63 BUSINESS ADVICE Packaging has always played a special role in giftware. As well as protecting the product, it gives companies a chance to reinforce brand values and to build a relationship with the customer, so brands go to a lot of trouble to ensure that the whole experience – from purchase to unboxing – prompts a feeling of joy. However, new legislation, coupled with greater awareness of the potential damage to the environment, is driving a rethink around how we approach product protection. While some brands have set voluntary targets on issues like carbon and plastics, a great deal has been going on behind the scenes. Under new Extended Producer Responsibility (EPR) for Packaging legislation, for example, brands will be held responsible for funding the collection, sorting and recycling of waste packaging from households. With costs expected to rise from £350million to more than £1.7billion per year, businesses need to plan ahead, budget for increases and identify ways to reduce costs. EPR KEY FACTS Packaging EPR applies to any business with a turnover of more than £1million that handles more than 25 tonnes of packaging materials.* These companies must report twice a year on the volume of packaging materials placed on the market and pay a fee to cover recycling costs. Some businesses are not required to pay fees, but must still report on the volume of packaging placed on the market in each of the UK nations. In addition, all brands – regardless of size – will need to label packaging with a binary ‘recycle’ or ‘do not recycle’ label by 1st April 2027. Reporting requirements began in October 2023, with the first EPR fees coming into play in October 2025. This may seem like a long way off, but there is no room for complacency. To give an idea of scale, where Valpak’s previous reporting system called for 117 fields of data, our latest EPR submission forms require 600 fields. As the system develops, we expect Packaging rules New environmental legislation is set to rock the world of giftware packaging. Kate Loosmore, Head of Compliance Services at the UK’s largest compliance scheme, Valpak by Reconomy, explains whether your business is liable and how to navigate the new system
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