A Sustainability Shift That Could Transform Packaging

Business leaders are at the forefront of an essential shift towards sustainability. Sustainable packaging has become a crucial aspect of corporate responsibility. Adopting a circular economy business model is a strategic imperative that can drive long-term value creation and competitive advantage. But the challenge may be in moving beyond conventional timeframes and perspectives to gain a broader view and increase the impact of today’s decisions.

We know the traditional linear model of packaging — produce, use, and dispose — leads to resource depletion and environmental degradation, generating waste and contributing to climate change. Circularity reimagines this lifecycle by creating a closed-loop system where materials are continuously repurposed, minimizing waste and maximizing resource efficiency. According to the Ellen MacArthur Foundation, materials in a circular economy flow through biological cycles, where biodegradable materials enrich the environment. There are also technical cycles, where non-biodegradable materials like metals and polymers are recycled and repurposed to retain their value over multiple lifecycles.

A prime example of a brand that took a more sustainable packaging approach is Pukka Herbs, a Lipton brand. By creating digital twins of products and supply chains, Pukka became more equipped to make informed decisions that are crucial for minimizing environmental impact while maximizing product quality. The company witnessed a reduction in greenhouse gas emissions from packaging by 58%, by implementing a digital twin of the product and the supply chain to create a live and dynamic visual to “see the impact” of Pukka’s choices.

Additionally, by analyzing multiple supply chain and material databases through leveraging solutions powered by artificial intelligence (AI), Pukka slashed decision-making time from months to days, resulting in a new packaging solution that is 67% lighter and more sustainable.

How to design for circularity.

Achieving sustainable packaging through circularity requires a strategic approach to design, including rethinking and redesigning products from scratch.

 Key strategies include:

• Material Selection: Choose materials that are either biodegradable or recyclable. Innovations in biomaterials and advances in recycling technologies offer new possibilities for sustainable packaging solutions.

• Modular Design: Create packaging that can be easily disassembled into recyclable components. This facilitates the separation and recovery of materials, enhancing their recyclability and reducing contamination.

• Extended Producer Responsibility (EPR): Implement EPR schemes where manufacturers are accountable for the entire lifecycle of their packaging. This encourages the development of packaging that is easier to recycle and repurpose.

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Circularity tips for business leaders.

For business leaders, driving packaging sustainability through circularity involves more than adopting new materials and designs. It requires a holistic approach, integrating sustainability into the core business strategy. Critical steps include:

1. Embed Sustainability Metrics: Incorporate sustainability metrics into the innovation and product development processes. These metrics should reflect packaging choices’ environmental, social, and economic impacts.

2. Stakeholder Engagement: Collaborate with stakeholders across the value chain, including suppliers, recyclers, and consumers, to build a comprehensive circular ecosystem. Collaboration is essential for identifying and overcoming barriers to circularity.

3. Life-Cycle Thinking: Adopt a lifecycle approach to packaging, considering the environmental impacts at every stage — from raw material extraction to end-of-life. This helps make informed decisions that minimize negative impacts and enhance positive contributions.

4. Innovative Business Models: Explore new business models, such as product-as-a-service, where packaging is leased rather than sold. This model incentivizes manufacturers to design for durability and recyclability, as they retain ownership of the packaging throughout its lifecycle.

Overcoming challenges to circularity.

Transitioning to a circular packaging model is challenging. Issues such as recycling infrastructure availability, material recovery complexity, and consumer behavior need to be addressed.

However, these challenges also present opportunities for innovation and leadership. For example, building a foundation for better decision-making from holistic data models strengthens the ability to focus on effectively achieving goals.

Additionally, one of the most prominent challenges is data management. To effectively address this present issue, organizations should adopt advanced approaches to recycled content calculation, which aggregates data from the entire supply chain, providing detailed insights into each material and component of a product. This method supports complex and granular life cycle assessments (LCAs) and aids decision-makers in identifying the most profitable trade-offs between recycled content, recyclability, and circularity. As a result, manufacturers can make smarter, data-driven decisions that enhance both sustainability and growth.

To scale product sustainability, companies need to ask broader questions about social, environmental, and business values at each stage, using available frameworks. Understanding long-term roadmaps and building relationships with internal and external stakeholders is crucial. It’s essential to envision the market five years ahead, considering future demand, regulations, competition, and societal priorities like carbon or water, to determine key design criteria.

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Sustainable packaging’s future is circularity.

Adopting circularity in packaging offers significant strategic advantages, such as reduced material consumption, cost savings, and improved brand reputation. This forward-thinking approach positions companies at the forefront of sustainability, considering the dynamic nature of sustainability standards, which evolve over time. More than narrowly focusing on carbon as a sole indicator of sustainability is required. A multi-criteria approach is essential, considering societal impact, regulatory requirements, and health implications. This comprehensive view ensures that sustainability efforts are holistic and effective.

Packaging sustainability from a circularity perspective is not just a trend but a necessary evolution in response to pressing environmental challenges.