The packaging industry has witnessed an unprecedented shift towards sustainability in recent years, driven by mounting environmental concerns and consumer demand for eco-friendly solutions.
According to a McKinsey report, about 50% of consumers are willing to pay 1 to 3 per cent more for sustainable packaging, highlighting the critical importance of sustainability in today’s market.
This trend is particularly relevant in the stretch film sector, where innovative practices and materials are essential to reducing environmental impact.
As the need for eco-friendly packaging solutions intensifies, stretch films play a pivotal role in achieving sustainability goals.
These films are widely used in various industries to secure and protect goods during transportation, yet they often contribute to significant plastic waste.
Recognising this challenge, Thong Guan Industries Berhad has positioned itself at the forefront of sustainable packaging innovation, continually striving to minimise its environmental footprint while delivering high-performance products.
Thong Guan’s commitment to sustainability is evident through its comprehensive approach, which encompasses product innovation, waste reduction, energy-efficient manufacturing processes, and its comprehensive Environmental, Social, and Governance (ESG) Framework.
This article delves into the company’s sustainable practices and innovations in stretch film manufacturing, showcasing its journey towards becoming a sustainability advocator in the packaging industry.
Drawing from their latest Sustainability Report, we explore Thong Guan’s ESG policy, strategies, initiatives, goals and achievements. We aim to provide a detailed understanding of their initiatives and inspire other industry players to adopt similar sustainable practices.
Understanding Sustainability in Packaging
What are Sustainability, 3Rs and Closing the Loop and the Importance
Sustainability in packaging refers to developing and using packaging solutions with minimal environmental impact throughout their lifecycle.
This includes selecting materials, manufacturing processes, and disposal methods, prioritising the 3Rs: Reduce, Reuse, and Recycle.
For Thong Guan, sustainability means not only meeting current environmental standards but also setting new benchmarks for eco-friendly practices in the packaging industry.
An integral part of this approach is closing the loop, which involves creating a circular economy in which materials are continuously reused and recycled, minimising waste and reducing the need for new raw materials.
Industry Trends in Sustainable Packaging
The global packaging industry is rapidly evolving to meet sustainability goals.
Key trends include the increased use of biodegradable and compostable materials, the integration of recycled content, and the adoption of innovative designs that reduce material usage without compromising functionality.
A notable example is the shift towards thinner, stronger films that offer the same protective qualities with less material.
Thong Guan is at the forefront of these trends. Continually innovating to ensure their products are both high-performing and environmentally friendly, TG also pursues load optimisation and sustainability through data in strategic partnerships with Newton and other industry players.
Challenges in Closing the Loop
Achieving sustainability in packaging is fraught with challenges.
One significant hurdle is balancing safety and sustainability. For instance, the European Safe Logistics Association (EUMOS) and EU government policies emphasise both aspects to ensure that packaging is not only sustainable but also meets stringent safety standards.
Through its Newton R&D Centre, Thong Guan plays an active role in policy-making, advocating for regulations that harmonise these two critical objectives.
This approach ensures that sustainability efforts do not compromise the safety and integrity of packaged goods.
The goal is to enhance road safety and minimise accidents related to load stability during transport.
Fewer accidents lead to reduced product damage, which not only decreases the need for repackaging and redistribution but also prevents unsaleable goods that would otherwise contribute to waste and increased carbon emissions.
By ensuring load safety, we reduce both waste and the carbon footprint associated with additional transportation, significantly supporting overall sustainability efforts.
Moreover, closing the loop presents challenges, such as ensuring the availability and quality of recycled materials and establishing efficient recycling and waste management systems.
Thong Guan addresses these challenges through its in-house recycling facility, comprehensive recycling program—RE:USE under the #LiveGreen initiative, and collaborations with industry partners to enhance the circularity of its products.
Thong Guan’s Sustainability Vision
Thong Guan is dedicated to fostering a safer, enhanced, and more sustainable world.
This commitment is driven by focusing on product innovation, cultivating a positive organisational culture, minimising waste, reducing emissions, and responsibly managing resources.
Their mission reflects a holistic approach to sustainability, aiming to lead by example in the packaging industry.
It is a unique position for a plastic packaging manufacturer—a sustainability advocator.
Sustainability Goals
Thong Guan has set ambitious sustainability goals:
- Reducing GHG emissions (Scope 1 & 2) by 10% by 2025.
- Increasing the use of renewable electricity to 10% by 2025 and 20% by 2030.
- Achieving 30% of total sales from recycled-content products by 2035.
- Reducing water consumption per kg of production output by 10% by 2025 and 20% by 2030.
- Increasing the use of Post-Consumer Recycled (PCR) materials to 10% by 2030.
- Investing over RM 30 million in sustainability initiatives by 2025.
Core Strategies
Thong Guan’s core strategies are aligned with the United Nations Sustainable Development Goals (SDGs) and focus on:
- Operational Eco-Efficiency: Enhancing resource efficiency and reducing waste.
- Circularity and Closing the Loop: Promoting the reuse and recycling of materials to create a closed-loop system where products are continually repurposed, reducing the need for new raw materials and minimising waste.
Positive Environmental Impacts: Implementing practices that minimise environmental footprints and contribute positively to the ecosystem.
“At Thong Guan, sustainability is not just a goal; it’s a responsibility we embrace throughout our operations. By integrating innovation, efficiency, and environmental stewardship into our business, we aim to set new benchmarks for sustainable packaging. Our commitment to creating a greener future extends beyond product development—it’s about leading the industry towards lasting, impactful change.” — Dato PK Ang, Executive Director of Thong Guan Industries Berhad
The alignment demonstrates a comprehensive commitment to global sustainability efforts.
- SDG 3 – Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages.
- SDG 4 – Quality Education: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
- SDG 5 – Gender Equality: Achieve gender equality and empower all women and girls.
- SDG 6 – Clean Water and Sanitation: Ensure availability and sustainable management of water and sanitation for all.
- SDG 7 – Affordable and Clean Energy: Ensure access to affordable, reliable, sustainable, and modern energy for all.
- SDG 8 – Decent Work and Economic Growth: Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
- SDG 9 – Industry, Innovation, and Infrastructure: Build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation.
- SDG 12 – Responsible Consumption and Production: Ensure sustainable consumption and production patterns.
- SDG 13 – Climate Action: Take urgent action to combat climate change and its impacts.
- SDG 16 – Peace, Justice, and Strong Institutions: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
- SDG 17 – Partnerships for the Goals: Strengthen the means of implementation and revitalise the global partnership for sustainable development.
Innovative Practices in Stretch Film Manufacturing
Eco-friendly Materials
Thong Guan integrates sustainable materials into their products, significantly reducing the reliance on virgin materials.
- Post-Consumer Recycled (PCR) and Post-Industrial Recycle (PIR) Resins: These recycled resins contribute to a circular economy by ensuring that materials are reused and repurposed, thereby minimising waste.
Its recycled content stretch films, which are part of its #LoopClosers range, include NanoGreen, Maxstretch Regen, Maxstretch Stealth, Maxstretch Green, and FlexLite30.
- Green Resins: Additionally, Thong Guan uses bio-based resins derived from wood industry by-products, demonstrating a commitment to sourcing eco-friendly materials. This green stretch film can be custom-requested in customers’ stretch film orders under NanoBio.
This approach not only reduces environmental impact but also supports the sustainable management of natural resources.
- Paper Packaging Materials: 100% of TG’s primary packaging materials (paper core and carton) are made of recycled and recyclable material.
Thong Guan’s efforts in adopting these materials reflect a broader industry shift towards sustainable production practices prioritising environmental stewardship.
Energy-Efficient Processes
Thong Guan has invested heavily in energy-efficient manufacturing processes, setting a benchmark for sustainability in the industry.
- Solar PV Systems: The installation of solar photovoltaic (PV) systems at six of their factories with a capacity of 4425.8 kWp represents a significant step towards renewable energy adoption. With an investment of RM 13.3 million, these systems have considerably reduced the company’s reliance on conventional energy sources.
In 2023 alone, the solar PV systems helped save over 3,840 tCO2e, underscoring Thong Guan’s commitment to reducing its carbon footprint and advancing towards a sustainable energy future.
- Energy Audits: To further enhance energy efficiency, Thong Guan has conducted comprehensive energy audits across six factories.
These audits identify critical areas for energy optimisation, improving operational efficiency and reducing energy consumption.
By continuously monitoring and optimising energy use, Thong Guan ensures their manufacturing processes are as efficient and sustainable as possible.
- GET Programme: TG subscribed to Tenaga Nasional Berhad’s (TNB) 49,578 MWh GET Programme to increase its use of renewable electricity.
GET electricity is from solar and hydro generators, which allowed TG to reduce GHG emissions in line with its support of the Paris Agreement and local development of renewable energy sources.
Waste & Environmental Impact Reduction
Thong Guan’s proactive approach to waste reduction includes several innovative programs designed to minimise environmental impact:
- Operation Clean Sweep (OCS): This initiative aims to prevent resin pellet spills and reduce plastic waste. By implementing strict handling and containment procedures, TG ensures efficient use of raw materials and minimises waste.
OCS is an international programme designed to prevent the loss of plastic granules (pellets, flakes, and powders) during handling by the various entities in the plastics’ value chain and their release into the environment.
- Waste Segregation, Recycling Programs and In-House Recycling Facility: These comprehensive programs have reduced waste sent to landfills by 37% compared to the FY2022 baseline.
By segregating different types of waste, enhancing recycling efforts, and utilising their in-house recycling facility, Thong Guan contributes significantly to closing the loop in their manufacturing processes, ensuring that as much material as possible is repurposed rather than discarded.
- Wooden Pallet Recycling Programme: TG runs this programme to close the materials loop. 47,324 pieces of broken and used pallets were collected for recycling, and every recycled wooden pallet saves 28 kg of CO2eq.
Working closely with vendors and other stakeholders, TG is committed to building a sustainable supply chain and contributing to CO2e and landfill avoidance.
Sustainable Product Development
New Products Innovations & Solutions
TG continues to lead the way in sustainable product development, introducing innovations that enhance performance while reducing environmental impact:
- Thinner and Stronger Stretch Films: TG is committed to reducing material use while enhancing product efficiency.
As such, products like Next (67-nanolayered stretch film) and Maxstretch Series (thinner than market stiff film) are designed to be thinner and stronger, using less material without compromising on durability or performance.
- Sustainability with Data: iPAK5 is an Internet of Things (IoT) solution that improves visibility and traceability in packaging operations.
By providing real-time data and insights, iPAK5 enhances operational efficiency and supports more sustainable packaging practices, such as optimum stretch to reduce waste, consumption data for monitoring, and more.
- Collation Shrink Film with Recycled Content: This product incorporates 50% recycled material content, demonstrating Thong Guan’s commitment to integrating recycled materials into its product line. This is a challenging feat, as recycled materials will affect the properties of shrink film.
By using significant amounts of recycled content, this shrink film not only meets performance standards but also supports circular economy principles.
Collaborative Efforts and Market Influence
Industry Partnerships
TG collaborates with industry leaders to drive sustainability and innovation in packaging:
- ExxonMobil: Partnering to develop recyclable collation shrink films, combining expertise to create products that meet high sustainability standards while maintaining performance. This created a positive chain effect in the industry, making the production of recycled collation shrink films possible. Hence, this spurred the participation of more suppliers in producing green resins.
- Dow Chemicals: Partnering with Dow Chemicals to bring awareness to load stability through a ProtectionPlus programme. Load stability significantly impacts sustainability and safety.
- EUMOS: Active participation in EUMOS’ initiatives to set the industry standard for safety.
- SIRIM: Collaborating for life cycle assessment (LCA) of their nano stretch film product, ensuring that every stage of the product’s life cycle is evaluated for environmental impact and optimised for sustainability.
- Newton R&D Centre: Utilising data-driven insights to optimise load stability and resource usage, Newton plays a pivotal role in closing the loop and ensuring that Thong Guan’s products are safe and sustainable.
Market Influence
TG actively influences the market by promoting sustainability and environmental responsibility:
- Customer Awareness Programs: These initiatives educate customers on the benefits of environmentally friendly products and the importance of after-use collection. By raising awareness, TG encourages more sustainable consumption patterns.
- Industry Associations: It is also actively engaged in associations like the Malaysian Plastic Manufacturers Association (MPMA) and the Federation of Malaysian Manufacturers (FMM), where they advocate for higher industry standards and promote sustainable practices across the sector.
Community Engagement
Deeply committed to supporting local communities and has various Corporate Social Responsibility (CSR) activities in place.
- Educational Site Visits: These visits engage the next generation by educating them about sustainability and the importance of environmental stewardship. Through hands-on experiences, Thong Guan inspires young minds to value and practice sustainability.
- Community Outreach Programs: Thong Guan supports local communities through donations, volunteer work, and initiatives to promote sustainable practices. These programs not only provide immediate benefits but also foster long-term community development and environmental awareness.
“Sustainability is at the core of everything we do at Thong Guan. Through initiatives like our in-house recycling programs and innovative green products, we are committed to reducing our environmental footprint while fostering a circular economy. We believe that every step we take towards sustainability, no matter how small, contributes to a bigger, global impact.” — Ms Chai Lee Hwa, Senior Sustainability Manager
Long-Term Vision
Thong Guan envisions leading the packaging industry as a sustainability advocator, with a commitment to continuous improvement and innovation.
Their long-term vision focuses on creating a positive environmental impact, setting new benchmarks for sustainability, and inspiring others in the industry to follow their lead.
Conclusion
Thong Guan’s journey towards sustainability in stretch film manufacturing showcases our dedication to eco-friendly practices, innovation, and community engagement.
By setting ambitious goals and implementing comprehensive strategies, we are not only meeting current environmental standards but also setting new benchmarks for the packaging industry.
As we continue to innovate and lead by example, we aim to inspire others to adopt sustainable practices and contribute to a greener future.
Support sustainable packaging practices and explore Thong Guan’s range of eco-friendly products.
Join us in creating a safer, enhanced, and more sustainable world. The future of packaging lies in sustainability. Together, we can significantly impact the environment and drive positive change in the industry.
