Amidst the wave of green transformation, the packaging and printing industry is setting its sights on a new direction of circular, low-carbon, and transparent governance

Against the backdrop of the deepening of the "dual carbon" goal and circular economy strategy, the packaging and printing industry is undergoing a historic transformation from traditional manufacturing to green and intelligent manufacturing.

As an important link between production and consumption, the sustainable development capability of packaging enterprises is not only related to resource conservation and environmental protection, but also directly affects the supply chain greening process of downstream brand customers.

Recently, Hainan Green Development Credit Rating Co., Ltd. (hereinafter referred to as "Green Letter Rating") released the ESG active rating results of A-share listed companies, showing that the performance of companies in the industry is polarized, and ESG is becoming a key factor determining whether companies can seize the opportunity in the wave of green packaging.

Rating performance: Overall level polarization, Yutong Technology and Shanghai Ailu lead the way

The proactive rating results of Green Letter Review show that the ESG performance of the packaging and printing industry in A-shares is polarized. Yutong Technology and Shanghai Ailu are ranked in the top tier of the industry with an AApi rating. Dashengda and Origen followed closely behind, obtaining an AA pi rating and forming the second tier of the industry. Baosteel Packaging and Yongxin Co., Ltd. received an A+pi rating; Kangxin New Materials, Zijiang Enterprise, Shengxing Shares, and Xintonglian have received Api ratings; Jiahe Technology, Zhongxin Shares, and Shunhao Shares have received A-pi ratings; Hongyu Packaging Materials has received a BBBpi rating.

Industry key topic focus: Green packaging drives full value chain transformation

The environmental dimension focuses on circular economy and low-carbon operation. As a resource-intensive industry, the environmental responsibility of packaging enterprises is mainly reflected in the sustainable procurement of raw materials, energy conservation and emission reduction in the production process, and the resource utilization of waste. Enterprises should prioritize the use of FSC-certified paper, recycled fibers, and other environmentally friendly raw materials to promote lightweight design and improved recyclability of packaging products. At the same time, measures such as equipment upgrades, process optimization, and renewable energy substitution will be taken to reduce energy consumption and carbon emissions per unit of output value, and a sound waste classification and disposal and resource recycling system will be established.

The social dimension is based on product quality and customer responsibility. Packaging products directly carry the safety and brand image of downstream consumer goods. Enterprises must establish a quality control system that covers the entire process of raw material procurement, production and manufacturing, warehousing and transportation to ensure that products comply with food safety, hygiene and safety standards. At the same time, as supply chain partners of brand customers, packaging companies need to actively respond to downstream customers' green procurement requirements and help customers achieve sustainable development goals through environmentally friendly packaging solutions. In addition, issues such as employee occupational health and safety, and supply chain responsibility management also constitute important connotations of industry social responsibility.

The governance dimension highlights compliance operations and business ethics. Faced with increasingly strict regulatory requirements, enterprises need to establish a full process compliance management system covering areas such as anti-commercial bribery and anti-unfair competition. Transparent information disclosure and efficient stakeholder communication are equally indispensable. Enterprises need to proactively disclose key data such as environmental performance and anti-corruption effectiveness, and penetrate compliance requirements upstream and downstream to jointly build an honest and clean business ecosystem. It is worth noting that there are 32 enterprises in the industry with BBpi and below levels, mainly concentrated in B+pi and below levels, accounting for nearly 70%. These companies generally do not systematically disclose sustainable development information, and ESG management and information disclosure urgently need to be improved.

Excellent cases in the industry: Building foundations with environmentally friendly materials, empowering intelligent manufacturing systems, and safeguarding compliance culture

In terms of environmental dimension, Yutong Technology has established a sound green operation system, which runs through the entire process of raw material procurement, production and manufacturing, and logistics transportation around the concept of circular economy, continuously improving its self-produced clean energy capabilities. Four production bases have obtained platinum level certification for zero landfill waste. Shanghai Ailu has passed the diamond level certification of zero landfill management system for waste, and its independently developed ESpeed plastic free film paper-based packaging and AiTop plastic free valve pocket have won 6 awards at home and abroad, using paper instead of plastic innovation to help the entire industry chain achieve collaborative carbon reduction.

In the social dimension, Yutong Technology has established a comprehensive supply chain ESG management system and has put forward ESG evaluation requirements for suppliers. About 80% of suppliers have signed the requirements. In terms of employee development, we will create the "Yubei Sheng" talent training program, with a 100% participation rate for employees, and continue to promote the recognition of vocational skill levels. Shanghai Ailu has established a comprehensive quality management system, set up a food safety committee, and regularly conducts food safety knowledge competitions and quality themed activities to ensure a 100% product qualification rate. In terms of employee development, establish a comprehensive training system and continuously improve employees' professional skills through internal lecturer team building and external high-quality course introduction. At the same time, Shanghai Ailu actively engages in public welfare undertakings, participates in love education activities, environmental protection themed activities, organizes employees to participate in community public welfare activities, and gives back to society with practical actions.

In terms of governance, Yutong Technology has established a top-down three-level sustainable development governance structure, incorporating the execution and management of sustainable development work into annual performance evaluations. Establish the "Yutong Moral Compliance Committee" to provide integrity training and system promotion to all employees and suppliers. Shanghai Ailu links salary to achieving sustainable goals, establishes a sound anti-corruption management system, and signs a "Commitment Letter to Prevent Commercial Bribery" with 100% of employees.

Industry Future: Circular Economy and Transparent Governance Become Core Competitiveness

Looking ahead to the future, the ESG development of the packaging and printing industry is showing three major trends: in the environmental dimension, circular economy and low-carbon operation will be upgraded from optional to industry entry thresholds, and the proportion of environmentally friendly raw material procurement, packaging recyclability rate, carbon emission intensity, etc. will become core indicators for customers to screen suppliers; In the social dimension, product quality and supply chain responsibility will be further strengthened, and downstream brand customers will continue to increase their ESG compliance requirements for packaging suppliers; In terms of governance, transparency and standardization of information disclosure will become the key for enterprises to obtain green financing and win the trust of the capital market.

The competitive logic of the packaging and printing industry has evolved from traditional competition based on production capacity and cost advantages to comprehensive responsibility competition led by green innovation, based on product quality, and guaranteed by transparent governance. Enterprises that can integrate the concept of circular economy into the entire product lifecycle, respond to customer needs with environmentally friendly packaging solutions, and win market trust through transparent disclosure will not only continue to lead in ESG ratings, but also complete the role transition from traditional manufacturers to sustainable value co-creators in the historical process of green transformation of the global packaging industry. This is not only the inevitable choice for the packaging and printing industry to face the future, but also its irreplaceable strategic value.

Source: China Wealth