Blog Post: Carbon Neutrality: Best Practices for Container Distributors

What is Carbon Neutrality? ^{1, 2, 3, 4, 5, 6, 7}

Carbon neutrality refers to a net-zero carbon footprint. Sounds simple enough, but let’s take that one step further. According to the European Parliament, carbon neutrality is reached when the same amount of carbon dioxide is released into the atmosphere as is removed, in turn, leaving a zero balance. It is important to emphasize that optimized packaging systems have a minimal carbon impact relative to the entire product production lifecycle of most consumer products. Achieving net-zero emissions for packaging is made simple through offset programs. Additionally, post-consumer recycled content significantly reduces carbon on a packaging system that may already have a negligible influence on the product's total carbon footprint. When combined, an investment in PCR-grade substrates and offsets may cost less than one cent per package to achieve net-zero carbon production. Modern packaging companies can be so efficient that with upgrades like solar energy production, they may actually produce credits that could help support their clients' overall impact. So, let’s take a closer look at these credits and offsets, starting with the carbon market. 

The Carbon Market  ^{8, 9} 

Carbon markets enable companies to buy and sell carbon credits and carbon offsets, effectively transforming carbon dioxide emissions into a tradable commodity with a monetary value. While the terms "carbon credits" and "carbon offsets" are sometimes used interchangeably, they actually refer to different types of transferable instruments that represent a specific quantity of greenhouse gas (GHG) emissions, typically one metric ton. Carbon credits are generated when a company or organization reduces its emissions below a certain level, and can then be sold to another entity that needs to offset its own emissions. In this way, carbon credits allow companies to financially benefit from reducing their carbon footprint. On the other hand, carbon offsets are generated when a company invests in a project that reduces emissions elsewhere, such as a renewable energy project or a reforestation effort. By investing in these projects, companies can offset their own emissions and claim that they are "carbon neutral." Therefore, while both carbon credits and carbon offsets are used in carbon markets to mitigate climate change, they represent different approaches to reducing emissions.

Material Comparison ¹⁰

Let’s look at two types of jars: plastic and glass. Although they both serve the same purpose, they have different impacts on the perceived value and freshness of the product they contain. While glass is heavier than plastic, it is infinitely recyclable. But what about the carbon production difference between the two materials?

According to research conducted by Drug Plastics Group, the plastic jar has an 80% lower carbon impact compared to the glass jar. This may seem like a significant difference, but we must consider the relative impact of packaging on the entire product's carbon production. 80% of a small carbon footprint is still a small carbon footprint when looking at the total carbon emissions of the packaged product. It's essential to choose the most suitable packaging material for the product and not eliminate materials based solely on weight. Packaging can be a small fraction of the final product's total carbon emissions. Also, packaging companies can produce their own power, automate logistics, and control post-consumer recycled content to reduce their carbon production significantly. In these cases, it's essential to understand how to measure your carbon footprint accurately. Selecting the appropriate packaging material and implementing sustainable practices throughout the supply chain can help reduce the product's overall carbon footprint. 

Industry Tools ^{11, 12}

SPOC is a tool used for calculating the environmental impact of packaging. The calculation is based on various DIN (German) standards and adheres to the calculation recommendation of the European ILCD manual. This packaging calculator includes all elements essential for assessing the sustainability of packaging, such as packaging materials, processing, and transport information. All standard materials such as paper, plastic, glass, metal, but also recycled materials and biomaterials can be included in the calculation.

The overarching goal of this tool is for users to independently determine the differences between various packaging solutions in terms of CO₂ emissions and energy consumption. 

Understand the ‘why’ behind the calculations in order to properly assess their results. 

Your Offset Strategy ^{13, 14, 15, 16, 17, 18, 19, 20, 21, 22}

Companies who generate more carbon than they offset can invest in carbon reduction projects, which are specific activities that act to reduce greenhouse gas emissions. For example, Pachama is a company that provides carbon credits for reforestation and forest conservation projects.Their mission is to “restore nature to solve climate change.” They have their solutions divided into sectors, focusing on individuals, small business, enterprise, and project partners. 

There are more resources out there to help with your offsetting needs such as:

• Tree-Nation:  An environmental service that allows for citizens and companies alike to plant trees around the world to offset their CO₂ emissions. 
• The Nature Conservancy: A non-profit organization that works to protect forests and other ecosystems around the world.
• Carbonfund.org: A non-profit organization that offers carbon offsetting and climate solutions.
• Terrapass: A company that provides carbon offsetting services, including reforestation.
• Trees for the Future: A non-profit organization that works to plant trees and restore degraded lands in Africa.
• NativeEnergy: A company that offers carbon offsetting services, including reforestation and support for renewable energy projects.

Links to each will be provided in the resources below.  

Thoughts for the Future

To become a knowledge leader, it's important to recognize that buyers are increasingly looking for Environmental, Social, and Governance (ESG) reporting that includes carbon emissions. Many brands are also placing more emphasis on reducing their carbon footprint and reporting their emissions directly on packaging. It's crucial to keep an open mind and consider packaging options from a carbon perspective rather than solely focusing on price. As a container distributor, offering offset strategies to help customers produce net-zero carbon packaging and calculating credits to reduce total carbon emissions can be a valuable service. Consider offering value-added services around carbon calculations to differentiate yourself from competitors. It's also essential to construct packaging systems from a carbon production perspective and continuously explore new ways to reduce carbon emissions in the packaging industry.

Resources

1. NACD. (2022). Sustainable Packaging
2. O.Berk. (2020). The Packaging Distributor’s Role in the Green Movement Today. 
3. Yale University. (2021). Yale Experts Explain Carbon Neutrality.
4. Martec Group. (2023). Carbon Neutral Packaging: Producer and Consumer Insights. 
5. European Parliament. (2023, July 9). What is carbon neutrality and how can it be achieved by 2050? 
6. United Nations Climate Change. (2021, Feb. 26). A Beginner’s Guide to Climate Neutrality. 
7. Aptean. (2022, May 3). Net-Zero Strategy for Distributors—No Matter the Size of Your Enterprise. 
8. Mintz. (n.d.). Carbon Credit and Carbon Offset Fundamentals. 
9. CarbonCredits.Com. (2023). The Ultimate Guide to Understanding Carbon Credits. 
10. Drug Plastics. (2020, Nov. 9). Choose Plastic Over Glass for Better Sustainability. 
11. SPOC. (2023). What can SPOC do? [Online image]. 
12. S&P Global Engineering Solutions. (2022). German Institute for Standardization (DIN). 
13. GlobalNewswire. (2020, June 10). Pachama Forms New Advisory Board of Environmental Experts. 
14. Pachama. (2022). Restoring nature to solve climate change. 
15. Tree-Nation. (2023). Join us reforest the world. 
16. Tree-Nation. (2023). Plant Trees. 
17. Tree-Nation. (2023). A new logo, a new beginning, a seed of change. [Online image]. 
18. Carbonfund.org. (2022). Go Carbon Neutral. [Online image]. 
19. The Nature Conservancy. (2023). 10 Places to Watch in 2023. [Online image]. 
20. Terrapass. (2023). Restore the Balance. [Online image].
21. Trees for the Future. (n.d.). Plant trees and change lives. [Online image]. 
22. Native. (2021). You can change your world through climate projects. [Online image].