UNDERSTANDING :

The creation and use of packaging that improves sustainability is known as sustainable packaging. This entails a greater reliance on life cycle assessment (LCA) and life cycle inventory (LCI) to assist direct the use of packaging that has a smaller negative impact on the environment. It takes a comprehensive look at the entire supply chain, from fundamental functionality to marketing to end of life (LCA) and rebirth. A ratio of eco-cost to value can also be helpful. The objectives are to increase human longevity and quality of life as well as the resilience of natural ecosystems. In order to be sustainable, packaging must satisfy today’s functional and financial needs without Jeoparadising the ability of future generations to do the same.

The environmental factors for packaging have recently included sustainable packaging. Examining the design of the packaging, the selection of the materials, the processing, and the life cycle necessitates further research and documentation. This goes beyond the nebulous “green movement” that some firms and corporations have attempted to embrace over the past few years. Companies that use eco-friendly business practises use more recycled materials, have smaller carbon footprints, and reuse more package parts. They frequently exhort distributors, contract packagers, and suppliers to follow suit.

TODAY’S NEED :

The packaging value chain’s top discussion point continues to be sustainability, and businesses are setting high goals to increase their performance.

Fewer than 30% of firms are adequately prepared to meet regional regulations, much less internal objectives, according to a survey of packaging purchasers across industries, which reveals that about 75% of organisations have made unambiguous pledges to sustainable packaging. Less than 30% of organisations also have clear KPIs for recycled material, sustainability, or recycling rates. There are also a number of organisational obstacles to overcome. Less than a fifth of firms have upgraded employee skills to incorporate sustainability themes or have put in place significant incentives to meet sustainability goals. To change this and put more emphasis on sustainability without compromising brand value, cost, or sustainability.

With numerous end-user segments in the consumer spotlight, sustainability measures are increasingly becoming a focus. Despite cost premiums above conventional items, consumers value things that are produced and obtained responsibly.

Extending producer responsibility (EPR) to consumer-facing products, focusing more on emissions, and establishing single-use packaging laws are all examples of how policymakers and regulatory bodies are reacting to public opinion. Most of these policies are now being developed in Europe, but governments in Asia-Pacific and North America are developing legislation that is similar.

Sustainable packaging is expected to become a major area of attention for sustainability initiatives, according to developments in consumer preferences, legislation, and governmental activities.

Global firms (as purchasers of packaging) have started making aspirational sustainability goals in the face of growing criticism.

What is the state of these sustainability promises post-pandemic, particularly as product firms deal with fresh difficulties and ongoing uncertainty? For instance, supply chain bottlenecks have been brought on by recent geopolitical unrest and pandemic-related supply chain disruptions in a number of commodity categories (including pulp, recycled plastics, and virgin resin). Additionally, as inflation continues to increase globally and consumers are more sensitive to cost.

The approach has to built on five critical areas:

1. Use less

Reduce packaging, including both overuse of a product company’s own packaging and secondary and tertiary use. For example, one white-goods organization successfully removed secondary packaging by challenging outdated specifications.

2. Refresh

Companies can leverage customer insights and industry best practices to refresh their packaging designs. For example, a consumer-electronics company redesigned its product portfolio to optimize its packaging and customer experience. As a result of the redesign, the company was able to reduce materials used and optimized transportation while also improving the out-of-box experience for customers.

3. Transport

Companies can make substantial progress by improving pallet efficiency and the pack-to product ratio. For example, a food and beverage company successfully reduced its transport emissions footprint by reducing “empty-mile” trips and increasing the fuel efficiency of its vehicles. Similarly, a consumer brand with a large portfolio of different-sized products reduced its CO₂ footprint by simplifying three sizes of master cartons to optimize containerization and drive transportation savings.

4. Materials

Sustainable materials, such as those with lower life-cycle emissions, can have a significant impact on packaging sustainability. For instance, a food and beverage organization were able to lower its life-cycle emissions by switching to bio-based packaging.

5. Circularity

Optimize for waste management by reusing materials and recycling and disposing of them properly. One cosmetics company offered free products to encourage customers to return empty pots in an effort to manage packaging that was difficult to recycle. An automotive supplier reduced logistical spend and emissions through route and packaging optimization by using collapsible, third-party reusable containers and optimizing shipping to and from local depots. This reduced the frequency and distance of empty outbound shipments

To succeed in this approach, a few factors will be key:

• Clear commitment and conviction from leadership
• Cross-functional adoption of this new way of thinking
• Well-defined metrics to monitor performance, together with incentives to reach aspirational targets

Every function within the organization needs to adopt this way of thinking as part of a holistic approach to derive maximum impact from product development, sourcing, manufacturing, and marketing.  

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SUSTAINABILITY

The packaging value chain must address the strategic issue of sustainability. There is no time to waste in ensuring that audacious commitments can actually be kept, given rising consumer awareness and restrictions. Delays will put corporations in a difficult position, especially as capital is increasingly distributed based on sustainability and performance. However, businesses who successfully fulfil their sustainability goals while simultaneously boosting cost effectiveness and revenue development will advance to the following phase of the value creation journey.

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Note: Above views are written after studying & going through various books, articles, references before conclude.