Metsä Board Magazine – Winter 2024

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Retailer

Retail responding to evolving regulation Constantly changing legislation challenges the packaging industry value chain, from producers to retailers.

Elina Hovinen, photo: Roope Permanto

I n Europe, packaging legislation is becoming in- creasingly strict as the EU seeks to reduce the use of plastic in packaging while promoting the circular economy and recyclability. The changes affect the en- tire value chain in the packaging industry, from pack- aging producers to retailers. Kesko is committed to the EU’s Directive on single-use plastics (SUP-D), which aims to reduce single-use plastic packaging. Kesko is one of Finland’s largest retail chains. As a large operator, Kesko has the responsibility of acting as a trend- setter and setting an example. The company is commit- ted to sustainability and related tangible actions such as reducing the use of plastic in packaging. “We closely follow discussions and decision making re- lated to legislation. We participate in public dialogue with both the authorities and interest groups. This keeps us up to date on changes to legislation,” says Director Tuuli Luoma , who is in charge of Kesko’s sales and own brands. Kesko issues various statements and comments on leg- islative amendments and needs for change to advocacy groups. It helps smaller operators comply with legislation by arranging training, for example. “We review various official guidelines and instructions for their interpretation. We discuss whether they might be open to various interpretations, and whether differ- ent parties should be informed to prevent any ambigui- ty. We attempt to react proactively to changes before they take effect.” Long-term packaging solutions Kesko works in close cooperation with various stakehold- ers and packaging producers to ensure packaging meets

the sustainability and recyclability requirements to which the company is committed. Kesko sets packaging produc- ers criteria that their packaging production must satisfy. Examples of such criteria include reducing the amount of plastic or using more lightweight materials. “We carefully consider various materials solutions. We try to look into the future and anticipate which solutions will continue to function years from now in terms of re- cyclability and waste reduction,” Luoma says. As a retailer, Kesko does not produce the products it sells or the packaging. This is handled by the manufac- turing industry, which gets the criteria for packaging ma- terial and other matters from the buyer, Kesko. The man- ufacturing industry conducts more detailed negotiations with the producer. Kesko expects its raw material suppliers to provide in- novative packaging solutions to help solve challenges re- lated to recyclability or sustainable packaging materials. Impact of legislative changes According to Luoma, Kesko receives hardly any direct requests from consumers concerning the sustainabili- ty of packaging. “Consumers are pleased we are reducing the amount of plastic in packaging. We can adopt solutions bene- ficial to the environment on their behalf and have re- ceived thanks for this.” EU’s Packaging and Packaging Waste Regulation (PPWR) will lead to significant changes in Kesko’s day- to-day operations, including the ban of single-use plas- tic packaging for less than 1.5 kilograms of fresh fruit and vegetables.

“Consumers are pleased we are reducing the amount of plastic in packaging. We can adopt solutions beneficial to the environment on their behalf”, says Tuuli Luoma from Kesko.

”We anticipate which solutions will continue to function years from now in terms of recyclability and waste reduction.”

“Harmonising legislation is a positive thing over- all because it ensures a sustainable operating model for all operators. However, there are many opinions about the details of the new regulation and their ap- propriateness,” Luoma says. Luoma emphasises that they could not achieve the targets required by regulation without working close- ly with stakeholders. •

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