Creating a Sustainable Future in Packaging

An inside look at the drivers shaping the industry and ACTEGA's sustainability approach

The packaging industry is an integral part of our everyday lives, with a global value exceeding $1 trillion. On a daily basis, billions of packages are being used worldwide. However, as climate change concerns intensify, consumers are becoming increasingly environmentally conscious and exerting pressure on companies to adopt sustainable practices and reduce their environmental footprint. Equally, ensuring product safety is also paramount, where packaging plays a pivotal role in safeguarding products throughout their entire journey - from shipping to handling and storage. This emphasizes the urgent need for environmentally friendly solutions and underscores the importance of utilizing sustainable packaging. One such company leading the way for sustainable packaging is ACTEGA, a global company of the chemical group ALTANA – that offers a comprehensive range of specialty chemicals and solutions for the packaging and print industry, spanning numerous sectors of the market, including flexible packaging and labels, folding cartons, or metal packaging.

The shift towards sustainable packaging: Navigating regulatory landscapes and consumer demands

In an ever-changing world of packaging, sustainability is no longer a choice but a mandate across the value chain, driven by factors like environmental awareness, regulatory compliance, and the push to minimize packaging waste. Sustainability has transitioned from a luxury to a necessity for brand owners aiming to maintain competitiveness in their sector. Industry leaders are grappling with numerous critical factors that will influence the future of packaging, yet one factor stands out: regulation.

Operating within a complex regulatory landscape, the packaging industry faces a myriad of requirements regarding specifications, recyclability, primary use, labelling, traceability, raw material sourcing, and disposal. However, the surge in packaging usage, coupled with inadequate reuse and recycling rates, impedes the progress toward a sustainable, low-carbon circular economy. In alignment with the new approach to products, The European Green Deal proposed measures to reduce packaging waste, encourage reuse and refill, and ensure that all packaging is recyclable by 2030. The EU's draft Packaging & Packaging Waste Regulation (PPWR) introduced in 2022 marks the start of a legislative process set to culminate in the final version by 2024, with implementation possibly commencing in 2025. This ambitious regulation is poised to have profound implications across various packaging types and their associated materials, making it one of the most impactful regulations in this domain. As the PPWR leads the way in reducing packaging pollution and promoting a circular economy for packaging that covers the entire life cycle of packaging, companies must consider how they can adapt and evolve to meet the changing landscape of the packaging industry.

Dennis Siepmann, Head of Sustainability, ACTEGA, commented, “The future of packaging is looking increasingly regulated, and companies that want to succeed will need to stay ahead of the curve. As regulations in our industry continue to increase, they drive us towards greater sustainability. At ACTEGA, compliance is merely the foundation; we’re dedicated to driving impactful change today while also fostering a sustainable future for the long term.

Recycling is under the spotlight

Notably, regulations such as PPWR greatly influence the design and composition of packaging. Recycling will be the name of the game in the packaging industry. Therefore, key considerations will be factors like "separability," identifying harmful substances that affect reuse and recycling, and providing recyclability assessment information. Plastic packaging components must meet specified minimum percentages of recycled material for their respective types by 2030.

ACTEGA prioritizes packaging's life cycle and recyclability. The company has been a strong advocate for the circular economy model, which identified and implemented five key tactics for creating a successful circular economy: recycle, reduce, dispose, replace, and degrade. These tactics guide the journey to transform their production system into a regenerative and restorative one.

Dennis Siepmann, Head of Sustainability, ACTEGA, said: “At ACTEGA, we placed great emphasis on the life cycle of packaging and its recyclability, and we continue to do so. In line with our commitment, we have made a forward-thinking investment by acquiring new testing equipment at our Cinnaminson site in the USA. This initiative allows us to evaluate the recyclability of paper packaging effectively and provide our customers with well-informed statements.”

At their new recycling test facility, ACTEGA assesses factors like fibre recovery and contamination based on current and upcoming standards. As a member of 4evergreen, ACTEGA participates in shaping recycling design guidelines. This effort aids in advancing knowledge on the recyclability of fibre-based packaging, offering valuable guidance to stakeholders, including brand owners, throughout the value chain.

Sustainability in the packaging world extends far beyond recycling

Strict regulations mandate the use of recycled plastics in packaging, further reducing the environmental impact. Yet, the commitment to sustainability extends far beyond just recycling; the packaging sector will be encouraged to explore alternative options, such as refillable and reusable packaging, offering consumers environmentally friendly choices. Another significant driver of the sustainability of the packaging sector is the emphasis on data-driven sustainability benefits of packaging products. Consumers are increasingly seeking transparency and data that demonstrate the sustainability benefits of the products they purchase. Therefore, it is crucial to collect carbon footprint data at the product level for brand owners when choosing packaging. With companies like ACTEGA leading the way, manufacturers will be able to offer this data to brand owners, simplifying the process of measuring their carbon footprint comprehensively.

ACTEGA recognizes the importance of becoming more sustainable at the product level while reducing their carbon footprint at the operational level. As part of their ongoing project, the carbon footprint of their solutions is being investigated; this involves working closely with their suppliers and partners to ensure better data availability. As such, the company is already experiencing a rise in customer inquiries about accessing their company's sustainability data, including information on emissions, environmental programs, and CO₂ data for their products.

Holistic approach to sustainability

It’s not difficult to anticipate stricter requirements not only at the product level but also regarding emissions at production sites. The Corporate Sustainability Reporting Directive (CSRD) requires among others reporting on sustainability aspects of economic activities, encompassing emissions from gas and electricity consumption. With these new requirements, brought together under the umbrella of a double materiality assessment, companies should evaluate the impact of their business activities on the environment and society, and how sustainability factors and societal changes affect their business both operationally and financially. In response to this, ALTANA conducted a comprehensive materiality assessment. As part of the ALTANA Group, ACTEGA is fully aligned with ALTANA's materiality topics.

Commenting on Altana’s new materiality assessment, Dennis Siepmann said: “ACTEGA has a long-standing commitment to sustainability, and we have embedded it into our solutions and business practices, fostering a cultural norm throughout the organization. Our focus on sustainability is driven by its understanding of economic, ecological, and corporate social responsibility factors, which is mirrored in ALTANA's mission statement. ALTANA's new assessment on the materiality topics has enabled us to review the most significant sustainability issues in our business activities that also influence the individual divisions from a sustainability perspective, including sustainable products and innovations, emissions from products, and safety aspects.”

Working towards reducing their carbon footprint is also crucial for ACTEGA. Taking ambitious steps to decrease Scope 1 and Scope 2 emissions is essential for demonstrating a commitment to a greener future. Generating electricity for their production plays a key role in reducing emissions. The photovoltaic system at the Bremen site demonstrates how companies can take environmental responsibility. The company has commissioned a new 1,000 kWp photovoltaic system on the roof of the 7,600 m² building in Bremen, expected to generate over 850,000 kWh of electricity annually. The system covers the entire permitted area of ACTEGA's new building, contributing to their sustainability efforts.

In addition to planting the photovoltaic system at its Bremen facility, ACTEGA has transitioned to catalytic exhaust air purification at its Grevenbroich site. This strategic shift is resulting in an annual reduction of approximately 500 tons of CO₂-equivalent greenhouse gas emissions.

Dennis Siepmann said, “By prioritizing sustainability efforts, we not only contribute to protecting the planet but also demonstrate our dedication to being a responsible and forward-thinking business. At ACTEGA, we consistently examine our practices and make changes where necessary. This ongoing commitment drives us to continually assess and optimize our portfolio for greater sustainability.”

Pioneering product assessment and optimization in pursuit of sustainability

Innovation in product development is key for the packaging sector, indeed, for all industries, particularly in the context of addressing climate change and reducing carbon footprint. In today’s dynamic business landscape, incorporating ESG factors into the core of strategic decision-making is essential. For packaging companies, product evaluation and optimization through an environmental lens are increasingly significant, marking a pivotal step towards greater sustainability. Collaborating with companies dedicated to advancing product development through an environmental perspective enables brand owners to align their packaging with evolving ESG standards, enhancing readiness for the future more effectively.

ACTEGA conducts systematic sustainability assessments as part of its R&D process to evaluate the sustainability benefits and challenges of product portfolios and the R&D pipeline. This involves assessing factors like avoidance of hazardous chemicals, eco-label criteria, and brand owner requirements, as well as sustainability aspects such as PCF reduction, recycling advantages, and energy efficiency improvements. By integrating controlled sustainability assessments into new product development, ACTEGA identifies the opportunities for sustainability enhancements early on. In addition to sustainability evaluations during R&D, the current product portfolio undergoes analysis using similar criteria. Different product families and applications are reviewed for their impact on energy efficiency, waste reduction, and greenhouse gas emissions. By doing so, ACTEGA’s ultimate aim is to create a comprehensive overview highlighting areas for sustainability enhancement and recognizing existing high performers in sustainability within the product range.

“At ACTEGA, our mission is to create value for our customers, employees, and society as a whole. We’re dedicated to creating innovative solutions that not only improve the quality of daily life products but also foster sustainability and growth for our customers,” added Siepmann.

“We’re proud to be at the forefront of exciting innovation that serves as primary examples for the industry that contributes to a greener future. ACTEGA is continuously developing sustainability-driven solutions and products targeting downstream stages of the value chain. Within this intricate regulatory environment, we’re propelled towards enhanced sustainability practices. ACTEGA not only meets current regulations but also aims to surpass them in pursuit of its sustainability objectives. We believe in the power of collaboration and continue to support brand owners to achieve their ambitious sustainability goals through our innovations and know-how for a sustainable future,” concluded Dennis Siepmann.