Ethical packaging protects the product, communicates honestly and makes environmental and social claims that consumers can understand and check.
By Charles Haverfield, CEO of US Packaging & Wrapping
Reviewed by Brett Stadelmann
Packaging ethics starts with practical questions: does the pack protect its contents, disclose important information and describe its environmental performance accurately? Appearance and convenience matter, but so do accessibility, affordability and the evidence behind a claim.
Consumer research can inform packaging decisions when the survey’s date, market, sample and questions are clear. Treat stated preferences as findings about that surveyed group, rather than a universal prediction of what every customer will buy or pay. Specific, verifiable claims are more useful than an undated percentage.
Businesses can build trust by explaining specific packaging choices and their limits, rather than relying on vague green language or assuming every customer has the same priorities.
In this article, I’ll discuss how packaging is an effective way for companies to address specific consumer concerns, and how to help businesses to engage, inform and reassure consumers when it comes to their ethical practices.
Consumer Rights and Concerns
Brands fail to meet consumer rights and expectations in several ways.
Deceptive labelling can create unrealistic expectations about a product’s characteristics, benefits or ingredients. For environmental claims, the Australian Competition and Consumer Commission advises businesses to consider both accuracy and the overall impression, including packaging visuals. Requirements differ between markets, so check the rules applicable to where the product is sold.
Incorrect labelling can obscure important information about potential health risks associated with a product. For example, if a food product contains allergens but the label fails to accurately disclose this information, consumers with allergies may unknowingly consume the product and suffer adverse reactions.
Limited availability or higher cost can make it harder for consumers to choose sustainable packaging. That is an accessibility and affordability concern; it should not automatically be described as a violation of a universal legal right to buy an environmentally preferable pack.
Other consumer concerns that can arise occur when brands fail to accurately represent cultural traditions or symbols risk misinforming consumers and perpetuating cultural stereotypes or misconceptions.
Colour, wording and imagery can carry different meanings across audiences. Test packaging with the people who will use it, rather than relying on a famous marketing anecdote as evidence of how an entire region responds.
Translated product names, safety information and disposal instructions need competent local review. Check that the intended meaning survives translation and that consumers can follow the instructions in the market where the pack will be sold.
Clear language and local testing help consumers understand what they are buying. Cultural representation should be assessed with the relevant community rather than reduced to a single stereotype about a colour or phrase.
Product protection and safety are part of packaging ethics. Choose materials appropriate to the contents and intended use, and communicate any relevant handling requirements. Environmental litter and end-of-life effects are distinct questions; our Packaging Waste overview examines that wider impact.
Key Factors of Ethical Packaging Practices
Credit: BrokenSphere
How to Address the Negative Environmental Impact
Addressing the negative environmental impact of packaging requires a multi-faceted approach.
Packaging companies should start by trying to minimise the materials used through innovative design techniques, more lightweight materials, and efficient packaging methods. This can include adopting strategies like source reduction, where unnecessary packaging is eliminated, or right-sizing packaging to better fit the product.
Compare material choices against their actual function and recovery route. Recycled content, renewable feedstock and compostability answer different questions; none automatically proves a lower overall footprint. A compostable pack needs suitable collection and treatment, while a recyclable design needs a receiving system that accepts it. Make those conditions clear on the pack.
Investing in improved recycling infrastructure and facilities is key to ensure that packaging materials can be properly recycled and recovered. This includes expanding curbside recycling programmes, implementing extended producer responsibility (EPR) policies, and educating consumers about proper recycling practices.
Businesses should try to transition towards a more circular economy model, where possible, meaning packaging materials are designed to be reused, recycled, or composted at the end of their life cycle. This involves introducing strategies like product stewardship, closed-loop recycling systems, and incentivising the use of circular packaging designs.
Raise awareness among consumers about the changes you have made to your packaging to reduce its negative environmental impact. Provide information about the eco-friendly packaging options you’ve introduced across your website and social media platforms. You can even include the changes you’ve made on the packaging itself.
Certification marks can make sourcing commitments easier to understand, provided the claim matches the scheme’s scope and the named product or ingredient. A certification about cocoa sourcing, for example, is not a certification of the wrapper’s environmental performance.
Fairtrade explains the differences between its product and sourced-ingredient marks. An ingredient mark identifies the named ingredient, and an arrow can direct shoppers to information about sourcing on the back of the pack. Read the accompanying statement rather than assuming every ingredient or the packaging material is covered.
Businesses should describe a specific verified initiative and the products it covers. A brand announcement, a change in packaging or a certification logo does not by itself establish a competitive advantage or an improvement across every product the company sells.
How to Address the Social Impact
One of the social issues concerning packaging is that inequities in access to goods and services can be perpetuated through packaging choices. For example, products with excessive or non-recyclable packaging may be more expensive, limiting access for lower-income consumers. Of course, ethical concerns can arise when packaging practices exacerbate socioeconomic disparities or discriminate against marginalised communities.
Companies should try to evaluate the cost implications of sustainable packaging options and seek ways to minimise expenses without compromising sustainability goals. This might involve exploring alternative materials, optimising packaging designs for cost-effectiveness, and leveraging economies of scale through bulk purchasing or collaboration with other businesses.
You could also explore options for subsidising sustainable products or providing vouchers to low-income consumers specifically for purchasing environmentally friendly products, including those with sustainable packaging. This approach can help bridge the affordability gap and promote sustainable consumption habits.
Another concern is that the production of packaging materials often involves labour-intensive processes that may be subject to poor working conditions, low wages, or exploitation of workers’ rights. Ethical concerns arise when packaging companies prioritise cost-cutting measures at the expense of labour rights or fail to ensure fair and safe working conditions throughout the supply chain.
Businesses should develop a comprehensive supplier code of conduct that outlines the company’s expectations regarding labour practices, including fair wages, safe working conditions, non-discrimination, and freedom of association. Require all your suppliers to adhere to these standards and conduct regular audits to ensure compliance.
It goes without saying that workers should be paid fair wages that meet or exceed legal minimums and industry standards. Responsible organisations should provide benefits like healthcare, paid leave, and retirement savings plans to support workers’ well-being and financial security.
Prioritising workplace safety is a must, by implementing measures to prevent accidents, injuries, and occupational hazards. Conduct regular risk assessments, provide personal protective equipment (PPE), and invest in training programmes to promote a culture of safety.
Implement age verification procedures, conduct regular audits, and collaborate with suppliers to ensure compliance with labour laws and international standards. Companies should be doing everything they can to prohibit child labour and forced labour in all aspects of their business operations and supply chain.
You’ll need to promote transparency and traceability within the supply chain to identify and address labour-related risks. Maintain visibility into subcontractors, intermediaries, and raw material suppliers, and collaborate with stakeholders to address issues like informal labour, subcontracting abuse, and exploitation.
Consumers benefit from clear information about environmental and social claims, including what those claims cover and their limits. Ethical concerns arise when companies lack transparency about their packaging practices, overstate their credentials or omit significant lifecycle trade-offs. Specific legal disclosure requirements depend on the product and market.
An earlier industry article’s Waitrose example illustrates how packaging can communicate ingredient sourcing. Its product counts and sales-growth figures are historical context, not verified current inventory or proof that the packaging caused retail growth. Check the certification on the actual product and its current sourcing statement.
Addressing the Governance Aspect
The “Governance” aspect of ESG principles brings a critical layer of accountability, transparency, and responsible decision-making to the world of packaging. Strong corporate governance ensures that companies have clear decision-making processes and mechanisms for accountability.
Addressing this involves implementing policies, procedures, and standards to ensure that packaging materials are responsibly sourced, designed, used, and disposed of.
Businesses need to stay informed about local, national, and international regulations regarding packaging materials, labelling, recycling, and disposal. Ensuring compliance with these regulations is essential to avoid fines and penalties.
Developed guidelines for sourcing packaging materials from sustainable and ethical suppliers is also key. Consider factors like material renewability, recyclability, biodegradability, and the use of recycled content.
You’ll also need to conduct lifecycle assessments (LCAs) to evaluate the environmental impact of your packaging materials from extraction to disposal. Using this information will help to inform you about the best packaging options and enable you to identify opportunities for improvement.
Establish design standards that prioritise minimalism, material efficiency, and recyclability. Encourage the use of eco-friendly materials and designs that minimise waste throughout the product lifecycle.
As mentioned earlier, organisations can achieve this by optimising packaging sizes, using refillable or reusable packaging, and eliminating unnecessary packaging components.
Collaborating with packaging suppliers is vital to improving your sustainability practices and transparency throughout the supply chain. Engage with industry associations, research institutions, and other stakeholders to share knowledge, collaborate on sustainability initiatives, and advocate for policies that support responsible packaging practices.
You’ll also need to maintain transparency about your packaging practices and performance through regular reporting and communication with relevant stakeholders. Make sure you regularly disclose information about packaging materials, recycling rates, and progress toward sustainability goals.
I talked about the importance of informing customers about improved sustainability practices. But you can also educate consumers about proper packaging disposal practices too, including the best recycling options, and the environmental impact of different packaging materials.
By implementing these governance measures, businesses can promote responsible packaging practices, minimise environmental impact, and contribute to a more sustainable future.
Through the lens of governance, we gain insight into how companies operationalise ESG principles within their packaging strategies. Transparent reporting, adherence to regulations, and stakeholder engagement are essential components of responsible packaging practices.
Measuring and Reporting your ESG Impact in Packaging
While the integration of ESG principles into packaging strategies is crucial, quantifying and communicating the impact of your efforts is also important.
ESG efforts are measured, tracked, and shared, in several ways, which contributes to a more informed and engaged audience that recognises the value of sustainable and responsible packaging practices.
Firstly, define specific packaging goals, such as reducing material per protected product, cutting lifecycle emissions or improving responsible sourcing. State a baseline, timeframe and measurement method, and align these objectives with broader corporate sustainability strategies and stakeholder expectations.
To effectively track and manage progress, companies must establish meaningful KPIs that measure the environmental, social, and governance aspects of their packaging initiatives. For example, including metrics related to waste reduction, carbon emissions, supply chain ethics, and stakeholder engagement.
You’ll need to establish robust systems for collecting, aggregating, and managing data related to your ESG performance in packaging. This means ensuring data integrity, accuracy, and consistency by implementing standardised measurement methodologies and data collection procedures across the organisation and supply chain.
Various organisations and initiatives offer sustainability reporting frameworks that guide companies in reporting their ESG performance. Prominent frameworks include the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). These frameworks help standardise reporting, ensuring that companies provide transparent and comparable information to stakeholders.
Establish a process for monitoring, reviewing, and continuously improving ESG performance in packaging. Set up regular performance reviews, conduct audits and assessments, track progress against targets, and identify opportunities for innovation and optimisation, where you can.
Businesses should also demonstrate transparency and accountability in ESG reporting by disclosing both successes and challenges, as well as the methodologies and assumptions underlying performance metrics. You can invite external verification or assurance of ESG data to enhance credibility and trustworthiness for your stakeholders and consumers.
By following these steps, businesses can effectively measure and report their ESG impact in packaging, demonstrating their commitment to sustainability and responsible business practices.
About the Author
For over a decade, Charles has led U.S. Packaging & Wrapping from a customer-driven approach ensuring employees and management understand how to identify needs before and after a purchase.
With a wealth of experience in the industry, Charles consistently delivers high-quality packaging implementation to align with clients’ goals and market demands, which effectively increase efficiencies while lowering costs.