The Role of Stakeholder Engagement in Advancing ESG in Plastic Package Industry

The ubiquity of plastic package has put the spotlight on environmental, social and governance (ESG) as industry leaders take a leap towards decarbonization and circular economy. Incumbent manufacturers are harnessing sustainable packaging solutions to protect the environment, foster the planet and underscore society. There is no denying that packaging ensures product quality and safety; however, pervasive plastic pollution has been the major bottleneck towards sustainability goals.

According to UNEP, humanity produces over 430 million tons of plastic annually, while 280 million tons of short-lived plastic products become waste. Moreover, the packaging sector is the largest generator of plastic waste — the figure is likely to be logged at 1,014 million metric tons of plastic waste per year in 2060. Besides, the Ellen MacArthur Foundation claims 20 trillion flexible packaging items, including sachets and pouches, would end up in the ocean by 2040, provided regulator measures and binding policy are not taken.

Governing bodies and watchdogs are leaving no stone unturned to underscore socially responsible investment (SRI). ESG reporting can have a considerable impact on the strategies and operations of the firm, prompting leaders to advance toward the circular packaging economy.

Is your business one of the participants in the Plastic Package Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices

Mondi Harnesses Challenges & Opportunities with Climate Change

Companies with high ESG ratings tend to plan better for the future and boost returns. Predominantly, investors, insurers and lenders are eager to know how organizations are responding to environmental changes, the emergence of technology and customer behavior shifts. In essence, Mondi is on track to minimize specific waste to landfill by 30% by 2030. The U.K.-based company is gearing up to create 100% reusable, recyclable, or compostable plastic packaging by 2025. The global giant has undergirded recyclability with an emphasis on structures with 30–50% material made from post-consumer resin (PCR). In doing so, it will work with recyclers to enhance the quality of the recycled resins, remove hard-to-recycle components and redesign packaging to mono-material solutions.

Amcor Uncovers Future-Driven Approach Keeping People at the Center

Businesses are increasingly emphasizing social goals to enhance financial performance, manage risk, boost reputation and comply with regulations. A commitment to inclusion and diversity, employee health & wellness, product safety and employee training can help companies build stronger relationships with stakeholders. The community pillar at Amcor has formed a global network of representatives to bolster the deployment of the company’s DEI (diversity, equity and inclusion) agenda. It also conducted OurVoice@Amcor global feedback survey in FY 2023 to launch programs for more employee-centric and future-focused workplaces. Besides, Amcor went on to onboard more than 40 Afghans and about a dozen of Congolese team members in one year.

Coveris Adds Value through Governance

Robust corporate governance practices have become second to none in maintaining accountability, mitigating risks and fostering performance. In essence, sound risk management, ethics & compliance, transparency and board diversity can have a notable impact on brand reputation, financial condition and business operations. Coveris asserts it complies with tax laws, human trafficking, tax laws and regulatory compliance. According to the UK Tax Disclosure Policy published by Coveris on November 10, 2023, the senior management of the UK entities manages and controls the tax function (and related risks). The policy suggests the UK Group does not facilitate/tolerate tax evasion and it may claim properly available allowances, incentives, exemptions, credits, or other government-granted reliefs.

Making a Difference with ESG Reporting

Stakeholders, including customers, manufacturers, suppliers, governments and NGOs, are developing recyclable materials, fostering sustainable packaging for strength, safety and barrier attributes. Authentic information on the environmental footprint, contribution to society, tax transparency and corruption will place companies cut above the rest.

ESG reporting has become the silver lining amidst brands striving to enhance their position in the competitive market. Companies disclosing environmental data can assess the impact of plastic packaging, commit to proactive action and report on progress with transparency. In April 2023, CDP announced that it would add plastics to its environmental disclosure system for the first time, leveraging 6,743 organizations to disclose their plastic-related impacts, including that of plastic packaging.

As stakeholders embed ESG in roles, activities and responsibilities, companies are bullish towards investments in plastic circular economy, health & wellbeing, DEI and product and employee safety. The global plastic package market size, pegged at USD 355 billion in 2021, could depict around 4.2% CAGR between 2022 and 2030, according to Grand View Research. With suppliers and manufacturers making strides to meet packaging goals, the spotlight will continue to remain on socially responsible investing.

Related Reports:

• Green Packaging Industry: https://astra.grandviewresearch.com/green-packaging-industry-esg-outlook
  
  
• Bioplastics Industry: https://astra.grandviewresearch.com/bioplastics-industry-esg-outlook
  
  
• Recycled Plastic Industry: https://astra.grandviewresearch.com/recycled-plastic-industry-esg-outlook

About Astra — ESG Solutions By Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. — a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global leve

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!

Green Packaging Industry Invests in ESG Pillars to Bolster Company’s Strategy

Fast-moving consumer goods (FMCG) companies, packaging manufacturers and retailers have taken a giant stride towards a circular economy with investments in green packaging. Consumers’ preferences for sustainable packaging and the repercussions of plastics on the environment have prompted governing bodies to look beyond plastic bans.

Spain introduced Plastic Tax (a special tax on non-reusable plastic packaging) by Law 7/2022 to promote a circular economy and manage waste and contaminated soil; the law came into force on January 1, 2023. In August 2021, the Whitehouse introduced REDUCE (Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems) Act to encourage recycling and impose a USD 0.10 per pound fee on virgin plastic resins used for the single-use product, rising up to USD 0.20 per pound in 2024.

With single-use plastic becoming ubiquitous, the burden on the environment and society has become a grave concern. So much so that green packaging has become synonymous with biodegradability and instrumental in fostering corporate social responsibility. That said, several companies have received the flak for greenshifting—a part of greenwashing wherein brands shift blame from themselves to consumers in a way that would not hold specific companies accountable for the environmental crisis. Several pundits, including Heather Rogers, claimed that Coca-Cola and companies, such as Dixie Cup launched—Keep America Beautiful—aimed at making Americans believe that it was their personal responsibility to keep the environment clean. 

Environmental claims are pervasive in Europe, too. The Guardian cited a Changing Markets Foundation report, noting that P&G ‘s Head and Shoulders shampoo bottles—dyed blue—cannot be recycled further, although these products are touted as being made of beach plastic. Meanwhile, P&G stated that the pack was recyclable and is no longer available in the U.K. While consumer protection laws are in place, better ESG performance has become invaluable for brands to avoid landfills and bolster share value. 

Amcor Invests in Responsible Packaging to Enhance Environmental Profile

Sustainable packaging solutions have received global traction to facilitate a circular economy. Recycled-ready products can be the mainstay for brands striving to keep abreast of ESG trends. For instance, Amcor is gearing up for 30% recycled material across its portfolio by 2030, up from the previous target of 10% by 2025. In January 2022, the company committed to establishing science-based targets and attaining net-zero emissions by 2050. It is contemplating augmenting recycling value for PET Thermoformed Trays; boosting value in PET recycling; using on-pack recycling instruction; minimizing virgin plastic use in B2B plastic packaging; and bolstering recycling value in rigid HDPE and PP. 

Amcor has forayed its penetration in Latin America to ramp up “inclusive and economically viable recycled projects.” It joined forces with Delterra in Olavarría, Argentina to fund the project boosting recycling, waste collection and composting. Olavarría could recover 2,000 metric tons of plastic annually by 2024. It is worth mentioning that the brand is poised to make all packaging recyclable, reusable or compostable by 2025. In FY 2022, Amcor Flexibles Latin America teamed up with a customer to create an innovative compostable packaging solution for paper-made butter and margarine. 

Is your business one of participants to the Green Packaging Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices

Mondi Navigates Social Initiatives to Enhance Sustainability Solutions

The need for positive social practices has prompted industry players to inject funds into diversity, health & well-being, and community welfare and play a part in overcoming sustainability challenges. Mondi expanded its footprint in Africa through investments in corporate social projects and offering sustainability training opportunities in South Africa. Besides, in 2022, it poured €8.9 million (approximately USD 9.8 million) into social initiatives to underpin environmental protection, health, education, infrastructure and local enterprise. Amidst Russia’s invasion of Ukraine, the packaging and paper group donated €2 million (roughly USD 2.2 million) to the World Food Program for humanitarian causes. 

Mondi furthered personal development opportunities, mental health and diversity and inclusion. The company tested Mental Wellbeing Index for employee surveys across different locations to emphasize safety, mental health, inclusive behavior and climate action. Additionally, in 2022, approximately 31% of all employees participated in the online Performance and Development Review Process. 

DS Smith Reinforces Good Corporate Governance

The principles of sound corporate behavior, board diversity, transparency, ethics & compliance and anti-corruption have become paramount to underscore brand position. DS Smith is aiming to engage 100% of its people on the circular economy and is optimistic about removing 1 billion pieces of problem plastics from supermarkets by 2025. Bullish corporate policies could complement buoyant strategies to achieve the target and spearhead the ESG rankings. The company has formed a circular business around sustainable packaging. 

The prevalence of bottlenecks, such as bribery and corruption, has compelled DS Smith to introduce strict anti-bribery and anti-corruption policies. The company has exhorted a zero-tolerance approach to bribery and corruption and urged to conduct third-party background checks by reviewing third-party’s likely business partners; and the payment terms, among others. The company also prepares a companion report, along with the sustainability report annually, to provide a deep-dive into the quantitative detail of ESG and sustainability performance across non-financial indicators. 

At a time when sustainable packaging could bring a green revolution, forward-looking companies are expected to inject funds into ESG strategies. For instance, in March 2023, DuPont joined forces with the members of the Water Resilience Coalition to infuse USD 3 million to boost access to safe water and sanitation. The high-impact investment validates Grand View Research’s projection of the global green packaging market at 6.1% CAGR from 2020 through 2028. 

About Astra – ESG Solutions by Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

For more ESG Thematic reports, please Visit Astra ESG Solutions, powered by Grand View Research