We are witnessing the start of a fundamental shift: from top-down ambition to bottom-up execution; from abstract commitments to clearly defined targets; and from viewing sustainability solely as a moral responsibility to recognizing it as a strategic business imperative.

At Avery Dennison, our approach to sustainability is anchored in three core dimensions: fulfilling regulatory and reporting expectations, executing environmental strategies that meaningfully reduce impact, and — most importantly — creating value for our customers, stakeholders, and the communities in which we operate. This work extends far beyond regulatory compliance. It is about building long-term value and resilience by helping to solve some of our industry’s greatest challenges and sustaining business relevance in a rapidly changing world.

Today, leading companies are embedding sustainability more deeply into their core operations — not simply in response to regulation, but because markets, stakeholders, and employees increasingly demand it. This is the moment where strategic ambition must be translated into tangible action. That includes aligning sustainability with profitability, strengthening procurement capabilities, empowering commercial leadership, and introducing new models that clearly articulate the ROI of sustainability efforts. Because sustainability is about business. And it is about enabling a better tomorrow.

Among the most persistent challenges is the dimension of change management: greater education, governance clarity, and the shift from reactive compliance to proactive leadership. These obstacles shape the pace and depth of progress.

Yet, despite these challenges, progress is evident. Some businesses are moving beyond siloed initiatives and embedding sustainability throughout their organizations. Stakeholder engagement is becoming more intentional and meaningful. Our understanding of value is expanding — beyond emissions to include innovations that solve industry challenges, resilience, reputation, and long-term impact.

This evolution is rarely linear. But with clarity, commitment, and a willingness to rethink what is possible, the path forward is not only navigable — it is already underway.

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