The successor to the industry’s “world-leading” Plastics Pact is facing a crisis even before it gets of the ground, after it emerged a series of the food and drink industry’s big guns are refusing to sign up.
Wrap today released the details of 55 founding members of the UK Packaging Pact, which will officially launch in April next year.
However, despite announcing it had secured the last-minute signature of Tesco, a series of major companies that helped spearhead the previous pact, including Aldi, Coca-Cola, Co-op, Morrisons, Nestlé, Sainsbury’s and Unilever, are all missing. Plastics Pact founding partner the FDF has also not signed up to the new pact.
Industry sources told The Grocer there had been what one described as a “huge barney” about the process, including its “eye-watering” fees and lack of specific targets.
The original Plastics Pact, which was the catalyst for other versions in other parts of the world, was launched at the height of public anger sparked by David Attenborough’s BBC series Blue Planet II in 2018, alongside the Ellen MacArthur Foundation.
It set out to eliminate unnecessary plastic and ensure 100% of packaging was reusable, recyclable or compostable.
While 99.8% of problematic packaging had been eliminated since the pact was launched, three of its four 2025 goals have been missed. Only 70% of plastic has been made reusable or recyclable and only 59% has been effectively recycled (compared with a target of 70%). Just 26% of packaging is made from recycled content, short of the goal of 30%.
Wrap said today the UK Packaging Pact would build on the “success” of its forerunner, but go beyond just plastics and food and drink packaging to address all packaging materials, accelerating the UK’s transition to a circular economy.
Its four goals are to optimise packaging, scale reuse and refill, support circular infrastructure investment and harmonise data.
However, it is understood there has been anything but harmony behind the scenes over the proposals, including whether they will dovetail with other industry-led flagship proposals such as the deposit return scheme.
The Grocer also revealed last month that the new pact would not include specific targets on packaging reduction, instead “offering flexibility for members to set their own KPIs in support of those goals”, with the lack of firm objectives understood to be a key issue.
‘Sky-high fees’
However, one source told The Grocer the “sky-high“ fees being charged by Wrap was also a major barrier to sign-up.
”Our view, which I know is shared by others, is it’s simply not worth the money Wrap is asking.
“The fees have gone up by astronomic levels, we are talking around 30% to 40%.
“Considering the financial backdrop, you are immediately questioning what the value is and then to add to that the fact that the previous pact did not hit its targets, it makes us question it even more.
“If it has been a success story I think we would have seen more signatures.”
The source, who said they had been quoted figures of nearly £50,000 a year to join the pact, also cited Wrap’s attitude to DRS as a reason why companies had been reluctant to put pen to paper.
“One of the aims of the previous pact was to improve recycling rates, but they have been apathetic at best on DRS.
“Meanwhile, a lot of the targets that they have drafted are TBC and its very hard to sign up to something when you don’t know what you’re signing up to “
Another major food company source told The Grocer the lack of definite targets in the pact was acting as a deterrent to companies.
“The issue is its lack of any kind of measurable firm targets. It’s very vague and hard to work out what it is they want us to do.
“That needs to be sorted out before we sign up to a 10-year commitment.
“It’s really expensive to join, and it doesn’t seem to add much value in the world of EPR,” added another leading source.
“Companies are spending lots of money and resource on that, so adding other data reporting requirements etc doesn’t seem to do much. The previous pact was useful, but that was pre-EPR.”
However, Wrap CEO Catherine David said that with its whole supply chain approach bringing together academics, SMEs, innovators, retailers, fmcg brands and recyclers, the pact could achieve “collective” progress on plastic, where “bold action” was needed.
“Collaboration works and it’s delivering real change,” she said. “Unrecyclable black plastic is gone, recycling is rising, and unnecessary packaging is disappearing.
“But the scale of the challenge demands more. Plastic pollution remains a global crisis, and with the failure to secure a global treaty, the need for bold, systemic action has never been greater.
“We must accelerate the step-change to circular living, driving reuse, tackling plastic film, and enabling the impact of upcoming recycling reforms. This is collective action at its most ambitious and essential, and Wrap is proud to lead the charge toward a truly circular future.”
Jeremy Blake, PackUK CEO, said: “PackUK is pleased to support the UK Packaging Pact. This ambitious initiative represents the collaborative approach we need to drive real, lasting change. No single organisation can solve the packaging challenge alone – but by pooling expertise and insights across industry and government, we can break down the barriers and accelerate the shift to truly circular packaging at scale.
Circular economy minister Mary Creagh added: “Government and businesses must ensure packaging is used time and time again. Our new extended producer responsibility scheme will turbocharge this shift to more sustainable packaging. I pay tribute to the 55 world-leading companies who have signed up to the UK Packaging Pact and pledged to go further and faster in delivering greener packaging.”
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