24 PW FEB2022
SUSTAINABLE PACKAGING
By Anne Marie Mohan, Senior Editor
The Risks for Brands of Not Doing Enough reporting this information; in 2021, that number rose to 24. Although, In a recent article in The Financial, Gartner, she adds, a drastic increase in the number of companies disclosing Inc. estimated that 90% of those companies this information is vital. “This is an important indicator for investors that have made commitments to sustainable packaging—in particular, to track how companies can simultaneously balance growth while 100% of their packaging being reusable, recyclable, or compostable decoupling that growth from plastic, especially disposable plastic,” by 2025—will not meet their goals. That begs the question, what she explains. “Are these companies growing while exploring reuse, for happens then? Is it merely about consumer perception? Are consumers instance, or are they growing while continuing to rely on disposable even aware of these commitments? Who’s keeping track? packaging? Without having data on the tonnage of plastic and overall One organization that’s keeping very close track is As You units sold, this is an evaluation that can’t be made.” Sow. As You Sow is a non-profit foundation chartered to promote And this is where companies begin to see the consequences of corporate social responsibility through shareholder advocacy, coalition not making progress toward or meeting their published sustainable building, and legal strategies. Last year, the foundation released packaging goals. According to Bruno Monteyne, Senior Analyst at a comprehensive report, the “2021 Corporate Plastic Pollution investment research house Bernstein Autonomous, who spoke Scorecard” (see pwgo.to/7458) that evaluated 50 of the largest during a webinar on the As You Sow scorecard, “Whether you call it consumer-facing companies in North America against 44 metrics a fad or not, there’s a massive obsession in the asset management divided among six pillars of corporate responsibility on plastic industry with ESG [environmental, social, and governance issues]. The packaging: Packaging Design, Reusable Packaging, Recycled Content, big institutional investors want to make Public Data Transparency, Supporting sure that how they invest their money Recycling, and Extended Producer This transition to more sustainable is in line with these ESG goals. And Responsibility (EPR). packaging or no packaging is obviously plastic is a very big part of the To compile the scorecard, As You extremely expensive. If you don’t do environmental issue. It’s such a big trend, Sow gathered metrics information for each company from sources such as the it quickly enough with the right R&D, if a company doesn’t do enough in this area, it will struggle to attract investors.” Ellen MacArthur Foundation’s Global you risk being at a cost disadvantage. A second risk, he shared, is to the Commitment 2021 Progress Report and company’s brand. “Big companies live by from companies’ sustainability reporting. the grace of their consumers,” Monteyne said. “They have a right to From that information, As You Sow gave each company a grade in charge $10 for something that only costs $2 to manufacture, but they each pillar and an overall grade, from A to F. Spoiler alert: None of can only earn that right through an emotional connection with their the companies in the report received an A, and only one received a B. consumers. Therefore, as this topic shoots up on consumers’ priority The rest of the 49 companies received a C, D, or F. Who got the B, you list, failing to act poses a massive risk.” ask? The Coca-Cola Company. Another risk, he shared, is around legislation. Although all of the Among the more notable findings in the report, As You Sow companies in As You Sow’s report have North American operations, a reported a ninefold increase in the number of companies having a majority also have operations in Europe, where packaging legislation, plastic reduction goal, compared to the number of those that reported especially around the reduced use of virgin plastic, is progressing having one in the foundation’s “2020 Waste & Opportunity” report; quickly. “If a company is not ready for this transition, they risk legal a majority of the 50 companies have committed to 100% recyclable, consequences,” he said. compostable, or reusable packaging; and although the reusable pillar And finally there is the cost risk. “This transition to more was one of the lowest-scoring pillars, the majority of companies sustainable packaging or no packaging is extremely expensive,” evaluated are beginning to explore reuse, with some conducting pilots. Monteyne explained. “If you don’t do it quickly enough with the right Also uncovered, an increased number of companies—now nearly R&D, you risk being at a cost disadvantage. half—have established goals around the use of recycled plastic In conclusion, Monteyne explained that “there are plenty of content. “However, the availability of supply is lacking, and in order for risks—sales risks, legal risks, cost risks, and profitability risks” to not companies to meet their goals, they need to support policies that will meeting company sustainability commitments. And companies can increase the availability of recycled material,” shares Kelly McBee, Waste bet firms such as his will be closely monitoring reports, including Program Coordinator for As You Sow and the author of the report. as You Sow’s scorecard, to point investors in the right direction. Be One positive trend, McBee notes, was the increase in companies advised, as in the classroom, an F isn’t going to cut it. PW reporting the amount of plastic they use. In 2020, only 11 were
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