Ch # 05: Product Design, Cleaner Production and Packaging

What is the background of thinking product design, cleaner production and

packaging as a tool for sustainable supply chain management?
“Growing evidence indicating that the ways supply chains manage product design, production
and packaging are among the major contributors to various environmental sustainability, health,
safety and social responsibility problems.”
The main objectives of sustainable product design, production and packaging are :
 Reducing cost while at the same time meeting product pricing strategies,
specifications and customer needs
 Maintaining compliance with health, safety and environmental legislation.
 Focusing on the amount of natural resources, energy and chemicals used
 Reducing the adverse health effects to workers,
 Minimizing the amount of pollution being discharged during the production
and usage of a product. creating systems that recycled
 Reusing products, components and materials after use. etc
Based on the natural resource-based view, Hart (1995; 1997) laid down a framework toward
sustainable development. This framework can be used to guide transformation in the ways we
manage product design, production and packaging processes.
 The first step is to achieve pollution prevention by shifting away from pollution
control. Instead of focusing on the end-of-pipe solutions to control pollution,
some companies have begun to look into the design of products and adoption of
cleaner production processes that minimize pollution and consume less energy
and fewer materials.
 In the next stage, the focus is product stewardship. In addition to minimizing
pollution from manufacturing processes in the factories, more efforts are made
to minimize the environmental impacts during the full lifecycle of a product.
 In the third stage, companies are encouraged to invest in the planning and
development of clean technologies which make the entire supply chain
sustainable
Contents of this chapter:
1. Product design for environmental and 4. Packaging for the environment
sustainable logistics 5. Sustainable consumption and logistics
2. Selection of materials
6. Regulatory frameworks
3. Cleaner production
 Product design for environmental and sustainable
logistics

Design for Environment:

It includes resource consumption and mitigation strategies for product production
which minimizes environmental and health impacts.
Four main concepts that fall under the DfE umbrella.
 Design for environmental processing and manufacturing: Raw
material extraction (mining, drilling, etc.), processing (processing reusable
materials, metal melting, etc.) and manufacturing are done using materials
and processes which are not dangerous to the environment or the employees
working on said processes. This includes the minimization of waste and
hazardous by-products, air pollution, energy expenditure and other factors.
 Design for environmental packaging: Materials used in packaging are
environmentally responsible, which can be achieved through the reuse of
shipping products, elimination of unnecessary paper and packaging
products, efficient use of materials and space, use of recycled and/or
recyclable materials.
 Design for disposal or reuse: The end-of-life of a product is very important,
because some products emit dangerous chemicals into the air, ground and
water after they are disposed of in a landfill. Planning for
the reuse or refurbishing of a product will change the types of materials that
would be used, how they could later be disassembled and reused, and the
environmental impacts such materials have.
 Design for energy efficiency: The design of products to reduce overall
energy consumption throughout the product's life.

Life-cycle assessment (LCA) is employed to forecast the impacts of different

(production) alternatives of the product in question, thus being able to choose the
most environmentally friendly. A life cycle analysis can serve as a tool when
determining the environmental impact of a product or process. Proper LCAs can
help a designer compare several different products according to several categories,
such as energy use, toxicity, acidification, CO2 emissions, ozone
depletion, resource depletion and many others. By comparing different products,
designers can make decisions about which environmental hazard to focus on in
order to make the product more environmentally friendly.

Figure 5.1 illustrates how these key principles can be applied to address
sustainability issues in five major phases of a value chain or product lifecycle:
raw materials, manufacturing (factory), transport (distribution), use, and end-of-life
management. The two sets of half circles represent regeneration and restoration;
the former represent techniques to transform end-of-life products into useful
biochemical or biofuel, and the latter represent methods to prolong, reuse,
refurbish, remanufacturer and recycle end-of-life products, their components and
materials. Figure 5.1

Why do firms want to design for the environment?

Modern day businesses all aim to produce goods at a low cost while maintaining
quality, staying competitive in the global marketplace, and meeting consumer
preferences for more environment friendly products. To help businesses meet these
challenges, EPA encourages businesses to incorporate environmental
considerations into the design process. The benefits of incorporating DfE include:
cost savings, reduced business and environmental risks, expanded business and
market opportunities, and to meet environmental regulations.

Examples of Companies and products:

 Starbucks: Starbucks is decreasing its carbon footprint by building more

energy efficient stores and facilities, conserving energy and water, and
purchasing renewable energy credits. Starbucks has achieved LEED certificates
in 116 stores in 12 countries. Starbucks has even created a portable, LEED
certified store in Denver. It is Starbucks' goal to reduce energy consumption by
25% and to cover 100% of its electricity with renewable energy by 2015.
 Hewlett Packard: HP is working towards reducing energy used in
manufacturing, developing materials that have less environmental impact, and
designing easily recyclable equipment.[8]
 IBM: Their goal is to extend product life beyond just production, and to use
reusable and recyclable products. This means that IBM is currently working on
creating products that can be safely disposed of at the end of its product life.
They are also reducing consumption of energy to minimize their carbon
footprint.
 Philips: For almost 20 years now, sustainable development has been a crucial
part of Philips decision making and manufacturing process. Philips' goal is to
produce products with their environmental responsibility in mind. Not only are
they working on reducing energy during the manufacturing process, Phillips is
also participating in a unique project, philanthropy through design. Since 2005,
Philips has been working on and developing philanthropy through design. They
collaborate with other organizations to use their expertise and innovation to
help the more fragile parts of our society.
 Design for environment goals:

Selection of materials
Why Selection of materials for product design is a challenging task?
 Most of the essential raw materials we use are infinite resources. Materials
such as anthracite, bauxite, beryllium, chrome, coal, cobalt, diamonds, gold,
indium, iron, manganese, nickel, platinum, silicon, silver, titanium,
vanadium, water, crude oil, and natural gas are crucial for human life. Some
of them are still abundant but others are not. They will all one day become
rare if they cannot be reused and recycled. Thus, the use of recycled
materials helps reduce environmental damage.
 The mining of minerals such as tantalite (coltan), cassiterite (tin), gold and
wolframite (tungsten) in the Democratic Republic of the Congo or adjoining
countries is known to be used to finance conflicts. That’s why they are
 called Conflict Minerals. Similarly, in diamond supply chains there are
Conflict Diamonds or Blood Diamonds.

 Materials such as arsenic, mercury, lead and phthalates that are used for
making electronic devices are now being phased out by many manufacturers
because they are hazardous to human beings and the environment during the
production or disposal processes

 Manufacturing technologies used to process different raw materials may

consume large amounts of water and energy,

 Produce large amounts of air, liquid and solid emissions.

There are many types of hazardous substances:

 explosives
 flammable substances
 oxidizing agents and peroxide
 toxic substances
 substances causing diseases
 radioactive substances
 mutant-causing substances
 corrosive substances
 irritating substances
 other substances, chemical or otherwise, which may cause injury to
human beings, animals, plants, property, or environments

Here , in the next page, provides a list of selected hazardous substances, most of
which are identified by the essential directives and regulations on hazardous
substances. Some of them are highly hazardous materials, which should be
avoided. Some of them are banned in some countries but could be allowed in
others.
How to avoid or minimize the use of hazardous elements in product?

 Driven by regulations and/or sustainable development ambitions, most

manufacturers have now established a list of banned and restricted materials,
and another list of preferred materials. Proactive manufacturers such as HP and
Dell have been updating a hazardous material watch list and assessing materials
for future phase-out beyond the mandatory regulations.
 Many manufacturers nowadays specify their own supplier codes of conduct.
There is also a need for an effective and integrated information system which
facilitates the application and compliance of the material list so that the
companies can design out hazardous and environmentally damaging substances
as well as reducing the consumption of energy and other natural resources.
 The design of products which favour cleaner, reusable and recyclable materials
requires knowledge about a lot of materials and regulations. For example, there
 are 58 families and over a thousand different grades of plastic used for different
applications.
 Due to advancements in science and technology, the list of raw material is
growing. Some of the more recent raw materials being considered are, for
example, metal matrix, advanced composites, nano-materials, speciality
polymers, flexible ceramics, and memory metal.
 In the textile industry, it is desirable to use materials for making fabrics that are
free of carcinogens, mutagens, persistent toxins, heavy metals, endocrine
disrupters and bioaccumulatives. Such fabrics are compostable and can be
safely return to the earth at the end of their useful life.
 However, there is a need to consider the cost and feasibility of obtaining a
constant supply of such fabrics. It can be difficult for non-technical logisticians
and supply chain professionals to comprehend such scientific knowledge.
Below is a table that depicts different approaches to integrated product policy and
eco-product development.
In terms of the selection of material for designing sustainable products, there are
several useful guidelines for logistics and supply chain professionals. One may
refer to databanks for hazardous substances, for example:

 Hazardous Substances Data bank, United States National Library of

Medicine (http://toxnet.nlm.nih.gov/).
 Priority list of hazardous substances, Agency for Toxic Substances and
Disease Registry, (ATSDR) (http://www.atsdr.cdc.gov/).
 List of materials from Lenneth (http://www.lenntech.com/periodic/
elements/f.htm).
 List of material subjected to several regulations in the United States,
Environmental Protection Agency (http://www3.epa.gov/).
 Other material selection criteria and tools such as Okala Ecodesign,
Cambridge Materials Selector Software, etc.

Cleaner production

One of the most commonly used definitions of cleaner production is that of the
United Nations Environment Programme (UNEP):

Cleaner production is the continuous application of an integrated preventive

environmental strategy applied to processes, products, and services to increase
eco-efficiency and reduce risks to humans and the environment.

Figure 5.2 illustrates the main principles of cleaner production and explains
how cleaner production contributes to cost efficiency, revenue and better
environmental performance. Cleaner production attempts to improve the efficient
use of energy and water consumption and raw materials, and prevent undesirable
pollution during the production processes and the delivery of the product and
services to customers. Cleaner production also seeks to optimize the reuse and
recycling of hazardous and non- hazardous materials by embracing a value-chain
lifecycle approach.
  To implement cleaner production there is a need to understand the following
concepts:

Eco-efficiency. Coined by the World Business Council for Sustainable

Development in 1992, the term ‘eco-efficiency’ is defined as: ‘the delivery of
competitively priced goods and services that satisfy human needs and bring quality
of life, while progressively reducing ecological impacts and resource intensity
throughout the lifecycle, to a level at least in line with the earth’s estimated
carrying capacity.’ Eco-efficiency means producing more goods and services with
less energy and fewer natural resources. Eco-efficient businesses get greater value
out of their raw materials as well as producing less waste and less pollution.
Waste minimization. Introduced by the United States Environmental Protection
Agency (EPA) in 1988, waste minimization means the use of a waste-prevention
approach focusing on on-site reduction of waste at source by changes in the input
of raw materials, technology, operating practices and product design, and off-site
recycling by direct reuse after reclamation.

Zero waste. Zero waste is a way to set targets for waste minimization. It means no
waste is sent to the landfill. It is a philosophy that encourages the redesign of
product/resource lifecycles so that their production processes produce no waste, or
new techniques are used to transform all waste into recycled materials, energy or
something useful.

Pollution prevention. According to the United States Environmental Protection

Agency (EPA), pollution prevention is about source reduction. It is about
preventing or reducing waste where it originates, at source. This also includes
conservation of natural resources through increased efficiency in the use of raw
materials, energy, water and land. Pollution prevention is part of the national
environmental policy of the United States (EPA, 1990).

Green productivity. Similar to cleaner production, green productivity is a strategy

for enhancing productivity and environmental performance in order to improve
overall socio-economic development. Green productivity is used by the Asian
Productivity Organization (APO) to address the challenge of achieving sustainable
production. Resource efficiency is another term of similar meaning used for
example by the European Commission.

Industrial symbiosis. Industrial symbiosis is a form of eco- industrial development

which applies the concept of industrial ecology to allow by-product resources (eg
waste, heat and water) produced by one industry to be used by other industries. It
focuses on energy and material exchange. It promotes the sharing of information,
services, utility and by-products among one or more industries in order to add
value, reduce cost and improve environmental performance.
 General principles of cleaner production

Cleaner production emphasizes the application of ‘integrated’ and ‘preventive’

systems instead of the typical end-of-pipe solutions. General principles of cleaner
production can be applied to the entire production cycle:

 Reduce the consumption of raw materials and energy used in the production
of one unit of product;
 Increase productivity by ensuring a more efficient use of raw materials,
energy and water;
 Promote better environmental performance through reduction at source of
waste and emissions;
 Reduce the environmental impact of products throughout their lifecycle by
the design of environmentally friendly but cost-effective products;
 Reduce at source the quantity and toxicity of all emissions and wastes
generated and released;
 Eliminate as far as possible the use of toxic and dangerous materials.

Taking the above fundamental principles to a practical level, companies can

establish principles of cleaner production themselves. For example, the following
are the typical principles for cleaner agricultural production:

 Minimize the harmful impact of crop protection practices;

 Minimize the harmful impact of crop growth stimulating practices;
 Use water efficiently and care for the long-term availability of water;
 Care about the health of the soil;
 Conserve natural habitats;
 Care for and preserve the quality and health effects of the produce;
 Reuse and recycle packaging materials;
 Promote decent work and fair labour practices.
 Cleaner production and scientific innovation
Cleaner production can be achieved through technology innovation. The following
are some examples of innovation solutions for cleaner production in the textile
dyeing process:
●To improve the techniques of purifying waste water discharged by the textile
dyeing process, a Swedish researcher named Maria Jonstrup experimented with
both fungal enzymes and bacteria from the drains at textile and municipal
wastewater-treatment plants. She combined both biological and chemical
purification techniques and collaborated with a Swedish clothing company, Indiska
Magasinet, and its suppliers to test the new technique on a large scale.
● In 2012, A Dutch Company called DyeCoo commercialized a machine to use
carbon dioxide instead of water on an industrial scale to dye polyester. The fabrics
dyed in this process, called Drydye fabrics, have the same quality as those
conventionally dyed, but use no water. The process halves the consumption of
energy and chemicals. Global brands such as Nike and Adidas have forged a
partnership with the company; a Taiwanese contract manufacturer for Nike started
using DyeCoo technology in 2013.
● In 2012, a Company called ColorZen developed a treatment which changes
cotton’s molecular composition, making it more receptive to dye without creating
toxic discharge. They tested this formula on about 400 pounds of cotton fibre,
successfully dyeing it with 95 per cent fewer chemicals, 90 per cent less water, 75
per cent less energy, and 50 per cent less dye in less than one-third of the standard
eight hours.
● A company called Novozymes, which specializes in developing enzymes for
making products such as food, laundry detergents, bio-energy products, agri-food
products and pharmaceutical products, received an innovation award by the
Society of Dyers and Colourists (SDC) in 2014 for their patented Combi process,
which uses neutral cellulases rather than acidic cellulasas to make it possible for
textile manufacturers to combine biopolishing and bleach clean-up processes in the
dying step. These new processes save time, water, energy and ultimately costs.
 Packaging for the environment

Packaging is the science, art and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to the process of
designing, evaluating, and producing packages. Packaging can be described as a
coordinated system of preparing goods for transport, warehousing, logistics, sale,
and end use. Packaging contains, protects, preserves, transports, informs, and
sells. In many countries it is fully integrated into government, business,
institutional, industrial, and personal use.

 Globally, the packaging industry has a turnover of around US $5000 billion

(World Packaging Organization, 2012).
 Packaging is required for practically all goods such as food, beverages,
healthcare, cosmetics, electronics, clothing, etc.
 For some beverage products, packaging is actually the most expensive part.
 The packaging of goods is typically made of materials such as glass, plastic,
paper, cardboard, metal and wood.
o Glass is used typically for beverages and liquids
o Papers are used for light goods, and corrugated cardboards can be
used for heavier goods.
o Woods are typically used to make crates and pallets,
o Metal cases and tanks are suitable for containing and transporting bulk
products.
 Packaging is very important for supporting production, logistics, supply
chain and marketing activities because it protects goods, allows goods to be
contained and transported in a standard unit of loading (eg cartons, pallets
and containers), and it also allows marketers to provide essential information
about the goods to customers.
 Paper and cardboard are among the most popular packaging materials, but
there is an increasing trend to use plastic as a packaging material.
 Since plastic is light in weight it reduces both the weight of transported
goods and the amount of packaged goods that go to waste, both of which
reduce CO2 emissions.
The purposes of packaging and package labels

Packaging and package labeling have several objectives

 Physical protection – The objects enclosed in the package may require
protection from, among other things,
mechanical shock, vibration, electrostatic discharge,
compression, temperature, etc.
 Barrier protection – A barrier to oxygen, water vapor, dust, etc., is often
required. Permeation is a critical factor in design. Some packages
contain desiccants or oxygen absorbers to help extend shelf life. Modified
atmospheres or controlled atmospheres are also maintained in some food
packages. Keeping the contents clean, fresh, sterile[20] and safe for the
duration of the intended shelf life is a primary function. A barrier is also
implemented in cases where segregation of two materials prior to end use is
required, as in the case of special paints, glues, medical fluids, etc.
 Containment or agglomeration – Small objects are typically grouped
together in one package for reasons of storage and selling efficiency. For
example, a single box of 1000 marbles requires less physical handling than
1000 single marbles. Liquids, powders, and granular materials need
containment.
 Information transmission – Packages and labels communicate how to use,
transport, recycle, or dispose of the package or product.
With pharmaceuticals, food, medical, and chemical products, some types of
information are required by government legislation. Some packages and
labels also are used for track and trace purposes. Most items include
their serial and lot numbers on the packaging, and in the case of food
products, medicine, and some chemicals the packaging often contains
an expiry/best-before date, usually in a shorthand form. Packages may
indicate their construction material with a symbol.
 Marketing – Packaging and labels can be used by marketers to encourage
potential buyers to purchase a product. Package graphic design and physical
design have been important and constantly evolving phenomena for several
decades. Marketing communications and graphic design are applied to the
surface of the package and often to the point of sale display. Most packaging
 is designed to reflect the brand's message and identity on the one hand while
highlighting the respective product concept on the other hand.

 Security – Packaging can play an important role in reducing

the security risks of shipment. Packages can be made with improved tamper
resistance to deter manipulation and they can also have tamper-evident
features indicating that tampering has taken place. Packages can be
engineered to help reduce the risks of package pilferage or the theft and
resale of products: Some package constructions are more resistant to
pilferage than other types, and some have pilfer-indicating seals. Counterfeit
consumer goods, unauthorized sales (diversion), material substitution and
tampering can all be minimized or prevented with such anti-counterfeiting
technologies. Packages may include authentication seals and use security
printing to help indicate that the package and contents are not counterfeit.
Packages also can include anti-theft devices such as dye-packs, RFID tags,
or electronic article surveillance tags that can be activated or detected by
devices at exit points and require specialized tools to deactivate. Using
packaging in this way is a means of retail loss prevention.
 Convenience – Packages can have features that add convenience in
distribution, handling, stacking, display, sale, opening, reclosing, using,
dispensing, reusing, recycling, and ease of disposal
 Portion control – Single serving or single dosage packaging has a precise
amount of contents to control usage. Bulk commodities (such as salt) can be
divided into packages that are a more suitable size for individual households.
It also aids the control of inventory: selling sealed one-liter bottles of milk,
rather than having people bring their own bottles to fill themselves.
 Branding/Positioning – Packaging and labels are increasingly used to go
beyond marketing to brand positioning, with the materials used and design
chosen key to the storytelling element of brand development. Due to the
increasingly fragmented media landscape in the digital age this aspect of
packaging is of growing importance.
Packaging types

Various types of household packaging for foods

Packaging may be of several different types. For example, a transport
package or distribution package can be the shipping container used to ship, store,
and handle the product or inner packages. Some identify a consumer package as
one which is directed toward a consumer or household.
Packaging may be described in relation to the type of product being
packaged: medical device packaging, bulk chemical packaging, over-the-counter
drug packaging, retail food packaging,
military materiel packaging, pharmaceutical packaging, etc.
It is sometimes convenient to categorize packages by layer or
function: primary, secondary, etc.

 Primary packaging is the material that first envelops the product and holds it.
This usually is the smallest unit of distribution or use and is the package
which is in direct contact with the contents.
 Secondary packaging is outside the primary packaging, and may be used to
prevent pilferage or to group primary packages together.
 Tertiary or transit packaging is used for bulk handling, warehouse storage
and transport shipping. The most common form is a palletized unit load that
packs tightly into containers.

These broad categories can be somewhat arbitrary. For example, depending on the
use, a shrink wrap can be primary packaging when applied directly to the product,
secondary packaging when used to combine smaller packages, or tertiary
packaging when used to facilitate some types of distribution, such as to affix a
number of cartons on a pallet.
Packaging can also have categories based on the package form. For
example, thermoform packaging and flexible packaging describe broad usage
areas.

Labels and symbols used on packages

A bar code on a tin of condensed milk

Many types of symbols for package labeling are nationally and internationally
standardized. For consumer packaging, symbols exist for product certifications
(such as the FCC and TÜV marks), trademarks, proof of purchase, etc. Some
requirements and symbols exist to communicate aspects of consumer rights and
safety, for example the CE marking or the estimated sign that notes conformance to
EU weights and measures accuracy regulations. Examples of environmental and
recycling symbols include the recycling symbol, the recycling code (which could
be a resin identification code), and the "Green Dot". Food packaging may
show food contact material symbols. In the European Union, products of animal
origin which are intended to be consumed by humans have to carry standard, oval-
shaped EC identification and health marks for food safety and quality insurance
reasons.
Bar codes, Universal Product Codes, and RFID labels are common to allow
automated information management in logistics and retailing. Country-of-
origin labeling is often used. Some products might use QR codes or similar matrix
barcodes. Packaging may have visible registration marks and other printing
calibration and troubleshooting cues.

“Technically, all packaging materials can be reused, recycled or recovered.

However, packaging is also one of the main waste streams which could harm
the environment, if not properly managed”

Environmental considerations of Packaging / Sustainable Packaging:

Package development involves considerations of sustainability, environmental
responsibility, and applicable environmental and recycling regulations. It may
involve a life cycle assessment[30][31] which considers the material and energy
inputs and outputs to the package, the packaged product (contents), the packaging
process, the logistics system,[32] waste management, etc. It is necessary to know the
relevant regulatory requirements for point of manufacture, sale, and use.
The traditional “three R’s” of reduce, reuse, and recycle are part of a waste
hierarchy which may be considered in product and package development.

 Prevention – Waste prevention is a primary goal. Packaging should be used

only where needed. Proper packaging can also help prevent waste. Packaging
plays an important part in preventing loss or damage to the packaged product
(contents). Usually, the energy content and material usage of the product being
packaged are much greater than that of the package. A vital function of the
package is to protect the product for its intended use: if the product is damaged
or degraded, its entire energy and material content may be lost.
 Minimization (also "source reduction") – The mass and volume of
packaging (per unit of contents) can be measured and used as criteria for
minimizing the package in the design process. Usually “reduced” packaging
also helps minimize costs. Packaging engineers continue to work toward
reduced packaging.[33]
 Reuse – Reusable packaging is encouraged.[34] Returnable packaging has
long been useful (and economically viable) for closed loop logistics systems.
Inspection, cleaning, repair and recouperage are often needed. Some
 manufacturers re-use the packaging of the incoming parts for a product, either
as packaging for the outgoing product[35] or as part of the product itself.[36]
 Recycling – Recycling is the reprocessing of materials (pre- and post-
consumer) into new products. Emphasis is focused on recycling the largest
primary components of a package: steel, aluminum, papers, plastics, etc. Small
components can be chosen which are not difficult to separate and do not
contaminate recycling operations. Packages can sometimes be designed to
separate components to better facilitate recycling.
 Energy recovery – Waste-to-energy and Refuse-derived fuel in approved
facilities make use of the heat available from incinerating the packaging
components.
 Disposal – Incineration, and placement in a sanitary landfill are undertaken
for some materials. Certain US states regulate packages for toxic contents,
which have the potential to contaminate emissions and ash from incineration
and leachate from landfill. Packages should not be littered.
Development of sustainable packaging is an area of considerable interest
to standards organizations, governments, consumers, packagers, and retailers.
Sustainability is the fastest-growing driver for packaging development, particularly
for packaging manufacturers that work with the world's leading brands, as their
CSR (Corporate Social Responsibility) targets often exceed those of the EU
Directive.
Principles for environmentally friendlier packaging
The following principles for environmentally friendlier packaging design,
production and commercialization are particularly aimed at manufacturers. These
principles form part of the EU directive for packaging and packaging waste
(94/62/EC).
● Use minimum packaging volume and weight as long as it meets minimum
adequate amount to maintain the necessary levels of safety and hygiene acceptable
for the packaged product and for the consumer. Packaging shall be designed,
produced and commercialized for reuse, recovery, recycling and to minimize its
impact on the environment when being disposed of.
● Packaging shall be produced so that the presence of noxious and other hazardous
substances as constitute the packaging material be minimized when they are being
incinerated or land filled.
●Packaging designed for the energy recovery option shall have a minimum inferior
calorific value to allow optimization of energy recovery.
●Packaging designed for composting shall be biodegradable so that it should not
hinder the separation collection and the composting process.
● Biodegradable packaging shall be capable of undergoing physical, chemical,
thermal or biological decomposition so that the finished compost ultimately
decomposes into carbon dioxide, biomass and water.

In order to make the packaging materials lighter and yet strong enough to
contain goods (being functional), research and technology developments are used
to strengthen existing packaging materials. Lighter corrugated cardboard is an
example. Others look into issues related to over-packaging for online business.
Another very important development is the use of recycled packaging materials
and labeling to facilitate recycling

Sustainable consumption and logistics

The definition proposed by the Oslo Symposium on Sustainable Consumption in

1994 refers to sustainable consumption as "the use of services and related products
which respond to basic needs and bring a better quality of life while minimizing
the use of natural resources and toxic materials as well as emissions of waste and
pollutants over the life cycle of the service or product so as not to jeopardize the
needs of future generations.
Sustainable consumption (sometimes abbreviated to "SC") is the use of material
products, energy and immaterial services in such a way that their use minimizes
impacts on the environment, so that human needs can be met not only in the
present but also for future generations. Consumption refers not only to individuals
and households, but also to governments, business, and other institutions.
Sustainable consumption is closely related to sustainable production and
sustainable lifestyles. "A sustainable lifestyle minimizes ecological impacts while
enabling a flourishing life for individuals, households, communities, and beyond. It
is the product of individual and collective decisions about aspirations and about
satisfying needs and adopting practices, which are in turn conditioned, facilitated,
and constrained by societal norms, political institutions, public policies,
infrastructures, markets, and culture."
The United Nations includes analyses of efficiency, infrastructure, and waste, as
well as access to basic services, green and decent jobs and a better quality of life
for all within the concept of sustainable consumption. It shares a number of
common features with and is closely linked to the terms sustainable
production and sustainable development. Sustainable consumption, as part
of sustainable development, is a prerequisite in the worldwide struggle
against sustainability challenges such as climate change, resource depletion,
famines or environmental pollution.

Sustainable development as well as sustainable consumption rely on certain

premises such as:

 Effective use of resources, and minimization of waste and pollution

 Use of renewable resources within their capacity for renewal
 Fuller product life-cycles Inter-generational and intra-generational equity

Actions to promote sustainable consumption

Sustainable consumption calls for increasing efficiency in consumption, a change

in consumption patterns and the reduction of consumption. There are mandatory
government actions to promote sustainable consumption and standards for
verifying energy efficiency as well as voluntary sustainability-related standards
such as those that limit energy use for manufacturers.

 Manufacturers of household products such as refrigerators, air conditioners,

washers and dryers, heating, ovens and lighting are nowadays required to
conform to energy efficiency standards and labels. Additional labels are
added to guide consumers in terms of their recycling obligations and to
encourage greater participation in the collection and recycling of products.
Governments are also encouraged to use taxes and charges to raise the prices
of less sustainable products.

 Taxes and charges are not set at a level high enough to change
consumer decision behaviors. Taxes and charges can be used to limit car
 missions (eg congestion charges, road tax), household energy use, water use,
and household waste as well as to reduce the consumption of tobacco and
alcohol. Alternatively, subsidies and incentives have been used to encourage
the purchase and use of more energy-efficient vehicles, solar panels, solar
and thermal water heaters and even separation and recycling of waste.

 Some manufacturers have put more investment in R&D to develop new

products that consume less energy and water during use. This initiative can
be explained by the natural resource-based view (Hart, 1995). When a
company develops new and greener products it also develops new standards
that can be used as a competitive weapon.

 Another approach some companies apply is to produce durable products to

prolong their lives and avoid wastage. For most companies, this is a rather
controversial business or product strategy. Producing and selling more
durable products could mean the reduction of sales volume even though the
products can be sold at higher prices. Price premium owing to durability
does not always appeal to consumers.

For example, fast fashion is a business model that relies on selling large quantities
of cheap and less-durable clothing in a way that opposes to the idea of sustainable
consumption. Patagonia, a company that sells clothing, aims to build the best
products that cause no unnecessary harm, and uses such a business model to
inspire and implement solutions to the environmental crisis. Some of its clothing is
produced by incorporating recycled materials whenever possible and some clothing
is made more durable. Their famous 2011 advert, ‘Don’t buy this jacket’, explains
the possibility of ‘environmental bankruptcy’ owing to the shortage of water,
topsoil, fisheries and wetlands as the natural systems that are fundametally the
main supports of businesses. The advertisement explains that one of Patagonia’s
best-selling jackets consumed 135 litres of water, enough to meet the daily needs
of 45 people. Even though the jackets were made of 60 per cent recycled polyester
there are still significant environment impacts, where two-third of its weight ended
up in waste. The advertisement explains that the jackets were made exceptionally
durable and therefore do not need replacing as often. The advertisement was part
of the launch of an initiative called the Common Threads Initiative, which
promotes reduce, repair, reuse and recycle. By promoting ‘buy less, buy used’, the
initiative also allows consumers to sell used Patagonia products through eBay.
  However, there are still products where durability or prolonged use do not
appeal, as they may seem unaffordable, or consumers are unaware. High-
tech devices such as mobile phones are phased out frequently by the
introduction of new echnologies in order for manufacturers to compete with
each other for market share. This means that while the devices can be
designed for recycling, refurbishment, remanufacturing and reuse, there
is a need for effective collection schemes that encourage collection by
offering lease, buy-back and deposit options.
.
There is still a need to consider nature’s biological metabolism as a way to develop
a technical metabolism flow of industrial materials. There is therefore a need to
consider cradle-to-cradle design concepts that eliminate waste altogether. Waste
equals food and energy. That means industrial leaders should create and participate
in systems to collect and recover the value of all materials following their use.

Regulatory framework

Why logistics and supply chain professionals need to understand the legislation
frameworks related to product design, production and packaging?

There has been an ongoing debate about the value of regulations. Some companies
view regulations as additional costs, while others argue they are necessary.
Alternatively, there is a famous hypothesis that challenges the notion that tough
environmental regulations imply additional costs that harm competition. It is called
the Porter Hypothesis. This hypothesis suggests that stricter environmental
regulations in the form of economic incentives can create a win-win situation that
drives innovation that may create competitiveness in the market. Such
competitiveness may outweigh the initial or short-run costs of the regulations. By
moving managerial attention from trading off between environmental costs and
other economic factors to compliance with strict regulations, companies will
eventually develop breakthrough technologies that significantly improve
environmental performance while creating new competitive advantages in the
products. While there is still no widespread evidence supporting the Porter
Hypothesis, the UN and many governments are developing and imposing new and
stricter regulations following their commitments to various environmental
improvement targets. Therefore, logistics and supply chain professionals need to
understand the legislation frameworks related to product design, production and
packaging. At a global level, the Basel Convention, Rotterdam Convention,
Stockholm Convention, Kyoto Protocol and Marrakesh Accords are highly
instrumental in setting up legislation frameworks for the application and trans-
boundary movements and environmental sound management of hazardous and
other waste. Some of the earlier legislations established during the 1980s focus
mostly on the controlled use of those highly hazardous substances and the control
of pollution. Nowadays there are also regulations or certifications that can be
adopted voluntarily.

The following are some of the essential regulations.

 Voluntary regulations

Organizations may choose to adopt standards or certifications voluntarily, for

example, EU Ecolabel, certifications of treatment facilities for electronic waste and
recyclate streams, recycling schemes, Product Environmental Footprint (PEF) and
Organizational Environmental Footprint (OEF). In 2011, the European
Commission (EC) recommended the use of PEF and OEF. These are based on
common and harmonized methods to measure and communicate the lifecycle
environmental performance of products and organizations. They can be used to
evaluate environmental footprints based on a multi-criterion, supply-chain-wide,
lifecycle assessment paradigm (ISO 14040/44) covering raw materials,
manufacturing, repair and eventually disposal. The PEF/OEF methodologies have
been tested during 2013–2016 to develop category rules suitable for different
industrial sectors.
 Eco-design directive
Eco-design means taking into account the environmental impacts of a product
right at the early stage of design. It helps coordinate product design and planning
so that the attempt to eliminate a toxic substance does not compromise energy
consumptions during material extraction, production and recycling. The Eco-
design of Energy Related Products Directive 2009/125/EC is a framework
directive which primarily focuses on energy in use (http://ec.europa.eu/). It does
this by setting minimum requirements for certain energy-consuming products.
  Restriction of the use of certain hazardous substances (RoHS)
Computers, laptops, monitors, mobile phones, tablets, and other electronics contain
certain amounts of lead, cadmium, chromium, PBB and PBDE. Owing to the
increasing speed of new product introduction there are also more obsolete products
being discarded, ending up in landfills, or in countries like China, Pakistan, and
other third-world countries for recycling. People (both adults and children)
collecting and recycling such e-waste have been found to be poisoned by the above
heavy metals. These problems become the main drivers for the need for the RoHS
and WEEE directives.
 Registration, Evaluation, Authorization and Restriction of Chemicals
(REACH)
REACH is the European Community regulation on chemicals and their safe use.
REACH aims to improve the protection of human health and the environment
through the better and earlier identification of the intrinsic properties of chemical
substances. REACH also aims to enhance the innovation and competitiveness of
the EU chemicals industry. Under this regulation, the industry is given greater
responsibility for managing the risks from chemicals and for providing safety
information on the substances.
 Regulations on packaging and packaging waste
The 94/62/EC Directive on packaging and packaging waste is a single market
measure with environmental goals. The Directive applies to all packaging placed
on the market within the EU, and all packaging waste – whether disposed of at
industrial or commercial sites, or from private homes. ‘Packaging’ means all
products made of any materials of any nature to be used for the containment,
protection, handling, delivery and presentation of goods, from raw materials to
processed goods, from the producer to the user or the consumer. ‘Non-returnable’
items used for the same purposes shall also be considered to constitute packaging.
In principle, the directive promotes:

 packaging to be minimized;
 packaging to be designed for recovery and re-use;
 recovery targets to be met by the UK for waste packaging;
 heavy metals in packaging to be restricted.

There are three essential requirements of the directive:

  packaging volume and weight must be the minimum amount needed to
maintain the necessary levels of safety, hygiene and acceptance for the
packed product and for the consumer;
 packaging must be manufactured so as to permit reuse or recovery in
accordance with specific requirements;
 noxious or hazardous substances in packaging must be minimized in
missions, ash or leakage from incineration or landfill.

The UK, for example, has established the Producer Responsibility Obligations
(Packaging Waste) Regulations 2007, which basically specifies ‘collective
producer responsibility’. It requires producers of packaging to take responsibility
for their environmental impact by paying a proportion of the cost of the recovery
and recycling of their packaging. Under this legislation, the ‘packaging supply
chain’ is divided into four activities, each with a different percentage
responsibility:

● 6 per cent for manufacturers of raw material for packaging;

● 9 per cent for converters, eg manufacturers of the packaging can, bottle, etc;
●37 per cent for packers/fillers or those who put a product into packaging
or apply packaging to a product;
● 48 per cent for sellers or those who supply the packaging to the end user
of that packaging, eg the supermarkets or wholesalers.