Innovation

Eurogroup has pioneered an innovative approach to packaging solutions that significantly contributes to achieving several United Nations Sustainable Development Goals. Their innovation revolves around the use of eco-biodegradable and compostable materials in their packaging products. Through the replacement of traditional, environmentally harmful packaging materials with organic crops or other sustainable alternatives, ecological footprint is reduced aligning with specific SDGs.

The company's innovative solution directly addresses Responsible Consumption and Production SDG 12 by promoting responsible resource use. By manufacturing and supplying eco-friendly packaging materials, they are facilitating more sustainable consumption patterns, as these materials have a reduced environmental impact compared to conventional ones. “What originally took 100 years to degrade, when intervened with salt bases, came down to 8 years and the compostable material derived to only 18 months”. Additionally, the company's commitment to Climate Action SDG 11 is evident in their use of eco-biodegradable and compostable materials, which can help mitigate greenhouse gas emissions and combat climate change by reducing the carbon footprint associated with packaging production and disposal.

This innovative approach also aligns with SDG 9 Industry, Innovation, and Infrastructure. Eurogroup’s dedication to eco-friendly packaging fosters innovation within the packaging industry, encouraging the development of more sustainable practices and infrastructure. This not only supports responsible resource use but also contributes to the broader goal of advancing industry-related innovation and building resilient, sustainable infrastructure, thus furthering global sustainability objectives.

Inspiration

The main inspiration for the business were the ongoing worldwide ecological trends that were starting to attract relevance within all business industries. These were primarily material recycling and sustainable packaging. This was the exciting business opportunity that Michel was able to anticipate and therefore be able to create a successful and demand flexible company to help with a worldwide concern. As he states in the interview, “We are a company highly adaptable to market changes. We aim to be very responsive to market demands. The innovation came as we identified trends that were delayed in the country by looking at what was happening internationally.” The performing cycle of the business had also a recent political benefit within the national territory, since new norms about plastic used were starting to be taken seriously by the nation’s stakeholders. “The innovation peaked, when a new law was passed, prohibiting single use bags. This approach greatly facilitated our development of biodegradable and compostable bags." This was explained as a benchmark for the business as an innovative opportunity and how it contributed to a worldwide problem.

Overall impact

Eurogroup SAC's transition to eco-friendly packaging has proven to be a game changer, significantly reducing the degradation period of bags to a mere 18 months. This shift has elevated the company's standing as a socially and environmentally responsible entity, resonating positively with consumers. This enhanced reputation has attracted new clients and strategic partners with a pronounced commitment to sustainability, leading to an expanded network of business opportunities and partnerships.

The adoption of eco-packaging has not only solidified Eurogroup's position within its existing market but has also facilitated entry into previously untapped markets and customer segments. In an era where sustainability plays a pivotal role in consumer decision-making, Eurogroup's eco-friendly solutions have served as a distinctive competitive advantage, fostering customer loyalty and reducing dependence on specific industries.

However, the business landscape in Peru introduces a set of challenges. The lax enforcement of environmental regulations and a diminishing concern for the environmental impact of non-eco-friendly materials have compelled some companies to prioritize cost reduction over sustainable practices. Regrettably, Eurogroup has experienced a consequential loss of significant clients in this context.

As Eurogroup navigates these challenges, the company remains committed to its environmental principles while exploring strategies to maintain competitiveness. The delicate equilibrium between ecological responsibility and economic considerations is central to Eurogroup's ongoing efforts to navigate the evolving dynamics of the marketplace.

Business benefit

The sustainable packaging solutions innovation has proved to be greatly beneficial to Eurogroup SAC. By illustrating Eurogroup SAC’s commitment to corporate social responsibility, the innovation has cultivated a positive brand image for the company. This enhanced reputation has attracted new business partners who share the value of sustainability, leading to an increase in business opportunities for the company. In addition, the adoption of eco-friendly packaging has enabled the company to expand into new market segments, specifically more environmentally conscious demographics. Ultimately, through its expansion into new market segments and acquisition of new business partners, the company has decreased its reliance upon specific stakeholders, allowing them to be more independent, flexible, and apply a broader stakeholder approach to its business operations. Another benefit of the innovation is that the transition to eco-friendly materials has resulted in cost savings over the long term. Even though initial investment costs of eco-friendly product inputs are slightly higher, these materials have lower waste management and disposal costs, leading to cost savings over time.

Social and environmental benefit

Through the promotion of the use of ECM-biodegradable and compostable materials in their packaging, Eurogroup SAC plays a large role in alleviating the burden on waste management systems as well as our environment.

Single use plastic breaks down over time into microplastics that litter the land, air and sea. These microplastics make their way into the diets of wildlife and marine life which are consumed by humans. This poses a large threat to the health and well-being of the community as seen in the findings of a study conducted by the United Nations (UN) which stated that the impacts of plastics can be cancerous. By using biodegradable materials, Eurogroup ensures the rapid degradation, safety, health, and wellbeing of the community and their clients as well.

As a result of their innovation, the soil in which community members use in agricultural areas is improved, as well as the soil gets enriched with organic matter and thus having a healthier structure and fertility due to less chemicals being absorbed into the soil. Fertile soil improves the food security of a community and country.

Lastly as a consequence of this innovation, new opportunities for work were created for people.

Interview

Michel Mahchi, Co founder