Sustainability Perspectives: Unpacking PPRW requirements with Constantia Flexibles

0:07So we have the guidelines, but we do not have more clarification on the recyclability performance grades yet. Yet we should not use that as a reason to wait.

0:27Hello and welcome to the latest edition of our Sustainability Perspectives podcast. My name is Elisabeth Skura and I'll be your host today. So the PPWR has become applicable on August 12th, but this date is just the first step in a process with further detailed requirements covering things like reuse, refill, recyclability, recycled content and compostable packaging coming into force between now and 2030 and beyond. So yeah, there is still a lot to unpack around PPWR requirements and on how to tackle this evolving regulatory framework. So today I'm very pleased to welcome Martina Schildendorfer to our podcast.

1:11She is Innovation and Product Sustainability Manager at Constancia Flexibles. And yeah, I'm really happy to have her here to share her insights on this subject. Welcome to the podcast, Martina. Great to have you here. Thank you very much, Elisabeth, for the invitation. Glad to be here. Great. So to get us started, I wanted to ask you, could you tell me a bit more about yourself and your role at Constancia Flexible, sort of combining innovation and sustainability? Sure, absolutely. So my role, as you mentioned, is Innovation and Product Sustainability Manager. I have been with Constantia Flexibles for three years now, and I'm located in the headquarters in Vienna.

1:52So my role is to bring some light into the darkness of sustainability. At the moment, there are a lot of PPWR-related questions, as you can imagine, both from our colleagues and from customers. So I try to help both with product-related sustainability questions. As we obviously all know, the PPWR has become applicable. How would you assess Constancia Flexible's readiness and also that of the industry at large? I would say we are PPWR ready. In fact, we've been preparing for many of these requirements for more than a decade now. We are strongly aligned with the PPWR goals like recyclability, recycled content, and resource efficiency through down gauging.

2:45But if you mention full PPWR compliance, it's still a bit early to talk about that because some very important rules and details are still being defined over secondary legislation over the next years. When you talk about industry, the industry at large, I think the direction, the general direction is quite clear. And a big part of the industry is committed, but the challenge is that some of the rules are still being defined. So what we do is at Constancia Flexibles, we are working closely with organizations along the value chain like CE Flex, FPE or Recyclus or Forever Green to help shape the future of sustainable packaging.

3:35Building on that, are there any product development milestones on the path to PPWR readiness that you would like to talk about? I would like to highlight three areas. So first of all, that's our 360 degree approach. So we try to focus on materials, various materials, not just one. So we have solutions across aluminum, film and paper. Then second, our ecolusions portfolio. So that are monomaterial laminates, which are already designed for recycling, like our Ecolam and EcoVare for the polyolefins and EcoAlu and EcoPaper. And third, I'd like to mention our progress integrating recycled content in flexible packaging.

4:24So that is possible. And all of that combined with our efforts in down gauging, these developments have already put us in a very strong position towards PPWR. That leads me to the question, how are you supporting your customers so that they can get ready for PPWR their end? We support our customers with our eCollusions portfolio and by working closely with them to develop packaging solutions that are aligned with the PPWR requirements. So we provide technical expertise, we provide technical documentation designed for recycling guidance and ongoing support as the regulatory framework continues to evolve.

5:13But what I would like to highlight here is that these conversations are not just one sided. While we support our customers, we also learn from their questions, from their challenges, from their sometimes interpretations of PPWR requirements. So that mutual exchange is extremely valuable to us. I'd like to get a bit more into the nitty gritty of the PPWR and look a bit more on the individual regulations. And, yeah, starting with what is the current status on recyclability requirement outlined in the PPWR? Yeah. So the PPWR sets clear recyclability targets. packaging will need to achieve recyclability performance a grade of at least 70 percent by 2030 and 80 percent by 2038.

6:09We already see some progress with the first design for recycling guidelines being developed and already published, yet an important piece of the puzzle is still missing. So we don't yet have the secondary legislation that will define exactly how these recyclability performance will be measured. So basically saying which recyclability grade packaging will receive. So we have the guidelines, but we do not have more clarification on the recyclability performance grades yet. Yet we should not use that as a reason to wait. So the overall direction is clear and we can already start identifying packaging structures that are and will be difficult to recycle.

6:57For example, like a PET, aluminum PE structure. We can already now explore better alternatives for this, even though certain tiny or smaller details will only be defined over the next year or years. Another aspect that I see along the value chain is that everyone at the moment is getting familiar with the future roles and responsibilities. So PPWR defines clear roles and everybody is still getting familiar with that, like which role do I have? What will my responsibilities be? For example, as a packaging supplier, we will provide the technical documentation needed to support compliance, whereas the declaration of conformity, So the DOC, that remains the responsibility of the manufacturer, as they are defined in the PPWR, that is the company placing the packaging on the market.

7:59So usually the brand owner. When are you expecting or when do you think we can see more clarity through this secondary legislation that you mentioned? Yeah, we expect the secondary legislation and important clarifications to arrive in stages. So, for example, the methodology for recycled plastic content calculation, that is expected in this year. We will see if that happens. While the recyclability performance grades, they are expected by 2028. But it can still be that until then, we will see some drafts already being published that give us some basic guidance. So I think businesses can already prepare now, but some technical details will continue to evolve over the coming years.

8:51Similarly, I wanted to get your take on the situation with PCR requirements as well. What's your take there? Yes, the PCR targets are already defined. for example for the contact sensitive packaging so that is food packaging 10 % as of 2030 and 25 % as of 2040 but we are still waiting for more detailed rules on exactly how recycled content will have to be calculated. Also one of the big challenges here I think will be availability especially of food contact materials, so recycled content for food contact applications, because that availability is still quite limited today. The good news is that we have already secured mechanical and chemical recycled materials, and we have successfully implemented first projects with customers.

9:53So to give you some examples here, for example, we have replaced a multi-layer PETPE pouch for dishwasher taps in a first step with a mono PE solution. And in a second step, we have included 30 % of mechanically recycled content there. And the second example that I can give you is pillow packs or flow packs for food contact applications where we have used chemically recycled content. So both is possible. So while some regulatory details are still being finalized, there's no need to wait. And we recommend to start testing now. Just if you imagine like with a marathon, you cannot just train on race day.

10:42You have to do that before. So we also encourage our customers to start testing now already. And the companies that start running trials today will be much better prepared when the requirements become mandatory in the future. I wanted to zoom out a bit and talk about something that's come up recently. Obviously, CEOs of some companies signed a letter asking for PPWR deadlines to be pushed back until further clarification was given. And other companies, including Constancia Flexible, signed a joint call to not reopen the PPWR. I wanted to get your thoughts on this. So I do understand why some companies are asking for more clarity, because there are still technical questions that need to be addressed, definitely.

11:31But I do believe that the PPWR gives us an important common framework and the predictability companies need to invest in innovation, in recycling, in circular solutions. So the key is now to implement the PPWR as agreed and provide clear, timely, secondary legislation. That's where the remaining details can be clarified. And what's important to me is that we shouldn't lose momentum. So the transition to a circle economy is already on the way. And we need to keep our pace forward while giving businesses the guidance that they need. basically the guidance that we all need. And yeah linked to this how likely do you think it is that the PPWR deadlines will be moved or watered down or are you optimistic it will sort of stay on track and go well basically?

12:29Yeah well I think some adjustments to timelines or implementation details are possible especially where there are practical challenges around feasibility or material availability. But I think it's less likely that the overall ambition will be significantly watered down. The PBWR's objectives are strongly aligned with broader EU sustainability and circle economy goals. So I'd expect some fine-tuning along the way, but not a change in the overall direction. If you let me come back to that marathon example, there might be a point where you have to slow down more than you originally planned, but you don't stop or you don't turn back.

13:18You keep moving forward together to the shared goal. So my final question was, in a few years from now, what would you consider an ideal outcome for the PPW and for the packaging industry in Europe? Well, in a few years, I'd like to see a packaging system where circularity truly works at scale. So packaging is designed for recycling, recycled materials are widely available, and there are clear, harmonized rules across Europe. For the industry, success means competing through innovation rather than dealing with uncertainty. Just as importantly, collection, sorting and recycling infrastructure need to advance alongside packaging innovation so design alone won't be enough and for Constancia Flexibles I see us as a as a trusted running partner for our customers every step of the way along that journey yes that sounds good hopefully it will be hopefully when we talk in a few years we'll sort of look back and say yes it'll work that well So hopefully, yes.

14:29Fingers crossed, yes. Great, thank you. Yeah, that's answered all my questions and just leaves me to say thank you very much, Martina, for being on the podcast today. Thank you very much, Elisabeth, for inviting me. You're very welcome. And yeah, I should mention, if you'd like to hear more from Constancia Flexibles, they'll also be at Packaging Europe's Sustainable Packaging Summit, which takes place again in Utrecht in the Netherlands from November 10th till November 12th this year. So we look forward to hopefully seeing many of you there. And yeah, also, like I always mention, make sure you subscribe to a podcast on whatever platform you might be listening to it so you don't miss out on any of the latest episodes.

15:10Thanks very much. Goodbye.

15:29Thank you.

15:57You