Amazon invests in 3D packaging specialist CMC to boost Frustration-Free Packaging

28 Oct 2021 --- Italian 3D packaging automation specialist CMC Machinery has landed a minority investment from Amazon through the online retail giant’s Climate Pledge Fund. CMC’s technology will help propel the “Frustration-Free Packaging” (FFP) guidelines, by which Amazon is incentivizing vendors to reduce e-commerce material usage through a credit scheme.

Amazon’s Climate Pledge Fund aims to achieve carbon neutrality throughout its practices by 2040, ten years ahead of the Paris Agreement. The investment program launched in 2020 with an initial US$2 billion in funding.

The pledge is a corporate venture capital fund that invests in companies developing environmentally sustainable and decarbonizing technologies that can accelerate Amazon’s path to neutrality. Amazon co-founded the pledge in 2019 to underscore its commitment to building a sustainable business for its customers and the planet.

CMC automating FFP
CMC, which is majority-owned by global investment firm KKR, asserts the new cash investment from Amazon matches its packaging ambitions.

A rise in e-commerce has driven the need for reduced material usage.“CMC will use Amazon’s Climate Pledge Fund investment to further accelerate R&D in sustainability and automation solutions, expand capacity, accelerate growth globally and strengthen the team with key hires in Italy and across Europe,” says Lorenzo Ponti, R&D director of CMC Machinery.

“In 2013, CMC pioneered 3D packaging and has emerged as a global leader in 3D packaging automation.”

Amazon vice president and head of worldwide sustainability Kara Hurst underscores the importance of 3D printing technology in accelerating the e-commerce giant’s FFP principles.

“We know our customers want right-sized, recyclable packaging that reduces the use of plastic materials. We’re proud to invest in CMC Machinery as their technology will help facilitate the transition to a low-carbon economy and support our long-term effort to eliminate additional packaging in the items that we ship.”

Amazon ascending
The CMC investment joins a host of activities promoted by Amazon recently in efforts to assure consumers it will improve its environmental footprint.

Last year, Amazon announced the elimination of all single-use plastic packaging across its more than 50 fulfillment centers in India, replacing air pillows and bubble wrap with paper cushions and adopting 100% plastic-free, biodegradable paper tapes.

This year, TriMas Packaging brand Rieke unveiled an Amazon-certified e-commerce packaging range for personal care and home cleaning liquid products.

With Amazon’s support, Rieke established in-house ISTA-6 labs for testing and optimizing liquid packaging. The supplier’s packaging solutions are certified in compliance with Amazon’s FFP guidelines.

Similarly, Smurfit Kappa’s 3 L Bag-in-Box packaging design received Amazon’s FFP certification this year, helping the company prevent having to go through “costly and time-consuming testing” at a specialized International Safe Transit Association certified laboratory to gain FFP certification.

Edited

By Louis Gore-Langton

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