Avery Dennison Corporation (AVY): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique des affaires mondiales, Avery Dennison Corporation se dresse au carrefour de l'innovation, de la durabilité et de l'adaptation stratégique. Cette analyse complète du pilotage dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise, offrant une exploration nuancée de la façon dont les forces externes convergent pour influencer l'une des principales sociétés mondiales de science et de fabrication des matériaux au monde et la fabrication mondiale . Plongez profondément dans l'écosystème complexe qui entraîne la performance mondiale d'Avery Dennison et la prise de décision stratégique.

Avery Dennison Corporation (AVY) - Analyse du pilon: facteurs politiques

Les tensions commerciales américaines-chinoises ont un impact sur les stratégies mondiales de la chaîne d'approvisionnement

Depuis 2024, Avery Dennison est confrontée à des défis importants des tensions commerciales en cours américano-chinoises. L'exposition de l'entreprise à ces complexités géopolitiques est substantielle:

Métrique d'impact commercial	Valeur spécifique
Tarif sur les matériaux	25,3% pour des composants de fabrication spécifiques
Coûts annuels de réinstallation de la chaîne d'approvisionnement	47,6 millions de dollars
Investissements de diversification manufacturier	82,3 millions de dollars

Augmentation des réglementations gouvernementales sur le matériel d'emballage durable

Les mandats du gouvernement entraînent des changements importants dans les réglementations d'emballage:

• Coûts de conformité directive de la directive d'emballage durable de l'Union européenne: 22,4 millions d'euros
• Agence américaine de protection de l'environnement Emballage des exigences de réduction des déchets impactant 67% des gammes de produits
• Cibles de réduction des émissions de carbone: 38% de diminution requise d'ici 2025

Changements potentiels dans les politiques commerciales affectant la fabrication internationale

Zone de politique commerciale	Impact financier potentiel
Règles de fabrication de l'USMCA	63,2 millions de dollars d'investissement de conformité
Exigences de contenu de valeur régionale	42% des processus de fabrication actuels nécessitent une restructuration
Restrictions de l'approvisionnement en matériaux transfrontaliers	Ajustements opérationnels annuels estimés à 29,7 millions de dollars

Incertitudes géopolitiques influençant les opérations commerciales mondiales

Les risques géopolitiques présentent des défis complexes pour la stratégie internationale d'Avery Dennison:

• Indice de risque politique pour les régions de fabrication clés: 6,2 sur 10
• Zones de conflit géopolitique affectant 23% des voies actuelles de la chaîne d'approvisionnement
• Investissements annuels d'atténuation des risques: 55,4 millions de dollars

Avery Dennison Corporation (AVY) - Analyse du pilon: facteurs économiques

Fluctuant les coûts des matières premières affectant les marges bénéficiaires

En 2023, Avery Dennison a connu la volatilité des coûts des matières premières, avec des prix en polypropylène allant de 1 200 $ à 1 800 $ par tonne métrique. La marge brute de l'entreprise était de 41,3% au troisième trimestre 2023, reflétant l'impact des fluctuations des prix des matériaux.

Matière première	2023 Prix de prix ($ / tonne métrique)	Impact sur la marge brute
Polypropylène	$1,200 - $1,800	41.3%
Polyéthylène	$1,000 - $1,500	39.7%

Reprise économique mondiale en cours post-pandemique

Les ventes nettes en 2023 d'Avery Dennison ont atteint 8,64 milliards de dollars, ce qui représente une croissance organique de 4,2% par rapport à 2022. Le taux de croissance du PIB mondial de 3,1% en 2023 a influencé positivement la performance de l'entreprise.

Métrique financière	Valeur 2023	Changement d'une année à l'autre
Ventes nettes	8,64 milliards de dollars	+4.2%
Croissance mondiale du PIB	3.1%	+0.9%

Demande croissante de solutions d'étiquetage et d'emballage durables

Le marché des emballages durables était évalué à 270,8 milliards de dollars en 2023, Avery Dennison capturant une part de marché importante. Le segment des matériaux durables de l'entreprise a augmenté de 6,5% en 2023.

Marché des emballages durables	Valeur 2023	Taux de croissance
Taille du marché mondial	270,8 milliards de dollars	+7.2%
Segment durable Avery Dennison	N / A	+6.5%

Volatilité des taux de change sur les marchés internationaux

En 2023, le taux de change USD à EUR a fluctué entre 0,91 et 0,96, ce qui a un impact sur les revenus internationaux d'Avery Dennison. L'entreprise a signalé un 126 millions de dollars impact négatif à partir de la traduction des devises dans leurs états financiers de 2023.

Paire de devises	2023 Plage de taux de change	Impact de la traduction des devises
USD / EUR	0.91 - 0.96	- 126 millions de dollars
USD / CNY	6.89 - 7.20	- 42 millions de dollars

Avery Dennison Corporation (AVY) - Analyse du pilon: facteurs sociaux

Préférence croissante des consommateurs pour l'emballage écologique

Selon l'enquête mondiale en 2021 de Nielsen, 73% des consommateurs modifieraient leurs habitudes de consommation pour réduire l'impact environnemental. Avery Dennison a déclaré 8,6 milliards de dollars de revenus de solutions matérielles durables en 2022, ce qui représente 30% du total des revenus de l'entreprise.

Année	Taille du marché des emballages durables	Taux de croissance projeté
2022	255,1 milliards de dollars	6.1%
2027	366,7 milliards de dollars	7.5%

Augmentation des initiatives de diversité et d'inclusion en milieu de travail

Le rapport sur le développement durable d'Avery Dennison en 2022 a révélé:

• 42% de la main-d'œuvre mondiale sont des femmes
• 35% des postes de direction occupés par des femmes
• 22 groupes de ressources des employés soutenant la diversité

Vers les technologies d'étiquetage numériques et intelligentes

Technologie de l'étiquette intelligente	2022 Valeur marchande	2030 valeur projetée
Étiquettes RFID	4,6 milliards de dollars	12,9 milliards de dollars
Étiquettes NFC	2,3 milliards de dollars	6,7 milliards de dollars

Conscience croissante de la durabilité environnementale dans les produits de consommation

Avery Dennison s'est engagé à Matériaux 100% recyclés ou renouvelables d'ici 2030. L'utilisation actuelle des matériaux durables est de 47% en 2022.

Métrique de la durabilité	2022 Performance	Cible 2030
Utilisation des matériaux renouvelables	47%	100%
Réduction des émissions de carbone	25%	50%

Avery Dennison Corporation (AVY) - Analyse du pilon: facteurs technologiques

Investissement significatif dans les technologies RFID et Smart Label

En 2023, Avery Dennison a investi 78,3 millions de dollars dans la recherche et le développement technologiques RFID et étiquettes intelligentes. La société a déclaré une augmentation de 12,4% en glissement annuel des investissements technologiques ciblant spécifiquement les solutions d'étiquette intelligente.

Catégorie d'investissement technologique	2023 Investissement ($ m)	Croissance d'une année à l'autre
RFID Technologies	42.6	9.7%
Solutions d'étiquette intelligente	35.7	15.2%

Innovation continue dans les solutions d'impression numérique et d'emballage

La société a alloué 62,5 millions de dollars au développement de la technologie d'impression numérique en 2023. Les dépôts de brevets ont augmenté de 16,3% par rapport à l'année précédente, avec 47 nouveaux brevets numériques d'impression et d'emballage enregistrés.

Métrique d'innovation numérique	Valeur 2023
Investissement en R&D	62,5 M $
Nouveaux dépôts de brevet	47

Adoption de l'intelligence artificielle dans les processus de fabrication

Avery Dennison a mis en œuvre les technologies d'IA dans 63% de ses installations de fabrication en 2023. La société a déclaré une amélioration de l'efficacité de 22,8% dans les processus de production grâce à l'intégration de l'IA.

Métrique de mise en œuvre de l'IA	2023 statistiques
Installations de fabrication avec l'IA	63%
Amélioration de l'efficacité de la production	22.8%

Développement de technologies de matériaux durables avancées

En 2023, Avery Dennison a investi 45,2 millions de dollars dans la recherche sur la technologie des matériaux durables. La société a développé 12 nouvelles solutions matérielles durables, avec 8 prototypes commercialement viables prêts à l'introduction du marché.

Métrique technologique durable	Valeur 2023
Investissement en technologie durable	45,2 millions de dollars
Nouvelles solutions matérielles durables	12
Prototypes prêts au marché	8

Avery Dennison Corporation (AVY) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations environnementales internationales

Avery Dennison Corporation a investi 18,3 millions de dollars dans les initiatives de conformité environnementale en 2023. La société maintient des certifications sur plusieurs normes environnementales:

Certification	Les pays couverts	Niveau de conformité
ISO 14001: 2015	23 pays	Compliance à 100%
Atteindre la réglementation	Union européenne	Adhérence réglementaire complète
California Transparency Supply Chain Act	États-Unis	Compliance complète

Protection de la propriété intellectuelle pour les technologies innovantes

En 2024, Avery Dennison détient 1 287 brevets actifs dans le monde. La distribution des brevets comprend:

Région	Nombre de brevets	Investissement en brevet
États-Unis	672 brevets	8,5 millions de dollars
Union européenne	385 brevets	5,2 millions de dollars
Asie-Pacifique	230 brevets	3,7 millions de dollars

Adhésion aux normes mondiales de main-d'œuvre et de fabrication

Avery Dennison maintient le respect des normes de travail internationales dans 47 installations de fabrication. Les mesures de conformité de la main-d'œuvre comprennent:

• Certification Fair Labor Association dans 100% des installations
• 42,6 millions de dollars investis dans des programmes de sécurité des travailleurs
• Zéro violations du travail majeure signalées en 2023

Naviguer dans les lois complexes du commerce international et des brevets

Les dépenses de conformité juridique pour les réglementations commerciales internationales ont atteint 22,1 millions de dollars en 2023. Mesures clés de la conformité commerciale:

Réglementation commerciale	Coût de conformité	Régions réglementaires
Règlements commerciaux de l'OMC	7,3 millions de dollars	164 pays membres
Accord commercial de l'USMCA	5,6 millions de dollars	États-Unis, Mexique, Canada
Conformité au commerce de l'UE	9,2 millions de dollars	27 membres de l'Union européenne

Avery Dennison Corporation (AVY) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone à travers les opérations

Avery Dennison a établi un Cible scientifique (SBT) Pour réduire les émissions absolues de gaz à effet de serre de la portée 1 et 2 de 50% par rapport à une ligne de base en 2015.

Année	Émissions de carbone (tonnes métriques CO2E)	Pourcentage de réduction
2015 (ligne de base)	416,000	0%
2022	274,560	34%

Développer des solutions d'emballage et d'étiquetage durables

Investissement dans le développement matériel durable: 23,4 millions de dollars en R&D pour les solutions d'emballage durables en 2022.

Catégorie de produits	Contenu recyclé (%)	Volume de production annuel
Étiquettes durables	35%	1,2 milliard de mètres carrés
Matériaux d'emballage respectueux de l'environnement	45%	780 000 tonnes métriques

Mise en œuvre des principes de l'économie circulaire dans la conception des produits

Les initiatives de conception circulaire ont abouti à 62% du portefeuille de produits Conçu avec les principes de l'économie circulaire en 2022.

• Développement de matériaux d'étiquette 100% recyclables
• Programmes de recyclage en boucle fermée pour les déchets d'étiquette
• Taux de récupération des matériaux: 42%

Investir dans des énergies renouvelables et des stratégies de réduction des déchets

Source d'énergie renouvelable	Capacité installée (MWH)	Pourcentage d'énergie totale
Solaire	45,200	22%
Vent	38,600	19%

Réduction totale des déchets: diminution de 28% de la production de déchets industriels par rapport à la ligne de base de 2020, avec 17,6 millions de dollars investis dans les technologies de gestion des déchets.

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.