At times, it can be difficult to keep abreast with the legislation that is applicable within the packaging industry.
At Hub Packaging, we are committed to keeping you informed on the newest packaging reforms. Amidst the introduction of extensive packaging legislation surrounding packaging waste within the UK, now is a great time to shape up on your understanding of the regulations that may affect you. Within our latest blog, we will outline the key pieces of packaging legislation that may impact you and your business in 2024.
What is packaging legislation?
‘Packaging legislation’ refers to any legal requirement or regulation that includes packaging materials. ‘Packaging legislation’ may only concern certain businesses; this is dependent on various criteria’s, i.e., how much packaging the business produces.
What Packaging Legislation should you be aware of?
Packaging Waste Regulations
The Packaging Waste Regulations scheme aims to help businesses reduce the amount of packaging they produce, reduce the amount of packaging they put into landfill, and also increase the amount of their packaging waste that is recycled. Under the Packaging Waste Regulations scheme, your business may be classed as an “obligated producer”; you will be classified as an “obligated producer” if your business produces, uses, or sells packaged goods.
More specifically, you will be classed as an “obligated producer” if your business:
- Has handled 50+ tonnes of packaging, or packaging materials in the previous calendar year.
- Has had a turnover of more than £2 million a year, depending on the last financial year’s accounts.
If these criteria(s) are applicable to you, your business must be registered by a packaging producer by 7th April, every calendar year. Additionally, your business must meet any of the required recycling commitments, and provide any applicable evidence of compliance. Subsequently, your businesses certificate of compliance should then be submitted 31st January, of the following year.
UK Plastic Packaging Tax
The UK Plastic Packaging Tax, which was introduced in 2022, imposes a charge on plastic packaging materials that contain less than 30% recycled content. At the present moment, the fee is £210.82, yet it is set to increase to £217.85 from 1st April 2024.
Considering both the EPR scheme, and the Plastic Packaging Tax, the Government is incentivising businesses to adopt and use products with increased recycled material content, or paper-based packaging materials.
Extended Producer Responsibilities
Introduced in 2023, the new Extended Producer Responsibilities scheme, aims to further increase recycling. Dually, Extended Producer Responsibilities make packaging producers responsible for household packaging recycling and recovery costs.
Businesses will have to provide attuned and immediate information regarding the packaging that they are producing, and placing on the market. Businesses will also be required to pay fees; this will be hinged / dependent on the packaging used, and the likelihood of it eventually ending up within household waste. For example, plastic is expected to be taxed more than paper. However, within the category of ‘plastics’, different types of plastics will have varying fees. The fee is dependent on how uncomplicated it is to recycle them.
To be considered within the sphere of Extended Producer Responsibilities, the following must apply:
- You will be an individual business, subsidiary of a group, but not a charity.
- Your annual turnover is £1 million+, according to your most recent annual accounts.
- Your business will have been responsible for more than 25 tonnes of packaging in 2022.
- Your business carries out any packaging activities, as outlined by the Government.
Both reporting and fees will depend on whether you are either a large, or small business. Naturally, larger businesses will have increased responsibility with regards to reporting, and fee-paying obligations alike.
*Note, the title ‘larger businesses’ refers to organisations that have £2million+ in annual turnover, and who are producing, and placing more than 50 tonnes of packaging within the UK market.
EU Corporate Sustainability Reporting Directive
The EU’s new Corporate Social Responsibility Reporting Directive (CSRD) requires at least 50,000 EU-based large companies to formulate a report on both their social and environmental impacts from 2024, and beyond.
Whilst the UK is no longer part of the EU , the legislation applies to UK businesses with strongholds in other European countries. This is applicable in two scenarios:
- Listed Securities: Regardless of location, if your company has securities which are listed on an EU-regulated market, it will fall under the sphere of influence of the CSRD reporting obligations.
- EU Net Turnover: If your business has a net turnover, within the EU, of over €150million, over the last two consecutive financial years, then your business will be subject to the CSRD.
Dually, if your company meets either of the following benchmarks:
- Your business has an EU subsidiary with securities that are listed on an EU-regulated market or qualifies as a large undertaking.
- Your company operates an EU branch, that has generated a net turnover, which exceeds €40 million, in the previous financial year.
If any of these scenarios apply to your business, you must comply with the CRSD.
What does this all mean for packaging?
Practically, packaging strategies may form a portion of your sustainability reporting, and have sufficient sway on your environmental impact. As a business, you may want to consider the following factors regarding packaging:
- Your business’s packaging waste data
- The recyclability of your packaging
- The effect of packaging usage on your carbon footprint
In addition to this, and as established, your business will have a duty to report on this information.
How to mitigate the impact of packaging legislation in 2024
Here at Hub Packaging, we are more than willing to help you actively mitigate the impact that packaging legislation may have on your business.
Sustainable Packaging Products
At Hub Packaging, we have a wide range of recycled / recyclable packaging products. We are dedicated to continually improving our portfolio of products with the latest in packaging technology. Why not have a look through our website, to see what we currently have on offer, by clicking here.
Packaging Optimisation
Our team of dedicated experts are readily available to help you formulate a more sustainable, flexible, and hassle-free packaging process. Creating a more streamlined and sustainable process can help reduce both your packaging weight and remove CO2 from your supply chain.
Advice
At Hub, we are eager to find more ways of making our business more sustainable, and helping our customers do the same! Our dedicated team of experts are both accredited and recognised specialists; so, you can rest assured you are getting specific and trustworthy advice.
To find our more information about how Hub Packaging can assist you with any Packaging Legislation related concerns, get in touch today! Our technical team can provide more information regarding anything mentioned above, including packaging optimisation. The team will also reply to any queries you may have:
Email: sales@hub-packaging.com
Phone:
Sales (NI): +44 (0) 28 4175 4977
Sales (ROI): +353 (1) 866 0136
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