A Conversation Companion for Making the Case for Sustainable Packaging and Innovation to Your Organization’s Leadership

With EPR fees reaching into the billions, greenwashing litigation intensifying, and recycled content mandates reshaping supply chains, the financial and legal stakes of packaging have never been higher. This resource is intended to help sustainability professionals, packaging engineers, and others who work on sustainable packaging “make the case” to your organization’s leadership for significant investment in sustainable packaging work and innovation.

In This Resource:

Why Packaging Deserves to be a C-Suite Discussion

Packaging is no longer just an environmental issue. The decisions we make across portfolios are business issues with significant cost and risk implications. Here’s why:

As of March 2026, seven U.S. states have now enacted comprehensive extended producer responsibility (EPR) packaging laws, fundamentally shifting the financial burden of managing packaging waste from local municipalities to packaging producers (including brands and retailers). One in five Americans now live in states with these regulations.

The financial stakes are enormous: California’s Department of Resources Recycling and Recovery (CalRecycle) expects to collect $21-36.3 billion in fees from producers over the first five years of the state’s EPR program. Oregon’s program began July 1, 2025, and enforcement can result in noncompliance penalties of up to $25,000 per day. These and other packaging mandates may lead to bans on sale and distribution, non-compliance penalties, or litigation, as early as 2028 in California.

Compliance is complex. Each of the seven EPR states has different timelines, data formats, and fee structures which will require enterprise-level systems for tracking packaging material data at the SKU level. This means EPR data tracking now affects product development, distribution channels, and financial planning across the entire organization.

Companies need to tread carefully when it comes to on-pack sustainability claims. 2025 saw major CPG companies facing plastic packaging greenwashing lawsuits. While overall greenwashing cases fell 12% globally between 2023 and 2024, high-severity cases rose 30% year-over-year, and this trend is continuing as courts are more closely testing claims under consumer protection and advertising laws.

For packaged goods, ubiquitous, unsupported claims like “100% recyclable” are being challenged because recycling infrastructure isn’t universally available. The reputational harm and legal costs of lawsuits go straight to the bottom line and can irreparably damage consumer trust.

In addition to EPR, states are also implementing aggressive recycled content requirements that will directly impact sourcing and manufacturing: California will require plastic beverage bottles to contain 50% recycled plastic by 2030. New Jersey’s recycled content targets include 50% in rigid plastic containers by 2036 and 50% in plastic beverage containers by 2045. Aspirational goals have evolved into legal mandates with enforcement teeth. Meeting these requirements will demand significant changes to product design, supplier relationships, and material sourcing strategies. At the same time, successfully hitting these targets will help companies gain supply chain security and resonate with consumers.

It all comes down to this: Today’s convergence of regulation, litigation risk, and product and supply chain transformation will require strategic business transformation and board-level oversight. Leadership needs to understand the EPR fees they’ll pay for their packaging portfolios, see the size of the opportunity to cut fees by moving towards different materials, and talk through the short-term challenge of unstable recycling markets or higher recycled content costs.

Given the significant changes and lead times required, sustainable packaging decisions won’t just prepare your company for future requirements, they’ll help ensure your organization is positioned to lead. Companies that treat packaging solely as a sustainability or compliance issue may find themselves locked out of key markets entirely, if they rely on packaging that is not considered recyclable in that market.

Below are four key forces why packaging demands a holistic, enterprise-wide business strategy.

Four Forces Shaping the Case for Holistic Sustainable Packaging Strategies

compliance icon Compliance
consumers icon Consumers Coming Soon
risk icon Risk of Inaction Coming Soon
decarbonization Decarbonization Coming Soon
#1 – Compliance Sets the Floor for Sustainability Goals

Sustainable packaging goals haven’t fallen out of favor — they’ve been codified into law. While large brands may seem quieter about voluntary commitments, the reality is that packaging requirements around recyclability in practice, recycled content, and chemical restrictions are now mandated across entire regions. Packaging regulations now span the entire EU, over 98% of the Canadian population, and at least 20% of the U.S. market. Goals for companies haven’t disappeared; they’ve simply moved from the sustainability reports to the statute books.

Here’s where your goals, targets, and timelines have been set for you — or likely will be soon:

Packaging Regulation Timeline
2025
Oregon
Initial fees due to PRO
July 2025
California
Final Material Characterization Study Report
SB 343
United Kingdom
Eco-modulated packaging fees based on recyclability assessment take effect
2026
Colorado
Initial fees due to PRO
January 2026
United Kingdom
All packaging types except plastic film & flexibles must be labelled
By March 31, 2026
California
Early fees due to PRO
August 2026 | SB 54
European Union
PPWR takes effect
European Union
PFAS ban
California
Estimated label law implementation
October 2026 | SB 343
2027
United Kingdom
Plastic films & flexibles must be labelled
By March 31, 2027
California
Conduct & publish 2nd Material Characterization Study
SB 343
2028
Minnesota
PRO submits program plan
California
Ongoing study updated every 5 years
SB 343
European Union
Reuse systems & targets for hospitality, restaurants, cafes & catering
European Union
Harmonized labeling becomes mandatory
European Union
Deposit Return Systems (DRS) mandatory for beverages
2030
European Union
Recycled content threshold starts
European Union
Only packaging with recyclability grades A–C permitted on EU market
United Kingdom
Material-specific recycling targets to be reevaluated
2035
European Union
10% reduction in per capita packaging waste
European Union
Recyclability must be demonstrated “in practice at scale”

While these laws aren’t going away, some implementation timelines and regulatory nuances remain in flux. California illustrates this well: the state’s Producer Responsibility Organization (PRO) Circular Action Alliance has been expected to prepare its EPR program plan and operations even as rulemaking and enforcement expectations fluctuate. This fluidity creates uncertainty as organizations make substantial operational and capital investments despite key details remaining unresolved.

However, this uncertainty also reveals a critical strategic divide. Tomorrow’s most resilient organizations won’t wait for perfect regulatory clarity — they understand that such clarity may never fully arrive. Instead, they will match external uncertainty with internal certainty, committing decisively to compliance with targets as written today and timelines as currently proposed.

Rather than treating regulatory ambiguity as a reason to delay action, resilient organizations can recognize it as an opportunity to build adaptive capacity, develop robust compliance infrastructure, and position themselves as leaders rather than laggards. By acting now with conviction, they transform regulatory uncertainty from liability into competitive advantage.

 

EPR Bills in the U.S.

8

States have active legislation on EPR for packaging in 2026

7

EPR for packaging bills have passed in the United States

Sample Conversations

Sample Convos Mockup

Want to “make the case” for sustainable packaging to your organization’s leadership?

Use our sample conversations to address common concerns and connect sustainable packaging to your leadership’s priorities.

Download the Sample Conversations

Published:
April 2026
Author:
Olga Kachook, Director, Sustainable Packaging Coalition
Editors:
Paul Nowak, Executive Director, GreenBlue
Mary Katherine Moore, Sr. Manager, Marketing & Communications, GreenBlue

About SPC

The Sustainable Packaging Coalition (SPC), a trademark project of GreenBlue, is a membership-based collaborative that believes in the power of industry to make packaging more sustainable. As the leading voice on sustainable packaging, our mission is to catalyze actionable improvements to packaging systems while lending an authoritative voice on packaging sustainability challenges.