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Taking Environmental, Social, and Governance (ESG) seriously makes sense for businesses that use packaging daily. Consumers are more aware than ever that packaging significantly contributes to global waste, which pushes the demand for sustainable packaging.
A recent survey found that consumers are willing to pay a 9.7% sustainability premium, as almost nine-in-ten (85%) report experiencing first-hand the disruptive effects of climate change in their daily lives.
Businesses can meet these expectations and help build a more sustainable future by embracing ESG principles in packaging.
Why is sustainable packaging important in meeting your ESG goals? Let’s explore how sustainable packaging supports each pillar of ESG and why it's a smart move for companies today.
Importance of Achieving ESG Standards
Environment
A small change in your packaging choices can make a big difference for the environment, especially when packaging is a significant part of your daily operations. Choosing sustainable options like 100% recycled C-flute packaging benefits your business and significantly impacts the planet.
York Container's parent company, Atlantic Packaging's 2023-2024 Environmental, Social, and Governance Report highlights several environmental benefits of using one short ton of 100% recycled C-flute packaging, such as:
- Saving 24.2 mature trees keeps them in the forest, which helps maintain biodiversity and clean air.
- Conserving 13.29 gigajoules of energy provides enough to power a home for several weeks.
- Saving 5,599 gallons of water helps reduce the strain on freshwater resources.
- Avoiding 5.7 metric tons of CO2 equivalent greenhouse gas emissions significantly reduces GHG emissions.
- Diverting 19 kgs or 41.8 lbs of waste from landfills helps reduce landfill space and associated pollution.
Sustainable packaging choices reduce waste and conserve natural resources thereby minimizing overall environmental impact. As environmental regulations become stricter, sustainable packaging offers businesses a way to stay compliant while demonstrating a commitment to preserving the planet.
Social
The “social” aspect of ESG focuses on a company’s relationships and reputation in its communities. While businesses have traditionally been evaluated primarily on their profitability, there’s a growing recognition that they should also contribute positively to society and the environment.
Achieving a more comprehensive view of a company's social performance involves considering its impact on the broader community. Key factors to reflect on are community relations, human rights, health, and safety, as well as contributions to philanthropy and volunteering efforts that enhance societal well-being.
Governance
As ESG policies gain prominence, many Investors now prioritize evaluating a company’s governance practices. Governance focuses on how a company regulates itself, ensuring strong internal controls, adherence to industry best practices, compliance with regulations, and alignment with corporate policies. Beyond using sustainable materials and processes, the implementation of robust safety measures is equally essential in the creation of corrugated packaging. At York Container, the Strategic Packaging Optimization Team prioritizes these principles, collaborating with clients to deliver solutions that are not only environmentally responsible but also safe and reliable.
Sustainable Packaging Criteria for ESG Certification Compliance
If you’re curious about what makes packaging truly “ESG-compliant,” it's important to note that there isn’t just one set of rules. ESG certifications vary depending on the specific standard, but there are some common criteria that sustainable packaging typically needs to meet across different ESG frameworks.
According to experts at York Container, sustainable packaging needs to check off several boxes.
Resource efficiency
Packaging should use materials as efficiently as possible. For instance, using a smaller, well-fitted box eliminates excess space, reducing the need for fillers like plastic or foam. It can also involve selecting lighter, stronger materials that provide adequate protection with less bulk or designing packaging that is easily recyclable or reusable. Efficient resource use also includes incorporating recycled content to reduce the need for virgin resources.
Responsibly Sourced Materials
Manufacturers must adhere to rigorous standards to ensure that the paper products used in packaging come from responsibly managed sources. Committing to environmental standards helps protect biodiversity, support local communities, and promote sustainable practices in material sourcing.
Circularity
Packaging designed with circularity focuses on reusing materials, reducing the need for disposal. For example, corrugated boxes are often designed to be reused multiple times for shipping and storage before being recycled into new boxes, reducing waste and conserving resources.
As part of our parent company’s sustainable initiatives, the bulk of our corrugated boxes are created from recycled material upfront. Our paper manufacturing model reintroduces recycled paper sourced from urban centers and municipal sorting facilities, thereby promoting circularity, conserving energy, and reducing our emissions into the environment.
Energy Efficiency During Production
Sustainable packaging should be produced to reduce the intensity of greenhouse gas (GHG) emissions. Many companies have shifted toward renewable energy in their manufacturing processes to achieve these reductions. Atlantic Packaging’s 2024 ESG report highlighted how reducing GHG emissions intensity by even a small percentage can have a massive impact when multiplied across large-scale packaging operations.
Transparency
Companies must disclose their performance on key initiatives, both social and environmental. This kind of disclosure builds trust with consumers and investors alike. People who see progress are more likely to feel confident in a company's commitment to sustainability.
Factors to Consider When Selecting a Sustainable Packaging Partner
What should you look for in a sustainable packaging partner? Choosing the right partner goes beyond materials. A trusted packaging partner integrates advanced sustainability practices, prioritizes measurable environmental impact, and aligns with your long-term business goals.
To find the right sustainable packaging partner, ask the tough questions. Dig into their material choices, how efficient their production process is, and what strategies they’re taking to minimize environmental impact.
- How efficient are your manufacturing processes? Ask about how they manage resources, including energy use and material waste.
- What happens to the dust and waste generated during production? Ask if they recycle or repurpose waste materials, like dust, and how they dispose of other by-products.
- Do you incorporate renewable energy in your facilities? Using renewable energy to facilitate operations is a strong indicator of a company's commitment to reducing its carbon footprint.
- What certifications back up your sustainability claims? Certifications and adherence to ESG standards help verify that their sustainability efforts are legitimate, not just greenwashing.
Start Your Journey to Sustainable Packaging
Now that we’ve covered the essentials let’s revisit the big question: Why is sustainable packaging important? Sustainable packaging, equipment, and processes are key to reducing environmental impact while helping your company achieve “sustainable” success. Sustainable packaging can also enhance your brand’s reputation, helping you resonate with consumers who prioritize eco-conscious choices. At York Container, we’re dedicated to providing innovative, eco-friendly solutions that help you achieve sustainability goals and streamlined packaging performance.
York Container considers sustainability one of the pillars of our growth strategy. We aim to meet customer demand while minimizing our environmental footprint. Our new state-of-the-art corrugated and converting facility in Elgin, Illinois, is a great example of how we incorporate sustainability into manufacturing. Here are some of the key innovations we've implemented to reduce our impact:
- We shred and bale all paper waste to keep it out of landfills and reuse it effectively.
- We treat and reuse water to minimize waste and conserve resources.
- We capture and reuse steam to heat water and starch, reducing energy consumption.
- We use high-voltage substations to reduce energy consumption.
- We collect dust during production, compress it into pucks, and dispose of it cleanly.
- We designed our facility to require less floor space for storage, improving energy efficiency.
Beyond these notable innovations, our team at York Container takes the time to fully understand your sustainability, efficiency, branding, and long-term business goals, crafting a packaging strategy tailored to these priorities. If you're ready to experience the difference, contact York Container today!