Implement metrics system for circular packaging

This case study is part of decarbonization best practices shared with AB InBev Eclipse sustainability program’s community. Discover more about the Eclipse program here.

DS Smith is a multinational packaging business, headquartered in the United Kingdom. Its business model is designed to be circular and has a focus on sustainability. As an industry, fiber-based packaging already has a circular business model, developed over decades. Recovered fiber is turned into paper, that paper turned into corrugated and that corrugated converted into packaging products which becomes Old Corrugated Cases and recovered fiber. Virgin fiber represents on average 15% of the company’s raw material feedstocks as fibers are reused until they are naturally dispersed.

DS Smith’s responsibilities to the Circular Economy include adding Circular Ready to the customer promise, in addition to helping customers generate more sales, lower their costs and manage the risks associated with packaging supply chain.

DS Smith Packaging also continues to drive carbon reduction and care for forests and their biodiversity. When looking beyond the take, make and waste industrial model, a circular economy aims to redefine growth, in a more positive way, by disconnecting economic activity from the consumption of finite resources and designing waste out of each system.

These principles align with those fundamental value propositions. The company designs circular packaging solutions, delivering for rapidly changing consumer lifestyles with reduced impact on the environment.

In the process of development, the design community was trained in Circular Design Principles.

Protect brands and products Designers must always ensure that packaging successfully protects its product. Through the lens of circularity, damaged products from poor packaging have an economic and environmental impact.

Optimize materials and structure Optimized use of packaging materials saves resources and reduces waste.

Maintain and recover materials Waste is eliminated by keeping packaging products in use for as long as possible. It is possible to ‘close the loop’ for customers in 14 days by recycling packaging into new products, if the solution is positioned correctly.

Maximize supply cycle efficiencies An obvious example is where designers drive efficiency by changing the layout of products within packaging through the logistic chain – improving and capitalizing on the supply chain.

Finding a better way Designers are empowered to challenge the status quo and support customers in the drive for a circular economy.

The Principles are a practical guide to how Packaging Designers translate the Circular Economy Principles into action.

The Circular Design metrics are a natural development within Circular Design Principles. Once the process was in place to develop circular design, a method was needed to measure and monitor activity, application and attributable success. This had been hardcoded into the designers, the next step was to hardwire it into the systems.

By 2021 the principles has been applied for more than a year– the next step was to develop a means of measuring the real effectiveness.

The Metrics are a validation of the design processes and provide tangible and measurable data to help guide customers to better, more circular-ready packaging design.

Over 80% of a product’s environmental impact is determined at the design stage. When this is presented, with the metrics, directly from a design perspective, it increases credibility and allows the team to talk about design in terms of Circularity - an important and unambiguous differentiation.

Recent priorities go beyond recycling. In designing the circular metrics, it was considered important to align with the key criteria of circular design.

Each one of the metrics has implications for every design solution. The metrics considers renewably resourced materials, material Utilization and Recyclability, along with five other metrics which present a detailed assessment of any design.

Most of the data feeding into the Metrics can be pulled from the CAD file (Computer-Aided Design). The ambition was to make this as automated as possible. By linking, in real time, to the company-wide material database, it is possible to accurately analyze a vector file and report back many of the metrics automatically. The rest challenge the designer to consider and complete the details in accordance with the principles of designing for circularity. This initiative is considered to be a first application in the packaging industry. Using the metrics, it positively engages the widest variety of customers on the subject of circularity and brings it to life with metrics relating directly to the products that are manufactured.

The Metrics 'wheel’ helps to identify and target these priorities and then find the key topics and projects to drive action and value generation. Supply Chain Optimization is therefore at the top of this list and a strong focus for development and continual improvement.

Design and development of a packaging solution responds to the requirements of the customer and those associated with market trends and demand. The Circular Metrics are designed to provide an honest and transparent value to a valuable set of sustainability criteria.

Each of the metrics will be relevant to the decision process when assessing a new packaging solution, however straightforward or complex. The task is to present the metrics accurately and plainly so that decisions on moving forward with production of that solution can be weighed against the criteria set by the customer.

Automated where possible yes, but defining the metrics also requires that each designer considers the Circular Design Principles in such a way that their choices made can be measured.

This is a way to challenge customer design criteria but also a way to look at the choices are made during the design and ask is there a better way.

So, as an organization, DS Smith committed to presenting Circular Metrics as part of every new design created from September 1st 2021 onwards.

The metrics may conflict with one another, differences from one solution to another may be minor and improving one metric may effect another negatively.

Sustainability impact

Climate

In understanding the impact of design decisions through the lens of Circularity, it is possible to assess specific metrics which can be connected to various real-world drivers change. The Circular Design Metrics are designed to support analysis of the application of Circular Design Principles. Introduced in 2020, the CDPs guide designers through the application of Circular Design Thinking in a way which is practicably accessible and relevant for their everyday design challenges.

In applying these principles, the company is responding the ongoing program of support to identifying and reducing Scope, 1,2 and 3 emissions.

The CO2e value is extracted from FEFCO's industry standard measures, the rest of the metrics are aligned with the specifics of material allocation and the impact of Reuse and material utilization which extend beyond normal measures of sustainability.

Essentially, by reducing the carbon footprint of the packaging that is supplied to customers, DS Smith is helping the customers to reduce their Scope 3 Category 1 emissions (purchased goods and services).

This supplements the group achieving its Scope 1, 2 and 3 decarbonization roadmap.

DS Smith measures its carbon footprint across Scope 1, 2 and 3 so that it can understand where the biggest opportunities are to reduce emissions.

• Scope 1 represents greenhouse gas emissions arising from the combustion of fuels in assets owned by the company (e.g. emissions from owned boilers, furnaces, vehicles, etc.)

• Scope 2 represents greenhouse gas emissions arising from the generation of purchased electricity, heat, steam or cooling, which physically occur at the facility where the energy is generated are the emissions from the imported import (mainly electricity)

• Scope 3 represents greenhouse gas emissions arising in the value chain from all other sources as a consequence of the company’s activities but from sources not owned by the company

• In the below image, the chart on the left shows that DS Smith’s carbon footprint was circa 7 million tons of CO2e in 2023/24. It is visible that the majority of the company’s carbon footprint was in its Scope 3 emissions – about 67%

• Scope 2 emissions make up 14%, whilst Scope 1 emissions make up circa 19% of the company’s carbon footprint

• The chart on the right digs deeper into the company’s Scope 3 emissions and demonstrates that purchased goods and services make up just under 50% of carbon footprint here, Scope 2 emissions make up 14%, whilst the company’s Scope 1 emissions make up circa 19% of the company’s carbon footprint

Nature

The company aims to protect forests and their biodiversity. When looking beyond the take, make and waste industrial model, a circular economy aims to redefine growth, in a more positive way, by disconnecting economic activity from the consumption of finite resources and designing waste out of each system. These principles align very strongly with the company’s fundamental value propositions. The company designs circular packaging solutions that achieve more from less, delivering for rapidly changing consumer lifestyles with minimum impact on the world around us.

Social

Circularity goes beyond the scope of only recycling. In designing the circular metrics, it’s about aligning with the key criteria of the circular design. Each one of the metrics has implications for every design solution. It is required to look at renewably resourced materials, material Utilization and Recyclability, along with five other metrics which present a detailed assessment of any design.

This is a way to challenge customer design criteria but also a way to look at the choices made in design and explore if there are more efficient ways.

Business impact

Benefits

In bringing CDMs to the design solutions, it brings clearer and more precise information through the lens of circularity. This information enables customers to understand the environmental and business implications of the choices they make in packaging solution provision. The CDMs are a great way to explore the difference between two packaging solutions and also to support prioritization of targets and priorities.

The Circular Design Metrics are designed to support the application of Circular Design Principles. The Principles are a practical guide to how Packaging Designers translate the Circular Economy Principles into action. They drive the development of packaging design solutions through five fundamental areas of focus.

• Protect brands and products: Designers must always ensure that packaging successfully protects its product. Through the lens of Circularity, damaged products from poor packaging have an economic and environmental impact

• Optimize materials and structure: Optimized use of packaging materials saves resources and reduces waste, something the company has prioritized.

• Maintain and recover materials: Waste is eliminated by keeping packaging products in use for as long as possible. It is possible to ‘close the loop’ for customers in 14 days by recycling packaging into new products, if the solution is positioned correctly.

• Maximize supply cycle efficiencies: An obvious example is where designers drive efficiency by changing the layout of products within packaging through the logistic chain – improving and capitalizing on the supply chain.

• Continuous improvement with designers: The company also empowers its designers to challenge the status quo and support customers in the drive for a circular economy

Costs

When assessing using CDMs there are significant benefits. The focus is more precise and the language is used to inform and make decisions is clearer. For example, when Material Utilization is analyzed, the company is directly challenging the use of material and therefore the cost of manufacture, and conversion into packaging. When you look at carbon reporting, the assessment through the CDMs allows to directly measure, from the CAD drawing, a CO2e value calculated through the industry-acknowledged reporting body, FEFCO. This way of working supports accuracy, around information and decision making, which are directly relating to cost.

In application, the development of the technical solution was budgeted inside the overall program for Circularity. Creating the learning materials and delivering the training to 800+ designers took over 12 months to complete and is now part of the company’s formal Learning and Development program for all new FTEs.

Impact beyond sustainability and business

Co-benefits

The Metrics 'wheel’ helps to identify and target these priorities and then find the key topics and projects to drive action and value generation. Supply Chain Optimization is therefore at the top of this list and a strong focus for development and continual improvement.

Design and development of a packaging solution responds to the requirements of the customer and those associated with market trends and demand. The Circular Metrics are designed to provide an honest and transparent value to a valuable set of sustainability criteria which may be utilized beyond the sphere of packaging, speaking to the need for greater consumer awareness and responsibility towards recycling and reusing.

Potential side-effects

Each of the metrics will be relevant to the decision process when assessing a new packaging solution, however straightforward or complex. The metrics may conflict with one another, differences from one solution to another may be minor and improving one metric may effect another negatively. This helpful side-effect also challenges the importance of prioritizing a sustainability agenda and knowing that in reducing a CO2e value another metric may increase correspondingly to offset the decision. This is a natural consequence of being transparent and accurate in the reporting.

Typical business profile

This industry first initiative is designed to be connected to the design solutions regardless of the business profile of the customers. In dealing with many differing sectors of business, it was challenging to develop a one size fits all process. Clearly one size does not fit all when it comes to packaging, but it was possible to manage the core principles of design processing development in the CAD system, link it to the materials database and therefore bring accuracy of the assessment of material. From that clean and accurate foundation, it is possible to look at everything from retail packaging to industrial, automotive to consumer packaging and everything in between.

Approach

The approach is to respond to customer requirement on reporting where is it requested and to drive association with Circular design where it is not currently applied. This is a way to challenge customer‘s design criteria but also a way to look at the choices that are made during design and ask is there a better way.

1. Design Insights and Briefing: Comprises: Information gathering / Identify priorities / Review product / Understand supply cycle / Define success criteria Tools used at the Insights stage

• CRM

• Circular Design Principles

• PackRight Review

• The Design Brief

• Supply chain data

• The Insights Brief

• PackRight Workshop

• Value Tool Checklist

• Nexxt Resource

• Impact Centre visit

2. Design and Present Solution

Check alternatives utilizing:

• AECAD Database

• MIDAS2020

• The Design Community

• The existing solution

Comprises: Development of ideas / Decide on design and dimensions / Design utilising PackRight Tools / Verify success criteria / Review and refine

3. Review and Validate Solution

Comprises: Review against success criteria / Test proposals and practicality / Validate final design / Approve with customer / Agree solution delivery Tools used at the Review and Validate stage

• PackRight tools

• Customer Trials

• External Sales

• Operations routing

• Commercial / customer services

4. Implement Solution

Comprises: Make ready for order / Define production specification / Align pre-press requirement / Follow up shipment

Tools used at the Implementation stage

• PackRight tools

• Operations routing

• Production tooling

• Pallet loading

• Commercial / customer services

• Record success stories in MIDAS2020

Stakeholders involved

Internal Stakeholders

All of the 800+ design community has been trained in Circular Design Principles. The Circular Design Metrics are way of life in the Design and Innovation communities across the globe. The company has created over 100 thousand CDMs to support reporting of Circular design. This information is used in the communication directly with internal stakeholders in sales and commercial functions.

External Stakeholders

The metrics are used by customers in discussions with the business in all connected functions, be that design development, sales activity, supply chain or commercial. In NPD, CDMs are a valuable asset in delivering on the customer promise of increasing sales, lowering cost, managing risk and becoming more Circular.

The task is to present the metrics accurately and plainly so that decisions on moving forward with production of that solution can be weighed against the criteria set by the customer.

Key parameters to consider

As the investment in circular design is increased, a high quantity of data and insights is gathered into the solutions that are created. Customers are involved in this process.

There will be adjustment, refinement and development, but it is possible of to illustrate the process the designs. For instance, it’s essential to gain insights on supply chain activity to help guide the optimization process and raise that figure to 100%. This is where work with customer is needed and how the metrics is used to focus conversations with customer, partnering and working together to drive circular design in everything that is manufactured. Circular design is already fundamental to the daily processing of design enquiry and part of every design solution.

The metrics allow every designer to demonstrate, promote and be proud of their efforts, continually driving design to be more and more circular.

Implementation and operations tips

• In capturing CDM activity directly from the systems, the company is creating a highly valuable data set from a huge network of design resource – helping to focus design activities broadly, but also with the granularity demanded by customers at every level of assessment – this is actively changing behavior in packaging design across the regions and countries

• Using this data, this knowledge and experience of supply chain, the company has been able to classify optimization levels to meet the expectations of the business and those of the customers. Ensuring no more fiber than necessary is used in the packaging that is supplied

• It also provides highly accurate data for predictive modelling, helping to expand the capabilities of the digital future, and move towards more efficient and effective design solution development with the help of AI

• The Circular Design Metrics can be presented at any stage along the design process

• A design concept, originated in its purist and most fluid form, can be presented to the customer for their opinion and evaluation – the metrics allow to evaluate even at the earliest evolution of a design concept

• A comparison can be provided, of two or more design concepts for the purpose of weighing one design concept over another. If a concept is proposed in competition with another, it is incumbent on the design team to assess the alternative or competing concept against the one being provided. That is part of the process

• In presentation of a design, the metrics are there to assess circular design factors in addition to the specified technical and operational requirement of the design solution

• There are dashboards developed to review and assess multiple items, projects and even legacy portfolio items

• The metrics data is stored in the design database alongside other design data as generated during the design process and is appearing on specifications and daily documentation across the businesses in all regions of activity

• Exposure to customers so far has created great traction and engagement of the assessment of packaging solutions from a circular perspective, changing behavior in adoption to packaging solutions

• In delivery, the focus is to develop a tool with as much automation as possible to drive the impact of the Circular Metrics, making it now a way of life for every designer setting out to develop design solutions for customers

• In recent years there have been significant developments in packaging: in design, production, usage and re-usage policy, the impact on the environment and the transition to a Circular Economy

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