Production Of Sustainable Packaging, Including Using Biodegradable Materials

disposable tableware

By Freepik

Production Of Sustainable Packaging, Including Using Biodegradable Materials
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Invest in B2B companies that develop solutions for manufacturers and retailers who are looking to minimize their environmental impact and offer eco-friendly products to their customers. This also includes B2C companies that develop solutions for environmentally conscious consumers who are willing to pay a premium for sustainable packaging. Revenue streams come from the sale of packaging materials, licensing of intellectual property, and provision of consulting services for clients looking to adopt more sustainable packaging solutions. Examples of companies active in this space are:

Green Eco Paradise produces sustainable packaging made from plant-based materials, such as cassava starch, cornstarch, and rice husks. Green Eco Paradise provides sustainable packaging solutions to B2B and B2C customers, including for events including recently at Universiti Teknologi Petronas (44).

Packaton is a leading paper bag manufacturer that produces biodegradable bags made with long fibers paper to ensure maximum strength. Packaton produces 80,000 paper bags a day through its rapid automated production line. Packaton provides sustainable packaging solutions to B2B and B2C customers (45).

Circlepac's products are made of renewable plant-based materials such as bamboo, bagasse, and FSC-certified birchwood. They are also certified compostable within 90-270 days. As of 2021, Circlepac catered to 68 customers that range from home businesses to 5-star hotels. Some of these establishments include TinyGreens, Omulab, Little People, and Mandarin Oriental KL (46).

Expected Impact

Decrease plastic pollution on land and in the oceans, reduce pressure on landfills, enhance the circular economy and improve an otherwise resource-intensive economy toward a more sustainable pathway.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11) Responsible Consumption and Production (SDG 12) Life on Land (SDG 15)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Life Below Water (SDG 14) Climate Action (SDG 13) Gender Equality (SDG 5)
Sector Sources
  • 1) Prime Minister’s Department of Economy, Economic Planning Unit. 2021. Twelfth Malaysia Plan (12MP) 2021-2025 : A Prosperous, Inclusive, Sustainable Malaysia. https://rmke12.epu.gov.my/en. 2) Ministry of Agriculture and Food Industries. 2022. Executive Summary National Agrofood Policy 2021-2030. https://issuu.com/dan2.0english/docs/executive_summary_national_agrofood_policy_2021-20. 3) National Food Security Policy Action Plan (DSMN) 2021-2025 4) Teacxn. SEA Tech Annual Funding Report. https://tracxn.com/d/reports-geo-annual/sea-tech-annual-funding-report/__auDrOmG0P4ufw4CH0xOfqF4b1A8e1zt8YAA1d0MlEXE. 5) MOF. 2023. Budget 2023 Speech. https://budget.mof.gov.my/pdf/belanjawan2023/ucapan/ub23-BI.pdf. 6) NCER Strategic Development Plan 2021 – 2025. https://www.ncer.com.my/wp-content/uploads/2021/02/NCER_Strategic-Development-Plan.pdf 7) TNB. Pricing & Tariffs For Industrial Consumers. https://www.tnb.com.my/commercial-industrial/pricing-tariffs1. 8) The Edge Malaysia. 2022. Time of reckoning for energy-intensive industries as electricity surcharge rises. https://www.theedgemarkets.com/article/time-reckoning-energyintensive-industries-electricity-surcharge-rises. 9) MIDA. Incentives for New investment. https://www.mida.gov.my/wp-content/uploads/2020/07/Chapter-2-Incentives-for-New-Investments.pdf. 10) Deloitte. 2021. Emerging Tech & Innovation in Malaysia's Agriculture Landscape. https://assets.website-files.com/5e203b2a5cacb3352dee21e4/60e2cd0c4b6c7c74273ee24d_Agriculture%20paper%20with%20MaGIC_v5.pdf. 11) Alam et al 2011. Impacts of Climate Change on Agriculture and Food Security Issues in Malaysia: An Empirical Study on Farm Level Assessment, World Applied Sciences Journal, Vol. 14(3), pp. 431-442. www.idosi.org/wasj/wasj14(3)11/12.pdf 12) The Economy Impact. Global Food Security Index. https://impact.economist.com/sustainability/project/food-security-index/. 13) Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC). 2018. Malaysia's Roadmap towards Zero Single-Use Plastics 2018-2030. https://www.pmo.gov.my/ms/2019/07/pelan-hala-tuju-malaysia-ke-arah-sifar-penggunaan-plastik-sekali-guna-2018-2030/. 14) Global Data. 2022. Malaysia Packaging Market Size, Analysing Key Pack Material (Pack Type, Closure Material and Type, Primary Outer Material and Type), Innovations and Forecast, 2021-2026. https://www.globaldata.com/store/report/malaysia-packaging-market-analysis/. 15) Ministry of Environment of Water Malaysia. 2021. Malaysia Plastics Sustainability Roadmap 2021 to 2030. https://www.kasa.gov.my/resources/alam-sekitar/MALAYSIA-PLASTICS-SUSTAINABILITY-ROADMAP-2021-2030.pdf. 16) Baker Mckenzie. 2021. AgriTech - a promising response to climate change. https://insightplus.bakermckenzie.com/bm/attachment_dw.action?attkey=FRbANEucS95NMLRN47z%2BeeOgEFCt8EGQJsWJiCH2WAVfnLVn2ghRGII%2FOblwHW3C&nav=FRbANEucS95NMLRN47z%2BeeOgEFCt8EGQbuwypnpZjc4%3D&attdocparam=pB7HEsg%2FZ312Bk8OIuOIH1c%2BY4beLEAe2Ai%2B9k3Gy7s%3D&fromContentView=1. 17) GSMA. 2022. Reaching and Empowering Women with Digital Solutions in the Agricultural Last Mile. https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2022/05/Agri-Women-in-Value-Chains-v5.pdf. 18) MGTC. 2022. Green Investment Tax Allowance (GITA) & Green Income Tax Exemption (GITE). https://www.mgtc.gov.my/what-we-do/green-incentives/green-investment-tax-incentives-gita-gite/. 19) Ministry of Environment of Water Malaysia. 2021. Malaysia Plastics Sustainability Roadmap 2021 to 2030. https://www.kasa.gov.my/resources/alam-sekitar/MALAYSIA-PLASTICS-SUSTAINABILITY-ROADMAP-2021-2030.pdf.
IOA Sources
  • 21) The Edge Malaysia. 2022. Scientex's Insatiable Appetite for acquisitions. https://www.scientex.com.my/wp-content/uploads/2022/02/Scientexs-relentless-pursuit-of-growth.pdf. 22) Scientex Bhd. 2023. Fully Compostable BioPBS. https://www.scientex.com.my/product/consumer-packaging/fully-compostable-biopbs/. 23) SABIC. 2022. SABIC enables Scientex Group in developing world's first PP flexible food packaging using post consumer recycled (PCR) oceam bound plastic. https://www.sabic.com/en/news/38367-sabic-enables-scientex-in-developing-worlds-first-pp-flexible-food-packaging. 24) BusinessToday. 2020. VentureTECH to invest RM10 million in Gaia Plas Bhd to provide end-to-end solution for all packaging products. https://www.businesstoday.com.my/2020/12/22/venturetech-to-invest-rm10-million-in-gaia-plas-bhd-to-provide-end-to-end-solution-for-all-packaging-products/. 25) Ernst & Young. 2022. Packaging Market Update. https://assets.ey.com/content/dam/ey-sites/ey-com/en_ca/topics/strategy-transactions/ey-packaging-recap-q2-2022.pdf. 26) Bain and Company. 2023. Asia-Pacific Private Equity Report 2023. https://www.bain.com/insights/asia-pacific-private-equity-report-2023. 27) Hydra Strategy Limited. 2021. Efront releases fourth annual global private equity performance series. http://www.hydrastrategy.co.uk/blog/2021/8/24/efront-gpeps-2021. 28) FFTC Agricultural Policy Platform. 2021. The Challenges in Repurposing Food Wastes and Other Residuals for Agriculture. https://ap.fftc.org.tw/article/2785. 29) MIDA. 2021. Waste to Energy for a Sustainable Future. https://www.mida.gov.my/waste-to-energy-for-a-sustainable-future/. 30) Statista. 2017. Material footprint per capita in Malaysia from 2005 to 2017. https://www.statista.com/statistics/687338/malaysia-material-footprint-per-capita/. 31) Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC). 2018. Malaysia's Roadmap towards Zero Single-Use Plastics 2018-2030. https://www.pmo.gov.my/ms/2019/07/pelan-hala-tuju-malaysia-ke-arah-sifar-penggunaan-plastik-sekali-guna-2018-2030/. 32) Packaging Gateway. 2022. MAREA collaborative approach aligns with 90% of Malaysians who prioritise recycling. https://www.packaging-gateway.com/comment/marea-malaysians-prioritise-recycling/. 33) NC State University. 2022. New Biomaterial Could Save Our Oceans From Plastic Pollution. https://cnr.ncsu.edu/news/2022/03/new-biomaterial-plastic-pollution/. 34) New Straits Times. 2022. Can Malaysia achieve 40 per cent recycling rate by 2025?. https://www.nst.com.my/news/nation/2022/03/778625/can-malaysia-achieve-40-cent-recycling-rate-2025. 35) UN Department of Economic and Social Affairs. 2022. SDG Indicators Database. https://unstats.un.org/sdgs/dataportal/database. 36) WWF. 2022. Is biodegradable and compostable plastic good for the environment? Not necessarily. https://www.worldwildlife.org/blogs/sustainability-works/posts/is-biodegradable-and-compostable-plastic-good-for-the-environment-not-necessarily. 37) Department of Standards. 2021. Draft Malaysian Standards, Halal Consumable Goods – General Requirements. https://upc.mpc.gov.my/csp/sys/bi/%25cspapp.bi.viewfile.cls?upcAttId=11598. 38) Ministry of Environment & Water. 2021. Malaysia Plastic Sustainability Roadmap 2021-2030. https://www.kasa.gov.my/resources/ebook/MALAYSIA_PLASTICS_SUSTAINABILITY_ROADMAP_2021-2030.pdf. 39) Government of Malaysia. 1985. Law of Malaysia, P.U.(A) 437 of 1985, Food Act 1983, Food Regulations 1985. https://importlicensing.wto.org/sites/default/files/members/91/Regulation%20No.437%20-%20Food%201985_01.01.2014.pdf. 40) MIDA. The Preffered Approach for Waste Management in Malaysia. https://www.mida.gov.my/waste-to-energy-wte-the-preferred-approach-for-waste-management-in-malaysia/. 41) DOSM. 2022. Annual Economics Statistics 2022, Food and Beverage Sercices. https://www.dosm.gov.my/uploads/release-content/file_20230302140224.pdf. 42) Packaging Gateway. 2023. Women at the forefront of the packaging industry reveal how to achieve gender equality. https://www.packaging-gateway.com/interviews/women-at-the-forefront-of-the-packaging-industry-reveal-how-to-achieve-gender-equality/. 43) BioPak. Why We Design Packaging for the Circular Economy. https://www.biopak.com/au/about/sustainability. 20) Ministry of Natural Resources, Environment and Climate Change. 2022. Malaysia’s Fourth Biennial Update Report. https://unfccc.int/sites/default/files/resource/MY%20BUR4_2022.pdf. 21) Neo. 2023. Sustainability amid volatility: Nestle Malaysia pushes energy, packaging and plant-based progress despite economic uncertainty, Food Navigator Asia https://www.foodnavigator-asia.com/Article/2023/03/20/nestle-malaysia-pushes-energy-packaging-and-plant-based-progress-despite-economic-uncertainty. 44) Green Eco Paradise. 2023. Biodegradable Party Plates For Universiti Teknologi Petronas (UTP) Hari Raya 2023. https://www.greenecoparadise.com/biodegradables/biodegradable-party-plates/ 45) Packaton. 2023. Packaton. https://www.packaton.com/. 46) Vulcan Post. 2021. They’re Tackling The Big Plastic Waste Issue As Food Deliveries Rise Again Under MCO 2.0. https://vulcanpost.com/730243/circlepac-compostable-eco-friendly-food-packaging-malaysia/ 47) MIDA. 2020. Incentives for New Investment. https://www.mida.gov.my/wp-content/uploads/2020/07/Chapter-2-Incentives-for-New-Investments.pdf 48) Government of Malaysia. Industry4WRD Policy. 2018. https://www.miti.gov.my/index.php/pages/view/4832 49) Government of Malaysia. Economic & Fiscal Outlook and Federal Government Revenue Estimates 2023. 2023. https://budget.mof.gov.my/pdf/belanjawan2023/ekonomi-fiskal/EUFORE2023_270223.pdf 50) Malaysian Investment Development Authority, Advisory Panel Meeting, June 9, 2023 51) Scientex Bhd Financial Results. Bursa Malaysia. Accessed in April 2023. https://www.bursamalaysia.com/market_information/announcements/company_announcement 52) Scientex Packaging (Ayer Keroh) Bhd, Bursa Malaysia. Accessed in April 2023. https://www.bursamalaysia.com/market_information/announcements/company_announcement 53) Box-Pak (Malaysia) Bhd. Bursa Malaysia. Accessed in April 2023. https://www.bursamalaysia.com/market_information/announcements/company_announcement