Green Packaging Leads to Greener Bottom Line

No longer dismissed as a fad or a function that willreduced by 65% as the messenger bag is made
yield little ROI, sustainability is now at thefrom 100% recycled materials.
forefront of retailer and supplier corporateChange Materials: Utilize virgin materials from
objectives. Whether they buy into the warningsrenewable sources and design for recycling and
about climate change or dismiss it as a bunch ofre-use. One example was a Lexmark print
hot air, trading partners recognize that greencartridge package made with SmartCycle 150
initiatives offer a chance to build their brands andPET, which replaces PVC, and can be recycled.
drive cost savings. As a result, new strategiesAnother example was from a company which
aimed at reducing waste and conforming tosupplies Cargo Cosmetics with VegetalPlastic for
environmental best practices in packaging areone of its make-up lines. The tube is made from
taking root.PLA, a product that saves 60% of fossil fuels
At the VCF VisionSync 2009 Conference incompared with traditional polymer and reduces
Tampa, FL, June Anderson, partner at thegreenhouse gases by 90%. Also, the carton is
Packaging Knowledge Group, said the businessmade out of recycle paper infused with wildflower
case for sustainability was given a major boostseeds. Just moisten the carton and plant it!
from the world's biggest retailer. Walmart isReduce Materials: Use only the amount of material
leading the way with its sustainable packagingnecessary and optimize product design. Nestle
initiative and its plans to develop eco-ratings forWater claims to have the "lightest half liter
the products it sells, which she said will forcebeverage container in the world" that uses 30%
other retailers to boost their sustainability efforts.less plastic than previous containers and contains a
"Walmart will be asking all of you to help it meetlabel that is 30% smaller, she noted.
its packaging and sustainability goals." This meansImprove Cube Utilization: Redesign packaging for
there is no better time for industry players to putoptimal cube utilization and easier transport.
packaging at the forefront of their cost-savingAnderson showed photos of watermelons grown
and sustainability efforts.in boxes so they would be square and easier to
She said organizations should start by developingstack in the retail stores and during the shipping
their vision and goals around sustainable packaging,process. In another case, Sam's Club has changed
gather data and identify key metrics that will helpthe design of milk jugs to a square shape. The
them measure and assess performance. Theyresult is that trucks hold 4,707 more gallons (9%
should observe what peer companies are doing inof capacity) which reduces shipments and saves
designing products and packaging and develop667,000 metric tons of carbon being released into
programs for continuous improvement. Some ofthe atmosphere, she said. The down side is that
the metrics currently being measured in manymilk is harder to pour from square jugs and some
organizations include reducing emissions andconsumers are literally crying over spilt milk.
waste, cutting back on water and electricityUltimately, Anderson said, Sam's Club must weight
consumption, and utilizing alternative resources inthe pros and cons of this new design and
making products and packaging.estimate whether the savings outweigh the cost
Companies must also consider the elements ofof consumer complaints.
packaging that they cannot afford to lose. TheyChange Energy Sources: Use renewable energy
cannot compromise on:sources for manufacturing and distribution and
Containment: The ability to hold the productparticipate in renewable energy credit programs
Protection: Maintaining the integrity of the productto drive demand. In one case that Anderson cited,
and protecting it from the environment whileOrigins cosmetics uses paperboard for its outer
protecting the environment from the productpackaging. This includes 100% renewable energy
Communication: Communication with thefor paper production, converting and printing.
consumer is paramount. Packaging must containChange the Product: Optimize product design for
information about the product's value so it will sell,less packaging need. The widespread use of
as well as required regulatory informationconcentrated laundry detergent serves as a good
Utility/Convenience: Package features that conveyexample, she said. It has three times less water in
product function and performance and addressesit than traditional detergents. A 32 ounce bottle will
ease-of-usewash 32 loads, while the traditional 100 ounce
Today, Anderson noted, materials and convertingbottle is needed to wash the same amount. The
processes are mostly fossil fuel based, althoughresults are 55% less plastic used, 50 million pounds
some cutting edge companies are making theof plastic and 300 million gallons of water saved
conversion to renewable energy sources. "In theannually, the elimination of 750 million square feet
future, you will see more and more companiesof corrungated warehousing and reduced shipping
making the transition. " She cited the examples ofcosts as 200% more product is shipped per truck.
wind turbines on top of the exterior lighting atFor the retailer, the product uses only half the
some Walmart stores. In determining carbonshelf-space. In May 2008, Walmart switched its
footprints, "it is a well known fact that nearlyentire laundry category to concentrates.
75% of the impact comes from the supply chainAnderson also cited that case of Nike, which
and is unreported." Ultimately, many changes inintroduced the Nike Trash Talk line of basketball
business practices will be required.shoes made entirely from manufacturing waste.
Anderson identified six steps to achievingThe upper shoe is pieced from leather and
sustainable packaging that makes sound financialsynthetic wastes from the factory floor and the
sense.mid-sole uses scrap-ground foam from factory
Eliminate Materials: Optimize the design ofproduction.
packaging that reduces space and eliminatesUltimately, sustainability can result in sustainable
unnecessary materials. As an example, shesavings and significant brand boosting, so
showed a lightweight HP Notebook computer thatAnderson urged those in attendance to develop a
is sold in a messenger bag. This has reducedclear business strategy for developing more
consumer packaging by 97%, a tremendous costenvironmentally-friendly packaging that gets
savings. Moreover, overall packaging waste waspositive notice and builds consumer loyalty.