TemperPack Adds to SJF Portfolio Carbon Mitigation

The updated carbon impact model reflects the addition of TemperPack and increased carbon mitigation across SJF's portfolio

TemperPack, headquartered in Richmond, VA, brings sustainable cold-chain packaging technology to companies that ship perishable goods such as food (meal-kits, grocery delivery, etc.) and pharmaceuticals. TemperPack is at the cutting edge of sustainable packaging and is empowering companies and their consumers to make a lasting environmental impact by displacing toxic polystyrene (Styrofoam®) alternatives.

The Challenge

In the United States, packaging waste represents one-third of all municipal trash, costing local governments billions each year in disposal costs[i]. A growing segment in the packaging industry, cold-chain packaging including temperature-controlled containers keep products like food and pharmaceuticals fresh and protected from the elements during the journey to the end consumer.

Over the past several decades, cold-chain packaging has been dominated by Expanded Polystyrene (EPS) foam products, like Styrofoam. The process by which Styrofoam is made is extremely detrimental to the environment: the EPA reports that the Styrofoam manufacturing process is the fifth largest source of hazardous waste in the United States[ii]. Furthermore, EPS is energy intensive to manufacture and is made from petroleum products, meaning it has an outsized carbon footprint. Beyond its environmental impacts, it is also a health concern: its constituent parts (Benzene and Styrene) are known carcinogens and have been linked to instances of Parkinson’s disease and leukemia[iii].

As an illustration of the negative impacts of polystyrene, take, for example, its interaction with our oceans and coastlines. Polystyrene fragments easily and often and endures in the environment over time (estimates from 50 years in a marine environment to hundreds of years in terrain environments and landfills)[iv]. Microscopic pieces of polystyrene slip through the filtration systems of water treatment plants and make their way into the oceans where they often pick up pieces of biological material, like algae, thus smelling and feeling like food for small marine animals[v]. These plastics are ingested by small marine animals and then move up the marine food chain as these animals are eaten, and so on. The presence of polystyrene can threaten the health of these marine animals and their ecosystems, the health of humans who end up eating these marine animals, and the economic health of fishing communities[vi].

Polystyrene is considered to be so hazardous that more than 140 regulations restricting the usage of single-use plastics have been passed, with cities from San Francisco, New York City, and Los Angeles to Washington, D.C., Minneapolis, and Portland (OR) banning its use outright[vii].

The Solution

TemperPack has created and proven the viability of a sustainable design solution to the social and environmental problem EPS poses. Displacing Styrofoam is not just a byproduct of TemperPack’s operations and business success but is an integral piece of its business model. This pursuit led to the development of ClimaCell®, the first packaging material that not only offers sustainability advantages over Styrofoam but also matches its functionality and scalability. The company recognizes that too often, sustainability-minded products are not widely adopted because they fail to match the functionality of the incumbent products or are not cost competitive at scale. TemperPack developed the supply chain and manufacturing of ClimaCell to achieve high volumes and rapid scalability, while delivering on the core product performance and cradle-to-grave sustainability.

The Carbon Impact Report

Every year, SJF Ventures performs an analysis of the carbon emissions avoided by SJF portfolio companies. This year, SJF added TemperPack to the model, and the analysis found TemperPack is indeed making a meaningful environmental impact.

To understand TemperPack’s emissions, the SJF team performed a three-stage life cycle analysis encompassing raw material emissions, manufacturing emissions, and transportation emissions. This analysis looks at greenhouse gas emissions avoided from using more environmentally-friendly materials, manufacturing techniques, and logistics. As mentioned above, the processing/production of Styrofoam is also one of the largest sources of hazardous waste in the U.S., but this impact is not captured in the CO2 model.

TemperPack’s raw material emissions displacement estimate is driven by its usage of textile waste for the most material portion of its fiber product, 73% of total product weight. Using textile waste is a direct repurposing of material destined to be discarded, allowing TemperPack to claim zero emissions for these salvaged materials.

On the manufacturing side, EPS container manufacturing is an energy-intensive molding process compared to the relatively simple assembly of TemperPack’s containers. The same holds for the manufacturing of TemperPack’s PopBox solution – it is a much simpler, less energy-intense manufacturing technique than that of bubble wrap.

Lastly, due to the foldability of TemperPack’s products, TemperPack was able to use over 6,000 fewer full trucks in 2018 than would have been required to ship the same quantity of units of EPS foam packaging solutions; using this plus destination tracking, SJF was able to compute the displacement of CO2 from the logistical benefits of TemperPack’s products.

The Results

In total, TemperPack’s sustainable cold-chain packaging solutions displaced 5.7 million pounds of Expanded Polystyrene (EPS) foam, or Styrofoam, and 311,000 pounds of bubble wrap in 2018. This amounted to the displacement of 16,000 metric tons (35 million pounds) of CO2 equivalent.

TemperPack’s mitigation total is composed of displacing nearly 6,000 metric tons of CO2 equivalent from raw material emissions as compared to EPS foam and bubble wrap, 9,000 metric tons in manufacturing emissions, and an additional 1,000 metric tons reduction from the transport efficiencies of TemperPack’s innovative fold-flat design.

Mitigation of 16,000 metric tons of CO2 equivalents is analogous to taking 3,500 cars off the road for one year, growing 420,000 tree seedlings for ten years, and represents the amount of carbon stored by 13,500 acres of U.S. forests in one year.

TemperPack’s 16,000 metric tons of CO2 equivalent avoided adds to SJF’s 2.59 million metric tons of CO2 equivalents avoided from all portfolio companies, bringing the total CO2 equivalent avoided to 2.61 million metric tons, an increase of 2% over 2017 values. 2018 also saw large increases from portfolio companies Hyla (+1220%), ENTOUCH Controls (+199%), and Optoro (+71%). Altogether, the total SJF portfolio CO2 mitigation is equivalent to taking 549,000 cars off the road for one year, growing 66.9 million tree seedlings for ten years, and represents the amount of carbon stored by 2.1 million acres of U.S. forests in one year.

The Future

SJF is excited about the positive impacts TemperPack had in 2018 and is even more motivated by the company’s potential opportunity to further take down polystyrene in 2019 and beyond. Specifically, this report analyzes the carbon impact of the products that were sold during the 2018 year: its ClimaCell, Fiber, and PopBox products. TemperPack launched the ClimaCell product in 2018 – a fully curbside recyclable cold-chain solution – and plans to continue to grow this and other innovative product lines. In July 2019, TemperPack was awarded its first ClimaCell-related patent by the U.S. Patent Office. SJF looks forward to our investment partnership with TemperPack in its continued commercial and impact-oriented growth.

Sources

[i] The New York Times

[ii] Rutgers University

[iii] The Environmental Protection Agency

[iv] Institute for European Environmental Policy

[v] The Guardian

[vi] Institute for European Environmental Policy

[vii] The Herald Sun