Avery Dennison: Behind China's First Green Label Factory
Avery Dennison has reached a notable sustainability achievement in China, with its Guangzhou operation securing the status of the first green factory in the pressure-sensitive labels sector at the national level.
Given China's critical role in global manufacturing, this recognition is particularly rare and coveted.
To date, only about 6,000 factories in China have received this accolade, with only 1,300 earning the honour in 2025.
Setting a benchmark for sustainable operations
This accreditation is the result of sustained enhancements in operational sustainability.
While the immediate impression visitors might have is of the advanced automated logistics systems and cutting-edge coating technologies, the award reflects a deep commitment to sustainable practices.
The facility has implemented improvements in energy efficiency and developed closed-loop systems for wastewater and emissions while also integrating strategies for material reuse.
This is “proof that sustainability and industrial performance can go hand in hand,” writes Mike Colarossi, Head of Enterprise Sustainability at Avery Dennison, on LinkedIn.
“This is leadership in action.”
Driving towards sustainability goals
The Guangzhou milestone is part of Avery Dennison's broader sustainability journey.
The company has set ambitious targets for 2025 and 2030, aligning with several United Nations Sustainable Development Goals (SDGs).
Some key objectives include ensuring that all core product categories meet the 'Sustainable ADvantage standard', as 78% of its Solutions Group and 67% of its Materials Group have achieved this by 2024.
Moreover, Avery Dennison aims to cut its Scope 1 and 2 greenhouse gas emissions by 70% from the 2015 baseline and is collaborating with supply chains to reduce its Scope 3 emissions by 30% against a 2018 baseline.
So far, Scope 1 and 2 emissions have been reduced by 54%, with a long-term goal of achieving net zero by 2050.
The company is also committed to sourcing 100% certified, deforestation-free paper fibre, now at 97% compared to 45% in 2015.
Additionally, Avery Dennison strives to divert 95% of waste from landfills, ensuring that at least 80% of waste is recycled.
91% of operations are already landfill-free and 68% of waste is recycled.
A recent report showcases a 15% increase in water efficiency at sites in high-risk areas, surpassing their 2024 target of 17% water efficiency enhancement in such locations.
An industry first
Avery Dennison has ingeniously crafted the first RFID label to earn APR Design for Recyclability recognition from the Association of Plastic Recyclers, signalling an industry-first validation of RFID's compatibility with North America's PET recycling stream.
The company's integration of CleanFlake adhesive technology with its materials science expertise enables the RFID label to separate cleanly from PET during mechanical recycling, thereby reducing contamination and enhancing recovery rates.
With a report by Bain & Company highlighting that 96% of the top 50 brands prioritise recyclability and waste minimisation, this development offers a feasible solution to accelerate circular packaging.
“RFID technology is essential for the effective and sustainable management of modern supply chains, supporting brands with greater inventory visibility, product traceability and loss prevention,” says Pascale Wautelet, Vice President, Global R&D and Sustainability at Avery Dennison Materials Group.
“APR’s recognition marks a pivotal step forward in advancing circular packaging and supporting the global transition to sustainable material use.
“As consumer goods companies set increasingly ambitious recycling targets, Avery Dennison remains committed to helping our customers reduce waste by investing in innovation and designing products that can be effectively recycled.”
Given PET’s extensive use in bottles, food containers, cosmetics and household items, recycling-compatible RFID technology has the potential to significantly reduce plastic waste, extend PET’s lifecycle, and assist brands in realigning with their sustainability goals.
Avery Dennison plans to make this innovation widely available later this year, while collaborating with independent certifiers to advance broader market recognition.
A commitment to circularity and innovation
Circularity remains central to Avery Dennison’s product innovation.
As part of its commitment, the company is developing solutions to ensure that single-use consumer packaging and apparel labels can be recycled, composted or reused.
By embedding recycled or renewable content into its materials, Avery Dennison is actively fostering the circular economy.
The Guangzhou accreditation is more than just recognition; it is a sign of the potential future of manufacturing.
By demonstrating how sustainability and industrial excellence can coexist, Avery Dennison elevates the standard for the entire pressure-sensitive labels industry.
With evident progress against its 2025 targets and even more progressive 2030 goals, Avery Dennison’s strategic path illustrates a dedicated effort to entrench sustainability into every facet of its operations while advancing global climate and circular economy initiatives.
