Finat reports on evolving sustainability landscape

In the third session of the Finat European Label Forum (ELF) 2024, presenters explored the evolving landscape of sustainability, focusing on regulations, technology, and industry collaboration.

With three diverse program items, this session provided insights into the EU's advancing directive on corporate sustainability reporting (CSRD), the potential of smart packaging to reduce food waste, and readiness for the upcoming EU Packaging and Packaging Waste Regulation (PPWR).

Michel Scholte, co-founder of the Impact Institute and True Price, delved into the transformative potential of the EU Corporate Sustainability Reporting Directive (CSRD). Scholte presented CSRD as a milestone in the journey toward a sustainable economy, aiming to integrate social and environmental impact into corporate financial reporting.

He highlighted the ‘True Pricing’ movement, which advocates for prices that reflect social and environmental costs. Scholte argued that CSRD marks a pivotal shift in how Europe values business impact, urging companies to balance business performance with well-being and planetary health. By requiring companies to report on material social and environmental impacts, CSRD challenges businesses to go beyond transparency and work toward substantive change.

Scholte’s examples included an Amsterdam-based supermarket that adopts True Pricing on products like bananas and broccoli, showing the real social and environmental costs alongside the retail price. He noted that the introduction of impact accounting under CSRD would drive significant market shifts, creating value for companies dedicated to sustainable practices.

John Eisses of Berenschot and AIPIA presented a case on the role of smart packaging technology in reducing food waste throughout the supply chain. According to UN data, this initiative aims to minimize food losses, which reach nearly 1.3 billion tons of wasted food each year. Eisses emphasized the benefits of smart sensors that monitor conditions such as temperature and humidity in real time, extending perishable items' shelf life.

In addition, he discussed advancements like photonic circuits and inkjet-printed sensor tags that monitor gas levels in packaged food to detect freshness. The smart packaging system will be supported by cloud technology, enabling data exchange for supply chain optimization and transparency. The project, for which an application for EU funding has been made, aims to demonstrate smart packaging’s potential to transform food logistics, reduce waste, and enhance efficiency.

A panel, introduced by Finat’s regulatory affairs manager Pablo Englebienne, discussed the industry's readiness for the PPWR, a regulation poised to overhaul Europe’s approach to packaging and waste. The PPWR seeks to ensure that all packaging in the EU is recyclable by 2030 and includes targets for recycled content and reusable packaging. The panelists, representing Europen, Plastics Recycling Europe, UPM Raflatac, Ceflex, Sulayr Global Service, and Avery Dennison, addressed both opportunities and challenges.

The panel highlighted the importance of industry-wide data collection, a collaborative approach to advocacy, and harmonized standards for the entire packaging value chain. They stressed that while the regulation is comprehensive, further clarity on implementation guidelines will be essential for compliance. Panelists also underscored the importance of aligning PPWR with other EU sustainability goals, such as those under the European Green Deal. With the regulation nearing finalization, industry stakeholders are preparing to embrace the changes, though they acknowledge that adapting will require significant investment and collaboration.

The third session underscored Europe’s commitment to a sustainable future through progressive regulations and innovative technologies. From the EU’s ambitious CSRD to intelligent packaging and the PPWR, the session highlighted a multi-faceted approach to achieving long-term sustainability in the packaging and labeling sectors. Through transparency, technology, and cross-industry alignment, Europe’s sustainability goals are gradually coming within reach.

These insights can serve as a foundation for more detailed discussions, guiding the industry toward a more resilient and sustainable future.

Finat will continue the dialogue at the upcoming European Label Forum, which will be held May 21-23, 2025, in Amsterdam, The Netherlands.