New Zealand impact fund backs sustainable packaging player

This is the third investment by IEF, which was set up last year by ethics-focused financial advisory groups New Ground Capital, Impact Ventures, and Akina Foundation, with a view to delivering tangible social and environmental outcomes along with market-rate financial returns. The first two investments include Waikaitu, an organic fertilizer maker, and Melon Health, a platform for managing chronic diseases.  

Grounded produces a range of sustainably sourced packaging materials, including mailer boxes and bags for e-commerce, as well as pouches and wrappers for food products. Much of the offering is made from bio-based or recycled materials, non-toxic inks, and materials that replace conventional unrecyclable oil-based films with bio-based, home-compostable laminates and films.

“Packaging plays an important role when it comes to branding, transportation and prolonging the shelf life of goods, but the complexity of supply chains makes it hard for businesses to be certain that their packaging is truly sustainable,” Ben Grant, co-founder of Grounded said in a statement. “Our end-to-end platform will make it easy for businesses to shop for and customize sustainable state-of-the-art packaging from around the world.”

Grounded claims that all its products feature “total visibility” into their production, supply chain, and lifecycles. Every product is said to be 100% reusable, recyclable, or compostable. Printing techniques and materials create less waste and leave non-toxic residues, while logistics process moving materials from factory to customer aim for reduced energy requirements. All products are independently tested, including all components such as inks and glues.  

“This kind of innovation lays down the challenge to other businesses who know they need to change. We know New Zealanders care about waste – especially plastic waste – which is so destructive for our natural environment,” Paul Majurey, chairman of IEF, added. “Grounded is part of a wider step-change we’re seeing, responding to consumers who increasingly expect to be able to make purchases that don’t create problems with waste. It’s encouraging to see action in the private sector.”

The investment comes one week after Singapore-based impact investor Circulate Capital confirmed a $106 million first close for a fund targeting the plastic crisis in Asia. The region is said to be the origin of 60% of the plastic found in global oceans. Circulate will invest in waste management, recycling and circular economy start-ups and small to medium-sized enterprises focused on preventing plastic pollution and advancing the circular economy.

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• Topics
• Australasia
• Cleantech
• Early-stage
• New Zealand
• Impact investment
• manufacturing