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Female shopper checking food labelling
Female shopper checking food labelling in supermarket
More and more purchasing choices are influenced by ethical, political, and green concerns. Research shows that 55 percent of consumers are willing to pay more for eco-friendly brands and 84 percent of customers say that poor environmental practices will alienate them from a company.
However, brands can fail to meet consumer rights and expectations in several ways.
Deceptive labelling is an ongoing issue, which involves making false or misleading claims about a product's characteristics, benefits, or ingredients. This can lead consumers to have unrealistic expectations about the product's performance or quality.
In some cases, consumers may prioritise purchasing products with minimal packaging or eco-friendly packaging materials. However, limited availability or higher costs of such options can restrict consumers' ability to exercise their preferences for more sustainable packaging.
Other consumer concerns that can arise occur when brands fail to accurately represent cultural traditions or symbols risk misinforming consumers and perpetuating cultural stereotypes or misconceptions.
For example, Pepsi Cola lost its dominant market share to Coke in South East Asia when Pepsi changed the colour of its vending machines and coolers from deep “Regal” blue to light “Ice” blue as light blue is associated with death and mourning in their region.
Finally, certain types of packaging materials, like plastics containing harmful chemicals, can leach toxins into the environment, posing risks to human health and ecosystems. When consumers are not properly informed about these risks, their rights to safety and health are compromised.
How to address the negative environmental impact
Packaging companies should start by trying to minimise the materials used through innovative design techniques, more lightweight materials, and efficient packaging methods. This can include adopting strategies like source reduction, where unnecessary packaging is eliminated, or right-sizing packaging to better fit the product.
Promote the use of environmentally friendly packaging materials such as recycled content, biodegradable or compostable materials, and renewable resources like bamboo or plant-based plastics. This helps reduce the reliance on virgin materials and minimises the environmental footprint of your packaging.
Investing in improved recycling infrastructure and facilities is key to ensure that packaging materials can be properly recycled and recovered. This includes expanding curbside recycling programmes, implementing extended producer responsibility (EPR) policies, and educating consumers about proper recycling practices.
Raise awareness among consumers about the changes you have made to your packaging to reduce its negative environmental impact. Provide information about the eco-friendly packaging options you’ve introduced across your website and social media platforms. You can even include the changes you’ve made on the packaging itself.
How to address the social impact
One of the social issues concerning packaging is that inequities in access to goods and services can be perpetuated through packaging choices. For example, products with excessive or non-recyclable packaging may be more expensive, limiting access for lower-income consumers.
Companies should try to evaluate the cost implications of sustainable packaging options and seek ways to minimise expenses without compromising sustainability goals. This might involve exploring alternative materials, optimising packaging designs for cost-effectiveness, and leveraging economies of scale through bulk purchasing or collaboration with other businesses.
Another concern is that the production of packaging materials often involves labour-intensive processes that may be subject to poor working conditions, low wages, or exploitation of workers' rights.
Businesses should develop a comprehensive supplier code of conduct that outlines the company's expectations regarding labour practices, including fair wages, safe working conditions, non-discrimination, and freedom of association. Require all your suppliers to adhere to these standards and conduct regular audits to ensure compliance.
It goes without saying that workers should be paid fair wages that meet or exceed legal minimums and industry standards. Responsible organisations should provide benefits like healthcare, paid leave, and retirement savings plans to support workers' well-being and financial security.
Addressing the governance aspect
The "Governance" aspect of ESG principles brings a critical layer of accountability, transparency, and responsible decision-making to the world of packaging. Strong corporate governance ensures that companies have clear decision-making processes and mechanisms for accountability.
Addressing this involves implementing policies, procedures, and standards to ensure that packaging materials are responsibly sourced, designed, used, and disposed of.
Businesses need to stay informed about local, national, and international regulations regarding packaging materials, labelling, recycling, and disposal. Ensuring compliance with these regulations is essential to avoid fines and penalties.
Collaborating with packaging suppliers is vital to improving your sustainability practices and transparency throughout the supply chain. Engage with industry associations, research institutions, and other stakeholders to share knowledge, collaborate on sustainability initiatives, and advocate for policies that support responsible packaging practices.
You’ll also need to maintain transparency about your packaging practices and performance through regular reporting and communication with relevant stakeholders. Make sure you regularly disclose information about packaging materials, recycling rates, and progress toward sustainability goals.
Measuring and reporting your ESG impact in packaging
ESG efforts are measured, tracked, and shared, in several ways, which contributes to a more informed and engaged audience that recognises the value of sustainable and responsible packaging practices.
To effectively track and manage progress, companies must establish meaningful KPIs that measure the environmental, social, and governance aspects of their packaging initiatives. For example, including metrics related to waste reduction, carbon emissions, supply chain ethics, and stakeholder engagement.
Various organisations and initiatives offer sustainability reporting frameworks that guide companies in reporting their ESG performance. Prominent frameworks include the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). These frameworks help standardise reporting, ensuring that companies provide transparent and comparable information to stakeholders..
Establish a process for monitoring, reviewing, and continuously improving ESG performance in packaging. Set up regular performance reviews, conduct audits and assessments, track progress against targets, and identify opportunities for innovation and optimisation, where you can.
Businesses should also demonstrate transparency and accountability in ESG reporting by disclosing both successes and challenges, as well as the methodologies and assumptions underlying performance metrics.