Green Packaging Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Green Packaging Industry

The implementation of ESG across all sectors has been a positive development. One of the greatest benefits is the minimal impact on the environment, not only with respect to the E factor, but also with respect to the Social and Governance risks.

Green packaging or eco-friendly packaging or sustainable packaging is anything that reduces the environmental impact. When it comes to the impact of green packaging on the environment and society, it has a very high negative impact both in terms of environmental and social factors. One-third of what is delivered to landfills each year is packaging waste, which is a huge issue. It is critical to note that many commonly used packaging materials (such as plastics and polystyrene) have a negative impact on the environment. Modern packaging designs can also be inefficient, utilizing more materials than necessary. In other words, switching to sustainable packaging design is one of the simplest ways for businesses to reduce their environmental impact.

Social responsibility includes consideration of the sustainability of a company's supply chain, packaging materials, and the quality of materials sourced by its manufacturer. Several factors are influencing supply chains to become more sustainable, including economics and the environment. Manufacturers, retailers, and packaging designers are often at the forefront of efforts to improve supply chain sustainability. Moreover, consumers have become increasingly aware of the importance of product sustainability and are choosing eco-friendly packaging over traditional packaging.

Transition And Trends in Sustainable Packaging

There has been a significant increase in the transition toward sustainable packaging over recent years. The growth can be attributed principally to Covid-19, where people became more aware of the environmental and social impacts of the packaging waste, internationally. In addition, companies are focusing on promoting sustainable packaging that would reduce the negative environmental impact. This has resulted in an increase in consumer loyalty toward brands that focus more on sustainability. Further, several sustainable packaging practices have been adopted around the world: opting for packaging made from 100% recyclable materials, optimizing the materials, shipping smaller packages is a good practice, plant-based packaging, and many others.

As an example of innovation in this area, Hewlett-Packard (HP) wanted to improve their packaging to minimize environmental impact as they export several notebooks to China every year. HP’s partnership with Swedish pulp and paper manufacturers, BillerudKorsnas helped them introduce sustainable packaging which in turn reduced transport emissions by 29% and decreased packaging waste.

Additionally, several new trends have emerged with the growing transition in the sustainable packaging market. A few of these are: designed to be recycled here; all materials have been designed in such a way that they can be recycled and reduce waste, reducing plastic use by packaging things with minimal material, replacing plastic materials with sustainable ones, such as mushrooms, biodegradable packaging is one such packaging that helps to save the environment.

ESG Challenges

As an alternative to traditional packaging, green packaging has several challenges. For small businesses, switching to green packaging is difficult because it is expensive, and the materials used in the packaging can break down easily if not properly disposed of. In recycling facilities, these products are at high risk of cross-contamination. As a result of cross-contamination, products are less likely to be recycled, and even more, waste is created. There are some types of sustainable packaging that may negatively affect health and hygiene as well. 

SDGs Linked to green packaging

Green packaging or eco-friendly packaging supports the achievement of several Sustainable Development Goals, including SDG 12 (Responsible Consumption and Production), SDG 14 (Life Below Water and Goal), and SDG 15 (Life on Land).

Growth of The Green Packaging Market

A compound annual growth rate (CAGR) of 6.1% is predicted for the global green packaging market between 2020 and 2028, with a value of USD 274.15 billion in 2020. Consumer awareness about sustainable packaging is expected to drive the industry's growth and strict bans on single-use plastics. 

Food and beverage industries are increasingly using packaging made of recyclable and compostable materials, which is expected to boost industry growth. The research for this theme highlights the key aspects for the green packaging market.

Key Companies in this theme

    • Amcor

    • DuPont

    • Mondi

    • Sealed Air

    • DS Smith

Scope of the Green Packaging Industry ESG Thematic Report: 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits the Green Packaging Industry ESG Thematic Report: 

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Green Packaging Sector, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the Green Packaging Industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment