Risk and Opportunities
Risk and Opportunities
Through Double Materiality Assessment, FPS links material topics to strategy by weighing both their impact and financial implications.
Risk and opportunities refer to sustainability-related matters arising from FPS’s operations and business relationships that may influence the company’s ability to create value over the short, medium, and long term. Risks represent potential adverse effects, such as regulatory developments, supply chain disruptions, or climate-related events, that could impact FPS’s financial performance, reputation, or operational continuity. Opportunities, by contrast, reflect potential benefits, including access to new markets, improved resource efficiency, enhanced brand value, innovation through circular solutions, and increased eligibility for sustainable or green financing.
As part of our Double Materiality Assessment, FPS identified material topics by assessing both their impacts on people and the environment and their potential financial implications for the company. This process enables us to systematically link sustainability-related impacts, risks, and opportunities to our strategic priorities and operational decision-making.
Risk Categories
To ensure consistency and comparability, identified risks are classified into the following categories, reflecting the nature of potential impacts on FPS:
Legal
Risks of financial or operational consequences arising from non-compliance with applicable laws, regulations, or contractual obligations, including litigation, fines, or regulatory sanctions.
Reputational
Risks of damage to FPS’s reputation, brand value, or stakeholder trust resulting from negative perceptions related to business practices, incidents, or associations.
Operational
Risks of disruptions or inefficiencies in day-to-day operations caused by internal failures, accidents, system breakdowns, supply chain interruptions, or inadequate processes.
Market
Risks of losing market share, customers, or competitive position due to changing market conditions, evolving customer expectations, or insufficient innovation and adaptability.
Strategic
Risks of failing to achieve long-term business or sustainability objectives due to ineffective strategic planning, delayed responses to external trends, or misalignment with regulatory and stakeholder expectations.
Financial
Risks of direct or indirect financial losses arising from cost volatility, resource scarcity, misaligned investments, or unforeseen liabilities linked to ESG-related factors.
Risks
PRODUCT
Reputational damage due to high environmental footprint of products
Products with high environmental footprints such as limited recyclability, high virgin material content, or poor lifecycle performance may undermine FPS’s sustainability positioning, reduce customer confidence, and weaken brand credibility in ESG-sensitive markets.
Material Topics
Product Design and Lifecycle Management
Risk Category
Reputational Market
Time Horizon
Medium term (3-5 years)
PRODUCT
Loss of market share due to insufficient sustainable product offerings
As customer expectations increasingly favor low-impact, recyclable, reusable, or bio-based packaging solutions, failure to adapt the product portfolio may lead to loss of ESG-driven customers, reduced competitiveness, and declining investor interest.
Material Topics
Product Design and Lifecycle Management
Risk Category
Market Strategic
Time Horizon
Medium term (3-5 years)
PRODUCT
Limited access to sustainable and certified raw materials
Supply constraints, limited availability, or increased competition for certified, recycled, or low-carbon raw materials may disrupt FPS’s ability to meet circularity and recycled content targets, while increasing procurement costs and supply volatility.
Material Topics
Product Design and Lifecycle Management
Risk Category
Operational Financial
Time Horizon
Medium term (3-5 years)
PRODUCT
Technological and infrastructure limitations for circular solutions
Insufficient internal capabilities or external recycling and reconditioning infrastructure may constrain FPS’s ability to scale circular economy models, meet recycled content requirements, or deploy innovative low-impact solutions.
Material Topics
Product Design and Lifecycle Management
Risk Category
Operational Strategic
Time Horizon
Medium term (3-5 years)
PRODUCT
Product recalls due to quality or safety failures
Product quality or safety issues, particularly in regulated sectors such as food or pharmaceuticals, may trigger recalls, regulatory action, financial losses, and long-lasting reputational damage.
Material Topics
Product Quality and Safety
Risk Category
Reputational Financial
Time Horizon
Short term (< 3 years)
PRODUCT
Inability to comply with future product-related sustainability regulations
Delays in adapting products to evolving sustainability and circularity regulations may restrict market access, particularly in highly regulated regions such as the EU.
Material Topics
Sustainable Products and Circularity
Risk Category
Market Legal
Time Horizon
Medium term (3-5 years)
PRODUCT
Non-compliance with PPWR (Packaging and Packaging Waste Regulation)
Failure to meet PPWR requirements including recyclability, reuse, labeling, and recycled content obligations may result in fines, restricted market access, contractual risks, and reputational harm.
Material Topics
Sustainable Products and Circularity
Risk Category
Legal Market
Time Horizon
Medium term (3-5 years)
PEOPLE
Reputational exposure linked to human rights violations in the supply chain
Associations with labor rights violations, particularly in high-risk regions may trigger stakeholder backlash, negative media coverage, exclusion from customer supplier lists, and loss of business partnerships.
Material Topics
Human and Labor Rights
Risk Category
Legal Reputational
Time Horizon
Short term (< 3 years)
PEOPLE
Non-compliance with international labor standards and due diligence regulations
Inadequate human rights due diligence or failure to align with evolving international labor regulations may result in regulatory scrutiny, legal sanctions, contractual risks, and erosion of investor confidence.
Material Topics
Human and Labor Rights
Risk Category
Legal Reputational
Time Horizon
Medium term (3-5 years)
PEOPLE
Limited visibility into tier-2 and tier-3 supplier labor practices
Inadequate human rights due diligence or failure to align with evolving international labor regulations may result in regulatory scrutiny, legal sanctions, contractual risks, and erosion of investor confidence.
Material Topics
Human and Labor Rights
Risk Category
Operational
Time Horizon
Medium term (3-5 years)
PEOPLE
Legal and reputational consequences of non-compliance or serious incidents
Failure to comply with Occupational Health and Safety (OHS) standards, or the occurrence of severe workplace incidents, may result in legal penalties, reputational damage, and diminished stakeholder trust.
Material Topics
Occupational Health and Safety
Risk Category
Reputational Legal
Time Horizon
Short term (< 3 years)
PEOPLE
Operational disruption due to workplace accidents or unsafe conditions
Workplace accidents or hazardous environments may endanger employee well-being, increase absenteeism, reduce productivity, and cause production delays or shutdowns.
Material Topics
Occupational Health and Safety
Risk Category
Operational
Time Horizon
Short term (< 3 years)
PEOPLE
Loss of customers due to unmet expectations or inadequate engagement
Insufficient customer service, limited transparency, or weak responsiveness to evolving customer expectations may result in dissatisfaction, reduced loyalty, and loss of market share to more customer-centric competitors.
Material Topics
Customer Experience
Risk Category
Market Reputational
Time Horizon
Medium term (3-5 years)
PEOPLE
Misalignment with customers’ sustainability requirements
Failure to support customers on sustainability, regulatory compliance, or circularity expectations may weaken long-term partnerships.
Material Topics
Customer Experience
Risk Category
Strategic
Time Horizon
Medium term (3-5 years)
GOVERNANCE
Exposure to corruption, bribery, or unethical conduct within the supply chain
Ethical misconduct by suppliers or business partners such as bribery, fraud, or forced labor may lead to compliance breaches, reputational harm, regulatory penalties, and exclusion from ESG-driven markets.
Material Topics
Business Ethics, Transparency and Compliance
Risk Category
Legal Reputational
Time Horizon
Short term (< 3 years)
GOVERNANCE
Inadequate implementation of compliance controls across regions
Inconsistent application of compliance frameworks in different jurisdictions may increase exposure to regulatory violations and enforcement actions.
Material Topics
Business Ethics, Transparency and Compliance
Risk Category
Legal
Time Horizon
Medium term (3-5 years)
PLANET
Supply chain disruption driven by climate related events
Extreme weather events, resource scarcity, or climate-related disruptions may interrupt raw material sourcing and logistics, leading to production delays and increased operational costs.
Material Topics
Climate Action and Resilience
Risk Category
Operational Financial
Time Horizon
Long term (>5 years)
PLANET
Physical and transition climate risks
Transition risks from evolving climate regulations and physical risks such as flooding, heatwaves, or water stress may disrupt operations, increase compliance costs, and expose FPS to legal or reputational consequences.
Material Topics
Climate Action and Resilience
Risk Category
Legal Operational
Time Horizon
Medium term (3-5 years)
Opportunities
The time horizons indicate when the benefits of these opportunities are expected to materialize.
The following overview presents the key sustainability-related opportunities which reflect areas where FPS can create long-term value by leveraging innovation, responsible business practices, and strategic alignment with sustainability and regulatory expectations.
By addressing these opportunities across product design, operations, governance, and the value chain, FPS aims to strengthen its competitiveness, enhance operational efficiency, and support the transition toward a more circular, resilient, and low-impact packaging industry.
The time horizons indicate when the benefits of these opportunities are expected to materialize.
PRODUCT
Long-term operational cost savings through material reuse and recovery models
Implementing circular practices such as reconditioning and recycling reduces dependence on virgin raw materials, lowers long-term production costs, and improves overall resource efficiency.
Material Topics
Sustainable Products and Circularity
Time Horizon
Long term (>5 years)
PRODUCT
FPS-owned FIBC recycling facility as a strategic enabler
FPS’s dedicated recycling hub enables greater control over material circularity, improves traceability, and supports compliance with upcoming packaging waste regulations.
Material Topics
Sustainable Products and Circularity
Time Horizon
Medium term (3-5 years)
PEOPLE
Strengthened employer brand and responsible supply chain partnerships
Proactive human rights due diligence, fair labor practices, and supplier engagement enhance FPS’s reputation as a responsible business partner, support talent attraction and retention, and strengthen long-term relationships with customers.
Material Topics
Human and Labor Rights
Time Horizon
Medium term (3-5 years)
PEOPLE
Improved productivity and employee engagement through safe workplaces
Strong Occupational Health and Safety practices reduce incidents and absenteeism, improve employee well-being and morale, and contribute to higher operational efficiency and workforce stability.
Material Topics
Occupational Health and Safety
Time Horizon
Short term (< 3 years)
PEOPLE
Product and service innovation driven by customer feedback
Integrating customer insights into product development and service delivery enables FPS to respond to evolving market needs, enhance customer satisfaction and loyalty, and support sustainable business growth.
Material Topics
Customer Experience
Time Horizon
Medium term (3-5 years)
GOVERNANCE
Increased trust and access to ESG-driven markets through strong governance
Robust ethical standards, transparent reporting, and effective compliance systems reinforce stakeholder confidence, reduce regulatory exposure, and support access to ESG-focused customers, investors, and financing opportunities.
Material Topics
Business Ethics, Transparency and Compliance
Time Horizon
Medium term (3-5 years)
PLANET
Competitive advantage through climate-aligned products and SBTi alignment
FPS’s dedicated recycling hub strengthens control over material circularity, improves traceability, and supports compliance with evolving packaging waste and circular economy regulations.
Material Topics
Climate Action and Resilience
Time Horizon
Long term (>5 years)
LEGAL DISCLAIMER
This Sustainability Report, reflecting FPS’ current sustainability initiatives and targets, has been developed based on information available at the time of preparation and is provided for informational purposes only as of the date of publication. This report contains statements regarding current expectations, objectives, plans, and future developments related to sustainability matters. Such statements are based on information, assumptions, and circumstances existing at the time of publication and may change over time due to evolving conditions and circumstances beyond the control of FPS. While FPS aims to present accurate and up-to-date information, no representation or warranty, express or implied, is made regarding the completeness, accuracy, or reliability of the information contained herein. Certain figures and data may be subject to rounding or future revision. Unless expressly stated otherwise, nothing in this report shall constitute a legally binding obligation, representation, warranty, or commitment by FPS. This report should be read together with FPS’ policies and applicable legal and regulatory requirements.