The EU’s new Packaging and Packaging Waste Regulation (PPWR) will soon come into effect. Its aim is to reduce packaging waste, increase recycling rates, and promote more sustainable use of resources. For construction companies and suppliers, the regulation may bring both challenges and opportunities. Those who are unprepared risk increased costs, while those who act in time can gain a competitive advantage and strengthen their sustainability efforts.
To give you a clearer understanding of the new regulation, we’ve compiled what the PPWR entails, what actions you can start taking, and how GS1 standards can support you in meeting the requirements.
What is PPWR and why is it important?
PPWR is a proposed new EU regulation that applies to all sectors, including construction. The aim of the regulation is to improve the functioning of the EU’s internal market by harmonising packaging rules across member states. At the same time, it seeks to prevent or reduce the negative impact that packaging and packaging waste have on the environment and human health.
The regulation, adopted in 2022, applies to all packaging and packaging waste placed on the EU market, regardless of whether it is intended for end consumers or, for example, for freight transport. By 2030 at the latest, all packaging on the EU market must be reusable or recyclable in a way that is both practically and economically viable.
Some of the key focus areas of the PPWR include:
- Packaging minimisation – All packaging must be designed so that its weight and volume are reduced to the minimum necessary, without compromising functionality.
- Higher share of recycled material – More packaging must be recyclable or made from recycled materials, reducing the reliance on virgin raw materials and supporting a circular economy.
- Focus on reusable solutions – For example, pallets and transport containers designed to be used repeatedly, promoting durability and reducing single-use packaging waste.
- Traceability and Transparency – Companies must be able to demonstrate how much packaging material they use and how it is managed.
If you sell products in packaging under your own brand, you are considered a producer under the PPWR, even if another party actually manufactures the packaging. This means you need to ensure that every type of packaging meets sustainability requirements (e.g., material composition and recyclability). Additionally, you must ensure that technical documentation proving compliance is prepared. This documentation must be retained for 10 years and be available to both customers and authorities upon request.
For the construction industry, this means that the entire supply chain, from manufacturer to distributor, must rethink how products are packaged, transported, and reported.
What can you do now?
Although 2030 may seem far away, there is plenty you can start doing today. The earlier you gain control over your packaging, pallets, and supplier collaborations, the easier it will be to avoid costly last-minute measures. Here are three areas to start investigating:
1. Review your packaging solutions
- Identify plastics and materials that are not recyclable and explore alternative options.
- Explore alternatives with recycled content.
- Adjust packaging size and shape to optimize space and reduce waste.
2. Gain better control over waste and material flows
- Create a clear overview of how much packaging material you use.
- Require your suppliers to report on packaging composition and environmental impact.
3. Explore reusable alternatives
- Assess whether return systems can be used for pallets, bulk bags, or containers.
- Keep in mind that establishing a functioning return system often takes time and requires broad consensus and collaboration among multiple stakeholders.
- Collaborate with other companies in the industry to find common, standardized solutions that facilitate handling and reuse. One example is within the wood industry, where materials such as forklift mats are currently discarded due to a lack of standardization and a clear actor responsible for the return system. There is significant potential here to develop a functional system that meets new regulations and strengthens circularity.
How can GS1 standards be beneficial?
Meeting the requirements of the PPWR requires more than isolated efforts, you need full oversight of the entire supply chain. GS1 standards play a crucial role here by enabling scalable identification, tracking, and information sharing about packaging, products, and flows. Additionally, these standards contribute to more efficient logistics, reduced administrative burden, and enhanced traceability throughout the entire value chain.
Here are some GS1 standards relevant to the PPWR:
- GTIN (Global Trade Item Number) and SSCC (Serial Shipping Container Code) – GTIN is used to uniquely identify each product, while SSCC identifies individual shipping units such as pallets or boxes. This makes it easier to track products from manufacturing to end use and accurately document the contents of each package. For a construction company, this could mean improved control over deliveries of items like screw boxes, adhesives, or sealing products.
- QR Codes with GS1 Digital Link – A two-dimensional barcode that can connect each individual package to digital information. For example, you can provide details about the package contents, materials used, recycling instructions, and sustainability compliance. This information becomes easily accessible for internal systems, construction sites, recycling operators, and end customers.
- GLN (Global Location Number) – Used to identify companies, factories, warehouses, and other locations within the supply chain. This makes it easier to determine responsibility and establish traceability at the location level.
- GDSN (Global Data Synchronisation Network) – Enables the automatic sharing of accurate and up-to-date product information between suppliers, wholesalers, building material retailers, and other stakeholders in the supply chain. This is especially valuable in the construction industry, where the same product often passes through multiple parties before reaching the construction site. With GDSN, it becomes easier to ensure that everyone has access to the same information, including details on packaging sustainability and compliance with PPWR.
By using GS1 standards, it becomes easier to automate reporting, track material flows, and meet the increasing demands for transparency and documentation imposed by the PPWR.
From regulation to opportunity
PPWR introduces new requirements but also presents opportunities for the construction industry to adopt more circular and sustainable practices. By starting now, you can reduce risks, gain better control over packaging, and stay ahead of the curve.
Would you like to learn more about how our standards can support your specific business? Contact me via the form below and I will assist you further.
Author: David Almroth, Head of Client Relations Expansion, GS1 Sweden
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