Suzano launches venture capital initiative to propel pulp packaging efficiencies

17 Jun 2022 --- Suzano is launching a global corporate venture capital initiative through which it will invest US$70 million in a range of businesses, including those working to create more efficient pulp packaging, to address environmental challenges. 

The global initiative, called Suzano Ventures, will focus on companies operating within at least one of four bioeconomy applications: improving the measurement and management of carbon sequestration, accelerating and maximizing agroforestry yield, developing new technologies and applications for pulp biomass, and creating more efficient pulp packaging from renewable sources.

“We see increasing demand from consumers and wider stakeholders for high-quality and [environmentally] sustainably sourced and manufactured products,” Julio Ramundo, director of carbon businesses and corporate ventures at Suzano, tells PackagingInsights.

“Suzano has established Suzano Ventures to ensure support and finance for the fast-growing ecosystem of entrepreneurs who are bringing fresh thinking and ideas to the bioeconomy and the wider environmental challenges we are all facing.”

Suzano’s new venture aims to support increasing consumer demand for environmentally sustainable packaging solutions.Renewable pulp packaging
Suzano Ventures is focusing on two specific areas within renewable packaging to make this process as efficient and environmentally sustainable as possible. 

“The first of these is examining new pulp and paper packaging solutions featuring barrier technologies to improve the shelf life of materials. We are seeking to enhance product resistance to oxygen, water vapor and grease,” explains Ramundo.

“In addition, we are seeking innovations to paper production and formulation which will improve tear-resistance, porosity and flexibility, making it more suitable for use in packaging.” 

“The second area is more related to the production and manufacturing process, for instance, by using fewer raw materials and developing the best renewable feedstock to increase efficiency through the value chain,” he adds. 

Affordability and scalability
Ramundo highlights that the primary challenges concerning the creation of pulp packaging are cost-competitiveness and scalability. 

“There are many innovative early-stage solutions still needing support to evolve in terms of technology and efficiency so they can reach the stage where they deliver the same or better performance than fossil-based solutions, which often have many decades of research behind them,” he says.

“As a result, new products often start at a higher price, before companies have the means to increase volume and efficiency and finesse their formulation.”The primary challenges when creating pulp packaging are cost-competitiveness and scalability, says Ramundo.

“Our aim is to meet increasing consumer demands by accelerating innovation in the sector through the growth of these pioneering companies, and driving forward positive change.”

Investment procedures
The Brazilian pulp and paper company explains that all investments will be aligned with its ethos of “innovability” – the pursuit of environmentally sustainable solutions through innovation – which is at the core of its operations.

Investments will be made in businesses at seed and series A funding stages. Suzano Ventures will also have a structure of acceleration programs to leverage solutions in the laboratory phase or seeking commercial validation (pre-seed).

“Suzano Ventures will provide financial and strategic support to these enterprises and, using the wider network and resources of Suzano, help accelerate [environmentally] sustainable solutions for the pulp sector and beyond,” concludes Ramundo.

By Natalie Schwertheim