Special thanks to Jim Schulz of Travel Tags, Inc. and Rich Olson of Optimum Card Solutions, LLC, who generously shared their insights and experiences for this blog post. Your valuable contributions have enriched the content and provided readers with a deeper understanding of the subject matter.
Growing Focus on Eco-Friendly Gifts Cards
The rising awareness of environmental sustainability has brought about a shift in corporate gift- giving. With recent statistics revealing that 68% of businesses prioritize eco-friendly gifts, a mindset of environmental responsibility is growing in the professional world. Cognizant of this shift, GiftCard Partners maintains its dedication to eco-friendly solutions and sustainable practices in the gift card industry.
Sustainable Alternatives
According to Judith Enck, founder of the advocacy group Beyond Plastics, some 70% of gift cards are made from polyvinyl chloride plastic (PVC). Aside from the health hazards associated with the PVC manufacturing process, the material is difficult to dispose of. And while PVC can be recycled, recycling programs that accept PVC are not always readily accessible to consumers.
After failing to classify PVC as hazardous waste in 2022, the EPA is expected to make a decision on the issue by April 2024. The outcome of the decision could impact markets like the gift card industry which rely heavily on PVC for their products. This emphasizes the importance of exploring sustainable and accessible alternatives in gift card production and distribution methods.
Gift card experts confirm that the industry is trending rapidly toward plastic substitutes, such as paper. SVS Director Dustin Szwed points to the recent increase in availability of sustainable substrates, stating that the shift has been followed by the demand for “science-backed studies relating to the environmental impact of gift cards” to prove the efficacy of gift card sustainability innovations.
Biodegradable Paper Gift Cards
Paper is one such alternative for sustainable gift cards. Many retailers are making the switch, including Visa®, Starbucks, Best Buy1, Apple, and Amazon. Paper gift cards are affordable to manufacture and easier to recycle and dispose of safely. Compared to the 21 grams of carbon created by a single plastic gift card during production, paper gift cards produce only .66 grams. With the same appearance and feel of traditional plastic gift cards, biodegradable paper options are an excellent physical alternative.
Leading the way in paper gift card production is Optimum Card Solutions. Through selective sourcing partnerships and proprietary technology, Optimum Card Solutions has scaled their gift card output to 100% sustainable paper products while maintaining stringent quality levels. Their 2023 carbon footprint analysis confirms that customers can effectively lower their carbon footprint by partnering with Optimum Card Solutions for their paper gift card needs.
In addition to the shift in gift card substrate, the industry has seen a similar shift in packaging materials. With producers transitioning to FSC-Certified carriers and consolidated packing and shipping methods, the sustainability trend is expanding to all touch points of gift card manufacturing and distribution.
Consider Travel Tags Inc., who have been tackling gift card sustainability efforts for the past decade. According to Jim Schulz, Enterprise Relationship Manager, Travel Tags has worked with several of the world’s largest brands to manufacture eco-friendly gift cards without sacrificing brand integrity and has produced 2.6 billion paper cards as of early 2024.
To create a holistic approach, TTI set out to meet sustainability requirements for all stakeholders throughout the gift card life cycle. Every component of the gift card was reviewed, including plastic and paper substrates, foil and silk screen embellishments, adhesives, and carriers. TTI examined specifications, cost implications and application processes for all aspects of production and packaging, working with each brand to develop a comprehensive and sustainable gift card program.
Digital Gift Cards
Digital gift cards are an increasingly popular option, with the digital gift card market expected to reach $932.11 billion in 2028. Also known as e-gift cards, digital cards offer both convenience and a significantly lower carbon footprint. Without a tangible product attached, businesses and consumers don't have the same concerns regarding material sourcing and recycling.
The Paper Advantage
While the transition from plastic to paper has included some obstacles, such as converting existing creatives to their substrate-friendly counterparts, there are some unexpected advantages as well. In addition to reducing their carbon footprint, businesses are unlocking other unique benefits of paper gift cards.
Enhanced Creative Opportunities
The distinctive manufacturing process at Optimum Card Solutions has allowed them to explore new and innovative gift card designs. According to Director of Sales Rich Olson, custom shapes, no-show embossing, and eye-catching foils are all exciting new creative options made possible and affordable using their proprietary equipment.
Reduced Shipment Costs
Because paper gift cards are on average 30% lighter than their plastic counterparts, businesses may find cost savings in unexpected ways. For example, lighter loads of paper gift cards could translate to decreased shipping costs.
Sustainability Laws
California’s recent legislative move, SB728, aimed to ban plastic gift cards by 2027, reflecting a broader industry trend toward sustainability. The proposed bill would have limited retailers to selling and distributing only non-plastic options, except when the card is “both usable with multiple unaffiliated sellers of goods and that have the expiration date, if any, printed on the card.” Ultimately unsuccessful, the bill met its end in October of 2023, with California’s Governor Newsom declining to sign, declaring his concern that the bill would “disproportionately impact the state's small business community, as digital gift cards may not be a feasible option for many businesses or consumers.”
The proposal and subsequent veto of SB728 highlights the need for not just sustainable, but readily accessible solutions in the gift card industry. Consumers agree, with 45% of survey respondents stating their desire for sustainable gift cards that don’t contribute to plastic waste.
Positioned at the forefront of flexible, modern gift card technology, GiftCard Partners is dedicated to furthering sustainability efforts by exploring innovative solutions.
Examples of Eco-Friendly Initiatives in the Gift Card Industry
The demand for eco-friendly gift cards has created a need as well as an opportunity for innovation. Some businesses are already harnessing the power of sustainability in their marketing.
Starbucks Plantable Seed Gift Cards
Starbucks announced the release of plantable gift cards in the spring of 2022. Making their debut just in time for Earth Day, these flower seed gift cards were offered in select locations. Once the user had depleted the card funds, they simply buried it in a patch of soil and watched it grow.
This unique solution was both biodegradable and interactive. It helped promote sustainability, raise awareness for the environment, and added value to the product for the end user to enjoy. 
Plastno
Plastno's mission to reduce plastic waste extends to their gift cards. Made with eco-friendly materials, the cards go hand-in-hand with the company's compostable trash bag product. The company’s promise: "Tough compostable trash bags may be our calling, but we won’t stop there in our pursuit of saving the planet!"
Considerations for Businesses Going Green
- Assessment of Current Practices: Start by assessing your current gift card practices and impact, including materials used, distribution methods, and any existing sustainability initiatives. This step will help identify areas for improvement and set benchmarks for progress.
- Research Sustainable Alternatives: Research sustainable materials and alternatives for gift cards, such as recycled paper, biodegradable options, or digital gift cards. Consider factors like cost, availability, and environmental impact when exploring these alternatives.
- Set Clear Goals and Objectives: Define specific goals and objectives for transitioning to more sustainable gift card practices. These could include reducing plastic waste, increasing customer satisfaction, or aligning with corporate social responsibility initiatives.
- Engage Stakeholders: Engage key stakeholders within your organization, including management, marketing, and operations teams, to gain buy-in and support for the transition. Ensure everyone understands the benefits of sustainability and their role in implementing changes.
- Collaborate with Suppliers and Partners: Work closely with suppliers, vendors, and partners to explore sustainable options and develop a transition plan. Collaborative efforts can lead to innovative solutions and smoother implementation.
- Pilot Programs and Testimonials: Consider piloting sustainable gift card programs in select locations or with specific customer segments to gather feedback and testimonials. Positive results can help build momentum and support for broader implementation.
- Employee Training and Education: Provide training and education to employees about the importance of sustainability and the specifics of the transition plan. Empower staff to communicate effectively with customers about the changes and address any concerns.
- Monitor and Adjust Strategies: Monitor progress toward sustainability goals and be prepared to adjust strategies as needed. Regularly evaluate the effectiveness of new practices and make improvements based on feedback and data.
- Celebrate Successes and Recognize Achievements: Celebrate milestones and successes along the way to keep morale high and maintain momentum. Recognize individuals and teams who contribute to the transition and share success stories internally and externally.
GiftCard Partners on Sustainability
With a dedication to growth and modern practices, GiftCard Partners is focused on the shifting landscape of the industry.
- As a fully remote team, GiftCard Partners maintains a negligible corporate impact on the environment while also promoting healthy work-life balance for its employees.
- By focusing on software solutions such as the Engage2Reward™ Gift Card Ordering Platform, GiftCard Partners creates no additional waste through the production of physical products.
- By offering digital gift card options, GiftCard Partners makes sustainability easy and accessible to Engage2Reward Platform users, with no impact on program execution or effectiveness.
- Strategic and thoughtful partnerships allow GiftCard Partners to offer a catalog consisting primarily of sustainable physical products, with over 90% of closed-loop gift cards made of paper.
Conclusion
In conclusion, the momentum toward gift card sustainability reflects a fundamental shift in corporate values toward environmental responsibility. As businesses increasingly prioritize eco-friendly practices, the gift card industry has responded with innovative solutions and sustainable alternatives. From biodegradable paper gift cards to digital options, companies have the opportunity to reduce their environmental footprint while enhancing their brand reputation and meeting consumer demand for sustainable products.
While challenges may arise in the transition process, the benefits of embracing gift card sustainability are clear: reduced environmental impact, cost savings, and enhanced customer loyalty. By working collaboratively, businesses can drive positive change within the industry and contribute to a more sustainable future for generations to come. Ready to make the switch to sustainable gift card practices? Contact GiftCard Partners today to explore innovative solutions and start your journey toward sustainability.
Footnotes:
1. Not carried on the Engage2Reward™ Gift Card Ordering Platform
