Net Zero

What is the Plastic PackagingTax?

The Plastic Packaging Tax applies to all finished plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. The tax is intended to encourage greater use of recycled plastic.

When will it come into effect?

The Plastic Packaging Tax will take effect from 1 April 2022

 Will the Plastic Packaging Tax affect my business?

If you are a business that manufactures or imports plastic packaging, including if you import packaging which already contains goods (such as plastic bottles), then you may be affected.

It is estimated that around 20,000 manufacturers, importers, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK will be affected. This will can affect Businesses and their supply chains.

There are exceptions from the tax, check at – https://www.gov.uk/government/publications/get-your-business-ready-for-the-plastic-packaging-tax/get-your-business-ready-for-the-plastic-packaging-tax

 What can I do to prepare?

• You can start to make changes to the packaging you manufacture or import so that they include at least 30% recycled plastic
• Assess your supply chains to determine which are affected, who is the responsible party, and any required amendment to contracts and pricing

 Where can I find out more information?

HMRC have produced a guide to help businesses get ready for the Plastic Tax

Research funded by Innovate UK shows that 74% of people think that climate change is a global emergency, and in 2019 BCG found that 75% of consumers view sustainability as extremely or very important when purchasing fashion. Research from around the world agrees that sustainability and climate impact are becoming greater factors for consumers when deciding what product or service they purchase.

Large companies recognise this and are leading the way in showcasing their green credentials to consumers. Examples include Amazon’s $2 billion climate pledge and Apple’s commitment to 100% carbon neutrality by 2030.

As larger companies face increasing legislative pressure and react to consumer trends, they are seeking to make their supply chains greener to reduce their own carbon footprint.

Net Zero and sustainability requirements are increasingly mandated in private and public procurement. For example, through their ‘climate Change Procurement Principles’, BT takes energy consumption and environmental impact into account when making decisions on suppliers and requires that any replacement supplier has lower energy consumption and environmental impact than their predecessor.

While further innovations and new technologies are needed to help businesses and society reach Net Zero, there are increasingly affordable technologies and adaptations available today that can reduce your business’s carbon footprint, while also delivering financial savings and productivity increases.

Investments such as insulating your premises or producing your own energy from solar or wind are investments that can deliver long-term savings in heating and energy bills. Similarly, using electric vehicles for your business can considerably reduce your running costs, with electric vehicles running for as little as 1p per mile, compared to 7-8p per mile for the most efficient petrol and diesel vehicles. You can also take advantage of government subsidies which include plug-in grants when purchasing the vehicles, and the Workplace Charging Scheme which provides grants for installing charging points.