The impact of packaging firms’ circularity practices and policies on their environmental packaging performance

Purpose This article investigates the packaging circularity practices and policies packaging firms need to integrate into their supply chains to comply with circular economy (CE) packaging expectations and regulation. Design/methodology/approach This study conducted a multiple linear regression modelling approach examining 839 firm reports published by the Australian Packaging Covenant Organisation (APCO), a co-regulatory organisation responsible for implementing a packaging CE in Australia. Findings Environmental packaging performance is more consistently affected by the narrowing and closing dimensions of circularity relating to changes in design and the incorporation of recycled content. Narrowing resource loops requires design practices that optimise the packaging footprint throughout the supply chain. Closing resource loops involves design practices and policies that facilitate resource recovery and incorporate recycled content in new packaging inputs. Reuse (i.e. the slowing dimension) less consistently affected performance. Performance is consistently influenced by on-packaging labelling to facilitate recovery, design and procurement standards to improve packaging circularity and a strategic approach to integrating a sustainable and circular packaging system. Practical implications These results suggest that a CE packaging development process should aim at redesigning the packaging system for circularity by minimising materiality, while designing it to be more effectively recovered downstream in closed loops. Additionally, from an upstream perspective, using recycled content as inputs in new packaging will require the establishment of circular supply chains, which are concerned with integrating cyclical material flows. Yet, doing so will require a strategic approach that configures new coordination and collaboration processes within and between supply chains to enable enhanced resource flows, reducing resource dependency and uncertainty. Originality/value This article empirically investigates the links between packaging circularity practices and policies and environmental packaging performance across multiple regions and sectors, providing decision-makers with key insights about the CE packaging development process.