York Container Blog

Why Is Sustainable Packaging Important? An ESG Compliance Guide

Written by Georgie Ornelas | Feb 13, 2025, 7:32:43 PM

Summary

  • 66% to 72% of U.S. consumers actively seek sustainable products, which puts greater pressure on businesses to demonstrate meaningful environmental responsibility through their packaging choices.
  • Strong ESG performance depends on more than recyclable materials. It requires responsible sourcing, resource efficiency, circularity, energy-efficient production, and transparency throughout the packaging supply chain.
  • When you evaluate sustainable packaging through the entire lifecycle instead of the box alone, you can strengthen ESG compliance without compromising packaging performance.

Taking Environmental, Social, and Governance (ESG) seriously makes sense for businesses that use packaging daily. Consumers are more aware than ever that packaging significantly contributes to global waste, which pushes the demand for sustainable packaging.

Approximately 66% to 72% of U.S. consumers prefer and actively seek sustainable options. Roughly 49% of Americans regularly purchase eco-friendly goods, while over half are willing to pay an extra price premium for sustainable choices.

Businesses can meet these expectations and help build a more sustainable future by embracing ESG principles in packaging.

Why is sustainable packaging important in meeting your ESG goals? Let’s explore how sustainable packaging supports each pillar of ESG and why it's a smart move for companies today.

What is ESG and Why Is It Important?

Environmental, Social, and Governance (ESG) is a framework businesses use to measure and report their environmental performance, social responsibility, and corporate governance. Many customers, investors, and regulators use ESG reporting to evaluate whether a company has the policies, data, and processes in place to manage these responsibilities effectively.

After years of measuring and reporting our ESG performance at York Container, we've learned that sustainable packaging is rarely defined by a single material or product. Every packaging decision contributes differently to Environmental, Social, and Governance objectives, from the way materials are sourced to the standards suppliers follow and the processes they use to manufacture packaging.

When you understand how each ESG pillar applies to your packaging strategy, it's easier to identify opportunities that can support both your ESG compliance and your packaging performance.

Let’s take a look at these pillars and what they mean for your business.

Environment

A few material swaps can help you reduce waste, but the biggest environmental gains come from improving the entire packaging supply chain. When you work with a supplier that recycles, manufactures, and recovers materials within the same system, your sustainability efforts become much easier to scale.

York Container is part of Atlantic Packaging, whose vertically integrated recycling and manufacturing network is designed to keep materials in use for as long as possible.

According to Atlantic Packaging's latest Environmental, Social, and Governance (ESG) Report, every short ton of material processed through this closed-loop system delivers measurable environmental benefits, including

  • Preserving 24 mature trees by reducing the need for virgin fiber
  • Conserving 13.29 gigajoules of energy, enough to power an average home for several weeks
  • Saving about 5,600 gallons of water through advanced recovery and filtration systems
  • Preventing 5.7 metric tons of CO₂e emissions with more efficient manufacturing and logistics
  • Diverting 19 kilograms (41.8 pounds) of waste from landfills through recycling and material recovery

If your organization has ESG goals, it's important to look beyond the packaging itself. The way your packaging materials are sourced, manufactured, transported, recovered, and reused all contribute to your environmental footprint.

Social

The “social” aspect of ESG focuses on a company’s relationships and reputation in its communities. While businesses have traditionally been evaluated primarily on their profitability, there’s a growing recognition that they should also contribute positively to society and the environment.

Achieving a more comprehensive view of a company's social performance involves considering its impact on the broader community. Key factors to reflect on are community relations, human rights, health, and safety, as well as contributions to philanthropy and volunteering efforts that enhance societal well-being.

Governance

As ESG policies gain prominence, many Investors now prioritize evaluating a company’s governance practices. Governance focuses on how a company regulates itself, ensuring strong internal controls, adherence to industry best practices, compliance with regulations, and alignment with corporate policies. Beyond using sustainable materials and processes, the implementation of robust safety measures is equally essential in the creation of corrugated packaging. At York Container, the Strategic Packaging Optimization Team prioritizes these principles, collaborating with clients to deliver solutions that are not only environmentally responsible but also safe and reliable.

Sustainable Packaging Criteria for ESG Certification Compliance

If you’re curious about what makes packaging truly “ESG-compliant,” it's important to note that there isn’t just one set of rules. ESG certifications vary depending on the specific standard, but there are some common criteria that sustainable packaging typically needs to meet across different ESG frameworks.

According to York Container's experts, sustainable packaging should meet these requirements:

Resource Efficiency

Packaging should use materials as efficiently as possible. For instance, using a smaller, well-fitted box eliminates excess space and reduces the need for fillers like plastic or foam. It can also involve selecting lighter and stronger materials to provide adequate protection with less bulk or designing packaging that is easily recyclable or reusable.

Efficient resource use also includes incorporating recycled content to reduce the need for virgin resources.

Important Note: Sustainable packaging should not compromise protection. Many recycled and responsibly-sourced corrugated materials are engineered to withstand stacking, shipping, and handling just as effectively as conventional options. Sustainable packaging works best when it delivers the protection your products require without using more material than necessary.

 

Responsibly Sourced Materials

Responsible sourcing strengthens the integrity of your sustainability efforts by making sure that your environmental commitments are supported by verifiable material choices.

So, what do we mean by responsible sourcing? Responsible sourcing is more than selecting recycled or renewable materials. It requires transparency throughout the supply chain, so manufacturers understand where materials come from, how they are produced, and whether they meet established environmental standards.

Circularity

Packaging designed with circularity focuses on reusing materials and reducing the need for disposal. For example, corrugated boxes are often designed to be reused multiple times for shipping and storage before being recycled into new boxes, reducing waste and conserving resources.

Atlantic Packaging’s Circular Economy Model

As part of Atlantic Packaging's (York Container’s parent company) sustainable initiatives, the bulk of our corrugated boxes are created from recycled material upfront. Our paper manufacturing model reintroduces recycled paper sourced from urban centers and municipal sorting facilities, thereby promoting circularity, conserving energy, and reducing our emissions into the environment.

Energy Efficiency During Production

Sustainable packaging should be produced to reduce the intensity of greenhouse gas (GHG) emissions. Many companies have shifted toward renewable energy in their manufacturing processes to achieve these reductions. Atlantic Packaging’s ESG report highlighted how reducing GHG emissions intensity by even a small percentage can have a massive impact when multiplied across large-scale packaging operations.

Transparency

Companies must disclose their performance on key initiatives, both social and environmental. This kind of disclosure builds trust with consumers and investors alike. People who see progress are more likely to feel confident in a company's commitment to sustainability.

Factors to Consider When Selecting a Sustainable Packaging Partner

What should you look for in a sustainable packaging partner? Choosing the right partner goes beyond materials. A trusted packaging partner integrates advanced sustainability practices, prioritizes measurable environmental impact, and aligns with your long-term business goals.

To find the right sustainable packaging partner, ask the tough questions. Dig into their material choices, how efficient their production process is, and what strategies they’re taking to minimize environmental impact.

  • How efficient are your manufacturing processes? Ask about how they manage resources, including energy use and material waste.
  • What happens to the dust and waste generated during production? Ask if they recycle or repurpose waste materials, like dust, and how they dispose of other by-products.
  • Do you incorporate renewable energy in your facilities? Using renewable energy to facilitate operations is a strong indicator of a company's commitment to reducing its carbon footprint.
  • What certifications back up your sustainability claims? Certifications and adherence to ESG standards help verify that their sustainability efforts are legitimate, not just greenwashing.

Start Your Journey to Sustainable Packaging

Now that we’ve covered the essentials, let’s revisit the big question: Why is sustainable packaging important? Sustainable packaging, equipment, and processes are key to reducing environmental impact while helping your company achieve “sustainable” success.

Sustainable packaging can also enhance your brand’s reputation, helping you resonate with consumers who prioritize eco-conscious choices. At York Container, we’re dedicated to providing innovative, eco-friendly solutions that help you achieve sustainability goals and streamlined packaging performance.

York Container considers sustainability one of the pillars of our growth strategy. We aim to meet customer demand while minimizing our environmental footprint. Our new state-of-the-art corrugated and converting facility in Elgin, Illinois, is a great example of how we incorporate sustainability into manufacturing. Here are some of the key innovations we've implemented to reduce our impact:

  • We shred and bale all paper waste to keep it out of landfills and reuse it effectively.
  • We treat and reuse water to minimize waste and conserve resources.
  • We capture and reuse steam to heat water and starch, reducing energy consumption.
  • We use high-voltage substations to reduce energy consumption.
  • We collect dust during production, compress it into pucks, and dispose of it cleanly.
  • We designed our facility to require less floor space for storage, improving energy efficiency.

Beyond these notable innovations, our team at York Container takes the time to fully understand your sustainability, efficiency, branding, and long-term business goals, crafting a packaging strategy tailored to these priorities. If you're ready to experience the difference, contact York Container today!

Sustainability and ESG FAQs

Q. How does sustainable packaging directly impact our company's ESG score for investors?

A. If investors review your company's ESG performance, they'll expect the numbers behind it to be backed by evidence. Your packaging supplier should be able to provide that evidence by documenting recycled content, responsible sourcing, manufacturing practices, and waste reduction. The more they can verify, the stronger the data behind your ESG reporting.

Q. How do we make sure a packaging vendor's sustainability claims are legitimate and not "greenwashing"?

A. Sustainability claims should always be supported by documentation. When evaluating a packaging supplier, look for clear information on fiber sourcing, recycled content, production waste management, and third-party certifications. Those details provide a much better indication of a supplier's ESG practices than the marketing claims they can readily provide upfront.

Q. Can sustainable packaging materials handle the strict shelf-life and barrier requirements of Food & Beverage products?

A. Yes, provided the material is selected for the application. Shelf life depends on meeting the right performance requirements, whether that's moisture resistance, oxygen barriers, grease resistance, or protection during shipping. Once those requirements are defined, you can evaluate which sustainable packaging materials deliver the protection your product needs without sacrificing your sustainability goals.

Q. Will switching to eco-friendly packaging require us to modify our existing automated filling and packing machinery?

A. Whether you'll need to modify your equipment depends on the packaging material and how your production line is configured. Before making the switch, work with your packaging supplier to make sure that your new material will perform reliably along with your existing production line. Conduct production trials to evaluate line speed, sealing performance, and material handling.