A producer of insulated transport packaging made from wool has been honoured in a competition run by a UK national newspaper to find business ideas with potential to help to tackle climate change.

The Wool Packaging Company was placed in the top three of The Observer Ethical Awards for its part in reducing commercial packaging waste.

Woolcool uses bi-product fleece of 22 million shearable sheep being reared in the UK largely for meat, and is manufactured through minimal, low energy processing.

The company says its protective packaging is biodegradable, compostable, recyclable or re-usable and an alternative to made-made oil based products.

It estimates that in 2009 Woolcool saved 65 tonnes of polystyrene or polyethylene from the perishable food delivery sector, much of which was destined for landfill.

In addition, three articulated lorries deliver 10,000 units of Woolcool insulated packaging in comparison to 10 lorries to deliver the equivalent polystyrene packaging.

Entries were judged by business leaders including Ecover MD Michael Bremans and media personalities