Driving Sustainability

DS Driving Sustainability

At DS Smith they appear to have got sustainability all wrapped up. So we asked this dynamic FTSE 100 company, where they stand with sustainability right now, and where they would like to be. Wouter van Tol, Head of Sustainability & Government Affairs at DS Smith, provided some revealing answers.

How ‘sustainability-aware’ would you say your company is and what recent measures have you taken to improve your overall contribution to the circular economy?

“Quite simply, sustainability sits at the heart of everything we do at DS Smith. As a leading provider of sustainable fibre-based packaging worldwide, we play a central role in delivering fully recyclable solutions through the value chain and across sectors including e-commerce, fast moving consumer goods and industrials. We have a circular business model, with our packaging business being complemented with recycling and paper making operations.

Through our purpose of ‘Redefining Packaging for a Changing World’ and our Now and Next sustainability strategy, we are committed to leading the transition to the circular economy by focusing on a number of key areas including - replacing problem plastics, taking carbon out of supply chains and providing innovative recycling solutions.

In relation to sustainability, what would you say have been your most important milestones?

One of our most important recent milestones is the launch of our Circular Design Principles, created to support companies to design out waste and keep materials in circulation for as long as possible. In Europe for example, we revealed that 1.5 billion tonnes of plastic per year in Europe’s supermarket aisles could be replaced with alternative renewable materials. By implementing the Circular Design Principles, materials can be recycled or reused into new products so that the total environmental impact is minimised.

Another pivotal moment for us over the past year was the launch of our “Now and Next” sustainability strategy, which maps out our ambitious environmental goals for the next decade. Part of these commitments include; manufacturing 100% reusable or recyclable packaging by 2023, optimising every fibre for every supply chain by 2030, taking 1 billion pieces of problem plastic off supermarket shelves by 2025, and equipping 100% of our people to the circular economy by 2025.

DS Smith has also hit a number of sustainability milestones including an 11% reduction in emissions in 2019 compared to 2015 on a like-for-like basis and 100% engagement in community programmes across all its sites employing more than 50 people.

“ DS Smith has also hit a number of sustainability milestones ”

In your opinion what have been the most significant developments in terms of recycling and bio-degradable packaging?

The most significant development in biodegradable packaging has been our partnership with Aquapak, an innovative developer of biodegradable polymer. The partnership will allow for traditional plastic films on a range of fibre-based packaging to be replaced with Aquapak’s HydropolTM, a biodegradable and watersoluble polymer that will allow for less contamination in the recycling and paper-making process, especially in regard to hard to recycle items.

Adding to this, the issue of rogue plastic in recycling mills is rife, and to take further action to alleviate this problem, we have introduced state of the art quality measurement tools, such as Near Infrared technology to assess the quality of material arriving from household and commercial collections to improve segregation methods.

What do you consider to be the most promising market opportunities for your company at this time?

E-commerce, plastic replacement, and consumer demand for sustainable packaging are three key trends that present exciting opportunities for DS Smith both now and moving forward. The pandemic has propelled the growth of e-commerce and research shows that many of the online shopping habits European consumers have adopted are here to stay. As such, brands need to adapt to this trend now and our expertise in this space can help meet their needs for robust sustainable ecommerce packaging. But it’s not just e-commerce that is changing, as we all know the tide is turning on plastics and that’s also something we’re in a perfect place to respond to. We are offering hundreds of products that mean that brands and business can leave single-use plastic packaging firmly in the past. Related to this, consumers are also showing support for sustainable packaging. Recent figures show that almost a third of European shoppers say they have stopped buying particular brands altogether because their packaging was not sustainable. This is rightly putting more pressure on brands to ensure they are taking steps to make their packaging as eco-friendly as possible and as the experts in this field it’s something we are well placed to support them on.

What are the key drivers for change in your industry sector and how much is the on-going pressure for greater sustainability and recycling affecting your productivity?

We welcome the pressure for brands and packaging providers to be more environmentally responsible when it comes to their products. As we have sustainability at our core, the consumer and business demand for more recyclability in packaging is something we’re thriving on. We work very hard to help brands and business across the world address this pressure by developing more sustainable packaging solutions and more efficient supply cycles. Another key driver is legislation, as the world pushes towards a green recovery changing laws, policies and rules mean that governments are clamping down on plastics and business should be getting ahead of this by embracing sustainable alternatives to plastic packaging such as the ones we offer.

As we are keen to understand more about the latest trends shaping the packaging industry in your sector, what do you consider to be the most significant recent developments?

Covid-19 has led to an explosion in online shopping and this rise in e-commerce is predicted to remain – a DS Smith study found 66% of Europeans say they have shopped online more since the initial lockdown in March 2020. As e-commerce becomes the shopping channel of choice for many more consumers business need to adapt their supply chains. Developments mean that integrating more tracking technology into packaging, such as NFC and RFID tags, provides more data to be able to optimise their supply chains.

We have also witnessed a clear shift in consumer values, and people increasingly want brands to help them live more sustainably – in fact, DS Smith recently found that 71% of respondents believed long-term climate change is as serious a crisis as Covid-19. Lastly, we’re also seeing a stellar customer experience become more important.

Shopping may never quite be the same again after the pandemic and packaging provides a unique way for brands to connect and engage with customers - driving emotional responses and making it easier for them to identify with their company, products and people. As such, we’re seeing storytelling grow as a trend in the retail sector, which elevates on-package branding to the next level.

“ DS Smith continues to set the benchmarks for the packaging industry by creating a more sustainable world ”

Can you describe your product portfolio and its sustainability credentials?

With circularity at the centre of our business model, all our products have outstanding sustainability credentials. We serve virtually every sector, from e-commerce and fast-moving consumer goods to industrial. Our approach is based on collaboration as we develop customised packaging designs that address each customer’s specific needs. This enables us to minimise amount of material while optimising packaging performance.

Are you planning the launch of any new products in the foreseeable future that you can tell us about?

One area where we focus on new packing solutions is e-commerce. With the e-commerce market growing incredibly fast over the last year and more businesses moving to online sales, there is also increased pressure on sustainable packaging. We are offering growing ranges of sustainable e-commerce solutions that meet new customer needs and replace single-use plastic. It includes paper-based fillers to protect products during shipment instead of EPS foam and paper-based returnable mailers to mention a few examples.

How has the Covid 19 pandemic affected your production and manufacturing capabilities?

Whilst the onset of the Covid-19 global pandemic has caused widespread disruption and economic uncertainty, our business has demonstrated its resilience and adaptability in order to serve our customers to the highest of standards. Not only this, but corrugated packaging has been essential during the pandemic to keep goods moving and replenishing shelves as quickly as possible, even during a testing time.”

DS Smith continues to set the benchmarks for the packaging industry by creating a more sustainable world. From its latest ‘Circular Design Principles, to its ‘Now & Next Strategy and Water-Soluble Polymers, SPN believes that when it comes to sustainability, DS Smith really does have it all wrapped up.