News
Navigating packaging reform N
ew legislation and internal goals are driving packaging reform. James Skidmore, Director of Consulting at Reconomy brand Valpak, explains how the demand for data leads to effective design changes. Sustainability is a journey. From the carbon impact created when materials are sourced, to transport logistics and end of life disposal, every stage of the value chain is affected when packaging is placed on the market. As businesses look to address carbon impact, meet the demands of new legislation and reduce costs, packaging design is coming under greater scrutiny than ever before. At a basic level, new regulations, such as the Plastic Packaging Tax and Extended Producer Responsibility (EPR) for Packaging, call for more granular data. Reconomy brand Valpak has already seen the time needed for reporting in the UK rise by 368 per cent, and the granularity of data required is only set to increase with the introduction of eco- modulation, a mechanism to charge higher EPR fees for packaging which is hard to recycle. The aim of EPR is to increase recyclability of packaging. While sourcing the data is challenging, the information potential is huge; this new level of reporting brings a unique opportunity to identify positive changes that reduce costs while benefiting the environment.
For packaging producers, cost will be a major driver. It is estimated that the total cost of EPR to UK business will rise from £350 million per year to over £1.7 billion. We can see the increase at small scale with individual products. For example, Valpak data shows a four-pint bottle of own-brand milk rising from 0.28 pence per sale to 1.1 pence; or a 230- gram steak shifting from 0.3 pence to 1.21 pence. Valpak manages the most comprehensive database on packaging weights, currently holding over 44 million SKUs. This allows us to pre-populate our Product Data Hub with packaging weights. As suppliers add their data, these weights, coupled with checks similar to those used in online banking, flag up potential errors. So far so good, but how can this data be applied to make critical cost savings? The first step is to decide on priorities; is the goal to include more recycled content and reduce liability under Plastic Packaging Tax? Or to cut out non-recyclable materials in preparation for eco-modulation? Many of Valpak’s Packaging Analysis customers are also aiming for internal goals such as carbon impact or compliance with Modern Day Slavery reporting. In each case, accurate data is essential.
One way to identify quick wins for change is to benchmark your performance against the industry
average and “best in class”. To make the most of our EPIC packaging weight database, Valpak regularly works with brands to benchmark products and the results can be impressive. For example, using a traffic light system, we can show that switching to the “best in class” for a set of headphones can reduce EPR costs by 57.89 per cent. Similarly, the industry could save 90.15 per cent by changing the packaging of trousers sold in grocery stores to match the “best in class”. Packaging designers often also wish to test changes to see how they perform. As well as applying life cycle assessment or Environmental Product Declarations (EPDs) to products, Valpak’s Consulting team recently launched a “What If…”, which tests out theoretical scenarios to give “before and after” comparisons for metrics like EPR costs, waste tonnages, deforestation or net zero. Often, light-weighting products, switching plastic
polymers, or removing packaging altogether can have a significant impact.
Making your packaging more sustainable is pointless if it doesn’t do the job it was designed for. Since employing a Packaging Analyst, we have found that the two things complement each other. It is exhilarating to see how simple tweaks to carton sizes or materials transform into new products or systems that will reduce their environmental impact, and save businesses money too. With the advent of packaging reforms in the UK and around the globe, the demand for data will increase. However, it is important to remember the journey of improvement, from reporting to sustainable design. Those businesses which plan ahead will benefit financially, in addition to meeting drivers such as safeguarding reputation, minimising carbon emissions and cutting waste generation.
14
March 2024
www.convertermag.com
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