AVY
Avery Dennison Corporation (AVY) ESG Analysis Analysis (2026)
Environmental
AVY’s environmental profile is mid-pack versus diversified packaging peers because the business remains materials-intensive, while disclosed metrics here do not show a clear decarbonization edge.
The absence of R&D intensity in the provided data limits evidence of eco-design differentiation, leaving AVY less visibly advantaged than peers with stronger circularity and low-carbon innovation disclosure.
Packaging exposure creates ongoing waste, recycling, and regulatory scrutiny, but AVY’s profile appears manageable relative to peers because no major environmental controversy is indicated in the supplied information.
Compared with best-in-class peers, AVY lacks enough disclosed environmental operating signals to support a stronger score, even though the available data do not indicate a structurally weak position.
Social
AVY’s social positioning is broadly average versus peers because the provided data show limited labor or safety disclosure, reducing evidence of a differentiated workforce or community advantage.
Low stock-based compensation relative to revenue suggests restrained dilution, but it is only a weak proxy for social alignment and does not materially separate AVY from peers.
As a packaging supplier, AVY faces customer and regulatory expectations around product stewardship and responsible sourcing, yet the supplied metrics do not show a clear peer-leading social framework.
Overall, AVY appears neither socially advantaged nor impaired versus peers, with insufficient disclosed indicators to justify a stronger relative score.
Governance
AVY’s governance profile is relatively strong versus peers because leverage remains moderate, which typically supports financial discipline and reduces balance-sheet governance risk.
Net debt to EBITDA of 2.53x is manageable for a mature industrial company, and this is generally more conservative than more levered peers in the sector.
Low stock-based compensation at 0.27% of revenue suggests restrained equity dilution, which is a favorable governance signal relative to peers with heavier pay-related dilution.
The main limitation is that the provided data do not include board, audit, or controversy indicators, so the score reflects solid but not top-tier governance visibility.
Overall Score
AVY’s overall ESG positioning is moderate versus peers, with governance the clearest relative strength and environmental and social disclosure remaining only average.
Score Driver: Moderate Leverage And Restrained Dilution Support Governance, But Limited Evidence Of Environmental And Social Differentiation Caps The Overall Score.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
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