O-I Glass, Inc. (OI) — ESG & Values Scores

Environment story

O-I Glass faces significant environmental challenges. The company disclosed Scope 1&2 emissions compliance costs (EU ETS €28M, Americas carbon pricing ~$5M in 2025) but does not disclose absolute Scope 1, 2, or 3 emissions figures in the filing. A validated near-term emissions reduction target exists, but no specific net-zero year is disclosed. The company reported a $7M favorable adjustment to carbon emission accruals in Europe due to lower production (suggesting offset-dependent accounting rather than operational decarbonization). Legacy environmental liability of $16.5M was paid for Cuyahoga River site remediation. The company acknowledges material exposure to climate-change physical risks (severe weather, flooding, wildfires) across 64 facilities in 18 countries, with documented $38M impact in 2021 from Texas ice storm. Capital expenditures for environmental improvements are described as not material to operations. Greenwashing risk detected: emissions reductions appear tied to production curtailments and carbon offsets (accrual adjustments) rather than fundamental process decarbonization or renewable energy transition. Scope 3 supply-chain emissions are not disclosed.

Criticisms on file

Legacy Environmental Liability - Cuyahoga River Paper Mill Site. Company owned/operated mill 1956-1967 on shore of Cuyahoga River, now part of Cuyahoga Valley National Park. U.S. government claimed $50M remediation cost. Company settled in Q3 2025 with $16.5M payment to resolve soil contamination and future remediation.
Source: OI 10-K 2025, Item 7 MD&A, 'Legacy Environmental Charges' section; Note 15 to Consolidated Financial Statements.
Undisclosed Scope 1, 2, and 3 Emissions. 10-K does not report absolute GHG emissions in tons CO2e or intensity metrics. Carbon compliance costs are disclosed but not underlying emission volumes.
Source: OI 10-K 2025, Item 7 MD&A, 'Operational and Financial Impacts due to Environmental Issues' section.
Climate Change Physical Risk Exposure. Company operates 64 manufacturing facilities across 18 countries with acknowledged vulnerability to severe weather, flooding, wildfires, and extreme temperatures. February 2021 Texas ice storm caused ~$38M segment operating profit impact.
Source: OI 10-K 2025, Item 7 MD&A, 'Physical Effects and other Consequences of Climate Change' section.
Carbon Emissions Accrual Adjustments Tied to Production Curtailment. Europe segment recorded $7M favorable adjustment to carbon emission accruals due to lower production levels, suggesting emissions reductions driven by capacity reduction rather than process innovation.
Source: OI 10-K 2025, Item 7 MD&A, 'Europe' subsection under 'Results of Operations.'

Disclosed initiatives

Fit to Win Cost Reduction Initiative

Multi-year program targeting ~$750M cumulative benefits through 2027 (baseline 2024). $240M benefits in 2025 and $275M expected in 2026. Includes plant closures, furnace eliminations, and SG&A reductions across Americas and Europe.

Operational cost savings, but limited direct environmental benefit; production curtailments cited as driver of carbon accrual adjustments.
Validated Near-Term Emissions Reduction Target

Company states it has a 'near-term emissions reduction target validated by third parties' aligned with carbon-reduction scenarios. Specific targets and timelines not disclosed in 10-K.

Insufficient disclosure; target year and reduction percentage unknown.
EU Emissions Trading Scheme Compliance

€28M in 2025 for ETS allowance purchases; Americas cap-and-trade compliance (~$5M). Indicates operational emissions management within regulatory framework.

Regulatory compliance cost; not evidence of voluntary decarbonization.

Social story

O-I Glass provides limited social metrics in the 10-K filing. No CEO-to-worker pay ratio, workforce turnover, or diversity percentages are disclosed. The company references 'elimination of a number of selling, general and administrative positions' and plant closures as part of Fit to Win restructuring (total $646M in cumulative restructuring charges through 2025, with ~$50M additional expected in 2026). No documented union-suppression activities or major recent strikes are mentioned. Diversity in executive/board leadership is not quantified. Supply-chain labor practices and human-rights audits are not discussed. The filing does not address labor relations, DEI programs, or worker welfare initiatives, limiting assessment to available factual data.

Criticisms on file

Undisclosed Diversity and Workforce Metrics. 10-K does not provide CEO-to-median-worker pay ratio, workforce gender/race composition, executive leadership diversity percentages, or turnover rates.
Source: OI 10-K 2025; standard DEI disclosures absent from filing.
Large-Scale Workforce Reduction via Fit to Win. Company finalized plans for permanent closure of multiple plants/furnaces and elimination of numerous SG&A positions across Americas and Europe. Additional restructuring expected in 2026.
Source: OI 10-K 2025, Item 7 MD&A, 'Restructuring, Asset Impairment and Other Charges' and segment results sections.

Disclosed initiatives

Fit to Win Restructuring Program

Multi-year restructuring initiative including permanent plant closures, furnace eliminations, and SG&A headcount reductions in Americas and Europe. Cumulative charges of $646M through 2025; ~$50M additional expected in 2026. Severance and benefit-related costs are primary component.

Material workforce reduction across two largest operating segments; potential negative social impact through job losses.

Governance story

O-I Glass operates with single-class share structure and does not disclose board independence percentage or detailed governance composition in the 10-K. Lobbying spend is not separately quantified in the filing. The company faces material debt burden ($4.9B in debt repayments due over next five years) and has undertaken significant refinancing activity in 2025 (new $2.7B syndicated credit facility). A goodwill impairment charge of $445M was recorded in Q4 2023 for the North America reporting unit; goodwill remains at $1.49B as of Dec 31, 2025, with Europe and Latin America units at continued risk of future impairment. The company recorded $443M in restructuring charges in 2025 and disclosed compliance with all covenants under its Credit Agreement as of year-end. No active shareholder litigation or antitrust proceedings are mentioned, but legacy environmental disputes and tax position uncertainties exist. Governance disclosures are limited.

Criticisms on file

Material Debt Burden and Refinancing Risk. Company has $4.9B in debt repayments due over next five years (ranging $66M-$1.086B annually), with additional ~$1.118B interest payments projected. Refinancing completed Sept 2025; springing maturity provisions tied to senior note maturities create accelerated paydown risk.
Source: OI 10-K 2025, Item 7 MD&A, 'Capital Resources and Liquidity' and 'Material Cash Requirements' sections; Note 14.
Goodwill Impairment History and Future Risk. North America reporting unit goodwill fully impaired in Q4 2023 ($445M charge) due to declining cash flow projections and higher cost of capital. Europe and Latin America reporting units retain $1.487B goodwill, with narrow margins in impairment testing; future economic downturns could trigger material charges.
Source: OI 10-K 2025, Item 7 MD&A, 'Impairment of Long-Lived Assets' section; Note 4 to Consolidated Financial Statements.
Tax Uncertainties and Valuation Allowances. Company has recorded valuation allowances against substantially all net deferred tax assets in the United States due to cumulative losses in recent years and lack of sustainable earnings. Company is contesting certain tax assessments exceeding established reserves; actual settlement could materially impact results.
Source: OI 10-K 2025, Item 7 MD&A, 'Income Taxes' section under 'Critical Accounting Estimates.'
Cuyahoga River Legacy Litigation. Company was defendant in U.S. District Court, Northern District of Ohio, with U.S. government claiming $50M remediation cost for paper mill site contamination. Tentative settlement reached Q1 2025; consent order approved Q3 2025; $16.5M paid.
Source: OI 10-K 2025, Item 7 MD&A, 'Legacy Environmental Charges' section; Note 15.

Disclosed initiatives

Credit Agreement Refinancing

September 2025 refinancing of syndicated credit facility. $2.7B total commitments: $1.25B multicurrency revolving facility, $800M Term Loan A (5-year maturity Sept 2030), $650M Term Loan B (7-year maturity Sept 2032). Weighted average interest rate 5.66%. Secured Leverage Ratio covenant of 2.50x maximum.

Refinanced debt obligation with extended maturities; company in compliance with all covenants as of Dec 31, 2025.
Goodwill Impairment Monitoring

Annual impairment testing conducted as of October 1. North America reporting unit goodwill fully impaired ($445M charge in Q4 2023). Europe ($897M goodwill) and Latin America ($590M goodwill) remain on balance sheet as of Dec 31, 2025. Europe goodwill exceeded fair value by ~21% margin in Oct 2025 test.

Goodwill remains material at 16% of total assets; susceptible to future impairment charges if cash flow projections decline.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of O-I Glass, Inc.. 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 O-I Glass, Inc. in the app for interactive charts and portfolio building.

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