Commentary: Transparent data reporting is the first step in complying with EU regulations for packaging

As the focus on recycling, sustainable energy and corporate reporting for environmental initiatives has sharpened across the globe, the EU is taking steps to formalize serious concerns in manufacturing with the Packaging and Packaging Waste Regulation (PPWR) to direct the management of waste packaging.

The legislation—set to take effect by 2030—is designed to enhance the safety and sustainability of packaging within the EU. It mandates all packaging must be recyclable, limits the use of per- and polyfluoroalkyl substances (PFAS) in food packaging, curtails over-packaging, encourages the use of recycled materials and enhances recycling and collection processes.

The agreement also establishes goals for reducing packaging by 5 percent by 2030, 10 percent by 2035 and 15 percent by 2040.

In addition, specific types of single-use plastic packaging will be prohibited starting Jan. 1, 2030. This includes packaging for raw fruits and vegetables, food and drink packaging for restaurant use, individual serving packaging for condiments, sauces, cream and sugar, miniature packaging for toiletry items and shrink-wrap film for luggage at airports. Parliament members also have outlawed lightweight plastic bags, except when necessary for hygiene purposes or when used as primary packaging for loose food to mitigate food waste.

Distributors of food and beverages will be required to provide customers with the option to use their own containers and are mandated to achieve a target of 10 percent reusable packaging by 2030.

This has ramifications in the manufacturing sector, such as changes to packaging practices and a possible increase in the costs of certain materials, to name a few, that are likely to cause ripple effects that are hard to predict. Let’s dig into the details and possible methodologies.

Growing problem

As online commerce has increased exponentially over the last decade, so has packaging waste.

Photo courtesy of The Hoffman Agency for Makersite

According to a news release from the European Parliament, discarded packaging volumes have increased from 66 million metric tons (approximately 72.7 million tons) in 2009 to 84 million metric tons (approximately 92.6 million tons) in 2021. Each European consumer generated an average of 188.7 kilograms (416.01 pounds) of material in 2021, a figure expected to increase to 209 kilograms (460.77 pounds) in 2030. 

To address this problem, the proposed set of EU laws has an aggressive timeline. By the end of December 2025, at least 65 percent by weight of all packaging waste must be recycled. By the end of 2030, that figure increase to at least 70 percent by weight.

These changes in packaging call for a massive effort from all companies to undertake, and many struggle to keep up with the ongoing changes and their implications.

As even the smallest change in supply chains or manufacturing can have affect enterprises, data- and artificial intelligence- (AI-) powered software are critical to managing every step of the product life cycle–including issues around recycling, proper disposal and reduction in emissions and/or carbon footprint. The slower an organization adapts to all recent and upcoming changes, the greater the risk of business consequences becomes.  

While fines for violating the new guidelines vary from country to country, they can be in the millions of dollars. As organizations grapple with how to avoid fines and increase compliance internally, understanding each tier of their supply chain poses a particularly complex challenge. 

Supply chains have gotten so labyrinthine that many organizations aren’t even sure how many vendors are in their ecosystems and can only estimate. Global brands can have as many as hundreds of thousands of suppliers, according to Forbes,and as the EU laws around waste management begin to take effect, it will become critical to have insights into the dense supply chains many companies use to conduct operations. In short, if one of a company’s hundreds (or thousands) of vendors, which could be located halfway across the globe, is committing sustainability violations, the manufacturer can face fines or legal action. 

Insights from external tools or software can make decision-making easier for manufacturers, helping companies avoid fines for breaking compliance and improving overall business efficiency. But beyond that, the latest laws around recycling and managing waste are a moral imperative that will help sustain our planet. 

How it’s done 

But how, exactly, can a company improve its sustainability posture in a world with complex supply chains and always-shifting laws?

As a Certified B Corp enterprise, U.K.-based Pukka established approved science-based targets in 2018 and is dedicated to achieving net zero by 2030. With a vision to make minimal and sustainable packaging the standard, Pukka, now owned by Lipton, collaborated with Germany-based Makersite’s platform to reduce the greenhouse gas (GHG) emissions from its packaging. 

As anyone in marketing knows, packaging has a clear correlation to sales, being the first thing people see when they look at a product. How Pukka packages its herbs and teas is extremely important, not just for sales but also for reducing environmental impact and maintaining product quality. With the increasing pressure from consumers on how packaging is used, its effects and end-of-life qualities, Pukka constantly looks for ways to refine how it improves its products’ packaging. 

Pukka continuously was able to model the greenhouse gas (GHG) emissions of different approaches to packaging and, with data integration providing visibility into the GHG emissions across multiple supply chains and material databases simultaneously, decisions were made at more quickly. Where previously, Pukka would work with external consultancies to do this type of analysis, typically waiting two-to-three months for results, the sustainability team at Pukka now can compare various packaging processes instantly to find the best balance between maintaining product quality and reducing GHG emissions, which reduces decision time to two-to-three days.

In May 2022, Pukka unveiled an enhanced packaging design for its supplements. Customers could purchase many of the company's supplements in specially crafted cardboard tubes, accompanied by an inner bag made from plant-based cellulose. The selected materials were derived from sustainably sourced cardboard and wood pulp. The inner bag received certification for industrial composting, and the cardboard tube is recyclable.

This new packaging is 67 percent lighter than the glass jars and outer cartons previously used. The Pukka team was able to determine that this change in packaging resulted in a 58 percent reduction in GHG emissions. 

Centering sustainability 

Society has been moving toward wanting more sustainable practices from businesses for years now. But what would have been a nice market differentiator or slick advertising campaign in the past will now become law in the EU with the new regulations, and businesses of all sizes need to adapt.

With dense supply chains and ever-complicated business motions, it is a challenge to make sure as many aspects of your business as possible are operating with sustainability top of mind. Data-driven sustainability insights from tools like Makersite can help. And sustainable business practices are not only good for the planet but also good for the bottom line.

Laws around sustainability are only going to spread as time goes on. The clock is ticking in Europe, and 2030 is not as far away as it sounds. If your organization is interested in using data-informed decision-making to improve the sustainability of your manufacturing and supply chains, prioritizing transparent data reporting is a critical first step.

Sophie Kieselbach is Makersite’s sustainability team lead and an expert in sustainable development, life cycle assessment and circular economy. She has experience as a consulting manager and senior consultant at various companies like Sphera and Thinkstep and holds a Master's in ecology from Universität Innsbruck.