Rewiring the Brain for Reuse: Decoding Producer Behaviour

PART 2: HOW CAN PRODUCER BEHAVIOUR SHAPE A SUSTAINABLE FUTURE?

Companies from every industry are facing increasing calls from their consumers, investors and employees to play a greater role in accelerating the transition to more sustainable business practices. As they do so, they need to manage the risks and seize the opportunities created, from enhanced reputation and new revenue streams, to better risk management and business continuity.

As we discussed the consumer trend study conducted by Deloitte in 2023 in Part 1, it's also important to understand what this means for the producers and businesses.

• Lead with transparency - Increased transparency not only allows consumers to make more deliberate choices about sustainability, it also supports better reporting, which increasingly is becoming a requirement. Given the role trust plays in building consumer engagement, improving transparency can drive higher levels of loyalty. Transparency requires an underlying infrastructure, one that combines agreed standards for better ESG data collection and sharing, paired with intelligent analytics and real-time delivery of data.

  
  

• Think sustainability first to create value and cut costs - Demonstrate to their shareholders the value creation that comes with environmental, social and corporate governance (ESG) initiatives, such as decarbonisation or human rights programmes, rather than treat them just as compliance issues. For example, revisit consumer expectations with a sustainability lens, rethink their segmentation and align their offering accordingly. Consider the impact of existing products and services, embed a circular model, and roll out sustainable products and services that satisfy the increasing demand for more sustainable alternatives outpacing their peers as a result. Sustainability initiatives can also achieve efficiencies through cutting waste, shortening the supply chain, and achieving saving energy and water.

  
  

• Bring circularity into their value chain - The application of circular principles offers significant potential for organisations to achieve commercial and strategic objectives including cost reduction, value chain resilience, new revenue streams and net-zero targets. Becoming more circular is challenging, requiring engagement from functions right across the business, from operations to finance and logistics. It also relies on wider systemic change, meaning that there are often factors which fall outside a company’s direct sphere of control. Shifting to a more circular economy will require experimentation with new approaches, new technologies and revised business models.

  
  

• Transform while building risk resilience - How an organisation responds to climate risks and opportunities will be key to its long-term sustainable growth. To lead a transformation to a more sustainable business, leaders need knowledge paired with a clear action plan. They also need to ensure that every function is accountable for implementing ESG strategies that will improve and protect margins, build brand value, and enhance risk resilience. 

  
  

• Navigate and influence the wider system-level change - Be involved in their sector’s path to decarbonisation and sustainable practices, including working more closely with the policymakers, the financial sector and businesses in their wider value chain (such as logistics) to accelerate consumer access to greener products and services at standard pricing. Also, take advantage of the policy incentives that exist in their jurisdictions, to benefit from existing grants that have been established to activate and reward sustainable developments and investments.

  
  

• Get ahead of regulatory change - While new regulations invariably introduce additional compliance costs, they can also provide the opportunity to mobilise for change and open first-mover advantages. As sustainability regulatory requirements and standards expand, it is essential to adopt a strategic approach to navigate the complexity, and to proactively engage with regulators. Approaching regulations holistically can create value beyond compliance.

  
  

• Empower their finance function - Regulatory and assurance requirements are driving the demand for verifiable and detailed ESG data for qualitative and quantitative disclosure. Embed sustainability metrics and measures into the planning, budgeting and forecasting process and review cycles. Look beyond the traditional financial metrics, to also consider social and environmental information as part of management information; and adapt capital investment appraisal processes to integrate social and environmental issues. Their finance team will have a key role in ESG disclosure as non-financial information becomes a part of many companies’ annual reports.

Strategies for Encouraging Reusable Packaging:                    

1. Education and Awareness Campaigns - Informing consumers about the environmental impact of single-use packaging is a powerful first step. Studies show that increased awareness leads to more conscientious consumer choices. Campaigns can highlight statistics on plastic pollution, carbon footprint reduction through reuse, and the benefits of reusable alternatives.

2. Incentivizing Behaviour Change - Financial incentives such as discounts or loyalty points for customers who bring their reusable containers or bags can motivate sustainable behaviour. Businesses can also offer incentives for purchasing products packaged in reusable materials or refillable containers.

Environmental impact comparison of single-use and reusable thermally controlled shipping containers

A study conducted by LCA has evaluated critical environmental impact differences between reusable and single-use logistical approaches to thermally controlled containments. It is estimated that choosing a reusable logistical approach relative to the single-use approach over a course of 30,000 shipments would reduce environmental impacts by the following percentages:

• Global warming emissions (GWP)—78 %

• Acidification emissions (AP)—66 %

• Eutrophication emissions (EP)—67 %

• Photochemical ozone emissions (PCOP)—86 %

• Human toxicity emissions (HTP)—56 %

• Post-consumer waste—95 %

  
  

3. Designing Convenient Systems - Making reusable options as convenient as single-use products is essential. Businesses can redesign packaging to be user-friendly, lightweight, and easy to clean. Implementing convenient refill stations or return-and-reuse programs can further enhance accessibility and usability.

Some brands with great sustainable packaging are as follows:

Name of the Brand	What are they doing?	Achievements	How does it look?
Lush	They take an unpackaged approach whenever possible: 35% of their products come totally package-free or, as they like to call it, “naked.” For things that must come packaged, Lush uses recycled and recyclable materials. All of their plastic packaging is made from 100% post-consumer recycled material. They’ve even taken it a step further by finding local suppliers to handle recycling and manufacturing, minimizing the environmental impacts of shipping.	Since 2005, Lush has saved 124 million plastic bottles from ever being produced through unpackaged alternatives alone.  In 2012, the company made their clear plastic bottles 10% thinner, saving thousands of pounds of plastic each year. And with creative brand loyalty programs that encourage customers to accumulate and bring in empty packages in exchange for free face masks, Lush takes a fully loaded approach to closing the loop on packaging.
Dell	All that polystyrene (or resin) protecting your electronics is not biodegradable and rarely gets recycled. Fortunately, Dell is pushing industry sustainability standards forward by adopting plant-based alternatives, including a mushroom-based polystyrene substitute. The packaging material innovation comes from Evocative Design, a New York biomaterials company that started as a university project by founders Eben Bayer and Gavin McIntyre.	Dell is to achieve 100% sustainable and waste-free packaging by 2030.
Carlsberg	They approached the issue of plastic six-pack rings by eliminating the rings altogether. The company developed a special glue to hold their six-packs together, all while having zero impact on the recyclability of the cans.	The company’s “Snap Pack” reduces plastic use by 76%, saving 1,200 tons of plastic every year.
Puma	Between cardboard shoe boxes and excessive amounts of tissue paper, footwear packaging’s waste problem is serious. That’s why Puma collaborated with San Francisco designer Yves Béhar for a lesson in sustainable packaging design: the Clever Little Bag. The Clever Little Bag uses 65% less cardboard than traditional cardboard shoe boxes by replacing the material with reusable bags and flat pack cardboard trays that provide structure.	On the supply chain side, it reduces water, energy, and diesel consumption by more than 60% annually. Made from recyclable plastic, the bag is lighter and smaller than standard alternatives. This reusable packaging solution completely eliminates the need for a shopping bag long after you’ve purchased the shoes.

4. Collaboration with Retailers - Partnering with retailers to prominently display reusable alternatives and educate customers at the point of purchase can significantly influence buying decisions. Creating dedicated sections for eco-friendly products and prominently labeling sustainable options can attract environmentally conscious consumers.

Concludingly, producers have a powerful influence on consumer behaviour and environmental outcomes. By prioritizing reusable packaging, offering incentives, and educating consumers, producers can drive significant change towards sustainability. Together with consumer efforts, these initiatives contribute to a more sustainable future.