Sustainable packaging drives business growth: here’s how

Our oceans are choking with plastic. The world is burning. I care about it, and if you’re a purpose-driven business owner like me, you care too. How can we decarbonise supply chains and ignite climate action?? How can we grow our businesses in a way that leaves a legacy for future generations? How to meet ESG targets? In this article, I’d like to shed some light on the true business value of adopting sustainable packaging solutions and provide talking points to engage stakeholders that operate with a profit-over-planet mindset.

What is sustainable packaging?

There’s no shortage of sustainable solutions; take one look at the market and you’ll find everything from wool-based insulated cartons to mycelium-based packaging. For the purpose of this article, I’ll use the definition proposed by McKinsey & Company: packaging that eliminates leakage into the environment, reduces greenhouse gas (GHG) emissions, and embraces recyclability.?

The problem with traditional packaging

Looking through the lens of this definition, we see that current mainstream packaging is entirely unsustainable. Polystyrene, the most-used material in cold-chain transportation, has been polluting our oceans as far back as 1972. This, combined with the fact that it is made from non-renewable fossil fuels and is not kerbside recyclable, means it ticks all the boxes of an entirely unsustainable material.

While it is clear that these blatant assaults on the planet aren’t aligned with ESG initiatives, if we look closer, we also observe that they are not sustainable for business either. Speaking from personal experience of working many decades in cold-chain, polystyrene is frighteningly inefficient. It isn’t flat-packed, nor can it be moulded, meaning it occupies huge amounts of warehouse space and causes increased pellet movements and labour costs. In addition, its flammability results in high insurance expenses. Sustainable packaging, on the other hand, provides an alternative to these challenges and ultimately drives business growth.

Sustainable packaging reduces waste

Sustainable packaging solutions can help your business reduce waste in two ways: by eliminating the literal waste produced by plastic cartons at their end-of-life, and by reducing spoilage of valuable stock. Stakeholders in cold-chain transportation have the huge challenge of maintaining temperatures within a delicate range, a task that is both resource-intensive and expensive. Polystyrene - with its lightweight and thermal properties - comes in as an easy solution, and since 1954 it has dominated supply chains. However, polystyrene is one of the dirtiest polluters of our oceans; it's non-biodegradable and often breaks into microbeads that are then ingested by marine life.? In addition to taking thousands of years to decompose, it is inefficient; as the World Health Organization reports, 50% of vaccines are wasted each year largely due to cold-chain management problems.

In contrast, circular solutions like Planet Protector Packaging’s wool-insulated packaging help businesses cut down on their losses while sparing our oceans from this insidious plastic. WOOLPACK outperforms polystyrene; it has been scientifically proven to maintain 2°C - 8°C from 24 hours to 72+ hours. As such, we regularly help companies in the pharmaceutical and food industries cut down on waste and achieve ESG targets. One of our clients' remarkable success stories illustrates how sustainable packaging can drive significant business growth. My Food Bag is a New-Zealand-based meal kit and ready-made meal delivery business, and Plant Protector Packaging’s WOOLPACK helped them overcome temperature-control challenges in transport and scale into parts of New Zealand that were previously unattainable due to the necessary cold chain. My Food Bag was able to cut down on spoilage, expand geographically, and deliver to more customers. Furthermore, since wool is compostable, My Food Bag was able to reduce its plastic waste. Richard Wafer, its CEO, reported “We hear plenty of stories from customers who use it in their garden or add it to their compost bin”.

Circular packaging helps you achieve ESG targets

In addition to helping your business achieve waste-related targets, a truly sustainable packaging solution should reduce your Scope 3 emissions. Commitment to ESG targets is becoming a key concern for investors; according to a global survey, 80% believe that companies with ESG practices may be better long-term investments. By transitioning to a circular packaging solution, a business shows its commitment to ESG, which in turn attracts new investors, builds trust with stakeholders, and secures financing.

In addition, mandatory climate reporting is on the horizon for 2024-25, and carbon emissions will be under close scrutiny. The Consultation Paper is clear that Scope 3 emissions, both upstream and downstream, must be accounted for, as well as governance processes and strategies to minimise climate-related risks. Transitioning to sustainable packaging with a lower carbon footprint can help you achieve these targets and prepare your business for climate-related financial disclosures. The greenhouse gas emissions of Planet Protector Packaging’s WOOLPACK, for example, are 290 times less than polystyrene. Not only that, but wool is part of the natural carbon cycle; it removes carbon from the atmosphere. Our product arrives flat-packed, requiring 80% less warehouse storage space. This translates to less transport as well, decarbonising the supply chain even further.? In contrast, traditional approaches like polystyrene can’t be moulded and require more warehouse space, more transport, and ultimately, emit more carbon dioxide. In addition to being harmful to the environment, the chemicals released during the combustion of polystyrene are toxic to human health; The National Bureau of Standards Center for Fire Research identified 57 chemicals released during this process, some of which include carbon monoxide and Polycyclic Aromatic Hydrocarbons.?

It’s worth mentioning that circular packaging plays a role in the much larger scheme of things. Proposing solutions to some of the world’s biggest problems - the global waste problem and the climate crisis - differentiates the company from the industry standard and can attract top-tier talent to the business. A 2023 Deloitte study found that Gen Zs and millennials expect employers to take significant action to promote sustainability and actively involve employees. Engaging in sustainability initiatives and showcasing your business’s commitment to the environment motivates employees, helping change their perception of their role as a function-based job, and into a purpose-driven outcome. This, in turn, elevates morale, increases loyalty, and improves productivity.

Sustainability gives you a competitive advantage

Consumers often drive change; in this case, it’s no different. It should come as no surprise that 82% of Australians and 85% of New Zealanders value sustainable packaging and that sustainability has become one of the top considerations when choosing a retailer, brand, or product. Sustainable packaging, then, opens up many opportunities to attract and retain audiences. Competitive advantage occurs in the B2B space, too. As previously mentioned, mandatory climate disclosure is imminent. Many corporations will begin to decarbonise supply chains, and materials like polystyrene - made from toxic, non-renewable fossil fuels - will have to be eliminated. Packaging solutions that minimise a business’s carbon footprint will be adopted.

Conclusion

Embracing sustainable packaging offers various advantages. It reduces waste, lowers carbon emissions, attracts investors, and aligns with ESG targets, all of which drive business growth. Moreover, it distinguishes your company in a competitive market, fosters employee engagement, and resonates with conscious consumers, ensuring a promising future for both your business and the planet.

If you’re ready to embrace circular packaging, get in touch with Planet Protector Packaging today.?