The introduction of RAM (recyclability assessment methodology) v1.1 represents more than just another regulatory checkbox. It’s the first time packaging recyclability has been defined for the UK, creating a fundamental shift in how packaging costs are calculated.
For forward-thinking retailers, it’s an unprecedented opportunity to gain competitive advantage while driving genuine environmental progress.
The financial reality check
Let’s be clear about what’s at stake.
From April 2026, packaging recyclability ratings will directly impact household packaging waste disposal fees through eco-modulation.
Red-rated packaging will face escalating penalties, doubling base fees by 2028/29. Critically, unassessed packaging will be automatically classified as ‘red’, meaning companies that delay or ignore RAM assessments are essentially choosing to pay the rates.
This isn’t theoretical. With a £1.5bn bill to distribute across the industry, every non-compliant producer is shifting their costs onto those who are compliant, placing an unfair burden on businesses doing the right thing.
The opportunity hidden in plain sight
But here’s where smart retailers are getting ahead: they’re not viewing RAM assessments as compliance theatre. They’re treating them as strategic intelligence gathering that reveals exactly where they should focus their packaging investments.
In simple terms, easily recyclable materials – such as clear glass jars and plain cardboard boxes – are classified as ‘green’. As disposal fees rise, these materials will become increasingly attractive to brands aiming to reduce disposal fees and improve environmental credentials.
Consider this: businesses that complete the RAM assessments early will have a comprehensive understanding of their entire packaging portfolio. The data provides a foundation for making informed investment decisions, identifying which packaging changes will deliver the greatest cost savings and environmental benefits.
It’s market intelligence that competitors won’t have if they’re treating the assessments as a last-minute box-ticking exercise.
The fee reductions available for green-rated packaging over the next three years aren’t just cost savings, they’re competitive advantages. With the methodology now stable until 2029, businesses can plan ahead with confidence; the rules may be tweaked, but won’t be pulled from under them.
Every pound saved on packaging fees can be invested elsewhere, in innovation, customer experience or market expansion.
Why timing matters
The temptation to delay RAM assessments until after the upcoming peak trading period is understandable, but strategically flawed. The February deadline gives much less time to gather the required data than many realise.
For businesses with extensive product ranges, this represents significant work that becomes exponentially more challenging when everyone else is scrambling to meet deadlines. The longer companies leave it, the less likely they are to gather accurate information.
Early movers are already identifying packaging optimisation opportunities that their competitors won’t discover until it’s too late to implement changes effectively. They’re building relationships with suppliers, securing better terms for sustainable packaging alternatives and positioning themselves as preferred partners for environmentally-conscious consumers.
Embrace the shift
This shift towards packaging accountability reflects a broader transformation in environmental and financial alignment. For decades, sustainable packaging often meant accepting higher costs. RAM assessments flip this equation, as recyclability now drives cost reduction.
Progressive retailers understand this isn’t temporary. Consumer expectations, regulatory frameworks and investor demands are all moving in the same direction. Companies that embrace this shift early will find themselves better positioned for future developments, while those that resist will face increasing pressure from multiple stakeholders.
The RAM assessment deadline might seem distant, but the strategic advantages of early action are immediate. Companies who complete assessments now gain months to analyse results, identify opportunities and implement changes.
Those that wait will be making rushed decisions with incomplete information.
This isn’t just about compliance – it’s about competitive positioning in a market where environmental performance increasingly drives financial performance. The question isn’t whether you’ll complete RAM assessments, but whether you’ll use them strategically or simply treat them as another regulatory burden.
The retailers who recognise this opportunity will emerge stronger, more efficient and better positioned for sustainable growth. The rest will simply pay more for the privilege of falling behind.
John Redmayne is MD of ERP
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