Environmental, social, and governmental guidance, or ESG, is no longer an emerging topic, it’s part of the establishment for most OEMs and manufacturers these days. Yet while a recent Association of Packaging and Processing Technologies survey shows that more companies than ever are making plans to adopt new strategies, the implementation is in its infancy. One incredibly effective way for companies to hit their emission reduction targets is to improve the sustainability of their packaging. Innovative materials can reduce weight and waste, increase reusability and recyclability, or all of the above.
UFP Packaging can provide holistic services to optimize sustainability throughout the process. As a total solutions provider, we will examine the entire unit load design to identify more sustainable options such as using sustainably harvested wood, recyclable corrugated material, or wood pallets that last more than five years and can be recycled at the end of their life cycle. Our unique approach can even investigate a manufacturer’s supply chain to determine any efficiencies that can be made upstream.
There is a common misconception that sustainable packaging materials and solutions are automatically more expensive. However, this does not take into account all the factors associated with costs throughout the supply chain. There are financial and reputational costs for not improving sustainability metrics, which can increase shareholder or marketplace pressure for companies. Also, packaging is increasingly subject to fees such as “Extended Producer Responsibility” in Maine and similar regulations globally.
"The three pillars of sustainability are economic prosperity, environmental impact, and human health and welfare, and all of these pillars connect to the supply chain,” says Marshall White, Professor Emeritus at Virginia Tech University. “To determine decarbonization levels, look at the mass of the pallet you’re using. Reducing that mass reduces the global warming potential of the unit load.”
Wood pallets require very few processing chemicals and little energy to assemble. Adding these factors to wood’s sustainability and recyclability leads to improved scores on ESG reports. UFP Packaging’s sustainably harvested wood provides an advantage over reclaimed packaging such as used pallets, which can increase emissions when shipping or undergoing repairs. These lighter-weight alternatives can also reduce shipping and fuel costs, and avoid punitive fees around single-use plastics and non-recyclable materials.
Holistic packaging improvements will only become more impactful in the near future, as more states pass Extended Producer Responsibility legislation. These laws are already enacted in four states with more under current consideration, which require companies to take financial and/or operational responsibility for their products’ end-of-life. Global companies must also follow European regulations when shipping to the EU or acting as a supplier for an EU-based organization. “European companies require a decarbonization program from their suppliers because they have to show it to their customers,” says White.
It's becoming clear that sustainability is not a luxury or a fad, and finding a partner like UFP Packaging to help improve ESG metrics is vital in today’s marketplace. Sustainability initiatives improve companies’ bottom lines through increased efficiency savings and productivity, including reduced energy bills or higher throughput as a result of upgrading to more efficient machines. By viewing the product lifecycle and unit load holistically, industries can improve the sustainability of their entire supply chain, thereby saving resources and money.
