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Collaborative Sustainability: Magna’s Journey Toward Circular Packaging Solutions

In the pursuit of sustainability, even small changes can lead to significant impact. At Magna, we’ve embraced this mindset in our approach to packaging, a critical aspect of our commitment to reducing waste and supporting a circular economy.

Compared to a traditional linear economy that extracts raw materials from natural resources to create products that are ultimately discarded, a circular economy strives to minimize waste through better design, longer use and the re-use or recycling of as much material as possible.

Packaging is front and center in this endeavor, as too much of it ends up in landfills. Implementing a circular packaging strategy is vital for addressing climate change and biodiversity loss — and that’s exactly what Magna is doing in the drive to achieve net-zero emissions status by 2050.

Achieving a successful circular strategy is challenging as it cannot be accomplished single-handedly; it demands collaboration across the supply chain, encompassing customers and packaging suppliers alike. Without full participation, the packaging stream remains linear rather than circular.

Stacks of recyclable wooden shipping pallets

In 2021, Magna joined Suppliers Partnership for the Environment (SP), an organization that unites stakeholders across the automotive supply chain to develop system-level circular strategies. Through SP, we’ve engaged in collaborative efforts to innovate and improve our packaging practices.

A prime example of this collaboration is the work led by Magna packaging engineer Alex Phan. In 2022, Phan noticed that the 48 x 45-inch wood stringer pallets used to ship mirrors had slight specification differences depending on the OEM, which meant they couldn’t be reused across different OEMs or within the supply base. This led to an unnecessary increase in pallet waste.

Phan’s insight, combined with the efforts of a dedicated packaging team within SP, resulted in the development of a common footprint for these pallets. By late 2023, this standardization was adopted by most OEMs, suppliers, and pallet manufacturers across North America. Today, we can reuse the same pallets for all OEMs, reducing the number of new pallets required, saving costs, and minimizing waste.

This initiative is just one example of how Magna is integrating circular economy principles into our operations. Through our collaboration with SP, we’ve also created a color-coded ranking system for recyclability and developed design guidelines for containers. These efforts ensure that everyone involved in the supply chain has a voice in shaping more sustainable practices.

Collaboration remains key as we continue driving towards a circular economy. We need to learn more about what’s working and where’s there’s room for improvement to make our packaging more sustainable.

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Head shot - Bridget Grewal

Bridget Grewal

Implementing a circular packaging strategy is vital for addressing climate change and biodiversity loss — and that’s exactly what Magna has done in the drive to achieve net-zero emissions status by 2050.

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