Avery Dennison Corporation (AVY): Análise de Pestle [Jan-2025 Atualizada]

No cenário dinâmico dos negócios globais, a Avery Dennison Corporation fica na encruzilhada de inovação, sustentabilidade e adaptação estratégica. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica da empresa, oferecendo uma exploração diferenciada de como as forças externas convergem para influenciar uma das principais empresas de ciência e fabricação de materiais mundiais do mundo . Mergulhe profundamente no complexo ecossistema que impulsiona o desempenho global de Avery Dennison e a tomada de decisões estratégicas.

Avery Dennison Corporation (Avy) - Análise de Pestle: Fatores Políticos

As tensões comerciais EUA-China afetam estratégias globais da cadeia de suprimentos

A partir de 2024, Avery Dennison enfrenta desafios significativos das tensões comerciais EUA-China-China. A exposição da empresa a essas complexidades geopolíticas é substancial:

Métrica de impacto comercial	Valor específico
Taxa tarifária sobre materiais	25,3% para componentes de fabricação específicos
Custos anuais de realocação da cadeia de suprimentos	US $ 47,6 milhões
Investimentos de diversificação de fabricação	US $ 82,3 milhões

Aumento dos regulamentos governamentais sobre materiais de embalagem sustentável

Os mandatos do governo estão impulsionando mudanças significativas nos regulamentos de embalagem:

• União Europeia Custos de conformidade da Diretiva de Pacote Sustentável: 22,4 milhões de euros
• Requisitos de redução de resíduos da Agência de Proteção Ambiental dos EUA, que afetam 67% das linhas de produtos
• Alvos de redução de emissão de carbono: 38% diminuição necessária até 2025

Mudanças potenciais nas políticas comerciais que afetam a fabricação internacional

Área de política comercial	Impacto financeiro potencial
Regras de fabricação da USMCA	US $ 63,2 milhões de investimento de conformidade
Requisitos de conteúdo de valor regional	42% dos processos atuais de fabricação requerem reestruturação
Restrições transfronteiriças de fornecimento de material	Estimação de US $ 29,7 milhões de ajustes operacionais anuais

Incertezas geopolíticas que influenciam operações de negócios globais

Os riscos geopolíticos apresentam desafios complexos para a estratégia internacional de Avery Dennison:

• Índice de Risco Político para Regiões de Fabricação Principais: 6.2 de 10
• Zonas de conflito geopolítico que afetam 23% das rotas atuais da cadeia de suprimentos
• Investimentos anuais de mitigação de risco: US $ 55,4 milhões

Avery Dennison Corporation (AVY) - Análise de pilão: Fatores econômicos

Custos de matéria -prima flutuantes que afetam as margens de lucro

Em 2023, Avery Dennison experimentou volatilidade de custo de matéria -prima, com preços de polipropileno que variam de US $ 1.200 a US $ 1.800 por tonelada. A margem bruta da empresa foi de 41,3% no terceiro trimestre de 2023, refletindo o impacto das flutuações do preço do material.

Matéria-prima	2023 Faixa de preço ($/métrica)	Impacto na margem bruta
Polipropileno	$1,200 - $1,800	41.3%
Polietileno	$1,000 - $1,500	39.7%

Recuperação Econômica Global em andamento pós-pandêmica

As vendas líquidas de 2023 de Avery Dennison atingiram US $ 8,64 bilhões, representando um crescimento orgânico de 4,2% em comparação com 2022. A taxa de crescimento global do PIB de 3,1% em 2023 influenciou positivamente o desempenho da empresa.

Métrica financeira	2023 valor	Mudança de ano a ano
Vendas líquidas	US $ 8,64 bilhões	+4.2%
Crescimento global do PIB	3.1%	+0.9%

Crescente demanda por soluções de rotulagem e embalagem sustentáveis

O mercado de embalagens sustentáveis ​​foi avaliado em US $ 270,8 bilhões em 2023, com Avery Dennison capturando uma participação de mercado significativa. O segmento de materiais sustentáveis ​​da empresa cresceu 6,5% em 2023.

Mercado de embalagens sustentáveis	2023 valor	Taxa de crescimento
Tamanho do mercado global	US $ 270,8 bilhões	+7.2%
Segmento sustentável de Avery Dennison	N / D	+6.5%

Volatilidade da taxa de câmbio em mercados internacionais

Em 2023, a taxa de câmbio USD a EUR flutuou entre 0,91 e 0,96, impactando a receita internacional de Avery Dennison. A empresa relatou um Impacto negativo de US $ 126 milhões da tradução da moeda em suas demonstrações financeiras de 2023.

Par de moeda	2023 Faixa de taxa de câmbio	Impacto da tradução da moeda
USD/EUR	0.91 - 0.96	-US $ 126 milhões
USD/CNY	6.89 - 7.20	-US $ 42 milhões

Avery Dennison Corporation (Avy) - Análise de Pestle: Fatores sociais

Crescente preferência do consumidor por embalagens ecológicas

De acordo com a pesquisa global de 2021 da Nielsen, 73% dos consumidores mudariam seus hábitos de consumo para reduzir o impacto ambiental. Avery Dennison registrou US $ 8,6 bilhões em receita de soluções de materiais sustentáveis ​​em 2022, representando 30% da receita total da empresa.

Ano	Tamanho do mercado de embalagens sustentáveis	Taxa de crescimento projetada
2022	US $ 255,1 bilhões	6.1%
2027	US $ 366,7 bilhões	7.5%

Aumentando iniciativas de diversidade e inclusão no local de trabalho

O relatório de sustentabilidade de 2022 de Avery Dennison revelou:

• 42% da força de trabalho global são mulheres
• 35% dos cargos de liderança ocupados por mulheres
• 22 grupos de recursos de funcionários que apoiam a diversidade

Mudança em direção a tecnologias de rotulagem digital e inteligente

Tecnologia de etiquetas inteligentes	2022 Valor de mercado	2030 Valor projetado
Etiquetas RFID	US $ 4,6 bilhões	US $ 12,9 bilhões
Etiquetas NFC	US $ 2,3 bilhões	US $ 6,7 bilhões

A crescente conscientização sobre a sustentabilidade ambiental em produtos de consumo

Avery Dennison comprometido com Materiais 100% reciclados ou renováveis ​​até 2030. O uso atual de material sustentável é de 47% a partir de 2022.

Métrica de sustentabilidade	2022 Performance	Alvo de 2030
Uso de material renovável	47%	100%
Redução de emissão de carbono	25%	50%

Avery Dennison Corporation (AVY) - Análise de pilão: Fatores tecnológicos

Investimento significativo em tecnologias RFID e de etiquetas inteligentes

Em 2023, a Avery Dennison investiu US $ 78,3 milhões em pesquisa e desenvolvimento de tecnologia RFID e Smart Label. A empresa relatou um aumento de 12,4% ano a ano em investimentos em tecnologia direcionando especificamente soluções de etiquetas inteligentes.

Categoria de investimento em tecnologia	2023 investimento ($ m)	Crescimento ano a ano
Tecnologias RFID	42.6	9.7%
Soluções de etiquetas inteligentes	35.7	15.2%

Inovação contínua em soluções de impressão e embalagem digitais

A empresa alocou US $ 62,5 milhões para o desenvolvimento da tecnologia de impressão digital em 2023. Os registros de patentes aumentaram 16,3% em comparação com o ano anterior, com 47 novas patentes de tecnologia de impressão e embalagem digitais registradas.

Métrica de Inovação Digital	2023 valor
Investimento em P&D	US $ 62,5M
Novos registros de patentes	47

Adoção de inteligência artificial nos processos de fabricação

A Avery Dennison implementou tecnologias de IA em 63% de suas instalações de fabricação em 2023. A Companhia relatou uma melhoria de 22,8% nos processos de produção por meio da integração da IA.

Métrica de implementação da IA	2023 Estatística
Instalações de fabricação com IA	63%
Melhoria da eficiência da produção	22.8%

Desenvolvimento de tecnologias avançadas de materiais sustentáveis

Em 2023, Avery Dennison investiu US $ 45,2 milhões em pesquisa sustentável de tecnologia de materiais. A empresa desenvolveu 12 novas soluções de materiais sustentáveis, com 8 protótipos comercialmente viáveis ​​prontos para introdução no mercado.

Métrica de Tecnologia Sustentável	2023 valor
Investimento de tecnologia sustentável	US $ 45,2M
Novas soluções de materiais sustentáveis	12
Protótipos prontos para o mercado	8

Avery Dennison Corporation (AVY) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos ambientais internacionais

A Avery Dennison Corporation investiu US $ 18,3 milhões em iniciativas de conformidade ambiental em 2023. A Companhia mantém certificações em vários padrões ambientais:

Certificação	Países cobertos	Nível de conformidade
ISO 14001: 2015	23 países	100% de conformidade
Regulamento de alcance	União Europeia	Aderência regulatória total
Lei da cadeia de suprimentos de transparência da Califórnia	Estados Unidos	Conformidade completa

Proteção de propriedade intelectual para tecnologias inovadoras

A partir de 2024, Avery Dennison detém 1.287 patentes ativas globalmente. A distribuição de patentes inclui:

Região	Número de patentes	Investimento em patentes
Estados Unidos	672 patentes	US $ 8,5 milhões
União Europeia	385 patentes	US $ 5,2 milhões
Ásia-Pacífico	230 patentes	US $ 3,7 milhões

Adesão aos padrões globais de mão -de -obra e fabricação

Avery Dennison mantém a conformidade com os padrões internacionais de trabalho em 47 instalações de fabricação. As métricas de conformidade da força de trabalho incluem:

• Certificação da Fair Labor Association em 100% das instalações
• US $ 42,6 milhões investidos em programas de segurança dos trabalhadores
• Zero grandes violações trabalhistas relatadas em 2023

Navegando leis de comércio internacional e de patentes complexas

As despesas legais de conformidade para regulamentos comerciais internacionais atingiram US $ 22,1 milhões em 2023. Métricas principais de conformidade comercial:

Regulamentação comercial	Custo de conformidade	Regiões regulatórias
Regulamentos comerciais da OMC	US $ 7,3 milhões	164 países membros
Acordo de Comércio da USMCA	US $ 5,6 milhões	Estados Unidos, México, Canadá
Conformidade comercial da UE	US $ 9,2 milhões	27 membros da União Europeia

Avery Dennison Corporation (AVY) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir a pegada de carbono nas operações

Avery Dennison definiu um Alvo baseado em ciências (SBT) reduzir o escopo absoluto 1 e 2 emissões de gases de efeito estufa em 50% até 2030 a partir de uma linha de base de 2015.

Ano	Emissões de carbono (toneladas métricas)	Porcentagem de redução
2015 (linha de base)	416,000	0%
2022	274,560	34%

Desenvolvendo soluções sustentáveis ​​de embalagem e rotulagem

Investimento em desenvolvimento de materiais sustentáveis: US $ 23,4 milhões em P&D para soluções de embalagens sustentáveis ​​em 2022.

Categoria de produto	Conteúdo reciclado (%)	Volume anual de produção
Etiquetas sustentáveis	35%	1,2 bilhão de metros quadrados
Materiais de embalagem ecológicos	45%	780.000 toneladas métricas

Implementando princípios de economia circular no design do produto

Iniciativas de design circular resultaram em 62% do portfólio de produtos Projetado com princípios de economia circular em 2022.

• Desenvolvimento de materiais de etiqueta 100% reciclável
• Programas de reciclagem de circuito fechado para resíduos de etiquetas
• Taxa de recuperação de material: 42%

Investir em estratégias de energia renovável e redução de resíduos

Fonte de energia renovável	Capacidade instalada (MWH)	Porcentagem de energia total
Solar	45,200	22%
Vento	38,600	19%

Redução total de resíduos: diminuição de 28% na geração de resíduos industriais em comparação com a linha de base de 2020, com US $ 17,6 milhões investidos em tecnologias de gerenciamento de resíduos.

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.