PANO^® and ArcelorMittal pioneer more sustainable closures for the food industry

PANO^® and ArcelorMittal have pioneered a reduced-carbon solution for twist-off closures with PANO^®’s BLUESEAL^® lug cap which supports decarbonisation within the value chain at ArcelorMittal. It has triggered intensive dialogue and positive collaboration with stakeholders and NGOs about carbon insetting and the challenges of communicating progress on carbon reductions across industry.

PANO^® is market leader in the production of PVC-free closures for glass containers in the food and retail industry. Its heritage goes all the way back to 1920, and the business now employs 130 people at its operations in Itzehoe, Germany. It has a production capacity of over 1 billion PVC-free closures per annum, across 80 variants, and has become a lead customer of ArcelorMittal for providing the XCarb^® steel certificate solution for PANO^®’s innovative BLUESEAL^® closures.

BLUESEAL^® is more than just a cap. It is characterized by its industry-first PVC-free seal made from PROVALIN^®, a safety-tested thermoplastic elastomer. PANO's PVC-free closures are easily recognizable by their distinctive blue color (BLUESEAL^®). The PROVALIN^® seal achieves the EU requirements for packaging in the food and retail industry, taking dangerous plasticisers out of the equation.

In addition to the BLUESEAL^® innovation PANO^® was determined to develop a reduced-carbon solution for its closures, that was in tune with the company's strong sustainability principles. In 2023 PANO^® started working with ArcelorMittal to develop a roadmap towards net-zero steel solutions, starting with XCarb^® steel certificates.

PANO^®’s BLUESEAL^® product offers an industry-first PVC-free seal and lower carbon steel from ArcelorMittal. Copyright PANO^®.

“Working with customer as PANO^® is rewarding in many aspects. Not only were we able to start the journey towards net-zero steel already with our XCarb^® steel certificate offer. We were also able to work together addressing the complexity of crisp, transparent and correct communication for this new product in the market,” explains Reiner Blaschek, CEO ArcelorMittal Europe Flat Products.

PANO^® has been determined from day one of the initiative to ensure that its offering promoting decarbonisation is understood and accepted by customers and stakeholders as a step in the right direction, and a bridge towards a net zero solution in due course. For PANO^® the main question was how the impact of the XCarb^® steel certificates could legitimately be used by PANO^®. What initially seemed straightforward turned into a deeper dialogue with its sustainability advisers, B.A.U.M. Consult GmbH, ArcelorMittal and a range of stakeholders and NGOs. With B.A.U.M. Consult GmbH's assistance a clear distinction has been made between offsetting and ArcelorMittal and PANO^®’s insetting approach, whereby carbon emissions are not balanced by external offset purchases but by CO₂ savings realised within the value chain by dedicated decarbonisation investments at ArcelorMittal plants.

Insetting rather than offsetting

“Carbon ‘insetting’ focuses on doing more good rather than doing less bad within one’s value chain” (World Economic Forum). Instead of ‘offsetting’ emissions through investing in projects outside their value chains, companies engaging in carbon insetting invest in reducing carbon emissions within their own value chains.

“The XCarb^® steel certificates are a key starting point,” says Thomas Stock, CEO of PANO^®. “Industry change in our sector needs collaboration between metal packaging companies and their customers, and the XCarb^® steel certificates provide a bridging solution on the path to decarbonisation. For us it was crucial to ensure transparent and proper use of XCarb^® steel certificates. This was particularly important because we see our sustainability efforts as a genuine commitment and want to be a reliable partner. Working with ArcelorMittal and B.A.U.M. Consult GmbH, we have now successfully established an acceptable way, recognised by important stakeholders, to use XCarb^® steel certificates that meets the regulatory standards of ESRS, the GHG protocol, SBTi alignment, and the still-to-be-implemented Green Claims Directive."

“Our close collaboration with PANO^® has shown the company's strong commitment to transparently addressing sustainability and decarbonisation within its supply chain” says Anja Aschenbrenner, Head of Climate Management in Companies, B.A.U.M. Consult GmbH. “We have worked intensively with PANO and Arcelor Mittal on the question of what is permissible in accordance with applicable standards and frameworks when using XCarb^® steel certificates and how they can be communicated transparently.

Since the XCarb^® steel certificates are actual emission savings at ArcelorMittal, i.e. in PANO^®'s own value chain, PANO^® can now actively promote the decarbonisation of its own value chain via the certificates. Communicated as a handprint, the focus is placed on the company's own effectiveness. The prerequisite is that the XCarb^® steel certificates, as a bridge solution on the way to physically decarbonised steel, meet the requirements for emission certificates, i.e. additional CO₂ savings are realised, and double counting is excluded.

We anticipate the close cooperation between PANO^® and ArcelorMittal helping to accelerate innovation for lower-carbon steel production.”

Thomas Stock (CEO of Pano^®) and Reiner Blaschek (CEO ArcelorMittal Europe – Flat Products): Together towards net zero steel with XCarb^® steel certificates as bridging solution. 

The whole approach involves transparent communications and engagement with customers and stakeholders that see the XCarb^® steel certificate based closures as a practical bridging solution towards physical net zero steel closures in the future. 

In February 2025 PANO^® and ArcelorMittal participated in a seminar, hosted by the BAUM e.V., the German network for sustainable business, with a wide range of like-minded companies across all sectors, to exchange insights and experience in handling and communication of insetting certificates - a building block on the path to decarbonisation. The seminar included the participation of Anja Aschenbrenner (B.A.U.M. Consult GmbH), Thomas Stock (PANO^®) and Sarah Snellinx (ArcelorMittal Europe). 

Yvonne Zwick, Chairwoman, BAUM e.V. commented: “The stakeholder dialogues with PANO^® and ArcelorMittal have been refreshing - refreshingly open, because both companies have dared to ask questions about the optimisation of industrial processes to which no one yet has a ready answer. And refreshingly honest, as the NGO representatives have given their sincere opinions. Together this has greatly helped to take the dialogue and practice constructively forward. I look forward to continuing the discussions about what can be communicated responsibly and accurately”.

Click here for link through to BAUM, PANO^® and ArcelorMittal seminar.

All of PANO^®’s work on BLUESEAL^® is just part of its wider corporate sustainability and carbon commitments, which include reducing Scope 1 and 2 emissions by 42% by 2030, and reducing Scope 1,2 and 3 emissions by at least 90% by 2050, compared to 2021 levels. Between 2021 and 2023 PANO^® has already achieved a saving of 1,000 tonnes of CO2 in its Scope 1 and 2 emissions, a 48% reduction, made possible by:

• Consolidating its locations and reducing transportation between sites
• Purchasing electricity from renewable sources
• Optimisation and redesign of the existing coating plant, and investment in a new one
• Thereby reducing natural gas consumption

More steps are in the pipeline, including the use of green hydrogen instead of natural gas in the coating oven drying process, reducing material usage (such as tinplate thickness, coatings, packaging), improved energy management, and shifting transport from road to rail.

“We are ready to exchange experiences across industries and would like to share our findings with you! Our knowledge can be used by metal packers as a guide/blueprint.” Thomas Stock, CEO PANO^®, Michael Janoscha, Sustainability Management PANO^®.