The reusable packaging industry calls for establishing a clear and enforceable reuse symbol

10 September, 2025

The reusable packaging industry calls for establishing a clear and enforceable reuse symbol

The undersigned 78 organisations, led by the New European Reuse Alliance and Reusable Packaging Europe on behalf of the reusable packaging industry as well as other civil society organisations, fully support the European Union’s ambition to reduce packaging waste and acknowledge the initiative laid down in the Regulation (EU) 2025/40 on packaging and packaging waste (hereinafter, PPWR) to introduce a label to indicate the reusability of packaging (Article 12.2). On this basis, we call for a symbol on reusability -in line with the labelling requirement laid down in the PPWR- that is clear, enforceable, and resistant to misuse from packaging that is not truly reusable. In the present statement, we outline a vision for such a symbol, including key requirements the pictogram should (implicitly) represent, enforcement mechanisms required to ensure that only genuinely reusable packaging can bear the symbol, the specific case applicable to reusable transport packaging, and suggestions for key visual criteria for a powerful reuse symbol.

Since implementing acts on the development of labelling requirements are expected by August 2026, as set in Article 12.6 of the PPWR, we would like to ensure that the reuse symbol effectively supports the EU’s circularity goals while aligning with the operational realities of all reusable packaging systems, in particular those of reusable transport packaging operating in pooling system for business-to-business (B2B) operations.

Context

Our priority is to support the European Commission in defining clear and robust criteria for the application of a reuse symbol. These criteria must ensure that only packaging that is truly reused in practice would be allowed to use the symbol. This will help prevent greenwashing. The symbol should also serve as a tool to inform end users and consumers easily about the reusability of the packaging.

We aim to support the European Commission in choosing a bold, clear pictogram that not only embodies reusable packaging but also ties reuse to concrete guidelines. This will safeguard the integrity of reusable packaging systems and accelerate genuine circularity across Europe.

What the symbol will convey

The reuse symbol must be reserved exclusively for packaging that meets well-defined reusability criteria, ensuring that it is not mistaken for single-use without a reuse function or reuse system behind it. As such, the reuse symbol should be coherent with the reuse criteria laid down in the PPWR (Articles 11, 12, 26, 27, 29). To uphold trust and credibility in the symbol, the symbol should only be used on packaging that complies with the following criteria:

    • Packaging is part of a reuse system: Reusable packaging should be part of a system for reuse, which includes certain components (e.g., collection, sorting, washing, repair, and redistribution) that are specific to the type of packaging (primary, secondary and tertiary), and an entity or party responsible for the performance of the system as a whole to increase accountability.

    • Packaging is conceived and designed for reuse and safe multiple rotations: As laid down in the PPWR (Article 11.1.e), packaging placed on the EU market is defined as reusable when it has been conceived, designed and placed on the market with the objective to be able to withstand repeated handling, cleaning, and refilling.

    • Demonstrated minimum number of rotations in packaging lifetime: As laid down in the PPWR (Article 3.27), reusable packaging shall be used again multiple times for the same purpose for which it was conceived. Moreover, Article 11.2 of the PPWR states that the European Commission will adopt a delegated act setting up a minimum number of rotations for reusable packaging. Alignment and consistency between the legislation setting a minimum number of rotations and labelling should be ensured. Compliance with this requirement should be verifiable through traceable systems or certified average calculations.

    • A demonstrated high return rate: For a reuse system to function effectively, a high return rate and a functioning system for return are essential. The reuse symbol should be granted only to reusable packaging that achieves a high return rate, in accordance with the delegated act setting the minimum number of rotations, ensuring that the majority of packaging is reintegrated into the system.

    • Packaging is designed for and within a system with responsible end-of-life treatment: In line with PPWR Article 11.1.i, reusable packaging must be designed with a clear end-of-life strategy. While the priority is maximising reuse cycles, all reusable packaging must remain recyclable at the end of its lifecycle to minimise environmental impact.

Enforceability measures to prevent misuse

We propose to the European Commission a series of enforcement measures to ensure the credibility and integrity of the reuse symbol and avoid it being used for packaging that is not truly reusable. We suggest the following measures to be further defined and enforced by the European Commission:

    • Guidelines: In accordance with Article 12.8 of the PPWR, both general and sector-specific guidelines should be elaborated by the European Commission, in active discussion with industry representatives. Such guidelines should allow the reusable packaging industry to clearly understand how to adequately implement the labelling requirements, acknowledging the current market practices and different uses depending on the type of packaging. At the same time, these guidelines should allow the sector to continue to innovate its services and products, in line with the requirements laid down in the PPWR.
    • Penalties for misuse: Companies falsely labelling non-reusable packaging as reusable should face penalties and restrictions for employing the reuse symbol. National authorities should further define penalties, including labelling requirements as laid down in Article 68 of the PPWR.
    • Oversight mechanisms: National or EU regulatory authorities and (authorised) non-governmental organisations (NGOs) should oversee and audit the compliance of the reusable packaging industry with the requirements set down for their assets to bear the reuse symbol. Such operations should not, however, imply an additional economic cost on reusable packaging operators.
    • Education and awareness-raising initiatives: The European Commission, together with national competent authorities, including Producer Responsibility Organisations (PROs), should support reusable packaging companies and associations through several initiatives, both online and offline, to introduce end users and consumers to the reuse symbol and what it entails.

At the same time, sector-led initiatives can also be established to enhance the credibility of such a symbol, including protecting the symbol via a quality trademark or certification trademark. The reusable packaging sector is also open to having the reuse symbol as a quality trademark/certification trademark for genuinely reusable packaging, as it may act as a valuable solution to address the issue of potential misuse by non-reusable packaging. Moreover, a trademark would act as a guarantee of compliance, promoting trust in the system and encouraging responsible handling from end-users1.

Following the example set in Germany by Arbeitskreis Mehrweg GbR, such a trademark could be obtained via a licensing agreement between the companies using the trademark and the owner and issuer (non-governmental) of such a mark. The companies would need to abide by a set of criteria to follow and would need to pay a small fee to the owner of the mark. The owner will need to carry out audits and check that companies using the mark are compliant with the criteria set down2.

The case of reusable transport (tertiary) packaging

With implementing acts on labelling requirements anticipated by August 2026, we the undersigned parties, call on the European Commission to recognise the particularity represented by reusable transport packaging (RTP) operated in a pooling system for business-to-business (B2B) operations and to acknowledge that this type of packaging should not have to carry said symbol on their individual assets. While a physical labelling or symbol requirement may serve a purpose in consumer-facing (B2C) contexts – helping consumers distinguish between reusable and single-use packaging – this requirement does not align with the B2B reality of RTP operations.

RTP poolers already implement robust identification systems, including markings, logos, and colour schemes, that effectively indicate reusability and ensure high return rates, fully aligning with the labelling requirements outlined in Articles 12.1 and 12.5 of the PPWR. These systems are supported by tracking features and financial incentives, which ensure (proven) high rotations and return rates, and are complemented by contractual documentation such as agreements and delivery notes, providing clear and enforceable proof (and instructions) of reusability.

Moreover, the application of a physical symbol on RTP assets shows numerous operational restrains. RTP undergoes extensive handling, making symbols present, for instance, on labels or physical marking, prone to wear, removal, or damage, leading to high maintenance costs that outweigh potential benefits.

Per article 12.5, the “affixing, printing or engraving” of a reuse label/ symbol to RTP is therefore “not warranted on account of the nature […] of the packaging”, the nature being reusable transport packaging being managed in a closed-loop system by a system operator in a business-to-business environment where end-users of packaging are already informed of the reusability of packaging through the system-specific logos and colours as well as the supporting logistical infrastructure to enable return and therefore extended reuse.

The recognition from the European Commission that closed-pool RTP should not have to carry physical symbols or labels on individual assets would level the playing field with RTP used in open-loop systems and avoid unnecessary duplication of the work already being carried out by the RTP pool sector.

On their side, RTP poolers are ready to include such a reuse symbol to existing digital documentation (e.g. shipping or rental records) used within B2B systems. This method ensures compliance, informs end users of reusability, facilitates the tracking of the packaging and the calculation of trips and rotations, avoids additional physical applications of labels or symbols, and reflects operational realities, in line with Article 12.2 and 12.5.

Visual criteria for the reuse symbol

The sector self-consulted on the key visual principles that the reuse symbol should adhere to in order to ensure effectiveness and broad applicability across different packaging systems. We recommend the following suggestions, also in line with the global initiative currently being carried out by PR33:

    • The symbol shape should immediately convey to the end user that the packaging is reusable. To achieve this, the shape and design of the symbol should not resemble existing symbols conveying a distinct message (e.g., recycling). This would avoid creating confusion for end users/consumers and packaging industry operators.
    • The symbol should be easily recognisable across various applications, visually attractive, simple to reproduce (e.g. easy to draw), and memorable.
    • The symbol should be powerful enough to resonate with diverse audiences and represent the concept of reuse while being adaptable to various contexts, cultures, and languages.
    • The symbol should inspire action and encourage the adoption of reusable packaging.
    • The symbol should be unified across Europe.
    • The symbol must remain clear and legible when scaled up or down in size, or for various applications to packaging (labels, embossing, marking, etc), documents, or online platforms.

1 A concrete example of such initiative is currently being carried out worldwide by PR3, the global alliance to advance reuse, for both packaging and infrastructures set by the reuse systems.
2 The system currently up in Germany is applicable to reusable beverage manufacturers, beverage and food retailer sector, and environmental and consumer organisations. It may only be used in connection with the reusable system for beverages. In concrete terms, this means that it may be used on labels and in communication measures by manufacturers who have signed the terms of use of the symbol. In retail, it is used to draw attention to reusable bottles. Environmental and consumer organisations, as well as the media, use it to provide information about the reusable system. More information are available here: Meaning: Reusable.
3 The initiative being carried out by PR3 is called “Rebrand Reuse”, with an open call for a global reuse symbol.

Joint statement on enabling circularity in the Clean Industrial State Aid Framework

29 April, 2025

Joint statement on enabling circularity in the Clean Industrial State Aid Framework

Dear Executive Vice-President Ribera,
Dear Executive Vice-President Sèjournè,

We, the undersigned coalition of circular economy trade associations, businesses, and NGOs from across Europe, are writing to express our concerns regarding the current draft of the Clean Industrial State Aid Framework (CISAF), and its notable omission of support for circularity measures.

Strategic Importance of Circularity
The Clean Industrial Deal (CID) recognises that “Circularity will be a priority. It is the key to maximising the EU’s limited resources, reducing dependencies and enhancing resilience. It reduces waste, lowers production costs, lowers CO2 emissions and creates a more sustainable industrial model that benefits the environment and enhances economic competitiveness. The ambition of the Clean Industrial Deal is to make the EU the world leader on circular economy by 2030.”

This ambition cannot be realised without appropriate financial support mechanisms, to scale-up enabling infrastructure. By placing circularity at the core of our decarbonisation strategy, the EU not only improves the affordability and accessibility of essential materials but also reduces strategic dependencies as materials are reused, remanufactured, recycled, and kept within the economy for longer.

The Case for Circularity under CISAF
While we welcome the Commission’s communication for a Clean Industrial Deal (CID) and the supporting framework provided by CISAF, we are deeply concerned that despite “Circularity and access to materials” being explicitly identified as the fourth pillar of the CID, it has not been afforded the same provisions within the State Aid Framework as other priority areas.

The draft CISAF contains provisions for the following types of aid measures:

    • Measures accelerating the rollout of renewable energy
    • Measures facilitating industrial decarbonisation
    • Measures ensuring sufficient manufacturing capacity in clean technologies
    • Measures to de-risk private investments in projects related to the previous three bullet points

However, circularity measures have been omitted in this support framework, creating a significant policy inconsistency that could hinder the sufficient availability of secondary raw materials, which undermines the CID’s stated objectives.

Our Request
We therefore respectfully urge the Commission to ensure the CISAF includes explicit provisions for Circularity measures.

Enabling state aid for projects that boost material circularity will make Europe’s industrial production more sustainable, accelerate decarbonisation efforts, and significantly enhance resource security. It is a natural and necessary step to support the CID’s objective of increasing material circularity up to 24% by 2030, ensuring resources remain in circulation for as long as possible.

As Europe strives for strategic autonomy in a resource-constrained world, we must ensure that all pillars of the Clean Industrial Deal receive equal policy and financial support. The inclusion of Circularity under the CISAF is not merely an environmental consideration but a fundamental economic and strategic imperative.

We remain at your disposal to discuss this matter further and look forward to your positive response.

Yours sincerely, 

Omnibus Package I and Clean Industrial Deal

14 March, 2025

Omnibus Package I and Clean Industrial Deal: Business for a Better Tomorrow calls on the European Union to Reaffirm its Compass for Sustainable Competitiveness

A few weeks after the publication of its “EU Competitiveness Compass”, the European Commission presented on Wednesday February 26 2025, the first two flagship initiatives of the new mandate to strengthen the competitiveness of the European economy and ensure sustainable prosperity: the first Omnibus Package and the Clean Industrial Deal.

In its Omnibus Package, the European Commission proposes to revise key Green Deal regulations in order to foster competitivity by simplifying reporting obligations: the 2022 Corporate Sustainability Reporting Directive (CSRD), the 2024 Corporate Sustainability Due Diligence Directive (CSDDD), the 2020 EU Taxonomy regulation as well as the 2023 Carbon Border Adjustment Mechanism (CBAM).

The Business for a Better Tomorrow coalition takes note of the Commission’s proposal and supports its approach aimed at optimizing the implementation of the above mentioned sustainability regulations. However, we regret the path taken by the European Commission, which, by reopening several of these texts at level 1, undermines provisions at the heart of our future resilience and creates legal and competitive uncertainty ahead of the forthcoming negotiations in Brussels. Predictability is essential for competitiveness—EU policies must provide a stable and coherent framework that allows businesses to align their operations and value chains with the transition pathway. Many companies have already made significant investments to comply with EU obligations, and weakening these rules now would not only penalize early movers but also erode trust in the regulatory environment. Furthermore, the coalition stresses that the proposed revisions amount to a major rollback of the EU’s environmental and social ambitions, in sharp contrast with the Commission’s statement that the goals of the European Green Deal would remain intact.

Sustainability reporting and due diligence requirements empower businesses to tackle the ecological and social challenges of tomorrow  while strengthening their resilience to the risks these challenges pose. Simplification must not be a pretext for rolling back ambition—it should be a lever to drive both sustainability and competitiveness for EU businesses. We call for a swift and decisive conclusion to the discussions that are about to be reopened with the Commission, Council and Parliament, so that European businesses can thrive within a clear and harmonized framework.

We welcome the adoption of the Clean Industrial Deal by the European Commission, which provides concrete answers to the challenges facing businesses, particularly in terms of energy costs, fair competition for decarbonized products, the development of the circular economy and the need for investment in clean technologies and digital sovereignty. The adoption of these measures represents a significant step forward in boosting European industrial competitiveness. It will therefore be essential to ensure their deployment under fair and effective conditions, in line with companies’ expectations.

Simplification, supported by the Omnibus package, must be a lever for competitiveness and growth, not a renouncement of Europe’s sustainability ambitions. At the same time, the Clean Industrial Deal must create a stable, predictable, and incentivizing framework to accelerate the decarbonization of the economy and support innovation.  In this perspective, the Business for a Better Tomorrow coalition will remain mobilized to ensure that these initiatives fully meet—rather than undermine—the needs of businesses committed to ecological and social transition.

Finally, while discussions in the Competitiveness Council on March 12 indicate the possibility of including additional environmental regulations in the Omnibus process, we urge caution against reopening other critical files. Businesses require clarity and stability in existing policies to maintain their momentum in the transition.

Far from being a constraint, the transition should be a strategic opportunity to strengthen the competitiveness, innovation and resilience of European businesses.

Support an EU-wide restriction of single-use packaging for dine-in

27 February, 2024

Support an EU-wide restriction of single-use packaging for dine-in

Dear Members of the European Parliament,
Dear Representatives of the Council of the European Union,
Dear Representatives of the European Commission,

Ahead of your meeting on 4 March, where you intend to reach an agreement on the Packaging and Packaging Waste Regulation (PPWR), we urge you to agree to ambitious measures to reduce the amount of problematic, avoidable, and unnecessary single-use packaging in the EU.

We would like to reiterate our strong support for an EU-wide restriction of single-use packaging in the HORECA sector for customers who dine in. We hope that negotiators can agree to the proposals in this regard made by the European Commission in November 2022 and endorsed by the Council’s General Approach of December 2023. Please support Art. 22 together with points 3 and 4 of Annex V (“Restrictions on Use of Packaging Formats”).

The types of single-use packaging covered under these points fulfil all the criteria to be restricted:

    • They are problematic: most single-use packaging used in the HORECA sector is difficult to recycle after use and contact with food, and is often not recycled or downcycled¹.
    • They are unnecessary and avoidable: most operators in the HORECA sector offer reusable tableware to customers dining in; single-use packaging can clearly be avoided by adopting suitable operating procedures.

We would also like to draw your attention to the EU Joint Research Centre’s recent study², which assessed the environmental performance of single-use (SU) and multiple-use (MU) packaging in a dine-in restaurant case study and found that “the ‘Restaurant Scenario’ resulted in lower impacts for the MU packaging in the majority of impact categories and simulations.” This illustrative example is in line with many other life-cycle assessments and demonstrates the clear benefits of restricting single-use packaging for dine-in.

To conclude, we remind you that the EU is part of the high-ambition coalition to negotiate a global treaty to eliminate plastic pollution. In the ongoing negotiations, the EU and its Member States argue for ambitious restrictions of problematic, avoidable, and unnecessary single-use plastics. On 4 March, you have the opportunity to adopt such measures for the EU and send out a strong signal to other regions of the world. Push back against the throwaway culture and prevent unnecessary waste!

¹ M&Mme Recyclage: Functionalisation of Paper and Cardboard, how to make Paper/Cardboard Impervious for Packaging, February 2024
² Sinkko, T., Amadei, A., Venturelli, S. and Ardente, F., Exploring the environmental performance of alternative food packaging products in the European Union, Publications Office of the European Union, Luxembourg, 2024, doi:10.2760/971274, JRC136771

PPWR as a Major Opportunity for Massive Economic Value Creation and Sustainable, Global Competitive Advantage for Europe

29 February, 2024

PPWR as a Major Opportunity for Massive Economic Value Creation and Sustainable, Global Competitive Advantage for Europe

Dear Members of the European Parliament,

We are passionate entrepreneurs and write to you as part of the burgeoning reusable industry, with a clear request to seize the Packaging and Packaging Waste Regulation (PPWR) as a significant economic, ecological, and social opportunity for Europe and to ensure the following implemented:

1. A ban on single-use packaging for on-site consumption. This is no longer ethical, and the ecological disadvantages are glaring. [see JRC 2024 – Exploring the environmental performance of alternative food packaging products in the European Union]
2. Ambitious and mandatory reuse quotas across all sectors proposed by the European Commission, such as the 40% target for takeaway food by 2040 , as well as the possibility to set targets for additional products. [see Ellen MacArthur Foundation 2023 – Unlocking a reuse revolution: scaling returnable packaging]
3. No loopholes to circumvent the reuse quotas, such as exemptions for cardboard single-use packaging or the attainment of certain recycling rates.

The throwaway culture must end. Single-use belongs in the trash heap of industrial history. Reusables are an essential part of the solution to the global waste problem if we do not want to leave the next generation a depleted and littered planet.

Let us lead the way as a continent because it is worthwhile: Europe is a global leader in reuse and has a strong reuse industry, which will benefit significantly from an ambitious PPWR, create numerous jobs and become the next generation of European global champions.

Thank you for your commitment and with warm regards,

PPWR: embracing the opportunity for a positive change within the packaging industry

24 January, 2024

PPWR: embracing the opportunity for a positive change within the packaging industry

Political urgency and climate imperatives converge with imminent EU elections. Simultaneously, a longer-term perspective involves strategic efforts for lasting positive environmental impact. The industrial landscape, operating within its own rhythm, becomes evident when confronted with transformative shifts. Within this context, the PPWR stands out as a potential transformative European milestone, aligning seamlessly with various timelines. This presents a unique opportunity window that requires immediate action before it closes for the next five years.

While recognizing the endeavors of co-legislators over the past year in navigating complex perspectives and seeking compromises among their respective institutions, the outcomes, notably in articles 26 and 22, lack the desired ambition and raise concerns due to potential loopholes. For the PPWR to genuinely address the problems it aims to solve, it must follow and align with the waste hierarchy (article 4.1 of Directive 2008/98/EC), where prevention and reuse prevail over recycling. By doing so, we can establish robust, ambitious, clear, and coherent regulations in line with the PPWR’s objectives and the EU Green Deal. Such consistency and coherence are necessary for the development of the reuse and refill industry, as well as for all stakeholders awaiting a strong signal from Europe to engage in new practices.

Below are the key points advocated by the reuse and refill industry.

1. Reuse targets, refill and restrictions on certain packaging formats

Ensuring fairness and environmental impact 

To avoid distorting competition, it is imperative to limit the numerous exemptions proposed by the Parliament. A harmonized foundation is essential for all sectors, ensuring fairness and allowing Member States to achieve packaging waste reduction objectives. Additionally, refill plays more of a role of waste prevention, so the targets should prioritize reuse, especially for beverages and takeaway (sector recommendation). New ERA calls for : 

    • Takeaway: Retain the targets for ready-prepared food and drinks (Council & Commission proposal: article 26.2/3). 
    • Beverages: Include milk and wine, and clarify what is meant by perishable drinks (Commission proposal: article 26.4/5/6). 
    • Transport, stabilization, large household appliances, and grouped packaging: Include cardboard (sector recommendation) and maintain packaging formats in direct contact with food (Council & Commission proposal: article 26.7/12/13).
    • Single-use packaging ban in the HORECA sector: Keep the restriction of disposable containers for onsite consumption of food and drinks in HORECA establishments (Council & Commission proposal: Annex V.3).

2. Derogations to meet reuse targets:

Respecting the waste hierarchy for practical implementation 

Derogations play a pivotal role in shaping a regulation that is both implementable and enforceable at the European level to gauge its impact. The multiple proposed derogations present loopholes that complicate the application of the text and void its substance. New ERA opposes these exemptions, in particular: 

    • If a life cycle assessment does not prove that reuse is the environmentally superior option (Parliament proposal: article 26.15). 
    • If a Member State reaches 85% recycling rate for a packaging material or format and the 85% rate of separate collection for packaging material in a Member State (Parliament proposal: article 26.13.a/15a). 

3. Flexibility for ambitious Member States: 

Empowering innovation within harmonization 

The PPWR is a regulation based on the internal market, meaning it aims to harmonize packaging management rules across the 27 Member States. While recognizing the importance of applying common rules, it is crucial that this approach fosters efficiency and synergies without stifling innovation or ambition. New ERA asks for: 

    • Enabling Member States to set targets for reusable packaging going beyond what is established in the PPWR, allowing both higher targets and adding new ones (Council proposal: the term “at least” added for each reuse target, plus article 26.15/15aa). A similar approach should also be taken into account for article 22 concerning restrictions on the use of specific single-use packaging outlined in Annex V (sector recommendation). 

4. Requirements for reuse systems: 

Crafting frameworks for effective reuse systems 

For the full potential of reuse systems to be realized, it is crucial to define the basic rules for the management of those systems. However, the definition of this framework must be crafted with precision, considering the significant disparities and contexts across the different EU countries. Moreover, reuse systems exhibit wide diversity based on their application. Governance structure, logistics, or the refurbishing of packaging can vary depending on the type of reuse system, be it transport packaging or sales packaging for beverages. This is why New ERA advocates for: 

    • Take-back obligation: final distributors are obliged to take back reusable packaging for takeaway and beverages in the same format as they were placed in the market (Council proposal: article 26.13b). 
    • Minimum rotation requirement: the Commission shall adopt a delegated act specifying the number of rotations two years after entry into force (Parliament proposal: article 10.1.b). 
    • Financing reuse systems: EPR and deposit return schemes shall allocate a minimum share of their budget to invest in reuse infrastructure and the deployment of reuse systems (Parliament proposal: article 45.2.b). The minimum allocation should be explicitly defined within the text, aiming for a 20% of the eco-contribution fees (sector recommendation).
    • Requirements specific to reuse systems and refill stations should be kept to a minimum, focusing only on the essential requirements relevant to the management of all reuse systems (sector recommendation: Annex VI). 

Using Simplification as a Lever for Sustainability and Competitiveness of EU Businesses​

27 January, 2025

Business for a Better Tomorrow Open Letter to the European Commissioners for Using Simplification as a Lever for Sustainability and Competitiveness of EU Businesses

Dear Executive Vice-President Séjourné,
Dear Commissioner Albuquerque,
Dear Commissioner Dombrovskis,

The Business for a Better Tomorrow coalition, representing the interests of 19 EU and national-based business networks committed to the ecological and social transition, extends its heartfelt congratulations on your respective appointments to the new College. Your leadership comes at a critical juncture for the European economy, where strengthening competitiveness, innovation, and resilience is more important than ever, alongside the need to streamline regulations. These efforts must, however, be carried out without compromising the EU’s ambitious sustainability goals.

The Business for a Better Tomorrow coalition reminds you that the regulations in question—specifically the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CS3D), and the EU Green Taxonomy—are essential pillars of the Green Deal. These regulations provide businesses with a harmonized framework that supports their sustainable transformation and long term competitiveness. They are designed to foster the emergence of a more robust, innovative economy that is capable of addressing the ecological and social challenges of tomorrow. The successful implementation of these measures will be instrumental in creating a fairer, more attractive business environment, while simultaneously solidifying the EU’s position as a global leader in sustainability.

In this context, we stress that revisiting certain provisions of these texts should not result in a reduction of their ambition or in delaying their implementation. The focus of any adjustments must be on simplification from a practical point of view, enabling businesses to achieve sustainability goals without imposing an undue burden. These improvements should focus on simplification rather than deregulation of laws, with the aim of notably facilitating compliance for SMEs by offering tailored expert assistance, technical tools in their language, and digital and AI-based solutions to streamline processes. We also advocate for a systematic review of new regulations to ensure their consistency, harmonization, and simplicity, particularly in sectors that are highly exposed to competition.

Simplification must streamline processes, not dilute objectives. By removing unnecessary barriers, clarifying requirements, and considering the practical realities faced by businesses, these regulations can become more actionable. Moreover, it is vital to recognize the early movers—companies that have already taken proactive steps toward compliance. Extending revisions beyond practical simplifications would penalize these pioneers and discourage other businesses from following their lead. Such refinements should therefore align sustainability objectives with clear, actionable pathways for businesses, fostering transparency and engagement across all sectors of the economy. These regulations are not just about protecting the market—they are about enabling businesses to thrive, innovate, and contribute to the long-term prosperity of the European economy. Any deviation risks creating uncertainty and undermining the regulatory stability necessary for long-term progress and competitiveness.

We also recognize the crucial role of business and civil society organizations in monitoring the simplification process to ensure it does not inadvertently become a deregulatory agenda. Our vigilance is essential to preserving the integrity and ambitious impact of these frameworks, ensuring they continue to align with the business strategies of companies on their sustainable journey toward more resilient and competitive models that embed ecological and social objectives into their governance and operations.

In conclusion, we stand resolute in our commitment to collaborate with you and all relevant stakeholders to ensure that these regulations, vital to the future of both European business and global sustainability, remain robust, ambitious, and effective. The decisions made in this regard will resonate far beyond the immediate context and will shape Europe’s economic and environmental future for generations to come.

We thank you for your attention to this crucial matter and look forward to the opportunity to engage in further constructive discussions.

Yours sincerely,

The Business for a Better Tomorrow coalition

For an ambitious EU mandate embracing a holistic vision on circular economy

4 November, 2024

For an ambitious EU mandate embracing a holistic vision on circular economy

Over the past five years, the EU has made significant strides in developing policies and legislation to promote a more circular economy, particularly through the Circular Economy Action Plan. However, the EU’s Circular Material Use Rate has essentially stagnated, increasing only marginally from 10.7% in 2010 to 11.5% in 2022, highlighting the need to address gaps and strengthen implementation. As underlined by the European Environment Agency, these policies need to become more binding and target-oriented to accelerate the shift towards a regenerative economy in Europe. This means moving beyond the current strong focus on waste management to address resource use more directly. In the coming years, supporting Member States with the implementation of circular economy policies and demonstrating high ambition in preparing accompanying measures should also be a priority.

The appointment of a dedicated European Commissioner for Circular Economy is a critical step forward in the EU’s commitment to accelerating the transition to a circular economy. The central question is whether establishing a dedicated Circular Economy Commissioner would pave the way for a comprehensive sustainable materials and resources management framework.

In the context of the upcoming hearings for EU Commissioner-designate candidates, we, as NGOs, EU organisations, and leading sustainable businesses in the circular economy ecosystem, urge you, members of the European Parliament, to rigorously question potential candidates with portfolios related to resource sufficiency and the circular economy on the following topics:

For a systemic vision on materials and resources within planetary boundaries: towards a resource-based systemic approach supported by binding EU resource use reduction targets on material and consumption footprint. This will be crucial for ensuring the long-term competitiveness of European industry and increasing the circular material use rate, as recognised in the June 2024 Council Conclusions.

For the improvement of fiscal and economic tools: Shifting the tax burden from labour to raw material extraction, alongside implementing circular taxation, is essential for aligning economic incentives with the goals of a circular economy.

For the inclusion of circular economy criteria within trade policy: the EU should lead in setting global circular economy standards, using trade policy and international instruments, such as the EU Carbon Border Adjustment Mechanism or the EU Deforestation Regulation, to promote climate neutrality, decarbonization, and a just transition worldwide. In line with the Ecodesign for Sustainable Product Regulation, instruments such as the CBAM could be expanded to address the resource intensity of imported products. Impact assessments should be a key component of EU trade and circular policy development. These assessments should evaluate the socio-economic implications for trading partner countries, including the impact on both formal and informal labour markets. To ensure comprehensive and reliable assessments, broad stakeholder consultation and independent research should be incorporated.

For the improvement of the Extended Producer Responsibility framework to become a game-changing policy tool that supports prevention, reuse, separate collection, and high quality recycling: to prevent distortions and ensure a fair competition in the market, especially as EPR expands to more products, coordinated EU-level action is essential. The EU should therefore ensure adequate cost coverage provisions to fully implement the Polluter Pays Principle, establish an eco-modulation system designed for simplicity, practical application, and a focus on prevention and reduction, recyclability and recycled content. It should also address the free-rider problem through a comprehensive framework and tackle the limitations of EPR schemes when second hand products are exported for reuse from the EU to third countries. Finally, EPR schemes should be supervised by an independent advisory and monitoring body in which all the stakeholders are represented.

For product lifespans extension and maintaining the long-term competitiveness of
European industry: a clear and progressive policy framework prioritising reduction, prevention, reuse, and recycling is crucial for boosting material and product circularity. The Circular Economy Act should place greater emphasis on the establishment of binding quantitative and qualitative targets at the product level as well as economic support for redesign, reduction, reuse and repair. The Circular Economy Act should also reaffirm the role of businesses as drivers of innovation and support their initiatives when it comes to integrating circularity practices into their business models.

For a circular economy single market: Europe’s overdependence on primary material extraction carries severe social and environmental consequences, while also exposing the EU to new geopolitical vulnerabilities. A well-functioning circular single market, as mentioned in Enrico Letta’s report, would ensure a level playing field for circular materials, products and services enhancing the EU’s resilience against import shocks. As pointed out in the report, the EU must “establish a Circular Single Market where economic growth and well-being are no longer dependent on unsustainable use of natural resources and dangerous dependencies”.

For public procurement as a key accelerator of circular economy deployment: Ursula von der Leyen has proposed to revise the Public Procurement Directive in her political guidelines for the new Commission. Thus, it is a good time to introduce circular public procurement requirements, with economic incentives and the possibility of penalties if public tenders continue to favour resorting to primary raw materials and business-as-usual models.

For a circular economy supporting good quality jobs: the value of the circular economy should be clearly articulated and actively facilitated within the upcoming revision of the Just Transition Framework.

For recognising the key role of local and regional authorities: the 2023 report from the European Court of Auditors highlights that there is limited evidence to suggest that the Circular Economy Action Plans have significantly influenced circular economy activities in Member States. Local and regional leaders, who are responsible for over 70% of Green Deal implementation, play a key role in this transition, as underlined recently by the letter from the Circular Cities Frontrunner Group, being the closest level of power to the citizens who are also consumers while being the competent authority to manage municipal waste. Many EU countries are failing to meet their recycling targets for municipal and packaging waste. Initiatives such as the Circular Cities and Regions Initiative, which supports large scale circular economy projects at local and regional levels, are vital in this regard. Local and regional authorities can significantly accelerate the circular economy by promoting circular public procurement, enhancing transparency and promoting fair competition. Furthermore, aligning the Cohesion Fund with local targets and increasing public private investment can unlock additional funding and support for circular initiatives.

For ensuring sufficient funding for circular economy efforts: it is vital that European funding is properly allocated to invest in the top three steps of the waste hierarchy: prevention, re-use, and recycling. The existing strategies should also be aligned with new and emerging policy frameworks, such as the Net Zero Industry Act, to further drive investment in circular economy industrial development within the EU.

For a safe and healthy circular economy: safety and human health must be a central part of the EU’s circular economy. Therefore, it must support ambitious measures outlined in the Chemicals Strategy for Sustainability, such as to phase out the most harmful substances in consumer products.The Circular Economy must promote clean manufacturing and non-toxic materials cycles.

For ensuring the implementation of the legislation: with the recent increase in policy measures, it is now important to assess how effectively these policies are being implemented and to evaluate their overall impact. Additionally, ensuring the timely and accurate implementation of EU circular economy policies is essential, along with taking swift and decisive action against incorrect transposition and non-compliance.

Joint letter – Green Claims Directive

27 January, 2025

Joint letter – Green Claims Directive

Honourable members of the European Parliament and national representatives,

Trust is easy to lose and hard to regain – and current practices for communicating environmental information are rapidly eroding public trust in green claims, as recently shown by a consumer survey conducted by the European Consumer Organisation (BEUC). The Green Claims Directive is Europe’s best chance to eliminate greenwashing.

By guiding businesses to have confidence in the claims they can make, this Directive could set the foundation necessary to repair a market failure that is costing rather than rewarding businesses for sustainable innovation.

We, the undersigned (civil society organisations and businesses across Europe), call on the Council and Parliament to support a robust Directive with a meaningful verification procedure and clear rules on environmental claims to protect consumers and sustainable businesses.

In particular, two key provisions are needed to achieve more sustainable consumption:

1. Ensure the efficient verification of all claims before they enter the market.
Today, half of environmental claims on the market are either misleading or misuse methods of substantiation. Market authorities cannot enforce current legislation sufficiently due to the sheer number of claims whilst traders face legal uncertainty and fragmentary enforcement. Smaller businesses that cannot afford the best lawyers and who cannot risk enforcement are the most disadvantaged. Including verification ex-ante by default would eliminate greenwashing from the start and support businesses in managing legal risks from greenwashing. The process should be swift, manageable, and affordable.

2. Prevent misleading environmental claims relying on ‘offsetting’ of environmental impacts, including at the traders’ level.
The EU’s Empowering Consumers for the Green Transition Directive, national regulators, and Courts have all recognised that ‘offsetting’ is a highly flawed concept that does not align with scientific evidence. Instead, the Directive should enable companies to communicate about their contribution to environmental projects outside of their value chain, with no notion of compensation.

The Green Claims Directive is a major milestone of the New Consumer Agenda and the European Green Deal – and it is as urgent as ever to put it into action. We firmly believe that these provisions will ensure that consumers receive truthful information about the real environmental impacts of products and traders.

We urge you to support and enhance the sound provisions proposed by the European Commission and the co-legislators, as proposed in this letter.

Smart implementation of EU sustainability reporting standards: make complying with rules easy

12 December, 2024

Smart implementation of EU sustainability reporting standards: make complying with rules easy

We are deeply concerned that the strategic work on standardising corporate sustainability disclosures in the EU is being wrongly portrayed as a threat to competitiveness, and particularly by the implications of President Ursula von der Leyen’s recent announcement of an Omnibus proposal. This was preceded by recent debates in the EU Parliament on the “abolition of unnecessary burdens and reports”, and statements by representatives of the German and French governments.

This one-sided representation seems to serve a full deregulatory agenda, not a simplification initiative to support objectives of this legislation and to support companies in their sustainable transition towards more resilient and competitive business models. It undermines the European Commission’s own statement that “Sustainable finance facilitates re-orientating investment towards sustainable economic activities. It is an essential part of the European Green Deal”, which depends on readily available, comparable and reliable sustainability information. Companies need clarity and banks and investors expect better quality and comparability of ESG data following the implementation of the CSRD next year. Instead of playing ping-pong with the legal framework, we strongly encourage focusing on smart and easy implementation and consider the current lack of key data relevant for the economic transformation.

President von der Leyen asked EU Commissioner Albuquerque in her mission letter to focus on scaling up sustainable finance. To achieve this goal, transparency and standardisation of sustainability reporting is critical. The focus should be, as noted by the President, on implementation and ensuring that rules are easy to comply with.

1. The CSRD is a catalyst for the necessary economic transformation

❯ This legal framework was adopted to enhance and modernise companies’ reporting on sustainability matters, with the objective of addressing a market failure in providing relevant, comparable and decision useful sustainability information. The predecessor of the CSRD (the Non-Financial Reporting Directive-NFRD) failed to deliver by not providing a standardised framework for corporate sustainability reporting. 

❯ The CSRD and EU standards are helping companies identify and address their priorities for sustainable and long-term development, effectively manage their sustainability risks, and thrive in an increasingly competitive market that demands sustainability. The EU standards are by nature a business tool for companies to address their sustainability risks and impacts from a strategic perspective.

❯ Standardised and digital reporting is critical to level the playing field in sustainability transition. The CSRD guides the market focus on what really matters, ensures comparability and curbs greenwashing. It also reduces market fragmentation and requires transparency on sustainability from non European companies, which is critical for the protection of the EU market and companies.

❯ According to the EU Commission, there is a need for additional investments of €620bn per year to meet the 2030 objectives of the European Green Deal and REPowerEU,5 requiring the mobilisation of public and private finance. With more than 60% of retail investors adamant about their wish for sustainable investments, 6 the ESRS represent a major opportunity for companies to access more finance to support their transition. European supervisory authorities have been warning for years: without reliable ESG data from EU companies, finance flows will not be adequately allocated to contribute to this transition.

❯ The Directive will help small and medium-sized enterprises (SMEs), which are not required to report sustainability information, but will benefit from a simplified voluntary reporting standard that will align information requests from banks, and unlock access to vital sustainable finance. 

2. Legal certainty for companies must take precedence over short-sighted political reactions

❯ Any arbitrary change or cut in the standards would risk confusing the market, and demand more efforts from companies which are already investing in the application of the EU standards. EU standards provide a one-stop shop for companies to issue information needed by banks and investors (including all necessary alignment with SFDR and Taxonomy). The identification of impacts is also underpinned by the due diligence process, as reflected in the CSDDD, while all public reporting is centralised in the EU standards.

❯ The 25% reduction target for reporting obligations, for which the EU Commission has been acting upon since 2023, lacks precise modelling and fails to demonstrate how it aligns with the actual reporting requirements necessary to achieve policy objectives: it is arbitrary. Changing the EU reporting framework may unintentionally increase burdens on companies by creating more legal uncertainty, making it harder for them to assess performance, manage future developments, and maintain business relations and investments.

❯ Separately, financial reporting obligations are highly complex, and duplicative communication exercises to financial, audit or supervisory authorities can be examined to simplify companies’ administrative duties. There is no rationale nor any basis in the Commissioners’ mission letters to focus the simplification on sustainability only: financial reporting is arguably more costly for companies.

❯ Following the EC Better Regulation principles, any policy intervention must be informed from evidence. The EU standards already include a revision planned after 3 years, when any needed modification should be considered on the basis of actual implementation of the standards as of 2025.

3. Avoiding over-compliance

❯ The EU standards are built following proportionality and risk-based principles, and provide significant flexibility to companies on how to make decisions. However, lessons from early implementation show a lack of clear understanding on this matter.

❯ Reporting begins with companies’ own materiality assessment process, which determines and narrows down the focus only to those sustainability issues that are relevant to the given company. Following a risk- based approach, the standards then guide companies to identify where severe impacts and material risks are concentrated in their operations and value chain, and focus on areas where such matters are deemed likely, rather than scrutinising every aspect. The EU standards provide basic criteria for materiality, but do not prescribe a specific process or method. Approximately 80% of the data points included in the EU standards are subject to companies’ own materiality decision.

❯ Significant flexibility has been provided to companies. The EU standards do not require companies to get primary data from actors in their value chain if it is not feasible, if it requires unreasonable effort or if such data would not be reliable. Furthermore, the EU standards do not prescribe specific value chain KPIs except for Scope 3 GHG emissions. For other material risks or impacts identified by companies in their value chain, standards leave it up to companies to determine what is material and possible to report. Standards include a 3-year transitional period during which companies do not have to report value chain information.

❯ It is of utmost importance to promote a pragmatic implementation of the ESRS, rooting out bad practices that have started to arise from some ESG service providers or audit firms using/selling overcompliance approaches that do not help companies to focus on what is really material.

❯ Standardisation is simplification: The EU standards are designed to streamline reporting processes and reduce long-term costs in the medium and long-term. While it is clear that there is a learning curve, it must be recognised that these challenges will also decrease after two or three reporting cycles. Similarly, the recurring costs are expected to be significantly lower after the first-time investment.

4. The CSRD focuses on large companies

❯ The transparency required by the CSRD and EU standards is proportionate to the company’s impacts and risks. Smaller large companies which do not operate in high risk sectors can comply with reporting requirements in a much simpler way.

❯ The EU Commission also already included extensive phase-in provisions for companies with less than 750 employees, that postpone reporting of all social information and Scope 3 GHG emissions. Furthermore, all companies, including the largest ones, do not have to report value chain information in the first 3 years.

❯ The CSRD initially included 51,000 companies out of 32 million, which translates into only 0.2% of all companies in the EU. The recent legislative update of the thresholds for defining large companies and SMEs in the Accounting Directives already led to a reduction of this number by 14%.

5. The ESRS ensure compliance with international standards

❯ The ESRS were conceived as inter-operable with global reporting standards such as GRI, ISSB and SASB. To operationalise this, Memorandums of Understanding have been signed by the EFRAG with GRI, ISSB, TNFD and collaboration with the CDP has been deepened.

❯ The ESRS are not more complex than comparable standard-setting initiatives like the GRI or ISSB, while enabling companies to report in one go under a double materiality approach that covers both risks and impacts, as prescribed separately by ISSB and GRI standards. 

The way forward: supporting smart implementation

Improving the usability of the CSRD needs to focus on prioritising smart implementation, providing useful support and guidance to companies and assurance providers. Simplification and effective implementation can be achieved through the following avenues:

Practical guidance and implementation support: the EU Commission and EFRAG should keep providing resources such as guidance, as well as maintain the FAQ platform addressing doubts and questions from companies. EFRAG already issued three Implementation Guidance documents on materiality assessment, value chain and list of ESRS datapoints. Good examples of how to jointly and efficiently implement CSRD and CSDDD could be provided.

Provision of capacity building for states: provide implementation support, capacity building and financing lines that empower Member States to assist all companies, in particular SMEs. The Commission’s 2025 Flagship Technical Support Project “Improving Sustainability Reporting for Businesses” sets a good example.

❯ Development of sector-specific standards: replace current requirements to determine sector-specific disclosures from a plethora of voluntary standards and sectoral initiatives with a sector-specific level of ESRS. These must be focused, and prioritise only the most important sectoral matters that are key for companies’ climate and environmental transition and for addressing systemic human rights issues in the value chain, thus reducing the burden and amount of information that companies need to report. Sector-specific standards will clarify and effectively limit the primary information that large companies need from their value chain.

Ensure consistency across EU law: as part of the implementation and simplification agenda, the EU Commission should assess any discrepancy in the definition or underlying methodology for transition activities. This will be highly pertinent during the planned SFDR review, the finalisation of the climate transition plan guidance (ongoing within EFRAG in connection with the implementation of the ESRS), and the upcoming guidance for the CSDDD implementation.

Generic filters
Search in excerpt