In November of 2019, O-I European Group B.V., a subsidiary of O-I
Glass, Inc. (NYSE: O-I) was the first packaging Company to issue a
Green Bond (EUR 500 million). The company has committed to allocate
an amount equal to the net proceeds from the Green Bond offering to
finance and/or refinance new and/or existing Eligible Green
Projects within 36 months from the issue date of the Green
Bond. As of November 2020, the Company has allocated EUR
255.6 million to Eligible Green Projects.
This allocation includes new investments in purchasing recycled
glass (cullet) to further improve the environmental footprint of
O-I’s products and production. The purchase of cullet qualifies as
an Eligible Green Project as it supports the circular economy
through building demand for post-consumer recycled glass and
increasing recycled content in new glass packaging.
“Sustainability is integrated into every aspect of O-I’s culture
and operations,” said Andres Lopez, Chief Executive Officer for
O-I. “Our vision is to be the most innovative, sustainable, and
chosen supplier of brand-building packaging, building value for all
stakeholders. This Green Bond represents our ongoing commitment to
find and execute innovative strategies to elevate our
sustainability ambitions.”
To advance these aspirations and ensure sustainability
initiatives are driven deep into the company, O-I also recently
appointed its first Chief Sustainability Officer, Randolph Burns,
who reports directly to the CEO. The Company is actively
working to improve the U.S. glass recycling system, building on the
successful model in Europe where glass recycling outpaces all other
packaging materials.
“We also have initiated a glass advocacy campaign initially
focused in the U.S.,” Lopez continued. “This effort will ensure to
rebalance the public discussion on social and traditional media
with regards to the inherent sustainable nature of glass as well as
emphasizing the many benefits of our product including the healthy,
premium and brand building characteristics of glass.”
O-I sustainability ambitions are also aligned with the United
Nations Sustainable Development Goals and include science-based
targets to reduce emissions.
The investment in cullet directly supports these targets by
cutting carbon emissions, reducing energy and conserving natural
resources while diverting valuable glass feedstock from the
landfills. For example, for every 10 percent of cullet used in
production, energy consumption is reduced by three percent and
carbon emissions are cut by about five percent.
The cullet purchased as a result of Green Bond net proceeds
corresponds with the conservation of more than 1.4 million metric
tons of CO2—or the equivalent CO2 generated to electrically power
all the homes in the state of Vermont for one year.
Other sustainability initiatives the company is currently
pursuing include the process of converting seven North American
plants to LED lighting and the use of Oxy-Fuel to increase furnace
efficiencies.
The shift to LED lighting at the Muskogee, Auburn, Windsor,
Waco, Winston-Salem, Lapel and Brampton facilities reduces energy
consumption associated with production—further contributing to
decarbonization. The expected energy savings in Windsor, alone, is
the equivalent to saving three million pounds of carbon per year—or
the equivalent of removing 300 cars from the road.
To advance energy reduction, O-I is also investing in the use of
oxy-fuel for furnaces, which uses purified oxygen, rather than air,
during combustion. This shift reduces energy input while minimizing
gas flow and emissions. Most recently, facilities in Villotta,
Italy and Jarvakandi, Estonia have incorporated Oxy-Fuel, achieving
the lowest CO2 intensities per ton in the O-I network. O-I’s
revolutionary MAGMA technology also advances the sustainability of
glass manufacturing by, among other things, increasing flexibility
with on-off technology, reparability, potential co-location or
near-location possibilities and light weighting.
Management’s assertion on the allocation of net proceeds to
qualifying Eligible Green Projects as well as the examination
report of our independent accountants are available on the O-I
website, along with information on O-I’s overall sustainability
agenda.
“As the leader in the glass packaging industry, we will continue
to innovate and raise our sustainability ambitions,” said Burns.
“We are continuously seeking new, and more sustainable, ways to
improve our performance in our packaging and our operations, as
well as providing our customers with premium packaging that
enhances their brand, while helping to achieve their sustainability
goals.”
About O-I
At O-I Glass, Inc. (NYSE: OI), we love glass and we’re proud to
make more of it than any other glass bottle or jar producer in the
world. We love that it’s beautiful, pure and completely recyclable.
With global headquarters in Perrysburg, Ohio, we are the
preferred partner for many of the world’s leading food and beverage
brands. Working hand and hand with our customers, we give our
passion and expertise to make their bottles iconic and help build
their brands around the world. With more than 25,500 people at
72 plants in 20 countries, O-I has a global impact,
achieving revenues of $6.7 billion in 2019. For more information,
visit o-i.com.
Forward-Looking Statements
This press release contains “forward-looking” statements related
to O-I Glass, Inc. (“O-I Glass” or the “company”) within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and Section 27A of the Securities Act
of 1933. Forward-looking statements reflect the company’s current
expectations and projections about future events at the time, and
thus involve uncertainty and risk. The words “believe,” “expect,”
“anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,”
“estimate,” “intend,” “predict,” “potential,” “continue,” and the
negatives of these words and other similar expressions generally
identify forward-looking statements.
It is possible that the company’s future financial performance
may differ from expectations due to a variety of factors including,
but not limited to the following: (1) the company’s ability to
obtain the benefits it anticipates from the Corporate
Modernization, (2) risks inherent in, and potentially adverse
developments related to, the Chapter 11 bankruptcy proceeding
involving the company’s wholly owned subsidiary Paddock Enterprise,
LLC (“Paddock”), that could adversely affect the company and the
company’s liquidity or results of operations, including the impact
of deconsolidating Paddock from the company’s financials, risks
from asbestos-related claimant representatives asserting claims
against the company and potential for litigation and payment
demands against the company by such representatives and other third
parties, (3) the amount that will be necessary to fully and finally
resolve all of Paddock’s asbestos-related claims and the company’s
obligations to make payments to resolve such claims under the terms
of its support agreement with Paddock, (4) the company’s ability to
manage its cost structure, including its success in implementing
restructuring or other plans aimed at improving the company’s
operating efficiency and working capital management, achieving cost
savings, and remaining well-positioned to address the company’s
legacy liabilities, (5) the company’s ability to acquire or divest
businesses, acquire and expand plants, integrate operations of
acquired businesses and achieve expected benefits from
acquisitions, divestitures or expansions, (6) the company’s ability
to achieve its strategic plan, (7) foreign currency fluctuations
relative to the U.S. dollar, (8) changes in capital availability or
cost, including interest rate fluctuations and the ability of the
company to refinance debt on favorable terms, (9) the general
political, economic and competitive conditions in markets and
countries where the company has operations, including uncertainties
related to Brexit, economic and social conditions, disruptions in
the supply chain, competitive pricing pressures, inflation or
deflation, changes in tax rates and laws, natural disasters, and
weather, (10) the impact of COVID-19 and the various
governmental, industry and consumer actions related thereto, (11)
the company’s ability to generate sufficient future cash flows to
ensure the company’s goodwill is not impaired, (12) consumer
preferences for alternative forms of packaging, (13) cost and
availability of raw materials, labor, energy and transportation,
(14) consolidation among competitors and customers, (15)
unanticipated expenditures with respect to data privacy,
environmental, safety and health laws, (16) unanticipated
operational disruptions, including higher capital spending, (17)
the company’s ability to further develop its sales, marketing and
product development capabilities, (18) the failure of the company’s
joint venture partners to meet their obligations or commit
additional capital to the joint venture, (19) the ability of the
company and the third parties on which it relies for information
technology system support to prevent and detect security breaches
related to cybersecurity and data privacy, (20) changes in U.S.
trade policies, and the other risk factors discussed in the
company’s Annual Report on Form 10-K for the year ended December
31, 2019, Quarterly Report on form 10-Q for the quarterly period
ended September 30, 2020 and any subsequently filed Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q or the company’s other
filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all such
factors. Any forward-looking statements in this document are
based on certain assumptions and analyses made by the company in
light of its experience and perception of historical trends,
current conditions, expected future developments, and other factors
it believes are appropriate in the circumstances.
Forward-looking statements are not a guarantee of future
performance and actual results or developments may differ
materially from expectations. While the company continually
reviews trends and uncertainties affecting the company’s results or
operations and financial condition, the company does not assume any
obligation to update or supplement any particular forward-looking
statements contained in this document.
Jim Woods
PR Lead, Americas North
james.woods@o-i.com
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