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How Brands Are Using Packaging to Meet ESG Goals

Brands that optimize packaging can see long term gains in sustainability performance, reducing their overall carbon footprint during transportation.

15 January 2026

A few months back, there was a product launch by a well-known fashion brand. The design team was proud of their new eco-friendly collection, but when the first shipments reached the stores, the excitement quickly turned into concern.  

The retail packaging was bulky and filled with excess plastic, which customers quickly pointed out on social media. Although the fashion apparel was sustainable, the packaging around it ruined these efforts. 

This is a harsh reality that many fashion and retail companies face today as Environmental, Social, and Governance (ESG) are becoming essential rather than complementary.  

Retail product packaging must move from being an afterthought to becoming a sustainable business strategy. Brands that leverage optimized packaging can see long term gains in sustainability performance, reducing their overall carbon footprint during transportation. 

Packaging for ESG Goals 

Fashion and retail brands are considering packaging as a core sustainability driver to achieve ESG targets. 

  • ​Environmental: Materials used, recyclability, and shipping efficiency affect a brand’s environmental footprint. Using more sustainable packaging materials helps reduce waste, and these improvements will compound over time with each shipment.  
  • Social: Customers demand transparency and eco-conscious practices. Sustainable packaging solutions show responsibility and build loyalty, especially in the fashion industry. 
  • Governance: Regulatory bodies worldwide are enforcing stricter waste management and packaging waste laws, making compliance non-negotiable. 

One major shift is the move toward sustainable packaging materials, where companies are replacing virgin plastics and foams with biodegradable, recyclable, or recycled alternatives. This not only reduces environmental impact but also meets growing consumer demand, as studies show that most shoppers are willing to pay more for eco-friendly and sustainable packaging solutions. 

Another key approach is right-size packaging for efficiency. Oversized cartons and fillers often lead to wasted space and higher transportation emissions. Packaging optimization fits products more precisely into each container, optimizing shipping volumes and helping customers lower their emissions and logistics costs. 

The apparel and retail industry is under increasing pressure to minimize single-use plastics across its packaging operations. Instead of relying on polybags and wraps, companies are experimenting with compostable garment bags, paper-based wraps, and even reusable packaging loops. These innovative packaging solutions align with global efforts to reduce plastic pollution while also enhancing customers’ unboxing experiences. 

Production samples and prototypes ensure the design is practical, durable, and compliant with quality assurance standards before a full launch. Testing early helps avoid waste and prevents costly redesigns later. 

Packaging is a communication tool for sustainability. Labels that highlight eco-certifications, recycling instructions, or sustainability achievements help consumers make informed decisions and strengthen brand trust. Clear messaging on packaging sends a powerful signal that ESG is not just an internal objective, but a value that extends directly to customers. 

Advantages of Sustainable Packaging

Most importantly, sustainable packaging can drive sales growth, as customers are more likely to purchase from brands that visibly prioritize sustainability. Beyond helping companies achieve their ESG targets, sustainable packaging delivers clear business advantages. Brands can lower supply chain costs by reducing freight volumes and minimizing material waste.  

At the same time, eco-friendly packaging enhances brand reputation, resonating strongly with today’s eco-conscious consumers who actively seek out responsible companies. It also ensures regulatory compliance across global markets where packaging waste directives are becoming increasingly strict. 

At OIA Global, we recognize that packaging isn’t just about protecting products, it’s about protecting the planet and delivering measurable business value. Our packaging designers work closely with fashion and retail brands to design and engineer innovative solutions that reduce wasted space and satisfy unique sustainability targets. 

OIA stretches across the entire supply chain to produce custom designs that comply with regulatory, commercial, recyclability, and waste standards. Our in-house team can create innovative packaging solutions for both transportation and retail product packaging scenarios. 

Ready to make your packaging more ESG-compliant?