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CEO blasts top corporations after controversial move comes to light: 'This signals a troubling shift in attitude'

"It's important to nail down realistic, impactful goals."

"It’s important to nail down realistic, impactful goals."

Photo Credit: iStock

The CEO of EcoEnclose, a sustainable packaging company, has urged similar businesses to avoid scaling back sustainability commitments 

What's happening?

In an Op-Ed in Packaging Europe, CEO and chief sustainability officer at EcoEnclose Saloni Doshi called on the packaging industry to not follow the example set by Coca-Cola, PepsiCo, and Unilever, who have all reneged on goals to use more recyclable packaging.

According to the United States Census Bureau, the nation's e-commerce sales in 2024 were estimated at $1.193 trillion, an 8.1% increase over 2023. With the ease of buying online and the coronavirus pandemic changing our shopping habits, more purchases are being made on the web, leading to excess packaging material.

In the U.S. alone, there are approximately 21.45 billion packages delivered per year. This leads to an increase in cardboard used, as well as more plastic packaging. According to Business Waste, 141 million tonnes of plastic packaging are produced each year, contributing to 40% of all plastic waste.

However, large brands have been reducing their commitments to sustainable packaging and shipping. Coca-Cola, for example, reduced their recycled packaging goal from 50% by 2030 to 35-40% by 2035.

"This signals a troubling shift in attitude in business attitudes, that sustainability targets are somehow arbitrary," said Doshi. "If companies miss a goal, they simply lower the bar or delay the deadline by another decade."

With the increase in online sales, Doshi argued that now is the best time for companies to commit to sustainable goals.

"Brands should use the retail boom as a chance to front-foot the costs of overhauling its packaging mix, including data disclosure, phasing out highly-taxed materials, and adopting more sustainable packaging solutions," she urged.

Why is sustainable packaging important?

Plastic, which isn't degradable, can cause soil and water pollution, endanger wildlife, and cause health problems for humans, according to the Environmental Protection Agency (EPA). Even the production of new cardboard contributes to the loss of habitats and the warming of the planet. This makes it so important for companies to embrace sustainable and recycled packaging.

Bradley Saveth, president of SupplyCaddy, said in a piece for Forbes that reducing plastic and styrofoam could "not only reduce the carbon footprint but also promote a circular economy by closing the loop through recycling and composting processes."

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As Doshi noted, consumers are also concerned with sustainability. A study from Nielsen and McKinsey found that 78% of consumers find a sustainable lifestyle important. In the United Kingdom, 26% of shoppers would stop ordering from a company with excess packaging, according to packaging producer DS Smith.

Additionally, the U.S. federal government and certain states, such as California, also have laws in place to curb packaging waste, forcing companies to reconsider their shipping options.

Due to pollution from waste and shifting societal and governmental opinions on sustainable packaging, Doshi urged companies that now is the time to invest in sustainable packaging instead of scaling back their goals.

"The strong, stable, and buoyant market gives brands an opportunity to step back, assess their packaging solutions, and invest in a long-term packaging strategy that allows them to meet their sustainable packaging targets," Doshi said. "It's important to nail down realistic, impactful goals tailored to their business."

What's being done about sustainable packaging?

According to Doshi, some companies are having success in hitting their sustainability goals.

"The clothing brand Ted Baker set out to reuse 20% of the boxes they use for shipping every year, and exceeded that target with an average reuse rate of 27%," Doshi noted.

Xfinity Comcast has a packaging design that reduces plastic waste and utilizes recycled materials. Amazon is also testing out bio-based bags in Spain. Meanwhile, DS Smith is experimenting with built-in strips in shipping materials so that boxes can be easily resealed.

Additionally, other brands and supermarkets are aiming to reduce plastic waste with tethered caps on bottles and plant-based packaging.

"Companies that act now won't just reduce their environmental impact, they'll be ahead of the curve when new regulations arrive, and those that hesitate risk falling behind," Doshi said.

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