Implementing green practices in packaging: hands-on strategies for businesses

Today, sustainability has gone from a corporate buzzword to a full-fledged business strategy, and we have consumers to thank for it. Surveys show that the general public cares about sustainability, and over 60% of consumers are ready to pay a premium for products with sustainable packaging. While the nudge may have come from them, going green also makes good business sense. For instance, minimally designed sustainable packaging can reduce virgin material usage, lower shipping costs, and enhance brand image.?

Whatever remaining scepticism we see towards sustainability is because of greenwashing that has happened in the past — when a business or product is marketed as more environmentally-conscious than it actually is. However, consumers are far more aware now, and the only way to get them to trust your sustainability claims is by backing them up with verifiable data.?

In this article, I discuss the importance of sustainable packaging and share practical strategies to implement it in your business.?

The core principles of sustainable packaging

The packaging industry’s high dependence on fossil fuel-based materials and contribution to the global waste crisis has earned it a reputation for being not-so-sustainable. However, growing consumer pressure has made sustainability in packaging a key focus for most businesses. The concept is built on the following principles:

Three R’s: Reduce, Reuse, and Recycle are at the heart of every sustainable alternative. In packaging, it means using right-sized containers to lower waste and material usage. Sustainable packaging solutions also show high usability and are easy to disassemble and recycle for future use.?

Material Selection: Not all packaging labelled ‘biodegradable’ is sustainable. I find it a bit vague, to be honest. Even plastic breaks down, eventually leaving behind toxic residue. Therefore, it’s important to do a lifecycle analysis (LCA) of packaging materials to assess their end-to-end impact, from raw material extraction to end-of-life disposal and waste management.?

Waste Minimisation: Australians generate close to 1.9 million tonnes of packaging waste annually - enough to cover Melbourne Cricket Ground several times over. It takes an enormous amount of virgin raw materials, energy, and water to produce plastic packaging, and most of it ends up polluting landfills and waterways.?

Sustainable packaging, on the other hand, poses no health risks. It breaks down in nature gently or can be recovered for closed-loop industrial cycles. This packaging is typically made using clean energy technologies and is designed to optimise material usage and costs.?

Minimalist Design: I remember reading an interview where Hanko Kiessner, CEO of Packsize, mentioned an average box is about 40% too big for its contents. That’s quite wasteful! Thankfully, this is not the case with sustainable packaging, as it is centred on a minimalist design philosophy. This approach focuses on lowering material usage right from the start. Unlike bulky styrofoam, sustainable alternatives are compact, simple to assemble, and easy to stack. This makes them cost-effective and energy-efficient to manufacture and transport.?

Practical strategies for implementing green practices

Compare different materials

It’s a good idea to rope in certified LCA professionals to determine the cradle-to-grave impact of the packaging option you have in mind. Among other things, LCA allows you to compare CO2 emissions of different packaging choices, considering the business model remains the same. Third-party certifications are also reliable indicators of sustainability, such as the Forest Stewardship Council (FSC) for packaging materials sourced from responsibly managed forests.?

Choose compatible solutions?

Sustainable packaging doesn’t have to be boring. Technological innovation has made it possible to transform earth-friendly materials into packaging that rivals traditional polystyrene in performance as well as consumer experience. Packaging alternatives range from plant-based packaging to edible packaging to bio-based packaging. Order samples and do stress test runs to figure out which is best for your business. Consider the fit, weight, unboxing, durability, and overall protection during the shipping journey to arrive at a solution that’s compatible with your business needs.

Design out waste

It’s easier to prevent waste from being created instead of having to deal with it later. Upstream innovation involves rethinking packaging, product design, business models, and supply chains to cut out waste at the onset. Examples of upstream innovation include incorporating modular packaging designs where components can be disassembled easily for recycling.

Optimise supply chain through collaboration

Streamlining supply chains can make a massive difference in your environmental impact. Dell made headlines when it led a cross-industry collaboration with companies and suppliers to create the world’s first-ever supply chain for responsible ocean-bound plastic. Since 2017, this network has successfully diverted over 2.27 billion plastic bottles from the oceans. The tech giant also swapped polyurethane foam with bamboo cushioning and compostable mushroom packaging.?

Of course, transforming supply chains is a tricky affair with the number of stakeholders involved. I recommend making small changes first before aiming for ambitious goals like cutting out plastics from your entire supply chain. You’ll be surprised how helpful forging alliances with like-minded suppliers can be in embedding sustainability in the supply chain. You can read more about sustainable packaging’s impact on the supply chain in my previous article.?

Starting ESG reporting and becoming B-Corp Certified

ESG is a comprehensive framework that measures a business’s environmental, social, and governance attributes. It tells you a company’s commitment to minimising environmental and societal harm and improving robustness and transparency in governance. ESG has become the buzzword across boardrooms, and for good reason. According to a McKinsey report, products with ESG-related claims have reported a faster average growth of 28% vs. 20% for products without claims.?

Sustainable packaging can boost ESG performance in more ways than one, such as reducing waste and emissions, promoting positive social practices, and meeting international standards and local regulatory requirements. A surefire way to tell the world that you are a strong ESG performer and committed to a sustainable future is to become B Corp certified.

What do Aesop, Patagonia, and R.M Williams have in common? They’re all Certified B corporations. The certification is granted by B Lab, a nonprofit, after evaluating a company’s social and environmental impact. Only those exhibiting high social and environmental performance, public transparency, and legal accountability make the cut.?

Overcoming challenges in green packaging implementation

Balancing cost with sustainability

Comparing the upfront costs of sustainable packaging materials with single-use plastics might mislead you into thinking it’s expensive. Sustainable packaging also means it’s right-sized and designed to improve transport efficiency and lower shipping costs. So, when you’re evaluating options, take into account transport costs and the increase in sales that sustainable packaging can generate by attracting eco-conscious consumers.?

Navigating regulatory requirements

Governments are stepping up their efforts to tackle the plastic waste crisis by bringing in stricter regulations. Everything from packaging’s size and composition to its recovery and disposal will be under the scanner. Reach out to experts who can help you stay on top of global and regional regulatory changes and ensure compliance. Certifications and labels (more on this below) that back up your sustainability efforts can be of huge help here.

Tackling consumer scepticism

Buying green is important to 8 out of 10 consumers. However, greenwashing has made them sceptical about a brand’s sustainability claims. Third-party certifications such as Global Recycling Standard, OK Compost, and Cradle to Cradle Certified ? are necessary to build consumer trust and loyalty. While supply chain certifications validate claims related to source materials and labour practices, end-of-life certifications establish whether a packaging is recyclable, compostable, or headed to landfill.

Measuring and reporting sustainability impact

To achieve net zero emissions in packaging by 2050, Nestlé has been closely tracking and reporting metrics such as packaging made from recycled or renewable materials, virgin plastic reduction, total packaging weight, and packaging designed for recycling. Today, 86.8% of the FMCG giant’s packaging is recyclable or reusable. It has also managed to bring down virgin plastics use by 8.1% since 2018.

The sad reality is that less than 30% of companies have well-defined sustainability metrics. Having clear indicators in place is crucial to establishing a baseline, setting realistic targets, evaluating performance, and increasing transparency and accountability across the value chain.?

Conclusion

A society-wide shift towards greener practices has sparked innovation in an industry as fossil-fuel-dependent as packaging. We’re seeing high-performance packaging made from imaginative materials such as waste wool, fruit skins, and seaweed make their way into the market. These innovative packaging solutions in the era of AI offer a never-before opportunity for businesses to slash emissions, boost resource efficiency, and win consumer trust.