Avery Dennison Corporation (AVY): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de los negocios globales, Avery Dennison Corporation se encuentra en la encrucijada de la innovación, la sostenibilidad y la adaptación estratégica. Este análisis integral de la maja revela la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a la trayectoria estratégica de la compañía, ofreciendo una exploración matizada de cómo las fuerzas externas convergen para influir . Coloque profundamente en el complejo ecosistema que impulsa el desempeño global de Avery Dennison y la toma de decisiones estratégicas.

Avery Dennison Corporation (AVY) - Análisis de mortero: factores políticos

Las tensiones comerciales de US-China impactan estrategias globales de la cadena de suministro

A partir de 2024, Avery Dennison enfrenta desafíos significativos de las tensiones comerciales en curso de los Estados Unidos-China. La exposición de la compañía a estas complejidades geopolíticas es sustancial:

Métrica de impacto comercial	Valor específico
Tasa de tarifa sobre materiales	25.3% para componentes de fabricación específicos
Costos anuales de reubicación de la cadena de suministro	$ 47.6 millones
Inversiones de diversificación de fabricación	$ 82.3 millones

Aumento de las regulaciones gubernamentales sobre materiales de envasado sostenible

Los mandatos del gobierno están impulsando cambios significativos en las regulaciones de envasado:

• Costos de cumplimiento de la Directiva de Embalaje Sostenible de la Unión Europea: 22,4 millones de euros
• La Agencia de Protección Ambiental de EE. UU. Requisitos de reducción de residuos de envasado que afectan al 67% de las líneas de productos
• Objetivos de reducción de emisiones de carbono: 38% de disminución requerida para 2025

Posibles cambios en las políticas comerciales que afectan la fabricación internacional

Área de política comercial	Impacto financiero potencial
Reglas de fabricación de USMCA	Inversión de cumplimiento de $ 63.2 millones
Requisitos de contenido de valor regional	El 42% de los procesos de fabricación actuales requieren reestructuración
Restricciones de abastecimiento de material transfronterizo	Ajustes operativos anuales estimados de $ 29.7 millones

Incertidumbres geopolíticas que influyen en las operaciones comerciales globales

Los riesgos geopolíticos presentan desafíos complejos para la estrategia internacional de Avery Dennison:

• Índice de riesgo político para regiones de fabricación clave: 6.2 de 10
• Zonas de conflicto geopolítico que afectan el 23% de las rutas actuales de la cadena de suministro
• Inversiones anuales de mitigación de riesgos: $ 55.4 millones

Avery Dennison Corporation (AVY) - Análisis de mortero: factores económicos

Fluctuar los costos de las materias primas que afectan los márgenes de ganancia

En 2023, Avery Dennison experimentó la volatilidad del costo de la materia prima, con precios de polipropileno que van desde $ 1,200 a $ 1,800 por tonelada métrica. El margen bruto de la compañía fue del 41.3% en el tercer trimestre de 2023, lo que refleja el impacto de las fluctuaciones de los precios del material.

Materia prima	Rango de precios 2023 ($/tonelada métrica)	Impacto en el margen bruto
Polipropileno	$1,200 - $1,800	41.3%
Polietileno	$1,000 - $1,500	39.7%

Recuperación económica global continua post-pandemia

Las ventas netas de 2023 de Avery Dennison alcanzaron los $ 8.64 mil millones, lo que representa un crecimiento orgánico de 4.2% en comparación con 2022. La tasa de crecimiento del PIB global de 3.1% en 2023 influyó positivamente en el desempeño de la compañía.

Métrica financiera	Valor 2023	Cambio año tras año
Ventas netas	$ 8.64 mil millones	+4.2%
Crecimiento global del PIB	3.1%	+0.9%

Aumento de la demanda de soluciones sostenibles de etiquetado y envasado

El mercado de envases sostenibles se valoró en $ 270.8 mil millones en 2023, con Avery Dennison capturando una participación de mercado significativa. El segmento de materiales sostenibles de la compañía creció un 6.5% en 2023.

Mercado de envasado sostenible	Valor 2023	Índice de crecimiento
Tamaño del mercado global	$ 270.8 mil millones	+7.2%
Avery Dennison segmento sostenible	N / A	+6.5%

Volatilidad del tipo de cambio de divisas en los mercados internacionales

En 2023, el tipo de cambio de USD a EUR fluctuó entre 0.91 y 0.96, impactando los ingresos internacionales de Avery Dennison. La compañía informó un $ 126 millones de impacto negativo de la traducción de la moneda en sus estados financieros de 2023.

Pareja	Rango de tasas de cambio 2023	Impacto de traducción de divisas
USD/EUR	0.91 - 0.96	-$ 126 millones
USD/CNY	6.89 - 7.20	-$ 42 millones

Avery Dennison Corporation (AVY) - Análisis de mortero: factores sociales

Creciente preferencia del consumidor por el envasado ecológico

Según la encuesta global de 2021 de Nielsen, el 73% de los consumidores cambiarían sus hábitos de consumo para reducir el impacto ambiental. Avery Dennison reportó $ 8.6 mil millones en ingresos de soluciones de materiales sostenibles en 2022, lo que representa el 30% de los ingresos totales de la compañía.

Año	Tamaño del mercado de envasado sostenible	Tasa de crecimiento proyectada
2022	$ 255.1 mil millones	6.1%
2027	$ 366.7 mil millones	7.5%

Aumento de las iniciativas de diversidad e inclusión en el lugar de trabajo

El informe de sostenibilidad 2022 de Avery Dennison reveló:

• El 42% de la fuerza laboral global son mujeres
• 35% de los puestos de liderazgo en poder de las mujeres
• 22 grupos de recursos de empleados que apoyan la diversidad

Cambiar hacia tecnologías de etiquetado digital e inteligente

Tecnología de etiqueta inteligente	Valor de mercado 2022	2030 Valor proyectado
Etiquetas RFID	$ 4.6 mil millones	$ 12.9 mil millones
Etiquetas de NFC	$ 2.3 mil millones	$ 6.7 mil millones

Amplia conciencia de la sostenibilidad ambiental en productos de consumo

Avery Dennison se comprometió con 100% de materiales reciclados o renovables para 2030. El uso actual de material sostenible es del 47% a partir de 2022.

Métrica de sostenibilidad	Rendimiento 2022	Objetivo 2030
Uso de material renovable	47%	100%
Reducción de emisiones de carbono	25%	50%

Avery Dennison Corporation (AVY) - Análisis de mortero: factores tecnológicos

Inversión significativa en tecnologías RFID y Smart Label

En 2023, Avery Dennison invirtió $ 78.3 millones en RFID y el desarrollo de tecnología de etiquetas inteligentes. La compañía informó un aumento de 12.4% año tras año en inversiones tecnológicas específicamente que se dirigen a soluciones de etiquetas inteligentes.

Categoría de inversión tecnológica	2023 inversión ($ M)	Crecimiento año tras año
Tecnologías RFID	42.6	9.7%
Soluciones de etiqueta inteligente	35.7	15.2%

Innovación continua en soluciones de impresión digital y envasado

La compañía asignó $ 62.5 millones para el desarrollo de la tecnología de impresión digital en 2023. Las presentaciones de patentes aumentaron en un 16,3% en comparación con el año anterior, con 47 nuevas patentes de tecnología de impresión digital y empaquetado registradas.

Métrica de innovación digital	Valor 2023
Inversión de I + D	$ 62.5M
Nuevas presentaciones de patentes	47

Adopción de inteligencia artificial en procesos de fabricación

Avery Dennison implementó tecnologías de inteligencia artificial en el 63% de sus instalaciones de fabricación en 2023. La compañía informó una mejora de eficiencia del 22.8% en los procesos de producción a través de la integración de IA.

Métrica de implementación de IA	2023 estadística
Instalaciones de fabricación con IA	63%
Mejora de la eficiencia de producción	22.8%

Desarrollo de tecnologías de materiales sostenibles avanzadas

En 2023, Avery Dennison invirtió $ 45.2 millones en investigación de tecnología de materiales sostenibles. La compañía desarrolló 12 nuevas soluciones de material sostenible, con 8 prototipos comercialmente viables listos para la introducción del mercado.

Métrica de tecnología sostenible	Valor 2023
Inversión en tecnología sostenible	$ 45.2M
Nuevas soluciones de material sostenible	12
Prototipos listos para el mercado	8

Avery Dennison Corporation (AVY) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones ambientales internacionales

Avery Dennison Corporation ha invertido $ 18.3 millones en iniciativas de cumplimiento ambiental en 2023. La Compañía mantiene certificaciones en múltiples estándares ambientales:

Proceso de dar un título	Países cubiertos	Nivel de cumplimiento
ISO 14001: 2015	23 países	100% Cumplimiento
Alcanzar regulación	unión Europea	Adherencia regulatoria completa
Ley de la cadena de suministro de transparencia de California	Estados Unidos	Cumplimiento completo

Protección de propiedad intelectual para tecnologías innovadoras

A partir de 2024, Avery Dennison posee 1.287 patentes activas a nivel mundial. La distribución de patentes incluye:

Región	Número de patentes	Inversión en patentes
Estados Unidos	672 patentes	$ 8.5 millones
unión Europea	385 patentes	$ 5.2 millones
Asia-Pacífico	230 patentes	$ 3.7 millones

Adhesión a los estándares mundiales de mano de obra y fabricación

Avery Dennison mantiene el cumplimiento de los estándares laborales internacionales en 47 instalaciones de fabricación. Las métricas de cumplimiento de la fuerza laboral incluyen:

• Certificación de la Asociación de Trabajo Justo en el 100% de las instalaciones
• $ 42.6 millones invertidos en programas de seguridad de trabajadores
• Cero violaciones laborales importantes reportadas en 2023

Navegando por leyes de comercio internacional y complejos de patentes

Los gastos de cumplimiento legal para las regulaciones de comercio internacional alcanzaron $ 22.1 millones en 2023. Métricas clave de cumplimiento del comercio:

Regulación comercial	Costo de cumplimiento	Regiones reguladoras
Regulaciones comerciales de la OMC	$ 7.3 millones	164 países miembros
Acuerdo comercial de USMCA	$ 5.6 millones	Estados Unidos, México, Canadá
Cumplimiento comercial de la UE	$ 9.2 millones	27 miembros de la Unión Europea

Avery Dennison Corporation (AVY) - Análisis de mortero: factores ambientales

Compromiso de reducir la huella de carbono en las operaciones

Avery Dennison estableció un Target basado en la ciencia (SBT) Para reducir el alcance absoluto 1 y 2 emisiones de gases de efecto invernadero en un 50% para 2030 desde una línea de base de 2015.

Año	Emisiones de carbono (toneladas métricas CO2E)	Porcentaje de reducción
2015 (línea de base)	416,000	0%
2022	274,560	34%

Desarrollo de soluciones sostenibles de envasado y etiquetado

Inversión en desarrollo de materiales sostenibles: $ 23.4 millones en I + D para soluciones de envasado sostenible en 2022.

Categoría de productos	Contenido reciclado (%)	Volumen de producción anual
Etiquetas sostenibles	35%	1.200 millones de metros cuadrados
Materiales de embalaje ecológicos	45%	780,000 toneladas métricas

Implementación de principios de economía circular en diseño de productos

Las iniciativas de diseño circular dieron como resultado 62% de la cartera de productos Diseñado con principios de economía circular en 2022.

• Desarrollo de materiales de etiquetas reciclables al 100%
• Programas de reciclaje de circuito cerrado para desechos de etiquetas
• Tasa de recuperación de material: 42%

Invertir en estrategias de reducción de energía renovable y residuos

Fuente de energía renovable	Capacidad instalada (MWH)	Porcentaje de energía total
Solar	45,200	22%
Viento	38,600	19%

Reducción total de residuos: disminución del 28% en la generación de residuos industriales en comparación con la línea de base 2020, con $ 17.6 millones invertidos en tecnologías de gestión de residuos.

Avery Dennison Corporation (AVY) - PESTLE Analysis: Social factors

Strong employee demand for flexible work and improved work-life balance.

You are seeing a persistent shift in employee expectations, and Avery Dennison is defintely not immune. The demand for flexibility is now a baseline requirement, not a perk. The company has formally addressed this by implementing a 'Workplace Flexibility' program, which includes flexible schedules, remote working options, and job sharing to help employees balance their professional and personal lives.

This is a critical retention tool, especially for a global company employing approximately 35,000 people across more than 50 countries. Failing to meet this social demand risks losing key talent, which is far more expensive than adapting work models. It's a cost of doing business in 2025.

Corporate goal to achieve 40% women in manager level and above by 2025.

Avery Dennison has a clear, public goal to cultivate a diverse workforce, specifically targeting 40% female representation at the manager level and above by the end of 2025. This is a measurable commitment that ties directly to the broader social push for gender equity in corporate leadership.

Here's the quick math on where they stand, based on the latest available data, which shows the gap they must close in the near term:

Metric	2025 Corporate Goal	Latest Reported Status (2023/2024)	Gap to Close
Women in Manager Level and Above	40%	33%	7 percentage points
Women New Hires (Manager+)	N/A (Focus on 40% overall)	32% (2023 New Hire Rate)	N/A

The company is using programs like the Advancing Women Executives (AWE) Accelerator Program, which included 64 women in 2023, to build the internal pipeline needed to hit that 40% target.

Increased focus on purpose-driven work and mental health support, especially for Gen Z.

The modern workforce, particularly younger generations, demands that their employer's values align with their own. Avery Dennison addresses this by linking their social goals to their business strategy, aiming to 'Make a positive social impact by enhancing the livelihood of our people and communities'.

This focus on employee well-being and inclusion is measured through specific targets, including a 2030 goal of an 82% Employee Engagement score and an 85% Inclusion Index score. They are also actively reviewing compensation practices for pay equity; for instance, their Medical division in Ireland saw the mean gender pay gap drop to 11.18% in 2024, down from 15.02% in 2023.

Actions driving this purpose-driven culture include:

• Conducting global Unconscious Bias training for managers.
• Launching the Women.Empowered. development program.
• Expanding gender pay equity reviews to include U.S. racial/ethnic pay equity.

Consumer preference for transparent, tech-enabled retail experiences & Growing public pressure for brands to provide item-level supply chain transparency.

These social pressures are a massive opportunity for Avery Dennison, whose core business is providing the digital identification solutions that enable this transparency. Consumers are pushing for verifiable sustainability and sourcing data, and the company's technology is the key enabler.

The company's Intelligent Labels business, which delivers item-level visibility via Radio Frequency Identification (RFID) technology, is a direct response to this trend. This segment is a growth engine: the Solutions Group, which includes Intelligent Labels, had Q3 2025 reported sales of $700 million, with high-value categories like Intelligent Labels seeing growth in the mid-single digits.

The market need is clear: a Q1 2025 Avery Dennison report indicated that 25% of US and UK fashion retailers still have 'limited or no visibility' at the item level in their supply chains. This lack of visibility is why 65% of surveyed supply chain leaders believe investment in better tech like RFID tagging is crucial for improvement. Avery Dennison's atma.io connected product cloud is already connecting over 30 billion unique items globally as of late 2025, showing their scale in addressing this critical social and regulatory demand.

Avery Dennison Corporation (AVY) - PESTLE Analysis: Technological factors

The core of Avery Dennison Corporation's technological strategy in 2025 is the fusion of physical materials science with digital identification, primarily through radio-frequency identification (RFID) and cloud platforms. This isn't just about selling labels; it's about selling item-level data and supply chain intelligence. Your investment thesis here should recognize that the company is transitioning from a materials provider to a digital solutions enabler.

Intelligent Labels, a high-value category, showing high single-digit growth in Q1 2025.

Intelligent Labels, which includes their digital identification and RFID products, is a clear growth engine. In Q1 2025, the high-value categories within the Materials Group, which includes Intelligent Labels, saw organic growth in the high single digits overall. This is a strong signal, especially when you consider the Solutions Group's high-value categories, where Intelligent Labels also showed low single-digit organic growth. For a company that reported total net sales of $2.1 billion in Q1 2025, this segment is defintely where the higher margins and future value reside.

The company continues to target an aggressive enterprise-wide long-term organic sales growth rate of ~15%+ for Intelligent Labels, showing management's confidence in this technology's market penetration.

Strategic adoption of RFID (Radio-Frequency Identification) for item-level tracking.

The strategic deployment of RFID is moving beyond apparel retail-its traditional stronghold-into new, high-growth sectors. This technology is crucial for item-level visibility, which allows customers to track a product from its raw material source to the consumer and beyond.

A prime example of this expansion is the company's July 2025 launch of its RFID-enabled In-Mold Label (IML) solutions, which directly addresses the need for enhanced traceability in durable goods and packaging. Furthermore, a partnership with a major US retailer (Walmart) is using RFID-embedded labels in the bakery department to improve freshness management and operational efficiency, proving its value in the food sector.

Here's the quick math on efficiency gains from a recent deployment:

Customer Application	Avery Dennison Solution	Efficiency Gain
Dallas Cowboys Jersey Customization	Embelex Solution Portfolio (RFID-enabled)	Reduced production time from 45 minutes to 20 minutes
General Retail Supply Chain	RFID-based Inventory Management	Eliminates 'invisible waste' from poor inventory and overproduction

Investment in the atma.io connected product cloud platform for digital identification.

The atma.io connected product cloud is the digital backbone for the entire Intelligent Labels strategy. It's the platform that assigns and manages unique digital identities for physical items. The sheer scale of this investment is evident in its current reach: the platform now manages over 30 billion unique items globally. This massive data set creates a significant competitive moats (network effect) and provides unparalleled end-to-end transparency for brands.

The platform is the core software component of the Optica™ portfolio, an end-to-end suite of solutions that combines RFID hardware, software, and services to give brands greater control and visibility over their supply chains. One clean one-liner: atma.io is how they monetize the Internet of Things.

Use of Generative AI tools like chatbots to improve internal IT support and content.

Avery Dennison is applying Generative AI (Artificial Intelligence) to drive efficiency, particularly within its digital solutions. While the initial integration of tools like ChatGPT (OpenAI's AI chatbot) occurred in 2023, the capability is now a standard feature within the atma.io platform.

The primary use case is automating alert response and speeding up communication among supply chain partners. The goal is to reduce the time sourcing and supply chain managers spend on repetitive, manual tasks like chasing information via email, allowing them to focus on high-value, strategic decisions.

Automation and robotics are being used to enhance factory efficiency and reduce waste.

The company's internal operations are increasingly leveraging automation and robotics to meet ambitious sustainability goals, which directly translates to factory efficiency and waste reduction. This is a critical action because labor challenges and the push for operational efficiency are major industry trends.

The focus on eliminating waste is explicitly linked to their 2025 targets:

• Eliminate 70% of the matrix and liner waste from the value chain by 2025.
• Achieve a goal of having 75% of all operational waste reused, repurposed, or recycled by 2025.
• As of 2022, the company had already diverted 93% of its solid waste from landfills, demonstrating a strong trajectory toward the 2025 goal.

The technology is being used to capture and manage real-time data to identify and eliminate waste, a process that is essential for a more circular economy.

Avery Dennison Corporation (AVY) - PESTLE Analysis: Legal factors

Compliance with complex, multi-jurisdictional anti-corruption and compliance laws

You might think of a global materials science company as mainly dealing with chemistry and logistics, but honestly, the biggest legal risk is often just making sure everyone plays by the rules everywhere. For Avery Dennison, this means navigating a maze of anti-corruption and trade compliance laws across the 50+ countries they operate in. The company's 2025 risk disclosures clearly flag the impact of legal proceedings, including compliance and anti-corruption, as a significant near-term risk.

The stakes are high. The U.S. Department of Justice (DOJ) has been aggressive, with penalties related to the Foreign Corrupt Practices Act (FCPA) and sanctions evasion increasing significantly in 2024, setting a tough precedent for 2025. Avery Dennison manages this by requiring managers and above to complete an annual Compliance Certification. They also run a global investigations system that processes at least 200 reports annually via their Business Conduct GuideLine (whistleblower hotline) to catch issues fast.

Pressure from the EU's Digital Product Passport (DPP) mandate for product information

The European Union's Digital Product Passport (DPP) isn't just a green initiative; it's a massive legal mandate for product information traceability. It forces companies to provide a digital record of a product's origin, composition, and end-of-life management-a huge undertaking for materials and labeling suppliers. The official rollout for key sectors like apparel and textiles is slated to begin by 2027, but the preparation is a critical 2025 legal and operational hurdle.

Avery Dennison is defintely ahead of the curve here. They are an associate member of the CIRPASS-2 consortium, which advises the EU on the DPP's implementation. This first-hand knowledge has allowed them to launch DPP as a Service (DPPaaS), a solution that helps their brand customers meet the pending requirements under the Eco-design for Sustainable Product Regulation (ESPR).

Regulatory fragmentation across regions increases compliance costs and complexity

The challenge with global operations is that you don't just comply with one set of laws; you comply with dozens that often contradict or overlap. This regulatory fragmentation significantly drives up compliance costs. Europe continues to lead with stringent, advanced policies, but the US also presents a patchwork of state-level rules.

For example, in the US, Avery Dennison must proactively address state-specific consumer protection and environmental laws:

• California Proposition 65: Requires warnings for chemicals known to cause cancer or reproductive harm, impacting material formulations.
• Phenol Restrictions: Stricter regulations in California and Washington are driving the need for phenol-free thermal paper, with bans starting as early as 2026.

The company has had to create a dedicated Avery Dennison Compliance Service just to help its customers navigate this complexity, providing tailored regulatory documents and expert support.

Need to monitor evolving labor laws and consumer protection regulations globally

Beyond product-level compliance, the legal landscape for human capital and consumer rights is constantly shifting. Avery Dennison's risk factors highlight the need to manage Human Capital issues, including recruitment, retention, and collective labor arrangements globally.

On the labor front, adherence to forced labor regulations in supply chains is a major 2025 trade compliance trend, especially as governments demand greater accountability from businesses. The company's terms and conditions explicitly state compliance with the Fair Labor Standards Act (FLSA) for its manufactured products. On the consumer side, compliance with the U.S. Consumer Product Safety Improvement Act (CPSIA) is non-negotiable for their products used in consumer goods.

Adherence to international trade regulations and tariff structures is critical

Trade policy remains one of the most volatile legal factors impacting Avery Dennison in 2025. The company's Solutions Group is heavily exposed, with approximately 70% of its sales in tariff-impacted apparel and general retail end markets.

In Q2 2025, the company's management reported that tariff-related cost increases were in the low-single-digit range, but they were largely offset by proactive sourcing and pricing adjustments. In a concrete example of the direct impact, Avery Dennison Fastener Solutions implemented a 6% price increase on specific products like Swiftach® and Plastic Staple® in April 2025 due to new tariffs on items sourced from Korea and Japan.

Here's the quick math on trade impact and mitigation:

Legal/Trade Factor	2025 Impact/Action	Financial/Operational Detail
Solutions Group Tariff Exposure	Ongoing tariff challenges and trade policy uncertainty.	Affects ~70% of Solutions Group sales (apparel/retail).
Tariff-Related Cost Increase	Costs largely offset by pricing and sourcing actions in Q2 2025.	Cost increases were in the low-single-digit range.
Fastener Solutions Price Adjustment	Price increase implemented May 5, 2025.	6% price increase on products from Korea/Japan due to new tariffs.
US Domestic Sourcing (BABA)	New 'final assembly' requirement for federal-aid highway projects.	Goes into effect on October 1, 2025, requiring final assembly in the US.

The company's global footprint actually offers an opportunity: high tariffs on Chinese apparel exports can encourage brands to shift sourcing to other countries, which Avery Dennison can facilitate with its global supply chain solutions.

Avery Dennison Corporation (AVY) - PESTLE Analysis: Environmental factors

The environmental landscape for Avery Dennison Corporation (AVY) in 2025 is defined by a dual focus: meeting ambitious, self-imposed sustainability targets and navigating a rapidly tightening global regulatory framework, particularly around waste and packaging. Honestly, the company has done a defintely good job in exceeding several of its 2025 goals ahead of schedule, which puts them in a strong position against competitors who are just now playing catch-up.

Goal to achieve 70% of revenue from sustainability-driven products by 2025.

Avery Dennison is nearly at its goal of having 70% of its revenue tied to sustainability-driven products, defined as those conforming to its environmental and social guiding principles (Sustainable ADvantage standard). As of the 2024 results reported in March 2025, the company's Materials Group (Label and Graphic Materials) hit 69% of revenue, and the Solutions Group (Apparel Solutions) reached 66% of revenue. This near-term goal is a clear indicator that sustainable innovation is a core revenue driver, not just a compliance cost.

Here's the quick math: the Materials Group needs just a 1% increase to hit the 70% target. That's a strong position to be in heading into the final year of the target period.

Commitment to 95% landfill-free operations by the end of 2025.

The commitment to drastically reduce manufacturing waste sent to landfills is a key operational metric. The target is to achieve 95% landfill-free operations. The company is very close to this goal, reporting that its operations were 94% landfill-free as of the 2024 results. The remaining 1% gap represents a final push on waste-to-energy or advanced recycling programs for the hardest-to-handle waste streams.

Target of 100% certified paper sourcing, with 70% FSC-certified face paper by 2025.

The company has largely met and, in one critical area, exceeded its paper sourcing goals, which is crucial given its role as a major global purchaser of paper materials. As of 2024, 97% of all paper was certified, nearly hitting the 100% goal. More impressively, the Forest Stewardship Council (FSC)-certified face paper target of 70% was surpassed, reaching 80% in the 2024 results. This over-delivery mitigates supply chain risk and appeals directly to brand owners facing their own deforestation-related scrutiny.

Aiming for at least a 26% cumulative reduction in absolute GHG emissions by 2025.

Avery Dennison has significantly outperformed its initial Greenhouse Gas (GHG) emissions reduction target. The original goal was a minimum of 26% cumulative reduction in absolute GHG emissions from a 2015 baseline by 2025. They blew past this years ago, reporting a 54% cumulative GHG emissions reduction in their 2024 results. This achievement is why the company has already set a much more aggressive 2030 goal: a 70% reduction in Scope 1 and 2 GHG emissions from the 2015 baseline.

The table below summarizes the company's progress against its key 2025 environmental targets using the latest available data:

2025 Environmental Goal	Target	2024 Results (Reported March 2025)	Status
Revenue from Sustainability-Driven Products	70%	Materials Group: 69%; Solutions Group: 66%	Near-Target
Absolute GHG Emissions Reduction (from 2015 baseline)	At least 26%	54% cumulative reduction	Exceeded
Landfill-Free Operations	95%	94% landfill-free	Near-Target
FSC-Certified Face Paper Sourcing	70%	80% FSC-certified	Exceeded

Increasing regulatory scrutiny on waste management and Extended Producer Responsibility (EPR) schemes.

The most significant near-term risk and opportunity lies in the rapid expansion of Extended Producer Responsibility (EPR) schemes, which shift the financial and operational burden of managing post-consumer packaging waste from municipalities to the producers. This is a massive change for all packaging and labeling companies.

In the U.S., the patchwork of state laws is solidifying, with seven states now having enacted packaging EPR laws, including populous states like California, Oregon, and Washington. Producers in Oregon, for example, saw fee obligations begin on July 1, 2025, while producers in Colorado must submit 2024 packaging data by July 31, 2025.

In Europe, the new Packaging and Packaging Waste Regulation (PPWR), which came into force in February 2025, creates a uniform, stricter legal framework across all 27 EU member states. This regulation mandates:

• Mandatory recyclability for all packaging by 2030.
• Minimum recycled content quotas for plastic packaging.
• Eco-modulation of fees, where producers pay less for packaging that is easier to recycle.

This eco-modulation trend is a clear opportunity for Avery Dennison. Their innovation in products like CleanFlake-a wash-off adhesive that allows PET plastic to be recycled without label contamination-directly lowers the EPR fees for their brand-owner customers in markets like The Netherlands and France, making their solutions a competitive advantage.

Finance: Monitor new EPR compliance costs in Maryland and Washington, which both passed laws in May 2025, and factor potential fee increases into Q4 2025 cost of goods sold (COGS) projections.