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Suppliers and converters are answering the call to advance the label and packaging industry’s efforts in helping brand owners go green.
July 17, 2023
By: Greg Hrinya
Editor
By: Steve Katz
Associate Editor
In terms of trending topics in the label and package printing industry, sustainability remains at the top across the value chain. A recent global survey from market research firm McKinsey & Company reveals that about 75% of organizations have made clear sustainability commitments toward packaging. However, the firm says, fewer than 30% are well prepared to meet regional requirements, much less internal aspirations. Thus, progress is ongoing, and there is much work to be done, as many brands and businesses still lack clear metrics surrounding recyclability, sustainability, or recycled content. “Consumers value sustainably-sourced and manufactured products – so much so that this has led to 2.7 times faster growth for sustainable products versus traditional goods, despite price premiums over their conventional counterparts,” according to McKinsey & Company. “Meanwhile, policy makers and regulatory bodies are responding to public sentiment by implementing regulations related to single-use packaging while also placing extended producer responsibility (EPR) on consumer-facing products. Currently, Europe is leading the way on most of these regulations; however, governments in Asia–Pacific and North America are developing similar legislation. All trends in consumer preferences, regulations, and government actions point toward sustainable packaging becoming a key focus for sustainability efforts.” In the post-pandemic world marked by inflation and supply chain disruptions, meeting sustainability goals has even greater challenges. Within the narrow web converting sector, advancements continue to be made that overcome obstacles while helping to further eco-friendly efforts in both B2B and B2C environments. “Sustainability is more important than ever before,” says Avery Dennison. “Brands’ commitments on sustainability have accelerated as consumers demand action. Brand focus on sustainability is also driven by investors and the potential for regulation on sustainability disclosure. As a result, converters are also seeing this. Converters are now being asked more frequently to support these requests for sustainability disclosure, data, and transparency on their sustainability practices.” Converters have responded, instituting numerous practices in their facilities to meet this trend. Penmar Industries, based in Stratford, CT, USA, has switched exclusively to water-based inks – eliminating all solvent-based inks – and converted to solar power with panels on its roof. “One of my biggest goals when we moved into this facility was not only to make it a better environment for production, but also to be conscious of the community and our environmental footprint,” says Rick Cipot, Penmar’s operations and general manager. “One of the first steps was getting rid of solvent inks and going with water-based inks.” Sustainability can also come in the form of energy – or saving energy, for instance. Curing specialists, such as GEW and Phoseon Technology, have enabled converters to cut down their energy usage by large margins by pivoting to UV LED curing. The interest is palpable, too. US states, such as California and Washington, are already requiring beverage companies to include 15% PCR in their plastic containers. This increase in demand can be felt in PCR resin pricing versus their virgin grade counterparts. “Customer interest is coming from both sides of the value chain,” adds Avery Dennison. “Increase in consumer demand for sustainable solutions has large brands pushing for sustainable solutions and 2030 goals. On the other end of the chain, recyclers and MRFs are requesting laser focus on design for recyclability. The removal of detrimental and non-recyclable packaging is instrumental in increasing the yields, purity and output of recycled resin that can be used in a circular economy.” Sustainable commitments are nearly universal. Fedrigoni Self-Adhesives, for example, has established a target of 2030 to have 100% of its standard product portfolio with a solution enabling recyclability or reuse of packaging. This might include recyclable materials, compostable solutions, or wash-off capabilities, with LCA on demand. Melissa Harton, Fedrigoni’s marketing manager, North America, says, “Additionally, we look to have 95% of our supplier base qualified to ESG criteria, with pulp 100% covered by FSC claims.”
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