“Environmental sustainability reshapes the business landscape for good,” says Smurfit Kappa

23 Jun 2020 --- Eighty-three percent of packaging businesses see sustainability from an environmental perspective as a “business opportunity to be exploited,” according to a new survey from Smurfit Kappa. The 18-page Sustainability and Profitability Survey also found that a third of packaging companies state that sustainability is the key driver for R&D and NPD, and 72 percent view sustainability as a “lasting trend.”

“Many of the findings from the survey were not a surprise to us. We have known for many years that sustainability is here for the long term and that consumers will continue to drive the sustainability agenda. The findings largely supported what we have seen so far through the relationships we have with our customers and the work we do with them to provide the right packaging solutions,” Stefan Terink, Smurfit Kappa Director of Marketing & Sales, tells PackagingInsights.

He continues that Smurfit Kappa was indeed surprised by the fact that 82 percent of business executives treat sustainability as a long term investment but only 18 percent measure sustainability against their plans. With sustainability increasingly being a board-level priority, however, he foretells that this is likely to change. 

82 percent of business executives treat sustainability as a long term investment but only 18 percent measure sustainability against their plans, the survey found.“The fact that 61 percent of consumers expect the brands they buy from to have clear sustainability practices has significant implications for the packaging industry. We’re also seeing a shift in consumer buying patterns. In the past six months, 45 percent of consumers rejected a brand based on unsustainable packaging,” Terink highlights.

Citing the Business and Sustainable Development Commission’s Better Business, Better World report, Smurfit Kappa states that by 2030 the UN Sustainable Development Goals will represent a US$12 trillion annual opportunity for the private sector. 

Sizing up the results
The survey participants – 200 senior business executives in the UK – indicated the top three barriers to implementing environmental sustainability practices within a business model as:

• Difficulty quantifying sustainability performance (42 percent).
• Difficulty identifying suitable sustainable solutions (41 percent). 
• Access for funding for sustainability practices (39 percent).

The survey sheds light on how to acknowledge that “sustainability is a catalyst for change and can create opportunities for growth.” Balancing environmental sustainability practices with profitability can help companies gain long-term stakeholder buy-in. Meanwhile, there is an understanding that with the ascendancy of Millennials and Generation Z, corporate culture must “align with social calls for action,” the survey highlights. Ultimately, addressing consumer expectations of sustainability will strengthen brand-customer relationships. 

Cost-effective sustainability efforts include reducing empty packaging in the e-commerce channel and plastic use throughout the supply chain.Taking care of business
In its own environmental sustainability strides, Smurfit Kappa reported significant progress in reducing its relative CO2 emissions in its recently published 13th annual Sustainable Development Report. The company also provided additional insights in another consumer survey last month, which detailed how “Conscious Consumerism” continues to drive the need for UK organizations to embed sustainability into business operations.

“There are plenty of easy wins for suppliers to tackle in the global packaging industry without driving up significant costs, starting with reducing the amount of empty packaging in the e-commerce channel and the use of plastic when transporting goods in the supply chain,” says Arco Berkenbosch, Smurfit Kappa Vice President of Innovation and Development. 

In terms of changes that could be beneficial to the long-term success of an organization’s environmental sustainability practices, respondents indicated:

• Greater customer awareness of the impacts of sustainability practices (50 percent).
• Industry regulations and/or benchmarks (39 percent).
• Companies in my sector collaborating more closely on sustainability practices (38 percent).

“Now, more than ever, the sustainability agenda is driven by consumers,” Berkenbosch concludes.

On a similar note, PackagingInsights spoke earlier this month with Bobst Connect on how brand owners in the packaging industry need to be flexible throughout the value chain to cater to rapidly changing consumer demands.

By Anni Schleicher