A whitepaper released by PalletEarth concludes that complying with new sustainability regulations could be a major challenge for a multitude of operators across the EU and UK. And, with almost 50,000 firms subject to mandatory reporting from FY2024 – the impact will be felt across the global economy.
“From January 2024 companies will need to be able to report across a range of new environment, social and governance (ESG) topics that are more complex than ever before,” commented Dave Cashmore, GM PalletEarth.
“Having a robust understanding and visibility across your supply chain will ensure companies are able to both comply and maximise the wider benefits that these insights provide to their business. However, when we investigated this, we found that many companies simply don’t have the infrastructure in place to do this.”
The white paper reports results from recent studies. For example, 75% of businesses are yet to engage with suppliers to reduce emissions, while 60% of UK businesses are ill-prepared for Scope 3 emissions reporting requirements. Additionally, 87% of procurement professionals have yet to fully map their supply chain network.
Regulatory and customer implications of non-compliance
Non-compliance could see large financial penalties levied and broad sanctions such as warnings, bans, or potentially criminal convictions. PalletEarth cautions, however, that the ramifications are wider than compliance alone. “Today, consumers and companies alike are increasingly demanding lower impact and better sustainability measures from the companies they buy from or work with,” he said. Recent research from Kantar found that 47% of global consumers have stopped buying products because of their impact on the environment or society.
For a business to thrive in this new era of increased sustainability scrutiny, it is critical to be able to measure, track and clearly report against its ESG performance. And Cashmore believes it’s never been more important to embrace technology to help.
“The material intelligence provided through the built-in tracking of our pallet system gives companies full visibility across their supply chains,” he said. “The measurable data and reports help companies to identify ways to implement changes that drive efficiencies, cut costs, and reduce their environmental impact.
“And we know that this is helping to reduce emissions. Recent product trials with a global produce exporter found it was able to cut its CO2 equivalent per pallet by over 70% per journey between Philippines and Japan by using PalletEarth pallets.”
Additionally, these insights provide companies with actionable changes to internal systems, processes, and infrastructure to deliver workplace improvements for their staff, helping to retain their workforce while also making it easier to comply with health and safety governance reporting needs.
Read the full whitepaper here for an in-depth look at how the changes are shaping a new direction for the circular economy and the practical steps companies can take.
PalletEarth pallets at a glance
- Material Intelligence and built-in tracking enables 24/7 visibility across the entire supply chain.
- The trackability of each pallet is automatic. Location, temperature, and movement data is reported autonomously to the internet and PalletEarth’s online data warehouse, providing report-ready insights.
- Each pallet ISPM 15 exempt and tested to ISO 8611 standards – providing confidence in product performance and compliance.
- PalletEarth pallets are reusable, repairable, and 100% recyclable – with each pallet completely reused at its end of life to make the next generation of pallets.
- The internal Steelite™ patented frame delivers superior strength protecting goods and reducing damage and waste. Product trials have seen product damage eliminated, removing product repacking on arrival.
- The unique nesting feature helps to reduce return journey expenses and cuts pallet storage footprint and full stack empty pallet handling time by 75% versus double-faced pallets.
- The interlocking feature enables greater safety in handling stacks of empty pallets.