Lotte Mastwijk
Head of Sustainability

Business case for

sustainable packaging

Recyclable and reusable packaging, produced using renewable energy by employees who receive a living wage: music to many people’s ears. At least… as long as it doesn’t cost more. Good news: it doesn’t! There is a valid business case for sustainable packaging. In the long run, it is even the lowest cost solution. A bold statement, I know, so I have outlined 8 arguments that prove my point. Most likely not all the arguments will appeal to you, but I am sure at least one or two will.

8 arguments

1

Ensure regulatory compliance and risk mitigation

Governments and regulatory bodies worldwide are imposing stricter regulations and guidelines regarding packaging waste, and environmental and social impact, such as the Packaging and Packaging Waste Regulation (PPWR), and the Corporate Sustainability Due Diligence Directive (CSDDD). By proactively adopting sustainable packaging practices, businesses can ensure compliance with existing and future regulations, reducing the risk of fines, penalties, and reputational damage. Moreover, by staying ahead of regulatory trends, you can position yourself as industry leader and avoid potential disruption caused by sudden regulatory changes, such as new plastic taxes or certain products or materials being banned. Royal LC Packaging is happy to inform you on regulatory changes, such as the PPWR.

2

Achieve cost savings

Contrary to the common perception that ‘sustainable packaging’ means higher costs, it can actually lead to significant cost savings in the short, medium and long term. By optimising packaging design and materials, for example, material usage, transportation costs and waste disposal expenses can be reduced. Additionally, all EU countries are obliged to have an Extended Producer Responsibility (EPR) system in place by 2024 that covers all private (municipal) and B2B waste. At least 80% of the costs of operating such a system should be covered by charging brand-owners for placing packaging on the market. Each country will have its own twist, but we can be certain that extra costs are involved for packaging that doesn’t meet circular economy criteria (renewable materials, recycled content, reusable, recyclable, compostable etc).

3

Protect and enhance brand reputation

Imagine what the impact on your brand reputation would be if your valuable product was packed in packaging linked by the media to working poverty and child labour. Or to pollution on the streets of developing countries or in the oceans. Rebuilding a brand reputation is an extremely costly affair. The easiest way for businesses to protect and enhance their brand reputation, is to work with suppliers who ensure environmental and social standards are met. Both in the design of the packaging, and in production and processing. You can easily add extra value to your products, by using a packaging product with substantiated social and environmental value and with that, have a positive story to tell.

  • efforts to keep products and materials in use (circular economy), reducing dependency on raw material availability and prices;

  • greening our value chain (climate action), reducing dependency on fossil fuels, and;

  • ensuring decent working conditions (living wages), securing employee loyalty and high-quality products.

6

Boost supply chain resilience

The absence of packaging or the presence of quality issues due to disruptions, can have a serious impact on your operations: products can’t be packed and thus transported, stored or displayed. A resilient supply chain is key. At Royal LC Packaging, we boost both our own supply chain resilience and the resilience of our customer’s supply chains by, among others:

4

Create marketing value

Businesses can turn the use of more sustainable packaging into marketing value. In addition to strengthening their brand reputation, marketing your sustainable packaging can help to link into your customer’s sustainability goals in multiple ways. Royal LC Packaging has facts, figures, reports, videos, visuals and other tools available to help our customers communicate their sustainable packaging choices. The statements and data are substantiated, avoiding the risk of greenwashing. Read our Anti-Greenwashing Policy.

7

Innovation and collaboration

The shift towards sustainable packaging has fuelled innovation in the industry. Progressive businesses are investing in research and development to explore new materials, technologies, and design concepts that minimise environmental impact. Collaboration with packaging suppliers, such as Royal LC Packaging, can foster knowledge sharing and drive further innovation.

5

Differentiate and create a competitive advantage

Sustainability sells! Making sustainable packaging choices offers businesses the opportunity to differentiate themselves in the market. Consumers increasingly value companies that prioritise environmental and social responsibility. ‘Sustainable packaging’ is a visible and tangible demonstration of such commitment. Royal LC Packaging has the necessary expertise to advise on the best packaging solution for your products. This includes sustainable decisions that can be made in packaging to demonstrate (at least) compliance and true ambition, and differentiate from competitors.

Last but not least: making packaging more socially and environmentally sustainable is simply the right thing to do! We will be doing our utmost in the upcoming year to promote sustainable packaging choices, and as you can see in this article, we have a substantiated story to tell.

8

Stakeholder engagement

Businesses that invest in sustainability initiatives tend to create a sought-after culture and engagement. This often starts with a company strategy that focuses more on purpose and providing value to society. By investing in sustainable packaging to go with their products, companies can show that they ‘walk the talk’, contributing to stakeholder loyalty and engagement. 

8 arguments

  • efforts to keep products and materials in use (circular economy), reducing dependency on raw material availability and prices;

  • greening our value chain (climate action), reducing dependency on fossil fuels, and;

  • ensuring decent working conditions (living wages), securing employee loyalty and high-quality products.

Boost supply chain resilience

The absence of packaging or the presence of quality issues due to disruptions, can have a serious impact on your operations: products can’t be packed and thus transported, stored or displayed. A resilient supply chain is key. At Royal LC Packaging, we boost both our own supply chain resilience and the resilience of our customer’s supply chains by, among others:

7

Innovation and collaboration

The shift towards sustainable packaging has fuelled innovation in the industry. Progressive businesses are investing in research and development to explore new materials, technologies, and design concepts that minimise environmental impact. Collaboration with packaging suppliers, such as Royal LC Packaging, can foster knowledge sharing and drive further innovation.

6

Lotte Mastwijk
Head of Sustainability

Business case for

sustainable packaging

Recyclable and reusable packaging, produced using renewable energy by employees who receive a living wage: music to many people’s ears. At least… as long as it doesn’t cost more. Good news: it doesn’t! There is a valid business case for sustainable packaging. In the long run, it is even the lowest cost solution. A bold statement, I know, so I have outlined 8 arguments that prove my point. Most likely not all the arguments will appeal to you, but I am sure at least one or two will.

1

Ensure regulatory compliance and risk mitigation

Governments and regulatory bodies worldwide are imposing stricter regulations and guidelines regarding packaging waste, and environmental and social impact, such as the Packaging and Packaging Waste Regulation (PPWR), and the Corporate Sustainability Due Diligence Directive (CSDDD). By proactively adopting sustainable packaging practices, businesses can ensure compliance with existing and future regulations, reducing the risk of fines, penalties, and reputational damage. Moreover, by staying ahead of regulatory trends, you can position yourself as industry leader and avoid potential disruption caused by sudden regulatory changes, such as new plastic taxes or certain products or materials being banned. Royal LC Packaging is happy to inform you on regulatory changes, such as the PPWR.

2

Achieve cost savings

Contrary to the common perception that ‘sustainable packaging’ means higher costs, it can actually lead to significant cost savings in the short, medium and long term. By optimising packaging design and materials, for example, material usage, transportation costs and waste disposal expenses can be reduced. Additionally, all EU countries are obliged to have an Extended Producer Responsibility (EPR) system in place by 2024 that covers all private (municipal) and B2B waste. At least 80% of the costs of operating such a system should be covered by charging brand-owners for placing packaging on the market. Each country will have its own twist, but we can be certain that extra costs are involved for packaging that doesn’t meet circular economy criteria (renewable materials, recycled content, reusable, recyclable, compostable etc).

4

3

Protect and enhance brand reputation

Imagine what the impact on your brand reputation would be if your valuable product was packed in packaging linked by the media to working poverty and child labour. Or to pollution on the streets of developing countries or in the oceans. Rebuilding a brand reputation is an extremely costly affair. The easiest way for businesses to protect and enhance their brand reputation, is to work with suppliers who ensure environmental and social standards are met. Both in the design of the packaging, and in production and processing. You can easily add extra value to your products, by using a packaging product with substantiated social and environmental value and with that, have a positive story to tell.

Create marketing value

Businesses can turn the use of more sustainable packaging into marketing value. In addition to strengthening their brand reputation, marketing your sustainable packaging can help to link into your customer’s sustainability goals in multiple ways. Royal LC Packaging has facts, figures, reports, videos, visuals and other tools available to help our customers communicate their sustainable packaging choices. The statements and data are substantiated, avoiding the risk of greenwashing. Read our Anti-Greenwashing Policy.

5

Differentiate and create a competitive advantage

Sustainability sells! Making sustainable packaging choices offers businesses the opportunity to differentiate themselves in the market. Consumers increasingly value companies that prioritise environmental and social responsibility. ‘Sustainable packaging’ is a visible and tangible demonstration of such commitment. Royal LC Packaging has the necessary expertise to advise on the best packaging solution for your products. This includes sustainable decisions that can be made in packaging to demonstrate (at least) compliance and true ambition, and differentiate from competitors.

8

Stakeholder engagement

Businesses that invest in sustainability initiatives tend to create a sought-after culture and engagement. This often starts with a company strategy that focuses more on purpose and providing value to society. By investing in sustainable packaging to go with their products, companies can show that they ‘walk the talk’, contributing to stakeholder loyalty and engagement. 

Last but not least: making packaging more socially and environmentally sustainable is simply the right thing to do! We will be doing our utmost in the upcoming year to promote sustainable packaging choices, and as you can see in this article, we have a substantiated story to tell.