Best sustainability initiative 2024

DS Smith is a FTSE 100 packaging company, with a corporate purpose to redefine packaging for a changing world. These are not just words on a page: its purpose is the driving force behind every decision taken by the business. It also aspires to lead the industry in sustainability by launching innovative packaging solutions that are aligned with the principles of the circular economy, reducing its environmental impact and helping customers achieve sustainability goals.

In 2020, DS Smith embarked on an ambitious journey to replace one billion pieces of plastic from global supply chains by 2025. It was an enormous challenge. Plastic is a staple of the packaging business, particularly within the fast-moving consumer goods sector, where legal and safety regulations often dictate its use.

But 25 per cent of consumers are actively against plastic while 41 per cent want packaging made from alternative renewable sources, so DS Smith also recognised that this would resonate with its customers, which include some of the world’s biggest brands.

Around 80 per cent of any product’s environmental impact is determined by its design, so DS Smith trained 800 designers in the principles of circular design. Indeed, its strategy was rooted in the five pillars of its circular design principles, which were developed in collaboration with the Ellen MacArthur Foundation. These are:

These principles guided the way DS Smith worked with customers, ensuring each packaging solution minimised plastic use while maintaining functionality and compliance with regulation. The approach was deeply customer centric, with designers working closely with brands to co-create tailored solutions to reduce plastic use without compromising on quality. Indeed, its partnership with Perlinger Gemuse, one of the largest fruit and vegetable trading companies in Austria, led to the replacement of 74 million pieces of plastic.

A big ambition – such as one billion pieces – needs to be tracked. DS Smith initially faced numerous challenges, including some as basic as how to capture the data and make it auditable, which ultimately was managed through an internal IT integration.

The constant innovation in the space of plastic-free packaging led to the creation of an entirely new category. DS Smith positions plastic replacement as a distinct market segment, in which it sets the standard, offering fibre-based alternative products, while competitors focus on hybrid solutions.

By May 2023, DS Smith had achieved its goal – 15 months ahead of schedule – which effectively meant removing 600,000 pieces of plastic every day. The simplicity of the message – there were one billion pieces of plastic and now there aren’t – provided a news hook for the achievement. Across Europe, the news generated more than 400 articles in national news media as well as relevant trade publications.

Customers have also embraced the sustainable alternatives and the initiative has strengthened relationships with key brands, such as Coca-Cola and Reckitt Benckiser. And the campaign also aligns with the UN Sustainable Development Goals of ensuring responsible consumer and production and fostering innovation.

The judges loved this initiative. ‘This was an ambitious campaign from a major packaging business to reduce plastic waste. It was great to see customers playing a major role in how this was thought through, and the commitment from the company to reimagine internal processes to support the ambition: these new processes are now fully adopted by the company,’ they said. ‘The only question is: what next?’