Avery Dennison Corporation (AVY) — ESG & Values Scores

Environment story

Avery Dennison has achieved a 60% absolute cumulative reduction in GHG emissions from its 2015 baseline, exceeding its 2025 goal of 26%. However, a net-zero target year is not explicitly disclosed in source materials, triggering a 15-point deduction. Scope 3 emissions reduction strategy is referenced but specifics on rising/falling trajectory are not quantified. The company has made substantial investments in sustainability-driven products and circular economy platforms, but reliance on offsets vs. operational cuts is not transparent. No major resource controversy controversies identified in filings, though extensive operations across 50+ countries present supply-chain risk exposure.

Criticisms on file

No explicit net-zero target year disclosed; target year after 2045 default penalty applies
Source: AVY_10k.txt Risk Factors and MD&A; 2030 goals stated but ultimate net-zero deadline not identified

Disclosed initiatives

2030 Sustainability Goals

Aiming to reduce Scope 1 and 2 GHG emissions by 70% compared to 2015 baseline; working with supply chain to reduce Scope 3 emissions

Ambitious operational decarbonization target; Scope 3 engagement unclear in specificity
Sustainability-Driven Product Innovation

Substantial R&D investments in products that increase recycled content, reduce waste, extend life, and enable recycling; strategic innovation platforms for circular economy

Supports customer demand for sustainable alternatives; market-dependent success risk acknowledged
TCFD Alignment

Company preliminarily aligned reporting with Financial Stability Board's Task Force on Climate-related Financial Disclosures recommendations

Enhanced transparency and stakeholder assessment of climate risk

Social story

Avery Dennison reports no documented CEO-to-median-worker pay ratio exceeding 200:1 threshold; CEO pay ratio not disclosed in proxy. Leadership diversity target of 30% not explicitly stated; proxy discloses commitment to DEI programs and pay equity reviews but does not report current diversity percentages for executive/board leadership. No active union suppression documented; company acknowledges non-U.S. collective labor arrangements and potential work stoppages as risk. Supply-chain human-rights audits referenced in general risk disclosure but no specific findings or mitigated hazards itemized. Employee engagement survey conducted; pay equity analysis expanded to include recent acquisitions.

Criticisms on file

CEO-to-median-worker pay ratio not disclosed in proxy statement; unable to verify compliance with 200:1 threshold
Source: AVY_proxy.txt Compensation Discussion and Analysis; CEO Pay Ratio section does not contain explicit ratio

Disclosed initiatives

Pay Equity Assessment

Annual evaluation of pay equity with merit-based adjustments; expanded analysis population to include recent acquisitions in 2025; process, training and technology advancements to guide market-competitive pay decisions

Aimed at ensuring fair, consistent and transparent pay practices; no quantified pay gap remediation disclosed
Diversity, Equity and Inclusion Programs

Commitment to DEI programs; enterprise competency model embedded in talent processes (hiring, promotion, development, reward); leadership skills framework aligns with company values

Structured approach to fairness and consistency in talent management; no quantified diversity targets or current representation disclosed
Employee Engagement Survey

Annual survey to assess engagement and identify opportunities for career advancement, development, and confidence in business strategy; anonymized results shared with teams for action planning

Identifies improvement priorities at business and functional levels; demonstrates commitment to feedback mechanisms

Governance story

Avery Dennison maintains a board with strong independence profile; 10 directors with no dual-class share structure identified. Board leadership structure includes separate Chairman (non-executive/non-employee), Lead Independent Director, and CEO. No antitrust, privacy fines, or SEC consent decrees disclosed in 2025 10-K risk factors or proxy. Company engaged in shareholder activism defense (Adasa patent litigation settled in 2024; no indication of lawsuit filed by AVY to block climate shareholder proposals). Lobbying expenditures not quantified in source documents; company discloses TCFD alignment and sustainability reporting compliance but does not detail lobbying targeting environmental deregulation. Risk disclosures address evolving regulatory compliance costs but do not identify active deregulation-focused advocacy.

Criticisms on file

Lobbying expenditures not quantified in proxy or 10-K; no disclosure of advocacy positions on environmental deregulation or climate policy
Source: AVY_10k.txt and AVY_proxy.txt; lobbying transparency disclosure absent

Disclosed initiatives

Board Refreshment and Succession Planning

Recent director departures and appointments with focus on skills, qualifications, industry and functional experience balance; refined Board matrix; successful CEO transition planning

Demonstrates governance discipline and proactive board management; strengthens leadership continuity
Stockholder Engagement Program

Semiannual engagement with top 35 institutional investors by CEO, CFO, business leaders, Lead Independent Director and Investor Relations; feedback on strategies, governance, executive compensation, sustainability

Builds investor confidence; incorporates evolving stakeholder expectations into governance practices
Risk Oversight Framework

Board and committees oversee operational, financial, reputational, sustainability, and cybersecurity risks; committee-specific risk portfolios assigned (e.g., Audit Committee on financial/compliance, Governance Committee on ESG)

Structured risk governance supports proactive management of identified material risks

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Avery Dennison Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Avery Dennison Corporation in the app for interactive charts and portfolio building.

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