Innovative Sustainable Packaging: Wipak Group's ESG Vision

In this episode of the Venari podcast's Sustainable Packaging CEO series, Tim Hartnell interviews Karri Koskela, CEO of Wipak Group, about sustainable packaging and the company's mission toward carbon neutrality. Karri shares insights into Wipak's innovative approach to sustainability, highlighting their ambitious ESG goals and the importance of transparency in environmental claims. The conversation also touches on the future of packaging, the evolving role of digitalization, and Wipak's strategies for attracting top talent in the industry.

Transcript:

Tim Hartnell:Welcome to the Venari podcast. I'm Tim Hartnell and in this episode of the Packaging CEO series, I'll be speaking with Karri Koskela, who is CEO at Wipak Group. Karri has worked with some fantastic brands including Huhtamaki, DS Smith, Suomien, and and he began his career in 97 working in consulting. Karri, welcome. It's great to be talking to you again. Thanks for coming on.

Karri Koskela:Well, thank you, Tim. Happy to be here. Thank you for introducing my background. At the moment, it almost sounds that I've been in the industry, I'm not going to say way too long, but it seems that I've been around.

Tim:Certainly done some things, that's for sure. So in this episode, we're going to be talking about Karri's role, company mission, a little bit about ESG and of course, the future of packaging. So let's get started. Karri maybe you can tell us a little bit about Wipak?

Karri: Well, of course Wipak is the European and Asian brand and packaging arm of the Wihuri Group. We are of course a family owned company already from 120 years ago at the moment then and I think we've been particularly from the late 60s a company that is known for innovation and I think nowadays our world has been  about sustainability not only the recent years or months, but we've actually already are walking down a very ambitious strategy on, on carbon neutrality since 2019  where we are pretty successful actually moving forward. So I think we are one of the larger players on the flexible packaging side particularly and nowadays doing maybe I would cautiously say even better than than in the past.

Tim:Great, that's what we like to hear. Fantastic. And then so last year I saw obviously you you you brought out the company's first ESG report, which must have been a pretty, you know, proud moment for you all. What's most exciting about the report? Maybe you can tell our listeners a little bit more about that.

Karri: Well, of course, like with everything you got your first so, so a lot of the excitement of course came together on that one. And, and a lot of it actually sort of came around to, to the nut that we wanted to really tell the industry, tell the audience really what we've been achieving on our strategy path. So a lot of that was actually then showcasing the success that we've done as a team, the real genuine actions. And if you want to put an icing on the cake, I think being  able to report over 60% reduction on scope one and two, emissions on, on CO2, which is verified was a clear indicator to the industry saying is that we don't just set targets way towards the future, but we are able to report also some really genuine progress on that first report that came out. And of course now talking to you, Tim, now of course, at this stage of the year, we're actually just came out with the second one. So it seems that we're on a roll.

Tim:Yeah, absolutely. And obviously we had a discussion around it at our around table in Helsinki last year where we were talking about sustainability, ESG and what companies were trying to do to to sort of achieve that. And I remember you talking, yeah, you know, at length about some of those things you just mentioned there. It's on everyone's mind at the moment, I think. Yeah, scope 1, scope 2,certainly scope 3, are all sorts of difficult indicators, difficult to sort of get right. But it sounds like, yeah, you're doing a lot to achieve there, so it's great to hear. Jumping around a bit on the questions, but. Yeah, you've obviously been CEO for a while now. Have you got any sort of lessons that you you've learned as obviously you know, prominent figure within packaging?

Karri:Well, I think like my colleagues at the moment, we've seen very much of the traditional corporate learnings that we've done at the moment. But but maybe particularly in, in, in the recent times actually around the sustainability topic. I mean, I've been working in packaging with sustainability over 20 years already. But nowadays it really is about the hard proof. So, so one of the key learnings that that I've done actually over the last couple of years is that. I'm not going to say that it was easy to make statements in the past. But it was certainly easier. And one of the key learnings at the moment we're getting currently at the moment is that if you're going to make an environmental claim, if you're going to make a sustainability claim, you need to be really ready to prove it and to validate it. So the, the element of transparency on, for example, ESG reporting is mind-blowing compared to what it was even five years ago. And, and, and the second thing also, which is really important is that then when you talk about sustainability, you're able to demonstrate. You're really able to demonstrate it not only by numbers, but like I said, I'll give you a practicality. This is an award-winning product, Flexport coming from the 24 German packaging awards. This is where the sustainability really materialises. It's a product, it's a genuine product that can be actually then showcased not only to customers, but sold tomorrow. So the learnings which are coming through. For example, one of the things is, is really about. Showing the real life. Examples and the transparent numbers on sustainability. But one of the other learnings also at the moment and it starts seeming is that I'm a little bit already old, which at least to my kids I am, is that that there's a huge amount of work that we CEOs still need to do regarding the image of plastics of flexible plastics packaging. One of the learnings that I nowadays look at it already as a a senior figure in in the field is that we still get actually questioned significantly some of the negative images and impacts of plastic packaging like you know, ocean pollution, which is a big issue. But at the same time, if you look at packaging and you look at food waste overall in a way between in a way the production all the way to home, 30% of food is lost between that supply chain which packaging could prevent. And I think what we've as an industry leaders have not succeeded really well is to really promote is that if plastic packaging or flexible packaging can be part of that solution, we are sitting at an opportunity which is a magnitude of CO2 emissions of the China annual emissions as a whole. So if somebody would talk about this, that we've got a solution actually to how to fix China's CO2 emissions globally, it would be CNN or BBC News even before the evening session hits. And I'm not trying to put China wrongfully here on the spotlight. I'm just trying to give a magnitude on this view and these benefits that we're able to achieve with flexible packaging. We are not in a way, in a good way. And that perception is something as a learning that I'm taking away. Is that that maybe if I could rewind 10 years, maybe that's a thought that I would actually go back and think, is that how I can systematically start improving that as an image as well?

Tim:Yeah, yeah, I know. It's fascinating. I think, yeah, I mean, rewinding the times, I think people would like to do a lot of things and try and tackle things and maybe a slightly different way or get to the point of it quicker. But but certainly some interesting metrics there. I wonder if you've seen any changes between your, the segments you work across. So you got food packaging, pharmaceutical, you got the Med devices side. Do they vary in terms of where you're seeing sustainability head? Are there more challenges in one than the other?

Karri: Well, of course, if we just look at Europe, for example, it's clear is that the packaging and packaging waste regulation is going to impact the timeline and therefore it has certain changes. Now the medical devices industry also has certain recent regulations on. So-called MDR regulations, which is actually a significant risk assessment issue that they need to go through. So a little bit comes in phases, but I think it's a good example in, in 2009,  we announced in one of the leading fairs in, in medical devices is that we're going to go for carbon neutrality and sustainability. And everybody at the fair asked, is that what on earth are you marketing? And they were telling us is that this is not about the industry. If you now go and visit the same fair, there is not a single packaging supplier who would not have a sustainability theme. So I think what is really important to see also is that we talk about food, we talk about recyclability, la, la, la, all that's on the agenda. But the medical devices, hospital care, pharma is not that far behind because they need to do also their bit towards the future. And that's been a recent interesting trend that's been increasing a little bit silently, but particularly in the last two years.

Tim:Yeah, that's, that's really encouraging. I'm hearing that as well. We all know that you have, you know, here pharmaceuticals, sort of Med device packaging players say, you know, take 7-8 years to change your format. Like it's incredible. So they're obviously, yeah, there are challenges with that, obviously, but that's good to it's good to know that that it is top of mind and it's becoming part of the sort of, you know, agenda. Great. Turning our attention to sort of hiring now. I had a quick question about,  yeah, how do you attract talent to to sort of whip back and yeah, what do you look for? Maybe that's a functional aspect to that, you hire in one function more than the others. But yeah, maybe you could tell our viewers about about sort of some of some of those.

Karri: Well, I think it starts fundamentally from really basics on on how we are attracting talent nowadays and, and and that's why I'm really happy about our strategy because the sustainability and again what we're able to demonstrate clearly is a magnet actually for talent. We've been actually a little bit even surprised about it. So, so when we interview people irrespective of what the position is in whether it's somebody at the offices, whether somebody at the show floor actually consistently the sustainability is actually coming through. So in the hiring issue, it really boils down is that the brand needs to talk to the individuals. Nowadays companies used to think is that in the past that people came to them for work. But nowadays we need to think it through in a completely different manner. Is that we need to be the ones that attract the top talents because there are  10s and hundreds of other companies who are going after the same top talents. And if our brand, if our messaging and the discussion dialogue that we're able to have with with those type of people is not correct, it doesn't matter what kind of a show we put on, it's not going to, it's not going to fly.  People are so good nowadays actually in researching their future jobs and things like that. And that's why really the background, background story in our case on sustainability and carbon neutrality is the number one attracting element what we currently have. Then of course, our local leaders are doing a lot of work with their communities, with the universities, with the technical schools really to bring in people slowly, surely introduced so that they know what we do. So it's not just about high profile PowerPoints and then presentation, but it is a lot about the legwork as well. But we need to do the marketing towards the people and particularly the younger generation in a similar effort that we're doing it to our customers when we're doing the product. And that's why HR is completely different in terms of a function. Now you asked me about capabilities, for example. It's, it's nothing, it's not anymore about technical or sales skills or things like that. It's about digitalization. It's about understanding value chains. It's about understanding storytelling. You know, you know, the hardcore R&D will never disappear. There are new wings, new materials and things like that which is there. So, so the new world particularly is digitalizing at the moment in addition to the hardcore classical packaging related skills which are in the background. And that digital element, we are looking at each and every candidate again across the different positions, what we have, because it will be inevitably not only about the future, because it's already about yesterday.

Tim:Yeah, brilliant. Yeah, I think you hit the nail on the head. I think it's, yeah, holistic view, you know, looking at a number of obviously factors in, in terms of attracting talent, but you've got to all be on the same page. Otherwise it's, you know, inherently going to have challenges there. So no, thank you for that. So yeah, finally. Yeah, maybe share with us, you know what you're excited about over the next, next few years. Clearly the sort of landscape shifting a little bit.

Karri: We talked about PPWR and some of the regs across Europe. Yeah, maybe, maybe share with us some, some, some, some things you're excited about in the in the future. R&D first of all, as a topic, particularly one of those things that actually is an interesting thing, you know, again, PPWR coming on play. People development really again going back to your good question about talent attraction, those are not anymore something that is outsourced to departments, neither the R&D or HR, but they are clearly one of the top agendas which is on, on my topics. We have a  certain internal transformation programme at the moment of course what we're doing and making our company even more customer friendly. But if you want to again put a bit of a sort of a topic that you want to highlight, maybe the recent publication that we did together with Digimarc, actually of becoming one of the centres of excellence globally together with Digimarc really to digitalize packaging in a manner which is cost effective, scalable and would solve a lot of issues, whether it's related to supply chain management, quality control, fraud management, not to mention about recyclability. That digital thing actually is one of the most exciting things currently that I'm I'm working on on a day-to-day basis.

Tim:Brilliant. No, thank you for sharing. And yeah, I think collaboration is key. I keep hearing collaboration, collaboration, collaboration all the time when I'm speaking to clients. So yeah, it seems like that is the future, but it's exciting. So thank you for yeah, sharing that. Well, look, Karri, it's been a pleasure. I know you're a busy man, so I'll let you get off to the day-to-day. Thanks for again for coming on. Yeah, I'm sure our listeners will be super pleased with with obviously the way you've spoken and what you've spoken about. So appreciate it. Good luck in the coming months and...

Karri: Yeah, absolutely happy to be here.

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