Key takeaways
In some regions, expansion of harvesting and production of the pulpwood used to produce packaging threatens forests and their communities. Impacts include loss of biodiversity, social conflict, water pollution and greenhouse gas emissions.
Companies are reducing risks by ensuring pulpwood is sourced from verified legal sources and sustainable forest operations, increasing the recycled content of their products and ensuring clean production.
Investors should address business risks through direct engagement with their portfolio companies and by supporting relevant policies and multi-stakeholder collaborations.
Fiber-based packaging is made from a renewable material and is technically recyclable. 1 However, all the impacts across a product’s and package’s supply chain should be considered when making packaging decisions as there are tradeoffs among different types of packaging materials.