uk packaging industry

The UK Packaging Industry is Set to Face Hurdles Due to Compulsory Energy Audits

The UK packaging industry is experiencing an upward growth trend for its packaging products. Due in part to growing investment in the housing and construction domain.

A steady rise in the number of retail chains has also added to the demand for the packaging of their products.

Experts predict that the UK packaging industry will grow at a yearly rate of 4% till the end of 2018. As the industry experiences such steep growth, the pressure on it to become eco- friendly is also on the rise.

Energy prices are predicted to rise further into the future. As well as this new rules forcing bigger organizations to conduct compulsory energy audits will encourage packaging companies to become smarter with respect to their energy consumption. However, many fear these measures will heavily impact company finances.

In the UK,  the new Energy Savings Opportunity Scheme (ESOS) has been introduced. This is typically a savings identification and energy assessment method for larger companies in the packaging industry.

Why Bigger Organisations in the UK Packaging Industry Need to Conduct Energy Audits?

Packaging companies with more than 250 employees or an annual turnover of £38.9m have to comply with the new rules.  There balance sheet must also show over £33.5m . The biggest challenge for these companies at this juncture is that they have just six months in hand to get ready for the upcoming audits.

If these organizations do not adhere to the audit guidelines by December 5 this year, they will have to face hefty financial penalties that could run into tens of thousands of pounds.

The worldwide packaging industry is a market that’s experiencing continuous and rapid growth.

If the packaging company complies with the ESOS audit diligently, the industry will soon be the leading sector as far as energy consumption is concerned.

This is not to be overlooked as ‘green credentials’ have become a kind of badge of honour for many consumer packaging products.

The energy it takes to produce them is now getting all the attention.

The energy savings scheme could also trigger long-term business growth for companies in the UK packaging industry. They will be able to make considerable savings in their business by managing energy consumption effectively.

Some findings show that an average firm required to comply with ESOS could save 13% of its energy costs, provided it minimises energy consumption based on the audit findings.

Thus, companies in the UK packaging industry can enjoy the benefits of ESOS.

Just as long as it is not seen as the usual ‘tick box’ exercise.

 

photo by:
Posted in Packaging News and tagged , , , .