Signode Steel Strapping

Embracing a Sustainable Future with Biodegradable Packaging Solutions

Innovation signode

Authors

Priscila Soto

Priscila Soto

Roger Rogowski

Roger Rogowski

Maximus Marcone

Maximus Marcone

Lynda DAlessandro

Lynda DAlessandro

School

St. John's University

St. John's University

Professor

Charles Wankel

Charles Wankel

Global Goals

6. Clean Water and Sanitation 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action

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Summary

Signode, a leading global manufacturer of packaging consumables and equipment, has demonstrated a strong commitment to sustainability through its ambitious Twentyby30 program. By implementing measures such as reducing greenhouse gas emissions by 31%, enhancing water stewardship, and introducing eco-friendly products like the Dylastic® Bio-based PP strap, Signode aligns with the UN SDGs, particularly focusing on Climate Action (SDG 13), Clean Water and Sanitation (SDG 6), and Responsible Consumption and Production (SDG 12). The company's efforts in circularity, waste reduction, and social sustainability initiatives further contribute to a comprehensive approach addressing multiple Sustainable Development Goals.


Innovation

Signode, a key division of Crown Holding Inc., has embarked on an ambitious journey to align its business operations with the United Nations Sustainable Development Goals (SDG’s), spearheading innovative solutions for a sustainable future. This commitment is encapsulated in their Twentyby30 sustainability objectives, launched in 2020. Signode's approach is holistic, covering aspects from business practices and product innovation to employee welfare and community engagement.

At the heart of Signode's sustainability strategy is the innovative use of materials and technology. For example, their introduction of the Dylastic® Bio-based PP strap, manufactured with a minimum of 40% renewable bio-plastic, stands out as a significant innovation. This product not only reduces CO2 emissions by approximately 50% but also maintains compatibility with existing tools and equipment, ensuring a seamless transition for customers. This innovation is a direct contribution to SDG 12 (Responsible Consumption and Production) by promoting sustainable industrial processes and reducing reliance on fossil-based virgin plastics.

Beyond product innovation, Signode's commitment to sustainability extends to comprehensive environmental management. Their efforts in reducing greenhouse gas emissions, managing water use responsibly, and enhancing recycling practices contribute to multiple SDGs, including SDG 13 (Climate Action), SDG 6 (Clean Water and Sanitation), and SDG 15 (Life on Land). The company has made substantial progress in reducing its carbon footprint, achieving a 31% reduction in emissions as of 2022, and is actively working towards a 50% reduction by 2030. These efforts demonstrate Signode's dedication to integrating sustainable practices into their business model, making a tangible impact on global sustainability goals and fostering a better world.


Embracing a Sustainable Future with Biodegradable Packaging Solutions

Inspiration

Carlos and the management team are taking action and making preparations in climate change strategy. The leader is taking into account potential alternative outcomes and incorporating actors, processes, and impact throughout the whole value chain. Signode constantly strives to increase the effectiveness of its operations and output while incorporating sustainability into every facet of its operations. Carlos is inspired to promote alignment on the steps needed to accomplish shared objectives and to effect important changes.

He is also motivated by the fact that the company is addressing emissions reduction by taking steps to unlock more value from existing resources. He said, “For example, our multi-year beverage can light-weighting initiative, which resulted in a substantial 6.44% global average reduction in our standard 12oz. or 330ml can weight, reduces the need for virgin metal and enhances the continual re-use of aluminum”. He explains that when using less material in each package, they decrease material usage and their overall energy consumption and the associated GHG emissions. Overall, he states that the goal is to provide safety and durability standards to their customers and meet their consumers’ expectations.

Overall impact

Signode's commitment to sustainability is exemplified through its innovative and comprehensive approach to environmental impact reduction, social responsibility, and product design. The company's Twentyby30 sustainability objectives, launched in 2020, have propelled a series of impactful measures across various dimensions.

In the short term, Signode achieved remarkable success in reducing its greenhouse gas (GHG) emissions, surpassing the initial goal of a 10% reduction per billion standard units of production by the end of 2020. The practical changes in operations, equipment, and energy efficiency led to a 31% reduction in GHG emissions by 2022. Validation from the Science Based Targets initiative in 2019 reinforced Signode's commitment, to more aggressive goals, including a 50% reduction in absolute GHG emissions by 2030. The company's adaptability to global supply chain market forces, including the expansion in the beverage can business, demonstrates the resilience and responsiveness of its sustainability strategies.

Signode's water stewardship strategy, with a 3.5% reduction in water usage through losses and leaks identification, reflects its commitment to preserving freshwater resources. The company's focus on responsible water management extends to identifying watershed-level projects, validating high water scarcity locations, and replenishing 8% of water consumed from these risk watersheds. The implementation of water-efficient technologies and adherence to stringent monitoring and validation processes underscore Signode's dedication to long-term environmental protection.

Furthermore, in product design, the introduction of the Dylastic® Bio-based PP strap, with a minimum of 40% renewable bio-plastic, showcases the company's commitment to eco-friendly solutions. The reduction of CO2 emissions by approximately 50% provides tangible evidence of Signode's dedication to mitigating the environmental impact of its products. These initiatives collectively demonstrate Signode's innovative, measurable, and evolving contributions to sustainability in the packaging industry.

Business benefit

Signode's introduction of the Dylastic® Bio-based PP strap, which contains at least 40% renewable bioplastic, has allowed the company to establish a competitive position in the fast-growing market for environmentally friendly packaging solutions. This innovation not only addresses the growing environmental concerns but also meets the increasing demand from consumers and businesses for environmentally friendly products. Signode can benefit from this market segment by capitalizing on it, which results in an improved reputation for their brand and more loyalty from customers. This is because more organizations and consumers tend to prefer aligning themselves with brands that show a strong dedication to sustainability. Signode's unique products can attract new business opportunities as clients seeking environmentally friendly packaging options are drawn to the company's enhanced reputation.

Furthermore, the creation and manufacturing of the Dylastic® Bio-based PP strap presents opportunities for investment and partnership, especially for stakeholders who are interested in sustainable technology. This innovation may have resulted in higher revenue streams, as the market often values environmentally friendly items and is willing to pay a higher price for them. Also, Signode's pioneering efforts in this field may have opened new markets, particularly in industries where sustainability plays a crucial role in purchasing decisions.

On an internal level, adopting sustainable methods such as manufacturing bio-based straps can enhance employee well-being and increase employee retention. Employees are frequently more motivated and happier when they work for a firm that aligns with their beliefs, especially in terms of environmental stewardship. This has the potential to result in a staff that is more actively involved, a decrease in employee turnover, and the possibility of attracting talented individuals who are interested in working for an environmentally conscious organization. In summary, Signode's foray into bio-based materials using their Dylastic® strap demonstrates how environmental accountability may align with commercial prosperity, resulting in a mutually beneficial situation for the firm, its workforce, and the wider community.

Social and environmental benefit

The Dylastic® Bio-based PP strap, produced by Signode using at least 40% renewable bioplastic, has numerous advantages to both society and the environment. This product diminishes its reliance on non-renewable fossil fuels by integrating a minimum of 40% renewable bioplastic. This transition can aid in reducing the overall carbon footprint linked to the manufacturing of plastic materials. Bio-plastic production often leads to reduced carbon emissions in comparison to traditional plastics.

Additionally, the bioplastics utilized in these straps are obtained from renewable plant-derived substances. This can promote the adoption of sustainable agriculture practices, as there is an increasing need for commodities that can be utilized in environmentally friendly materials. This product incorporates sustainable materials, adhering to the principles of a circular economy that aims to reduce waste and optimize resource utilization. This methodology has the potential to result in more enduring production and consumption patterns. Also, the presence of products such as the Dylastic® Bio-based PP strap can exert a significant impact on market trends and customer behavior, prompting a greater number of enterprises to allocate resources towards sustainable materials and technology. This can have a more extensive influence on the environment's preservation and the promotion of sustainable development.









Interview

Carlos Miranda, Sales Manager Colombia

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Business information

Signode Steel Strapping

Signode Steel Strapping

Tampa (HQ), Florida (HQ) but it is used worldwide, Worldwide
Business Website: https://www.signode.com/
Year Founded: 1913
Number of Employees: 5001 to 10000

Signode is a worldwide company with its headquarters located in Tampa, Florida and it is proudly part of Crown Holdings, Inc.'s Transit Packaging Division. Signode is a market leader in the production of equipment, tools, software, and consumables for transit packaging that enhance end-of-line packaging processes and safeguard goods while in transit.

It offers its clients comprehensive transit packaging solutions by combining this wide range of products under hundreds of reliable brands. It has more than 9,000 workers globally, 80+ manufacturing sites on six continents, and an annual revenue of over $2 billion.

Signode's primary objective is to produce stretch, straps, and protective packaging. It also manufactures the packaging instruments and equipment required to apply the bulk packaging materials. It is known to be a trailblazer in the industrial packaging sector, having transformed it with a long history of creating innovations in materials, processes, and automation technologies that are focused on the needs of the customer and the environment.