Keeping Up with Regulatory Trends, Business Opportunities in Sustainable Packaging

The past few years have seen notable growth and interest in sustainable
packaging regulations. Companies including
Mars,
Walmart,
MilliporeSigma
and PepsiCo are leading the
way, with innovative programs to revamp their packaging designs to reduce waste
and increase recyclability. Yet, all companies are faced with the complex world
of government regulations, penalties and guidelines to progress toward safer,
more sustainable packaging — so, where to start?

Why the heightened attention to sustainable packaging?

One major reason for the increased attention to sustainable packaging has been
the growing reliance on
plastic
and its associated accumulation of plastic waste that ends up in the
environment. Recent studies and campaigns have highlighted these issues —
whether it is the massive volumes of plastic in the Pacific and Atlantic Ocean
Gyres,
plastics in rainwater in the Rocky
Mountains,
or the litter of plastic bottles and bags on our
beaches
and in our neighborhoods. A new study found microplastics in the
blood
of almost 80 percent of people tested. The amount of plastic waste we generate
each year has doubled during the last two
decades,
with about 40 percent of that due to
packaging.
It’s projected to more than double again by
2040
if we don’t make needed changes.

Another reason for the focus on packaging has been growing awareness of health
risks from hazardous chemicals present as additives in some packaging —
especially from packaging for foods. The major example most of us are aware of
right now is intentionally added per and polyfluoroalkyl substances
(PFAS) chemicals that can be in everyday packaging such as pizza boxes and
pastry wrappings to prevent grease from leaking through the paperboard. Exposure
to PFAS has been linked to male infertility, miscarriage, increased risk to
certain types of cancer, liver damage and other known health
effects.
Bisphenols (e.g., BPA) and polystyrene are other chemicals in food
packaging that are a concern.

Which federal or state regulations are most important for companies working to develop sustainable packaging?

There has been limited action at the federal level; and it seems unlikely that
is going to change anytime soon. To fill that gap, several states are developing
regulations to address the issues — including groundbreaking new legislation in
the last year that targets material health/removing chemicals of concern,
aggressive recycled content requirements, and implementing extended producer
responsibility
(EPR) programs.

For example, Washington has led the way with a multi-stakeholder effort to
identify alternatives to using PFAS in food
packaging;
and other states are adopting similar legislation. Maine has enacted a
complete ban on
PFAS
chemicals in consumer products by 2030.

Oregon has set recycling
rates
for plastic packaging, starting at 25 percent by 2028 and increasing to 70
percent by 2050. New
Jersey
and Washington have both set requirements that gradually increase minimum
recycled content up to as much as 50 percent for some types of new packaging
products.

Even more notably, in 2021, Maine was the first state to enact an EPR program
into
law
for paper and packaging waste; and Oregon quickly followed. Both states
established ‘producer pays’ mandates for packaging and other materials.
Companies producing or using packaging in the scope of the regulations must
join, and pay fees to, Producer Responsibility Organizations (or
“PROs”). These organizations are used to pay the costs of recycling or
disposal of the wastes by local communities and other infrastructure functions.
While details vary between states, a company’s PRO fees are based on factors
such as weight and volume of covered packaging sold in the state; percent of
recycled content; recyclability of the
material;
and the toxicity of any materials, colorants or other chemical additives.

While PROs have been used in multiple states as a means for giving companies the
responsibility for collecting unused medicines, medical sharps/needles, carpets,
mattresses, and other consumer goods; what is new in the US is applying this
model to waste materials as a market incentive to increase recycling and reduce
unnecessary uses of materials — this is the approach that Europe has been
taking.

Are there tools available to help develop their sustainable packaging programs?

The state regulations are major steps forward. However, what this means for
companies is that they have to keep track of, and meet the requirements of,
different states. Most companies look to meet the most robust requirements to
avoid having to constantly adapt their products and packaging.

There are tools to help meet these requirements — such as sustainable packaging
guidance from
FMI,
recycled content guidance from the Sustainable Packaging
Coalition, and designing for recyclability guidelines from
Walmart
and the Association of Plastic
Recyclers.

However, it is best to first
understand
your company’s baseline in sustainable packaging — this means knowing the
materials used, if the materials are sustainably sourced or recycled content,
how much of the materials are used, if the packages are recyclable, and other
metrics. Then, plans can be developed using the regulations and guidance
available. Most companies use targets to define the progress needed and track
that over time. However, sustainable packaging progress demands more than a few
design changes. Systematic change is needed; so, look for collaborative programs
that align with your company’s plans and targets — such the US Plastics
Pact.

Published Apr 11, 2022 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

Bob Kerr

Co-founder and Principal

Pure Strategies

Bob Kerr works with companies and public agencies to promote environmental and social sustainability — including initiatives on sustainability strategy, sustainable chemical programs, and climate strategy. His projects have included support for brands and retailers in building safer-chemicals programs for consumer products, an OSHA training program on reduction of hazardous chemicals in workplaces and assisting companies in using Chemical Footprint Project tools to guide and assess progress in sustainable chemistry.

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