The Smurfit Westrock Guide to Being a Sustainable Business

Smurfit Westrock is a global leader in sustainable paper and packaging, operating in 40 countries with more than 100,000 employees, more than 500 packaging converting operations and 62 paper mills.

With so many moving parts, a value chain the size of Smurfit Westrock's could leave a substantial and literal paper trail of emissions and pollution.

However, the Dublin-based company, the result of a 2024 merger between Smurfit Kappa and WestRock, has extremely strong sustainability credentials.

After the merger, Tony Smurfit, Group CEO, said: “We believe that this combination has created the go-to leader and partner of choice in sustainable packaging. I’m proud to be chosen to lead this great team of people.”

One of the intentions behind the merger was to expand the group's market reach in North America and Europe, where there is now a concerted effort to replace plastics with sustainable materials.

Having walked the walk, Smurfit Westrock is now talking the talk, giving advice to companies around the world on how to hit their sustainability and ESG targets.

1. Increase the transparency of your business

First and foremost, Smurfit Westrock implores business leaders to lay their cards on the table. 

For the global company, assessing a business' sustainability is about examining the information it discloses and what it chooses to omit.

Responsible businesses might share current performance data, future goals and action plans.

But a lack of transparency can give the impression that a business is deliberately trying to conceal something, or that it is simply ignorant of important information.

According to Smurfit Westrock, transparent businesses should consider a few key things:

1. Sustainability reports: Published data following accepted standards, ideally with third-party verification
2. Clear product labelling: Unambiguous packaging information with necessary qualifications for environmental claims
3. Traceability evidence: Certification of ethically sourced materials and labour, including vetting of subcontractors and suppliers.

2. Set long-term ESG targets

For Smurfit Westrock, sustainable businesses should put a great deal of effort into setting targets, especially targets against which performance can be measured in a sustainability report.

One example Smurfit Westrock guide writers give is Patagonia, a company renowned for its excellence and ambition in ESG reporting.

Some key elements to look for in quality ESG reports are:

1. Clear, ambitious, time-bound targets: Measurable goals with specific completion dates
2. Comprehensive scope: Covering all aspects of environmental and social responsibility, including emissions, resource use, safety and diversity
3. Progress updates: Regular reporting on target achievement, including status and percentage completion.

3. Consider the sustainability of all your business operations

For this tip, Smurfit Westrock uses itself as an example of best practice.

All of its paper mills aim to recirculate and reuse the water that's used in the papermaking process.

The by-products from its kraft pulping and papermaking processes are also used to create electricity and steam, which go on to supply power to their manufacturing operations. It's all about circularity.

Some of the key aspects Smurfit Westrock are looking for in sustainable operations are:

1. Circularity in production: Closed-loop systems minimising waste, promoting recycling and regenerating natural materials
2. Comprehensive circularity: Extending sustainable practices to office spaces, packaging and overall operations through recycling, energy conservation and employee education
3. Innovation investment: Research into eco-friendly materials and technologies to advance sustainability in the industry.

4. Packaging, packaging, packaging

As a sustainable packaging company, Smurfit Westrock obviously puts a lot of importance on this point.

The transition to more sustainable packaging is a challenge that the entire consumer goods industry is grappling with right now, but there are some key actions that companies can take today if they want to make a positive impact on their ESG:

1. Curbside recyclable materials: Materials that can be recycled through local bin collections are always the most likely to be recycled. Only 9% of plastic is recycled, whereas fibre-based and corrugated cardboard packaging are recycled 68% and 90% of the time respectively
2. Customers love sustainability: Smurfit Westrock really emphasises that sustainable packaging can significantly improve customer satisfaction ratings, which can provide value for investment in the long run
3. Circular design principles: Create packaging that's easily recyclable or offer return programs for reuse/recycling. The guide uses Lush Cosmetics as an example of a company using minimal, biodegradable packaging, all with the option for in-store recycling
4. Minimalism: Reduce material use to minimise waste and lower transportation emissions through smaller package volumes.

5. Actions speak louder than words

This one should be a given.

Sustainable businesses demonstrate their commitment through actions, not just words. At the start of this guide to sustainability, Smurfit Westrock highlights the dangers of greenwashing.

Talking the talk is not enough if you have no evidence to back up your claims.

Some ways to avoid baseless claims are:

1. Data-driven commitments: Use hard data to back your sustainability claims, whether that's emissions, recycling rates, water consumption or anything else
2. Substantial investments: Significant spending on sustainability initiatives like renewable energy, hybrid fleets or energy-efficient buildings can produce real and immediate results. There are plenty of low-hanging fruit options businesses can invest in too, such as low-energy office lighting, power-saving computer screens or an increased volume of recycling bins
3. Third-party validation: It's hugely important to have your claims independently verified. One such way to do this is through Science Based Target Initiative (SBTi) approval, a global standard.

6. Getting third-party certifications

Speaking of which, Smurfit Westrock choose to spotlight third-party certifications for the final point in this list.

These independent certifications can really add credibility to a company's sustainability mission, validating their commitment to the cause.

Here are some forms of certification Smurfit Westrock guide writers recommend:

1. Industry-specific certifications: There are many different ESG certifications companies can pursue, differing from industry to industry. The best thing to do is to find the ones specific to your business's sector. In the case of Smurfit Westrock, those include LEED, Green-e, USDA, Forest Stewardship Council, Sustainable Forestry Initiative and PEFC
2. Recognition at various levels: When a business is doing something right, recognition and awards will follow. Smurfit Westrock uses itself as an example here, pointing to the PAC Global Best in Class for Sustainable Packaging Design award it won in 2024
3. B-Corp status: While not essential, B-Corp status — a highly regarded ESG standard for businesses — signifies high standards of social and environmental performance, transparency and accountability.

There you have it. While this list is by no means exhaustive, Smurfit Westrock shares some very valuable advice for businesses of all sizes.

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