News

Pulpex, a sustainable packaging company, has received £43.5 million from the National Wealth Fund in exchange for an equity share of the business. The Scottish National Investment Bank is also investing £10 million with a further £8.5 million coming from existing investors.


This investment will help Pulpex build its first commercial-scale manufacturing facility near Glasgow. You might wonder why there is so much interest in Pulpex!


Environmentally friendlier packaging


Pulpex has developed a fibre-based bottle that is manufactured from sustainably-sourced wood pulp and that can be recycled just like paper and card. With a lower carbon impact than the glass or plastic packaging that is currently used, this represents a positive contribution to the environment.


The new Glasgow plant will produce 50 million bottles a year and will be the start of the UK’s first fibre-bottle supply chain.


To illustrate the potential for growth, 38.5 million plastic bottles are used each day in the UK, and it is estimated that 16 million of these don’t end up being recycled.


What’s the wider take-home?


In today’s world, environmental consciousness is no longer just an ethical choice – it’s a strategic advantage.


Here’s a run-down of some of the ways that prioritising sustainability can benefit your business.

1. Cost savings and efficiency: Energy-efficient lighting, water conservation measures, and waste reduction initiatives can reduce your utility bills and potentially the cost of operating your business. Tax incentives and grants can also be available for making greener choices. One example would be the use of electric vehicles.
2. Improved brand reputation: Customers are increasingly favouring businesses that demonstrate a commitment to sustainability. A business that is known for its environmentally friendly practices can enhance its brand image and attract more loyal customers. For instance, you could use eco-friendly packaging or support green initiatives to build trust and credibility.
3. **Increased competitiveness: **Customers that prioritise sustainability are often willing to pay a premium for eco-friendly products and services. So, a further benefit of integrating green practices into your business is that you may be able to differentiate yourself from your competitors and tap into a growing market of environmentally conscious buyers. In fact, failing to adapt might mean you run the risk of losing some of your market share to greener alternatives.
4. Reducing risk: Environmental regulations are becoming stricter, both in the UK and worldwide. By proactively implementing sustainable business practices you can stay ahead of regulations and reduce any legal risks of not complying.
5. **Attracting and retaining talent: **Employees, particularly those who are younger, prefer working for companies that fit with their values. Committing to environmental responsibility can work in your favour in attracting top talent, improving employee morale and reducing staff turnover rates.
6. Long-term business sustainability: If your business relies on finite resources, it’s inevitable that at some point in the future it will face challenges. So, by embracing renewable solutions you will be positioning your business for long-term success. Considering the long-term plans for your business now will help you to keep the change incremental and manageable.
7. Access to new business opportunities: As can be seen by the investment in Pulpex, governments and larger-scale investors are pushing for greener supply chains. This means that businesses with strong sustainability credentials may gain access to new contracts, partnerships and funding opportunities. Many large businesses now require their suppliers to adhere to environmental standards, which makes sustainability a key factor in securing B2B relationships.
   

Conclusion


News of the investment in Pulpex demonstrates that adopting environmentally conscious practices is not just about corporate responsibility – it’s a smart business move. While the possibilities available vary from business to business, thinking about and prioritising sustainability for your business can help you be better positioned for growth and resilience in the future.


If you would like help accessing finance for your business idea, please give us a call. We would be happy to help you.


See: https://www.gov.uk/government/news/national-wealth-fund-makes-first-investment-in-scotland