Decarbonization efforts have resulted in a carbon border tax on the big 5 – cement, steel, fertilizers, petrochemicals, and aluminum. As more and more countries adopt carbon tax the cost of raw materials is going to go up.
REUSE of packaging is about building a closed-loop supply chain. Companies investing in the REUSE ecosystem can realize benefits such as
- Reduced Packaging Costs:
Packaging reuse offers companies an effective way to manage these rising costs. By adopting a closed-loop supply chain for packaging reuse, companies can significantly reduce their overall packaging expenses. A closed-loop system promotes standardization of packaging and optimization of operations. For example, Germany’s deposit refund scheme, pfand, demonstrates how reuse systems can effectively reduce packaging expenses.
- Quality Recycled Material:
A packaging reuse ecosystem typically has low rejection rates (around 5%) due to wear and tear. The rejected packaging material provides a valuable source for high-quality recycled material, addressing the current challenges companies face in sourcing quality recycled content.
- Lowered Extended Producer Responsibility (EPR) Costs
When a company invests in packaging reuse, it decreases the need for virgin raw materials, thereby lowering EPR obligations and associated costs. As regulatory bodies strengthen enforcement against non-compliant EPR practices, the costs of compliance will continue to rise, making reuse a more attractive financial decision.
- Customer Attraction and Brand Loyalty
An increasing number of consumers actively seek products from environmentally responsible companies. Investing in packaging reuse enhances your company’s appeal to eco-conscious customers, improving customer retention and building brand loyalty.
- Demonstrate Sustainability Leadership
Companies that prioritize packaging reuse showcase their commitment to sustainability, strengthening their brand image and reputation. This leadership can differentiate your business from competitors, driving growth and long-term profitability.
- Lower Carbon Footprint
Implementing packaging reuse significantly reduces the energy consumption and carbon emissions associated with the production of new packaging. This supports businesses in achieving their decarbonization and sustainability goals.
In summary, investing in packaging reuse delivers substantial financial, environmental, and brand benefits. With consumer preferences increasingly shifting towards sustainable brands and regulatory frameworks like EPR becoming more stringent, packaging reuse presents a strategic advantage for forward-thinking companies.