Greif Sets Emissions Reduction Targets with SBTi

Global packaging manufacturer sets expanded climate goals

Greif, a leading industrial packaging manufacturer, has committed to the Science Based Targets initiative (SBTi). The company announced on 22 April 2026 that it will develop more ambitious emissions reduction targets. For the first time, these targets will include scope 3 emissions across its value chain.

The announcement came alongside Greif’s 17th annual Sustainability Report. It marks a significant expansion of the company’s climate commitments. These now extend beyond direct operations to address supply chain emissions.

SBTi provides a framework for companies to set emissions targets consistent with climate science. Targets validated by the initiative must align with limiting global warming to well below 2 degrees Celsius. For many businesses, this represents the most credible approach to climate action.

Why packaging sector emissions matter to UK supply chains

Industrial packaging sits at the heart of UK manufacturing and distribution networks. Consequently, emissions from packaging producers flow through to hundreds of downstream businesses. Many UK companies now face customer or tender requirements to report supply chain emissions.

Greif manufactures steel drums, plastic containers, and fibre products used across multiple sectors. Its customers include chemical manufacturers, food processors, and pharmaceutical companies. When a major supplier commits to science-based targets, it creates ripple effects throughout these supply chains.

The company’s decision to address scope 3 emissions is particularly relevant. These are the indirect emissions that occur in a company’s value chain. For manufacturers, scope 3 often accounts for 70-90% of total emissions. However, measuring and reducing these emissions remains challenging.

UK businesses reporting under PPN 06/21 or preparing for mandatory climate disclosure requirements need supply chain data. When suppliers commit to formal target-setting processes, it signals improved data quality ahead. This matters for companies building carbon reduction strategies that depend on supplier cooperation.

Current performance shows significant emissions reduction

Greif established its current 2030 targets in 2022. These aim to reduce absolute scope 1 and scope 2 emissions by 28% against a 2019 baseline. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers emissions from purchased electricity, heat, or steam.

In fiscal year 2025, the company recorded notable progress. Scope 1 emissions reached 297,000 metric tons of CO2 equivalent. Scope 2 emissions totalled 259,000 metric tons CO2e. Together, these figures represent a 24.9% decline compared with the previous year.

This reduction exceeds the pace required to meet the 2030 target. It demonstrates that the company has implemented effective operational changes. Nevertheless, Greif plans to set more ambitious goals aligned with the latest climate science.

The company has pursued emissions reduction since 2007. Its latest commitment represents the next generation of climate goals. Moving from internally set targets to science-based ones signals a shift toward external validation and greater accountability.

Steel production drives scope 3 emissions profile

Greif’s sustainability report identifies steel as a primary contributor to scope 3 emissions. Steel production is carbon-intensive. The process typically involves blast furnaces powered by coking coal. Each ton of steel generates approximately 1.8 tons of CO2.

For a company manufacturing steel drums and containers, purchased steel represents a substantial emissions source. Unlike scope 1 and 2 emissions, which the company controls directly, scope 3 reduction requires supplier engagement. This makes target-setting more complex.

The company conducted a gap analysis during fiscal year 2025 to improve its scope 3 methodology. This analysis assessed data quality and identified opportunities to work with suppliers. Better data collection provides the foundation for credible reduction targets.

Engaging steel suppliers on emissions typically involves several approaches. Companies may prioritise suppliers with lower carbon intensity. They might support suppliers in adopting cleaner production methods. Alternatively, they could explore emerging low-carbon steel options, though these currently command premium prices.

For UK manufacturers using Greif products, these upstream improvements will eventually flow through to their own scope 3 calculations. When your suppliers reduce emissions, your reported supply chain footprint decreases accordingly.

What submitting targets to SBTi actually involves

Greif plans to submit its targets to SBTi for independent validation this year. The validation process is rigorous. SBTi assesses whether targets meet specific criteria for ambition and credibility.

Near-term targets must cover a minimum of five years and a maximum of ten years from submission. They must include scope 1 and 2 emissions. For most companies, they must also include scope 3 emissions if these exceed 40% of total emissions.

Long-term targets must reach net zero by no later than 2050. These targets follow SBTi’s Net-Zero Standard, which requires deep emissions cuts across all scopes. Residual emissions must be neutralised through carbon removal, not offsets.

Companies typically spend 6-18 months developing targets before submission. The process involves emissions modelling, decarbonisation pathway analysis, and internal approval. After submission, SBTi reviews the targets and either validates them or requests revisions.

Once validated, targets become public commitments. Companies must report progress annually. This transparency creates accountability to customers, investors, and other stakeholders. For businesses evaluating suppliers, SBTi validation provides assurance that climate commitments have external credibility.

Baseline changes reflect business transformation

Greif announced it will retire its 2019 baseline for SBTi purposes. This decision reflects how substantially the company has changed since 2019. Acquisitions, divestitures, or operational restructuring can make historical baselines less meaningful.

SBTi has specific rules about baseline adjustments. Companies must recalculate baselines when significant structural changes occur. This ensures targets remain comparable and ambitious. Simply changing a baseline to make targets easier to achieve is not permitted.

For UK businesses, understanding baseline methodology matters when evaluating supplier commitments. A company claiming significant emissions reductions should be able to explain its baseline. Changes to baselines require clear justification and proper recalculation.

Greif’s transparency about retiring its baseline, rather than quietly adjusting figures, demonstrates good practice. It signals that the company prioritises credibility over favourable optics. This approach builds trust with customers who rely on supplier emissions data.

Performance beyond emissions shows operational maturity

The company’s 2025 sustainability report includes additional environmental metrics. Greif diverted 88% of waste from landfill during the year. Furthermore, 155 facilities globally achieved zero waste to landfill status.

These figures indicate operational discipline. Waste reduction often correlates with cost savings and resource efficiency. For customers, it suggests reliable processes and attention to environmental management across multiple sites.

Greif’s land management subsidiary, Soterra, generated 59% of its revenue from nature-based solutions in 2024. These projects include carbon sequestration and renewable energy installations. While distinct from the core packaging business, they demonstrate corporate commitment to climate solutions.

UK businesses evaluating suppliers increasingly look beyond carbon reporting alone. Waste management, water use, and biodiversity impact all form part of broader ESG assessments. Companies with mature sustainability programmes across multiple metrics typically prove more reliable partners for long-term commitments.

What this means for businesses using industrial packaging

If your business purchases industrial packaging, your supplier’s emissions become part of your scope 3 footprint. Greif’s commitment to science-based targets will likely improve the quality of emissions data available to customers. Better data makes your own carbon accounting more accurate.

Many UK companies face pressure to report supply chain emissions. PPN 06/21 requires carbon reduction plans for central government suppliers. Forthcoming mandatory climate disclosure will extend reporting requirements to more businesses. Supplier engagement on emissions is no longer optional for many organisations.

When major suppliers commit to validated targets, it reduces your risk. You gain confidence that the supplier takes climate commitments seriously. You can reasonably expect continued improvement in their emissions intensity. This supports your own reduction trajectory.

However, supplier commitments alone do not eliminate your responsibility. You still need to collect primary data where possible. You must engage suppliers on emissions reduction. You should evaluate alternative suppliers or materials where significant emissions hotspots exist.

For businesses in manufacturing, chemicals, food processing, or pharmaceuticals, packaging represents a measurable emissions source. Understanding your suppliers’ climate strategies helps you build realistic reduction plans. It also informs procurement decisions and risk management.

Key details about Greif’s climate commitment

• Greif committed to the Science Based Targets initiative on 22 April 2026, alongside its 17th annual Sustainability Report.
• The company will develop near-term and long-term emissions targets aligned with the SBTi Net-Zero Standard for independent validation.
• For the first time, targets will include scope 3 emissions, which cover value chain impacts including steel production.
• Current 2030 targets aim for 28% reduction in scope 1 and 2 emissions against a 2019 baseline, with 24.9% already achieved in fiscal 2025.
• The company will retire its 2019 baseline for new targets due to substantial business changes since that year.
• Greif diverted 88% of waste from landfill in 2025, with 155 facilities achieving zero waste to landfill status globally.

Questions businesses should consider following supplier commitments

When a supplier announces science-based targets, it creates an opportunity to strengthen your own sustainability position. Start by requesting updated emissions data specific to the products you purchase. Ask when validated targets will become public and how progress will be reported.

Consider whether your procurement contracts include sustainability criteria. Many businesses now include emissions reduction clauses or require annual emissions reporting from suppliers. If you have not updated contract language recently, this is worth reviewing.

Evaluate whether you need support developing your own carbon reduction strategy. Our net-zero program helps UK businesses establish credible targets and build compliant carbon reduction plans. We work particularly with companies navigating PPN 06/21 requirements or preparing for mandatory climate disclosure.

Assess your current scope 3 data quality. If you rely on spend-based estimates rather than supplier-specific data, your footprint calculations likely overstate or understate actual emissions. Improving data quality should be a priority before setting your own reduction targets.

Think about how supplier improvements affect your overall strategy. If a major supplier commits to significant reductions, your scope 3 emissions may decline without additional action on your part. However, you should not rely entirely on supplier initiatives. Focus on areas where you have direct influence or can drive meaningful change.

For businesses pursuing sustainable procurement, supplier climate commitments provide useful evaluation criteria. They help differentiate between suppliers with credible strategies and those making vague sustainability claims. This becomes increasingly important as greenwashing concerns grow.

How SBTi validation affects supply chain credibility

The Science Based Targets initiative provides independent validation of corporate climate commitments. This matters because many companies announce targets without clear methodology or accountability. SBTi validation confirms that targets align with climate science and meet minimum ambition thresholds.

For UK businesses evaluating suppliers, SBTi commitment serves as a credibility signal. It indicates that the supplier has invested time and resources in rigorous target-setting. It demonstrates willingness to submit to external review. It creates public accountability for progress.

Nevertheless, SBTi commitment alone does not guarantee success. Companies must implement reduction initiatives and report progress honestly. Some organisations commit to SBTi but struggle with execution. Therefore, ongoing monitoring remains important.

You can verify a company’s SBTi status through the initiative’s online database. This shows whether targets have been committed, submitted, or validated. It also displays the specific targets once validation is complete. This transparency helps you assess supplier claims independently.

As more companies commit to science-based targets, the baseline expectation shifts. What seemed ambitious two years ago may now appear standard. For businesses managing supply chain risk, tracking these commitments helps you anticipate future expectations. It also helps you identify suppliers falling behind their peers.

Where to find authoritative climate target information

The Science Based Targets initiative website provides the most comprehensive information about the standard and validation process. You can search for companies by name to verify their commitment status and view validated targets.

For UK-specific climate policy and reporting requirements, the Department for Energy Security and Net Zero publishes guidance and updates. This includes information about mandatory climate disclosure requirements taking effect for large companies.

The PPN 06/21 guidance explains carbon reduction plan requirements for businesses supplying central government. These requirements have significant implications for supplier selection and contract awards.

For broader sustainability reporting frameworks, the Institute of Environmental Management and Assessment offers resources and training. IEMA provides professional development for sustainability practitioners and publishes guidance on environmental reporting standards.