It's not easy being green. But many consumer packaged-goods manufacturers, spurred on by government regulation and new retailer requirements, are stepping up efforts to reduce their impact on the environment. And, for many, packaging is an obvious place to start.
In Europe, under the European Union's Packaging Waste Directive, manufacturers already pay for collection and recycling of packaging waste based on the packaging material and weight. In the United States, retailers and some states have established packaging material mandates.
Retail giant Wal-Mart Stores Inc., for example, unveiled its Sustainability 360 Initiative in February 2007, during a keynote address by Lee Scott, president and chief executive officer, at the biennial Prince of Wales Business and the Environment Programme in London. Company goals include a transition to 100% renewable energy, elimination of waste, and sale of products that sustain resources and the environment. This effort relies heavily on suppliers.
In fact, Wal-Mart expects its global supply chain to achieve a 5% reduction in packaging by 2013 and has developed a Packaging Scorecard rating system to help identify the best packages in each product segment. Within a year, Wal-Mart will begin using scorecard results to make purchasing decisions. The retailer is also pushing for suppliers to reduce their own waste and develop products that rely less on carbon-based energy. (Read more on Wal-Mart's rating system.)