Packaging Impressions Parlor: Sustainability Scores Matter, Just Ask Your Stakeholders

Many stakeholders in the sustainability landscape — investors, banks, customers, suppliers, and the media — want a clear understanding of the metrics and analytics associated with a company’s sustainability targets. These scores are increasingly relevant to an organization’s short-, medium-, and long-term growth potential. In response to this demand, several third-party rating systems and agencies have emerged.

One of the key rating agencies DS Smith submits to is the Carbon Disclosure Project (CDP). This not-for-profit charity runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts. The world’s economy looks to CDP as the gold standard of environmental reporting, with the richest and most comprehensive dataset on corporate and city action.

DS Smith has participated in the annual CDP submission since 2010 with a current A rating for Climate Change, A- rating for Water Security, and A- rating for Forests.

Because we value having our performance assessed and want to demonstrate our continued strong sustainability performance to several stakeholders, DS Smith submits to a wide range of highly reputable platforms.

In addition to CDP, we participate in the EcoVadis program, the leading solution for monitoring sustainability in global supply chains. EcoVadis provides business sustainability ratings that evaluate how well companies have integrated the principles of corporate social responsibility, including sustainability, into their business and management systems.

DS Smith has participated in the annual EcoVadis assessment since 2014 with a current rating of Platinum, placing us in the top 1% of all respondents.

The importance of having a strong sustainability assessment plan goes beyond just that it’s good for the environment. DS Smith’s customers and investors value our participation in reputable environmental, social, and governance ratings as an independent indicator of sustainability performance.

I’ve seen how reporting is crucial for a package manufacturing business to remain competitive, sustainable, and responsible. The benefits of reporting resonate across an organization’s ecosystem and can help owners and managers of package printing companies build a culture of accountability internally and externally.

Here are five business areas that benefit when a packaging manufacturer participates in sustainability reporting.

• Customer Service and Attainment
  More than ever, customers understand and care about the sustainability of their suppliers and are apt to hold them accountable throughout the entire value chain.
• Employee Engagement
  Employees who believe they are making a difference in a company’s global sustainability program become more engaged.
• Operations Optimization and Materials Use
  Quality, durability, and recyclability are key to keeping packaging products and materials in use for as long as possible, eliminating waste. At DS Smith, we maximize the use of fibers in our converting process and recognize the value of components beyond the primary function by increasing their reusability, collapsibility, and/or recyclability. We’ve found this approach supports a more profitable bottom line.
• Employee Recruitment
  Showing measurable proof of a company’s desire to “do good” can help recruit and retain the best talent because job seekers want to work for companies that genuinely value and truly make positive impacts regarding environmental, social, and governance issues.
• Culture Building
  When companies live their values, they challenge their teams and customers to build a better world. At DS Smith, one of the measurable ways we can demonstrably “live our values” is by continuing to develop more circular packaging solutions.

As a company, DS Smith is proud of its reporting process and the benefits it provides to our colleagues and our customers. As an industry, we need to ensure that packaging converters know the many benefits of reporting, including how it helps companies mitigate risks, attract investors, comply with regulations, and foster trust with stakeholders.