Sustainable Packaging A Sustainable Business Approach

Titilope Omidiran (PhD), Global Environmental Social and Governance manager, Hunter Amenities International Ltd

Through this article, Titilope Omidiran emphasizes the importance of businesses adopting sustainable packaging as a critical component of their overall environmental and social responsibility.

The general idea of acting responsibly to nature and society has been around for several decades. In more recent times employees, customers and investors expect businesses to take responsibility for the environmental and social practices within their value chain. One of the most important factors will be the packaging used particularly for non-service businesses.

Sustainable packaging has become an expectation or a standard practice to show alignment with sustainability.

Emission reductions are reflected by the environmental impact of not only the products but also the packaging used. Companies must act to impact global sustainability. Adopting sustainable packaging helps small and medium organizations to compete better as it drives them to innovate great ideas. It also opens opportunities to establish new market trends or business opportunities.

Environmental, social and governance issues around the production, procurement and use of sustainable packaging materials have a significant impact on the overall sustainability of a business.

Specific sustainability topics that apply to packaging

• Use of natural resources such as energy, water, materials and land

• Waste output from operations during the production of packaging

• Emissions from storage and transportation of packaging

• Social impacts of packaging production value chain including employee working conditions, child labor, health and safety of employees and forced labor practices prevention.

• Ethical issues regarding information security, corruption, anticompetitive practices prevention

Adopting sustainable packaging helps small and medium organizations to compete better as it drives them to innovate great ideas. It also opens opportunities to establish new market trends or business opportunities

An estimated 80% of a product’s environmental impact is determined at the design stage. A sustainability mindset inculcating the relevant topics will ensure that the end of life is considered from the beginning. This ensures that a more proactive than reactive approach is utilized to mitigate against the risks of unsustainable packaging.

A circular economy is a closed-loop system designed to keep resources and materials in use for as long as possible. Executing this requires the collaboration of suppliers down the package’s life cycle. Discussions between packaging suppliers, producers, retailers and the consumer who disposes of the packaging should be ongoing until a best-case scenario is accomplished.

Retailers have considerable influence over producers and are a vital link in delivering products to consumers. Retailers and producers need to work together to innovate on product packaging and reuse.

Sustainable packaging is therefore not a standalone issue but should be explored holistically across and top down the value chain.

Packaging carbon footprint helps businesses to assess the carbon footprint of a packaging solution and not just the product. This helps in assessing and comparing the packaging solution with other options in a consistent manner. Including this during the product design stage ensures a more sustainable packaging solution is selected for a product.

Companies that calculate their carbon footprint are better equipped to manage their carbon emissions responsibly thereby enhancing their brand value and making themselves more attractive to potential customers and investors. They can also use the information to manage long-term business risks.

Communicating sustainable packaging choices is a vital step for businesses to show resilience and climate action. Communication should be both internal and external (Business to Business, Business to Consumer).

Internal to drive a culture of change and sustainable thinking for a product life cycle which includes packaging solutions. This ensures that inefficiencies are identified, and processes are optimized. Communication can help stimulate changes to the business model and procurement process. External communication ensures that your suppliers also begin to have a similar thought process.

A supplier reducing its carbon footprint translates into the reduction of the parent company’s carbon footprint.

External communication with a customer puts credible information in the hands of consumers and helps provide them with the knowledge they need to reduce their impact on climate change. Overall benefits of sustainable packaging lead to product differentiation and enhanced brand reputation which translates to increased sales.