A supply chain assurance expert is imploring global fast-moving consumer goods brands to put claim substantiation at the top of their agenda, after the EU introduced new rules on packaging and packaging waste.
According to global assurance provider, LRQA, the new rules – which have been introduced to tackle increasing quantities of packaging waste – will lead to further scrutiny on global brands to have better practices in place.
In 2022, many global brands made negative headlines after failing to deliver on sustainability pledges. According to The Ellen MacArthur Foundation and the United Nations Environment Programme, 64% of food signatories increased their virgin plastic packaging, resulting in a 4% increase for the sector.
Amendments to the EU Packaging Directive include additional waste prevention and reuse obligations for EU countries, raising recycling targets on packaging waste, plus mandatory Extended Producer Responsibility (EPR) schemes.
Kimberly Coffin, Supply Chain Assurance Specialist at LRQA says, “These changes mean it’s even more important that organisations can demonstrate how they have delivered on promises with independently verified data. Reputations are at stake, so it’s in businesses’ best interests to put verification at the top of their agenda. We’ve seen from last year that words are not enough, with negative headlines resulting in a damaging shift in consumer attitudes. It has therefore never been more crucial that claims are backed up with data and appropriate solutions are identified to plug the gaps.”
According to Unilever, a lack of flexible packaging and appropriate infrastructure are said to be the main barriers to meeting plastic reduction targets. Knowledge, resourcing, complexity and cost were also highlighted as barriers to achieving environmental targets, in a survey of sustainability leaders[1].
“In the current economic climate, facing these barriers to meet plastic reduction relies heavily on identification of alternative materials and/or suppliers,” suggests Kimberly. “Regardless of the action taken, it’s crucial to understand the risk impact of change, and this relies heavily on sound supply chain awareness. Through third party audits and assessment, businesses can identify and address gaps in process and policy, to prove to consumers and investors that products and services are environmentally and ethically sound.”
“Despite good intentions, there appears to be a gap between what brands are committing to and what is being achieved, suggesting that existing self-verification processes do not get far enough. Consumer trust drives business success, however, negative media coverage caused by uncovering unsustainable practices or human rights violations could be detrimental to brand reputation. Because of this, it’s in businesses’ best interests to put verification at the top of their agenda and third party assessment must be prioritised to build trust.”
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Editor: Kiran Grewal kgrewal@kennedys.co.uk
