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Sustainability in the Packaging Industry: A Guide for Small- and Medium-Sized Companies

In today's business world, sustainability is a key topic, especially in the packaging industry. (Small and medium-sized) companies are faced with the challenge of making their processes more environmentally friendly while remaining competitive.


This article provides a comprehensive guide to implementing sustainable practices in the packaging industry, based on the content of a Professionals Academy workshop.


What is Sustainability?

The term sustainability has its origins in 18th century forestry. There, sustainability described the principle of only taking as much wood from the forest as can naturally regenerate itself.


In the modern context, sustainability is understood as development that meets the needs of the present without compromising the abilities of future generations to meet their needs. In terms of economic activity, profits generated should not flow into environmental and social projects retrospectively, but should be generated directly in an environmentally and socially compatible manner. Volker Hauff's definition from the 1987 Brundtland Report and Heidi Pufé's statement from 2014 underline the fact that sustainability includes not only ecological, but also social and economic aspects.



Fundamental Concepts of Sustainability

Double Materiality

Double materiality is a core concept of sustainability. Companies must consider both the impact of their actions on the environment and society (inside-out) and the influence of external sustainability factors on their business (outside-in). This perspective helps companies to comprehensively shape their strategies and identify both opportunities and risks.





Triple Bottom Line

A widely used concept for classifying sustainability is the triple bottom line. This comprises three dimensions:

  • Economic dimension: Long-term economic stability and growth

  • Ecological dimension: Protection and sustainable use of resources

  • Social dimension: fair working conditions, health and safety, human rights


Companies can use this classification to keep an eye on all aspects of sustainability when developing strategies and evaluating measures. In this way, conflicting targets between economic, ecological and social sustainability can be identified and, in the best case, avoided.


Trends and Challenges

Regulatory Requirements

The packaging industry is facing increasing regulatory requirements. The EU packaging regulation (PPWR), for example, aims to reduce single-use plastic and promote recyclable materials. Companies must prepare for such changes and take proactive measures to comply with the new standards.





Technological Innovations

Technological innovations offer numerous opportunities to improve sustainability. For example, renewable energies and energy-efficient production methods can significantly reduce the ecological footprint. The digitalization and automation of processes can also help to increase efficiency.


Market Requirements

Consumers and business partners are increasing their focus on sustainability. Companies that implement sustainable practices can increase their competitiveness and tap into new market opportunities. Consumers are increasingly willing to pay for sustainable products and many companies require their suppliers to provide corresponding documentation.



Development of a Sustainability Strategy

Materiality Analysis

The first step in developing a sustainability strategy is to carry out a materiality analysis. This analysis identifies and evaluates the material topics that are relevant to the company and its stakeholders. The process includes:


  1. Understanding the context: capturing the relevant sustainability issues.

  2. Identification of impacts, risks and opportunities: Assessment of financial and non-financial impacts.

  3. Evaluation and determination of material aspects: Prioritizing the topics according to their importance.


The materiality analysis serves as a basis to define specific, measurable, achievable, relevant and time-bound (SMART) sustainability targets.


Examples of such targets could be:

  • Reducing CO2 emissions by 50% by 2030.

  • Increasing the proportion of recyclable materials to 80% by 2025.


In order to achieve these goals, specific action plans must be drawn up that define responsibilities and time frames. Regular monitoring and adjustment of these measures are crucial to ensure that the targets are achieved.





Governance and Processes

A successful sustainability strategy requires the integration of sustainability into the corporate structure.


This includes:

  • Governance: development and implementation of sustainability guidelines and standards.

  • Processes: Adapting business processes to support sustainability goals.

  • Culture: Promoting a corporate culture that considers sustainability to be a core value.


The Role of Corporate Culture

Successful long-term integration of sustainability into corporate processes and governance structures requires the topic of sustainability to be an integral part of the corporate culture. Managers play a decisive role in promoting and exemplifying this culture. They can give the topic importance and act as multipliers.


Measures to promote a sustainable corporate culture include:

  • Managers acting as role models: managers who exemplify sustainable behavior set a strong example for the workforce.

  • Involving employees: creating opportunities for all employees to participate in sustainability initiatives

  • Rewarding sustainable behavior: Recognizing and rewarding employees who are particularly committed to sustainability.


Communication and Reporting

Transparency is a key component of a successful sustainability strategy. Clear and consistent internal and external communication is necessary to demonstrate the company's commitment and gain the trust of stakeholders.


Sustainability reports are an important tool for communication. By applying standards such as the European Sustainability Reporting Standards (ESRS) and using frameworks such as the United Nations Sustainable Development Goals (SDGs), companies can communicate their successes, challenges and ambitions in relation to sustainability in a transparent and credible manner.





Practical Approaches to Sustainability

Efficiency

One simple way to become more sustainable is to increase resource efficiency. This means using fewer resources for the same amount of products.


Measures to increase efficiency include:

  • Optimizing production processes: Reducing waste and energy consumption.

  • Use of modern technologies: Use of energy-efficient machinery and equipment.

  • Employee training: promoting sustainable behavior and efficient working methods.


Consistency

Consistency refers to the use of sustainable materials and processes. This can be achieved by using recycled or renewable materials and by implementing closed-loop systems.


Examples of this are:

  • Use of recycled material: use of recycled plastic or paper in production.

  • Implementation of return systems: Promoting the reuse and recycling of packaging.

  • Cooperation with sustainable suppliers: Selection of suppliers who also apply sustainable practices.


Sufficiency

Sufficiency means reducing the consumption of resources and energy. This can be achieved by consciously avoiding unnecessary packaging and promoting sustainable consumption patterns.


Sufficiency measures include:

  • Minimalist packaging design: reducing to the bare essentials to save materials.

  • Promotion of reusable packaging: Offering reusable alternatives to disposable packaging.

  • Consumer education: raising customer awareness of sustainable consumption and avoiding waste.



Conclusion: Sustainability as a Competitive Advantage


For medium-sized companies in the packaging industry, implementing sustainable practices is not only a necessity, but also an opportunity. A well-thought-out and implemented sustainability strategy can not only help to meet regulatory requirements, but also improve the company's image, increase customer satisfaction among existing customers, support the acquisition of new customers and reduce costs in the long term.


By putting sustainability at the heart of your business strategy, you can make a positive contribution to the environment while achieving your business goals. Start developing your sustainability strategy today and position your company for a successful, sustainable future. With these measures and approaches, you can not only meet today's requirements, but also take a pioneering role in the packaging industry. Sustainability is not a trend, but a necessity - and offers enormous opportunities for those who are prepared to seize them.

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