Packaging and protecting the planet

17 December 2013



Henry Steedman considers the pros and cons of the UK packaging and converting industry’s position in an ever-more environmentally conscious world.


The effect of humans on the state of the planet - not just now but for future generations - has encouraged a noticeable shift in the way packaging is produced and managed. Under new regulations, the ultimate responsibility for ensuring that packaging waste is dealt with effectively has been shared to include the four main areas of the supply chain:

Raw Material Producers - 6%
Converters - 9%
Pack fillers - 37%
Retailers - 48%

Recycling has become an increasingly important factor in deciding and clarifying EU legislation regarding the management of packaging waste. Different recycling targets are applied to different materials, and producers must therefore provide detailed data reports under seven material types:

Paper/card e.g. cartons, labels of certain types, layer board, paper bags
Glass e.g. bottles, jars
Aluminium e.g. cans, aerosols, foil trays
Steel e.g. cans, drums
Plastics e.g. bottles, pallet wrap, bags
Wood e.g. pallets, dunnage

'Other' which includes things like jute and cork.

The recycling and recovery targets applied to the activity percentage (pack filler, retailer, converter, etc.) applied to the tonnage of packaging placed on the market by a company determines what a company's tonnage obligation is. (Source: 360 Environmental)
The UK industry has already been amended to include three new items as packaging - but other EU member states have been requested to follow suit.

There remains some debate about what exactly constitutes packaging under the three specific examples given in the Packaging Directive, which are as follows:

Industrial rolls, tubes and cylinders around which flexible material is wound (e.g. plastics film, aluminium & paper)
Safety matchboxes
Refillable steel cylinders used for various types of gas

The debates have centred on the decisive point at which the industrial rolls, tubes and cylinders fulfil a packaging function, rather than being part of the preceding production process. The directive has sought to clarify this, confirming that these materials officially become packaging once they are passed to the next level in the packaging chain. Likewise the directive has confirmed that all matchboxes and safety matches are now considered packaging. The biggest change is the inclusion of refillable gas cylinders, which before now had not been part of the Packaging Directive.

The bulk of any recycling responsibility falls on the retailer - with pressure coming directly from either the customer or the Government to adhere to Green waste policies - so where does that leave the converting industry, in terms of their own business considerations?

Although many decisions are made within an environmental context, the bottom line remains client-based supply and demand - with cost-effectiveness usually trumping any environmental focus. Therefore the biggest issues facing retailers with regards to waste is more to do with size and weight, which relates to transport efficiency, and energy consumption and expenditure, relating to design and therefore manufacture.

Obviously, the more environmentally efficient the materials are - in terms of recycling potential - the better. Unfortunately, this does not always mean better packaging - in fact some might argue that using raw materials (especially plastics) that are more bio-degradable actually effects the long term shelf life of the products. This in turn can lead to higher levels of product waste - especially food.

So will the harmonisation of green goals have the desired effect sought by EU governments practising an environmental policy?

The problem here is that many governments not only react at different speeds, but also within a totally different cultural consciousness. Green agendas are high on the list of almost every political discussion - from G8 to local council meetings - and yet clear and attainable goals are apparently still out of reach.

The sad fact is that environmental considerations don't always match economic aspirations. This is perhaps why businesses that have a certain threshold (i.e. those above £2 milllion turnover and who place 50 tonnes of packaging on the market in the year) have to officially register their data either through Compliance Schemes or the Environmental Agency in accordance with the Producer Responsibility Obligations (Packaging Waste) Regulations. There are now approximately 6,800 companies registered in England, and failure to register can lead to prosecutions and heavy fines of up to £280,000.

Graphs supplied by Phil Conran at 360 Environmental show the data reported by these registered producers.

The growth in the early years is partly due to real growth, but also partly due to the fact that more and more companies registered each year. However, the number of companies registering has plateaued at around 6.8k per year for the last six years. The trend in the graphs should therefore relate to a broadly similar percentage of the total packaging reported.

In both cases, there is a very definite decline - including the converter activity. The intermediary dips are evidence of economic downturns, but what these graphs suggest is that demand for packaging is affected, in recent years particularly, by the pressures put on companies by the consumers and the Government to reduce their overall carbon footprint.

This trend is also illustrated by the increase in companies included in The Courtauld Commitment - which is a voluntary agreement aimed at improving resource efficiency and reducing waste within the UK grocery sector. Designed and implemented by WRAP (Waste and Resources Action Programme) working in partnership with leading retailers, brand-owners, manufacturers and suppliers who sign up and support the delivery of targets which support the UK governments' policy goal of a 'zero waste economy' and climate change objectives to reduce greenhouse gas emissions.

Now in it's third incarnation, the current agreement is as follows (taken from wrap.org.uk):

Courtauld Commitment 3
The Courtauld Commitment 3 was launched in May 2013 and runs until 2015. It aims to further reduce the weight and carbon impact of household food waste, grocery product and packaging waste, both in the home and the UK grocery sector.

The impact of Courtauld Commitment 3 is predicted to be a cumulative reduction of 1.1 million tonnes of waste, 2.9 million tonnes of CO2(e) and a cost benefit of £1.6 billion to consumers, the food and drink sector, and local authorities. During the three phases of the Courtauld Commitment, a 20% reduction in household food waste could be achieved.

The agreement is funded by Westminster, and the Scottish, Welsh and Northern Ireland governments, and delivered by WRAP. More than 50 leading retailers, brands and manufacturers had signed up by September 2013.

Why?
The costs associated with waste generated from the UK supply chain and households equate to £19.4 billion per year (£12.5 billion household and £6.9 billion supply chain), according to 2012 WRAP research.

Food is a valuable resource and yet UK households throw away 7 million tonnes every year, around 19% by weight of that purchased. More than 4.2 million tonnes of this could have been eaten, including around 13 billion '5 a day' portions.

Optimising packaging has been a great success and will continue, but there are limited opportunities to reduce it further without risking increased product wastage. Now the focus is on improving design to optimise recycled content, improving recyclability and helping to reduce food waste.

Targets
Courtauld Commitment 3 runs for three years from 2013 to 2015 with targets measured against a 2012 baseline.

Household food and drink target: Reduce household food and drink waste by 5% by 2015 from a 2012 baseline. Taking into account external influences, this target represents a reduction of 9% relative to anticipated changes in food and drink sales.

Manufacturing & retail target: Reduce traditional grocery ingredient, product and packaging waste in the grocery supply chain by 3% by 2015, from a 2012 baseline. Taking into account external influences, this target represents a reduction of 8% relative to anticipated production and sales volumes.

Packaging target: Improve packaging design through the supply chain to maximise recycled content as appropriate, improve recyclability and deliver product protection to reduce food waste, while ensuring there is no increase in the carbon impact of packaging by 2015, from a 2012 baseline. Taking into account external influences, this target represents a carbon reduction of 3% relative to anticipated sales volumes.

What can the Commitment do?
Courtauld helps businesses, consumers and local authorities to save money, improve performance and reduce their carbon footprint. It specifically helps businesses to:

save costs, cut waste and reduce CO2e emissions;
deliver against consumer demand for less waste;
improve industry practice and drive sector innovation;
improve resource efficiency of products and their packaging;
create a support network and vehicle for change;
enhance corporate environmental performance; and
improve competitiveness and resilience of businesses and their suppliers.

It is clear that the intention is there to make such an important industry as packaging act as a conscientious and purposeful partner in the fight to halt the deterioration of our planet.

Although recycling is not the only answer - especially when dealing with all the facets of global consumerism - it is important for every member of the packaging supply chain, including the converters, to do their part to help instigate and maintain a process by which environmental needs are considered and acted upon.

Economics and ecology aren't always the keenest bedfellows - but if practical steps can be taken to enhance the sustainability of our planet, and realistic environmental goals can be set and then achieved - then surely - to paraphrase the late, great Lou Reed - we can happily reap what we sow.



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