Packaging comes in all sizes and materials and is used in every kind of industry. This makes sustainable packaging more complex than meets the eye as each material and application may have its own sustainable sourcing and recycling requirements. Data and analytics can help address these challenges by giving fuller visibility into their supply and value chains that, in turn, enables businesses to see where and how they can make them more sustainable.
Embedding sustainability in packaging can be challenging and complicated for businesses without the right insights into their own operations. For example, while paper packaging is viewed as more “eco-friendly” and is already being used as an alternative to plastic sheets and bags, businesses should be conscious of using recycled paper to avoid compounding waste and further contributing to depleting virgin or raw materials.
On the other hand, recycling is not always straightforward due to chemicals and additives and multimaterial plastics. In addition, some industries like food and beverage and pharmaceuticals have specifications for safe and appropriate packaging that current sustainable options may not fulfill. In some cases, new packaging design and composition will be necessary.
Balancing business needs with regulation compliance
Several countries have taken steps to move to a circular economy and increase the accountability of businesses for the environmental, social, and economic costs of conducting business. Many governments have adopted extended producer responsibility (EPR) approaches to sustainability, ensuring that businesses that introduce packaging into their economies take on the costs throughout the life cycle.
The European Union enacted the EU Packaging and Packaging Waste Regulation and individual European countries have passed corresponding laws and ordinances. Here is a list of some of the relevant legislations and initiatives enforced today:
-
Germany’s VerpackG or Packaging Act
-
France’s Responsabilité Élargie du Producteur (REP)
-
Italy’s Packaging Law, which also requires eco-labeling
-
Netherlands’ Packaging Act
-
Portugal’s Packaging and Packaging Waste Law
-
Austria’s Packaging Law, which also requires a packaging representative
-
Australia’s Packaging Covenant
-
Canada’s Strategy for Sustainable Packaging
Other countries also took steps beginning with plastic bans, such as China, India, and African countries. In the US, some states have introduced bills that will regulate single-use plastic packaging and increase recycling rates.
EPR laws affect the whole value chain, meaning they apply not only to manufacturers but also to e-commerce. For example, Amazon has notably started accounting for implications of these laws on sellers on their platforms in countries like France.
|
Learn the fundamentals of the CSRD and how your business can use data and analytics to comply with the regulation. |
|
Download our guide on the crucial metrics and KPIs that your business can use to assess and improve its sustainability efforts. |
Assessing product life cycle and avoiding greenwashing
“Life cycle” is a running concept across these regulations, and life cycle assessment (LCA) will be integral in successful compliance. Tracking environmental costs from sourcing and production all the way to retrieval and recycling is another process businesses will need to prepare for, with implications on supply chain and logistics, too.
Aside from compliance, companies also face the risk of greenwashing. With the variety of verbiage around sustainability, adhering to best practices and standards regarding environmental claims is the way to go. This will entail the establishment of checks and balances and additional data collection, but can consequently boost brand reputation, investor trust, and customer loyalty.
Consumers also play a role in the success of sustainability initiatives. Although more and more consumers prefer sustainable products, they may not necessarily be prepared to pay a premium for sustainable packaging. They may also be unfamiliar with eco-labels and prevent efficient sorting and preparation for recycling. Businesses will benefit from making consumers their partners in sustainability goals by educating them on sustainable packaging benefits and providing multiple packaging and recycling options.
|
|
Learn how your business can better assess the social, environmental, and economic impact of its supply chain. |
|
Read more |
Succeeding in sustainable packaging through data and analytics
Through data and analytics, businesses can set a clear road map for success and meet sustainability goals for packaging, from design and sourcing to recovery and recycling. Data analytics can help companies to:
-
Reduce packaging used. This encompasses finding optimal sizes, designs, and materials to keep packaging at a minimum as well as identifying improvements in the production process, supply chain, and logistics.
-
Increase recycled content. Companies can use analytics to identify more appropriate recycled materials that are available in areas where the business operates. With analytics-enabled reporting, businesses can also track multiple products and their corresponding recycled content.
-
Improve recyclability. Analytics helps businesses understand recyclability with more granularity, enabling them to design packaging for easier disassembly and sorting and find recycling-compatible materials. In turn, they can minimize harmful chemicals in packaging and labels as well as use the appropriate recycling eco-labels wherever they operate.
-
Measure and monitor compliance and performance. Companies can keep track of regulations implemented or proposed and what the specific requirements are. In turn, they can monitor performance against recovery and recycling goals.
-
Avoid greenwashing. A data-driven strategy and analytics-enabled approach can help businesses identify and verify environmental claims used in product labels and corporate communications.
Analytics can also provide real-time and automated insights into other Sustainability Development Goals to ensure all aspects of packaging are accounted for. For example, greenhouse gas emissions from direct operations or from the transport of packaging can be tracked to find further reductions. Water footprint from processing of paper packaging and waste recycling can also be monitored to determine potential reductions.
A data-driven strategy helps businesses innovate on how they tackle packaging-related goals and make them resilient to changing regulations across the globe. With the right data analytics partner, businesses can rise above the wave of packaging waste and confidently navigate their way toward sustainable packaging.
Lingaro Group provides end-to-end data intelligence that enables enterprises to achieve sustainability and improve the triple bottom line. Lingaro’s supply chain analytics practice works with global brands and enterprises in strategically utilizing data and modern technologies to realize sustainability goals and comply with regulations in ESG reporting. Backed by industry-recognized expertise and powered by AI, Lingaro helps organizations optimize business processes, identify opportunities for improving operations, and mitigate environmental, economic, and social risks in their supply and value chains.
