Smurfit Westrock: How to Become a Sustainable Manufacturer

Smurfit Westrock, a global leader in sustainable paper and packaging manufacturing operates across 40 countries with more than 100,000 employees.

The company has more than 500 packaging conversion facilities, and 62 paper mills.

With its vast operations, a value chain of Smurfit Westrock's scale could generate significant emissions and pollution.

However, the Dublin-based company, formed through a 2024 merger of Smurfit Kappa and WestRock, boasts very strong sustainability credentials.

A fact which it's Group CEO Tony Smurfit highlights as a major strength.

“We believe that this combination has created the go-to leader and partner of choice in sustainable packaging," he says.

"I’m proud to be chosen to lead this great team of people.”

A key goal of the merger was to extend the group's market presence in North America and Europe, where there is a growing push to replace plastics with sustainable alternatives.

Having already demonstrated its commitment, Smurfit Westrock is now sharing its expertise, advising manufacturers globally on how to better achieve their sustainability and ESG goals

1. Increase transparency

For the global manufacturers, evaluating a business's sustainability means analysing both the information it shares and what it leaves out.

Responsible companies should provide current performance data, future goals, and action plans.

However, a lack of transparency can suggest that a business is either hiding something or unaware of important details.

Smurfit Westrock advises transparent businesses to focus on key areas:

• Sustainability reports: Published data following standards, ideally verified by third parties.
• Clear product labelling: Straightforward packaging information with necessary environmental qualifications.
• Traceability evidence: Certification of ethically sourced materials and labour, including vetting of subcontractors and suppliers.

2. Set long-term ESG targets

Smurfit Westrock believes sustainable manufacturers must focus on setting measurable targets, especially those that can be tracked in a sustainability report.

A prime example cited by Smurfit Westrock is Patagonia, known for its comprehensive ESG reporting.

Key elements of strong ESG reports include:

• Clear, ambitious, time-bound targets: Measurable goals with specific deadlines.
• Comprehensive scope: Addressing all aspects of environmental and social responsibility, such as emissions, resource use, safety, and diversity.
• Progress updates: Regular reports on the status of goals, including percentage completion.

3. Consider the sustainability of all your business operations

Smurfit Westrock highlights itself as a model of best sustainable manufacturing practices.

Its paper mills aim to recirculate and reuse the water in the papermaking process.

By-products from its kraft pulping and papermaking are also used to generate electricity and steam, which power its manufacturing operations, emphasising circularity.

Key aspects Smurfit Westrock seeks in sustainable operations include:

• Circularity in production: Closed-loop systems minimising waste, promoting recycling, and regenerating natural materials.
• Comprehensive circularity: Extending sustainable practices to office spaces, packaging, and operations through recycling, energy conservation, and employee education.
• Innovation investment: Researching eco-friendly materials and technologies to enhance sustainability in the industry.

4. The rise of sustainable packaging

The shift toward more sustainable packaging is a challenge for the entire manufacturing industry.

Smurfit Westrock as a leader in the area highlights some key actions manufacturers can take today to make a positive ESG impact:

• Curbside recyclable materials: Materials recyclable through local collections are more likely to be reused. Only 9% of plastic is recycled, compared to 68% for fiber-based and 90% for corrugated cardboard packaging
• Customers love sustainability: Smurfit Westrock stresses that sustainable packaging boosts customer satisfaction, providing long-term value for investment
• Circular design principles: Design easily recyclable packaging or offer return programs for reuse/recycling. Lush Cosmetics is cited as an example, using minimal, biodegradable packaging with in-store recycling options
• Minimalism: Reduce material use to minimize waste and lower transport emissions by designing smaller package volumes

4. Stop talking and take action

Sustainable manufacturers prove their commitment through actions, not just words. Early in this sustainability guide, Smurfit Westrock warns about the risks of greenwashing.

Ways to avoid making empty claims include:

• Data-driven commitments: Support sustainability claims with hard data, whether it’s emissions, recycling rates, or water usage
• Substantial investments: Significant investments in initiatives like renewable energy, hybrid fleets, or energy-efficient buildings yield real results. Businesses can also opt for quick wins like low-energy lighting, power-saving screens, or more recycling bins
• Third-party validation: Having claims independently verified is crucial. For example, approval from the Science Based Target Initiative (SBTi) ensures compliance with global standards.

6. Getting third-party certifications

Smurfit Westrock understands how valuable third-party certifications can be to driving manufacturing sustainability.

These independent certifications can greatly enhance a company's sustainability credibility, validating their commitment to the cause.

Here are some certifications Smurfit Westrock suggests:

• Industry-specific certifications: Companies should seek ESG certifications relevant to their sector. For Smurfit Westrock, these include USDA, Forest Stewardship Council, Sustainable Forestry Initiative and PEFC
• Recognition at various levels: Recognition follows when businesses excel. Smurfit Westrock cites its 2024 PAC Global Best in Class award for Sustainable Packaging Design as an example
• B-Corp status: Although not essential, B-Corp status is a prestigious ESG standard, representing high social and environmental performance, transparency and accountability.

While this list is by no means exhaustive, Smurfit Westrock shares some very valuable advice for manufacturers of all sizes.

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