Socio-economic Impact of Recycled Papers

Posted by Will Green 09/04/2013

Recycled papers have a positive impact on society – reducing co2 emissions, saving water, energy and reducing landfills.  In this way, it perhaps seems quite obvious how switching to this type of paper has a positive social impact.  However, the impact runs much deeper.  A flourishing recycled paper industry also has the power to:

• Boost business performance/growth through showcasing green credentials
• Provides a cyclical commodity which can continue to be bought and sold
• Delivers growth to communities with FSC certified forests
• Drives innovations in tech and manufacturing – in meeting the product needs of modern businesses
• Creates local jobs, sorting and separating office waste

The social-ripple of the recycled paper industry

In analysing an organisation’s impact on society, considering how the world might look if the business operation didn’t exist is an interesting way of establishing what the priorities should be in developing corporate responsibility programmes.  This process may allow the business to think more broadly about its impact – beyond its immediate stakeholders and standard carbon reduction targets.

In these austere times, business and industry is under increased pressure to deliver growth.  Doing so in a responsible manner though is crucial too, so in considering a businesses impact on society, Arjowiggins Graphic has analysed the socio-economic ripple of the recycled papers industry – finding that in addition to delivering a more sustainable product to market, the industry is facilitating positive outcomes on a far greater scale.

Facilitating a circular economy

Firstly, recycled paper, by its very definition is a cyclical commodity – able to be bought and sold up to eight times over.  Across many industries, sudden scarcity of a particular commodity can have damning effects on a business’ bottom line – the US drought and its impact on wheat prices is one such example, causing food manufacturers across the board to increase prices or risk taking a hit to profits. The paper lifecycle sees waste paper, virgin and recycled, being collected from offices, sorted, de-inked and turned into pulp for the remanufacture of paper.  Then using a chlorine free process to create a high quality white look then sold to distributers and businesses who covert the paper for use – after which, the paper is re-collected for sorting and so the process continues.  In being able to recycle, this purchasable product itself lasts longer, generating revenues over and over from what is essentially made of the same components – a valuable commodity for contracting economy.  Similarly, analysts have urged that a move toward a cyclical economy could reap great rewards from materials costs savings of up to $600bn a year. [1]

Creating more from less

Using recycled paper is a great demonstration of how we can all efficiently use resources in a world increasingly strained by consumer demand.  A recent environment report from the Confederation of European Paper Industries (CEPI) confirms this, stating that: “due to recycling and the use of waste and by-products in the pulp and paper industry, 1m3 of wood creates products worth 2.38m3 of wood” – doubling the output of the commodity.  As the recycled paper industry maximises the use of materials this helps to protect biodiversity around the world, ensuring that areas vital for peoples’ livelihoods still exist in the future.  For example, the German paper industry has demonstrated how encouraging people to recycle paper can benefit ecosystems by reusing 77% of the paper consumed in 2011, saving vital raw materials. [2]

Creating a job opportunity

Due to the nature of the recycled paper supply chain, in addition to facilitating a reduction in landfill, energy and carbon, recycled paper production creates a foundation of local jobs too.  In fact, ten times more jobs are created on average by not sending waste to landfill, as collecting and sorting waste paper increases the manufacturing process.

To sort through nearly 350,000 tonnes of paper a year Arjowiggins Graphic works with a range of small companies and charities, which sees a broad and diverse range of employees sort through the waste paper.  In particular, we’ve worked with organisations to provide work for employees with special needs – not only creating jobs but also helping people build independence and gain work experience.  What’s more, in providing a broad range of recycled paper options, some papers are manufactured from a mixture of virgin fibres for supreme quality.  Where this is the case, wood is sourced from FSC certified forests – providing work in communities managing forest for paper production.

This ‘human dimension’ of sustainability is something that is not often explored yet is something that should be central to any sustainability plan.  So far our partnerships have helped us to invest in equipment, increasing the number of employees and the amount of waste paper collected from 90 tonnes to 600 tonnes in three years. [3]

Driving innovations in technology

Sustainable businesses invest in more than just people, with many also driving innovations in technology. Technology is central to achieving an environmentally friendly business, as all methods across a company must adapt to cut waste and save energy and water.  Recruiting highly skilled professionals, technological advancements help businesses to develop methods that produce high quality results whilst also reducing the environmental impact. For Arjowiggins Graphic innovations in the de-inking process in our Greenfield mill have enabled the business to push its environmental credentials even further than before, as the developments have made it possible to create high quality white paper.

A point of differentiation amongst competitors

When a business pushes itself to increase the sustainability of its products this encourages the industry as a whole to reach higher standards, and competition is good for business.  Using accreditations can to help identify who the leaders in an industry are – such as the WWF paper index – as can understanding which businesses have signed up to specific commitments such as WWF’s International Climate Savers initiative.  By revising the criteria every year the paper index in particular ensures that paper companies are continually striving to be more sustainable.

Continually striving to reach the optimum level of sustainability has a positive impact across the supply chain, particularly with the businesses that use the end product. Businesses using recycled paper save water, energy and greenhouse gases – showcasing these green credentials, in what is now becoming a competitive space, serves as a tangible tool.  Arjowiggins Graphic’s online savings calculator allows businesses to generate their own Environmental Benefits Statement to showcase their achievements.  Demonstrating that a business’ decision to use sustainable resources is increasingly important to consumers, particularly on marketing materials, 64 per cent of consumers state they would perceive companies in a more positive light if their marketing material were printed on sustainable paper. [4]

The impact of choosing sustainable products, such as paper, runs much deeper than the tangible savings that are made in gaining more from less. Sustainability can help create more jobs, protect valuable resources, aid businesses in showcasing environmental credentials and encourage innovation – all from opting to choose paper with a better background.  When developing a CR strategy, businesses would be wise to consider the broader impact of the operation and perhaps consider the daunting prospect of a world without it, in order to truly integrate responsible practices into the fabric of the business.

1 – Towards the Circular Economy: an economic and business rationale for an accelerated transition]. Ellen MacArthur Foundation. 2012. p. 60.

2 – CEPI Sustainability Newsletter, Issue 5, January 2013, p.g 3

3 – Arjowiggins Graphic, CSR Report, 2011

4 – Arjowiggins Graphic, Market Research, 2010