ESG at a Glance in Plastic Package Industry

The ubiquity of plastic package has put the spotlight on environmental, social and governance (ESG) as industry leaders take a leap towards decarbonization and circular economy. Incumbent manufacturers are harnessing sustainable packaging solutions to protect the environment, foster the planet and underscore society. There is no denying that packaging ensures product quality and safety; however, pervasive plastic pollution has been the major bottleneck towards sustainability goals.

According to UNEP, humanity produces over 430 million tons of plastic annually, while 280 million tons of short-lived plastic products become waste. Moreover, the packaging sector is the largest generator of plastic waste—the figure is likely to be logged at 1,014 million metric tons of plastic waste per year in 2060. Besides, the Ellen MacArthur Foundation claims 20 trillion flexible packaging items, including sachets and pouches, would end up in the ocean by 2040, provided regulator measures and binding policy are not taken.

Governing bodies and watchdogs are leaving no stone unturned to underscore socially responsible investment (SRI). ESG reporting can have a considerable impact on the strategies and operations of the firm, prompting leaders to advance toward the circular packaging economy.

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Mondi Harnesses Challenges & Opportunities with Climate Change

Companies with high ESG ratings tend to plan better for the future and boost returns. Predominantly, investors, insurers and lenders are eager to know how organizations are responding to environmental changes, the emergence of technology and customer behavior shifts. In essence, Mondi is on track to minimize specific waste to landfill by 30% by 2030. The U.K.-based company is gearing up to create 100% reusable, recyclable, or compostable plastic packaging by 2025. The global giant has undergirded recyclability with an emphasis on structures with 30-50% material made from post-consumer resin (PCR). In doing so, it will work with recyclers to enhance the quality of the recycled resins, remove hard-to-recycle components and redesign packaging to mono-material solutions.

Amcor Uncovers Future-Driven Approach Keeping People at the Center

Businesses are increasingly emphasizing social goals to enhance financial performance, manage risk, boost reputation and comply with regulations. A commitment to inclusion and diversity, employee health & wellness, product safety and employee training can help companies build stronger relationships with stakeholders. The community pillar at Amcor has formed a global network of representatives to bolster the deployment of the company’s DEI (diversity, equity and inclusion) agenda.  It also conducted OurVoice@Amcor global feedback survey in FY 2023 to launch programs for more employee-centric and future-focused workplaces. Besides, Amcor went on to onboard more than 40 Afghans and about a dozen of Congolese team members in one year.

Coveris Adds Value through Governance

Robust corporate governance practices have become second to none in maintaining accountability, mitigating risks and fostering performance. In essence, sound risk management, ethics & compliance, transparency and board diversity can have a notable impact on brand reputation, financial condition and business operations. Coveris asserts it complies with tax laws, human trafficking, tax laws and regulatory compliance. According to the UK Tax Disclosure Policy published by Coveris on November 10, 2023, the senior management of the UK entities manages and controls the tax function (and related risks). The policy suggests the UK Group does not facilitate/tolerate tax evasion and it may claim properly available allowances, incentives, exemptions, credits, or other government-granted reliefs.

Making a Difference with ESG Reporting

Stakeholders, including customers, manufacturers, suppliers, governments and NGOs, are developing recyclable materials, fostering sustainable packaging for strength, safety and barrier attributes. Authentic information on the environmental footprint, contribution to society, tax transparency and corruption will place companies cut above the rest.

ESG reporting has become the silver lining amidst brands striving to enhance their position in the competitive market. Companies disclosing environmental data can assess the impact of plastic packaging, commit to proactive action and report on progress with transparency. In April 2023, CDP announced that it would add plastics to its environmental disclosure system for the first time, leveraging 6,743 organizations to disclose their plastic-related impacts, including that of plastic packaging.

As stakeholders embed ESG in roles, activities and responsibilities, companies are bullish towards investments in plastic circular economy, health & wellbeing, DEI and product and employee safety. The global plastic package market size, pegged at USD 355 billion in 2021, could depict around 4.2% CAGR between 2022 and 2030, according to Grand View Research. With suppliers and manufacturers making strides to meet packaging goals, the spotlight will continue to remain on socially responsible investing. 

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