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ESG case studies

Sustainability in every label, integrity in every action

More: Prime_Label_Case_Study_29112024.pdf

Company
Prime Label
PE/VC investor
Innova Capital
Investment period
2019 - in portfolio
Prime Label - logo

679

FTEs

37

of women in the team

100

employees trained on Code of Conduct

47

suppliers signed the Supplier Code of Conduct

13

gender pay gap

Prime Label was established in 2019 through the merger of two Polish companies, Embe Press (May 2019) and Chemes (July 2019). The Group subsequently expanded its operations by acquiring LabelProfi in Slovenia (December 2020) and LabelPrint in Estonia (August 2021), solidifying its presence in the Central and Eastern European (CEE) region.

The company focuses on serving resilient end markets, including food, beverage, pharmacy, household products, health and beauty, and logistics. Prime Label provides a comprehensive range of label solutions, including pressure-sensitive labels (PSLs), wrap-around labels, and shrink sleeves, utilizing flexographic and digital printing technologies.

Prime Label holds a leading market position in the CEE region and has established strong, long-term relationships with a diverse customer base, including blue-chip and mid-sized companies. This, combined with continuous improvement initiatives and procurement efficiencies, has enabled the company to maintain above-average EBITDA margins compared to industry peers.

Over the past five years, Prime Label has achieved a revenue compound annual growth rate (CAGR) of over 25%, surpassing industry growth rates. The company attributes this performance to organic growth, operational efficiencies, and the benefits of economies of scale.

Prime Label has implemented a one-stop-shop approach, offering a wide range of label types produced with various printing technologies. Operational improvements have included waste reduction efforts, achieving a reduction in overall waste levels by 1 percentage point annually. The company also tracks and reduces hazardous waste.

Sustainability is a key focus for Prime Label, with initiatives such as CO2 level monitoring and energy efficiency measures implemented across its facilities. Solar energy systems have been installed at three locations to support these goals.

Today, Prime Label is a leading player in the label industry, recognized for its strong market position, consistent growth, and commitment to sustainable operations.

ESG Strategy:
Main objectives

In 2024, Innova Capital developed its ESG Strategy under the tagline "Beyond Profit".

Three pillars of the new ESG strategy "Beyond Profit", based on materiality assessment, reflect Innova Capital’s focus on sustainable growth, environmental resilience and fair and equal business practices. Within each pillar Innova defined and overarching ambitions and goals for Innova Capital, translated into concrete actions for portfolio companies. “Beyond Proft” goals and framework have driven the Prime Label Group to constitute holistic ESG transformation program – a natural continuation of Prime Label efforts towards a sustainable future.

Prime Label is the first Innova company to finalize the double materiality analysis and to translate it into a comprehensive ESG program.

Sustainability in Labels:
A Realistic Goal

The label industry is undergoing a transformation to align with global sustainability goals, proving that sustainable labels are not just possible but increasingly achievable. By adopting innovative technologies and practices, label manufacturers are reducing their environmental impact without compromising functionality or quality.

Prime Label Group actively implements the 3R philosophy: Reduce, Reuse, Recycle. This approach prioritizes minimizing waste by reducing resource consumption, repurposing materials when possible, and recycling to extend material life. These principles guide the Group’s operations and product development, emphasizing alignment with circular economy objectives.

The Group integrates eco-design principles into its product portfolio to address the increasing demand for sustainable packaging solutions. One example is the development of self-adhesive labels for wet wipes that reduce raw material usage by lowering packaging thickness and eliminating the need for laminated, multi-layer structures.

Ongoing initiatives also focus on reducing material thickness for wrap-around labels while ensuring full recyclability by using mono-material designs. Similar efforts are applied to shrink sleeves, where the Group is working to reduce material usage, decrease reliance on PVC, and introduce perforations to improve the recyclability of packaging.

Beyond profit

/ bi'jand 'praf.lt / adverb, noun

- an ambition embraced by Innova, rooted in the idea that truly strong and sustainable businesses need not only to generate economic value but also to contribute meaningfully to positive social and environmental outcomes. Not to comply, but to lead by example. Not "oh, and we also ... " but "what, and how, we do every day". This integrated approach drives how our companies are selected. How our relation ships with founders are built. How we strive to change the businesses and industries we invest in - not just by pursuing excellence, growth and consolidation, but also by carrying the torch of positive change. By integrating environmental, social, and governance (ESG) values into the investment decision-making and value creation choices, lnnova aims to drive its portfolio to do well, while doing good. To achieve premium returns by looking - and going - beyond profit.

ESG Strategy: Implementation

Product offering and supply chain

Prime Label Group commits to ethical business practices to contribute positively to society and the environment. The Supplier Code of Ethics helps ensure that business strategies and operations are aligned with responsible practices throughout the value chain. The policy highlights the expectation for suppliers and business partners to adhere to these standards, fostering value for all stakeholders, including employees, partners, and communities.

The policy is aligned with the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. These principles focus on human rights, economic, social, and cultural  Values.

This policy applies to all business partners, suppliers, and service providers of Prime Label Group. Suppliers are responsible for ensuring their employees, sub-suppliers, and third parties comply with the standards of the Prime Label Code of Conduct, which includes communicating these expectations effectively.

Health & Safety

Product

  • Packaging materials supplied come into direct contact with products, including foodstuffs, emphasizing the importance of safety and adherence to stringent quality requirements.
  • Food safety is prioritized by adhering to good manufacturing practices, testing methods, and compliance with all relevant food safety regulations.
  • Products meet the highest standards, as evidenced by certification under the BRC Global Standard for Packaging Materials.
  • As a part of continuous development and improvement, products are subject to testing and evaluation by accredited laboratories.
  • The product specification incorporates advanced technology and functionality to protect consumer goods, ensuring their safety and hygiene while extending the life of the products.

People

  • Safety and health in the workplace are supported by providing appropriate working conditions and equipping workplaces with necessary protective equipment.
  • Continuous monitoring of all sites improves processes and working environments, supported by the implementation of the ISO 45001:2018 "Occupational Health and Safety Management System." This ensures risks associated with the printing industry are identified and assessed, creating an environment free from accidents and occupational illnesses.
  • Compliance with the ISO 9001:2015 quality management standard, ISO 14001:2015 environmental management standard, ISO 45001:2018 occupational health and safety management standard, and BRC Packaging standards ensures high operational standards.
  • Additional certifications include DPG (Deutsche Pfandsystem GmbH) and FSC Certification for responsible sourcing.
Governance

Prime Label promotes responsible business conduct, ensuring compliance with human rights, workers' rights, environmental standards, and anti-corruption principles throughout its operations and value chain. Collaboration with suppliers, distributors, and other partners is emphasized to support continuous improvement for society and the environment.

The company’s Code of Conduct is aligned with international frameworks, including the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work.

Decarbonization

In 2023, EmbePress became the first company within the Prime Label Group to develop a structured decarbonization strategy. This began with calculating greenhouse gas (GHG) emissions for 2022, using the internationally recognized GHG Protocol methodology to cover Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions).

The company has joined the Science Based Targets initiative (SBTi), committing to develop short-term, science-based targets for reducing emissions. The aim aligns with the global effort to limit warming to 1.5°C above pre-industrial levels. EmbePress is in the final stages of defining specific decarbonization targets, with the goal of reducing CO2 emissions by 50% within three years. Similar emission analyses and strategies will be carried out for other companies in the Prime Label Group over the coming months.

To support these efforts, EmbePress has already deployed onsite photovoltaic (PV) installations to power its production facilities, contributing to energy sustainability.

The company has also initiated product-specific carbon footprint calculations, starting with its "Foil Label" product. EmbePress plans to extend this analysis to additional products in 2025, including conducting Life Cycle Assessments (LCAs) to provide detailed environmental impact data. This positions EmbePress to lead in offering transparent carbon footprint information for all its products.

At the Group level, a Group Sustainability Manager role has been established to oversee Environmental, Social, and Governance (ESG) initiatives. This role has facilitated strategic workshops for the Management Boards of Prime Label Group companies, focusing on creating actionable plans and increasing understanding of ESG-related challenges and opportunities.

These initiatives reflect Prime Label Group’s structured approach to addressing climate change and integrating sustainable practices into its operations.

ESG Reporting:
ESG material topics according to ESRS and double materiality assessment

The company finalized a Double Materiality analysis. The ESG topics to be reported by the organization include climate change mitigation and product carbon footprint under E1, with E5 covering resource inflows, resource usage, waste, and resource outflows related to products and services. In the social category (S1), the focus is on working conditions, equal treatment, and opportunities for all, while S4 includes disclosures related to the protection of customer property. Under governance (G1), the topics include corporate culture and the management of relationships with suppliers.

ESG Strategy:
Future by 2026

1. Resilient Partnerships

We focus on building lasting partnerships based on ethics and transparency, ensuring that our business partners, especially suppliers, operate sustainably. This allows us to deliver high-quality products to our clients.

Goal

  • Implementing sustainable procurement practices for all suppliers
2. Satisfied Team

We strive to ensure that our team members feel supported and have opportunities for growth. The skills of our team are crucial in supporting our clients, and we work together to achieve this while maintaining a healthy work-life balance.

Goal

  • Measuring and Improving Employee NPS
3. Sustainable Labels

We aim to ensure sustainability in every label. To achieve this, we not only focus on using sustainable materials but also operate our production processes to minimize negative environmental impact.

Goal 

  • Reducing GHG emissions
  • Decreasing production waste
4. Circular Economy Advocate

Our goal is to expand our eco-label offering. We aim to be the partner of choice for our clients, helping them adapt their packaging to meet new regulatory and consumer challenges in the circular economy.

Goal

  • Offering portfolio with eco-friendly alternatives
  • All strategic B2B clients educated

Prime Label is introducing a wide scope of KPIs that will allow to monitor the ESG performance and track progress towards the ambitious ESG goals.

ESG related accomplishments

Prime Label was recently recognized for its efforts, receiving 2 Silver Medals in the Ecovadis assessment.

We want to accompany our customers in their transformation towards a closed-loop economy. For many of them, this is a huge challenge, often difficult to implement due to cost and technological limitations.

Our ambition and role is to be the first-choice partner on this path - thanks to the competence of our team, our access to raw materials that allow the labels to meet the highest standards in compliance with legal requirements, and the education we provide to our customers. 

We won't make these decisions for them, but we can be the best ambassador for the circular economy in the area of labels and printing.

Arkadiusz Sapiecha

CEO of Prime Label