Our Disaster Recovery/Business Continuity program, established in 2017 in our Global Industrial Packaging (GIP) business, manages risk and business continuity through inventory and production redundancy capabilities, facility risk assessments and proactive labor relations. The program outlines a 25-step process to identify customer orders that may be impacted if a disaster impacts one of our facilities, alternative products that meet customer specifications and facilities that are able to produce the products our customers have ordered. In 2021, we conducted 15 random mock disasters to ensure the process is well understood in the organization and can be implemented should a disaster occur. The program, and our associated Disaster Recovery Business Continuity policy, are reviewed annually. Colleagues from sales, customer service, operations, marketing and logistics administer the program in tandem with business unit leadership.

Greif’s global network of 244 locations allows us to manufacture identical products at multiple sites, giving us the flexibility to shift production based on inventory, customer needs or in the unlikely event a shutdown would occur. This capability is enabled by centralized inventory management and our robust Sales and Operations Planning process (S&OP), which allows for visibility into raw and finished good materials across our facilities. Each facility multi-sources raw materials, ensuring production will not be interrupted due to delays or shortages from a supplier.

Greif’s facilities undergo loss control engineering inspections by our property insurance company periodically. These inspections are conducted by engineers and focus on identifying risks to the facility, including those that may be caused by natural disasters, and ways to reduce and control those risks. We make capital investments in our facilities to mitigate the risks identified in these inspections. For example, Greif recently opened a new facility in Pennsylvania. During the site selection process, we evaluated the risk of flooding to ensure the new facility was not located in a flood zone. We also installed a custom designed sprinkler system to best protect the facility in the unfortunate event of a fire. In 2021, we switched to a risk-based allocation model for property insurance. The change allowed us to receive improved rates on coverage for sites that are better prepared for natural disaster-related risk. This insurance model acts as a catalyst to drive improvements over time.

In 2021, Greif faced many challenges related to the Texas winter storms. To prepare, we held multiple meetings and implemented our Crisis Management protocols ahead of the storm. We shut down the equipment and closed the plants to give our workforce time to make arrangements. We struggled with lack of power, broken water pipes, and a burst fire suppression system. We halted operations for several days to prioritize the safety of our colleagues and their families. We then ensured the safety and integrity of our facilities prior to our colleagues returning to work.

At the onset of the COVID-19 pandemic, we created global and regional pandemic task forces to ensure we safeguard the health of our colleagues and the continuity of supply and service to our valued customers. These task forces continue to meet regularly to ensure we can continue operations and maintain colleague safety. As an essential business, we were able to continue to operate at nearly all our production facilities in more than 40 countries. Our global portfolio demonstrated our ability to fulfill customer needs worldwide during challenging macroeconomic conditions. To continue delivering on our commitments to our customers, we leveraged our existing Natural Disaster Recovery Protocol. This Protocol requires that all products must be able to be co-produced at multiple facilities and that each facility must maintain an alternate supplier list for the top 35 materials used in the facility. These supplier lists are maintained to ensure continuity of supply and that Greif production can be maintained in the event a supplier is impacted by a natural disaster or other event.

We also consider the risk of labor disputes to business continuity. We manage collective bargaining agreements on a two-to-three-year timeline, not simply when a negotiation must occur. Our senior leadership actively builds relationships with union leadership and members in each plant. This proactive approach ensures positive labor relations and business continuity.