The packaging industry has evolved. As the market for standard packaging matured, material and manufacturing efficiencies have done so as well, limiting growth opportunities for those firms competing solely on the dimension of cost minimization. Today, the strongest and most sustainable competitive advantages come via intangible assets like innovation, engaged employees, resource stewardship, and strong value chain relationships. We believe that it has been our emphasis on developing these assets that has allowed us to grow at a rate many times faster than the packaging industry.
Studies show that customer satisfaction, environmental stewardship, and sustainable policies are associated with higher stock returns when a company focuses on core sustainable material issues.
We see three key factors driving sustainability into the business landscape:
Consumer sentiment is the strongest factor driving change. According to a 2020 report by Boston Consulting Group, 74% of consumers say they will pay more for sustainable packaging.
Driven to action by consumers, governments around the world are enacting legislation requiring firms to develop and operate under sustainable business models, monitor and disclose ESG performance, and drive improvements in resource utilization and waste management.
Investors are seeking investments that have a robust ESG platform. 39% of European investors include ESG criteria in their investment choices and, according to McKinsey, an overall positive ESG rating imparts a 10% premium on enterprise value.