Is sustainability affordable? Packaging companies weigh costs and expectations

Sustainability remains a buzzword in the packaging industry, and most packaging suppliers tout myriad “sustainable” innovations they've adopted. But the concept begs the question: At what cost?

At a time when prices are at all-time highs, is revenue available to meet customer or consumer requests — or demands — for sustainable solutions?

Rachel Kenyon, senior vice president for the Itasca, Ill.-based Fibre Box Association, said there's no way to measure the cost of sustainability initiatives for brands, packaging suppliers and supply chain partners.

“We need to think more in terms of the cost of not addressing key issues that matter to consumers, trading partners, regulators and investors,” she said. “Environmental, social and governance reporting has become an essential part of corporate due diligence.”

The corrugated industry may be the only one that is based on a circular economy, Kenyon added.

“We grow and harvest trees in sustainably managed forests to make corrugated and other paper products,” she said. “These are used to package products and transport them through the supply chain, all the way to point of purchase or use, and when that is done, they are recycled to make new boxes.”

Drew Merrill, senior vice president of sales and customer experience for Alpharetta, Ga.-based CHEP U.S., said that, for him, the simplest way to think about sustainability from an economic perspective is to look at how a company can positively impact the planet through better business practices.

“Our customers tell us they want to be more sustainable but also need to increase revenue and reduce costs,” he said. “And they want to do business with partners who share the same sustainability values.”

Merrill said CHEP's business model of more than 353 million shared, repaired and reused assets is “circular by design, so it's inherently better for the planet than single-use alternatives.”

Yakima, Wash.-based Kwik Lok Corp. understands that its customers need sustainable solutions that are mindful of their budgets, said Karen Reed, global director of marketing and communications.

“That is why we create sustainable closure solutions like Enviro-Lok that run on the Kwik Lok machines that customers already have with little or no alteration needed,” she said. “We want to make the transition as easy as possible for their operations.”

Kwik Lok seeks a balance as its engineers and chemists create new products, Reed said. “We want new solutions to be affordable and reliable.”

A closure must be made so that a consumer can reclose the package repeatedly without it breaking down during the life of the product, she said.

“If they can't, then it's not good enough to be a Kwik Lok product,” Reed said.

Fresno, Calif.-based Giró Pack Inc. has long been a champion of sustainability, said Asya Asenova, retail and key account manager.

“As a leader in the mesh packaging market and with our presence in the overall packaging sector, we saw, many years ago, the need to promote a corporate strategy based on sustainability,” she said.

The company has made efforts to transform the company at all levels, including digital, logistics, production and financial, Asenova said.

“We are continually adding value to all our stakeholders as we remain committed to sustainability,” she said.

In 2009, Giró Pack launched the Ecogiró product line, which focuses on solutions that offer the same features as standard products, “but with optimization in the use of materials, therefore with a clear sustainability goal,” she said.

Ecogiró products became one of the firm's main drivers for revenue growth in 2022, and Asenova said Giró Pack expects Ecogiró products to play an even more important role in the future.

The Fibre Box Association helps members quantify the sustainability of corrugated by conducting regular cradle-to-grave life-cycle assessments that measure the environmental impact of an average corrugated box made in the U.S., Kenyon said.

The industry has reduced its greenhouse gas emissions by more than 50% per unit since the first assessment was done in 2006, she said.

While some consumers might not be willing to spend more on sustainable products, CHEP's Merrill said that organizations should use a different equation to evaluate the total value of a sustainable solution, “especially with increasing pressure from key stakeholders and regulatory bodies to prioritize environmental, social and governance.”

The total value of a sustainable solution considers factors like safety, quality, efficiency and reporting integrity, he said.

Kwik Lok's produce customers are listening to consumers who say they want more visibility into the packaging for their products, Reed said.

“They want to know what materials are used to create the package and where the package goes when they are finished with it,” she said.

At the same time, states and countries throughout the world are developing a variety of regulations.

“Our customers need solutions from a trusted partner to help them meet both consumer expectations and regulations,” she said.

Giró Pack is optimistic about the future, Asenova said.

“We must join the new era of global transformation, exploring and developing new opportunities, with more efficient and inclusive growth models, betting on alternative technologies,” she said. “[It is,] ultimately, a new way of thinking and doing things that delivers more value to society.”

“This is the path that we are going to follow,” she added.