huhtamaki’s commitment to providing a safe, healthy and secure workplace for its people, as well as
its means to mitigate, reduce and prevent workplace accidents while striving for its operations to comply with the highest
available standards. The health and safety management systems cover all activities and Huhtamaki’s own workforce, as
well as contractors and visitors at Huhtamaki premises. The management systems and Global Health and Safety Working
Conditions Overview are constructed based on ISO 45001 standards, and are designed to ensure that all sites comply
with or exceed local regulations and Huhtamaki’s internal requirements. Non-conformances and gaps are regularly
monitored, and the related actions are put in place to prevent recurrence. Huhtamaki's commitment to adhere to
applicable chemical-related legislation and the aim to minimize the consumption of chemicals in production is specified
in the Group Environmental Policy, described in
Policies related to climate change mitigation
section on page 44.
Processes for engaging with own workers and workers’ representatives about impacts
Huhtamaki is committed to engaging with people in its own workforce, with the aim of establishing open two-way
dialogue and feedback mechanisms to continuously improve operations together. This commitment extends to all
locations, including those where legal restrictions to forming and/or joining labor unions exist. Engagement with
Huhtamaki’s own employees as well as employee representatives occur both directly and indirectly with the parties. As
the transition to a sustainable economy in Huhtamaki's operations (see further details in Huhtamaki strategy and
sustainability on page 23) may impact also employees due to for example training or up/reskilling needs, the existing
dialogue mechanisms support in engagement activities.
In Europe, the European Works Council (EWC) unites Huhtamaki's administrative body members and elected EWC
representatives from all Huhtamaki sites once a year. The EWC is hosted by Executive Vice President HR & Safety.
Additionally, a quarterly meeting with the EWC Steering Committee is organized to discuss topical matters which are
jointly decided between the parties.
For Huhtamaki’s own employees, continuous dialogue is enabled through a quarterly global management meeting led
by the President and CEO, and quarterly townhall meetings within business segments and functions hosted by the
respective Business Presidents and functional Executive Vice Presidents. Huhtamaki’s strategy, priorities, business plans
and performance are shared on a regular basis by the respective management, and information is expected to be
cascaded down in the organization. On a local level, roundtable and focus group discussions are organized at sites on a
need-basis to enable dialogue and follow-up of agreed improvement and development actions. The effectiveness of the
engagement and dialogue mechanisms are measured by providing opportunities to ask questions and give feedback
during the meetings. At sites where Huhtamaki has recognized unions, more formal regular meetings are organized to
discuss working conditions, grievances, and working practices, and to conduct statutory negotiations when applicable.
To foster effective consultation and engagement on health and safety matters, various activities are conducted at
Huhtamaki sites. All sites have a safety committee consisting of own employees and site management. The committees
are designed to encourage trust and transparency, and the groups are trained in all aspects of safety, leadership and
communication to ensure Huhtamaki provides a safe working environment. The committees’ activities include
discussions in leadership team meetings, meetings with employees, and other gatherings where workers are consulted.
Active communication on these topics is facilitated through information boards and the Huhtamaki intranet. Attendees
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Directors’ Report and Financial Statements 2024 | 76
participate in these engagements during their working hours and are provided with any required support by safety
representatives to fulfill their roles in these forums.
Huhtamaki’s annual employee engagement survey, Connect, provides all own employees the opportunity to address
their perspective and give feedback on material topics affecting them. Based on the results and feedback gained from
the survey, actions are planned at different levels of the organization. Additionally, annual performance reviews and
development discussions provide a formal opportunity for a dialogue between employee and manager. Aside from
formal discussions, Huhtamaki encourages asking for, and offering, regular feedback.
Processes to remediate negative impacts and channels for own workers to raise concerns
Huhtamaki encourages reporting of any suspected or observed violations or misconduct through various channels,
including the anonymous Huhtamaki Speak Up channel. All reports of potential human rights violations or breaches of
the Huhtamaki Code of Conduct are taken seriously and investigated according to the Speak Up and Investigations
Policy, with the aim of ensuring alleged violations are appropriately addressed and remedied. Reporting is open to both
Huhtamaki’s own workforce and external stakeholders. Detailed procedures and channels for reporting and investigation
are outlined in section Mechanisms for identifying, reporting and investigating concerns on page 94. To ensure the
availability and accessibility of channels for raising concerns, Huhtamaki promotes awareness and access to these
channels through annual, mandatory Code of Conduct trainings, and speak-up themed posters available in 24 languages.
For more details, refer to Business conduct polices and corporate culture section on page 93.
The Huhtamaki Ethics and Compliance Committee monitors and tracks issues raised and addressed in accordance with
the procedure outlined in the Speak Up and Investigations Policy. They follow up on reported incidents and review the
mitigating activities. In an effort to ensure the effectiveness of its reporting channels, Huhtamaki provides regular
training and communication about the channels to its employees. The Global Ethics and Compliance team oversees
actions and processes followed by the global or local investigation teams, so investigation procedures are independent,
objective, and effective.
Local grievances related to workplace issues or employment concerns are investigated and addressed according to local
regulatory requirements. Huhtamaki’s management at each level is responsible for resolving daily workplace concerns
impacting employees in a prompt and fair manner within the course of normal working relationships. Formal grievance
procedures vary by country and are managed by local HR in line with local regulations. All formal grievances are
documented according to local regulatory requirements. Guidelines and policies outline the processes to help ensure
employees can express complaints and receive a fair hearing and investigation. This includes an escalation and appeals
process with clear responsibilities and decision-making protocols.
Remediating health and safety impacts
Health and safety are core values at Huhtamaki, reflecting the nature and scale of the operations, and their impact on
people, customers, communities and the environment. A culture of managing and safeguarding health and safety is
embedded at all levels of the organization. Huhtamaki promotes a proactive and preventive approach to identifying,
mitigating and remediating actual and potential negative impacts. Continuous learning, improvement and collaboration
is emphasized across the organization. By reinforcing the mindset of "Think Safe. Work Safe. Home Safe." in all actions,
Huhtamaki strives to embed safety into its culture.
Each site adheres to a risk-based approach for managing health and safety. A proactive and preventive strategy, as
outlined by the World Class Operations (WCO) Safety Pillar, is in place to identify risks and potential hazards at an early
stage. Appropriate control measures are applied using the hierarchy of controls, with actions tracked through to
completion. Employees have access to a platform for reporting any unfair, unsafe, or unhealthy working conditions,
allowing Huhtamaki to respond and address issues promptly. A formally defined investigation process for work-related
incidents is in place at all sites, ensuring consistent review, response, follow-up, and escalation. Sites are encouraged to
systematically share learnings from serious incidents, both within their business segment and across the global network.
Actions related to own workforce
Huhtamaki's people priorities and actions related to its own workforce are aligned to support the execution of the 2030
strategy. Huhtamaki has set measurable, outcome-oriented and time-bound targets for employee engagement,
leadership, inclusion, voluntary turnover and health and safety. These targets enable Huhtamaki to track and assess the
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Directors’ Report and Financial Statements 2024 | 77
effectiveness of its actions in addressing material impacts, risks and opportunities impacting its workforce. Targets are
set annually, with most actions recurring each year. Some initiatives, such as the WCO Safety Pillar, are designed as
multi-year programs. The processes through which Huhtamaki identifies necessary actions, in response to actual or
potential negative impacts on its workforce and engages with this stakeholder group, are outlined above in this section.
Overall, the implementation of Group policies in the organization establishes the foundation for addressing different
potential impacts on the workforce and resources from all levels (global, regional and local) of the HR and EHS
organizations are dedicated to managing the material impacts. Huhtamaki does not currently have significant operational
or capital expenditures allocated for the implementation of the defined own workforce related actions, but smaller
financial resources in addition to the dedicated personnel are designated to support the implementation efforts.
Actions to prevent and mitigate negative impacts
To foster a robust safety culture, Huhtamaki provides site and job-specific health and safety trainings as part of the
induction process for all new employees. Segment or technology-specific content is available through an online training
platform. Additionally, contractors receive a site-specific health and safety induction tailored to their work area, ensuring
awareness of the unique risks related to their tasks. Huhtamaki has integrated health and safety into its comprehensive
operational improvement approach, so that it is prioritized as an integral part of operational performance. The health
and safety strategy was further advanced with a focus on the development and implementation of the holistic WCO
Safety Pillar initiative, which aims to ensure that all accidents are reported, investigated, and the learnings shared across
the organization. The Safety Pillar consists of 7 different Steps which will be launched one step at a time, with support
from the EHS organizations. By the end of 2024, all Huhtamaki locations have been trained on Step 1, and Step 2 has
been launched at all manufacturing sites.
Monthly risk reviews are conducted to identify areas for improvement, with site and segment leadership teams
overseeing the health and safety risks and support improvement plans. Huhtamaki requires all its sites to conduct
occupational health risk assessments for all activities that adhere to local legal requirements regarding the scope and
frequency of medical and health checks. Programs are set for annual delivery, and they are tracked and reported
monthly. To mitigate the negative impact of chemical safety, Huhtamaki has implemented hazardous material standards,
control processes and management system tracking.
All employees have access to locally contracted occupational health services. Some sites have a permanent doctor
and/or nurse on-site, while others have a contract with a nearby health service center. Additional health services and
programs are provided at many sites to support employees’ overall well-being and health. Participation in such additional
programs is voluntary.
To address the availability of skilled workforce and tight talent markets, Huhtamaki systematically identifies and
addresses retention drivers locally. Through the global HR organization, local and regional initiatives have been shared
to drive employee retention. An exit questionnaire has provided Huhtamaki valuable insights into how to improve
retention and engagement with employees. The employee turnover rate is continuously monitored in all parts of the
organization, and the voluntary turnover is set as an official target at Group level.
Actions for achieving positive impacts
Huhtamaki is committed to ensuring equal training, development and progression opportunities are provided for its
employees. To support the development of such strategic capabilities and careers, which are essential for delivering on
the 2030 strategy, Huhtamaki has implemented programs and deployed several initiatives in 2024. These include
the annual review of individual development plans for non-production employees, the annual Global Week(s) of
Learning event, the launch of Trace Your Own Path toolbox and e-learning, the Strategic Leadership Program, the launch
of the Project Management toolbox, and the Job Opportunity Board and internal recruitment guidelines. Additionally,
Huhtamaki piloted the Career Hub, a new global tool to support employee development and internal mobility. Employee
development is further supported through a mentoring program, and in 2024, Huhtamaki finalized a global pilot program
for coaching. Huhtamaki has also raised awareness on inclusion and diversity through communications campaigns, and
has renewed its Code of Conduct training. The learning and competence development of production employees is
addressed through an Education and Training pillar within the WCO program. In 2024, further manufacturing sites have
launched the pillar to upskill employees. These actions support employees in their personal and professional
development, with the aim to contribute to the overall performance of Huhtamaki.
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Directors’ Report and Financial Statements 2024 | 78
Huhtamaki follows the effectiveness of its training and skills development activities by asking for feedback from its
employees. The effectiveness of the individual development actions is discussed together with the manager during
performance reviews and development discussions for non-production employees.
Targets related to own workforce
Huhtamaki’s targets related to its employees are focused on employee engagement and retention, leadership, inclusive
culture and safety, and they are aligned with the Group policies. These targets that are aligned with Huhtamaki's
strategic ambitions, are set to measure progress in value-creation for its own employees. The aim is to reduce negative
impacts, advance positive impacts, as well as manage material risks and opportunities. The approach to stakeholder
engagement and target setting methodology differs according to the target. Further action planning is done on an annual
basis, depending on the outcomes against set targets. Huhtamaki’s own employees or their representatives are not
directly involved in the Group level target setting process for any of the abovementioned targets.
Huhtamaki's employee engagement survey is conducted annually to measure the development of the performance
against the targets. All Huhtamaki employees are given the opportunity to participate in the survey, except for those
who have been employed for less than three months before the survey begins. Key indicators used to measure progress
against the targets include different indices Huhtamaki monitors annually based on the survey results. The Employee
Engagement Index measures how engaged, enabled and energized employees are at work, the Inclusion Index measures
employee experience with regard to equal opportunity and inclusion in the workplace, and the Leadership Index
measures the effectiveness of Huhtamaki’s managers. The index scores are derived from responses to specific questions,
assuming honest feedback and an accurate representation of the entire workforce. However, they may be affected by
response bias and external factors. For these indices, Huhtamaki aims to surpass the manufacturing industry benchmark
levels, which are measured and provided annually by Willis Towers Watson. No significant assumptions have been made
when setting these targets. The key stakeholder in the decision-making process is the GET. The results of the surveys
are presented annually to all employees as well as employee representative groups such as the EWC. Employees are
also closely involved in identifying necessary actions to further improve.
Huhtamaki strives to create a workplace that not only attracts but also successfully retains talent. By setting an annual
voluntary turnover target to lower level compared to the external global benchmark, Huhtamaki can assess the success
and opportunities related to efforts to attract talent and retain skilled workers. The Huhtamaki HR leadership team is
involved in setting the target. The annual workforce movement data from Mercer serves as the external benchmark
when setting the target. The voluntary turnover rate is calculated from termination events (excluding reason codes
Target
Scope
Annual
target
2024
performance
Employee Engagement Index above
manufacturing industry benchmark
Base year: 2021
Baseline value: 77%
Own employees,
globally
>82%
85%
Leadership Index above manufacturing industry
benchmark
Base year: 2021
Baseline value: 72%
Own employees,
globally
>80%
84%
Inclusion Index above manufacturing industry
benchmark
Base year: 2023
Baseline value: 83%
Own employees,
globally
>79%
85%
Voluntary Turnover below global benchmark
Base year: 2022
Baseline value: 10.4%
Own employees,
globally
<9.6%
8.6%
Lost Time Injury Frequency Rate (LTIFR)
Base year: 2021
Baseline value: 1.36
Own employees,
globally
1.75
1.21
Total Recordable Injury Frequency Rate (TRIFR)
Base year: 2021
Baseline value: 4.29
Own employees,
globally
3.27
2.66
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Directors’ Report and Financial Statements 2024 | 79
retirement, mutual agreement, end of assignment) as recorded to Huhtamaki's Human Resources Information System
(HRIS) system. It is assumed that the information has been recorded to the system in a timely and accurate manner.
Tracking performance and identifying necessary initiatives to manage voluntary attrition are tasks handled by
Huhtamaki’s HR organization, without direct involvement from own employees from the rest of the organization or
employee representative groups. Such projects or initiatives support addressing areas where there is risk of availability
of skilled workforce and talent. Furthermore, exit interviews support Huhtamaki with positive impacts on engaging with
stakeholders and gaining important insights.
Continuous improvement of safety performance is a priority at Huhtamaki to identify risks related to health and safety,
including hazards associated with chemicals and implement control programs to eliminate or minimize the risks
identified. Global targets for Lost Time Injury Frequency Rate (LTIFR) and Total Recordable Injury Frequency Rate
(TRIFR) are set to measure the progress and ensure that the commitment and expectation expressed in the Global
Health and Safety (OHS) Policy Statement are met year by year. The global targets are based on the previous year’s
results to meet the long-term ambitions set for 2030. The targets are approved by the Group’s Safety Committee. The
methodology and assumptions for calculating the rates have been described in more detail in the
Reporting principles
for own workforce related metrics
section on page 80. Performance against the set targets is regularly communicated
to employees through various channels, including monthly dashboards, occasional intranet articles, quarterly updates
from the President and CEO, and employee newsletters. The performance results are also presented annually to
employee representative groups such as the EWC. Employees can suggest improvements informally or formally through
channels like the employee engagement survey.
Characteristics of Huhtamaki’s employees
Table 10. Employee headcount by gender
Table 11. Employee headcount in countries with at least 50 employees representing at least 10% of its total number of employees
Country
Number of employees (headcount)
United States of America
4,205
India
2,517
Germany
1,332
United Kingdom
1,201
Türkiye
1,125
Thailand
911
Poland
688
Egypt
654
South Africa
648
China
579
Spain
503
Netherlands
451
Vietnam
409
Finland
354
Australia
344
Gender
Number of employees (headcount)
Male
13,653
Female
4,140
Other
-
Not reported
1
Total employees
17,794
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Directors’ Report and Financial Statements 2024 | 80
United Arab Emirates
301
Czechia
288
Brazil
277
France
236
Italy
167
Ireland
145
Mexico
127
Saudi Arabia
116
New Zealand
68
Table 12. Employees by contract type broken down by gender
Table 13. Employees by contract type, broken down by region
Table 14. Employee turnover in reporting period
Type
Female
Male
Other
Not
disclosed
Total
Number of employees
4,140
13,653
1
17,794
Number of permanent employees
3,805
13,160
1
16,966
Number of temporary employees
319
482
801
Number of non-guaranteed hours
employees
16
11
27
Number of full-time employees
3,921
13,494
1
17,416
Number of part-time employees
219
159
378
Type
Asia &
Oceania
Europe
Middle East
& Africa
North and
South
America
Number of employees
4,895
6,570
1,720
4,609
Number of permanent employees
4,488
6,193
1,698
4,587
Number of temporary employees
400
357
22
22
Number of non-guaranteed hours
employees
7
20
-
Number of full-time employees
4,885
6,226
1,718
4,587
Number of part-time employees
10
344
2
22
Type
Turnover
Total number of employees who have left the undertaking during the reporting
period
2,886
Rate of employee turnover in the reporting period (%)
17.1
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Directors’ Report and Financial Statements 2024 | 81
Social dialogue
Table 15. Social dialogue in EEA countries
Diversity metrics
Table 16. Diversity metrics
Coverage Rate
Social dialogue
Workplace representation by EEA country
0-19%
Ireland
20-39%
40-59%
Finland
60-79%
80-100%
France, UK, Germany, Italy, Spain, Poland, Netherlands, Czechia
Employee group
Male N
Male %
Female N
Female %
Total
Top management
7
78 %
2
22 %
9
Employees under 30 years old
2,559
80%
640
20 %
3,199
Employees 30-50 years old
7,819
77 %
2,385
23 %
10,204
Employees over 50 years old
3,090
74 %
1,060
26 %
4,150
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Directors’ Report and Financial Statements 2024 | 82
Health and safety indicators
Table 17. Health and safety metrics
Compensation indicators (pay gap and total compensation)
Table 18. Gender pay gap and total remuneration
Reporting principles for own workforce related metrics
Calculation methodologies
The headcount information is based on the employment data registered to Huhtamaki’s HRIS system at the end of the
reporting period (December 31, 2024). The figures encompass all entities within the Huhtamaki Group, including inactive
employees on long-term leave as of the reporting date. Employment information is recorded according to national laws,
but the consolidated figures in this sustainability statement follow aligned Group definitions.
The information reported under the notes to the consolidated financial statements (section 2.2. Employee Benefits), is
based on the average headcount number for the reporting year, in accordance with the Finnish Accounting Decree.
Temporary employees include fixed-term employees, apprentices and interns. Part-time employees are employees who
have less contractual scheduled weekly working hours than the default working hours of the location. Temporary or
part-time employment is primarily utilized to manage business seasonality and to cover employee leaves. If utilizing
fixed-term agreements, the respective country’s legislation is followed.
Health and safety metrics
2024
Percentage of people in its own workforce who are covered by health and safety
management system based on legal requirements and (or) recognized standards or
guidelines
46.2%
Number of fatalities in own workforce as result of work-related injuries and work-
related ill health
0
Number of fatalities as result of work-related injuries and work-related ill health of
other workers working on Huhtamaki’s sites
0
Number of recordable work-related accidents for own workforce and contractors
(total)
108
Number of recordable work-related accidents for own employees
92
Number of recordable work-related accidents for contingent workers
12
Number of recordable work-related accidents for contractors
4
Rate of recordable work-related accidents for own workforce (total)
2.66
Rate of recordable work-related accidents for own employees
2.66
Rate of recordable work-related accidents for contingent workers
2.01
Number of days lost to work-related injuries and fatalities from work-related
accidents for own workforce (total)
1,752
Number of days lost to work-related injuries and fatalities from work-
related accidents for own employees
1,719
Number of days lost to work-related injuries and fatalities from work-
related accidents for contingent workers
33
Remuneration metrics
Data
Gender pay gap
-11.7%
Annual total remuneration ratio
147.2
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Directors’ Report and Financial Statements 2024 | 83
Employee turnover rate is calculated by dividing the number of all termination events in all employee groups by the
average number of own employees during the reporting period.
Social dialogue information is based on operational site level assessments on whether the employees of a selected site
have selected workplace representation. The percentage is then calculated based on totaling individual sites’ headcounts
by country.
In the diversity table, the Top management includes the President and CEO and GET members of the Group. The Top
management is excluded from the other Employee group figures.
The health and safety metrics are based on data reported using Huhtamaki’s sustainability reporting tool and extracted
after the end of the reporting period (December 31, 2024). The figures encompass all operational sites and relevant
office locations within the Huhtamaki Group. It is assumed that the information has been recorded to the system in a
timely and accurate manner.
The percentage of workers covered by a health and safety management system is determined by identifying the sites
that are certified according to a recognized standard or guideline and counting the number of people working at those
sites. The headcount of the certified sites is then compared to the total number of people in the workforce to calculate
the final percentage.
The absolute numbers of accidents include accidents for which Huhtamaki has taken responsibility, due to direct
supervision of the work or project management duties, and therefore include accidents of its own workforce (own
employees and contingent workers) and contractors.
The rates of recordable work-related accidents are collected at year-end and calculated by dividing the number of
recorded accidents at each site by the total working hours for the year, then multiplying by a factor of 1 million (a
commonly used international standard to ensure consistency and comparability).
To calculate the number of days lost, the number of lost time hours is extracted from the sustainability reporting tool.
An 8-hour day is used as the standard to convert the total hours into days lost.
The unadjusted gender pay gap percentage is determining the Group level difference in the average pay levels between
gender demographic (female and male employees), regardless of any other relevant factor. The calculation is based on
the predefined formula, which does not consider any objective factors explaining the differences in pay between
Huhtamaki countries, such as location, job category, employee group, level of the job or any other legitimate criteria.
The annual total remuneration ratio shows the relationship between the annual total compensation for Huhtamaki's
median employee in the financial year 2024 and that of the highest paid individual, the President and CEO. The data
for the President and CEO is based on the disclosed information on the Remuneration Report 2024, including non-
variable annual base salary and benefits, short-term incentives and long-term incentives. The data for the median
employee (excluding the highest paid individual) from Huhtamaki’s total global workforce was determined based on data
recorded to the HRIS system at the end of the reporting period (December 31, 2024). When determining the median
employee, none of Huhtamaki’s 36 countries or employee groups were excluded.
The measurement of the metrics is not validated by an external body.
Identified limitations
Any fluctuations in headcount numbers during the reporting period are not reflected in the reported numbers, as they
are collected at the end of the reporting period only.
For workplace representation, only the existence of a selected representative on each site has been assessed. Therefore,
it is possible that not everyone from the site’s headcount is able to join this representation, e.g., based on the type of
work they do compared to the representation.
At the time of the data gathering, there were 232 employees without a recorded date of birth in the HRIS system.
Therefore, these individuals are excluded from the diversity metrics table as they could not be correctly categorized,
furthermore one of these individuals had not disclosed gender either.
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Directors’ Report and Financial Statements 2024 | 84
Although there are no clear limitations for health and safety reporting, estimation of December working hours may be
needed as some sites may not have finalized figures available when data is extracted for year-end reporting. The rates
encompass accident data for both Huhtamaki’s own workforce and contractors. However, due to limitations in tracking
contractor working hours, these hours are excluded from the rate.
In the calculation of gender pay gap percentage and the median base compensation for the annual total remuneration
ratio, annual total un-prorated compensation has been used without considering country-level differences in weekly
working hours. All salaries, fixed allowances, and incentives have been based on target and/or contractual levels. Actual
variable benefits and allowances, such as overtime or shift allowances are excluded, as data is not available in the HRIS
system. To enable the comparison, all amounts were annualized and converted to EUR using the effective exchange
rate within the HRIS system (July 1, 2024).
ESRS S2 Workers in the value chain
Material impacts related to workers in the value chain
The material impacts, risks and opportunities related to workers in Huhtamaki’s value chain have been identified in the
double materiality assessment, which is described in detail on page 31 onwards.
Material impact
Description
Applicability
Working conditions
Negative
impact
Facilitating social
dialogue for value
chain workers
Huhtamaki’s value chain extends to some locations and
industry sectors where there is a risk that social dialogue
between workers and supervisory bodies or management
is not conducted, either in practice or in good faith,
because it is not required or enforced by law or
regulation.
Value chain
Negative
impact
Representation of
value chain workers in
trade unions or work
councils
Huhtamaki’s value chain extends to some locations where
freedom of association is restricted by law.
Value chain
Negative
impact
Possibilities of
collective bargaining
for value chain
workers
Huhtamaki’s value chain includes countries and regions
where collective bargaining is restricted by law.
Value chain
Negative
impact
Managing workplace
health and safety for
value chain workers
Huhtamaki's value chain extends to countries and sectors
where there is a risk that suppliers operate without
sufficient health and safety management systems in place.
Huhtamaki can mitigate the risk by ensuring suppliers have
adequate health and safety management systems in place.
Value chain
Entity specific
Negative
impact
Chemical safety in
Huhtamaki’s value
chain
Huhtamaki sources materials that require the use of
chemicals in the production process, which can negatively
impact workers' health and safety. Some value chain
operations are located in high-risk countries and sectors.
Huhtamaki can mitigate the risk by ensuring that suppliers
have adequate health and safety management systems in
place.
Value chain
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Directors’ Report and Financial Statements 2024 | 85
Huhtamaki’s supplier networks consist of global key suppliers and a large number of local partners located close to the
manufacturing sites. The company works with approximately 20,000 suppliers globally who provide a range of goods
and services for manufacturing and delivering packaging solutions to Huhtamaki’s customers close to where they need
them.
Huhtamaki’s value chain includes countries where work can be precarious, short-term, or informal; and where insecure
employment is commonplace. It also includes countries where freedom of association and collective bargaining is limited
either through the law or through common practice. These and other factors can pose a higher risk of exploitation for
workers. This can make it more difficult for workers to engage in social dialogue without fear of reprisal, seek
representation in a trade union or work council, or engage in collective bargaining.
Huhtamaki’s value chain also extends to some countries and industries with comparatively weaker regulations and/or
enforcement around health and safety and chemical safety management.
Huhtamaki also can potentially support job continuity and creation indirectly through its global network of goods and
services suppliers, and has an opportunity to use its leverage to uphold or even raise standards in its value chain.
Huhtamaki is committed to respecting human and labor rights across all its operations, including workers in the value
chain. Huhtamaki’s 2030 strategy takes this into account. The Group has developed policies and practices to assess,
mitigate, remediate and track its potential negative impacts, and is continuously developing its approach. Huhtamaki has
not identified material risks and opportunities arising from impacts or dependencies on workers in the value chain.
The value chain workers whose rights are likely to be materially impacted by Huhtamaki, either directly or indirectly,
include:
1.
third-party goods and services providers at Huhtamaki’s sites, including third-party canteen workers,
cleaning service providers, and others;
2.
workers in the upstream value chain, including those working for direct suppliers in paperboard, resin, film,
ink and solvent production, recycled paper and fiber collection, aluminum production, as well beyond tier
1, including the extraction, harvesting, refining and transformation of raw materials like timber, bauxite and
feedstock for plastics;
3.
downstream goods and services providers, including workers in logistics, and distribution or warehousing
activities, as well as workers for operations providing goods and services related to the maintenance and
operations of Huhtamaki’s own production, energy production or transmission, waste and recycling
management, and other activities;
4.
workers in the above categories with heightened vulnerability due to inherent characteristics or contexts,
such as migrant workers, informal workers or young workers. These include migrant and immigrant workers
who provide services at Huhtamaki sites and informal waste collectors
Given Huhtamaki’s vast value chain, the company’s operations can cause, contribute, or be linked to negative impacts
on value chain workers described above. Some of these material negative impacts are systemic in specific countries or
commodities. The rights to social dialogue, freedom of association and collective bargaining, for instance, are challenged
or curtailed in some countries in which Huhtamaki operates. Impacts to health and safety, and in particular chemical
safety are of concern in the manufacturing processes for the materials Huhtamaki sources, including paperboard, resins,
films, inks, solvents and aluminum. Negative impacts can result from workplace accidents or incidents such as machinery
accidents, air quality violations, inadequate fire safety measures, chemical spills and leaks, or excessive noise and heat.
Huhtamaki can reduce the risk of negative impacts on supplier work environments by requiring and checking compliance
with the standards in the Code of Conduct for Huhtamaki Suppliers.
Based on Huhtamaki’s materiality assessment, workers likely to be negatively impacted are those in geographical
locations without strong employment and safety regulations or enforcement mechanisms; areas and industries that rely
on migrant or irregular workers or other vulnerable workers at risk of labor exploitation; areas considered to have higher
levels of corruption or weaker access to justice or trust in the rule of law; and areas where freedom of association,
collective bargaining and access to social dialogue are not recognized, tightly controlled, or not respected.
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Directors’ Report and Financial Statements 2024 | 86
Policies related to value chain workers
Huhtamaki is committed to respecting human rights in its own organization and in the value chain, consistent with
internationally recognized principles and frameworks. These commitments are outlined in the Group Human Rights
Policy, which is further described in the
Policies related to own workforce
section on page 71, as well as the Code of
Conduct for Huhtamaki Suppliers (“Supplier Code”), and the Group Guiding Principles for Responsible Procurement.
Code of Conduct for Huhtamaki Suppliers
The Code of Conduct for Huhtamaki Suppliers outlines the minimum standards of ethical business conduct, and the
social and environmental responsibility Huhtamaki’s partners are expected to comply with, as well as expectations to
develop appropriate control systems, permit third-party verification, and address non-compliances. The Supplier Code
applies to all business partners providing goods or services to Huhtamaki and is an integral part of the business
relationship.
The Supplier Code sets requirements that directly address Huhtamaki’s material negative impacts related to workers in
the value chain. With respect to managing health and safety and chemical safety, the Supplier Code sets requirements
for suppliers to provide workers with a safe and healthy work environment. This includes taking measures to prevent
workplace hazards including implementing appropriate systems and work procedures as well as provide training,
personal protective equipment and medical care. The Supplier Code also communicates the requirement to respect
workers’ rights to freedom of association, social dialogue and collective bargaining, and further lays out expectations to
conduct worker trainings and operate effective feedback channels and grievance mechanisms. The suppliers are
expected to apply these standards to all their workers, to their subcontractors, and their suppliers.
The Code of Conduct for Huhtamaki Suppliers is approved by the Global Executive Team. The responsibility for
cascading the policy standards to Huhtamaki’s first-tier suppliers sits with the procurement teams. It is available on
Huhtamaki’s website in 6 languages and dialects and is incorporated into the company’s General Terms and Conditions
for Purchasing and communicated at various steps of the procurement process. In 2024, Huhtamaki initiated a project
to incorporate language into purchase orders across all sites that communicates expectations to adhere to the Supplier
Code, as well as the availability of the Speak Up channel for reporting any suspected violations, with updates confirmed
at all but four sites by the end of the year.
Huhtamaki centrally monitors its key suppliers’ acceptance of the standards in the Code of Conduct for Huhtamaki
Suppliers.
Group Guiding Principles for Responsible Procurement
The Group Guiding Principles for Responsible Procurement outline Huhtamaki’s commitment to developing a risk-based
human rights due diligence approach, based on severity and likelihood, in order to prioritize material impacts in the value
chain. This includes assessing and monitoring Huhtamaki’s suppliers’ actual and potential impacts on human rights,
operating accessible, confidential, and effective grievance mechanisms, working with suppliers to take mitigating or
remedial action, and tracking and communicating impact with an eye toward continuous improvement.
The Group Guiding Principles for Responsible Procurement are approved by Huhtamaki’s Business Presidents.
Responsibility for allocating sufficient resources to manage supplier due diligence activities sits with the Global Executive
Team. The Principles are available on the company’s website.
Huhtamaki’s Group Human Rights Policy, the Group Guiding Principles for Responsible Procurement, and the Code of
Conduct for Huhtamaki Suppliers communicate the company’s commitment to human rights due diligence frameworks
in line with the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for
Multinational Enterprises on Responsible Business Conduct.
The Code of Conduct for Huhtamaki Suppliers also articulates expectations that suppliers respect human rights and
labor rights consistent with internationally recognized human rights and labor rights instruments, such as the
International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. This includes:
•
A safe and healthy work environment
•
No discrimination or harassment
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Directors’ Report and Financial Statements 2024 | 87
•
Freedom of Association, collective bargaining, and social dialogue
•
Reasonable work hours
•
Fair and timely compensation
•
No child labor or forced labor
Huhtamaki relies primarily on its suppliers to engage with its workers and then monitors supplier compliance with its
most material human rights issues using a risk-based approach. These are based on inherent risk factors that includes
the size of spend, strategic importance, country, and supplier type. Selected key suppliers are monitored at the group
level, including through ongoing screening and monitoring as well as supplier assessments and audits, further described
in the
Actions related to workers in the value chain
section on page 86.
Value chain workers or other individuals who suspect workplace violations related to health and safety, chemical safety,
freedom of association, collective bargaining social dialogue, or any other human rights matter, can make a report directly
to Huhtamaki through the Huhtamaki Speak Up Channel, which is managed by Huhtamaki’s Global Ethics and
Compliance team. Cases of potential noncompliance, including potential human rights violations, are handled in
accordance with the Group Speak Up and Investigations Policy and overseen by Huhtamaki Ethics and Compliance
Committee. More information can be found in the Business Conduct section on page 94, covering the Mechanisms for
identifying, reporting and investigating concerns.
Huhtamaki has additional policies in place related to human rights and responsible procurement that apply to the
management and expectations of Huhtamaki value chain partners. These policies include the Huhtamaki Code of
Conduct and the Group Procurement Policy. All above policies and guidelines are available to internal stakeholders on
the Huhtamaki intranet, and all, but the Group Procurement Policy, are also available publicly on the Huhtamaki website.
Processes for engaging with value chain workers about impacts
Huhtamaki is committed to engaging with affected stakeholders in its value chain. The company has established health
and safety management systems at its own sites that cover all activities of its own workforce, contractors and visitors
at Huhtamaki premises. For further details see
Policies related to own workforce
section on page 71.
Outside its own sites, Huhtamaki has not adopted a general process to engage directly with other workers in the value
chain. Huhtamaki’s current mode of engagement with other workers in the value chain is primarily indirect, as the Group
focuses on supplier dialogue and reviewing social compliance audits where worker interviews are conducted. Value
chain workers can voice concerns directly to Huhtamaki through the Speak Up Channel.
Processes to remediate negative impacts and channels for value chain workers to raise concerns
Health and safety management systems at Huhtamaki’s own sites further cover remediation activities of its own
workforce, as well as contractors and visitors at Huhtamaki premises.
If a potential or actual negative material impact is identified through the course of Huhtamaki’s monitoring activities, for
instance through a social audit or an adverse media alert, Huhtamaki reaches out to the supplier to request further
information and to request the supplier remediate the non-compliance, and to ask how the supplier plans to make
improvements that reduce the chances of a similar adverse impact.
In addition, Huhtamaki operates a Speak Up channel through which all stakeholders, including value chain workers, can
raise concerns about potential human rights violations that will then be investigated and addressed. Grievances are
treated confidentially.
Huhtamaki aims to make the Speak Up channel easily available. It is accessible through the company’s website and can
be initiated in more than 20 languages. Links to the Speak Up channel are also repeatedly communicated to Huhtamaki’s
suppliers through the Code of Conduct for Huhtamaki Suppliers, as well as through contractual documents such as
purchase orders. In addition, adherence to the standards in the Code of Conduct for Huhtamaki Suppliers is included in
Huhtamaki’s General Terms and Conditions of Purchasing.
The process for addressing potential misconduct or human rights violations is outlined in the organization’s internal
Group Speak Up and Investigations Policy. The policy sets forth principles for investigating and responding to alleged
violations, with a strict prohibition against retaliation and a commitment to prioritizing the safety and well-being of
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Directors’ Report and Financial Statements 2024 | 88
affected individuals in the case of a potential human rights violation. Corrective actions and remedy are determined on
a case-by-case basis. The Huhtamaki Ethics and Compliance Committee follow up on the reported incidents regularly.
Huhtamaki does not currently have a formalized process in place to assess awareness and trust of the Group’s grievance
mechanisms by workers in the value chain.
More information can be found in the Business Conduct section on page 94, covering the Mechanisms for identifying,
reporting and investigating concerns.
Targets related to workers in the value chain
Currently, Huhtamaki does not have measurable, outcome-oriented, and time-bound targets in place to address workers
in the value chain-related matters and the material negative impacts due to ongoing developments. However, Huhtamaki
is committed to respecting human rights in its organization and throughout the value chain, which guides the company’s
actions towards the workers in the value chain. Huhtamaki intends to set specific targets in the medium term, for which
the work is currently ongoing. Huhtamaki nevertheless assesses the effectiveness of its policies and actions by tracking
its key suppliers’ commitment to the standards outlined in the Code of Conduct for Huhtamaki Suppliers.
Actions related to workers in the value chain
Huhtamaki maintains health and safety management systems at its own sites to prevent, mitigate and remediate material
negative impacts related to health and safety and chemical safety to all workers at Huhtamaki premises, including
contractors and visitors. See
Policies related to own workforce
section on page 71 for more information.
To further prevent, mitigate and remediate material negative impacts for value chain workers, Huhtamaki has developed
a general action plan focused on conducting and improving ongoing third-party environmental, social and governance
(ESG) due diligence. Concurrently, the Group has launched strategic planning activities to meet upcoming regulatory
requirements, including advancing further approaches to address specific material negative impacts.
The key actions for 2024 included:
•
Ongoing supplier ESG due diligence activities:
screening of suppliers, tracking Supplier Code of Conduct
acceptance, questionnaires, self-assessments, third-party ethical audits, regular human rights risk reviews,
regular follow-ups, preventive and corrective actions, investigation of suspected breaches
•
Improvements of supplier ESG due diligence processes:
Communicating expectations to comply with standards
in the Supplier Code of Conduct across sites and their suppliers (to continue in 2025), internal training and
capacity building on expectations around Huhtamaki’s responsibilities to monitor suppliers’ workers’ rights and
decent working conditions, piloting of new third-party ESG due diligence tool, development of due diligence
processes aligned with upcoming European Union Deforestation Regulation (EUDR)
•
Strategic planning activities launched and ongoing:
Identifying and implementing upcoming regulatory
requirements, including The Corporate Sustainability Due Diligence Directive (CSDDD) and EUDR,
development of strategic priorities, key actions, milestones and potential targets focused on suppliers’ most
severe potential human rights and workers’ rights impacts
In the medium term, Huhtamaki plans to strengthen its supplier ESG due diligence in accordance with upcoming
regulations, with a focus on governance, processes and tools.
The expected outcomes for such activities focus on implementing ongoing due diligence consistent with regulatory
requirements, the UN Guiding Principles on Business and Human Rights, and other international guidance, with the goal
of mitigating negative human rights impacts on workers in Huhtamaki’s value chain:
•
Short term: Huhtamaki develops an even stronger understanding of potential risks to people in the value chain
and why it is business critical to manage such risks
•
Medium term: Huhtamaki’s responsible procurement practices are implemented in line with legal requirements,
with a focus on continuous improvement
•
Long term: The risk of the most severe impacts on workers is reduced through Huhtamaki’s actions
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Directors’ Report and Financial Statements 2024 | 89
In scope, Huhtamaki will continue to assess risks and impacts throughout the upstream and downstream value chain
globally and expects to primarily focus on directly engaging with its tier 1 suppliers to mitigate potential material impacts
and remediate actual material impacts in the short-term.
Huhtamaki conducts ongoing monitoring and screening activities using a risk-based approach that takes into account
the size of supplier spend, strategic importance, location, and supplier type. If an actual or potential material impact is
identified, the information is internally reviewed to understand if the alerts are relevant, if Huhtamaki causes, contributes
or is linked to the adverse impact, and then decide on a proper course of action to mitigate the potential impact or
determine if remediation or corrective actions are necessary.
Typically, Huhtamaki reaches out to the supplier to understand how material negative impacts have been addressed
and will be reduced moving forward. When an adverse finding arises in a social audit, Huhtamaki requests corrective
actions be verified by the auditor.
During the reporting period, zero severe human rights issues and incidents were connected to Huhtamaki’s on-site
contract workers. Huhtamaki’s health and safety metrics include contract workers and are reported in the
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Directors’ Report and Financial Statements 2024 | 90
Health and safety
indicators
section on page 80. In addition, zero severe incidents involving upstream or downstream
value chain workers have been reported through the Speak Up channel.
Through 2024 ethical audits, Huhtamaki identified one supplier site in China and one site in Indonesia, both with three
critical health and safety nonconformances. Huhtamaki’s quality and procurement teams reached out to the suppliers
to make sure the nonconformances were addressed. Huhtamaki has requested audited verification that corrective
actions have been taken.
The disclosed issues are based on actual social audit results shared through the audit-sharing platform Sedex. Huhtamaki
defines any finding labeled as critical or business critical as a severe issue.
This metric has not been validated by an external body.
Huhtamaki recognizes that ethical audits are considered snapshots of performance and have methodological limitations
in identifying negative human rights impacts, particularly for certain issues such as discrimination, harassment, the right
to freedom of association and collective bargaining. In addition, Huhtamaki’s own scope of supplier audits is currently
limited to its first tier. It is further limited by the small percentage of first tier suppliers currently engaged in social audit
sharing with Huhtamaki.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
the defined actions. However, smaller financial resources and other resources, such as dedicated personnel from the
Group and segments are designated to support the implementation efforts.
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ESRS S4 Consumers and end-users
Material impacts and opportunities related to consumers and end-users
Huhtamaki’s products are used by food and beverage companies, quick service and fast casual restaurants, foodservice
operators, fresh produce packers as well as retailers. Huhtamaki’s products protect on-the-go and on-the-shelf food
and beverages, and home and personal care products, enhancing hygiene and safety, driving accessibility and
affordability, and helping prevent food waste.
By enhancing the hygiene and safety of food products, Huhtamaki’s
packaging solutions play a crucial role in keeping food edible for longer periods. This not only helps in reducing food
waste but also plays an instrumental role in making food more affordable and accessible for consumers.
The consumers
and end-users potentially subject to the identified material impacts include those that buy and use the packaging
products produced by Huhtamaki.
The material impacts and opportunities related to Huhtamaki’s consumers and end-users have been identified in the
double materiality assessment, which is described in detail on page 31. Huhtamaki recognizes the essential role of
packaging in safeguarding food and reducing food waste, ensuring consumers around the world have safe, hygienic,
accessible and affordable food. Huhtamaki is committed to providing safe, fit-for-purpose, and high-quality packaging
products, where the safety and quality of the final product is never compromised. Huhtamaki’s products also improve
food availability and affordability by increasing product shelf-life through effective packaging solutions. Whereas food
and product safety and quality, as well as food availability and affordability, have been identified as material topics where
Huhtamaki has actual positive impacts on consumers and end-users using its products, these have also been identified
as financial opportunities. Thus, Huhtamaki considers industry-leading food contact packaging safety as a competitive
advantage.
Policies related to consumers and end-users
Huhtamaki provides packaging products, that meet regulatory requirements and meet or exceed Huhtamaki’s customer
quality and safety standards. Huhtamäki has the process to follow these standards are met. Food contact packaging
safety is fundamental to Huhtamaki’s ethical business practices and responsibilities as a manufacturer of food and drink
packaging products. This commitment is guided by the Group Food Contact Packaging Safety Policy, which outlines the
food safety-related requirements integrated into local quality management systems, targeted to advance the positive
impacts and simultaneously pursue identified opportunities related to food safety, quality and availability.
Material impact or opportunity
Description
Applicability
Entity specific
Positive
impact
Food safety and
improved
customer health
through packaging
Huhtamaki improves food safety across the value chain
by providing high-quality food packaging. This includes
ensuring product safety, quality, and correct labelling,
which positively impacts consumer health and safety.
Proper food labelling is also crucial for food retailers.
Value chain
Opportunity
Financial
opportunity from
promoting food
safety
Highlighting the positive role of packaging in food safety
can attract investors, benefiting Huhtamaki financially.
Value chain
Positive
impact
Role of packaging
in food availability
Food packaging ensures the availability of affordable food
by guaranteeing product safety and quality. It protects and
extends the shelf life of food, playing a crucial role in
reducing food waste across global supply chain.
Value chain
Opportunity
Increased sales
through quality
packaging
High-quality and durable food packaging is crucial for
Huhtamaki customers, influencing purchasing decisions
and increasing sales. It also enhances food availability in
remote areas, expanding the market size.
Value chain
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The Group Food Contact Packaging Safety Policy is applicable worldwide across all Huhtamaki business segments and
units, covering both direct and indirect food contact packaging products, and is available on the Huhtamaki intranet.
The policy is approved by the Global Executive Team, and the policy's management responsibility lies with the Group
Sustainability and Communications department, with the intention of ensuring top-level accountability and commitment
to food contact packaging safety. This global foundation for food contact packaging safety is implemented locally taking
into account the specific local requirements. Each segment must comply with applicable local and regional food contact
safety laws and regulations, and is required to supplement the policy with specific written procedures and guidelines.
The policy outlines the minimum requirements to be included in local quality management systems, which encompass
auditable documentation, clearly defined roles and responsibilities, adherence to applicable requirements and
regulations, design reviews of new and revised packaging, and periodic audits. Additionally, the policy mandates
procedures for handling food contact safety complaints and claims, implementing corrective actions, and ensuring
effective communication and training for relevant internal and external stakeholders. Huhtamaki has also dedicated
product safety teams globally, providing guidance, training, and support to all sites.
Huhtamaki’s commitment to manufacture and supply products that meet applicable specifications, quality standards and
controls is outlined in Huhtamaki’s Code of Conduct, described in detail in the Business conduct polices and corporate
culture section on page 93. Furthermore, the Group Environmental Policy reinforces Huhtamaki’s commitment to
protecting food, people and the planet. Considering environment and public health, the policy includes the restriction
and substitution of hazardous high-impact chemicals, aiming to minimize chemical usage and reduce Huhtamaki’s
environmental impact across all operations. The Group Environmental Policy enhances a global and group-wide
understanding of Huhtamaki’s environmental commitments, and provides guidance across business segments and
functions to meet these. See more detailed description of the Group Environmental Policy and its implementation in
Policies related to climate change mitigation
section on page 44.
Huhtamaki’s Group Human Rights Policy outlines Huhtamaki’s commitment to respect human rights throughout the
value chain and is in line with the UN Guiding Principles on Business and Human Rights. The policy does not specifically
call out consumers or end-users. However, Huhtamaki’s Food Contact Packaging Safety Policy outlines the Group’s
minimum requirements to ensure that its products meet all food contact safety laws and regulations, and are safe for
consumers. Huhtamaki engages with consumers and end-users in numerous ways, which are described further in the
General information section on page 24, and later in this topical section.
Huhtamaki has an established process for the structured and timely investigation of all suspected breaches of its policies,
as well as laws and regulations. Providing remedy for human rights impacts is part of Huhtamaki’s commitment to respect
human rights and build a human rights due diligence process in line with the UN Guiding Principles on Business and
Human Rights. This does currently not specifically mention potential impacts on consumers, but on a more general level,
Huhtamaki follows up on any product quality issues and potential product recalls, and takes preventive and corrective
actions when necessary.
Processes for engaging with and channels for consumers and end-users to raise concerns
Huhtamaki primarily operates in the business-to-business sector, selling its products to customers in the foodservice,
healthcare, and pharmaceutical industries, as well as to retailers in the food and beverage sectors. In addition, in North
America Huhtamaki sells disposable tableware solutions directly to consumers through The Chinet® brand. Given the
primary nature of its business operations, Huhtamaki has not adopted a general approach to engage with the consumers
and end-users. As described in General information section on page 24, Huhtamaki communicates with consumers and
end-users primarily through labelling and end-of-life guidance and instructions on its packaging products. Some of
Huhtamaki’s products also have a web address for consumers and end-users to provide feedback. Huhtamaki also
engages with the consumers in joint projects related to product development. Currently, there is no specific engagement
taking place with representatives of consumers and end-users.
Huhtamaki’s Speak Up channel is also available to external parties, including consumers and end-users, to raise concerns.
Detailed information about the Speak Up channel and the processes for raising, monitoring, and addressing concerns
can be found in the Business Conduct section on page 94, covering the Mechanisms for identifying, reporting and
investigating concerns.
T
he current Speak Up and Investigations Policy primarily focuses on managing internal violations
and non-compliance investigations, but Huhtamaki is planning to further develop processes to manage concerns raised
by these external parties.
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Huhtamaki also has a dedicated website in North America called MyChinet that provides the means for consumers to
engage directly with Huhtamaki, provide feedback and report issues such as defective products.
Actions related to consumers and end-users
In 2024, Huhtamaki continued key initiatives to meet applicable specifications and global standards for product quality
and food safety, in line with its Food Packaging Safety Policy, with plans to extend these efforts further.
Chemical safety and proactive chemicals management
Chemical safety and proactive chemicals management are essential components of Huhtamaki’s product stewardship
and safety-by-design approach. Huhtamaki maintains rigorous practices and procedures to control the quality of the
end products and operations, and to meet the stringent requirements for manufacturing food contact materials. These
efforts encompass both the composition of end products and the use of chemicals in operations.
Huhtamaki adheres to all relevant regional, national and global chemical regulations, such as the EU REACH regulation
on chemical substances in Europe, and the GHS classification and labelling of chemicals from the United Nations globally.
These commitments also extend to the supply chain through the Code of Conduct for Huhtamaki Suppliers.
Monitoring of regulatory developments and stakeholder engagement
Huhtamaki continuously monitors developments across its operating regions to ensure adherence to applicable
regulations and frameworks, and to identify emerging materials and chemicals. Huhtamaki also engages with
stakeholders in dedicated forums and conferences focused on food contact and chemicals compliance. These include
trade organization working groups and customer-organized regulatory forums. Additionally, Huhtamaki follows the
developments of the EU Chemical Strategy for Sustainability to align the processes and products with the requirements
of this strategy, emphasizing the zero-pollution ambition.
Digitalization and training initiatives for food contact material compliance
Huhtamaki is advancing the digitalization of food contact material (FCM) compliance documentation, continuing through
2025 to support its digitalization strategy. In 2024, Huhtamaki continued internal FCM compliance training series across
all business segments, focusing on emerging issues in food contact packaging chemical safety. These training efforts will
persist in 2025, enhancing product safety awareness and regulatory knowledge across teams. In North America,
Huhtamaki extends its training initiatives to include suppliers and customers, promoting a collaborative approach to
FCM compliance. This ensures all stakeholders across the value chain are informed about regulatory requirements and
best practices, maintaining high standards of product safety and fostering strong partnerships.
Adherence to quality management systems and regular assessments
Food contact packaging safety is documented within Huhtamaki’s quality management systems that adhere to standards
such as ISO 9001, while food safety and hygiene standards include ISO 22000 and GFSI (Global Food Safety Initiative)
recognized schemes, such as BRC Global Standard for Packaging and Packaging Materials (BRCGS) or SQF (Safe Quality
Food institute). Annual site-level reviews are conducted to track and document the effectiveness of management
systems.
Huhtamaki uses only qualified suppliers and raw materials approved for food contact applications, with systems in place
for material tracking. Immediate action is taken if products fail to meet internal or market standards. In addition to strict
internal procedures and controls, Huhtamaki undergoes regular audits by internal quality control teams, customers, and
certification bodies across all business segments. These audits rigorously assess quality assurance, hygiene, and food
contact safety, ensuring continuous improvement and alignment with industry standards and regulatory requirements.
These actions promote food and product safety, quality, availability and affordability, through which Huhtamaki can also
pursue the identified opportunities. These initiatives are planned to continue on a regular basis in the short- and
medium-term. While there are no significant operational or capital expenditures allocated, smaller financial resources
and other resources, such as dedicated personnel from the Product Stewardship and Quality Assurance teams, support
the implementation efforts.
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Targets related to consumers and end-users
Huhtamaki is dedicated to ensuring that all its products comply with Group Food Contact Packaging Safety Policy, which
underlines the company’s commitment for food and product safety and quality, and outlines the minimum requirements
that each business segment must follow. To support this commitment, Huhtamaki has set an annual target of zero food
contact compliance-related claims reported, through which it tracks and ensures the adherence to the policy objectives.
The target has been set together with representatives from business segments and key functions, reviewed by the
Global Executive Team, and approved by the Board. External stakeholder groups, including consumers or end-users,
were not involved in the target setting process.
The metric used to monitor and assess the target performance is the number of food contact compliance-related claims,
measured by product safety recalls, which is based on the definition of Huhtamaki’s quality management guidelines.
Huhtamaki’s sites and segments continuously monitor and keep track of the recalls and their product safety statistics.
The information is gathered from the sites and segments on a continuous basis by the Product Stewardship teams and
reported to the Group, which validates and reports on the target performance on an annual basis. Huhtamaki is
committed to taking immediate actions in case of non-compliance with its policy and applicable standards, and if any
product safety-related recalls are reported. In 2024, Huhtamaki reported two safety related recalls. Neither of the two
identified product safety incidents caused risk of serious injury or fatality.
Huhtamaki further tracks the effectiveness of is policies and actions by conducting annual site-level reviews of the
management systems as well as through regular audits conducted internally or by external stakeholders as described in
the previous section.
Target
Scope
Annual
target
2024
performance
Zero food contact compliance-related claims
reported
Own operations,
upstream & downstream
value chain
0
2
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Governance information
ESRS G1 Business conduct
The role of administrative, management and supervisory bodies
At Huhtamaki, the Group’s values—Care, Dare, Deliver—form the foundation for the corporate culture and way of
working. These values are defined and approved by the Board of Directors. The Board has also approved the Huhtamaki
Code of Conduct, a fundamental component of Huhtamaki’s business conduct.
In addition, the Board is responsible for ensuring that policies outlining the principles of corporate governance, as well
as other matters required by applicable legislation or regulations, or which the Board deems necessary, exist, and are
carefully followed. As part of enterprise risk management, the Board reviews the Group’s risks related to business
conduct and the extent to which these risks have been properly identified, recognized, and addressed. An ethics and
compliance review is presented to the Audit Committee of the Board of Directors at least twice a year. The Chair of
the Audit Committee informs the Board about the committee’s discussions, findings, and recommendations.
When preparing its proposal concerning the composition of the Board, the Shareholders’ Nomination Board shall take
into account the set principles on diversity. The Board’s diversity—e.g., in terms of expertise, experience in different
markets and geographies, gender, and nationality enables it to assess and address business conduct matters from
multiple perspectives. Board members have gained extensive experience in business conduct matters through their
backgrounds in executive roles in operations, finance, and human resources, predominantly in globally operating, publicly
listed entities. More information about the role of the Board can be found in chapter The role of administrative,
management and supervisory bodies on page 19.
Material impacts related to business conduct
The material impacts, risks and opportunities related to Huhtamaki’s business conduct and corporate culture have been
identified in the double materiality assessment, which is described in detail in chapter Description of the processes to
identify and assess material impacts, risks and opportunities on page 31.
Material impact
Description
Applicability
Corporate culture
Positive
impact
Ethical
business
conduct and
corporate
culture
As a globally operating Group, Huhtamaki’s actions have
impact on individuals and communities worldwide. Our
commitment to uphold and promote our corporate values,
culture and business conduct builds trust and engagement
both within and outside of Huhtamaki, making us a
trustworthy employer, partner, supplier, customer, and a
company to invest in. Conversely, neglecting to enforce these
commitments can result in negative consequences, eroding
integrity and trust.
Own
operations
Corruption and bribery
Positive
impact
Prevention of
corruption
and bribery
Huhtamaki operates in 36 countries including some where the
risks of corruption and bribery are notably elevated. By
implementing robust prevention and detection practices
—
including policies and trainings
—
Huhtamaki can mitigate
these risks and their associated negative impacts, while
demonstrating its commitment to ethical business conduct.
Own
operations
1
Directors’ Report and Financial Statements 2024 | 96
Targets related to business conduct
Huhtamaki has established measurable, outcome-oriented, and time-bound targets for ethical business conduct and
corporate culture, along with policy objectives for the prevention of corruption and bribery. The company’s governance
targets serve as key metrics that demonstrate its commitment to fostering ethical business conduct and corporate
culture, as well as combating corruption. These targets are set and monitored annually, with related actions recurring
each year. The content of the trainings and the performance against these targets are further described in the sections
below. All targets are approved by Huhtamaki’s Audit Committee.
Business conduct polices and corporate culture
Code of Conduct – Huhtamaki policy for ethical business conduct and corporate culture
The Huhtamaki Code of Conduct establishes and embodies the principal themes of Huhtamaki’s business conduct and
corporate culture that are based on the Huhtamaki values—Care, Dare, Deliver. The Code of Conduct applies to all
Huhtamaki employees, members of management, officers, and directors globally, and guides them to live by the
Huhtamaki values, comply with applicable laws, regulations, and internal requirements, and make ethically sound
decisions in their daily work.
Through its Code of Conduct, Huhtamaki fosters a culture where everyone is expected to act with integrity and
encouraged to voice concerns if they observe or suspect instances of non-compliance. In 2024, Huhtamaki launched a
renewed version of its Code of Conduct, along with renewed training programs and supporting materials aimed at
making the Code of Conduct relatable for every employee, inclusive, and easy to understand and apply in practical day-
to-day situations. The Code of Conduct document is available in 24 languages on Huhtamaki’s internal and external
websites.
In addition to the Code of Conduct, Huhtamaki’s commitment to its ethical business conduct is further embodied in the
following key documents:
•
Code of Conduct for Huhtamaki Suppliers
•
Group Anti-corruption Policy (consistent with the United Nations Convention against Corruption)
•
Group Competition Compliance Policy
•
Group Corporate Governance Policy
•
Group Data Privacy Policy
•
Group Human Rights Policy
•
Group Insider Policy
•
Group Speak Up and Investigations Policy
•
Group Trade Sanctions Compliance Policy
The Board has approved the Code of Conduct and holds oversight responsibility to ensure that it is carefully followed
across Huhtamaki. The Global Executive Team, alongside leaders at all levels of the organization, are responsible for
implementing the Code of Conduct. Huhtamaki’s Global Ethics and Compliance team serves in an advisory and
partnering role and is responsible for the overall framework for addressing ethics and compliance matters. The team
Policy objective
Target
Scope
Annual
target
2024
performance
Fostering
ethical business
conduct and
corporate
culture
All Huhtamaki employees have
completed the annual Code of
Conduct training by the end of
the year
All Huhtamaki
employees
100%
97.9%
Prevention of
corruption and
bribery
All Huhtamaki employees working
in functions-at-risk have
completed the annual anti-
corruption training by the end of
the year
Huhtamaki
employees
working in
functions-at-
risk
100%
89.3%
1
Directors’ Report and Financial Statements 2024 | 97
provides regular reports to the Ethics and Compliance Committee (ECC) and further to the Audit Committee. The ECC
is chaired by the Group General Counsel, with other members including the Chief Financial Officer, and the Executive
Vice President, Human Resources and Safety.
Promoting ethical business conduct and corporate culture through training and communication – Key actions
Regular communication and training are vital components of promoting and developing corporate culture and raising
awareness about ethical business conduct. Every Huhtamaki employee, including part-time, temporary, and fixed-term
staff, must complete an annual Code of Conduct training. This training is available in both e-learning and classroom
formats, in a total of 24 languages. The Code of Conduct training covers key elements of ethical business conduct and
provides guidance and practical examples on legal compliance and ethical behavior. Huhtamaki’s target is for 00 of
its employees to complete the annual training. In 2024, the annual Code of Conduct training was completed by 97.9%
of all employees. In 2024, all members of Huhtamaki’s Board of Directors completed the Code of Conduct training.
Depending on their roles, employees are also offered e-learning courses on anti-trust and competition compliance, data
privacy and information security, as well as anti-corruption and bribery. Details about the anti-corruption and bribery e-
learning, and a description of Huhtamaki’s functions that are most at risk in respect of corruption and bribery (“functions-
at-risk”) can be found in chapter Preventing and detecting corruption – Key actions on page 95 The Global Ethics and
Compliance team also organizes targeted face-to-face trainings for selected internal target audiences.
In addition to the trainings, Huhtamaki’s key activities in 2024 regarding business conduct and corporate culture included
the establishment of a Code of Conduct ambassador network, townhall communications emphasizing the importance
of ethical business conduct, a specific Code of Conduct intranet site, articles published on the intranet, as well as Code
of Conduct-themed posters and info screen slides for use at Huhtamaki sites. Huhtamaki also conducted its annual
employee engagement survey,
Connect
, which is one way for Huhtamaki to evaluate its culture.
Acknowledging the importance of leading by example, Huhtamaki promotes its corporate culture through its leadership
model, called
Leader’s Imprint
. This model is designed to guide people leaders in embodying the desired behaviors that
support Huhtamaki values, and to set a standard for employees to follow. Huhtamaki also invests in leadership
development, employee training and onboarding activities, and recognition programs. Consistent internal
communication and annual people processes are implemented to promote the desired behaviors across the organization.
As part of the efforts for upholding and evaluating its corporate culture, Huhtamaki maintains mechanisms for
identifying, reporting and investigating concerns. These mechanisms are further described below.
Mechanisms for identifying, reporting and investigating concerns
Huhtamaki offers multiple channels for reporting concerns and observed or suspected non-compliance. These instances
may include breaches of the Code of Conduct or other Huhtamaki policies and internally binding guidelines, or violations
of applicable laws and regulations, including incidents of corruption and bribery. Employees can report concerns to their
manager, human resources, legal team, or directly to the Global Ethics and Compliance team.
Additionally, the Huhtamaki
Speak Up
channel provides an electronic platform that can be used to raise concerns
anonymously and, in the employee’s, own language. Huhtamaki Speak Up is a global, online whistleblowing system
operated by an external service provider and managed by the Global Ethics and Compliance team. It is available to all
Huhtamaki employees and external stakeholders such as suppliers, customers, value chain workers, consumers, and
end-users, and can be accessed through Huhtamaki’s internal and external websites.
In some countries, reports can also be submitted via local reporting channels, including entity-specific channels in
accordance with the applicable local legislation transposing Directive (EU) 2019/1937 of the European Parliament and
of the Council. The Global Ethics and Compliance team has an overall responsibility for the channels for speaking up
and has designated, professionally trained staff to receive reports.
Information about Huhtamaki's reporting channels is communicated to all employees through the annual Code of
Conduct training, targeted compliance trainings, intranet communications, speak-up themed posters, info screens, and
townhall meetings. Communication materials are available in 24 languages to ensure accessibility. A link to the
Huhtamaki Speak Up channel is also included in the Code of Conduct for Huhtamaki Suppliers to ensure that business
partners providing goods or services to Huhtamaki are aware of the channel.
1
Directors’ Report and Financial Statements 2024 | 98
At Huhtamaki, the Global Ethics and Compliance team has the overall responsibility for investigating all reports of
observed or suspected non-compliance, including allegations of corruption and bribery. These reports are investigated
in compliance with the Group Speak Up and Investigations Policy, which provides the framework and procedure to
investigate the alleged non-compliance instances promptly, independently, and objectively.
All reports and investigation cases are treated as highly confidential. To secure objectivity, no one is allowed to be
involved in investigating or determining possible corrective actions in a case where they are the subject of the
investigation or involved in the confirmed non-compliance. Individuals investigating a case are separate from the chain
of management involved in the matter, as well as from those approving the corrective actions, including disciplinary
measures.
Global Ethics and Compliance reports to the Ethics and Compliance Committee, which oversees and acts as the
decision-making body for the investigations, including determining corrective and preventative actions, and formally
closing the investigations. The ECC convenes regularly and as needed. Global Ethics and Compliance also regularly
provides status updates on investigation cases and their outcomes to the Huhtamaki Board of Directors through its
Audit Committee.
In addition to the global procedure outlined in the Group Speak Up and Investigations Policy, local grievance cases
related to workplace issues or employment relationship concerns are investigated and addressed according to local
grievance procedures and regulatory requirements. A detailed description about local grievance procedures can be
found in chapter Processes to remediate negative impacts and channels for own workers to raise concerns on page 74.
At Huhtamaki, victimization of any individual reporting observed or suspected non-compliance in good faith is not
tolerated. Therefore, Huhtamaki has established a strict non-retaliation rule, which is outlined in the Group Speak Up
and Investigations Policy, protecting whistleblowers in accordance with the applicable law transposing Directive (EU)
2019/1937. The non-retaliation rule is communicated to all Huhtamaki employees through the annual mandatory Code
of Conduct training.
All potential retaliation cases are taken seriously and investigated appropriately in accordance with the Group Speak Up
and Investigations Policy.
Prevention and detection of corruption or bribery
Full prohibition against corruption in all forms – Huhtamaki policy for combating corruption
Huhtamaki is committed to combating corruption and bribery by adhering to all applicable anti-corruption laws and
regulations and conducting business with integrity. At Huhtamaki, all forms of corruption and bribery are strictly
prohibited, irrespective of the organizational level or location of operations. These commitments are outlined in the
Huhtamaki Code of Conduct, that is described in chapter Code of Conduct – Huhtamaki policy for ethical business
conduct and corporate culture on page 93 above, and in the Group Anti-corruption Policy, which is consistent with the
United Nations Convention against Corruption.
The Group Anti-corruption Policy is applicable globally to all Huhtamaki companies and employees, members of the
management, as well as third parties acting on Huhtamaki’s behalf, such as agents and consultants. The policy document
is approved by the GET, which, along with leadership teams at the segment and local levels, is responsible for ensuring
its implementation. The policy is complemented by the Huhtamaki Instructions for Gifts and Hospitality and the
Huhtamaki Instructions for Conflict of Interest, covering areas closely linked with corruption and bribery.
The Group Anti-corruption Policy is available on Huhtamaki’s internal and external websites and is communicated across
Huhtamaki through trainings and communication activities that are described in chapter Preventing and detecting
corruption – Key actions on page 95 below. The full prohibition against corruption is communicated to business partners
providing goods or services to Huhtamaki through the Code of Conduct for Huhtamaki Suppliers.
Preventing and detecting corruption – Key actions
Huhtamaki acknowledges the value of training and communication in the prevention of corruption and bribery. Anti-
corruption and bribery are important topics covered in the annual Code of Conduct training, which is mandatory for all
1
Directors’ Report and Financial Statements 2024 | 99
Huhtamaki employees. More information about this training can be found in chapter Promoting ethical business conduct
and corporate culture through training and communication – Key actions on page 94.
In 2024, Huhtamaki enhanced its training activities by launching a specific anti-corruption e-learning, available on the
Huhtamaki intranet in seven languages. This training is designed to equip Huhtamaki employees with the knowledge
and tools to identify and prevent bribery and corrupt practices, and to provide guidance and practical examples.
The e-learning is mandatory to be completed annually by Huhtamaki employees working in designated functions-at-
risk, where their tasks and responsibilities expose them to situations with elevated risks of corruption and bribery.
Certain employees are also designated as part of the functions-at-risk group due to their oversight responsibilities or
gate-keeping roles in managing and mitigating corruption risks. At Huhtamaki, the following functions and roles globally
belong to functions-at-risk: finance, legal, sales, sourcing, general managers, senior managers at operations and
employees reporting to them as well as the GET and employees reporting to them.
Huhtamaki’s target is that 00 of its employees working in functions-at-risk complete the annual anti-corruption e-
learning. In 2024, the e-learning was completed by 89.3% of employees working in functions-at-risk. In 2024, the
members of the Board of Directors were trained on anti-corruption and anti-bribery topics through the Code of Conduct
training that was completed by all Board members.
In addition to trainings, Huhtamaki’s communication measures include a specific anti-corruption intranet site offering
information and guidance for employees, articles published on the intranet, as well as anti-corruption posters for use at
Huhtamaki sites.
Huhtamaki conducts regular anti-corruption risk assessments to evaluate changes in potential corruption risks and to
validate their likelihood and severity for Huhtamaki’s operations. Based on the results of these risk assessments and
findings from investigation processes, additional targeted measures are implemented in areas identified as higher risk.
In 2024, the measures taken included specialized trainings and enhanced communication to target groups relating to
business gifts and hospitality, and interactions with governmental officials, either directly or through third parties.
Furthermore, the Global Ethics and Compliance team organized targeted face-to-face trainings to selected teams in
Türkiye, Thailand, Vietnam, and India.
As part of its efforts to prevent and detect corruption, Huhtamaki considers it important to maintain robust procedures
for investigating suspected incidents of corruption and bribery. More details about the channels for reporting non-
compliance, including incidents of corruption and bribery, and the process for investigating and addressing them can be
found in chapter Mechanisms for identifying, reporting and investigating concerns on page 94.
1
Directors’ Report and Financial Statements 2024 | 100
Appendix to the sustainability statement
Disclosure requirements in ESRS covered by Huhtamaki’s sustainability statement
Cross-cutting standards
Disclosure requirement
ESRS 2
General disclosures
Page
Additional
information
BP-1
General basis for preparation of the Sustainability Statement
18
BP-2
Disclosures in relation to specific circumstances
GOV-1
The role of the administrative, management and supervisory bodies
19
GOV-2
Information provided to and sustainability matters addressed by Huhtamaki’s
administrative, management and supervisory bodies
21
GOV-3
Integration of sustainability-related performance in incentive schemes
21
GOV-4
Statement on sustainability due diligence
22
GOV-5
Risk management and internal controls over sustainability reporting
22
SBM-1
Strategy, business model and value chain
23
40(b) (breakdown of
total revenue by
significant ESRS
sector) and 40(c)
(list of additional
significant ESRS
sectors) omitted due
to ESRS sectors not
defined by the
European
Commission
SBM-2
Interests and views of stakeholders
24
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and
business model
27
48(e) (anticipated
financial effects)
omitted due to
phased-in
optionality
IRO-1
Description of the processes to identify and assess material impacts, risks and
opportunities
31
IRO-2
Disclosure requirements in ESRS covered by Huhtamaki’s Sustainability
Statement
96
Environmental standards
Disclosure requirements
ESRS E1
Climate change
Page
Additional
information
ESRS
2,
GOV-3
Integration of sustainability-related performance in incentive schemes
21
E1-1
Transition plan for climate change mitigation
40
ESRS
2,
SBM-3
Material impacts, risks and opportunities, and their interaction with
strategy and business model
42
ESRS, IRO-1
Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
31
E1-2
Policies related to climate change mitigation and adaptation
44
E1-3
Actions and resources in relation to climate change policies
44
E1-4
Targets related to climate change mitigation and adaptation
46
E1-5
Energy consumption and mix
48
E1-6
Gross Scopes 1, 2, 3 and total GHG emissions
50
E1-7
GHG removals and GHG mitigation projects financed through carbon
54
1
Directors’ Report and Financial Statements 2024 | 101
credits
E1-8
Internal carbon pricing
-
Not material
E1-9
Anticipated financial effects from material physical and transition risks
and
potential climate-related opportunities
-
Phased-in
requirement
ESRS E3
Water and marine resources
Page
Additional
information
ESRS
2,
IRO-1
Description of the processes to identify and assess material water and
marine resources-related impacts, risks and opportunities
33
E3-1
Policies related to water and marine resources
55
E3-2
Actions and resources related to water and marine resources
56
E3-3
Targets related to water and marine resources
56
E3-4
Water consumption
57
E3-5
Anticipated financial effects from material water and marine resources-
related risks and opportunities
-
Phased-in
requirement
ESRS E4
Biodiversity and ecosystems
Page
Additional
information
E4-1
Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
58
ESRS
2,
SBM-3
Material impacts, risks and opportunities and their interaction with
strategy and business model
58
ESRS
2,
IRO-1
Description of processes to identify and assess material biodiversity and
ecosystem-related impacts, risks, dependencies and opportunities
33
E4-2
Policies related to biodiversity and ecosystems
61
E4-3
Actions and resources related to biodiversity and ecosystems
61
E4-4
Targets related to biodiversity and ecosystems
62
E4-5
Impact metrics related to biodiversity and ecosystems change
58
E4-6
Anticipated financial effects from biodiversity and ecosystem-related
risks and opportunities
-
Phased-in
requirement
ESRS E5
Resource use and circular economy
Page
Additional
information
ESRS 2, IRO-
1
Description of the processes to identify and assess material resource
use and circular economy-related impacts, risks and opportunities
34
E5-1
Policies related to resource use and circular economy
64
E5-2
Actions and resources related to resource use and circular economy
65
E5-3
Targets related to resource use and circular economy
66
E5-4
Resource inflows
68
E5-5
Resource outflows
69
E5-6
Anticipated financial effects from resource use and circular economy-
related impacts, risks and opportunities
-
Phased-in
requirement
1
Directors’ Report and Financial Statements 2024 | 102
Social standards
Disclosure requirements
ESRS S1
Own workforce
Page
Additional
information
ESRS 2, SBM-
2
Interests and views of stakeholders
24
ESRS 2, SBM-
3
Material impacts, risks and opportunities and their interaction with
strategy and business model
70
S1-1
Policies related to own workforce
71
S1-2
Processes
for
engaging
with
own
workforce
and
workers’
representatives about impacts
73
S1-3
Processes to remediate negative impacts and channels for own workers
to raise concerns
74
S1-4
Taking action on material impacts on own workforce, and approaches
to managing material risks and pursuing material opportunities related
to own workforce, and effectiveness of those actions
74
S1-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
76
S1-6
Characteristics of Huhtamaki’s employees
77
S1-7
Characteristics of non-employee workers in Huhtamaki’s own
workforce
-
Phased-in
requirement
S1-8
Collective bargaining coverage and social dialogue
79
63a) Information on
own employees in
non-EEA countries
omitted
due
to
phased-in
optionality
S1-9
Diversity metrics
79
S1-10
Adequate wages
-
Not material
S1-11
Social protection
-
Phased-in
requirement
S1-12
Persons with disabilities
-
Not material
S1-13
Training and skills development metrics
-
Phased-in
requirement
S1-14
Health and safety metrics
80
All data points for
S1-14
for
non-
employees,
Number of cases of
recordable
work-
related ill
health,
and
Number
of
days lost to work-
related
ill
health
and fatalities from
ill health omitted
due to phased-in
optionality
S1-15
Work-life balance metrics
-
Phased-in
requirement
S1-16
Remuneration metrics (pay gap and total remuneration)
80
S1-17
Incidents, complaints and severe human rights impacts
-
Not material
ESRS S2
Workers in the value chain
Page
Additional
information
ESRS 2, SBM-
2
Interests and views of stakeholders
24
ESRS 2, SBM-
3
Material impacts, risks and opportunities and their interaction with strategy
and business model
82
1
Directors’ Report and Financial Statements 2024 | 103
S2-1
Policies related to value chain workers
84
S2-2
Processes for engaging with value chain workers about impacts
85
S2-3
Processes to remediate negative impacts and channels for value chain
workers to raise concerns
85
S2-4
Taking action on material impacts on value chain workers, and approaches
to managing material risks and pursuing material opportunities related to
value chain workers, and effectiveness of those actions
86
S2-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
86
ESRS S4
Consumers and end-users
Page
Additional
information
ESRS 2, SBM-
2
Interests and views of stakeholders
24
ESRS 2, SBM-
3
Material impacts, risks and opportunities and their interaction with strategy
and business model
88
S4-1
Policies related to consumers and end-users
88
S4-2
Processes for engaging with consumers and end-users about impacts
89
S4-3
Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
89
S4-4
Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end-users, and effectiveness of those actions
90
S4-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
91
Governance standards
Disclosure requirements
ESRS G1
Business conduct
Page
Additional
information
ESRS
2,
GOV-1
The role of the administrative, management and supervisory bodies
92
ESRS 2, IRO-
1
Description of the processes to identify and assess material impacts,
risks and opportunities
31
G1-1
Business conduct policies and corporate culture
93
G1-2
Management of relationships with suppliers
-
Not material
G1-3
Prevention and detection of corruption and bribery
95
G1-4
Incidents of corruption or bribery
-
Not material
G1-5
Political influence and lobbying activities
-
Not material
G1-6
Payment practices
-
Not material
1
Directors’ Report and Financial Statements 2024 | 104
Datapoints that derive from other EU legislation
Disclosure
requirement
Data point
SFDR
reference
Pillar
3
reference
Benchmark
regulation
reference
EU
Climate
Law
Page
ESRS 2 GOV-1
21 (d)
Board's gender diversity
x
x
19
ESRS 2 GOV-1
21 (e)
Percentage of board members who
are independent
x
ESRS 2 GOV-4
30
Statement on due diligence paragraph
x
ESRS 2 SBM-1
40 (d) i
Involvement in activities related to
fossil fuel activities
x
x
x
Not
material
ESRS 2 SBM-1
40 (d)
ii
Involvement in activities related to
chemical production
x
x
Not
material
ESRS 2 SBM-1
40 (d)
iii
Involvement in activities related to
controversial weapons
x
x
Not
material
ESRS 2 SBM-1
40 (d)
iv
Involvement in activities related to
cultivation and production of tobacco
x
Not
material
ESRS E1-1
14
Transition plan to reach climate
neutrality by 2050
x
40
ESRS E1-1
16 (g)
Companies excluded from Paris-
aligned Benchmarks
x
x
41
ESRS E1-4
34
GHG emission reduction targets
x
x
x
40
ESRS E1-5
38
Energy consumption from fossil
sources disaggregated by sources
(only high climate impact sectors)
x
48
ESRS E1-5
37
Energy consumption and mix
x
48
ESRS E1-5
40 to
43
Energy intensity associated with
activities in high climate impact
sectors
x
48
ESRS E1-6
44
Gross Scope 1, 2, 3 and Total GHG
emissions
x
x
x
50
ESRS E1-6
53 to
55
Gross GHG emissions intensity
x
x
x
50
ESRS E1-7
56
GHG removals and carbon credits
x
54
ESRS E1-9
66
Exposure of the benchmark portfolio
to climate-related physical risks
x
Not
material
ESRS E1-9
66 (a)
Disaggregation of monetary amounts
by acute and chronic physical risk
x
Not
material
ESRS E1-9
66 (c)
Location of significant assets at
material physical risk
x
Not
material
ESRS E1-9
67 (c)
Breakdown of the carrying value of its
real estate assets by energy-efficiency
classes
x
Not
material
ESRS E1-9
69
Degree of exposure of the portfolio
to climate- related opportunities
x
Not
material
ESRS E2-4
28
Amount of each pollutant listed in
Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air,
water and soil
x
Not
material
ESRS E3-1
9
Water and marine resources
x
55
ESRS E3-1
13
Dedicated policy paragraph
x
55
ESRS E3-1
14
Sustainable oceans and seas
x
Not
material
ESRS E3-4
28(c)
Total water recycled and reused
x
57
ESRS E3-4
29
Total water consumption in m3 per
net revenue on own operations
x
57
ESRS2 SBM-3 -
E4
16 (a) i
x
58
ESRS2 SBM-3 -
E4
16 (b)
x
58
ESRS2 SBM-3 -
E4
16 (c)
x
58
ESRS E4-2
24 (b)
Sustainable land / agriculture
practices or policies
x
Not
material
ESRS E4-2
24 (c)
Sustainable oceans / seas practices or
policies
x
Not
material
ESRS E4-2
24 (d)
Policies to address deforestation
x
61
ESRS E5-5
37 (d)
Non-recycled waste paragraph
x
69
1
Directors’ Report and Financial Statements 2024 | 105
ESRS E5-5
39
Hazardous waste and radioactive
waste
x
69
ESRS2 SBM-3 -
S1
14 (f)
Risk of incidents of forced labour
x
Not
material
ESRS2 SBM-3 -
S1
14 (g)
Risk of incidents of child labour
x
Not
material
ESRS S1-1
20
Human rights policy commitments
x
71
ESRS S1-1
21
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8
x
71
ESRS S1-1
22
Processes and measures for
preventing trafficking in human
beings
x
71
ESRS S1-1
23
Workplace accident prevention policy
or management system
x
71
ESRS S1-3
32 (c)
Grievance/complaints handling
mechanisms
x
74
ESRS S1-14
88 (b)
and (c)
Number of fatalities and number and
rate of work-related accidents
x
x
80
ESRS S1-14
88 (e)
Number of days lost to injuries,
accidents, fatalities or illness
x
80
ESRS S1-16
97 (a)
Unadjusted gender pay gap
x
x
80
ESRS S1-16
97 (b)
Excessive CEO pay ratio
x
80
ESRS S1-17
103
(a)
Incidents of discrimination
x
Not
material
ESRS S1-17
104
(a)
Non-respect of UNGPs on Business
and Human Rights and OECD
x
x
Not
material
ESRS2 SBM-3 –
S2
11 (b)
Significant risk of child labour or
forced labour in the value chain
x
Not
material
ESRS S2-1
17
Human rights policy commitments
x
84
ESRS S2-1
18
Policies related to value chain
x
84
ESRS S2-1
19
Non-respect of UNGPs on Business
and Human Rights principles and
OECD guidelines
x
x
87
ESRS S2-1
19
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8
x
87
ESRS S2-4
36
Human rights issues and incidents
connected to its upstream and
downstream value chain
x
86
ESRS S3-1
16
Human rights policy commitments
x
Not
material
ESRS S3-1
17
Non-respect of UNGPs on Business
and Human Rights, ILO principles or
and OECD
x
x
Not
material
ESRS S3-4
36
Human rights issues and incidents
x
Not
material
ESRS S4-1
16
Policies related to consumers and
end-users
x
88
ESRS S4-1
17
Non-respect of UNGPs on Business
and Human Rights and OECD
guidelines
x
x
88
ESRS S4-4
35
Human rights issues and incidents
x
Not
material
-
ESRS G1-1
10 (b)
United Nations Convention against
Corruption
x
Not
material
-
ESRS G1-1
10 (d)
Protection of whistleblowers
x
94
ESRS G1-4
24 (a)
Fines for violation of anticorruption
and anti-bribery laws
x
x
Not
material
ESRS G1-4
24 (b)
Standards of anti- corruption and
anti- bribery
x
Not
material
1
Directors’ Report and Financial Statements 2024 | 106
Disclosure
Requirement
and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark
regulation
reference
EU Climate Law
ESRS 2 GOV-1 Board's gender
diversity paragraph 21 (d)
Indicator number 13 of
Table #1 of Annex 1
Commission
Delegated
Regulation
(EU)
2020/1816, Annex II
ESRS 2 GOV-1 Percentage of
board
members
who
are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 GOV-4 Statement on
due diligence paragraph 30
Indicator
number
10
Table #3 of Annex 1
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
Indicators
number
4
Table #1 of Annex 1
Article
449a
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Table
1:
Qualitative
information
on
Environmental
risk
and
Table
2:
Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1 Involvement in
activities related to chemical
production paragraph 40 (d) ii
Indicator number 9 Table
#2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1 Involvement in
activities
related
to
controversial
weapons
paragraph 40 (d) iii
Indicator
number
14
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1 Involvement in
activities related to cultivation
and
production
of
tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS E1-1 Transition plan to
reach
climate
neutrality
by
2050 paragraph 14
Regulation
(EU)
2021/1119,
Article
2(1)
ESRS E1-1 Companies excluded
from Paris-aligned Benchmarks
paragraph 16 (g)
Article
449a
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Template 1: Banking book-
Climate Change transition
risk:
Credit
quality
of
exposures
by
sector,
emissions
and
residual
maturity
Delegated Regulation (EU)
2020/1818, Article 12.1 (d)
to (g), and Article 12.2
ESRS
E1-4
GHG
emission
reduction targets paragraph 34
Indicator number 4 Table
#2 of Annex 1
Article
449a
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Template 3: Banking book –
Climate change transition
risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
ESRS E1-5 Energy consumption
from
fossil
sources
disaggregated by sources (only
high climate impact sectors)
paragraph 38
Indicator number 5 Table
#1 and Indicator n. 5
Table #2 of Annex 1
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5 Table
#1 of Annex 1
ESRS E1-5 Energy intensity
associated with activities in high
climate
impact
sectors
paragraphs 40 to 43
Indicator number 6 Table
#1 of Annex 1
ESRS E1-6 Gross Scope 1, 2, 3,
and
Total
GHG
emissions
paragraph 44
Indicators number 1 and
2 Table #1 of Annex 1
Article
449a;
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Template 1: Banking book –
Climate change transition
risk:
Credit
quality
of
exposures
by
sector,
Delegated Regulation (EU)
2020/1818, Article 5(1), 6
and 8(1)
1
Directors’ Report and Financial Statements 2024 | 107
emissions
and
residual
maturity
ESRS
E1-6
Gross
GHG
emissions intensity paragraphs
53 to 55
Indicators
number
3
Table #1 of Annex 1
Article
449a
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
Template 3: Banking book –
Climate change transition
risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation
(EU)
2021/1119,
Article
2(1)
ESRS E1-9 Exposure of the
benchmark portfolio to climate-
related physical risks paragraph
66
Delegated Regulation (EU)
2020/1818,
Annex
II
Delegated Regulation (EU)
2020/1816, Annex II
ESRS E1-9 Disaggregation of
monetary amounts by acute and
chronic physical risk paragraph
66
(a)
ESRS
E1-9
Location
of
significant assets at material
physical risk paragraph 66 (c)
Article
449a
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
paragraphs
46
and
47;
Template 5: Banking book -
Climate
change
physical
risk: Exposures subject to
physical risk.
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets
by
energy-efficiency
classes paragraph 67 (c)
Article
449a
Regulation
(EU)
No
575/2013;
Commission Implementing
Regulation (EU) 2022/2453
paragraph
34;Template
2:Banking book -Climate
change
transition
risk:
Loans
collateralised
by
immovable
property
-
Energy efficiency of the
collateral
ESRS E1-9 Degree of exposure
of the portfolio to climate-
related opportunities paragraph
69
Delegated Regulation (EU)
2020/1818, Annex II
ESRS E2-4 Amount of each
pollutant listed in Annex II of the
E- PRTR Regulation (European
Pollutant Release and Transfer
Register) emitted to air, water
and soil, paragraph 28
Indicator number 8 Table
#1 of Annex 1 Indicator
number 2 Table #2 of
Annex 1 Indicator number
1 Table #2 of Annex 1
Indicator number 3 Table
#2 of Annex 1
ESRS E3-1 Water and marine
resources paragraph 9
Indicator number 7 Table
#2 of Annex 1
ESRS E3-1 Dedicated policy
paragraph 13
Indicator number 8 Table
2 of Annex 1
ESRS E3-1 Sustainable oceans
and seas paragraph 14
Indicator
number
12
Table #2 of Annex 1
ESRS E3-4 Total water recycled
and reused paragraph 28 (c)
Indicator
number
6.2
Table #2 of Annex 1
ESRS
E3-4
Total
water
consumption in m3 per net
revenue on own operations
paragraph 29
Indicator
number
6.1
Table
#2
of
Annex 1
ESRS 2- IRO 1 - E4 paragraph
16 (a) i
Indicator number 7 Table
#1 of Annex 1
ESRS 2- IRO 1 - E4 paragraph
16 (b)
Indicator
number
10
Table #2 of Annex 1
ESRS 2- IRO 1 - E4 paragraph
16 (c)
Indicator
number
14
Table #2 of Annex 1
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
Indicator
number
11
Table #2 of Annex 1
ESRS E4-2 Sustainable oceans /
seas
practices
or
policies
paragraph 24 (c)
Indicator
number
12
Table #2 of Annex 1
1
Directors’ Report and Financial Statements 2024 | 108
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
Indicator number 15Table
#2 of Annex 1
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
Indicator
number
13
Table #2 of Annex 1
ESRS E5-5 Hazardous waste
and
radioactive
waste
paragraph 39
Indicator number 9 Table
#1 of Annex 1
ESRS 2- SBM3 - S1 Risk of
incidents
of
forced
labor
paragraph 14 (f)
Indicator
number
13
Table #3 of Annex I
ESRS 2- SBM3 - S1 Risk of
incidents
of
child
labor
paragraph 14 (g)
Indicator
number
12
Table #3 of Annex I
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
ESRS
S1-1
Due
diligence
policies on issues addressed by
the fundamental International
Labour
Organisation
Conventions 1 to 8, paragraph
21
Delegated Regulation (EU)
2020/1816, Annex II
ESRS
S1-1
Processes
and
measures
for
preventing
trafficking in human beings
paragraph 22
Indicator number 1 Table
#3 of Annex I
ESRS S1-1 Workplace accident
prevention
policy
or
management system paragraph
23
Indicator number 1 Table
#3 of Annex I
ESRS
S1-3
Grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table
#3 of Annex I
ESRS
S1-14
Number
of
fatalities and number and rate
of
work-related
accidents
paragraph 88 (b) and (c)
Indicator number 2 Table
#3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1-14 Number of days
lost
to
injuries,
accidents,
fatalities or illness paragraph 88
(e)
Indicator number 3 Table
#3 of Annex I
ESRS S1-16 Unadjusted gender
pay gap paragraph 97 (a)
Indicator
number
12
Table #1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1-16 Excessive CEO pay
ratio paragraph 97 (b)
Indicator number 8 Table
#3 of Annex I
ESRS
S1-17
Incidents
of
discrimination paragraph 103 (a)
Indicator number 7 Table
#3 of Annex I
ESRS S1-17 Non-respect of
UNGPs on Business and Human
Rights and OECD paragraph
104 (a)
Indicator
number
10
Table
#1
and
Indicator n. 14 Table #3
of Annex I
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818 Art 12 (1)
ESRS 2- SBM-3 – S2 Significant
risk of child labour or forced
labour
in
the
value
chain
paragraph 11 (b)
Indicators number 12 and
n. 13 Table #3 of Annex I
ESRS S2-1 Human rights policy
commitments paragraph 17
Indicator number 9 Table
#3 and Indicator n. 11
Table #1 of Annex 1
ESRS S2-1 Policies related to
value chain workers paragraph
18
Indicator number 11 and
n. 4 Table #3 of Annex 1
ESRS
S2-1Non-
respect
of
UNGPs
on
Business
and
Human Rights principles and
OECD guidelines paragraph 19
Indicator
number
10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS
S2-1
Due
diligence
policies on issues addressed by
the fundamental International
Labor
Organisation
Conventions 1 to 8, paragraph
19
Delegated Regulation (EU)
2020/1816, Annex II
1
Directors’ Report and Financial Statements 2024 | 109
ESRS S2-4 Human rights issues
and incidents connected to its
upstream
and
downstream
value chain paragraph 36
Indicator
number
14
Table #3 of Annex 1
ESRS S3-1 Human rights policy
commitments paragraph 16
Indicator number 9 Table
#3
of
Annex
1
and
Indicator
number
11
Table #1 of Annex 1
ESRS
S3-1
non-respect
of
UNGPs on Business and Human
Rights, ILO principles or and
OECD guidelines paragraph 17
Indicator
number
10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S3-4 Human rights issues
and incidents paragraph 36
Indicator
number
14
Table #3 of Annex 1
ESRS S4-1 Policies related to
consumers
and
end-users
paragraph 16
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex 1
ESRS
S4-1
Non-respect
of
UNGPs on Business and Human
Rights and OECD guidelines
paragraph 17
Indicator
number
10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S4-4 Human rights issues
and incidents paragraph 35
Indicator
number
14
Table #3 of Annex 1
ESRS G1-1 United Nations
Convention against Corruption
paragraph 10 (b)
Indicator
number
15
Table #3 of Annex 1
ESRS
G1-1
Protection
of
whistle-blowers paragraph 10
(d)
Indicator number 6 Table
#3 of Annex 1
ESRS G1-4 Fines for violation of
anti-corruption and anti-bribery
laws paragraph 24 (a)
Indicator
number
17
Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
ESRS G1-4 Standards of anti-
corruption
and
anti-bribery
paragraph 24 (b)
Indicator
number
16
Table #3 of Annex 1
1
Directors’ Report and Financial Statements 2024 | 110
Financial statements
Consolidated financial statements
Consolidated statement of income (IFRS)
EUR million
Note
2024
2023
Net sales
2.1.
Cost of goods sold
-3,344.7
-3,415.0
Gross profit
Other operating income
2.4.
Sales and marketing
-104.8
-101.6
Research and development
-34.7
-36.0
Administration expenses
-297.3
-295.3
Other operating expenses
2.5.
-13.7
-24.3
Earnings before interest and taxes
2.2., 2.3.
Financial income
5.1.
Financial expenses
5.1.
-88.3
-82.9
Profit before taxes
Income tax expense
2.6.
-68.7
-86.7
Profit for the period
Attributable to:
Equity holders of the parent company
Non-controlling interest
EUR
EPS attributable to equity holders of the parent company
2.7.
Diluted EPS attributable to equity holders of the parent company
2.7.
1
Directors’ Report and Financial Statements 2024 | 111
Group statement of comprehensive income (IFRS)
EUR million
Note
2024
2023
Profit for the period
Other comprehensive income:
Items that will not be reclassified to profit or loss
Remeasurements on defined benefit plans
2.2.
-18.2
Income taxes related to items that will not be reclassified
2.6.
-0.7
Total
-13.1
Items that may be reclassified subsequently to profit or loss
Translation differences
-105.1
Equity hedges
-15.8
Cash flow hedges
-1.8
-5.6
Cash flow hedges recognized in other comprehensive income
-2.4
Cash flow hedges transferred to profit or loss
-0.4
-0.5
Cash flow hedges transferred to statement of financial position
-2.3
-2.7
Income taxes related to items that may be reclassified
2.6.
Total
-105.0
Other comprehensive income, net of tax
-118.1
Total comprehensive income
Attributable to:
Equity holders of the parent company
Non-controlling interest
1
Directors’ Report and Financial Statements 2024 | 112
Consolidated statement of financial position (IFRS)
Assets
EUR million
Note
2024
2023
Non-current assets
Goodwill
3.2.
Other intangible assets
3.3.
Tangible assets
3.4.
Other investments
5.6.
Interest-bearing receivables
5.2., 5.6.
Deferred tax assets
2.6.
Employee benefit assets
2.2.
Other non-current assets
Current assets
Inventory
4.1.
Interest-bearing receivables
5.2.
Current tax assets
Trade and other current receivables
4.2., 5.6.
Cash and cash equivalents
5.3., 5.6.
Assets held for sale
3.5.
Total assets
Equity and liabilities
EUR million
Note
2024
2023
Share capital
5.4.
Premium fund
5.4.
Treasury shares
5.4.
-27.6
-29.6
Translation differences
5.4.
-16.5
-102.1
Fair value and other reserves
5.4.
-46.6
-48.1
Retained earnings
Total equity attributable to equity holders of the parent company
Non-controlling interest
Total equity
Non-current liabilities
Interest-bearing liabilities
5.5., 5.6.
Deferred tax liabilities
2.6.
Employee benefit liabilities
2.2.
Provisions
4.3.
Other non-current liabilities
Current liabilities
Interest-bearing liabilities
Current portion of long term loans
5.5., 5.6.
Short-term loans
5.5., 5.6.
Provisions
4.3.
Current tax liabilities
Trade and other current liabilities
4.4., 4.5., 5.6.
Total liabilities
Total equity and liabilities
1
Directors’ Report and Financial Statements 2024 | 113
Consolidated statement of changes in equity (IFRS)
Attributable to equity holders of the parent company
EUR million
Note
Share capital
Share issue
premium
Treasury
shares
Translation
differences
Fair value
and other
reserves
Retained
earnings
Total
Non-
controlling
interest
Total equity
Balance on January 1, 2023
-31.2
-7.1
-30.4
Dividends
2.7.
-104.5
-104.5
-4.2
-108.8
Share-based payments
6.3.
Total comprehensive income for the year
-95.0
-17.7
Acquisition of non-controlling interest
-2.2
Other Changes
-4.0
-4.0
-0.3
-4.3
Balance on December 31, 2023
-29.6
-102.1
-48.1
Dividends
2.7.
-110.0
-110.0
-11.1
-121.1
Share-based payments
6.3.
-3.0
-0.9
-0.9
Total comprehensive income for the year
Other Changes
-1.2
-1.2
-0.8
Balance on December 31, 2024
-27.6
-16.5
-46.6
1
Directors’ Report and Financial Statements 2024 | 114
Consolidated statement of cash flows (IFRS)
EUR million
Note
2024
2023
Profit for the period
Adjustments
Depreciation, amortization and impairments
2.3.
Gain/loss from disposal of assets
-12.9
-50.8
Financial expense/-income
5.1.
Income tax expense
2.6.
Other adjustments
-2.7
Change in inventory
4.1.
-27.2
Change in non-interest bearing receivables
-38.8
Change in non-interest bearing payables
-11.1
Dividends received
Interest received
Interest paid
-69.6
-58.8
Other financial expense and income
-8.2
-8.8
Taxes paid
2.6.
-87.0
-83.8
Net cash flows from operating activities
Capital expenditure
3.3., 3.4.
-247.9
-318.7
Proceeds from selling tangible assets
3.4.
Acquired subsidiaries and assets
3.1.
-1.9
Change in other investment
-0.6
Proceeds from long-term deposits
Payment of long-term deposits
-1.6
-2.9
Proceeds from short-term deposits
Payment of short-term deposits
-19.9
-183.5
Net cash flows from investing activities
-231.8
-260.3
Proceeds from long-term borrowings
Repayment of long-term borrowings
-99.3
-16.6
Change in short-term loans
-162.2
-567.7
Acquisition of non-controlling interest
-18.2
Dividends paid to the owners of the parent
-110.0
-104.5
Dividends paid to non-controlling interests
-11.3
-4.5
Net cash flows from financing activities
5.5.
-247.2
-268.2
Change in cash and cash equivalents
-31.1
Cash flow based
-46.3
Translation difference
-11.0
Cash and cash equivalents period start
Cash and cash equivalents period end
5.3.
The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.
Notes to the consolidated financial statements
1
Directors’ Report and Financial Statements 2024 | 115
1. Basis of preparation
focus and expertise are in paperboard based foodservice packaging, smooth and rough molded fiber packaging as well
as flexible packaging. Huhtamaki offers standardized products, customized designs as well as total packaging systems
and solutions. Main customers are food and beverage companies, quick service and fast casual restaurants, foodservice
The parent company, Huhtamäki Oyj , is a public limited liability company domiciled in Espoo, Finland and listed on
NASDAQ OMX Helsinki Ltd. The address of its registered office is Revontulenkuja 1, 02100 Espoo, Finland . A copy of
consolidated financial statements is available at Group’s website www.huhtamaki.com.
2025. According to the Finnish Companies Act shareholders decide on the adoption of financial statements at the
Standards (IFRS) and the IAS and IFRS standards as well as SIC- and IFRIC- interpretations which were valid on
December 31, 2024. IFRS, referred to in the Finnish Accounting Act and in ordinances issued based on the provisions
of said Act, refer to the standards and their interpretations adopted in accordance with the procedure laid down in
The consolidated financial statements have been prepared under the historical cost convention except for other
investments at fair value through other comprehensive income, financial instruments at fair value through profit or loss,
derivative instruments and cash-settled share-based payment arrangements that are measured at fair value. The
preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates.
The use of estimates and assumptions is described in more detail in Note 1.6. Use of significant estimates and
judgements. The consolidated financial statements are presented in millions of euros. Figures presented are exact figures
The following amended standards have been adopted as of January 1, 2024:
•
Revised IAS 1 Presentation of Financial Statements (Classification of Liabilities as Current and Non-current):
The amendments are to promote consistency in application and clarify the requirements on determining if a
liability is current or non-current. The amendments specify that covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-current at the reporting date. The
amendments require to disclose information about these covenants in the notes to the financial statements.
The Group has completed the information disclosed about its covenants in Note 5.7. Management of financial
risks. The amendments did not have other impacts to the consolidated financial statements.
•
Revised IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments (Supplier Finance Arrangements): The
amendments enhance the transparency of supplier finance arrangements and their effects on a company’s
liabilities, cash flows and exposure to liquidity risk. Amendments require to disclose quantitative and qualitative
information about supplier finance programs. The Group has trade and other payables that are subject to
1
Directors’ Report and Financial Statements 2024 | 116
supplier finance arrangements and discloses the related information in Note 4.5. Supplier Finance
Arrangements.
•
Revised IFRS 16 Leases (Lease Liability in a Sale and Leaseback): The amendments introduce a new accounting
model for variable payments and will require seller-lessees to reassess and potentially restate sale-and-
leaseback transactions entered into since the implementation of IFRS 16 in 2019. The amendments did not
have impact on the consolidated financial statements.
The Group plans to adopt the following amendments in 2025 and they are not expected to have material impact on the
consolidated financial statements:
•
Revised IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability): The amendments
require to apply a consistent approach in assessing whether a currency can be exchanged into another currency
and, when it cannot, in determining the exchange rate to use and the disclosures to provide.
The Group plans to adopt the following amendments later than 2025 (amendments not yet endorsed by the European
Union) and the assessment of the impacts is on-going:
•
Revised IFRS 9 Financial Instruments and IFRS 7 Financial Instrumenrs: Disclosures (Classification and
Measurement of Financial Instruments): The amendments clarify that an entity is required to apply settlement
date accounting when derecognising a financial asset or a financial liability; and to permit an entity to deem a
financial liability that is settled using an electronic payment system to be discharged before the settlement date
if specified criteria are met. The amendments clarify the application guidance for assessing the contractual cash
flow characteristics of financial assets, including financial assets with contractual terms that could change the
timing or amount of contractual cash flows, for example, those with environmental, social and governance
(ESG)-linked features, financial assets with non-recourse features and financial assets that are contractually
linked instruments.
•
Revised IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures (Contracts Referencing to
Nature-dependent Electricity): The amendments clarify the application of the 'own-use' requirements, permit
hedge accounting if these contracts are used as hedging instruments and add new disclosure requirements
about the effect of these contracts on a company's financial performance and cash flows.
•
Annual improvements to IFRS Accounting Standards (Volume 11): The annual improvements include minor
amendments to five standards.
•
New IFRS 18 Presentation and Disclosure in the Financial Statements: IFRS 18 will replace IAS 1 Presentation
of Financial Statements. The key new requirements are as follows: 1) Income and expenses in the income
statement to be classified into three new defined categories (operating, investing and financing) and two new
subtotals (“Operating profit or loss” and “Profit or loss before financing and income tax”), 2) Disclosures about
management-defined performance measures (MPMs) in the financial statements. MPMs are subtotals of income
and expenses used in public communications to communicate management’s view of the company’s financial
performance, and 3) Disclosure of information based on enhanced general requirements on aggregation and
disaggregation. In addition, specific requirements to disaggregate certain expenses, in the notes, will be required
The consolidated financial statements include the parent company Huhtamäki Oyj and all its subsidiaries where over
0 of the subsidiary’s voting rights are controlled directly or indirectly by the parent company, or the parent company
is otherwise in control of the company for example based on Shareholder’s Agreement.
Acquired subsidiaries are accounted for using the acquisition method. Subsidiaries are fully consolidated from the date
on which the control is transferred to the Group. Divested subsidiaries are included up to the date the control ceases.
All intercompany transactions, receivables, liabilities and unrealized profits, as well as distribution of profits within the
Group, are eliminated.
1
Directors’ Report and Financial Statements 2024 | 117
Profit and loss for the period attributable to equity holders of the parent company and to non-controlling interest is
presented in the income statement. Comprehensive income attributable to equity holders of the parent company and
to non-controlling interest is presented in the statement of comprehensive income. Comprehensive income is attributed
to the owners of the parent company and to the non-controlling interest even if this results in the non-controlling
Associated companies, where the Group holds voting rights of between 20% and 50% and in which the Group has
significant influence, but not control, over the financial and operating policies, are consolidated using the equity method.
Joint arrangements are companies over whose activities the Group has joint control, established by contractual
agreement. The joint arrangements classified as joint ventures are consolidated using the equity method. When the
Group’s share of losses exceeds the carrying amount of the equity accounted investment, the carrying amount is
reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred
obligations in respect of the equity-accounted investments. The Group’s share of result of equity-accounted
investments is presented as a separate item above Earnings before interest and taxes. Correspondingly the Group’s
Foreign currency transactions are translated into functional currency at the rates of exchange prevailing at the date of
the transaction. The consolidated financial statements are presented in EUR, which is the Group’s presentation currency
and the parent company’s functional currency. Monetary assets and liabilities are translated at the rates of exchange at
the reporting period closing date. The exchange rate used at the reporting period closing date is the rate of the date
prior to the last working day of the reporting period closing date. Foreign exchange differences arising from translation
are recognized in the income statement. Foreign exchange gains and losses relating to operating activities are recognized
in the same account as the underlying transaction above Earnings before interest and taxes. Foreign exchange
differences relating to financial liability are recognized in financial income or expense except for those currency
differences that relate to loans designated as a hedge of the net investment in foreign operations. Those currency
differences are recognized as translation differences in other comprehensive income.
On consolidation the income statements of foreign entities are translated into euros at the average exchange rate for
the accounting period. The statements of financial position of foreign entities are translated at the exchange rate of
reporting period closing date. The exchange rate used at the reporting period closing date is the rate of the date prior
to the last working day of the reporting period closing date. Differences resulting from the translation of income
statement items at the average rate and items in the statement of financial position at the closing rate are recognized
as part of translation differences in other comprehensive income.
On consolidation, exchange differences arising on the translation of the net investments in foreign subsidiaries,
associated companies and joint ventures are recognized as translation differences in other comprehensive income. A
similar treatment is applied to intragroup permanent loans, which in substance are equity. On disposal of a foreign entity,
Preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates
and assumptions affecting the reported amounts of assets, liabilities, income and expenses, as well as the disclosure of
contingent assets and liabilities. The estimates and assumptions are based on historical experience and other factors
that are believed to be reasonable under the circumstances, which form the basis of making the judgments about
carrying values. These estimates and assumptions are reviewed on an ongoing basis. Possible effect of the changes in
estimates and assumptions are recognized during the period they are changed.
The following items and related notes include significant estimates that are subject to a risk of changes in the carrying
values within next financial year: impairment testing (Note 3.2. Goodwill), measurement of pension liabilities (Note 2.2.
Employee benefits), litigation and tax risks (Notes 2.6. Income taxes and 6.6. Litigations), restructuring plans (Note 4.3.
Provisions), provision for inventory obsolescence (Note 4.1. Inventories), probability of deferred tax assets being
recovered against future taxable profits (Note 2.6. Income taxes), business combinations related contingent
1
Directors’ Report and Financial Statements 2024 | 118
2. Financial performance
Information
The Group’s operating segments are strategic business units which produce different products and which are managed
as separate units. The Group’s segment information is based on internal management reporting. The Group has three
business areas which are organized into four reporting segments:
Foodservice Packaging:
•
Foodservice Europe-Asia-Oceania:
Foodservice paper and plastic disposable tableware is supplied to foodservice operators,
fast food restaurants, coffee shops and FMCG companies. The segment has production in Europe, Africa, Middle East, Asia
and Oceania.
•
North America:
The segment serves local markets in North America with Chinet® disposable tableware products,
foodservice packaging products, as well as ice cream containers and other consumer goods packaging products. The
segment has rigid paper, plastic and molded fiber manufacturing units in the United States and Mexico.
Flexible Packaging:
Flexible packaging is used for a wide range of consumer products including food, pet food, hygiene and health care
products. The segment serves global markets from production units in Europe, Middle East, Asia and South America.
Fiber Packaging:
Recycled fiber is used to make fresh product packaging, such as egg and fruit packaging. The segment has production
in Europe, Oceania, Africa and South America.
ACCOUNTING PRINCIPLES
on a segment’s potential to generate earnings before interest and taxes (EBIT), operating cash flow and return on net
assets. In management’s opinion these are the most suitable key indicators for analyzing the segments’ performance.
The Chief Executive Officer is the highest decision maker regarding the above mentioned assessments and allocation
of resources.
Segment’s net assets include items directly attributable to a segment and items which can be allocated on a reasonable
basis. Net assets comprise intangible assets (including goodwill), tangible assets, equity-accounted investments,
inventories, trade and other receivables, accrued income and prepayments, trade payables, other payables and accrued
expense. Capital expenditure includes acquisition of tangible and intangible assets which will be used during more than
one reporting period. Intersegment pricing is based on fair market value.
Other activities include unallocated corporate costs and royalty income and related net assets. Unallocated assets and
Group income statement and balance sheet items 2024
Segments 2024 | ||||||
Foodservice Europe- | North | Flexible | Fiber | Segments | ||
EUR million | Note | Asia-Oceania | America | Packaging | Packaging | total |
Net sales | 988.1 | 1,458.7 | 1,321.8 | 357.6 | 4,126.3 | |
Intersegment net sales | 1.4 | 1.4 | 0.7 | 5.6 | -9.1 | |
EBIT | 75.9 | 195.9 | 77.7 | 41.3 | 390.7 | |
Net Assets | 3.1., 3.3., 3.4., 4. | 928.9 | 1,073.0 | 1,344.5 | 325.4 | 3,671.9 |
Capital Expenditure | 66.3 | 83.9 | 69.0 | 28.1 | 247.4 | |
Depreciation and amortization | 2.3. | 72.1 | 65.0 | 61.5 | 22.7 | 221.3 |
1
Directors’ Report and Financial Statements 2024 | 119
Segments 2023
Foodservice |
North |
Flexible |
Fiber |
Segments |
||
EUR million |
Note |
Europe- |
America |
Packaging |
Packaging |
total |
| Asia-Oceania |
||||||
Net sales |
1,033.7 |
1,456.4 |
1,337.7 |
341.1 |
4,168.9 |
|
Intersegment net sales |
3.5 |
1.5 |
3.2 |
2.0 |
-10.3 |
|
EBIT |
88.0 |
187.9 |
93.9 |
33.4 |
403.2 |
|
Net Assets |
3.1., 3.3., 3.4., 4. |
907.4 |
1,013.9 |
1,294.0 |
305.0 |
3,520.2 |
Capital Expenditure |
64.0 |
121.4 |
103.7 |
29.3 |
318.5 |
|
Depreciation and amortization |
2.3. |
69.8 |
60.4 |
85.1 |
22.4 |
237.7 |
Intersegment net sales are eliminated on consolidation.
ACCOUNTING PRINCIPLES
The revenue is recognized at an amount of consideration to which the Group expects to be entitled in exchange for
transferring promised goods or services to a customer. The transaction price is usually fixed but may also include variable
considerations such as volume or cash discounts. The variable considerations are estimated using the most likely value
method if not yet realized in the end of reporting period. The revenue further adjusted with indirect sales taxes and
exchange rate differences relating to sales in foreign currency is presented as net sales.
Typical contracts with customers include a sale of goods to a customer with only one performance obligation. The
revenue recognition occurs at a point in time, when the control of the goods is transferred to the customer according
to the delivery terms. Payment terms are typical to the business and contracts do not include significant financing
Earnings before interest and taxes consists of net sales less costs of goods sold, sales and marketing expenses, research
and development expenses, administration expenses, other operating expenses plus other operating income and share
of result of equity-accounted investments. Foreign exchange gains and losses and changes of fair value of the derivative
Reconciliation calculations
Result
EUR million |
2024 |
2023 |
Total EBIT for reportable segments |
390.7 |
403.2 |
EBIT for other activities |
-18.5 |
-22.3 |
Net financial items |
-71.8 |
-69.0 |
Profit before taxes |
300.5 |
312.0 |
Assets
EUR million |
2024 |
2023 |
Total assets for reportable segments |
4,350.2 |
4,140.9 |
Assets in other activities |
36.5 |
19.3 |
Unallocated assets |
506.8 |
504.7 |
Group's total assets |
4,893.5 |
4,664.9 |
1
Directors’ Report and Financial Statements 2024 | 120
Liabilities
EUR million |
2024 |
2023 |
Total liabilities for reportable segments |
760.8 |
657.3 |
Liabilities in other activities |
38.0 |
28.6 |
Unallocated liabilities |
1,970.7 |
2,054.1 |
Group's total liabilities |
2,769.4 |
2,739.9 |
Geographical information
In presenting information on geographical basis, revenues are reported based on the selling entity's location. Assets are
reported based on the geographical location of the assets. Non-current assets are presented excluding financial
instruments, deferred tax assets and post-employment benefit assets.
2024
| EUR million |
External net sales |
Non-current |
| assets |
||
United States |
1,458.3 |
894.2 |
Germany |
457.2 |
425.1 |
The United Kingdom |
320.9 |
214.3 |
India |
256.3 |
186.8 |
Austalia |
170.6 |
89.1 |
Türkiye |
170.3 |
202.9 |
Thailand |
154.9 |
132.7 |
Poland |
122.6 |
71.4 |
South Africa |
122.5 |
77.6 |
Spain |
94.0 |
76.3 |
Other countries (excl. Finland) |
730.2 |
571.3 |
Finland |
68.5 |
71.2 |
Total |
4,126.3 |
3,013.0 |
2023
| EUR million |
External net sales |
Non-current |
| assets |
||
United States |
1,454.7 |
821.0 |
Germany |
439.4 |
401.2 |
The United Kingdom |
325.1 |
176.2 |
India |
261.3 |
187.7 |
Türkiye |
177.4 |
199.7 |
Australia |
174.7 |
93.8 |
Thailand |
158.4 |
115.5 |
Poland |
124.1 |
71.1 |
South Africa |
116.9 |
71.3 |
Czech Republic |
104.6 |
40.5 |
Other countries (excl. Finland) |
758.9 |
624.9 |
Finland |
73.4 |
73.0 |
Total |
4,168.9 |
2,876.0 |
1
Directors’ Report and Financial Statements 2024 | 121
Personnel expenses
EUR million |
Note |
2024 |
2023 |
Wages and Salaries |
721.4 |
684.1 |
|
Compulsory social security contributions |
76.0 |
67.2 |
|
Pensions |
|||
Defined benefit plans |
6.4 |
5.8 |
|
Defined contribution plans |
25.1 |
21.8 |
|
Other defined benefit plans |
1.1 |
0.7 |
|
Share-based payments |
6.3. |
6.2 |
13.9 |
Other personnel costs |
50.1 |
52.8 |
|
Total |
886.3 |
846.3 |
Remuneration paid by the parent company to the members of the Board of Directors as well as the Chief Executive
Officer (CEO) of Huhtamäki Oyj (9 people) amounted to EUR 5.2 million (EUR 4.4 million).
Average number of personnel |
2024 |
2023 |
Group |
17,820 |
18,261 |
Huhtamäki Oyj |
175 |
153 |
See note 6.2. Related party transactions, 6.3. Share-based payments and Remuneration Statement.
Pension plans
The Group has established a number of defined benefit plans providing pensions and other post-employment benefits
for its personnel worldwide. The U.S., the UK, Germany and the Netherlands are the countries having major defined
benefit plans comprising approximately 0 of the Group consolidated defined benefit obligation.
The U.S. and the UK defined benefit plans are organized through a pension fund and the German and Dutch defined
benefit plans through an insurance company. The major pension plans are funded and the assets of these plans are
segregated from the assets of the Group.
The subsidiaries’ level of funding of the plans and asset allocation to asset
categories meet local authority requirements.
In the defined benefit pension plans the pensions payable are based on salary level before retirement and number of
service years. Some plans can include early retirement. The calculations for defined benefit obligations and assessment
of the fair value of assets at reporting period closing date have been made by qualified actuaries.
The Group has also unfunded post-employment medical benefit plans, principally in the U.S. The method of accounting,
assumptions and the frequency of valuations are similar to those used for the defined benefit pension schemes.
These defined benefit plans expose the Group to actuarial risks, such as inflation risk, interest rate risk, life expectancy
and market risk.
ACCOUNTING PRINCIPLES
Employee benefits are all forms of consideration given in exchange for service rendered by employees or for the
termination of employment.
The Group companies have various pension and other postemployment benefit plans in accordance with local conditions
and practices worldwide. These plans are classified as either defined contribution plans or defined benefit plans.
In defined contribution plans, the Group pay fixed contributions into a separate entity such as an insurance company.
The Group has no legal or constructive obligations to pay further contributions. The contributions are recognized in the
income statement as personnel expenses in the period to which they relate.
1
Directors’ Report and Financial Statements 2024 | 122
In defined benefit plans, the Group is obligated for the current contributions, but also for sufficiency of the plan assets
to provide agreed benefits for employees. The liability recognized in the statement of financial position is the present
value of defined benefit obligation at the end of the reporting period less the fair value of plan assets. The present value
of defined benefit plan obligation is calculated annually by independent actuaries using projected unit credit method.
The present value is determined by discounting estimated future cash flows using interest rates of high-quality corporate
bonds that are denominated in the currency in which the benefits will be paid and that have maturity terms
approximating to the terms of the related obligation. The cost of providing defined benefit plans is recognized in the
income statement as personnel expense, when the service is rendered by employees or when a plan amendment or
curtailment takes place. The net interest expense is recognized in the income statement as financial expense.
Remeasurements, including actuarial gains or losses, are recognized through other comprehensive income in
Defined benefit | Fair value of | Effect from | Net defined | |||||
obligations | plan assets | asset ceiling | benefit liability | |||||
EUR million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Balance at January 1 | 430.8 | 422.4 | -338.1 | -344.7 | - | 1.2 | 92.7 | 78.9 |
Included in Income statement | ||||||||
Current service cost | 7.4 | 6.5 | 7.4 | 6.5 | ||||
Plan amendment and curtailment cost (+) / income (-) | - | - | - | - | ||||
Interest cost (+) / income (-) | 18.2 | 18.2 | -15.5 | -15.9 | 2.7 | 2.4 | ||
25.6 | 24.7 | -15.5 | -15.9 | 10.2 | 8.9 | |||
Included in Other comprehensive income | ||||||||
Remeasurements | ||||||||
Actuarial loss (+) / gain (-) arising from | ||||||||
Demographic assumptions | -0.2 | -2.7 | -0.2 | -2.7 | ||||
Financial assumptions | -17.9 | 15.8 | -17.9 | 15.8 | ||||
Experience adjustment | 6.1 | 6.8 | 6.1 | 6.8 | ||||
Actual return on plan assets less interest income | 8.6 | -0.5 | 8.6 | -0.5 | ||||
Changes in asset ceiling less interest | - | -1.3 | - | -1.3 | ||||
-11.9 | 19.9 | 8.6 | -0.5 | - | -1.3 | -3.4 | 18.2 | |
Other movements | ||||||||
Benefits paid | -30.5 | -30.2 | 23.8 | 22.2 | -6.7 | -7.9 | ||
Contribution by employer | -4.8 | -4.6 | -4.8 | -4.6 | ||||
Contribution by employee | -0.2 | -0.2 | -0.2 | -0.2 | ||||
Obligations and assets assumed in business combinations | - | - | - | - | - | - | ||
Assets extinguished on plan amendment | - | - | - | - | ||||
Effect of movements in exchange rates | 13.1 | -6.0 | -14.5 | 5.4 | - | 0.0 | -1.4 | -0.6 |
Balance at December 31 | 427.1 | 430.8 | -340.8 | -338.1 | - | - | 86.3 | 92.7 |
Reflected to statement of financial position | 2024 | 2023 |
Employee benefit assets | 63.8 | 53.3 |
Employee benefit liabilities | 150.0 | 145.9 |
86.3 | 92.7 |
Amounts of funded and unfunded obligations | 2024 | 2023 |
Present value of funded obligations | 402.5 | 407.9 |
Present value of unfunded obligations | 24.5 | 22.9 |
427.1 | 430.8 |
1
Directors’ Report and Financial Statements 2024 | 123
Plan assets comprise: |
2024 |
2023 |
European equities |
4.0 |
4.7 |
North American equities |
49.1 |
35.3 |
European debt instruments |
15.4 |
5.4 |
North American debt instruments |
101.1 |
113.6 |
Property |
13.3 |
13.3 |
Insured plans |
84.3 |
85.3 |
Other |
73.5 |
80.6 |
340.8 |
338.1 |
All equity and debt instruments have quoted prices in active markets.
Expected contribution to defined benefit plans during 2025 is EUR 4.3 million.
The weighted average duration of defined benefit obligation was 11 years (11 years).
Significant actuarial assumptions |
2024 |
2023 |
||||
Discount rate % |
||||||
Europe |
3.1 |
– |
5.4 |
3.2 |
– |
4.5 |
Americas |
5.5 |
– |
9.9 |
4.9 |
– |
9.9 |
Asia, Oceania, Africa |
2.5 |
– |
10.0 |
6.0 |
– |
10.9 |
Annual increase in healthcare costs % |
||||||
Americas |
7.3 |
7.9 |
||||
Asia, Oceania, Africa |
6.2 |
6.9 |
||||
EUR million |
2024 |
2023 |
1% p. increase in discount rate |
-36.2 |
-32.6 |
1% p. decrease in discount rate |
40.4 |
37.6 |
1% p. increase of estimated healthcare cost |
1.4 |
0.8 |
1% p. decrease of estimated healthcare cost |
-1.2 |
-0.7 |
EUR million |
2024 |
2023 |
Depreciation, amortization and impairments by function: |
||
Cost of Goods Sold |
192.6 |
189.4 |
Sales and marketing |
7.8 |
8.5 |
Research and development |
7.6 |
7.2 |
Administration |
14.0 |
19.6 |
Other |
1.4 |
15.7 |
Total |
223.4 |
240.3 |
1
Directors’ Report and Financial Statements 2024 | 124
Depreciation, amortization and impairments by asset type: | ||
Land and land improvements | 1.4 | 0.8 |
Buildings | 46.4 | 39.7 |
Machinery and equipment | 144.9 | 153.7 |
Other tangible assets | 10.3 | 9.1 |
Intangible assets | 20.4 | 37.0 |
Total | 223.4 | 240.3 |
Impairments by asset type: | ||
Buildings | - | - |
Machinery and equipment | - | 5.2 |
Goodwill | 1.4 | 15.7 |
Other Intangible assets | - | 0.7 |
Total | 1.4 | 21.7 |
Depreciation and amortization
Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the owned tangible
and intangible assets or over the lease term of right-of-use assets. Land is not depreciated.
The estimated useful lives of the owned tangible and intangible assets are (years):
Buildings and other structures | 20–40 |
Machinery and equipment | 5–15 |
Other tanglible assets | 3–12 |
Intangible assets | 3–20 |
See notes 2.1. Segment and revenue, 3.3. Intangible assets and 3.4. Tangible assets.
Eur million | 2024 | 2023 |
Grants | 0.9 | 1.7 |
Gain on disposal of tangible assets | 21.5 | 61.6 1 |
Insurance reimbursements for property damage incidents | 2.2 | 0.3 |
Royalty income | 0.2 | 0.1 |
Rental income | 1.0 | 1.0 |
Other | 15.5 | 19.6 |
Total | 41.3 | 84.2 |
1
See also note 3.1. Business combinations.
Other operating income
Other operating income includes gains from disposal of assets and regular incomes, such as royalty income, rental
income and gains relating to business combinations, which have not been derived from primary activities.
Other operating income includes also grants. Government or other grants are recognized in the income statement on a
systematic basis in the same periods in which the expenses are incurred. Investment grants are presented in the
statement of financial position as deferred income and recognized as income on a systematic basis over the useful life
1
Directors’ Report and Financial Statements 2024 | 125
EUR million |
2024 |
2023 |
Goodwill impairment 1 |
1.4 |
15.7 |
Loss on disposal of tangible assets |
2.4 |
4.4 |
Other |
9.9 |
4.2 |
Total |
13.7 |
24.3 |
1
See note 3.3. Intagible assets.
EUR million |
2024 |
2023 |
Audit fees |
3.6 |
3.2 |
Other statutory services |
0.5 |
0.0 |
Tax services |
- |
- |
Other services |
0.2 |
0.2 |
Total |
4.4 |
3.4 |
KPMG is acting as the principal auditor for Huhtamaki Group. KPMG has also provided other statutory services including
assurance of the sustainability reporting. KPMG network has provided other consultancy services worth of EUR 0.2
million (EUR 0.2 million) of which KPMG Oy Ab accounted for EUR 0.0 million (EUR 0.2 million). Other consultancy
services are subject to separate review and approval process concerning the provision of non-audit services by the
ACCOUNTING PRINCIPLES
Other operating expenses include amortization of intangible assets, losses from disposal of assets and other costs not
EUR million |
2024 |
2023 |
Current tax expense |
85.5 |
76.9 |
Deferred tax expense |
-16.8 |
9.8 |
Total tax expense |
68.7 |
86.7 |
Profit before taxes |
300.5 |
312.0 |
Tax calculated at domestic rate (20%) |
60.1 |
62.4 |
Effect of different tax rates in foreign subsidiaries |
-1.7 |
-0.2 |
Non-deductible expenses and tax-exempt income |
0.4 |
4.1 |
Tax effect of unrecognized tax losses |
7.1 |
7.6 |
Previous period taxes |
-1.3 |
-1.5 |
Deferred tax liability on undistributed earnings |
0.0 |
-1.7 |
Other items¹ |
4.0 |
16.0 |
Total tax expense |
68.7 |
86.7 |
1
Other items include functional currency remeasurements gain EUR 4 million (2023: loss EUR 17 million) and changes in local tax rates.
1
Directors’ Report and Financial Statements 2024 | 126
Tax effects relating to components of other comprehensive income
| 2024 |
2023 |
|||||
Before tax |
Tax expense/ |
Net of tax |
Before tax |
Tax expense/ |
Net of tax |
|
EUR million |
amount |
benefit |
amount |
amount |
benefit |
amount |
Cash flow hedges |
-1.8 |
0.3 |
-1.6 |
-5.6 |
1.2 |
-4.4 |
Remeasurements on defined benefit plans |
3.4 |
-0.7 |
2.7 |
-18.2 |
5.0 |
-13.1 |
In 2024, income tax liabilities and assets include a net liability of EUR 39 million (EUR 39 million) relating to uncertain
tax positions with inherently uncertain timing of cash outflows.
Certain Huhtamaki Group companies' prior period income tax returns are under examination by local tax authorities,
and in 2024 Huhtamaki had ongoing tax investigations in various jurisdictions, including Czech Republic, Finland,
Germany, Ghana, India, the Netherlands, Philippines and the United States.
Huhtamaki’s business and investments, especially in emerging markets, may be subject to uncertainties, including
unpredictable tax treatment. Management judgment and a degree of estimation are required in determining the amount
of tax expense. Liabilities for uncertain tax positions are recorded based on estimates and assumptions of the amount
and likelihood of outflow of economic resources when it is more likely than not that certain filing positions may not be
fully sustained upon review by local tax authorities. Even though management does not expect that any significant
additional taxes in excess of those already provided for will arise as a result of these examinations, the outcome or actual
cost of settlement may vary materially from estimates.
Finland enacted new tax legislation to implement a domestic minimum top-up tax, which is effective from 1 January
2024 and the Group is subject to the global minimum top-up tax under Pillar Two tax legislation. The Group recognized
a current tax expense of EUR 2 million related to the top-up tax (2023: nil).
Income taxes
The Group income statement includes current taxes of Group companies based on taxable profit for the financial period
according to local tax regulations as well as adjustments to prior year taxes and changes in deferred taxes. Tax effect
relating to items recognized directly in equity or in other comprehensive income is recognized in equity or in other
comprehensive income.
difference between the tax basis of assets and liabilities and their carrying values for IFRS reporting purposes. Deferred
tax is not recognized for non-deductible goodwill and for differences in investments in subsidiaries to the extent that
they probably will not reverse in the foreseeable future.
Deferred tax is not recognized in the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit. In the determination of deferred income tax the
enacted tax rate is used.
Principal temporary differences arise from tangible assets, untaxed reserves, tax losses carried forward, financial
instruments and defined benefit plans. Deferred tax assets are recognized only to the extent that it is probable that
future taxable profit will be available against which such assets can be utilized.
The Group applies a temporary mandatory relief from accounting for deferred taxes for the impacts of the top-up tax
In accordance with IFRIC 23 the Group recognizes provisions for uncertain tax positions when the Group has a present
obligation as a result of a past event and management judge that it is probable that there will be a future outflow of
economic benefits from the Group to settle the obligation. Uncertain tax positions are assessed and measured on an
issue by issue basis within the jurisdictions that we operate either using management’s estimate of the most likely
outcome where the issues are binary, or the expected value approach where the issues have a range of possible
1
Directors’ Report and Financial Statements 2024 | 127
outcomes. The Group recognizes interest on late paid taxes as part of financing costs, and any penalties, if applicable,
EUR million |
2024 |
2023 |
Deferred tax assets |
||
Tangible assets |
43.5 |
37.8 |
Employee benefit |
34.4 |
32.0 |
Provisions |
6.1 |
6.5 |
Unused tax losses |
35.5 |
27.9 |
Other temporary differences |
46.2 |
36.0 |
Total |
165.7 |
140.1 |
Deferred tax liabilities |
||
Tangible assets |
157.1 |
143.5 |
Intangible assets |
26.8 |
27.7 |
Employee benefit |
20.5 |
17.7 |
Undistributed earnings |
24.1 |
23.9 |
Other temporary differences |
11.7 |
12.3 |
Total |
240.2 |
225.0 |
Net deferred tax liabilities |
74.4 |
84.9 |
Reflected in statement of financial position as follows: |
||
Deferred tax assets |
63.8 |
52.1 |
Deferred tax liabilities |
138.2 |
137.0 |
Total |
74.4 |
84.9 |
December 31, 2024 the Group had EUR 73 million (EUR 79 million) worth of deductable temporary differences, for
which no deferred tax asset was recognised. EUR 24 million of these temporary differences have unlimited expiry, EUR
11 million expire over five years and EUR 38 million in five years.
Movements in the net deferred tax balance during the year
EUR million |
2024 |
2023 |
Net deferred tax balance at January 1 |
-84.9 |
-84.9 |
Recognized in income statement |
16.8 |
-9.8 |
Recognized in other comprehensive income |
-0.5 |
6.2 |
Recognized in equity |
- |
-0.2 |
Translation differences |
-5.9 |
3.8 |
Net deferred tax balance at December 31 |
-74.4 |
-84.9 |
2.7. EARNINGS AND DIVIDEND PER SHARE
2024 |
2023 |
|
Net income attributable to equity holders of the parent company (basic/diluted), EUR million |
224.1 |
206.3 |
Weighted average number of shares outstanding, in thousands |
104,713 |
104,497 |
Effect of share-based payments, in thousands |
424 |
417 |
Diluted weighted average number of shares outstanding, in thousands |
105,136 |
104,914 |
Earnings per share from the profit for the period attributable to equity holders of the parent company |
||
Basic earnings per share, EUR |
2.14 |
1.97 |
Diluted earnings per share, EUR |
2.13 |
1.97 |
1
Directors’ Report and Financial Statements 2024 | 128
The dividends paid in 2024 were EUR 1.05 per share, totaling EUR 110.0 million (EUR 1.00 per share, totaling EUR
104.5 million). A dividend of EUR 1.10 per share will be proposed at the Annual General Meeting on April 24, 2025.
This corresponds total dividends of EUR 115.2 million for 2024, calculated based on outstanding shares at December
The basic earnings per share figure is calculated by dividing the net income attributable to the shareholders of the parent
company by the weighted average number of shares outstanding during the period. Diluted earnings per share is
calculated by adjusting the weighted average number of shares by the effect of diluting shares due to Performance
Dividends proposed by the Board of Directors are not recognized in the financial statements until they have been
1
Directors’ Report and Financial Statements 2024 | 129
3. Acquisitions and capital expenditure
Contingent considerations
In the year 2024, Huhtamaki had no contingent considerations. In the beginning of the year 2023, Huhtamaki had EUR
20.6 million of financial liabilities for contingent considerations. The payments were contingent mainly on the financial
performance on the acquired businesses after the acquisition. In the year 2023, Huhtamaki settled EUR 20.2 million of
the liabilities. The net fair valuations through the profit or loss were EUR -0.8 million. The impact from the change in
exchange rates was EUR 0.3 million. In the end of the year 2023, there was no financial liabilities for contingent
considerations.
ACCOUNTING PRINCIPLES
Business combinations are accounted for using the acquisition method. The identifiable assets and liabilities are
measured at their fair value at the date of acquisition, any non-controlling interest is measured either at fair value or at
the non-controlling interest’s proportionate share of the acquiree’s net assets. In a business combination achieved in
stages, the previously held equity interest in the acquiree is remeasured at its acquisition-date fair value and any resulting
gain or loss is recognized in profit or loss or other comprehensive income, as appropriate. The aggregate of consideration
transferred, any non-controlling interest and any previously held equity interest, less acquired net assets is recognized
as goodwill.
Any possible contingent consideration is recognized at fair value at the acquisition date and it is classified as a financial
liability or equity. Contingent consideration classified as a financial liability is remeasured at reporting period closing date
and the related profit or loss is recognized in the income statement. Contingent consideration classified as equity is not
remeasured.
Goodwill allocation by groups of cash-generating units
Goodwill acquired through business combinations has been allocated to the level of groups of cash-generating units
(groups of CGUs) that are expected to benefit from the synergies of the acquisition, which represent the lowest level
at which the goodwill is monitored for internal management purposes. The group of CGU in which goodwill is allocated
represents operating segment. Goodwill allocation by segments, and the weighted average pre-tax discount interest
rates used in discounting the projected cash flows to their present value, are presented in the table below:
| 2024 |
2023 |
|||
Discount interest |
Discount interest |
|||
rates used |
rates used |
|||
EUR million |
Goodwill |
(pre-tax), % |
Goodwill |
(pre-tax), % |
Flexible Packaging |
539.7 |
11.9 |
522.6 |
13.6 |
North America |
234.4 |
9.8 |
226.7 |
11.4 |
Foodservice Europe-Asia-Oceania |
186.3 |
9.7 |
181.6 |
10.1 |
Fiber Packaging |
63.7 |
10.4 |
63.7 |
11.4 |
Total goodwill |
1,024.1 |
994.6 |
||
Goodwill has been tested for impairment and since the recoverable value of the groups of the cash-generating units
(CGUs) has been higher than the carrying value, no impairment charges has been recognized.
1
Directors’ Report and Financial Statements 2024 | 130
In assessing whether goodwill has been impaired, the carrying value of the group of CGUs has been compared to the
recoverable amount of the group of CGUs. The recoverable amount is based on value-in-use, which is estimated using
a discounted cash flow model. The cash flows are determined using five-year cash flow forecasts, which are based on
business plans. The plans are based on experience as well as future expected market trends. The plans are approved by
management and are valid when impairment test is performed. Cash flows for future periods are extrapolated by using
0.8 (0.8) percent growth rate in developed countries, 1.4 (1.3) percent growth rate in developing countries and 2.4 (2.3)
percent growth rate in high growth countries. The management views these growth rates as being appropriate for the
business, given the long time horizon of the testing period.
Sensitivity analysis
As part of the impairment testing, a sensitivity analysis around the key assumptions is performed. The assumptions used
in the impairment testing, that are considered to be most sensitive for changes, are EBIT and discount rates. Sensitivity
analysis around these key assumptions have been performed, and management believes that any reasonably possible
change (decrease of 1.5 percentage points in EBIT margin, increase of 1.5 percentage points in discount rates or
combined effect of these changes) in the key assumptions would not cause carrying amount to exceed the recoverable
ACCOUNTING PRINCIPLES
Goodwill arising from an acquisition represents the excess of the consideration transferred over the fair value of the
net identifiable assets acquired. Goodwill is allocated to groups of cash-generating units that are expected to benefit
from the synergies of the acquisition and is not amortized but tested annually for impairment. For associates and joint
ventures, the carrying amount of goodwill is included in the carrying amount of the investment. Goodwill is valued at
cost less impairment losses.
Goodwill is tested annually or more frequently if there are indications of impairment. In assessing whether goodwill has
been impaired, the carrying value of the group of cash generating units (group of CGUs) has been compared to the
recoverable amount of the group of CGUs. The recoverable amount is based on value-in-use, which is estimated using
a discounted cash flow model. The cash flows are determined using five-year cash flow forecasts, which are based on
business plans. Business plans are based on past experience as well as future expected market trends. Management
approves business plans for impairment testing purposes. Cash flows for future periods are extrapolated by using
defined growth rates for developed countries, developing countries and emerging countries. The discount rate used in
the calculation reflects the weighted average cost of capital (WACC) and risks to the asset under review.
A goodwill impairment loss is recognized immediately as an expense in the income statement and is not subsequently
1
Directors’ Report and Financial Statements 2024 | 131
Other |
|||||
intangibles |
|||||
(including |
|||||
Customer |
intangible |
||||
EUR million |
Goodwill |
relations |
Software |
rights) |
Total 2024 |
Acquisition cost on January 1, 2024 |
1,124.5 |
115.1 |
99.2 |
85.2 |
1,424.0 |
Additions |
- |
- |
0.3 |
2.6 |
2.9 |
Disposals |
- |
-0.1 |
-47.3 |
-5.2 |
-52.5 |
Intra-balance sheet transfer |
- |
- |
2.8 |
3.7 |
6.5 |
Changes in exchange rates |
32.6 |
4.2 |
1.0 |
1.6 |
39.4 |
Acquisition cost on December 31, 2024 |
1,157.1 |
119.2 |
56.0 |
87.9 |
1,420.3 |
Accumulated amortization and impairment on January 1, 2024 |
-129.9 |
-55.5 |
-89.6 |
-50.5 |
-325.5 |
Accumulated amortization on disposals and transfers |
- |
0.1 |
47.2 |
1.0 |
48.3 |
Amortization during the financial year |
- |
-6.8 |
-3.7 |
-8.4 |
-18.9 |
Impairments during the financial year |
-1.4 1 |
- |
- |
- |
-1.4 |
Changes in exchange rates |
-1.7 |
-1.5 |
-1.0 |
-0.7 |
-4.9 |
Accumulated amortization and impairment on December 31, |
|||||
| 2024 |
-133.0 |
-63.8 |
-47.1 |
-58.6 |
-302.5 |
Book value on December 31, 2024 |
1,024.1 |
55.5 |
8.9 |
29.3 |
1,117.8 |
1
During 2024 it was announced that Huhtamaki is planning to consolidate the production footprint in the Fiber Foodservice Europe-Asia-Oceania segment by closing its
production site in Port Klang, Malaysia, by the end of Q2 2024. As a result of this announcement, Group has impaired the goodwill related to the Port Klang operations.
Other |
|||||
intangibles |
|||||
(including |
|||||
Customer |
intangible |
||||
EUR million |
Goodwill |
relations |
Software |
rights) |
Total 2023 |
Acquisition cost on January 1, 2023 |
1,151.4 |
119.0 |
98.5 |
79.3 |
1,448.3 |
Additions |
- |
- |
0.8 |
1.0 |
1.8 |
Disposals |
- |
- |
-7.1 |
-1.5 |
-8.6 |
Intra-balance sheet transfer |
- |
- |
8.0 |
8.1 |
16.1 |
Changes in exchange rates |
-26.9 |
-3.9 |
-1.0 |
-1.7 |
-33.5 |
Acquisition cost on December 31, 2023 |
1,124.5 |
115.1 |
99.2 |
85.2 |
1,424.0 |
Accumulated amortization and impairment on January 1, 2023 |
-116.4 |
-49.6 |
-86.8 |
-42.7 |
-295.4 |
Accumulated amortization on disposals and transfers |
- |
- |
1.8 |
0.1 |
1.9 |
Amortization during the financial year |
- |
-7.3 |
-4.8 |
-8.5 |
-20.6 |
Impairments during the financial year |
-15.7 1 |
- |
-0.7 |
- |
-16.5 |
Changes in exchange rates |
2.2 |
1.4 |
0.8 |
0.6 |
5.0 |
Accumulated amortization and impairment on December 31, |
|||||
| 2023 |
-129.9 |
-55.5 |
-89.6 |
-50.5 |
-325.5 |
Book value on December 31, 2023 |
994.6 |
59.6 |
9.6 |
34.8 |
1,098.5 |
1
During 2023 it was announced that Huhtamaki has made the decision to consolidate the production footprint of its Flexible Packaging segment in Europe and will be
closing its Flexible Packaging production facility in Prague, Czech Republic. As a result of this announcement, Group has impaired the goodwill related to the Prague
Goodwill
See note 3.2. Goodwill for the accounting principles relating to goodwill.
Other intangible assets
Other intangible assets include customer relations, patents, copyrights, trademarks, technologies, emission rights,
renewable energy certificates and software licenses. These are measured at cost and typically amortized on a straight-
line basis over the estimated useful lives, which may vary from 3 to 20 years. Other intangible assets with definite useful
lives are tested for impairment when there are indications of impairment, see more information on impairment of assets
in Note 3.4. Tangible assets.
1
Directors’ Report and Financial Statements 2024 | 132
Cloud computing arrangements that meet the definition of an intangible asset and comply with the recognition criteria
are capitalized on the balance sheet. Implementation costs (customization and configuration) relating to cloud computing
arrangements that don't meet the definition of an intangible asset and are distinct from the access to the software are
expensed when the services are received. If the customization and configuration services are not distinct from the
access to the software, the costs are recognized as prepayments and expensed over the software contract term.
Research costs are recognized in the income statement as incurred. Expenditure on development activities related to
new products and processes are capitalized in the statement of financial position from the moment they are expected
to bring future economic benefits and the Group has intention and resources to finalize the development. Previously
Emission rights and renewable energy certificates are measured at cost. Rights and certificates received free of charge
are recognized at their nominal value (nil). Emission rights are derecognized against actual emissions. A provision to
cover the obligation to return emission rights is recognized at the fair value in the end of the reporting period if the
emission allowances held by the Group do not cover actual emissions. Renewable energy certificates are derecognized
Intangible assets up to |
20 |
Software |
3–5 |
Customer relations |
7–15 |
Subsequent expenditure on capitalized other intangible assets is capitalized only when it increases the future economic
EUR million |
2024 |
2023 |
Owned property, plant and equipment |
1,761.7 |
1,645.8 |
Right-of-use assets |
152.2 |
149.1 |
Total tangible assets |
1,913.9 |
1,794.9 |
1
Directors’ Report and Financial Statements 2024 | 133
Owned assets | ||||||
Construction | ||||||
Buildings | Machinery | in progress | Other | |||
Land and land | and | and | and advance | tangible | Total | |
EUR million | improvements | constructions | equipment | payments | assets | 2024 |
Acquisition cost on January 1, 2024 | 47.9 | 535.8 | 2,276.3 | 342.7 | 112.9 | 3,315.6 |
Additions | - | 0.6 | 11.7 | 232.0 | 0.7 | 245.1 |
Disposals | -0.4 | -6.7 | -42.3 | -1.2 | -5.0 | -55.6 |
Intra-balance sheet transfer | 0.1 | 13.7 | 182.3 | -213.2 | 10.5 | -6.5 |
Reclassification to assets held for sale 1 | -1.7 | - | - | - | - | -1.7 |
Changes in exchange rates | 1.3 | 18.8 | 80.8 | 11.1 | 2.8 | 114.7 |
Acquisition cost on December 31, 2024 | 47.3 | 562.2 | 2,508.7 | 371.4 | 122.0 | 3,611.6 |
Accumulated depreciation and impairment on January 1, | ||||||
2024 | -1.9 | -226.6 | -1,363.1 | - | -78.2 | -1,669.8 |
Accumulated depreciation on disposals and transfers | -0.0 | 4.8 | 44.3 | - | 4.7 | 53.8 |
Depreciation during the financial year | -0.8 | -26.3 | -136.9 | - | -9.7 | -173.8 |
Impairments during the financial year | - | - | - | - | - | - |
Reclassification to assets held for sale 1 | - | - | - | - | - | - |
Changes in exchange rates | -0.2 | -8.1 | -49.8 | - | -1.9 | -60.0 |
Accumulated depreciation and impairment on December | ||||||
31, 2024 | -2.9 | -256.2 | -1,505.5 | - | -85.3 | -1,849.8 |
Book value on December 31, 2024 | 44.4 | 306.0 | 1,003.2 | 371.4 | 36.7 | 1,761.7 |
1
See note 3.5. Assets held for sale.
Owned assets | ||||||
Construction | ||||||
Buildings | Machinery | in progress | Other | |||
Land and land | and | and | and advance | tangible | Total | |
EUR million | improvements | constructions | equipment | payments | assets | 2023 |
Acquisition cost on January 1, 2023 | 39.6 | 495.2 | 2,165.5 | 366.1 | 111.2 | 3,177.7 |
Additions | - | 3.0 | 17.6 | 291.7 | 4.6 | 316.9 |
Disposals | -0.8 | -9.2 | -26.2 | -8.2 | -5.2 | -49.6 |
Intra-balance sheet transfer | 11.0 | 65.1 | 206.6 | -298.3 | 5.4 | -10.3 |
Reclassification to assets held for sale 1 | - | - | -21.3 | - | - | -21.3 |
Changes in exchange rates | -1.9 | -18.3 | -65.9 | -8.6 | -3.0 | -97.7 |
Acquisition cost on December 31, 2023 | 47.9 | 535.8 | 2,276.3 | 342.7 | 112.9 | 3,315.6 |
Accumulated depreciation and impairment on January 1, | ||||||
2023 | -1.7 | -217.0 | -1,294.0 | - | -76.4 | -1,589.2 |
Accumulated depreciation on disposals and transfers | - | 4.6 | 22.6 | - | 4.8 | 32.0 |
Depreciation during the financial year | -0.3 | -20.6 | -140.1 | - | -8.6 | -169.7 |
Impairments during the financial year | - | - | -5.2 | - | - | -5.2 |
Reclassification to assets held for sale 1 | - | - | 16.0 | - | - | 16.0 |
Changes in exchange rates | 0.1 | 6.5 | 37.8 | - | 2.0 | 46.4 |
Accumulated depreciation and impairment on December | ||||||
31, 2023 | -1.9 | -226.6 | -1,363.1 | - | -78.2 | -1,669.8 |
Book value on December 31, 2023 | 46.0 | 309.2 | 913.2 | 342.7 | 34.7 | 1,645.8 |
1
See note 3.5. Assets held for sale.
| Right-of-use assets | |||||
Buildings | |||||
and | Machinery and | Other | |||
EUR million | Land | constructions | equipment | tangible assets | Total 2024 |
Acquisition cost on January 1, 2024 | 14.5 | 204.8 | 40.6 | 2.1 | 262.1 |
Additions | 0.0 | 22.1 | 12.5 | 0.5 | 35.0 |
Disposals | -0.0 | -18.2 | -10.0 | -0.4 | -28.6 |
Intra-balance sheet transfer | - | 5.1 | -5.1 | - | - |
Changes in exchange rates | 0.8 | 4.4 | 0.8 | 0.1 | 6.0 |
Acquisition cost on December 31, 2024 | 15.3 | 218.2 | 38.8 | 2.3 | 274.6 |
Accumulated depreciation and impairment on January 1, 2024 | -6.1 | -86.5 | -19.4 | -1.0 | -113.0 |
1
Directors’ Report and Financial Statements 2024 | 134
Accumulated depreciation on disposals and transfers | 0.0 | 12.4 | 9.8 | 0.3 | 22.6 |
Depreciation during the financial year | -0.6 | -20.0 | -8.1 | -0.6 | -29.3 |
Changes in exchange rates | -0.3 | -2.0 | -0.4 | -0.0 | -2.7 |
Accumulated depreciation and impairment on December 31, | |||||
| 2024 | -7.1 | -96.1 | -18.0 | -1.2 | -122.4 |
Book value on December 31, 2024 | 8.2 | 122.1 | 20.8 | 1.1 | 152.2 |
| Right-of-use assets | |||||
Buildings | |||||
and | Machinery and | Other | |||
EUR million | Land | constructions | equipment | tangible assets | Total 2023 |
Acquisition cost on January 1, 2023 | 13.5 | 197.7 | 38.0 | 1.6 | 250.8 |
Additions | 1.4 | 21.9 | 12.8 | 0.7 | 36.9 |
Disposals | -0.0 | -12.8 | -9.7 | -0.2 | -22.7 |
Intra-balance sheet transfer | - | - | - | - | - |
Changes in exchange rates | -0.4 | -2.0 | -0.5 | -0.0 | -2.9 |
Acquisition cost on December 31, 2023 | 14.5 | 204.8 | 40.6 | 2.1 | 262.1 |
Accumulated depreciation and impairment on January 1, 2023 | -5.8 | -77.5 | -19.4 | -0.6 | -103.4 |
Accumulated depreciation on disposals and transfers | 0.0 | 10.0 | 8.1 | 0.1 | 18.2 |
Depreciation during the financial year | -0.6 | -19.0 | -8.3 | -0.4 | -28.3 |
Changes in exchange rates | 0.2 | 0.1 | 0.2 | 0.0 | 0.6 |
Accumulated depreciation and impairment on December 31, | |||||
| 2023 | -6.1 | -86.5 | -19.4 | -1.0 | -113.0 |
Book value on December 31, 2023 | 8.4 | 118.4 | 21.2 | 1.1 | 149.1 |
ACCOUNTING PRINCIPLES
Tangible assets include both owned property, plant and equipment and right-of-use (ROU) assets.
Tangible assets comprising mainly of land, buildings, machinery, tooling and equipment are valued at cost less
accumulated depreciation and impairment losses. The cost of self-constructed assets includes the cost of material, direct
labor costs and an appropriated proportion of production overheads. When an asset includes major components that
have different useful lives, they are accounted for as separate items. The costs of right-of-use assets include the amount
of the initial measurement of the lease liability, any lease payments made at or before the commencement date less
lease incentives received, any direct costs and an estimate of dismantling costs. The carrying amount is further adjusted
for any remeasurement of the lease liability.
Expenditure incurred to replace a component in a tangible asset that is accounted for separately, including major
inspection and overhaul costs, is capitalized. Other subsequent expenditure is capitalized only when it increases the
future economic benefits embodied in the asset. All other expenditure such as ordinary maintenance and repairs is
recognized in the income statement as an expense as incurred. The borrowing costs directly attributable to the
acquisition, construction or production of a qualifying asset are capitalized as part of the acquisition cost.
property, plant and equipment or over the lease term of right-of-use assets. Land is not depreciated.
The estimated useful lives of the owned property, plant and equipment are (years):
Buildings and other structures | 20–40 |
Machinery and equipment | 5–15 |
Other tangible assets and land improvements | 3–12 |
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Directors’ Report and Financial Statements 2024 | 135
Tangible assets which are classified as held for sale are valued at lower of its carrying amount or fair value less costs to
sell. The depreciation of these assets will be ceased when assets are classified as held for sale. Gains or losses arising
from the disposal of tangible assets are included in Earnings before interest and taxes.
The carrying amounts of assets are assessed at each reporting period closing date to determine whether there is any
indication of impairment. If such indication exists, the recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of assets or cash-generating unit exceeds the recoverable amount. Impairment losses
are recognized in the income statement. Impairment losses recognized in respect of cash-generating units are allocated
first to reduce the carrying value of goodwill allocated to groups of cash-generating units and then to reduce the carrying
amount of other assets in the group of units on pro rata bases.
For intangible and tangible assets the recoverable amount is the higher of the fair value less costs to sell and value-in-
use. In assessing value-in-use, the estimated future cash flows are discounted to their present value based on the
average cost of capital rate (pre-tax) of the cash-generating unit where the assets are located, adjusted for risks specific
to the assets.
In respect of tangible assets, and other intangible assets excluding goodwill, impairment losses recognized in prior
periods are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. An
Non-current assets held for sale
On June 8, 2023, it was announced that Huhtamaki has made the decision to consolidate the production footprint of
its Flexible Packaging segment in Europe and will be closing its Flexible Packaging production facility in Prague, Czech
Republic. As a result, the Group reclassified certain assets consisting of land and machinery from property, plant and
equipment to assets held for sale. The amount of non-current assets held for sale was EUR 1.7 million at the end of
year 2024, and the Group expects to dispose these assets over the course of next 12 months. The amount of non-
current assets held for sale was EUR 5.2 million at the end of year 2023, and these assets were sold during the second
quarter of 2024.
ACCOUNTING PRINCIPLES
Non-current assets are classified as held for sale, if their carrying amounts will be recovered mainly through a sale
transaction rather than through continuing use. The assets must be available for immediate sale in their present
condition subject only to terms that are usual and customary for sale of such assets. Also, the sale must be highly
probable and expected to be completed within one year from the date of classification. These assets are presented
separately in the consolidated statement of financial position and measured at the lower of the carrying amount and
fair value less costs to sell. Comparative information is not restated when classification is made. Non-current assets
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Directors’ Report and Financial Statements 2024 | 136
4. Working capital
EUR million |
2024 |
2023 |
Raw and packaging material |
262.4 |
246.5 |
Work-In-Process |
87.7 |
79.6 |
Finished goods |
295.1 |
272.8 |
Goods in transit |
21.4 |
21.9 |
Total |
666.6 |
620.9 |
The value at cost for finished goods amounts to EUR 336.9 million (EUR 316.6 million). An allowance of EUR 41.8
million (EUR 43.7 million) has been established for obsolete items. Total inventories include EUR 8.0 million resulting
from reversals of previously written down values (EUR 0.9 million). Reversals relate to items used in production and sold
finished goods inventories.
ACCOUNTING PRINCIPLES
Inventories are measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price
in the ordinary course of business, less the estimated costs of completion and selling expenses.
Cost of inventories is determined using the first-in first-out (FIFO) principle and include expenditure incurred in acquiring
the inventories and bringing them to their existing location and condition. Costs for produced finished goods and work-
in-process represent the purchase price of materials, direct labor costs, other direct costs and related production
EUR million |
2024 |
2023 |
Trade receivables |
540.5 |
511.0 |
Other receivables |
68.9 |
75.9 |
Accrued interest and other financial items |
14.7 |
10.3 |
Other accrued income and prepaid expenses |
54.1 |
39.4 |
Total |
678.1 |
636.5 |
Other accrued income and prepaid expenses include prepayments for goods, accrued royalty income, rebates and other
miscellaneous accruals.
Gross |
Impairment |
Net |
Gross |
Impairment |
Net |
|
EUR million |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
Not past due |
493.2 |
0.8 |
492.4 |
466.3 |
0.7 |
465.7 |
Past due 0–30 days |
36.4 |
0.2 |
36.2 |
33.6 |
0.2 |
33.4 |
Past due 31–120 days |
10.9 |
0.4 |
10.6 |
10.1 |
0.5 |
9.6 |
Past due more than 120 days |
5.2 |
3.8 |
1.4 |
7.2 |
4.9 |
2.3 |
Total |
545.8 |
5.2 |
540.5 |
517.3 |
6.3 |
511.0 |
ACCOUNTING PRINCIPLES
Trade and other current receivables are financial assets initially measured at fair value and subsequently measured at
amortized cost by using the effective interest method. The Group uses simplified approach to measure a loss allowance
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Directors’ Report and Financial Statements 2024 | 137
for expected credit losses on trade receivables that do not contain a significant financing component, where the Group
always measures the loss allowance at an amount equal to the lifetime expected credit losses. For this purpose, trade
receivables are grouped based on geographical location, product type and customer rating. The Group uses its historical
credit losses experience adjusted with supportable information about current and future conditions to define the
expected credit losses. The amount of expected credit losses is updated at each reporting date.
In factoring arrangements for trade receivables, the sold trade receivables are derecognized once the contractual cash
Restructuring provisions
Restructuring provisions include mainly costs for various ongoing projects to streamline operations. Provisions relate to
employee termination benefits.
During 2024 it was announced that Huhtamaki has decided to consolidate its three Flexible Packaging manufacturing
sites in the United Arab Emirates, keeping one factory in Jebel Ali and expanding the one in Ras Al Khaimah. As a result,
a restructuring provision of EUR 1.6 million was made.
During 2024 it was announced that Huhtamaki is planning to consolidate the production footprint in the Fiber
Foodservice Europe-Asia-Oceania segment by closing its production site in Port Klang, Malaysia, by the end of Q2 2024.
As a result, a restructuring provision of EUR 3.3 million was made.
During 2023 it was announced that Huhtamaki has made the decision to consolidate the production footprint of its
Flexible Packaging segment in Europe and will be closing its Flexible Packaging production facility in Prague, Czech
Republic. As a result, a restructuring provision of EUR 4.4 million was made. The provision was used during 2024.
Other provisions
Other provisions include mainly captive insurance provisions relating to workers, environmental and litigation provisions.
Restructuring |
||||
EUR million |
reserve |
Other |
Total 2024 |
Total 2023 |
Provision on January 1, 2024 |
5.1 |
18.8 |
23.9 |
23.1 |
Translation difference |
0.1 |
0.4 |
0.5 |
-0.6 |
Provisions made during the year |
7.2 |
5.6 |
12.8 |
10.5 |
Provisions used during the year |
-5.9 |
-5.7 |
-11.7 |
-8.9 |
Unused provisions reversed during the year |
-0.3 |
-2.4 |
-2.7 |
-0.2 |
Provision on December 31, 2024 |
6.2 |
16.6 |
22.8 |
23.9 |
Current |
6.2 |
3.2 |
9.4 |
10.5 |
Non-current |
0.0 |
13.4 |
13.4 |
13.4 |
ACCOUNTING PRINCIPLES
Provisions are recognized in the statement of financial position when the Group has a present legal or constructive
obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle
such obligation, and a reliable estimate of the amount of the obligation can be made. Provisions arise from restructuring
plans, onerous contracts, legal proceedings and from environmental litigation risks. Obligations arising from restructuring
plans are recognized when the detailed and formal plans have been established and when there is a valid expectation
that such plan will be carried out (plan has been announced). Provision from emissions is recognized according to actual
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Directors’ Report and Financial Statements 2024 | 138
EUR million |
2024 |
2023 |
Trade payables |
507.0 |
414.9 |
Other payables |
96.4 |
94.0 |
Accrued interest expense and other financial items |
30.3 |
26.5 |
Personnel and social security accruals |
89.6 |
86.9 |
Other accrued expenses |
92.8 |
81.1 |
Total |
816.0 |
703.5 |
Other accrued expenses include accruals for purchases of material and other miscellaneous accruals.
ACCOUNTING PRINCIPLES
EUR million |
2024 |
Payables in supplier finance arrangements |
27.3 |
Supplier has received payment |
20.7 |
Supplier has not yet received payment |
6.6 |
The payables in supplier finance arrangements are presented in Trade and other current liabilities in the statement of
financial position.
2024 |
||
Payment terms within |
Comparative payment terms |
|
EUR million |
arrangements (current) |
without arrangements |
0–30 days |
4.8 |
5.8 |
31–90 days |
8.7 |
16.4 |
91–180 days |
13.9 |
5.1 |
Total |
27.3 |
27.3 |
Huhtamaki has entered into supplier finance arrangements with the terms and conditions of providing extended
payment terms for Huhtamaki, earlier payment possibilities for supplier or both mentioned. Most of the arrangements
provide extended payment terms for Huhtamaki or extended payment terms for Huhtamaki and earlier payment
possibilities for supplier. A few provide only earlier payment possibilities for supplier.
ACCOUNTING PRINCIPLES
A supplier finance arrangement is characterised by one or more finance providers that are offering to pay amounts that
an entity owes to its suppliers. The entity is agreeing to pay according to the terms and conditions of the arrangement
at the same date as, or a date later than, suppliers are paid. When entering into an arrangement, it is considered whether
the terms and conditions of related payables substantially change. If the financing nature is becoming more dominant,
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Directors’ Report and Financial Statements 2024 | 139
5. Capital structure and financial items
EUR million |
2024 |
2023 |
Interest income |
||
Financial assets at amortized cost |
||
Interest-bearing receivables and other receivables |
12.9 |
10.8 |
Financial assets at fair value through profit or loss |
||
Derivatives |
0.7 |
0.2 |
Defined benefit plans |
2.8 |
2.8 |
Dividend income |
||
Other investments |
0.2 |
0.0 |
Financial income |
16.6 |
13.9 |
Interest expense |
||
Financial liabilities measured at amortized cost |
||
Interest-bearing liabilities (excl. lease liabilities) |
-62.3 |
-69.6 |
Lease liabilities |
-6.6 |
-5.5 |
Financial liabilities at fair value through profit or loss |
||
Derivatives |
-5.6 |
6.2 |
Defined benefit plans |
-5.3 |
-5.2 |
Other financial expense |
||
FX revaluation losses |
||
Interest-bearing assets and liabilities |
-4.0 |
-4.7 |
Derivatives |
-2.1 |
-6.5 |
Fees related to committed credit facilities |
-2.4 |
2.3 |
Other fees |
-0.1 |
0.1 |
Financial expense |
-88.3 |
-82.9 |
Net financial items |
-71.8 |
-69.0 |
ACCOUNTING PRINCIPLES
Gains and losses on fair value hedges are reported net of the gain or loss on the hedged item. Only foreign exchange
revaluation gains and losses arising from purely financial exposures such as loans denominated in foreign currencies are
reported in other financial items. Changes in fair value of contingent considations related to business combinations are
2024 |
2024 |
2023 |
2023 |
|
EUR million |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
Current |
||||
Loan receivables |
22.5 |
22.5 |
14.0 |
14.0 |
Finance lease receivables |
2.4 |
2.4 |
1.2 |
1.2 |
Current interest-bearing |
||||
receivables |
24.9 |
24.9 |
15.2 |
15.2 |
Non-current |
||||
Loan receivables |
0.1 |
0.1 |
0.1 |
0.1 |
Finance lease receivables |
4.1 |
4.1 |
2.2 |
2.2 |
Non-current interest-bearing |
||||
receivables |
4.2 |
4.2 |
2.4 |
2.4 |
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Directors’ Report and Financial Statements 2024 | 140
EUR million | 2024 | 2023 |
Finance lease receivable is payable as follows: | ||
In less than one year | 2.4 | 1.2 |
Between one and five years | 4.1 | 2.2 |
Total minimum lease payments | 6.5 | 3.4 |
Present value of minimum lease payments | ||
In less than one year | 2.1 | 1.0 |
Between one and five years | 3.7 | 2.1 |
Total present value of minimum lease payments | 5.8 | 3.1 |
Unearned future financial income | 0.7 | 0.4 |
ACCOUNTING PRINCIPLES
Interest bearing receivables are measured at amortized cost. Fair values have been calculated by discounting future cash
flows of each major receivable at the appropriate market interest rate prevailing at closing date. The fair value of current
EUR million | 2024 | 2023 |
Cash and bank | 300.2 | 255.0 |
Liquid marketable securities | 16.9 | 93.2 |
Total | 317.1 | 348.2 |
ACCOUNTING PRINCIPLES
Cash and cash equivalents comprise of cash at bank and short-term highly liquid deposits and money market securities
Share capital | Number of shares | Share capital EUR | Share premium EUR | Treasury shares EUR | Total EUR |
January 1, 2023 | 107,760,385 | 366,385,309.00 | 115,023,103.38 | -31,205,188.88 | 450,203,223.50 |
Own shares conveyance through performance | |||||
| share incentive plan | - | - | - | 1,594,440.60 | 1,594,440.60 |
December 31, 2023 | 107,760,385 | 366,385,309.00 | 115,023,103.38 | -29,610,748.28 | 451,797,664.10 |
Own shares conveyance through performance | |||||
| share incentive plan | - | - | - | 2,044,859.39 | 2,044,859.39 |
December 31, 2024 | 107,760,385 | 366,385,309.00 | 115,023,103.38 | -27,565,888.89 | 453,842,523.49 |
All shares issued are fully paid.
Share capital of the parent company
Huhtamäki Oyj has one series of shares. Each share entitles its holder to equal voting rights and equal distribution of
dividend and other assets. The Company’s Articles of Association do not contain rules regarding the minimum or
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Directors’ Report and Financial Statements 2024 | 141
maximum number of shares or the minimum or maximum share capital. Shares do not have a nominal value. All shares
issued are fully paid.
The amount of the subscription price exceeding the par value of shares (EUR 3.40) received by the Company in
connection with share subscriptions based on option rights granted under the option rights plan established under the
old Companies Act (734/1978) has been recorded in the share premium. The Company’s last existing option rights plan
ceased on April 30, 2014.
repurchased in total 5,061,089 own shares during 2002 and 2003. After 2003 no own shares have been repurchased.
The Annual General Meeting of Shareholders on April 25, 2024 authorized the Board of Directors to decide on the
repurchase of the Company’s own shares. The authorization remains in force until the end of the next Annual General
Meeting, however, no longer than until June 30, 2025. The authorization by Annual General Meeting on April 27, 2023
to the Board of Directors to resolve on the repurchase of own shares terminated at the end of the Annual General
Meeting on April 25, 2024.
The Annual General Meeting of Shareholders on April 25, 2024 authorized the Board of Directors to decide on the
issuance of shares as well as the issuance of special rights entitling to shares. The authorization remains in force until
the end of the next Annual General Meeting, however, no longer than until June 30, 2025. This authorization cancelled
the authorization given by the Annual General Meeting on April 27, 2023 to decide on the issuance of shares as well
as the issuance of special rights entitling to shares. During 2024 a total of 222,519 (173,505) own shares were
transferred based on the authorization in force at that time.
Members of the Board of Directors and the CEO of the Company owned on December 31, 2024 a total of 134,528
(101,929) shares. These shares represented 0.12% (0.09%)
of the total number of shares and voting rights in the
Proposal of the Board of Directors to distribute the earnings
financial period was EUR 774,625,471.85. The Board of Directors proposes that dividend will be distributed at EUR
1.10 per share. No dividend for the own shares held by the Company on the record date shall be distributed. The total
No significant changes have taken place in the Company’s financial position since the end of the financial year. The
Company’s liquidity position is good and the proposed distribution does not, in the view of the Board of Directors, risk
the Company’s ability to fulfill its obligations.
Treasury shares
Treasury shares include the purchase price of Huhtamäki Oyj’s shares held by Group companies. In 2024 a total of
222,519 (173,505) own shares were transferred. There are no additions in treasury shares in 2024.
Translation differences contain the differences resulting from the translation of foreign entities’ financial statements
into euros. Also gains and losses from net investments in foreign entities are reported in translation differences. Hedges
of those investments are reported in translation differences, if hedge accounting criteria is met.
Fair value and other reserves
Fair value and other reserves contain the effective portion of the fair value changes derivative instruments designated
as cash flow hedges, the change in fair value of other investments and remeasurements on defined benefit plans. Also
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Directors’ Report and Financial Statements 2024 | 142
ACCOUNTING PRINCIPLES
Equity, dividends and own shares
The Group’s equity includes instruments that evidences a residual interest in the assets of an entity after deducting all
of its liabilities and contains no contractual obligation for the issuer to deliver cash or other financial asset to another
entity or to exchange financial assets or financial liabilities with another entity under conditions which are unfavorable
to the issuer. When Huhtamäki Oyj’s own shares are repurchased, the amount of the consideration paid, including
recognized in the financial statements until the shareholders have approved them at the Annual General Meeting.
All derivative financial instruments are measured at fair value. The Group applies hedge accounting for certain interest
rate swaps and foreign exchange forwards that meet hedge accounting criteria as defined in IFRS 9. The hedged item
must be highly probable to occur and must ultimately affect the income statement. The hedges must be highly effective
prospectively. For qualifying cash flow hedges, the portion of any change in fair value that is effective is included in
other comprehensive income, and any remaining ineffective portion is recognized in the income statement. The
cumulative changes of fair value of the hedging instrument that have been recognized in equity are transferred from
equity and included in the income statement when the forecasted transaction is recognized in the income statement.
When the hedged forecast transaction subsequently results in the recognition of non-financial asset or non-financial
liability, the cumulative change of fair value of the hedging instrument that has been recognized in equity is transferred
from equity and included in the initial carrying amount of the asset or liability at the time it is recognized.
For qualifying fair value hedges, the valuation is recognized in the income statement relating to the hedged risk.
Derivative instruments that are designated as hedging instruments but not accounted for according to the principles of
hedge accounting or which do not fulfill IFRS 9 hedge accounting requirements are classified as financial instruments at
fair value through profit or loss and valued at fair value. Changes in fair values of these derivative financial instruments
are recognized in the income statement. A non-split presentation is applied to liabilities at fair value through profit or
loss because the presentation in OCI would create or enlarge an accounting mismatch in profit or loss.
The Group uses foreign exchange forwards and foreign currency loans to hedge net investments in foreign entities.
Hedges of net investment in foreign entities must meet the same hedge accounting criteria as cash flow hedges as
detailed in IFRS 9. All changes in fair value arising from the hedges are recognized as a translation difference in other
comprehensive income if hedge accounting criteria are met. If the hedged entity is disposed of, the cumulative changes
in fair value of the hedging instrument that have been recognized in equity are included in the income statement at the
1
Directors’ Report and Financial Statements 2024 | 143
2024 | 2023 | |||
EUR million | Carrying amount | Fair value | Carrying amount | Fair value |
Current | ||||
Loans from financial institutions | ||||
fixed rate | 103.8 | 102.4 | 19.9 | 19.6 |
floating rate | 102.1 | 103.3 | 106.5 | 108.0 |
Bonds | ||||
fixed rate | - | - | 99.7 | 96.1 |
Other current loans | ||||
floating rate | 0.2 | 0.2 | 0.2 | 0.2 |
Contingent considerations | - | - | - | - |
Lease liabilities | 26.7 | 26.7 | 24.8 | 24.8 |
Total | 232.8 | 232.6 | 251.0 | 248.7 |
Non-current | ||||
Loans from financial institutions | ||||
fixed rate | 33.3 | 32.7 | 33.6 | 32.0 |
floating rate | 183.6 | 183.6 | 259.6 | 288.4 |
Bonds | ||||
fixed rate | 972.2 | 976.9 | 971.2 | 962.7 |
Other non-current loans | ||||
floating rate | 1.1 | 1.1 | 2.1 | 2.1 |
Contingent considerations | - | - | - | - |
Lease liabilities | 138.9 | 138.9 | 136.5 | 136.5 |
Total | 1,329.1 | 1,333.3 | 1,403.0 | 1,421.7 |
Loans from | ||||||
financial | Contingent | |||||
Repayment | institutions | Bonds | Other loans | considerations | Lease liabilities | Total |
2025 | 205.9 | - | 0.2 | - | 26.7 | 232.8 |
2026 | 134.9 | 174.8 | 1.1 | - | 39.9 | 350.8 |
2027 | 30.6 | 498.7 | - | - | 15.5 | 544.8 |
2028 | 3.4 | 298.7 | - | - | 13.3 | 315.5 |
2029 | 47.9 | - | - | - | 10.7 | 58.6 |
2030– | - | - | - | - | 59.4 | 59.4 |
Interest-bearing loans and borrowings are classified as other liabilities. Interest-bearing loans and borrowings are
originated loans and bank loans, and are carried at amortized cost by using the effective interest rate method. All
interest-bearing liabilities are other liabilities than liabilities for trading purposes or derivative financial instruments
defined in IFRS 9 and as such are carried at amortized cost. Fair values have been calculated by discounting future cash
flows at the appropriate market interest rate prevailing at period end closing date. Interest rates for measuring fair values
of interest-bearing liabilities were 3.51%–5.47%. The fair value of current interest-bearing liabilities is estimated to equal
the carrying amount.
Contingent considerations related to business combinations classified as financial liabilities are measured at fair value
through profit or loss and reported in the interest-bearing liabilities.
Lease liabilities are recognized at the commencement date of the lease. Lease liabilities are measured at the present
value of future lease payments using an effective interest rate method. The carrying amount is reduced to reflect the
lease payments made and the interest expense is allocated over the lease term. A lease liability is remeasured, when
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Directors’ Report and Financial Statements 2024 | 144
Reconciliation of liabilities arising from financing activities
| 2024 | 2023 | |||||||
| Non-cash changes | ||||||||
Reclassification | ||||||||
Business | Contingent | Foreign exchange | from long-term | |||||
EUR million | Total | Cash flows | combinations | considerations | movement | to short-term | Other | Total |
Long-term loans | 1,190.2 | 36.3 | - | - | 2.5 | -85.5 | -29.7 | 1,266.6 |
Short-term loans | 206.1 | -127.7 | - | - | -1.1 | 85.5 | 23.3 | 226.2 |
Long-term lease liabilities | 138.9 | - | - | - | 3.4 | -21.9 | 20.9 | 136.5 |
Short-term lease liabilities | 26.7 | -34.5 | - | - | 0.4 | 21.9 | 14.2 | 24.8 |
Total liabilities from financing | ||||||||
activities | 1,561.9 | -125.9 | - | - | 5.2 | - | 28.7 | 1,654.0 |
| 2023 | 2022 | |||||||
| Non-cash changes | ||||||||
Reclassification | ||||||||
Business | Contingent | Foreign exchange | from long-term | |||||
EUR million | Total | Cash flows | combinations | considerations | movement | to short-term | Other | Total |
Long-term loans | 1,266.6 | 426.9 | - | - | -2.8 | -435.0 | 6.8 | 1,270.6 |
Short-term loans | 226.2 | -540.3 | - | -20.0 | -5.2 | 435.0 | 10.4 | 346.2 |
Long-term lease liabilities | 136.5 | - | - | - | -2.5 | -20.9 | 26.7 | 133.2 |
Short-term lease liabilities | 24.8 | -28.8 | - | - | -0.5 | 20.9 | 7.8 | 25.3 |
Total liabilities from financing | ||||||||
| activities | 1,654.0 | -142.2 | - | -20.0 | -10.9 | - | 51.8 | 1,775.4 |
5.6. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
EUR million | 2024 | 2023 |
Financial assets at fair value through profit or loss | ||
Derivatives | 12.6 | 5.9 |
Other investments | 1.4 | - |
Fair value through other comprehensive income | ||
Derivatives designated for hedge accounting | 10.2 | 7.9 |
Other investments | 1.5 | 2.3 |
Financial assets at amortized cost | ||
Non-current interest-bearing receivables | 4.2 | 2.4 |
Other non-current assets | 0.5 | 17.0 |
Current interest-bearing receivables | 24.9 | 15.2 |
Trade and other current receivables | 609.6 | 569.9 |
Cash and cash equivalents | 317.1 | 348.2 |
Financial assets total | 981.9 | 968.6 |
Financial liabilities at fair value through profit or loss | ||
Derivatives | 4.9 | 9.3 |
Contingent considerations | - | - |
Fair value through other comprehensive income | ||
Derivatives designated for hedge accounting | 11.2 | 0.2 |
Financial liabilities at amortized cost | ||
Non-current interest-bearing liabilities | 1,329.1 | 1,403.0 |
Other non-current liabilities | 3.8 | 12.8 |
Current portion of long-term loans | 114.1 | 167.3 |
Short term loans | 118.7 | 83.7 |
Trade and other current liabilities | 571.3 | 485.5 |
Financial liabilities total | 2,153.1 | 2,161.8 |
In the statement of financial position derivatives are included in the following groups: Non-current interest bearing
liabilities, other non-current assets, trade and other current receivables, other non-current liabilities and trade and other
current liabilities.
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Directors’ Report and Financial Statements 2024 | 145
ACCOUNTING PRINCIPLES
Financial assets are classified according to IFRS 9 on the basis of the Group’s business model for managing the financial
assets and the contractual cash flow characteristics to the following categories: financial assets at fair value through
profit or loss, financial assets at fair value through OCI and financial assets at amortized cost. Financial liabilities are
Publicly traded and unlisted shares are classified as financial assets at fair value through OCI. Publicly traded shares are
recognized at fair value, which is based on quoted market prices at the reporting period closing date. Gains or losses
arising from changes in fair value are recognized in other comprehensive income and are presented in equity in fair
value reserves. Unlisted shares are measured at cost, as their fair value cannot be measured reliably.
Non-derivative assets with fixed or determinable payments that are not quoted in an active market are classified as
financial assets at amortized cost. Trade receivables and other receivables are included in this category. Trade and other
receivables are measured at amortized cost by using the effective interest rate method.
The Group recognizes a loss allowance for expected credit losses on financial assets based on the general approach,
where a loss allowance is measured at amount equal to 12-month expected credit losses if there has not been a
significant increase in credit risk since the initial recognition. The Group measures expected credit losses based on
historical credit losses experience, current and future conditions. Simplified approach is used for trade receivables that
do not contain a significant financing component, where the Group always measures the loss allowance at an amount
equal to the lifetime expected credit losses. The amount of expected credit losses is updated at each reporting date.
values of foreign exchange options are calculated with the Garman-Kohlhagen model. Fair values of interest rate swaps,
futures and forwards are based on net present values of estimated future cash flows. Cash, short-term loans and
overdrafts have fair values that approximate to their carrying amounts because of their short-term nature. The
recoverable amount for financial investments is calculated as the present value of expected future cash flows,
Contingent considerations related to business combinations classified as financial liabilities are measured at fair value
through profit or loss and reported in the interest-bearing liabilities.
EUR million | ||||
Financial instruments measured at fair value | Level 1 | Level 2 | Level 3 | Total 2024 |
Assets | ||||
Derivatives | ||||
Currency derivatives | - | 14.1 | - | 14.1 |
Interest rate derivatives | - | 8.2 | - | 8.2 |
Commodity derivatives | 0.4 | - | - | 0.4 |
Other investments | - | - | 2.8 | 2.8 |
Total | 0.4 | 22.4 | 2.8 | 25.6 |
Liabilities | ||||
Derivatives | ||||
Currency derivatives | - | 13.7 | - | 13.7 |
Interest rate derivatives | - | 2.4 | - | 2.4 |
Commodity derivatives | -0.0 | - | - | -0.0 |
Contingent considerations | - | - | - | - |
Total | -0.0 | 16.1 | - | 16.1 |
EUR million | ||||
Financial instruments measured at fair value | Level 1 | Level 2 | Level 3 | Total 2023 |
Assets | ||||
Derivatives | ||||
Currency derivatives | - | 8.6 | - | 8.6 |
1
Directors’ Report and Financial Statements 2024 | 146
Interest rate derivatives |
- |
4.9 |
- |
4.9 |
Commodity derivatives |
0.3 |
- |
- |
0.3 |
Other investments |
- |
- |
2.3 |
2.3 |
Total |
0.3 |
13.5 |
2.3 |
16.0 |
Liabilities |
||||
Derivatives |
||||
Currency derivatives |
- |
9.2 |
- |
9.2 |
Interest rate derivatives |
- |
0.3 |
- |
0.3 |
Commodity derivatives |
-0.0 |
- |
- |
-0.0 |
Contingent considerations |
- |
- |
- |
- |
Total |
-0.0 |
9.5 |
- |
9.5 |
The Group uses income approach in determining the fair value. Inputs used are foreign exchange rates, interest rates
and yield curves as well as implied volatilities.
Group’s currency and interest rate derivatives are subject to International Swaps and Derivatives Association (ISDA)
master netting agreements. The amounts are not offset in the statement of financial position.
Unquoted investments are carried at cost, as their fair value cannot be measured reliably.
The levels of the fair value hierarchy are defined as follows:
Level 1: Quoted prices in active markets.
Level 2: Valuation techniques based on observable market data.
The objective of financial risk management is to ensure that the Group has access to sufficient funding in the most cost-
efficient way and to minimize the impact on the Group from adverse movements in the financial markets. As defined in
the Group Treasury Policy, management of financial risks is guided and controlled by a Finance Committee, led by the
Chief Financial Officer (CFO). The Finance Committee reviews risk reports on the Group’s interest-bearing balance
sheet items, commercial flows, derivatives and foreign exchange exposures and approves required measures on a
monthly basis.
The Group Treasury department at the Espoo headquarters is responsible for the Group’s funding and risk management
and serves the business units in daily financing, foreign exchange transactions and cash management coordination.
The Group is exposed to exchange rate risk through cross-border trade within the Group, exports and imports, funding
of foreign subsidiaries and currency denominated equities.
Transaction risk
The largest transaction exposures derive from capital flows, imports, exports and royalty receivables. The objective of
currency transaction risk management is to protect the Group from negative exchange rate movements. Business units
are responsible for actively managing their currency risks related to future commercial cash flows, in accordance with
policies and limits defined by the business unit and approved by the Finance Committee. As a rule, commercial
receivables and payables recorded on the balance sheet are always fully hedged, as well as 25% of probable flows over
1
Directors’ Report and Financial Statements 2024 | 147
a minimum 12 month horizon. Eligible hedging instruments include currency forwards and in authorized subsidiaries
also currency options. The business units’ counterparty in hedging transactions is mainly Huhtamäki Oyj.
| USD | ||||||||||
exposure | USD | |||||||||
EUR exposure | CNY exposure | in | exposure | |||||||
in companies | in companies | companies | in companies | USD exposure | ||||||
reporting in | reporting in | reporting | reporting in | in companies | ||||||
EUR million | GBP | HKD | in AUD | EUR | reporting in INR | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Trade receivables | 3.6 | 8.4 | 0.0 | 0.1 | 0.9 | 1.2 | 10.0 | - | 20.3 | 19.2 |
Trade payables | -12.8 | -19.4 | -3.3 | -3.9 | -6.5 | -9.6 | -10.1 | -4.3 | -9.5 | -6.3 |
Net balance sheet exposure | -9.3 | -11.0 | -3.3 | -3.8 | -5.6 | -8.5 | -0.1 | -4.3 | 10.8 | 12.9 |
Forecasted sales (12 months) | 17.0 | 19.4 | 0.2 | 0.1 | 4.6 | 6.6 | 45.9 | - | 62.8 | 65.4 |
Forecasted purchases (12 months) | -74.7 | -90.5 | -16.1 | -17.0 | -67.7 | -49.6 | -53.2 | -10.1 | -42.1 | -38.9 |
Net forecasted exposure | -57.7 | -71.1 | -15.9 | -16.8 | -63.1 | -43.0 | -7.3 | -10.1 | 20.7 | 26.6 |
Hedges | ||||||||||
Currency forwards (12 months) | 35.3 | 39.3 | 1.0 | 7.4 | 19.5 | 21.0 | 2.5 | 7.7 | -13.9 | -16.6 |
Currency options (12 months) | - | - | 6.4 | - | - | - | - | - | - | - |
Total net exposure | -31.7 | -42.7 | -11.7 | -13.2 | -49.3 | -30.4 | -4.9 | -6.7 | 17.6 | 22.9 |
Translation risk
As a main rule individual subsidiaries do not carry translation risk as they are financed in local currencies. As an exception,
the Finance Committee can approve the use of foreign currency borrowing in countries with high local interest rates.
In 2024 and 2023 on reporting period closing dates no such borrowings were outstanding.
The main translation exposures derive from equities and permanent loans, which in substance form a part of the net
investment in the US, India and UK based subsidiaries. The Group hedges its translation risks selectively by using foreign
currency loans and derivatives. Equity hedging decisions are made by the Finance Committee, who in its decision making
considers the hedge’s estimated impact on the Group’s key indicators, long-term cash flows and hedging cost. On the
reporting period closing date the Group had outstanding translation risk hedges of USD 223 million (of which USD 50
million in the form of currency loans and USD 173 million in the form of derivatives) and of GBP 20 million (of which
GBP 20 million in the form of derivatives) (USD 223 million, of which USD 50 million in the form of currency loans and
USD 173 million in the form of derivatives and GBP 20 million, of which GBP 20 million in the form of derivatives).
A 10% appreciation of the EUR versus the USD, INR and GBP would as of the reporting period closing date decrease
the result before taxes by EUR 18.4 million (EUR 21.3 million) and the Group consolidated equity by EUR 145.2 million
(EUR 126.1 million).
Interest rate risk
The interest-bearing debt exposes the Group to interest rate risk, namely re-pricing and price risk caused by interest
rate movements. Management of interest rate risk is centralized to the Group Treasury. The Group’s policy is to maintain
in the main currency debt portfolios a duration that matches a benchmark duration range based on the Group’s
estimated cash flow, selected balance sheet ratios and also the shape of the yield curve. The objective of interest rate
risk management is to reduce the fluctuation of the interest charge, enabling a more stable net income. The Group
manages interest rate risk by selection of debt interest periods and by using derivatives such as futures, forward rate
agreements, interest rate swaps and options.
At the reporting period closing date the average interest rate on Group interest-bearing net debt was 4.1% (4.2% ) and
average duration 1.9 years (2.4 years). A one percentage point rise in market interest rates would increase Group net
interest expense by EUR 3.4 million (EUR 2.7 million) over the following 12 months. A similar rise in interest rates would
increase Group equity with EUR 1.3 million (EUR 1.7 million) due to mark-to-market revaluations of interest rate
derivatives designated for cash flow hedges.
1
Directors’ Report and Financial Statements 2024 | 148
Currency split and repricing schedule of outstanding net debt including hedges (excl. lease liabilities)
2024 |
2023 |
||||||
Debt repricing in period, incl. derivatives |
|||||||
Amount |
Amount |
||||||
Currency |
EUR million |
2025 |
2026 |
2027 |
2028 |
2029 |
EUR million |
EUR |
1,078.7 |
273.2 |
125.0 |
530.5 |
150.0 |
- |
1,029.7 |
HKD |
93.0 |
93.0 |
- |
- |
- |
- |
81.2 |
GBP |
66.4 |
66.4 |
- |
- |
- |
- |
64.7 |
AUD |
22.3 |
22.3 |
- |
- |
- |
- |
25.4 |
VND |
17.9 |
17.9 |
- |
- |
- |
- |
5.1 |
Other |
-228.1 |
-280.8 |
14.4 |
14.4 |
23.9 |
- |
-79.3 |
Total |
1,050.1 |
191.9 |
139.4 |
544.9 |
173.9 |
- |
1,127.0 |
The Group maintains sufficient liquidity reserves at all times by efficient cash management structures such as cash pools,
concentration accounts and overdraft financing facilities. To mitigate the refinancing risk, the Group diversifies funding
sources as well as the maturity structure of loans and debt facilities. The Group utilizes a EUR 400 million Finnish
commercial paper program and uncommitted credit facilities with relationship banks for short-term financing purposes.
At the reporting period closing date, the Group had committed credit facilities totaling EUR 450 million (EUR 400 million)
of which EUR
402 million (EUR 355 million) remained undrawn. Undrawn committed long-term debt facilities are
sufficient to ensure adequate financing resources in all foreseeable circumstances. On November 12, 2024, Huhtamäki
Oyj signed a EUR 450 million sustainability-linked syndicated multi-currency revolving credit facility loan agreement
(“RCF”) with a maturity of five () years. The RCF refinanced an existing EUR 400 million sustainability-linked syndicated
revolving credit facility signed in January 2021 and will be used for general corporate purposes of the Group. The RCF
has two one-year extension options at the discretion of the lenders.
Huhtamäki Oyj has a long-term issuer credit rating of BB+ with a positive outlook from S&P Global Ratings Europe
Limited.
EUR million including interests |
2024 |
||||||||
| Maturity of facility/loan |
|||||||||
Amount |
|||||||||
Amount |
available of |
||||||||
Debt type |
drawn |
committed |
Total |
2025 |
2026 |
2027 |
2028 |
2029 |
Later |
Committed revolving facilities |
47.9 |
402.1 |
450.0 |
- |
- |
- |
- |
450.0 |
- |
Bonds |
972.2 |
- |
972.2 |
- |
174.8 |
498.7 |
298.7 |
- |
- |
Commercial paper program |
72.0 |
- |
72.0 |
72.0 |
- |
- |
- |
- |
- |
Other loans from financial institutions |
303.8 |
- |
303.8 |
138.1 |
131.5 |
30.6 |
3.5 |
0.0 |
0.0 |
Estimated contractual interest payments |
- |
- |
147.8 |
50.2 |
44.9 |
37.3 |
15.4 |
- |
- |
Contingent liabilities |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Lease liabilities |
166.1 |
- |
166.1 |
32.2 |
35.0 |
15.5 |
13.3 |
10.7 |
59.4 |
Trade and other current liabilities |
617.1 |
- |
617.1 |
617.1 |
- |
- |
- |
- |
- |
Total |
2,179.0 |
402.1 |
2,728.9 |
909.6 |
386.2 |
582.1 |
330.9 |
460.7 |
59.4 |
EUR million including interests |
2023 |
||||||||
| Maturity of facility/loan |
|||||||||
Amount |
|||||||||
Amount |
available of |
||||||||
Debt type |
drawn |
committed |
Total |
2024 |
2025 |
2026 |
2027 |
2028 |
Later |
Committed revolving facilities |
45.0 |
355.0 |
400.0 |
- |
- |
400.0 |
- |
- |
- |
Bonds |
1,070.9 |
- |
1,070.9 |
99.7 |
- |
174.7 |
498.1 |
298.4 |
- |
Commercial paper program |
50.5 |
- |
50.5 |
50.5 |
- |
- |
- |
- |
- |
Other loans from financial institutions |
326.4 |
- |
326.4 |
76.1 |
215.1 |
4.6 |
30.6 |
- |
- |
Estimated contractual interest payments |
- |
- |
184.2 |
49.3 |
42.8 |
39.5 |
37.3 |
15.4 |
- |
Contingent liabilities |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Lease liabilities |
161.3 |
- |
161.3 |
24.8 |
35.0 |
14.2 |
11.7 |
10.2 |
65.4 |
Trade and other current liabilities |
518.1 |
- |
518.1 |
518.1 |
- |
- |
- |
- |
- |
Total |
2,172.2 |
355.0 |
2,711.5 |
818.5 |
293.0 |
633.0 |
577.7 |
324.0 |
65.4 |
1
Directors’ Report and Financial Statements 2024 | 149
Bonds
2024 |
2023 |
||||||
EUR million |
Currency |
Interest rate |
Outstanding loan principal amount |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
2017-2024 |
EUR |
1.625% |
- |
- |
- |
99.7 |
96.1 |
2019-2026 |
EUR |
1.125% |
175.0 |
174.8 |
167.7 |
174.7 |
162.3 |
2022-2027 |
EUR |
4.250% |
500.0 |
498.7 |
503.2 |
498.1 |
493.7 |
2023-2028 |
EUR |
5.125% |
300.0 |
298.7 |
308.9 |
298.4 |
306.7 |
Total |
975.0 |
972.2 |
979.7 |
1,070.9 |
1,058.8 |
||
The Group is exposed to credit risk from its commercial receivables and receivables from financial institutions based on
short-term investment of liquid funds as well as derivatives transactions.
The business units are responsible for the management of commercial credit risk in accordance with policies defined by
the business units and approved by the Finance Committee. A Group policy sets out certain minimum requirements as
to credit quality, sales terms and collection. The commercial credit risk for the Group as a whole is considered low as
the receivable portfolio is diversified and historical credit loss frequency is low (see note 4.2.).
Liquid funds are from time to time invested in short-term bank deposits at relationship banks with a solid credit rating,
in government bonds, treasury bills or in commercial papers issued by corporate borrowers with an investment grade
rating. Credit risk stemming from receivables from financial institutions, including derivative transaction settlements, is
considered small and is managed centrally by the Group Treasury department and in accordance with limits set by the
The Group’s objective is to maintain an efficient capital structure. Consequently, the Group aims to maintain in the long
term the net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio in a range between
2–3. Net debt is defined as interest-bearing liabilities less interest-bearing receivables, cash and cash equivalents.
The Group is at all times directly subject to a restriction on its net debt to EBITDA ratio (excluding items affecting
comparability) through clauses in key financing agreements. As of the balance sheet date, financing agreements subject
to the clause amounted to EUR 691 million (EUR 676 million). In addition, certain other financing agreements amounting
to EUR 975 million (EUR 1,075 million) are indirectly subject to this restriction through cross default clauses. The
restrictions are not seen hindering the Group’s ability to carry out its business or its strategy.
Changes in the capital structure are resulting from capital investments in the business and cash returns to shareholders,
which are funded by the stable cash flow.
Capital structure
EUR million |
2024 |
2023 |
Interest-bearing liabilities |
1,561.9 |
1,654.0 |
Interest-bearing receivables, cash and cash equivalents |
346.2 |
365.7 |
Net debt |
1,215.7 |
1,288.3 |
Total equity |
2,124.1 |
1,924.9 |
Net debt to equity (Gearing ratio) |
0.57 |
0.67 |
Net debt to EBITDA (excluding items affecting comparability) |
1.95 |
2.18 |
1
Directors’ Report and Financial Statements 2024 | 150
EUR million |
2024 |
2023 |
||||||
Nominal Value |
Maturity Structure |
Nominal Value |
||||||
Instrument |
2025 |
2026 |
2027 |
2028 |
2029 |
Later |
||
Currency forwards |
||||||||
for transaction risk |
||||||||
Outflow |
-121.6 |
-119.9 |
-1.7 |
- |
- |
- |
- |
-196.1 |
Inflow |
122.5 |
120.8 |
1.7 |
- |
- |
- |
- |
195.0 |
for translation risk |
||||||||
Outflow |
-189.8 |
-189.8 |
- |
- |
- |
- |
- |
-178.6 |
Inflow |
180.9 |
180.9 |
- |
- |
- |
- |
- |
180.7 |
for financing purposes |
||||||||
Outflow |
-819.4 |
-819.4 |
- |
- |
- |
- |
- |
-646.0 |
Inflow |
826.5 |
826.5 |
- |
- |
- |
- |
- |
643.3 |
Currency options |
||||||||
for transaction risk |
||||||||
Bought options |
12.2 |
12.2 |
- |
- |
- |
- |
- |
- |
Sold options |
-12.2 |
-12.2 |
- |
- |
- |
- |
- |
- |
Interest rate swaps |
||||||||
EUR |
-200.0 |
- |
-50.0 |
- |
-150.0 |
- |
- |
-200.0 |
USD |
71.8 |
9.6 |
14.4 |
14.4 |
33.5 |
- |
- |
76.5 |
Fair values of derivative financial instruments
EUR million |
2024 |
2023 |
||||
Positive |
Negative |
Net Fair |
Positive |
Negative |
Net Fair |
|
Instrument |
Fair values |
Fair values |
values |
Fair values |
Fair values |
values |
Currency forwards |
||||||
for transaction risk |
3.2 |
-2.0 |
1.1 |
1.4 |
-2.9 |
-1.5 |
of which cash flow hedges 1 |
1.9 |
-0.9 |
1.0 |
0.8 |
-1.2 |
-0.4 |
for translation risk |
0.1 |
-7.9 |
-7.9 |
2.8 |
- |
2.8 |
of which hedges of net investment 2 |
0.1 |
-7.9 |
-7.9 |
2.8 |
- |
2.8 |
for financing purposes |
11.2 |
-3.7 |
7.5 |
4.6 |
-6.3 |
-1.7 |
Currency options |
||||||
for transaction risk |
0.1 |
-0.2 |
-0.2 |
- |
- |
- |
Interest rate swaps 3 |
||||||
EUR |
4.3 |
-2.4 |
1.9 |
4.3 |
-4.0 |
0.3 |
of which fair value hedges 4 |
4.3 |
-2.4 |
1.9 |
4.3 |
-4.0 |
0.3 |
USD |
3.9 |
- |
3.9 |
4.7 |
- |
4.7 |
of which cash flow hedges 5 |
3.9 |
- |
3.9 |
4.7 |
- |
4.7 |
Commodities |
0.4 |
-0.0 |
0.4 |
0.3 |
-0.0 |
0.3 |
1
Fair values of currency forwards designated as cash flow hedges are reported in fair value and other reserves.
2
Fair values of currency forwards designated as hedges of net investment in foreign subsidiaries are reported in equity in translation difference.
3
Fair values of interest rate swaps include accrued interest which is reported in the income statement in financial expense
4
Fair values of interest rate swaps designated as fair value hedges are reported in the income statement in financial income.
5
1
Directors’ Report and Financial Statements 2024 | 151
6. Other disclosures
Sustainability is integral to Huhtamaki’s 2030 Strategy. The ambition is to become the first choice in sustainable
packaging solutions. The sustainability agenda focuses on two key topics: transitioning to a circular economy and taking
climate action, whilst not forgetting other environmental and social aspects of sustainability.
To achieve Huhtamaki’s ambition, management is continuously considering climate related matters when conducting
the business. These considerations and related assumptions have been reflected in the estimates and judgements of
the reported amounts of assets, liabilities, income and expense.
The items in the consolidated financial statements that are impacted by climate related assumptions in particular:
•
Goodwill: The Group has defined EBIT and discount rates as the key assumptions in the goodwill impairment
testing. Climate related risks and opportunities have been recognized and evaluated as part of the strategy-
based EBIT estimates together with other factors impacting the business development. (Note 3.2. Goodwill)
•
Intangible and tangible assets:
o
Climate related matters may impact the recognition and measurement of intangible and tangible assets.
In the end of the reporting period, climate related matters did not have material impact to the estimated
useful lives of the assets, nor to the impairment of assets. The Group continues to invest in sustainable
packaging solutions. (Note 3.3. Intangible assets and Note 3.4. Tangible assets)
o
Emission rights and renewable energy certificates are in scope of IAS 38 Intangible assets. (Note 3.3.
Intangible assets)
•
Other non-current assets: The Group has signed two major virtual power purchase agreements to reach its
target for using 100% renewable electricity and carbon neutral production by 2030. The agreements are in
scope of IFRS 9 Financial Instruments. (Note 5.7. Financial assets and liabilities by category).
•
Inventory: Climate related matters may impact the measurement of the inventories. In the end of the reporting
period, climate related matters did not have material impact to the net realizable value. (Note 4.1. Inventories)
•
Interest-bearing liabilities:
o
In 2024, the Group has signed a EUR 450 million sustainability-linked syndicated multicurrency
revolving credit facility loan agreement (“RCF”). The interest margin is tied to three sustainability
indicators: 1) Absolute Scope 1 and 2 greenhouse gas emissions amount, 2) Share of non-hazardous
waste recycled and 3) EcoVadis rating. The loan margin decreases or increases according to the number
of targets achieved for the three sustainability indicators. (Note 5.6. Interest-bearing liabilities)
o
In 2023, the Group has signed a EUR 125 million sustainability-linked bilateral term loan facility
agreement. The interest margin is tied to three sustainability indicators: 1) Absolute Scope 1 and 2
greenhouse gas emissions amount, 2) Share of non-hazardous waste recycled and 3) Ecovadis Rating.
(Note 5.6. Interest-bearing liabilities)
o
In 2022, the Group has issued a EUR 500 million senior unsecured sustainability-linked bond under its
Sustainability-Linked Bond Framework. The interest rate is subject to increase upon the failure to
satisfy certain sustainability performance targets. The chosen targets for the sustainability-linked bond
are related to greenhouse gas emission reductions. (Note 5.6. Interest-bearing liabilities)
•
Employee benefits: Huhtamaki Global Sustainability and Safety Index (GSSI) is one of the business objectives
for employees within the global short-term incentive plan. KPIs within the index are linked to the sustainability
dashboard and relate to e.g., the share of renewable or recycled materials, the share of renewable electricity,
Huhtamaki Group’s related parties include the parent company, subsidiaries, associates, joint ventures and pension funds
that are separate entities. Related parties also include the key management, their close family members and entities in
which they have control or joint control. The key management personnel are the members of the Global Executive Team
and the Board of Directors. Related parties also include Shareholders of Huhtamäki Oyj controlling more than ten per
1
Directors’ Report and Financial Statements 2024 | 152
Details of transactions and outstanding balances between the Group and its related parties are disclosed below.
Intragroup related party transactions and balances are eliminated on consolidation.
Compensation to the Global Executive Team and the Board of Directors is disclosed in the following tables. In addition,
the key management is receiving dividends based on their ownership of Huhtamäki Oyj shares. There has not been any
other transactions between the Group and the key management, their close family members or entities in which they
have control or joint control.
The President and CEO Charles Héaulmé's pension coverage is arranged by the President and CEO himself. The
company contributes towards the pension through monthly cash payments to the President and CEO. The total cash
payment is EUR 308 thousand (EUR 297 thousand) per annum. Some of the other Global Executive Team members
belong to a supplementary defined contribution pension plan. In 2024, the Company paid a total of EUR 447 thousand
(EUR 355 thousand) to pension arrangements of the other GET members, excluding the CEO.
Members of the Board of Directors and the Global Executive Team owned a total of 217,740 shares (147,026 shares)
shares at the end of the year 2024.
Employee benefits of CEO and members of the Global Executive Team
EUR million |
2024 |
2023 |
Salaries and other short-term employee benefits |
8.7 |
6.6 |
Post-employment benefits |
0.4 |
0.4 |
Share based payments |
2.2 |
5.6 |
CEO and members of the Global Executive Team in total |
11.3 |
12.6 |
Remunerations of CEO and members of the Board of Directors
In thousand euros |
2024 |
2023 |
CEO Charles Héaulmé |
4,205 |
3,372 |
Board members |
||
Vauramo Pekka |
185 |
78 |
Ala-Pietilä Pekka |
48 |
206 |
Tuomas Kerttu |
123 |
120 |
Alonso Mercedes |
108 |
104 |
Baillie Doug |
108 |
104 |
Barker Willam R. |
23 |
100 |
Beckler Robert K. |
85 |
- |
Korhonen Anja |
119 |
116 |
Lindwall Pauline |
103 |
79 |
Wunderlich Ralf K. |
100 |
101 |
Takala Heikki |
- |
22 |
Turner Sandra |
- |
23 |
CEO and Board in total |
5,207 |
4,425 |
Pension funds
The Group’s related parties include post-employment benefit plans that are separate entities. These entities are in
Finland, India, the UK and the U.S. For more information, see note 2.2. Employee benefits. The Group made EUR 2.5
million (EUR 1.8 million) contributions to the plans and there was related outstanding balance of EUR 0.2 million (EUR
1
Directors’ Report and Financial Statements 2024 | 153
Performance Share Arrangement 2010
On March 12, 2010 the Board of Directors of the Company decided on establishing a Performance Share Arrangement
to form a part of the long-term incentive and retention program for the key personnel of the Company and its
subsidiaries. The Performance Share Arrangement offers a possibility to earn the Company shares as remuneration for
achieving established targets. The Arrangement consists of annually commencing individual three-year performance
share plans. A possible reward shall be paid during the calendar year following each three-year plan. Commencement
of each three-year plan will be separately decided by the Board of Directors.
GET members (excl. President and CEO) that are participants to the performance share plan shall hold at least half (50%)
of the shares received until they hold shares received from the performance share plans corresponding in aggregate to
the value of their annual gross base salary. President and CEO shall hold at least half (50%) of the shares received until
he holds shares received from the performance share plans corresponding in aggregate to the value of 3 times his
annual gross base salary.
The ownership requirement applies until termination of employment or service. The maximum
value of the reward payable to the participants based on the Performance Share Arrangement is limited by a cap linked
to Company’s share price development (Performance Share Plan 2021–2023 and onwards).
Performance Share Plan 2021–2023
The Performance Share Plan 2021–2023 commenced in 202. The reward was based on the Group’s cumulative
adjusted earnings per share (EPS) for the earning period 2021–2023 and was paid in 2024 to 107 participants.
As set forth in the Performance Share Arrangement 200, the achievement of performance criteria, Group’s cumulative
adjusted earnings per share (EPS), was 86.05% of maximum for the earnings period 2021-2023. According to the terms
and conditions of the Performance Share Arrangement, 372,533 (gross) shares were paid in March 2024. Applicable
taxes were withheld from the gross reward before paying remaining net shares to the participants. Fair value of the paid
shares on the grant date was EUR 39.18 per share. Pursuant to the IFRS standards, an expense relating to the
Performance Share Plan 2021–2023 totaling EUR 13,859,983 was recorded for the reporting periods 2021–2023. This
amount includes an expense totaling EUR 4,518,279 which was recorded in the reporting period ending 31 December
2023.
Performance Share Plan 2022–2024
The Performance Share Plan 2022–2024 commenced in 2022 and the reward is based on the Group’s cumulative
adjusted earnings per share (EPS) for the earning period 2022–2024. The Performance Share Plan 2022–2024 was
directed to 108 persons at the end of 2024.
The achievement of performance criteria, Group’s cumulative adjusted earnings per share (EPS) for the earning period
2022-2024, as set forth in the Performance Share Arrangement 2010, was 98.91%. According to the terms and
conditions of the Performance Share Arrangement, 412,459 shares will be paid in March 2025. Applicable taxes are
withheld from the gross reward before paying remaining net shares to the participants. Fair value of the paid shares on
the grant date was EUR 35.86 per share. Pursuant to the IFRS standards, an expense relating to the Performance Share
Plan 2022–2024 totaling EUR 13,904,143 was recorded for the reporting periods 2022–2024. This amount includes
an expense totaling EUR 3,683,987 which was recorded in the reporting period ending 31 December 2024.
Performance Share Plan 2023–2025
The Performance Share Plan 2023–202 commenced in 2023 and the possible reward will be based on the Group’s
cumulative adjusted earnings per share (EPS) for the earning period 2023–2025. The reward, if any, will be paid during
2026. The Performance Share Plan 2023–2025 was directed to 118 persons at the end of 2024.
Performance Share Plan 2024–2026
The Performance Share Plan 2024–2026 commenced in 2024 and the possible reward will be based on the Group’s
cumulative adjusted earnings per share (EPS) for the earning period 2024–2026. The reward, if any, will be paid during
2027. The Performance Share Plan 2024–2026 was directed to 145 persons at the end of 2024.
1
Directors’ Report and Financial Statements 2024 | 154
Performance Share Plan | 2021–2023 | 2022–2024 | 2023–2025 | 2024–2026 |
Amount of granted shares (gross) | 582,000 1 | 600,000 1 | 590,000 1 | 600,000 |
Share price at grant date, EUR | 39.18 | 35.86 | 30.58 | 37.54 |
Actual achievement (% of maximum) | 86.05% | 98.91% | - | - |
Number of achieved shares (gross) based on performance criteria | 372,533 | 412,459 2 | - | - |
Number of participants of December 31, 2024 | 107 | 108 | 118 | 145 |
Share delivery | 2024 | 2025 | 2026 | 2027 |
Performance criteria | adjusted EPS | adjusted EPS | adjusted EPS | adjusted EPS |
1
In case shares are paid as reward, the net number of shares which remains after deducting the number of shares corresponding to the applicable taxes will be
delivered to participants.
2
Achieved shares will be paid in March 2025.
Restricted Share Arrangement 2021
As part of the long-term incentive and retention program for the key personnel of Huhtamaki, the Board of Directors
of the Company decided on February 10, 2021 on establishing a restricted share arrangement as a share-based long-
term incentive arrangement (Restricted Share Arrangement). The aim of the restricted share arrangement is to retain,
motivate and reward selected key employees in order to increase the shareholder value in the long term. The restricted
share arrangement consists of individual share plans. The commencement of each plan will be separately decided by
the Board of Directors. Each plan comprises of three consecutive calendar years. For potential share plans the aggregate
maximum number of shares payable is 60,000 shares (gross) per plan.
Share rewards will be paid in shares of the Company. Applicable taxes are withheld from the gross reward before paying
remaining net shares to the participants. No reward will be paid if the participant's employment or service ends before
the payment of the reward. The members of the Global Executive Team (excl. President and CEO) shall retain at least
50% of the shares received until the value of their share ownership in the Company corresponds to their annual gross
base salary. President and CEO shall hold at least half (50%) of the shares received until he holds shares received from
the long-term incentive plans corresponding in aggregate to the value of 3 times his annual gross base salary. The
maximum value of the reward payable to the participants based on the restricted share arrangement is limited by a cap
linked to Company’s share price development.
Restricted Share Plan 2021–2023
The Restricted Share Plan 2021–2023 commenced in 2021 and the reward was paid in 2024 based on continuous
employment. Group’s adjusted EBIT margin of for the result release preceding the payment was used as an
underlying threshold criterion for share payment. Financial year 2023 Group adjusted EBIT margin was 9.4% and thus
there was no restriction to payout.
According to the terms and conditions of the Restricted Share Arrangement, 30,700 shares (gross) were paid in March
2024 to 12 participants. Applicable taxes were withheld from the gross reward before paying remaining net shares to
the participants. Fair value of the paid shares on the grant date was ranging from EUR 30.58–45.22 per share. Pursuant
to the IFRS standards, an expense relating to the Restricted Share Plan 2021–2023 totaling EUR 1,027,992 was
recorded for the reporting periods 2021–2023. This amount includes an expense totaling EUR 571,626 which was
recorded in the reporting period ending 31 December 2023.
Restricted Share Plan 2022–2024
The Restricted Share Plan 2022–2024 commenced in 2022 and the reward will be paid during 2025 based on
continuous employment. Group’s adjusted EBIT margin of for the result release preceding the payment is used as
an underlying threshold criterion for share payment. The Restricted Share Plan 2022–2024 was directed to 6 persons
at the end of 2024.
Financial year 2024 Group adjusted EBIT margin was 10.1% and thus there is no restriction to payout. According to the
terms and conditions of the Restricted Share Arrangement, 10,000 shares will be paid in March 2025. Applicable taxes
are withheld from the gross reward before paying remaining net shares to the participants. Fair value of the shares on
the grant date was ranging from EUR 31.29–37.23 per share. Pursuant to the IFRS standards, an expense relating to
the Restricted Share Plan 2022–2024 totaling EUR 305,738 was recorded for the reporting periods 2022–2024. This
amount includes an expense totaling EUR 184,733 which was recorded in the reporting period ending 31 December
2024.
1
Directors’ Report and Financial Statements 2024 | 155
Restricted Share Plan 2023–2025
The Restricted Share Plan 2023–2025 commenced in 2023 and the reward will be paid during 2026 based on
continuous employment. Group’s adjusted EBIT margin of for the result release preceding the payment is used as
an underlying threshold criterion for share payment. The Restricted Share Plan 2023–2025 was directed to 6 persons
at the end of 2024.
Restricted Share Plan 2024-2026
The Restricted Share Plan 2024–2026 commenced in 2024 and the reward will be paid during 2027 based on
continuous employment. Group’s adjusted EBIT margin of for the result release preceding the payment is used as
an underlying threshold criterion for share payment. The Restricted Share Plan 2024–2026 was directed to 23 persons
at the end of 2024.
Restricted Share Plan | 2021–2023 | 2022–2024 | 2023–2025 | 2024–2026 |
Amount of granted shares (gross) | 30,700 1 | 10,000 1 | 8,000 1 | 18,500 1 |
Share price at grant date, EUR | 45.22–30.58 | 37.23–31.29 | 37.23–30.56 | 38.16–34.60 |
Number of achieved shares (gross) based on performance criteria | 30,700 | 10,000 2 | - | - |
Number of participants of December 31, 2024 | 12 | 6 | 6 | 23 |
Share delivery | 2024 | 2025 | 2026 | 2027 |
Performance criteria | Continuous employment 3 | |||
1
In case shares are paid as reward, the net number of shares which remains after deducting the number of shares corresponding to the applicable taxes will be
delivered to participants.
2
Shares will be paid in March 2025.
3
However, if Huhtamaki Group’s adjusted EBIT margin in the result release preceding the payment of the rewards is under , no shares will be paid.
The Group has incentive plans which include equity-settled share-based payment transactions. The fair value of equity-
settled share-based payments granted is recognized as an employee expense with a corresponding increase in
equity.The fair value is measured at grant date and spread over the vesting period during which the employees become
unconditionally entitled to the awards. The amount recognized as an expense is adjusted to reflect the actual number
of awards that will be vested. Non-market vesting conditions are not included in the value of share-based instruments
but in the number of instruments that are expected to vest. At each reporting period closing date, the estimates about
Right of use assets are presented in note 3.4. Tangible Assets. Right of use depreciations are presented in note 2.3.
Depreciation, amortization and impairment. Lease liabilities are presented in note 5.6. Interest-bearing liabilities. Lease
liability interests are presented in note 5.1. Net Financial Items. Items where Huhtamaki is the lessor are presented in
note 5.2. Interest-bearing receivables.
Lease expenses
EUR million | 2024 | 2023 |
Short-term leases | 11.0 | 7.4 |
Low-value leases | 0.9 | 0.7 |
Variable lease payments based on use/performance | 2.2 | 2.7 |
Lease payments in Profit or Loss | 14.2 | 10.8 |
Cash based lease payments in total | 48.7 | 43.8 |
1
Directors’ Report and Financial Statements 2024 | 156
Leases
The leases that the Group recognizes in the statement of financial position include mainly land, building, machinery and
equipment. Short-term leases (lease term of 12 months or less) and leases for which the underlying asset is of low value
are not booked to the statement of financial position. Payments for short-term and low-value leases and variable lease
payments are expensed in P&L.
Right of use (ROU) assets are recognized at the commencement date of the lease. ROU assets are measured at cost
less accumulated depreciation and impairment losses. The costs include the amount of the initial measurement of the
lease liability, any lease payments made at or before the commencement date less lease incentives received, any direct
costs and an estimate of dismantling costs. The carrying amount is further adjusted for any remeasurement of the lease
liability. Depreciation is expensed to the income statement on a straight-line basis over the lease term. The lease term
includes the noncancelable period of lease together with any extension or termination options that are reasonably
certain to be exercised. ROU assets are presented as tangible assets in the statement of financial position.
Lease liabilities are recognized at the commencement date of the lease. Lease liabilities are measured at the present
value of future lease payments using an effective interest method. The carrying amount is reduced to reflect the lease
payments made and the interest expense is allocated over the lease term. A lease liability is remeasured, when there is
a lease modification or reassessment. Lease liabilities are presented as current and non-current interest-bearing liabilities
EUR million | 2024 | 2023 |
Capital expenditure | 71.3 | 61.6 |
Leases | 77.8 | 67.1 |
Total commitments | 149.1 | 128.8 |
EUR million | 2024 | 2023 |
Capital expenditure commitments | ||
Under 1 year | 71.3 | 61.6 |
Total | 71.3 | 61.6 |
EUR million | 2024 | 2023 |
Lease commitments | ||
Not later than 1 year | 3.1 | - |
Later than 1 year and not later than 5 years | 23.8 | 19.5 |
Later than 5 years | 50.9 | 47.6 |
Total | 77.8 | 67.1 |
ACCOUNTING PRINCIPLES
Commitments
Capital expenditure commitments are commitments at the balance sheet date to acquire tangible and intangible assets
The European Commission announced on March 7, 2019 to open an investigation into Luxembourg's tax practices, in
particular Huhtamaki tax rulings from the years 2009, 2012 and 2013. The investigation is not targeted at Huhtamaki
and Huhtamaki has not been approached by the European Commission. The European Commission is investigating
whether the tax ruling could potentially be considered as prohibited state aid by Luxembourg. State aid means that a
1
Directors’ Report and Financial Statements 2024 | 157
public authority has granted a selective (not available for everyone) competitive advantage to a company in Europe.
Huhtamaki monitors the situation and is cooperating with authorities. Huhtamaki complies with all laws and regulations
and it is important for Huhtamaki to secure predictability in financial and tax affairs. In Huhtamaki’s view, the structure
On January 8, 2025, Huhtamaki announced the appointment Ralf K. Wunderlich (58) as President and CEO effective
on January , 202 when the Company’s previous President and CEO Charles Héaulmé stepped down. Charles
Héaulmé is available as needed to secure smooth transition until July 2025. Ralf K. Wunderlich will be based in Espoo,
Finland.
Subsequent to Ralf K. Wunderlich appointed as the President and CEO, he stepped down from the Board of Directors
1
Directors’ Report and Financial Statements 2024 | 158
.
Country |
Company |
Group holding, % |
Australia |
Huhtamaki Australia Pty Limited |
100.0 |
Huhtamaki Holdings Pty Limited |
100.0 |
|
Huhtamaki Interfresh (Aust) Pty Ltd |
100.0 |
|
Huhtamaki Interfresh (NSW) Pty Ltd |
100.0 |
|
Huhtamaki Interfresh (QLD) Pty Ltd |
100.0 |
|
Huhtamaki Interfresh (SA) Pty Ltd |
100.0 |
|
Huhtamaki Interfresh (VIC) Pty Ltd |
100.0 |
|
Huhtamaki Interfresh (WA) Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging Services Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging (Markets) Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging (NSW) Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging (QLD) Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging (SA) Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging (VIC) Pty Ltd |
100.0 |
|
Huhtamaki Tailored Packaging (WA) Pty Ltd |
100.0 |
|
Brazil |
Huhtamaki do Brasil Ltda |
100.0 |
Huhtamaki Embalagens Flexíveis do Brasil Ltda |
100.0 |
|
Czech Republic |
HuhtaBu s.r.o. |
100.0 |
Huhtamaki Ceska republika, a.s. |
100.0 |
|
Huhtamaki Flexible Packaging Czech a.s. |
100.0 |
|
LeoCzech spol s r.o. |
100.0 |
|
Egypt |
Elif Global Packaging S.A.E. |
100.0 |
Huhtamaki Egypt L.L.C. |
75.0 |
|
Huhtamaki Flexible Packaging Egypt LLC |
100.0 |
|
Finland |
Huhtamaki Foodservice Nordic Oy |
100.0 |
Huhtamäki Holding Oy |
100.0 |
|
Huhtamäki Securities Oy |
100.0 |
|
France |
Huhtamaki Foodservice France S.A.S |
100.0 |
Huhtamaki Holdings France SNC |
100.0 |
|
Huhtamaki La Rochelle S.A.S |
100.0 |
|
Germany |
Huhtamaki Flexible Packaging Germany GmbH & Co. KG |
100.0 |
Huhtamaki Foodservice Germany Holding GmbH |
100.0 |
|
Huhtamaki Foodservice Germany Operations GmbH & Co. KG |
100.0 |
|
Huhtamaki Foodservice Germany Sales GmbH & Co. KG |
100.0 |
|
Huhtamaki Germany GmbH |
100.0 |
|
Huhtamaki Grundstücksverwaltungs GmbH Alf |
100.0 |
|
Huhtamaki Grundstücksverwaltungs GmbH Ronsberg |
100.0 |
|
Huhtamaki Real Estate GmbH |
100.0 |
|
Huhtamaki Real Estate Holding B.V. & Co. KG |
100.0 |
|
Hungary |
Huhtamaki Hungary Kft. |
100.0 |
India |
Huhtamaki Flexible Packaging India Private Limited |
100.0 |
Huhtamaki Foodservice Packaging India Private Limited |
100.0 |
|
Huhtamaki India Limited 3 |
67.7 |
|
Ireland |
Huhtamaki CupPrint Limited |
100.0 |
Huhtamaki Finance Ireland I Unlimited Company |
100.0 |
|
Huhtamaki Finance Ireland II Unlimited Company |
100.0 |
|
Italy |
Huhtamaki Flexibles Italy S.r.l. |
100.0 |
Kenya |
Huhtamaki Flexible Packaging Kenya Limited |
100.0 |
Luxembourg |
Huhtamaki Holding S.à r.l. |
100.0 |
Huhtamaki S.à r.l. |
100.0 |
|
Malaysia |
BPC Trading Sdn. Bhd. |
100.0 |
Huhtamaki Foodservice Malaysia Sdn. Bhd. |
100.0 |
|
Mexico |
Huhtamaki Mexicana S.A. de C.V. |
100.0 |
Netherlands |
Huhtamaki Beheer V B.V. |
100.0 |
Huhtamaki Beheer XI B.V. |
100.0 |
|
Huhtamaki Brazil Investments B.V. |
100.0 |
|
Huhtamaki B.V. |
100.0 |
|
Huhtamaki Finance B.V. |
100.0 |
|
Huhtamaki Finance Company I B.V. |
100.0 |
|
Huhtamaki Finance Company II B.V. |
100.0 |
|
Huhtamaki Finance Company IV B.V. |
100.0 |
|
Huhtamaki Finance Company V B.V. |
100.0 |
|
Huhtamaki German Holdings B.V. |
100.0 |
|
Huhtamaki International B.V. |
100.0 |
|
Huhtamaki Molded Fiber Technology B.V. |
100.0 |
1
Directors’ Report and Financial Statements 2024 | 159
Huhtamaki Nederland B.V. | 100.0 | |
Huhtamaki Paper Recycling B.V. | 100.0 | |
Huhtavefa B.V. | 100.0 | |
New Zealand | Huhtamaki Henderson Limited | 100.0 |
Huhtamaki New Zealand Limited | 100.0 | |
Huhtamaki (NZ) Holdings Limited | 100.0 | |
Interpac Packaging Limited | 100.0 | |
Norway | Huhtamaki Norway AS | 100.0 |
Huhtamaki (Norway) Holdings AS | 100.0 | |
Philippines | Huhtamaki Philippines, Inc. | 100.0 |
People’s Republic of China | Guangdong Josco Disposable Product Ltd | 100.0 |
Huhtamaki Foodservice (Tianjin) Ltd. | 100.0 | |
Huhtamaki Foodservice (Xuzhou) Limited | 100.0 | |
Huhtamaki (Guangzhou) Limited | 100.0 | |
Huhtamaki (Tianjin) Limited | 100.0 | |
People’s Republic of China/Hong Kong | Dixie Cup (Hong Kong) Limited | 54.0 |
GreenGood Eco-Tech Co. Limited | 100.0 | |
Huhtamaki Hong Kong Limited | 100.0 | |
Josco (Holdings) Limited | 100.0 | |
Joseph Wong & Company (H.K.) Limited | 100.0 | |
Poland | Huhtamaki Foodservice Gliwice Sp. z o.o. | 100.0 |
Huhtamaki Foodservice Poland Sp. z o.o. | 100.0 | |
Huhtamaki Foodservice Czeladz Sp. z o.o. | 100.0 | |
Saudi Arabia | Arabian Paper Products Company | 50.0 1 |
Singapore | Huhtamaki Singapore Pte. Ltd. | 100.0 |
South Africa | Gravics Systems South Africa (Pty) Limited | 100.0 |
Huhtamaki Flexible Packaging South Africa (Pty) Limited | 70.0 | |
Huhtamaki South Africa Holdings (Pty) Ltd | 70.0 | |
Huhtamaki South Africa (Pty) Ltd. | 70.0 | |
Spain | Huhtamaki Spain S.L. | 100.0 |
Switzerland | Huhtamaki AG | 100.0 |
Huhtamaki Finance AG | 100.0 | |
Thailand | Huhtamaki Holding (Thailand) Ltd. | 100.0 |
Huhtamaki (Thailand) Ltd. | 100.0 | |
Türkiye | Elif Global Ambalaj Pazarlama Anonim Ş irketi | 100.0 |
Elif Holding Anonim Ş irketi | 100.0 | |
Elif Plastik Ambalaj Sanayi ve Ticaret Anonim Ş irketi | 100.0 | |
Huhtamaki Turkey Gıda Servisi Ambalajı A. Ş . | 100.0 | |
Ukraine | Huhtamaki Foodservice Ukraine LLC | 100.0 |
United Arab Emirates | Arabian Paper Products FZCO | 50.0 1 |
Huhtamaki Flexible Packaging Middle East LLC | 49.0 2 | |
Huhtamaki Holding UAE Limited | 100.0 | |
Positive Packaging United (M.E.) FZCO | 100.0 | |
Primetech (M.E.) FZE | 100.0 | |
United Kingdom | 2 View Media Limited | 100.0 |
BCP Corporate Limited | 100.0 | |
Huhtamaki Anglo Holding | 100.0 | |
Huhtamaki BCP Limited | 100.0 | |
Huhtamaki Finance Limited | 100.0 | |
Huhtamaki Foodservice Delta Limited | 100.0 | |
Huhtamaki Foodservice Portsmouth Limited | 100.0 | |
Huhtamaki Holding I Limited | 100.0 | |
Huhtamaki Holding II Limited | 100.0 | |
Huhtamaki Limited | 100.0 | |
Huhtamaki Metallized Products USA Limited | 100.0 | |
Huhtamaki (Lisburn) Limited | 100.0 | |
Huhtamaki (Lurgan) Limited | 100.0 | |
Huhtamaki (UK) Limited | 100.0 | |
Sweetheart International Limited | 100.0 | |
United States | Batavia Substation Holding Group, Inc. | 95.0 |
CupPrint LLC | 100.0 | |
Huhtamaki Americas, Inc. | 100.0 | |
Huhtamaki Foundation, Inc. | 100.0 | |
Huhtamaki Hardship Fund, Inc | 100.0 | |
Huhtamaki, Inc. | 100.0 | |
Vietnam | Huhtamaki (Vietnam) Limited | 100.0 |
1
The Group’s control is based on a Shareholders’ Agreement according to which the Group has control in the company.
2
The Group has control in the company and can consolidate the company as a fully owned subsidiary based on a Shareholders’ Agreement.
3
For more information:
www.huhtamaki.com/en-in/flexible-packaging/investors/
1
Directors’ Report and Financial Statements 2024 | 160
The following German subsidiaries are exempt from the duty of corporations to audit and disclose financial statements pursuant to
German legislation (Sec. 264b HGB): Huhtamaki Flexible Packaging Germany GmbH & Co. KG, Huhtamaki Foodservice Germany
Operations GmbH & Co. KG, Huhtamaki Foodservice Germany Sales GmbH & Co. KG, Huhtamaki Real Estate Holding B.V. & Co.
1
Directors’ Report and Financial Statements 2024 | 161
Parent company financial statements
Parent company income statement (FAS)
EUR
Note
2024
2023
Net sales
1
223,554,712.50
201,855,155.65
Other operating income
2
4,459,764.62
6,444,669.71
Materials and services
3
-113,823,723.08
-97,100,321.82
Personnel expenses
4
-34,966,895.69
-29,321,903.63
Depreciation and amortization
5
-3,382,550.00
-8,642,652.17
Other operating expenses
6
-7,752,151.50
-6,547,656.64
Earnings before interest and taxes
68,089,156.85
66,687,291.10
Net financial income/expense
7
714,355,875.00
-19,781,237.93
Profit before appropriations and taxes
782,445,031.85
46,906,053.17
Income tax expense
8
-7,819,560.00
-7,481,042.19
Profit for the period
774,625,471.85
39,425,010.98
Parent company balance sheet (FAS)
Assets
EUR
Note
2024
2023
Non-current assets
Intangible assets
9
Intangible rights
795,710.88
920,909.48
Development expenditure
10,988,929.08
13,474,354.11
Other capitalized expenditure
1,829,061.58
1,079,571.74
Construction in progress and advance payments
15,317,067.16
8,171,012.80
28,930,768.70
23,645,848.13
Tangible assets
10
Machinery and equipment
99,487.90
93,833.69
Other tangible assets
96,301.19
96,301.19
195,789.09
190,134.88
Investments
11
Investment in subsidiaries
3,164,309,851.85
2,417,271,132.51
Other shares and holdings
1,614,568.11
1,070,560.54
3,165,924,419.96
2,418,341,693.05
Current assets
Non-current receivables
Loan receivables
12
324,126,745.00
169,831,365.20
Current receivables
Sales receivables
12
204,370,609.89
183,384,743.66
Loan receivables
12
199,472,498.07
415,174,454.66
Accrued income
13
53,293,998.78
42,014,802.36
Other receivables
12
903,860.68
738,061.85
782,167,712.42
811,143,427.73
Cash and bank
2,658,533.82
98,086,795.35
Total assets
3,979,877,223.99
3,351,407,899.14
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Directors’ Report and Financial Statements 2024 | 162
Equity and liabilities
EUR
Note
2024
2023
Shareholders' equity
14
Share capital
366,385,309.00
366,385,309.00
Premium fund
115,023,103.38
115,023,103.38
Retained earnings
746,945,646.21
817,649,081.26
Profit for the period
774,625,471.85
39,425,010.98
2,002,979,530.44
1,338,482,504.62
Liabilities
Non-current liabilities
Loans from financial institutions
15
1,175,593,444.49
1,257,207,607.66
Other non-current liabilities
16
219,804.04
437,130.31
1,175,813,248.53
1,257,644,737.97
Current liabilities
Loans from financial institutions
15
156,351,303.33
184,887,832.01
Other loans
15
564,004,861.93
496,606,878.77
Trade payables
17
25,093,309.45
15,746,839.04
Accrued expenses
18
47,193,691.67
48,724,839.47
Other current liabilities
17
8,441,278.64
9,314,267.26
801,084,445.02
755,280,656.55
Total equity and liabilities
3,979,877,223.99
3,351,407,899.14
Parent company cash flow statement (FAS)
EUR
2024
2023
Earnings before interest and taxes
68,089,156.85
66,687,291.10
Adjustments
Depreciation and amortization
3,382,550.00
8,642,652.17
Change in non-interest-bearing receivables
-14,471,861.62
-28,585,279.64
Change in non-interest-bearing payables
2,180,338.66
-109,442.64
Net financial income and expense
-52,350,385.73
-32,825,568.40
Taxes paid
-7,302,372.55
-14,843,835.86
Net cash flow from operating activities
-472,574.39
-1,034,183.27
Capital expenditure
-6,889,682.30
-16,275,988.55
Dividends and repayments of capital
-
13,632,434.00
Change in non-current deposits
-151,030,641.71
385,997,396.99
Change in current deposits
215,701,956.59
-415,174,454.66
Net cash flow from investing activities
57,781,632.58
-31,820,612.22
Change in non-current loans
-81,831,489.44
-13,062,951.53
Change in current loans
38,861,454.48
229,032,758.90
Dividends paid
-109,767,284.77
-104,538,181.00
Cash flow from financing activities
-152,737,319.73
111,431,626.37
Change in liquid assets
-95,428,261.54
78,576,830.88
Liquid assets on January 1
98,086,795.35
19,509,964.47
Liquid assets on December 31
2,658,533.81
98,086,795.35
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Directors’ Report and Financial Statements 2024 | 163
Parent company accounting principles
The financial statements of Huhtamäki Oyj have been prepared according to Finnish Accounting Standards (FAS). The
financial statements have been prepared on the basis of historical costs and do not take into account increases in the
fair value of assets, unless otherwise stated.
The company changed the presentation of the account receivables from other receivables to account receivables in the
balance sheet. The comparative information is restated.
Foreign currency
Foreign currency transactions are recorded according to the exchange rates prevailing on the transaction date.
Receivables and payables are revalued at the rate of exchange on the balance sheet date. The exchange rate used at
the balance sheet date is the rate of the date prior to the last working day of the reporting period closing date. Exchange
rate differences arising from translation of receivables are recognized under other operating income, and exchange rate
differences on payables under costs and expenses. Exchange rate differences on translation of financial items, such as
loans and deposits, are recognized under financial income and expenses.
Derivative instruments
Foreign exchange derivative contracts are used for hedging the company’s currency position. The company manages its
interest rate risks using interest rate derivatives. The prudence principle is applied to derivatives in the financial
statements. However, also the positive changes in market values of foreign exchange derivatives are recognized in the
income statement and the balance sheet in cases where corresponding negative changes in market values exists. Foreign
exchange derivatives are marked-to-market at the rate of exchange on the balance sheet date and recorded in the
income statement as an adjustment to financial items or sales and purchases only to the extent they relate to balance
sheet items being hedged. Interest derivatives used for hedging the company’s loans are stated at historical cost. Interest
derivatives used for hedging subsidiaries’ external loans are stated at lower of historical cost or market value. Interest
income or expenses deriving from such instruments are accrued over the contract period.
Intangible assets
Intangible assets are amortized on a systematic basis over their estimated useful life. The period of amortization does
not exceed 20 years.
Tangible assets
Items of tangible assets are stated at historical cost and depreciated using the straight-line method over their estimated
useful lives. The period of depreciation does not exceed 12 years. Leases of tangible assets are classified as operating
leases.
Investments
Investments classified as long-term assets are carried at cost, less amounts written off to recognize permanent declines
in the value of the investment. On disposal of an investment, the difference between the net disposal proceeds and the
carrying amount is recognized as income or expense.
Investments in subsidiaries are carried at cost in the balance sheet of the company.
Income taxes
The income statement includes income taxes of the Company based on taxable profit for the financial period according
to local tax regulations as well as adjustments to prior year taxes.
Appropriations
Gains and losses from appropriations include items which fall outside the ordinary activities of the company, such as
group contribution or divestment related items.
1
Directors’ Report and Financial Statements 2024 | 164
1. NET INCOME
EUR million
2024
2023
Royalty income
67.9
75.0
Group cost income
130.5
107.9
Other
25.2
18.9
Total
223.6
201.9
2. OTHER OPERATING INCOME
EUR million
2024
2023
Other
4.5
6.4
Total
4.5
6.4
3. MATERIALS AND SERVICES
EUR million
2024
2023
Purchases from group companies
66.1
59.5
Purchases from other companies
47.7
37.6
Total
113.8
97.1
4. PERSONNEL EXPENSES
EUR million
2024
2023
Wages and salaries
25.8
20.0
Pension costs
3.5
3.5
Other personnel costs
5.7
5.8
Total
35.0
29.3
The above amounts are on accrual basis. Remuneration paid by the parent company to the members of the Board of
Directors as well as the CEO of Huhtamäki Oyj (9 people) amounted to EUR 5.2 million (EUR 4.4 million).
Average number of personnel
2024
2023
Huhtamäki Oyj
175
153
5. DEPRECIATION AND AMORTIZATION
EUR million
2024
2023
Depreciation and amortization by asset type:
Machinery and equipment
0.1
0.1
Intangible rights
0.1
0.1
Development expenditure
2.5
2.3
Other capitalized expenditure
0.7
6.1
Total
3.4
8.6
6. AUDITOR'S FEES AND SERVICES
EUR million
2024
2023
Audit fees
0.5
0.4
Other statutory services
0.4
0.0
Total
0.9
0.4
For auditor's other services see note 2.5. Other operating expenses in the consolidated financial statements.
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Directors’ Report and Financial Statements 2024 | 165
7. FINANCIAL INCOME AND EXPENSE
EUR million
2024
2023
Dividend income
750.8
12.8
Interest and other financial income
Intercompany interest income
42.0
40.3
Other interest income
5.1
4.4
Total interest income
47.1
44.7
Other financial income
164.9
206.6
Total interest and other financial income
212.0
251.3
Interest and other financial expense
Intercompany interest expense
-20.3
-13.5
Other interest expense
-62.4
-61.1
Total interest expense
-82.7
-74.6
Other financial expense
-165.7
-209.3
Total interest and other financial expense
-248.4
-283.9
Net financial items
714.4
-19.8
8. TAXES
EUR million
2024
2023
Ordinary taxes
7.8
7.5
Total
7.8
7.5
Deferred taxes are not included in income statement or balance sheet. Unrecognized deferred tax liability from timing
differences is EUR 2.3 million (EUR 2.2 million).
9. INTANGIBLE ASSETS
EUR million
Intangible rights
Development
expenditure
Other
capitalized
expenditure
Construction in
progress and
advance
payments
2024 Total
2023 Total
Acquisition cost on January 1
1.6
17.4
48.9
8.2
76.1
63.7
Additions
0.1
-
-
8.6
8.7
15.8
Disposals
-0.1
-
-39.9
-
-40.0
-3.3
Intra-balance sheet transfer
-0.1
-
1.4
-1.4
-0.1
-
Acquisition cost on December 31
1.5
17.4
10.5
15.3
44.7
76.2
Accumulated amortization on January 1
0.7
3.9
47.9
52.5
44.6
Accumulated amortization on disposals and transfers
-0.1
-
-39.9
-40.0
-0.6
Amortization during the financial year
0.1
2.5
0.7
3.3
8.5
Accumulated amortization on December 31
0.8
6.4
8.6
15.8
52.5
Book value on December 31, 2024
0.8
11.0
1.8
15.3
28.9
Book value on December 31, 2023
0.9
13.5
1.1
8.2
23.7
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Directors’ Report and Financial Statements 2024 | 166
10. TANGIBLE ASSETS
EUR million
Machinery and
equipment
Other tangible assets
2024 Total
2023 Total
Acquisition cost on January 1
1.8
0.1
1.9
2.5
Additions
-
-
-
-
Disposals
-0.8
-
-0.8
-0.7
Intra-balance sheet transfer
0.1
-
0.1
-
Acquisition cost on December 31
1.0
0.1
1.1
1.9
Accumulated depreciation on January 1
1.7
-
1.7
2.2
Accumulated depreciation on disposals and transfers
-0.9
-
-0.9
-0.7
Depreciation during the financial year
0.1
-
0.1
0.1
Accumulated depreciation on December 31
0.8
-
0.8
1.7
Book value on December 31, 2024
0.2
0.1
0.3
Book value on December 31, 2023
0.1
0.1
0.2
11. INVESTMENTS
EUR million
Investment in
subsidiaries
Other shares and
holdings
Investments
Book value on January 1, 2024
2,417.3
1.1
2,418.3
Additions
747.0
0.8
747.8
Disposals
-
-0.2
Book value on December 31, 2024
3,164.3
1.6
3,165.9
EUR million
Investment in
subsidiaries
Other shares and
holdings
Investments
Book value on January 1, 2023
2,418.1
1.1
2,419.2
Additions
-
0.1
747.8
Disposals
-0.8
-0.2
Book value on December 31, 2023
2,417.3
1.1
2,418.3
Subsidiaries
Country
Parent company holding %
Huhtamaki Finance B.V.
The Netherlands
75%
Huhtamaki Holding Oy
Finland
100%
Huhtamäki Securities Oy
Finland
100%
Huhtamaki Hungary KFT
Hungary
100%
Huhtamaki Foodservice Finland Oy
Finland
100%
Huhtamaki Germany GmbH
Germany
25%
Arabian Paper Products company
Saudi Arabia
50%
Huhtamaki International B.V.
The Netherlands
100%
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Directors’ Report and Financial Statements 2024 | 167
12. RECEIVABLES
EUR million
2024
2023
Current
Account receivables from subsidiaries
204.4
183.4
Account receivables
-
-
Loan receivables from subsidiaries
199.5
415.2
Accrued income
31.8
25.2
Accrued corporate income
21.5
16.8
Other receivables
0.9
0.7
Other receivables from subsidiaries
-
-
Total
458.0
641.3
Non-current
Intercompany loan receivables
324.1
169.8
Total
324.1
169.8
Total
782.2
811.1
13. ACCRUED INCOME
EUR million
2024
2023
Accrued interest and other financial items
3.9
4.0
Currency derivative assets
14.9
8.3
Accrued corporate income and prepaid expense
21.5
16.8
Other
12.9
12.9
Total accrued income
53.3
42.0
14. CHANGES IN EQUITY
EUR million
2024
2023
Restricted equity
Share capital January 1
366.4
366.4
Share capital December 31
366.4
366.4
Premium fund January 1
115.0
115.0
Premium fund December 31
115.0
115.0
Restricted equity total
481.4
481.4
Non-restricted equity
Retained earnings January 1
857.1
922.2
Dividends paid
-110.0
-104.5
Asset transfer tax for treasury shares
-0.1
-
Profit for the period
774.6
39.4
Retained earnings December 31
1,521.6
857.1
Non-restricted equity total
1,521.6
857.1
Development expenditure
-25.4
-20.6
Distributable equity
1,496.2
836.5
Total equity
2,003.0
1,338.5
For details on share capital see note 5.4. Shareholder's equity in the consolidated financial statements.
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Directors’ Report and Financial Statements 2024 | 168
15. LOANS
EUR million
2024
2023
Non-current
Loans from financial institutions
1,175.6
1,257.2
Non-current loans from financial institutions total
1,175.6
1,257.2
Current
Current portion of long-term loans from financial institutions
85.5
134.7
Loans from financial institutions and other current loans
70.9
50.2
Current loans from financial institutions total
156.4
184.9
Loans from subsidiaries
564.0
496.6
Other loans total
564.0
496.6
Changes in non-current loans
Loans from financial institutions
January 1
1,257.2
1,270.1
Additions
605.0
2,103.6
Decreases
-689.5
-2,114.5
FX movement
2.9
-2.0
Total
1,175.6
1,257.2
Repayments
Loans from
financial
institutions
2025
156.4
2026
299.8
2027
529.2
2028
298.7
2029–
47.9
16. OTHER NON-CURRENT LIABILITIES
EUR million
2024
2023
Loans from subsidiaries
-
-
Employee benefits
0.2
0.4
Total
0.2
0.4
17. TRADE PAYABLES AND OTHER CURRENT LIABILITIES
EUR million
2024
2023
Trade payables
11.2
4.3
Intercompany trade payables
13.9
11.5
Trade payables
25.1
15.8
Other current liabilities
5.4
4.4
Other current liabilities to subsidiaries
3.0
5.0
Other current liabilities
8.4
9.3
18. ACCRUED EXPENSES
EUR million
2024
2023
Accrued interest and other financial expense
16.1
16.6
Currency derivative liabilities
13.9
8.2
Accrued expense to subsidiaries
7.7
15.1
Salaries and social security
9.4
8.2
Miscellaneous accrued expense
0.1
0.6
Total
47.2
48.7
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Directors’ Report and Financial Statements 2024 | 169
19. DERIVATIVES
Fair values of derivatives, EUR million
2024
2023
Currency derivatives
with external parties
1.0
0.1
with subsidiaries
11.5
-4.0
Interest rate swaps
5.9
5.0
Total
18.4
1.1
Nominal values of principles, EUR million
2024
2023
Currency derivatives
with external parties
1,168.3
967.0
with subsidiaries
444.6
429.5
Interest rate swaps
271.8
276.5
Total
1,884.7
1,673.0
The nominal value of external currency derivatives is 1,168.3 MEUR and the nominal value of internal currency
derivatives allocated to them is 444.6 MEUR. For the rest of the external currency derivatives hedge accounting is
applied.
See note .. Management of financial risks in the consolidated financial statements for more information on the Group’s
financial risk management.
20. COMMITMENTS AND CONTINGENCIES
EUR million
2024
2023
Operating lease payments
Under one year
1.4
1.2
Later than one year
0.8
0.4
Total
2.1
1.6
Guarantee obligations
For subsidiaries
206.2
194.4
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Directors’ Report and Financial Statements 2024 | 170
Signatures of the Board of Directors’ Report and Financial Statements
Confirmations of the Board of Directors
We confirm that
-
the financial statements prepared in accordance with the applicable laws and regulations governing the preparation
of financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the
company and the undertakings included in the consolidation taken as a whole;
-
the Directors’ Report includes a fair review of the development and performance of the business and the position
of the company and the undertakings included in the consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face; and
-
the Sustainability Report included in the Directors’ Report is prepared in accordance with sustainability reporting
standards referred to in Chapter 7 of the Accounting Act and with the Article 8 of Taxonomy Regulation (EU)
2020/852.
Signatures of the Board of Directors’ Report and Financial Statements
Espoo, February 13, 2025
Pekka Vauramo
Kerttu Tuomas
Mercedes Alonso
Doug Baillie
Robert K. Beckler
Anja Korhonen
Pauline Lindwall
Ralf K. Wunderlich
President and CEO
1
Directors’ Report and Financial Statements 2024 | 171
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of Huhtamäki Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Huhtamäki Oyj (business identity code 0140879-6) for the year ended 31
December, 2024. The financial statements comprise the consolidated balance sheet, income statement, statement of
comprehensive income, statement of changes in equity, statement of cash flows and notes, including material
accounting policy information, as well as the parent company’s balance sheet, income statement, statement of cash
flows and notes.
In our opinion
—
the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
—
the financial statements give a true and fair view of the parent company’s financial performance and financial
position in accordance with the laws and regulations governing the preparation of financial statements in Finland
and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing
practice are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical requirements
that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company and
group companies are in compliance with laws and regulations applicable in Finland regarding these services, and we
have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-
audit services that we have provided have been disclosed in note 2.5. to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based on our
professional judgement and is used to determine the nature, timing and extent of our audit procedures and to evaluate
the effect of identified misstatements on the financial statements as a whole. The level of materiality we set is based on
our assessment of the magnitude of misstatements that, individually or in aggregate, could reasonably be expected to
have influence on the economic decisions of the users of the financial statements. We have also taken into account
misstatements and/or possible misstatements that in our opinion are material for qualitative reasons for the users of
the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
1
Directors’ Report and Financial Statements 2024 | 172
The significant risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2)
are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of whether
there was evidence of management bias that represented a risk of material misstatement due to fraud.
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN THE
AUDIT
Valuation of goodwill and acquisition related intangible assets (Refer to notes 3.1, 3.2 and 3.3 to the
consolidated financial statements)
At year end 2024 goodwill and intangibles totaled
EUR 1 118 million and represented 23 percent of
the consolidated total assets.
Goodwill is tested for impairment at least
annually. Preparation of cash flow projections
used as the basis for the impairment tests
requires
management
judgments
and
assumptions for profitability, long-term growth
rate and discount rate.
The acquisition related intangible assets have
finite useful lives and are amortized on a straight-
line basis over their useful lives.
Due to the uncertainty related to the projections
used in the impairment testing and the significant
carrying amounts involved, valuation of goodwill
and acquisition related intangible assets is
considered a key audit matter.
Our audit procedures included assessment of the
key assumptions used in the impairment tests by
reference to the budgets approved by the parent
company’s Board of Directors, data external to
the Group and our own views.
We assessed the mathematical accuracy of the
calculations and to compare the assumptions to
externally available market and industry data.
In addition, we considered the appropriateness
of the disclosures presented.
Revenue recognition (Refer to note 2.1 to the consolidated financial statements)
Huhtamäki Group revenues are generated from
sales
of
disposable
tableware
products,
foodservice packaging products as well as ice
cream containers and other consumer good
packaging products.
Consolidated net sales in 2024 were EUR 4 126
million.
Sales contracts with customers include several
different client specific delivery terms, which
determine when the ownership of the product is
transferred to the customer.
Revenue recognition is considered a key audit
matter due to the considerable number of sales
In our audit of revenues, we have tested key
controls
related
to
sales
and
performed
substantive
audit
procedures.
We
have
assessed
the
accounting
principles
and
practices for different revenue streams and
evaluated the appropriateness of the revenue
recognition principles in relation to the IFRS-
standards.
—
We have tested revenue, discounts, and
pricing using data-analytics.
—
We have tested selected samples of sales
transactions comparing them to sales
invoices, contracts, delivery notes, external
confirmations and payments received.
—
We have verified that revenues have been
recognized in the appropriate financial year
by comparing sales transactions, invoices
1
Directors’ Report and Financial Statements 2024 | 173
transactions and risk that revenue is recognized
in an incorrect period.
and delivery terms to actual deliveries as
well as by inspecting credit invoices issued
in early 2025.
—
In
addition,
we
considered
the
appropriateness
of
the
disclosures
regarding net sales.
Valuation of inventories (Refer to note 4.1 to the consolidated financial statements)
Group’s value of inventories totaled EUR 667
million at year end 2024.
Inventory management, stocktaking routines and
costing of inventories are underlying key factors
in determining the value of inventories.
The
valuation
of
inventories
involves
management judgement and assessment in
relation to defining obsolete inventory and net
realizable values for finished goods and is
therefore considered a key audit matter.
We have evaluated the appropriateness of the
valuation principles in relation to the IFRS-
standards and tested related key controls and
performed substantive audit procedures. We
have
attended
stock
takings
in
selected
inventory
locations
and
assessed
the
appropriateness of the stock taking processes.
—
We have compared the value of selected
finished goods inventory items to the sales
prices.
—
We have analyzed slow-moving inventory
items and items with exceptional values.
—
We have assessed the inventory valuation
principles,
and
the
adequacy
of
the
provisions recorded.
Income taxes (Refer to note 2.6 to the consolidated financial statements)
Income taxes are material to the financial
statements as a whole.
The Group’s presence is global, and it operates
in several countries with different and changing
tax rules.
Management use judgments when assessing tax
matters and -risks impacting on the recognition
of deferred tax assets, -liabilities and tax
provisions.
Due to the above income taxes are considered a
key audit matter.
We have evaluated the appropriateness of the
accounting principles in relation to the IFRS-
standards and the processes for recognizing
and assessing current and deferred tax.
Our audit procedures for assessing recognized
deferred taxes and tax provisions included
assessment of assumptions and methodologies
used by management and correspondence with
tax authorities.
We involved KPMG tax specialists both on group
level and in significant subsidiaries.
In addition, we considered the appropriateness
of the disclosures regarding income taxes.
We have not identified key audit matters relating to the parent company’s financial statements.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
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Directors’ Report and Financial Statements 2024 | 174
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of
financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation
of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing
the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating
to going concern and using the going concern basis of accounting. The financial statements are prepared using the going
concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
—
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
—
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s in
ternal control.
—
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
—
Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cas
t significant doubt on the parent company’s or the group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial stat
ements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the parent company or the group to cease to continue
as a going concern.
—
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial
statements give a true and fair view.
—
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed
for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
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Directors’ Report and Financial Statements 2024 | 175
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on April 29, 2020, and our appointment represents
a total period of uninterrupted engagement of 5 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other information
comprises the report of the Board of Directors and the information included in the Annual Report, but does not include
the financial statements or our auditor’s report thereon. We have obtained the report of the Board of Directors prior
to the date of this auditor’s report, and the Annual Report is expected to be made available to us after that date.
Our
opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of
the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has
been prepared in compliance with the applicable provisions, excluding the sustainability statement information on which
there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions.
Our opinion does not cover the sustainability report information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Helsinki, 13 February 2025
KPMG Oy Ab
HENRIK HOLMBOM
Authorised Public Accountant, KHT
1
Directors’ Report and Financial Statements 2024 | 176
This document is an English translation of the Finnish Assurance Report on the Sustainability Statement. Only the Finnish version of the report is legally binding.
Assurance Report on the Sustainability Statement
To the Annual General Meeting of Huhtamäki Oyj
We have performed a limited assurance engagement on the group sustainability statement of Huhtamäki Oyj (0140879-
6) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of the Board of Directors for
the financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the group sustainability statement does not comply, in all material respects, with
1)
the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards (ESRS);
2)
the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the
Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU)
2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Huhtamäki Oyj has identified the information for reporting in
accordance with the sustainability reporting standards (double materiality assessment) and the tagging of information
as referred to in Chapter 7, Section 22 of the Accounting Act.
Our opinion does not cover the tagging of the group sustainability statement with digital XBRL sustainability tags in
accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting
companies have not had the possibility to comply with that provision in the absence of the ESEF regulation or other
European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited assurance engagement in compliance
with good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE) 3000
(Revised)
Assurance Engagements Other than Audits or Reviews of Historical Financial Information
.
Our responsibilities under this standard are further described in the
Responsibilities of the Authorized Sustainability Auditor
section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability statement of Huhtamäki Oyj that is referred to in Chapter 7
of the Accounting Act has been prepared and assurance has been provided for it for the first time for the financial year
1.1.–31.12.2024. Our opinion does not cover the comparative information that has been presented in the group
sustainability statement. Our opinion is not modified in respect of this matter.
Authorized group sustainability auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance with the ethical requirements
that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
The authorized group sustainability auditor applies International Standard on Quality Management ISQM 1, which
requires the authorized sustainability audit firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements, professional standards and applicable
legal and regulatory requirements.
1
Directors’ Report and Financial Statements 2024 | 177
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Huhtamäki Oyj are responsible for:
•
the group sustainability statement and for its preparation and presentation in accordance with the provisions of
Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting
standards and in which the information for reporting in accordance with the sustainability reporting standards
has been identified as well as the tagging of information as referred to in Chapter 7, Section 22 of the
Accounting Act and
•
the compliance of the group sustainability statement with the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework
to facilitate sustainable investment, and amending Regulation (EU) 2019/2088;
•
such internal control as the Board of Directors and the Managing Director determine is necessary to enable the
preparation of a group sustainability statement that is free from material misstatement, whether due to fraud or
error.
Inherent Limitations in the Preparation of a Sustainability Statement
Preparation of the sustainability statement requires Company to make materiality assessment to identify relevant
matters to report. This includes significant management judgement and choices. It is also characteristic to the
sustainability reporting that reporting of this kind of information includes estimates and assumptions as well as
measurement and estimation uncertainty. Furthermore, when reporting forward looking information company has to
disclose assumptions related to potential future events and describe Company´s possible future actions in relation to
these events. Actual outcome may differ as forecasted events do not always occur as expected.
Responsibilities of the Authorized Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group
sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis
of the group sustainability statement.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise
professional judgment and maintain professional skepticism throughout the engagement. We also:
•
Identify and assess the risks of material misstatement of the group sustainability statement, whether due to
fraud or error, and obtain an understanding of internal control relevant to the engagement in order to design
assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the group’s internal control.
•
Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected depend
on professional judgment, including the assessment of risks of material misstatement, whether due to fraud or error.
Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable assurance engagement been performed.
Our procedures included for ex. the following:
•
We interviewed Company’s management and persons responsible for the preparation and gathering of the
sustainability information.
1
Directors’ Report and Financial Statements 2024 | 178
•
We familiarized with interviews to the key processes related to collecting and consolidating the sustainability
information.
•
We got acquainted with the relevant guidances and policies related to the sustainability information disclosed
in the sustainability statement.
•
We acquainted ourselves to the background documentation and other records prepared by the Company, as
appropriate and assessed how they support the information included in the sustainability statement.
•
We conducted site visits to the selected operational sites.
•
In relation to the double materiality assessment process, we interviewed persons responsible for the process
and familiarized ourselves with the process description prepared of the double materiality assessment and
other documentation and background materials.
•
In relation to the EU taxonomy information we interviewed the management of the company and persons with
key roles in reporting taxonomy information to understand how taxonomy eligible activities have been
identified, we obtained evidence supporting the interviews and reconciled the reported EU taxonomy
information to supporting documents and to the group accounting records, as applicable.
•
We assessed the application of the ESRS sustainability reporting standards reporting principles in the
presentation of the sustainability information.
Helsinki 13 February 2025
KPMG OY AB
Authorized Sustainability Audit Firm
HENRIK HOLMBOM
Authorized Sustainability Auditor, KRT
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Directors’ Report and Financial Statements 2024 | 179
Independent Auditor’s Reasonable Assurance Report on
Huhtamäki Oyj’s ESEF Financial Statements
To the Board of Directors of Huhtamäki Oyj
We have performed a reasonable assurance engagement on the financial statements 5493007050SJVMXN6L29-2024-
12-31-0-en.zip of Huhtamäki Oyj (Business ID 0140879-6) that have been prepared in accordance with the
Commission's regulatory technical standard for the financial year ended 31.12.2024.
The Responsibility of the Board of Directors and Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of the company's report of the
Board of Directors and financial statements (the ESEF financial statements) in such a way that they comply with the
requirements of the Commission's regulatory technical standard. This responsibility includes:
—
preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission's
regulatory technical standard
—
tagging the primary financial statements, notes and company's identification data in the consolidated financial
statements that are included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of the
Commission's regulatory technical standard and
—
ensuring the consistency between the ESEF financial statements and the audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements in accordance with the requirements of the
Commission's regulatory technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory requirements.
Auditor’s Responsibility
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide assurance on
the financial statements that have been prepared in accordance with the Commission's regulatory technical standard.
We express an opinion on whether the consolidated financial statements that are included in the ESEF financial
statements have been tagged, in all material respects, in accordance with the requirements of Article 4 of the
Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted a
reasonable assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
—
whether the primary financial statements in the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the requirements
of Article 4 of the Commission's regulatory technical standard and
—
whether the notes and company's identification data in the consolidated financial statements that are included in
the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard and
—
whether there is consistency between the ESEF financial statements and the audited financial statements.
1
Directors’ Report and Financial Statements 2024 | 180
The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an assessment
of the risk of a material deviation due to fraud or error from the requirements of the Commission's regulatory technical
standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial statements,
notes and company's identification data in the consolidated financial statements that are included in the ESEF financial
statements of Huhtamäki Oyj 5493007050SJVMXN6L29-2024-12-31-0-en.zip for the financial year ended
31.12.2024 have been tagged, in all material respects, in accordance with the requirements of the Commission's
regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of Huhtamäki Oyj for the financial year ended
31.12.2024 has been expressed in our auditor's report dated 13.2.2025. With this report we do not express an opinion
on the audit of the consolidated financial statements nor express another assurance conclusion.
Helsinki 10 March 2025
KPMG OY AB
Henrik Holmbom
Authorised Public Accountant, KHT
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Directors’ Report and Financial Statements 2024 | 181
Definitions for performance measures
Performance measures according to IFRS
Earnings per share (EPS) attributable to
equity holders of the parent company =
Profit for the period – non-controlling interest
Average number of shares outstanding
Diluted earnings per share
attributable to equity holders of the
parent company (diluted EPS) =
Diluted profit for the period – non-controlling interest
Average fully diluted number of shares outstanding
Alternative performance measures
EBITDA =
EBIT + depreciation and amortization
Dividend yield =
100 x Dividend per share
Share price at December 31
Shareholders’ equity per share =
Total equity attributable to equity holders of the parent company
Number of shares outstanding at December 31
P/E ratio =
Share price at December 31
Earnings per share
Market capitalization =
Number of shares outstanding multiplied by the corresponding share price on the stock exchange at
December 31
Return on investment (ROI) =
100 x (Profit before taxes + interest expenses + net other financial expenses) (12m rolling.)
Statement of financial position total – interest-free liabilities (average)
Return on equity (ROE) =
100 x Profit for the period (12m rolling.)
Total equity (average)
Net debt to equity (gearing) =
Interest-bearing net debt
Total equity
Solidity =
100 x Total equity
Statement of financial position total – advances received
Current ratio =
Current assets
Current liabilities
Times interest earned =
Earnings before interest and taxes + depreciation, amortization and impairment
Net interest expense
Return on net assets (RONA) =
100 x Earnings before interest and taxes (12m roll.)
Net assets (12m roll.)
Operating cash flow =
Adjusted EBIT + depreciation and amortization (including impairment) – capital expenditure +
disposals +/– change in inventories, trade receivables and trade payables
Free cash flow =
Net cash flow from operating activities – capital expenditure + proceeds from selling tangible and
intangible assets
Comparable net sales growth =
Net sales excluding foreign currency changes, acquisitions and divestments
In addition to IFRS and alternative performance measures presented above, Huhtamaki may present adjusted performance measures, which are
derived from IFRS or alternative performance measures by adding or deducting items affecting comparability (IAC). The adjusted performance
measures are used in addition to, but not substituting, the performance measures reported in accordance with IFRS.
1
Directors’ Report and Financial Statements 2024 | 182
Key figures and financial development
Huhtamaki 2020–2024
EUR million
2024
2023
2022
2021
2020
Net sales
4,126.3
4,168.9
4,479.0
3,574.9
3,301.8
Increase in net sales, %
-1.0
-6.9
25.3
8.3
-2.9
Net sales outside Finland
4,070.3
4,108.7
4,416.3
3,523.1
3,252.5
Earnings before interest, taxes, depreciation, amortization and impairment
595.6
621.2
614.9
469.6
464.5
Earnings before interest, taxes, depreciation, amortization and
impairment/net sales, %
14.4
14.9
13.7
13.1
14.1
Earnings before interest and taxes
372.3
380.9
405.3
296.0
265.3
Earnings before interest and taxes/net sales, %
9.0
9.1
9.0
8.3
8.0
Profit before taxes
300.5
312.0
352.1
263.0
237.1
Profit before taxes/net sales, %
7.3
7.5
7.9
7.4
7.2
Profit for the period
231.8
225.2
285.4
202.7
183.7
Total equity
2,124.1
1,924.9
1,922.2
1,597.2
1,364.5
Return on investment, %
10.8
10.9
11.4
10.6
10.3
Return on shareholders' equity, %
11.6
11.8
15.7
13.9
12.9
Solidity, %
43.5
41.3
39.9
35.4
38.1
Net debt to equity
0.57
0.67
0.77
0.95
0.64
Current ratio
1.52
1.60
1.50
1.22
1.42
Times interest earned
8.30
9.01
11.56
14.25
15.44
Capital expenditure
247.9
318.7
318.5
259.4
223.5
Capital expenditure/net sales, %
6.0
7.6
7.1
7.3
6.8
Research & development
34.7
36.0
30.6
25.7
20.7
Research & development/net sales, %
0.8
0.9
0.7
0.7
0.6
Number of shareholders (December 31)
51,783
53,834
50,150
43,744
35,764
Personnel (December 31)
17,794
17,910
18,927
19,564
18,227
Key exchange rates in EUR
2024
2023
2024
Statement
2023
Statement
Income
of financial
Income
of financial
statement
position
statement
position
Australian Dollar
AUD
1.6398
1.6756
1.6282
1.6246
British Pound
GBP
0.8467
0.8295
0.8700
0.8706
Indian Rupee
INR
90.5473
89.2685
89.3132
92.4490
Thai Baht
THB
38.1879
35.6400
37.6253
37.9990
US Dollar
USD
1.0824
1.0444
1.0815
1.1114
South African Rand
ZAR
19.8353
19.5691
19.9453
20.6003
The exchange rates used at the month end are the rates of the date prior to the last working day of the month, due to the change
of publication time of the ECB euro foreign exchange reference rates.
1
Directors’ Report and Financial Statements 2024 | 183
Share and shareholders
The Company has one class of shares. Each share carries one vote at the General Meeting of Shareholders. The
Company does not have in force any option rights plan or any other plan based on which the Company can issue special
rights entitling to subscription of the Company’s shares.
Article 11 of the Articles of Association of the Company contains provisions concerning the redemption obligation of
shareholders. Election of the members of the Board of Directors and the Chief Executive Officer is stipulated in Articles
4, 5 and 8 of the Articles of Association.
The Annual General Meeting of Shareholders on April 25, 2024 authorized the Board of Directors to decide: (i) on the
repurchase of the Company’s own shares and (ii) on the issuance of shares as well as the issuance of special rights
entitling to shares. The authorizations remain in force until the end of the next Annual General Meeting, however, no
longer than until June 30, 2025.
Certain agreements relating to the financing of the Company as well as supply agreements entered into with certain
most significant customers contain terms and conditions upon which the agreement may terminate if control in the
Company changes as a result of a public tender offer.
Per share data
2024
2023
2022
2021
2020
Earnings per share
EUR
2.14
1.97
2.65
1.91
1.69
Earnings per share (diluted)
EUR
2.13
1.97
2.64
1.91
1.69
Dividend (nominal)
EUR
1.10
1
1.05
1.00
0.94
0.92
Dividend/earnings per share
%
51.4
1
53.2
37.8
49.3
54.3
Dividend yield
%
3.2
1
2.9
3.1
2.4
2.2
Shareholders' equity per share
EUR
19.45
17.59
17.65
14.57
12.31
Average number of shares adjusted for share
issue
104,712,538
2
104,497,300
104,364,676
104,360,114
104,349,676
Number of shares adjusted for share issue at
year end
104,760,700
2
104,538,181
104,364,676
104,364,676
104,349,676
P/E ratio
16.0
18.6
12.1
20.4
24.9
Market capitalization at December 31
EUR million
3,580.7
2
3,839.7
3,339.7
4,058.7
4,409.8
Trading volume in NASDAQ OMX Helsinki Ltd
units
34,812,979
3
43,440,333
61,712,620
50,514,600
59,337,954
Trading volume in alternative trading venues
units
78,202,381
4
152,289,963
161,291,609
99,597,314
92,820,000
Trading volume, total
units
113,015,360
195,730,296
223,004,229
150,111,914
152,157,954
In relation to average number of shares
%
107.9
2
187.3
213.7
143.8
145.8
Development of share price
Lowest trading price
EUR
32.88
28.45
26.41
36.57
23.48
Highest trading price
EUR
40.16
37.20
39.94
45.93
46.62
Trading price on December 31
EUR
34.18
36.73
32.00
38.89
42.26
1
2024: Board's proposal
2
Issue-adjusted and excluding treasury shares.
3
Source: Nasdaq Helsinki Oy
4
Source: Refinitiv Eikon
See also note 2.7. Earnings per share.
1
Directors’ Report and Financial Statements 2024 | 184
Distribution of ownership by number of shares on December 31, 2024
Number
Number of shares
shareholders
% of shareholders
Number of shares
% of shares
1–100
29,006
56.0%
1,135,058
1.1%
101–1,000
18,885
36.5%
6,620,201
6.1%
1,001–10,000
3,619
7.0%
9,108,292
8.5%
10,001–100,000
237
0.5%
6,292,517
5.8%
100,001–1,000,000
40
0.1%
13,903,451
12.9%
More than 1,000,000
8
0.0%
70,633,006
65.6%
Total
51,795
107,692,525
99.9%
In the joint book-entry account
67,860
0.1%
Number of shares issued
107,760,385
100.0%
Distribution of ownership by sector on December 31, 2024
Sector
Number of shares
%
Nominee-registered shares
45,940,053
42.6%
Non-profit organizations
17,045,289
15.8%
Households
16,592,926
15.4%
Public-sector organizations
12,587,080
11.7%
Financial and insurance companies
8,649,790
8.0%
Private companies
6,622,272
6.2%
Foreigners
255,115
0.2%
In the joint book-entry account
67,860
0.1%
Number of shares issued
107,760,385
100.0%
Largest registered shareholders on December 31, 2024
1
Number of shares
Name
and votes
%
Finnish Cultural Foundation
11,319,080
10.5%
Varma Mutual Pension Insurance Company
4,975,720
4.6%
Ilmarinen Mutual Pension Insurance Company
3,863,236
3.6%
Elo Mutual Pension Insurance Company
1,751,000
1.6%
The State Pension Fund
1,100,000
1.0%
Holding Manutas Oy
925,000
0.9%
Security Trading Oy
925,000
0.9%
OP-Finland
835,800
0.8%
Society of Swedish Literature in Finland
763,500
0.7%
Total
26,458,336
24.6%
1
Excluding own shares acquired by Huhtamäki Oyj totaling 2,999,685 and representing 2.8% of the total number of shares.
1
Directors’ Report and Financial Statements 2024 | 185
SHAREHOLDER DISTRIBUTION BY SECTOR DECEMBER 31, 2024
The list above includes only direct registered shareholders and is based on information available from Euroclear
Finland Ltd., excluding 2,999,685 shares held by Huhtamäki Oyj that represent 2.8% of the total number of shares.
Nominee-registered holdings, which may be substantial, are not included. On December 31, 2024 nominee-registered
shareholders held in total 43 of Huhtamäki Oyj’s shares.
DEVELOPMENT OF HUHTAMAKI’S SHARE PRICE JANUARY 2, 2020–DECEMBER 31, 2024
1
Directors’ Report and Financial Statements 2024 | 186
MONTHLY TRADING VOLUME ON NASDAQ HELSINKI 2020–2024
MARKET VALUE AND EQUITY 2020–2024