More purchasing choices happen to be influenced by way of ethical, political, and environmental concerns. Research goes on to demonstrate that 55% of consumers happen to be willing to pay extra for eco-friendly brands, and 84% of customers opine that poor environmental practices are going to make them stay away from a company.
Brands can go on to fail to meet consumer rights as well as expectations in more ways than one.
Deceptive labeling happens to be an ongoing issue that goes on to involve giving out false or misleading claims pertaining to a product’s traits, advantages, or even ingredients. This can go on to lead consumers to have unrealistic expectations of a product’s performance and even quality.
In certain cases, consumers may go on to prioritize purchasing products by way of minimal packaging or even eco-friendly packaging materials. But limited availability or even higher costs of such choices can go on to restrict the ability of consumers to go ahead and exercise their preferences when it comes to more sustainable packaging.
Other consumer challenges that can crop up occur when brands happen to fail to precisely represent cultural traditions or even symbols risk thereby misinforming consumers as well as perpetuating cultural stereotypes or even misconceptions.
Pepsi Cola, for example lost its exemplary market share to Coke in South East Asia when it changed the color of its vending machines as well as coolers from being deep regal blue to light Ice blue, as the light blue shade happens to be associated with death as well as mourning in their region.
Finally, there happen to be certain types of packaging materials, such as plastic, that contain harmful chemicals, which can as well leach toxins within the environment, thereby posing risks to human health along with the ecosystems. When consumers do not properly get informed about risks such as these, their rights to safety and health are compromised.
How do we look into the negative environmental impact?
It is well to be noted that packaging companies should begin by trying to lessen the materials used by way of innovative design techniques, more lightweight materials, and efficient packaging methodologies. This can go on to include embracing strategies such as source reduction, in which unnecessary packaging gets eliminated, or right-sizing packaging is looked into to better fit the product.
One should also look into promoting the usage of environmentally friendly packaging materials like recycled content, biodegradable, or even compostable materials, as well as renewable resources such as bamboo or plant-based plastics. This enables us to reduce our dependence on virgin materials and, at the same time, minimizes the environmental impact that the packaging has.
Investing in better recycling infrastructure as well as facilities happens to be the key so as to ensure that packaging materials can go on to properly get recycled as well as recovered. This happens to include expanding curbside recycling programs, executing extended producer responsibility- EPR policies, as well as educating consumers in terms of proper recycling practices.
Raising awareness among consumers about the changes one has made to packaging so as to reduce its negative environmental impact. Offer information on the eco-friendly packaging choices one has introduced all across the website as well as on social media platforms. One can even go on to include changes made to the packaging itself.
How to take care of the social impact
It is worth noting that one of the social issues that concerns packaging is that inequities when it comes to access to goods and services can get perpetuated by way of packaging choices. For instance, products with excessive or non-recyclable packaging may go on to be more expensive, thereby limiting access for lower-income consumers.
Companies must try to assess the cost implications when it comes to sustainable packaging options and also look out for ways so as to minimize expenses sans compromising sustainability objectives. This might as well involve looking out for alternative materials, making the utmost use of packaging designs to attain cost-effectiveness, and also leveraging economies of scale by way of bulk purchasing or even partnerships with other businesses.
Another concern happens to be that production when it comes to packaging materials often goes on to involve labor-intensive processes that may as well be subject to working conditions that are poor, low wages, or even exploitation of the rights of workers.
Apparently, businesses should go on to create a comprehensive supplier code of conduct that goes on to outline the company’s anticipation with regards to labor practices such as safe working conditions, fair wages, non-discrimination, as well as freedom of association. One must make sure that all the suppliers adhere to such standards and keep conducting audits to ensure compliance.
The fact is that It goes without saying that workers must be paid fair wages that meet or, for that matter, exceed legal minimums as well as industry standards. Organizations that happen to be responsible should go ahead and offer benefits such as healthcare, paid leave, as well as retirement savings plans in order to support workers’ well-being as well as financial security.
Looking into the governance aspect
ESG principles governance aspect goes on to bring-in a major accountability, transparency, as well as responsible decision-making to the packaging world. Robust corporate governance makes sure that companies happen to have clear decision-making procedures as well as processes and mechanisms when it comes to accountability.
So as to address these initiatives, it goes on to involve executing policies, procedures, as well as standards so as to make sure that packaging materials get sourced responsibly, are well designed, used, and, of course, disposed of.
Businesses are required to stay informed when it comes to local, national, as well as international regulations with regards to packaging materials, recycling, labeling, as well as disposal. Making sure of compliance with such types of regulations happens to be essential so as to avoid fines as well as penalties.
Interestingly, collaboration when it comes to packaging suppliers is indeed essential so as to enhance sustainability practices and transparency all across the supply chain. Engaging with sector associations, research institutions, as well as other stakeholders in order to share knowledge, partner on sustainability initiatives, and at the same time advocate for policies that go on to support responsible packaging practices is a must.
The fact is that one will also be required to maintain transparency pertaining to packaging practices as well as performance by way of regular reporting as well as communication through relevant stakeholders. Ensuring regular disclosure of information on packaging materials, recycling rates, and progress toward sustainability goals are also some of the key factors that need to be taken into account.
Evaluating and reporting the ESG impact in terms of packaging
ESG efforts happen to be measured, tracked, as well as shared in numerous ways, that go on to contribute to a more informed and engaged audience that goes on to recognize the imperative of sustainable as well as responsible packaging practices.
So as to effectively track as well as manage progress, companies ought to establish meaningful KPIs that go on to measure environmental, social, and governance elements of their packaging initiatives. For instance, taking into account the metrics pertaining to carbon emissions, reduction in waste, supply chain ethics, along with stakeholder engagement should be looked into.
It is well to be noted that various organizations as well as initiatives go on to offer sustainability reporting frameworks that help guide companies when it comes to reporting their performance in ESG. Some of the prominent frameworks are the Global Reporting Initiative- GRI as well as the Sustainability Accounting Standards Board- SASB. These frameworks help standardize reporting, thereby ensuring companies go on to offer transparent as well as comparable information to stakeholders.
Establishing a process when it comes to monitoring, reviewing, as well as continuously enhancing ESG performance within packaging must be paid heed to. Setting up performance reviews, conducting audits as well as evaluations, tracking progress against targets, and identifying opportunities for innovation along with optimization, wherever possible, needs to be done.
Notably, the businesses should also go on to demonstrate transparency and ownership in ESG reporting by way of disclosing successes as well as challenges and also improvising the methodologies along with assumptions underlying the performance metrics.
