The war against plastic, as referred to by UN Environment Programme Executive Director Inger Andersen, is undeniably one of the most significant challenges confronting the world today. Plastic, because of its slow degradation process, leads to both land and ocean pollution over the course of hundreds of years. Furthermore, throughout its life cycle, plastic production generates substantial quantities of greenhouse gases.
Consumer Products & Retail- CPR companies in the UK are facing an urgent need to take action. This urgency has been amplified by two factors: the existing UK Plastic Packaging Tax and the newly implemented extended producer responsibility- EPR regulations, which came into effect in February 2023. EPR necessitates that producers assume accountability for the environmental consequences associated with the packaging they provide. This is achieved by imposing financial accountability on producers to cover the expenses incurred in gathering and disposing of the packaging once it reaches the waste stage. Both pieces of legislation aim to provide companies with financial incentives to decrease the quantity of plastic and packaging they distribute and also enhance the recyclability of their products.
It is expected that the costs for businesses will significantly increase over time due to multiple factors. These factors include the rising price per tonne of materials, the increasing requirements to employ more recycled materials, and the higher thresholds for recycling CPRÂ products.
UK companies that happen to be subject to the EPR legislation are required to initially report on their packaging. Starting in 2025, these companies will also be subject to fees. Now is an opportune moment to reassess the plans for reducing plastic usage.Â
Quick wins
CPR companies have been actively exploring strategies to minimise the environmental impact of plastic packaging for several years. These efforts primarily focus on 4 key approaches: reduce, reuse, recycle, as well as compost.
Reduction happens to be frequently the most straightforward option among these and may appear in different ways. Plastic is commonly used to wrap goods during shipping in order to minimise the potential for damage. Companies are increasingly recognising the benefits of advanced logistics and transportation solutions and have come to realise that there is no longer a necessity to use plastic shrink wrap for packaging boxes. This realisation allows them to successfully decrease their plastic consumption while also saving money. There are other solutions that can be quite simple, such as decreasing the size of a bottle or moving from plastic packaging to paper.
If it is not possible for one to entirely eliminate or minimise the use of plastic, and hence another viable option is to transition to a form of plastic that can be recycled. It is worth noting that around 86% of the world’s plastic is derived from 6 specific polymers, and the methods for recycling these polymers are constantly improving. Polyethylene terephthalate- PET, which is often used for soft drink bottles, can be easily recycled when there is an adequate system in place for gathering and sorting. As the infrastructure continues to expand, the recyclability of PET will also increase.
4 Issues To Consider
Rethink economics
There are numerous external factors that influence decisions regarding packaging. Legislation is an important factor to consider. For instance, when factoring in the potential penalties for non-compliance with EPR, it may prompt one to expedite the implementation of sustainable packaging options in the internal project economics calculations. Another aspect to consider is customer actions. One example of this is a prominent retail chain that has issued a warning to suppliers, stating that their products will be removed from the shelves if they fail to comply with specific sustainability criteria by the year 2026. Next, we have the end consumers. Members of Generation Z are showing a strong interest in sustainability. As they grow older and become the main purchasers of packaged products, their impact will increase significantly. At this point, the primary concern for UK consumers has shifted from sustainability to affordability due to the cost-of-living crisis.
Consider the broader perspective
Reducing plastic cannot be accomplished through one isolated part of the company, as it has repercussions. Reducing the size of your packaging is beneficial for the environment, but it might not align with the preferences of the brand team. This is because it could result in the product having less visibility on supermarket shelves. Losing market share becomes a risk when competitors differentiate themselves from the business. However, if all the competitors offer the same products or services, it might not be a problem.
Team up with the value chain
As a way to decrease the usage of plastics, it is necessary to adopt a different approach in collaborating with value chain. In order to effectively address their scope 3 emissions, it is crucial for all organisations to work together with their supply chain. Similarly, CPR companies must have a clear understanding of the value chain so as to identify significant possibilities for reducing plastic usage.
Ensure that the sums add up accurately
Up until now, the reduction of plastics has proven to be advantageous in both economic and sustainability aspects. However, moving forward, the next stage will necessitate the development of more advanced business cases. One of the reasons why CPR companies are not making faster progress in reducing plastic usage is because they aim to find cost-effective solutions that benefit both their clients and consumers. For example, the cost of biodegradable packaging can be 5Â to 10Â times higher than that of virgin fossil fuel-based plastics.
However, companies are unable to transfer these increased expenses to consumers. Currently, price often acts as an incentive for consumers, even when they are concerned about sustainability. According to a survey conducted by EY, only 31% of the participants expressed their willingness to pay a higher price for sustainably produced goods. However, a significant 50% of the respondents stated that they are open to investing in sustainable products and services if they believe it will result in cost savings for them.
To summarise, the CPR sector is being compelled by stakeholder pressure to tackle the issue of plastic waste. This pressure is expected to increase further as legislation is implemented and as younger, environmentally conscious consumers begin their own households. CPR companies should expedite their efforts to minimise plastic waste so as to prevent potential legal repercussions and negative reactions from consumers.
