How to be a “Green” converter
A retailer, a packaged-goods maker, two converters and a supplier reveal how their companies "do sustainability."
By Editor in Chief Mark Spaulding -- Converting Magazine, 5/1/2008 2:00:00 AM
Cocktail-party conversation almost always includes those comments or questions meant to impress fellow attendees. But instead of talking about that new sailboat you just bought or hearing about where the best diving is on the Great Barrier Reef, you might just hear, “My carbon footprint is smaller than yours.”
From individuals to companies large and small, it seems as if the trendy focus today is on calling out your eco-status. No one wants to appear to be an energy glutton, a materials waster or (heaven forbid) an actual polluter, especially not businesses that are relying more and more on the positive marketing aspects of a “green” reputation.
But just exactly, how does one “do sustainability,” and for package printers and manufacturers serving consumer packaged-goods makers (CPGs), retailers and ultimately consumers, how does one do “green” converting? For the answer, the Sustainability in Packaging 2008 conference this spring, organized by Intertech/Pira and co-sponsored by Converting and Packaging Digest, provided the insights of a dozen plenary speakers and six breakout sessions ranging from green design and recycling to sustainability metrics and bioplastics.
True “green” consumers
The level of consumers' true environmental concern is no longer in question, says Fabian DeGarbo, sustainable packaging program manager for Austin, TX-based grocery retailer Whole Foods Market, and the conference's lead-off presenter. Eco-friendly products and services will be a significant factor for consumers now and in the coming years, he says. As a first-line driver of sustainability in the packaging market, three-quarters of consumers surveyed say they buy environmentally friendly products, while six out of 10 say they're willing to pay more for such items. For Whole Foods, which last month officially banned plastic bags at checkouts in favor of 100-percent recycled paper bags, it comes as a pleasant surprise that 55 percent of consumers also say they make a special effort to patronize retailers with a “green” reputation (see chart).
On the retailing end of the spectrum, though, conflicts still remain between the clear eco demands of customers and business drivers, DeGarbo says, “the biggest being cost.” In sourcing suppliers (otherwise known as CPGs and packaging converters), a retailer needs to look at a laundry list of factors: materials, company philosophy, location, facilities, applications, and of course, price, he explains.
For example, as a converter, does your business have the same corporate eco objectives as your CPG/retailer customer? Do you donate any profits to environmental causes? Are your materials sourced locally or globally, and what is the carbon footprint of your finished goods?
“There's a lot of competition out there [in terms of price],” says DeGarbo. “Sometimes, the biomaterial simply is not worth the additional cost, while recycled paper is usually not much more [than virgin materials.]”
Where's the carbon?
Taking a step up the supply chain, Kevin Rabinovitch, director of sustainability for packaged-goods maker Mars North America (Rancho Dominguez, CA), detailed his company's five-step Carbon Innovation Process, the goal of which is to reduce environmental impact as much as possible. After mapping the supply chain all the way back, the carbon footprint of each component or step is estimated. Next, the potential of current technology is leveraged; then alternative technologies are explored for additional leverage. Lastly, actions are prioritized and implemented.
For instance, along the way, Mars analyzed the greenhouse-gas emissions from the virgin production, recycling and disposal of four kinds of paperboard, eight types of plastic, glass, steel and aluminum. In many cases, it's hard to tell exactly which packaging is truly more sustainable when raw materials, quantities and recyclability are taken into account (see bag comparison on page 37).
Rabinovitch warned CPGs and converters to look beyond the direct impacts of their material/process choices. “Make sure while you fix one issue, you're not creating another,” he says. The Carbon Innovation Process implies an understanding of a product's complete footprint, so be forewarned that “ultimately, you're accountable for it all.”
More opps than risks
At Amcor, Ltd., sustainability and “green” package manufacturing is having the right balance of creating strategic opportunities and mitigating risks, says Mick Blake, group sustainability manager for the Australia-based converter of flexibles, labels and cartons as well as rigid containers. Opportunities include operational improvements, positive marketing and new product development; conversely, risks run the gamut from physical (climate change) and regulatory (emissions trading) to litigation (failure to meet climate-change issues) and reputation (consumer backlash).
Fortunately, a McKinsey Global Survey shows one in four manufacturers feel that the opportunities presented by climate change outweigh the risks, Blake says (see chart). And along those lines, 61 percent say that a well-managed, climate-change strategy will have a positive effect on profits.
The charge at Amcor was lead last year by Ken Mac-Kenzie, managing director and chief executive officer. “Ethically, as global citizens, our responsibility to future generations is crystal clear,” he says. “As stewards of our shareholders' funds, the business case for sustainability is equally clear.”
So, Amcor has adopted a companywide focus on sustainability goals, based at the operational/tactical level of the company. In practice, the managing directors assign Sustainability Champions from each business group to develop global targets. Among these: A 60 percent greenhouse-gas emission reduction of 2005-06 levels by 2030; a 30 percent cut in waste-to-landfill by 2011; with a zero waste-to-landfill target as the longer-term objective.
“Amcor's targets are aggressive and leading,” says Blake, but they are also in-line with United Nations projections of cuts that would be required to have a significant impact toward slowing climate change.
Triple bottom line
For sustainable packaging to truly be successful, it must also equally protect the product and promote the brand, explains Barbara G. McCutchan, director of enterprise stewardship and sustainability at Glen Allen, VA-based paperboard-packaging giant Meadwestvaco Corp. “Sustainable packaging optimizes the balance of social, economic and environmental benefits (a triple bottom line), protects the product, and communicates the brand and other information at each step of the packaging lifecycle,” she says.
How can leading converters accomplish these goals? By thinking beyond simple compliance, McCutchan advises. At MeadWestvaco, that entails investigating both renewable and non-renewable resources, guaranteeing fiber sourcing via forest certification, being an environmental steward during manufacturing, meeting best practices for labor and safety in converting operations, and ensuring the safe and efficient use of the end product.
Less energy = More $$$
“Addressing sustainability via energy savings can provide a real cost advantage, while allowing your company to show a commitment to your clients,” says Steve Rach, senior account executive for pollution-control and drying equipment provider MEGTEC Systems of DePere, WI. Energy savings can be achieved by insuring your equipment is properly maintained; upgrading systems to positively impact energy use; look at methods to cut energy within your plant; and investigate new equipment to yield energy savings while also increasing reliability. He provided these suggestions at the PLGA Global's winter conference.
Because many converting operations require thermal oxidizers to deal with volatile organic compounds or employ dryers in some form, the concept of secondary heat recovery is getting a lot of interest, Rach says. Thermal oil, air-to-air heat exchangers, air-to-glycol, air-to-steam boilers and even air-to-water systems all offer a way to use the otherwise “wasted heat.”
“Any reduction in energy consumption controls costs,” Rach explains. “Adding on a secondary heat-recovery system may not even require re-permitting or employee training although minimal downtime may be necessary.” How to pay for it? Many states have programs for partial funding, tax incentives or low-cost loans, Rach says.
So, you want to be a “green” converter? Then learn this: 1) The ultimate market driver—consumer eco concern—is here to stay. 2) Carbon footprints are now a standard measure—the smaller the better. 3) Don't be afraid to set aggressive targets for “sustainability.” Lukewarm efforts may be detrimental. 4) It's the brand, stupid. Never lose sight of its long-term importance for the customer and consumer; and 5) Saving energy via well-maintained older equipment and/or new systems can only help you come out ahead in the long run.
| MORE INFO: | ||
| INTERTECH/PIRA, 207/781-9800, fax: 207/781-2150, www.intertechpira.com | ||
| WHOLE FOODS MARKET, 512/391-8400, www.wholefoods market.com | ||
| MARS NORTH AMERICA, 973/691-3536, fax: 908/850-2734, www.mars.com | ||
| AMCOR, LTD., 61/3-9226-9000, fax: 61/3-9226-9050, www.amcor.com | ||
| MEADWESTVACO CORP., 804/327-5200, www.meadwestvaco.com | ||
| MEGTEC SYSTEMS, 800/862-6943, fax: 920/339-2793, www.megtec.com | ||
Coating Excellence now certified SGP printer
03/14/2010Putting the “green” in“green”
05/31/2007Robbie Flexibles now a certified SGP Printer
02/04/2010Substrate capabilities book
08/16/2009
