Global survey finds data accuracy essential for sustainable packaging transition

12 Sep 2024 --- Data quality is crucial to ensure regulatory compliance in the packaging industry, according to consultancy firm Aura. Its latest global survey underscores the complexity for businesses to transition to sustainable packaging and highlights the need for improved data management systems and regulatory clarity.

The survey polled more than 50 industry senior attendees from some of the world’s largest retail and consumer packaged goods brands.

According to the packaging consultancy’s findings, the quality of data collection is barring sustainable practices in the packaging and retail industries, revealing only a quarter of packaging and retail leaders believe their green strategies are both “robust and achievable.” 

It also finds that only 14% of respondents disclosed they were on track to achieve 100% accuracy in the data they need to manage their packaging sustainability and ensure compliance, particularly with frameworks like extended producer responsibility (EPR). 

Greg Lawson, managing director at Aura, says: “It is not surprising so few brands consider their sustainable packaging strategy to be achievable — many are still far behind the curve when it comes to collecting the data they need.”

“Legislation like EPR demands 100% data accuracy across all components, or brands and retailers will likely face higher fees. Another major source of concern is that so many are leaving it to be done manually, which is simply an impossible task. Businesses need reliable, agile processes in place to collect and manage that data and design their sustainable packaging right first time.”

Regulatory uncertainties

The issue of data collection also presents a difficult roadblock, with almost 30% of leaders admitting that they still collect sustainability data manually, rather than using either a dedicated platform or an existing product lifecycle management platform.

E-halo delivers packaging data in line with future legislative requirements and automated compliance across legal requirements and voluntary commitments. While half of the respondents said they are currently in the data-gathering phase of developing their packaging strategies, many remain uncertain about global regulations. 

The survey found that only 11% of industry leaders are confident they fully understand the actions required both now and in the future. The remaining 89% admitted that they have, at best, a partial understanding of the regulatory landscape.

“The implementation of EPR in so many regions and territories, each with different rules and with more approaching, highlights the importance of understanding this landscape. It is extremely difficult and complex for organizations that sell their products in multiple territories to navigate,” says Lawson.

“The first step must be developing accurate and robust data on every packaging component a business deploys. If you don’t know exactly where you’re starting from, you cannot possibly know what level of charges and fees you might be liable for — let alone the incentives and subsidies to improve.”

Platform for packaging sustainability

To approach data management and compliance, e-halo, a packaging sustainability platform developed by Aura, is trying to provide clear, transparent and real-time data on structural packaging and sustainability. It enables global retailers and brands to optimize their packaging, manage compliance with regulatory requirements, reduce tax liabilities and minimize environmental impact.

Designed for easy integration, e-halo automatically interacts with existing IT systems like Product Lifecycle and Artwork Management Systems. It enhances data flow, visualization and automation, ensuring that the right people have access to the necessary information in one place.

Earlier this year, the company partnered with carbon management data specialist CarbonQuota to offer brands and retailers a comprehensive view of packaging sustainability. By integrating CarbonQuota’s carbon calculator into Aura’s e-halo platform, the collaboration aims to provide a more holistic understanding of the environmental impact of packaging. 

Aura previously talked to Packaging Insights, highlighting how carbon measurement performs as a universal method for assessing environmental impact. Combined with evaluations of recyclability and legislative compliance, it enables proactive packaging development and selection. This approach helps businesses meet and maintain sustainability goals throughout the entire value chain.

By Sichong Wang