FMN | May 27th, 2019

Sustainable Goals (Cont’d from Page 1)

the Sustainable Packaging Coalition (SPC) found that 86 percent of the close to 100 companies surveyed have either concrete goals or statements of support that ad- dress one or more concepts in sustainable packaging. Many goals center on recyclability, material and vol- ume efficiency, responsible fiber sourcing, eliminating unfavorable materials and using post-consumer recy- cled content and renewable materials. It’s critical to ground ourselves and ask:Why should companies create sustainability goals? There are a host of reasons they should create sustainability goals broadly and sustainable packaging goals specifically. Those range from economic motivators to social and moral drivers. Four of the most important reasons we believe companies should set goals: 1. To get ahead of regulation : Setting and working toward sustainable packaging goals is a great way of setting your company up to meet or exceed regula- tions. In the European Union, companies must comply with ample legislation around packaging. Canada has many provincial-level legislative requirements. In the United States, while a few states are using policy to impact change in packaging,we see a greater presence of cities and municipalities using regulation. 2. To be proactive against reputational risk and los- ing social license : This is a large component of why companies should and do craft sustainable packaging goals. For example, if you know activists target com- panies on deforestation issues, it serves you well to be able to say that you have a goal for responsible fiber sourcing to help demonstrate your commitment to preventing deforestation and removing deforestation from your supply chain.Alternatively, if you know that perceptions around single-use plastics are coming to a boil, it’s valuable to say that your company has been voluntarily working on ways to improve plastic pack- aging in the form of a corporate commitment. 3. To anticipate market changes : Sustainability is now mainstream, driven by millennials and younger generations that are gaining purchasing power. In the most recent Deloitte Millennials survey, almost 40 per- cent of respondents stated that the goal of business should be to “improve society” (second only to “gener- ate jobs” in terms of priorities).There’s also more con- sumer engagement with brands on social media, and more of a demand for transparency,which has a direct impact on packaging. In terms of risk, businesses can- not succeed in a world of environmental, economic and social instability. Companies and some investors today increasingly recognize these risks as threatening supply chains and stable markets for future growth.


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The ARChitects of Flexo

Flexo Market News May 27, 2019 5

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