In 2002, 45% of the world’s top 250 companies reported on sustainability. Today, 96% do. Sustainability metrics that once differentiated companies have become the new baseline. This doesn’t mean sustainability has stalled. Rather, it has matured. As geopolitical and regulatory risks continue progressing, what it means to be a sustainable business is evolving.
For leaders guiding their companies into the future, sustainability must be more than an aspiration or a value. It’s a practical tool for operating stronger, more resilient businesses. The leaders best positioned for success are the ones integrating sustainability as a core business function, operating at the intersection of regulation, risk, and performance.
As a global leader of paper-based packaging solutions, my company has seen firsthand how embedding sustainability at the center of business decision-making can return powerful results, directly influencing operational continuity, pricing patterns, cost structures, and reliability, along with environmental benefits. For today’s leaders, the opportunity lies in turning sustainability into a strategic driver of long-term value.
THE NEW DIRECTION OF DIFFERENTIATION
For businesses today, the impacts of a warming climate, resource availability, and supply chain volatility have moved from future risks to everyday operating realities. In this shifting landscape, leaders who consider environmental and climate-related factors when making investment decisions can better prepare their companies for changes or economic shocks when they arise. Proactive environmental choices like sustainable sourcing practices and circular systems help businesses manage disruption, rather than react to it.
Infrastructure is a great example of how sustainability can serve as a strategic lens through which key decisions are made. If we’re evaluating a potential plant upgrade at Smurfit Westrock, factors like energy efficiency, water usage, and climate resilience are as important to consider as logistics and labor costs. These criteria now influence projections and long-term competitive positioning. During a recent upgrade at our Tres Barras paper mill in Brazil, this approach resulted in a 20% increase in production, while reducing Scope 1 and 2 emissions per tonne by 12%—demonstrating the far-reaching impact of sustainability-led investment.
Evolving sustainability regulations are also a critical factor reshaping expectations around how companies should structure and manage their operations. Businesses are navigating a complex patchwork of regulatory environments across regions, including the Corporate Sustainability Reporting Directive (a European Union regulation that requires companies to publicly report their environmental and social impact), the Extended Producer Responsibility (a policy that makes companies responsible for their products’ full lifecycle), and other emerging initiatives. This reality calls for a nimble, forward-looking approach—reimagining operations to stay ahead of uncertainty and capitalizing on emerging opportunities.
TURN CUSTOMER PRIORITIES INTO A SUSTAINABLE ADVANTAGE
A powerful sustainability strategy is turning the lens toward the customer. When companies focus on solving real customer challenges—whether minimizing complexity, improving efficiency, or reducing their footprint—sustainability moves beyond an internal initiative and becomes a source of tangible value.
One example is Liberty Coca-Cola, which bottles and distributes Coke products in New York, Philadelphia, and New Jersey. The bottler has long pushed boundaries by investing in technology and innovative packaging alternatives that minimize plastic waste. As part of its ambitious goal to reduce plastic in its operations, the company became the first bottler worldwide to collaborate with us to replace plastic beverage rings with paperboard carriers. Liberty Coca-Cola estimated that the change is eliminating around 200,000 pounds of plastic annually while helping the company meet its large consumer base’s expectations.
This kind of progress requires the right tools and insights. The ability to evaluate materials, measure environmental impact, and test alternatives can help customers meet both operational and sustainability goals. By investing in customer-focused capabilities like our data-driven Design2Market program and experience centers, where customers can explore packaging solutions and design tools first-hand, we’ve seen how advanced tools help companies develop solutions that deliver impact across the value chain.
SUSTAINABILITY AS AN INNOVATION ENGINE
Circularity can be a powerful catalyst for smarter design, inspiring innovation that reduces waste and lowers emissions, while positioning companies as industry leaders equipped for long-term performance. When regulatory changes in Mexico required Costco to replace the plastic “dog bone” handles on its bottle multipacks, we partnered with the company to develop a circular alternative. The new regulations pushed us to reimagine what we could achieve with paper. The resulting fiber-based handles not only enhanced sustainability, but also improved functionality and aesthetics.
Since the solution’s launch, Costco has eliminated approximately 1 million pounds of plastic and counting, while improving customer experience. At the same time, the business impact has been powerful for us, growing our partnership as Costco locations across Asia and North America adopt the new packaging solutions. What began as a sustainability challenge became an opportunity to create new avenues of growth.
As the sustainability landscape continues evolving, success is no longer about signaling intent. It’s about how leaders integrate sustainability into operations to strengthen resilience, growth, and trust with customers and partners. The leaders who align their strategies with sustainability’s evolution will shape the future of their industries, driving meaningful change for all.
Ken Bowles is CFO of Smurfit Westrock.