This text is sponsored by Pure Methods. 

Sustainable packaging is at an inflection level, and information is shortly changing into essential to help progress. Buyer and investor strain is constructing and corporations that haven’t measured their sustainable packaging standing might want to begin. Plus, even for companies that already observe sustainable packaging metrics, the expectations are increased, and extra is at stake.

The method of accumulating and reviewing packaging information will be difficult, if not painful. Many corporations don’t have this information organized ─ if they’ve the information in any respect. However the time has come for corporations to get their homes so as. Prospects and buyers could not but require this information, however they are going to quickly, together with regulators.

Packaging has change into a spotlight of recent and rising laws, reminiscent of Prolonged Producer Duty (EPR) legal guidelines which shift the prices of managing used packaging from municipalities to the “producers” of the packaging. Within the U.S., 4 states (California, Colorado, Maine, and Oregon) have handed such payments that mandate corporations to pay charges for the kind of packaging used, starting as quickly as 2025. Plus, states are establishing recycled content material necessities and “supplies of concern” bans. Firms must know extra concerning the packaging they use and to organize for reporting on the information on their packaging.

For instance, corporations might want to know the way a lot of every materials is used of their product packaging, in addition to how a lot packaging is appropriate with recycling methods. They might want to be taught all the deliberately used supplies within the bundle. Most corporations don’t know this. So, how can this data be collected, organized and evaluated successfully?

Perceive what to measure

It will be important first to establish what must be tracked. Contemplate regulatory necessities and likewise buyer, investor, non-profit, and inside expectations for steering. Instruments such because the FMI Sustainable Packaging Evaluation Information additionally record a number of generally used metrics to contemplate, reminiscent of the load and p.c of every materials and traits of the supplies, reminiscent of the proportion of verified responsibly-sourced fiber.

To adjust to EPR legal guidelines, companies might be required to supply information about their packaging and to pay relevant charges. The necessary information could embody the supplies used and their weights, quantities of recycled content material, forms of packaging and data on whether or not the bundle is reusable/recyclable/compostable (per the definitions utilized by this system). Firms will start paying charges primarily based on this information as quickly as 2025 in key states within the U.S., reminiscent of Oregon and Colorado.

Some corporations have expertise with EPR legal guidelines from Europe and even within the U.S. with beverage deposit packages and associated legal guidelines. For instance, the state of California’s beverage container legislation requires information on virgin and recycled plastic content material.

Plastics-focused metrics and standards are additionally included in voluntary efforts, such because the Ellen MacArthur Basis’s World Dedication on plastics and the U.S. Plastics Pact’s Problematic and Pointless Supplies Record. CDP’s new disclosure can be anticipated to incorporate reporting on plastic utilization by weight and a portion from post-consumer, post-industrial and virgin plastics.

Broader metrics are anticipated from buyers, such because the requirements outlined by the Sustainability Accounting Requirements Board. The requirements for family, private care and processed meals merchandise embody quantitative metrics for the full weight of packaging, the proportion produced from recycled and/or renewable supplies, and the proportion that’s recyclable, reusable and/or compostable.

Transfer to progress and function

The toughest a part of monitoring sustainable packaging monitoring is accumulating and organizing packaging information. It’s not unusual that companies wouldn’t have this information, and they should attain out to suppliers for it. In consequence, you will need to start this effort quickly to be ready for forthcoming information necessities.

The FMI information consists of finest practices on the best way to survey suppliers and supplies a regular set of questions. There’s worth in not reinventing the wheel with provider surveys. It saves time in creating provider assessments and, on the opposite finish, it helps suppliers to obtain the identical questions throughout their clients versus one-off questions from many purchasers. So, corporations ought to look to utilizing present instruments for information assortment, such because the FMI evaluation questions.

Additionally, corporations ought to think about how this course of might be repeated in future years or for added functions, reminiscent of regulatory necessities, voluntary reporting and responding to buyer expectations. It could be finest to hunt out methods to automate the information requests and updates and to create a sturdy documentation course of to help future packaging audits.

Does all this work repay? Sure. Apart from complying with legal guidelines and assembly buyer requests, when corporations set up their sustainable packaging baseline, the outcomes are sometimes eye-opening. Low-hanging fruit alternatives are sometimes revealed, permitting for fast progress. Accumulating this information additionally unlocks alternatives, reminiscent of utilizing the How2Recycle label and may result in cross-cutting modifications, reminiscent of the place one design adjustment improves a number of packages. Additional, the information will help to tell an motion plan for added progress.

In my expertise, when companies take this on for the primary time, they see not solely the chance for progress, but in addition a path for a bigger function. It is because the method normally uncovers further rationale for upgrading inside information administration, innovation and aggressive benefits — all led by sustainability. Broader inside engagement in sustainability may also spur curiosity in exterior collaboration and engagement. For instance, corporations could select to align with peer commitments, such because the U.S. Plastic Pact, or to help cross-industry tasks, together with The Recycling Partnership, or to advocate international coverage change by supporting the World Treaty on Plastic Air pollution.

With regulatory calls for looming, and extra stakeholder strain mounting, the enterprise case is robust for constructing an efficient, sustainable packaging monitoring program. It’s best to not wait and to make use of this chance to construct a sturdy course of that may assist your corporation transfer from viewing information assortment as a ache to 1 that permits progress and conjures up function.