Small businesses, big impact: Why the Australasian Recycling Label is a vital business tool in 2023

Who is ultimately responsible for recycling? Heads up, businesses: as consumer awareness of environmental issues grows, they’re throwing the focus back on you. Consumer research shows that while people are keen to do their part, they want clear advice on how to recycle their packaging. They expect the businesses they purchase from, including small businesses — to help lead sustainability efforts — authentically. And importantly, they see recycling information as a brand responsibility.

Launched in 2018, the Australasian Recycling Label (ARL) is an on-pack recycling label designed to help businesses address this challenge by giving their customers clear and simple advice on how to correctly dispose of packaging. This label helps consumers put the right packaging in the right bin — and at a time when regulators are increasingly alert to greenwashing, gives businesses confidence their claims around recycling are accurate and evidence-based.

The ARL is internationally recognised, backed by scientific research and supported by all Australian governments to make recycling easier. It is currently used by more than 700 businesses across 250,000 product ranges, though we can expect that to grow exponentially: the Federal Government’s National Plastics Plan, released in 2021, includes the target for 80% of supermarket products to carry the ARL by 2023 .

Good for customers 

People want to do the right thing. The ARL Consumer Insights report shows that 76% of Australians consider regular recycling to be the most helpful way they can support the environment. But despite this appetite for recycling, nearly half of consumers are confused about whether they’re recycling correctly, and many are crying out for more information. 

The ARL provides specific instructions about how to dispose of all parts of an item of packaging, identifying which components belong in either kerbside recycling or the rubbish bin. The ARL Consumer Insights report findings also reveal that the ARL gives consumers more confidence at the bin, particularly when facing more confusing packaging materials. For instance, while most consumers feel comfortable recycling rigid plastic and cardboard without prompting, only 43% are able to correctly dispose of aluminium foil, a figure that grows to 63% when the ARL is present. 

Good for the bottom line 

Consumers care about sustainability issues and research shows they are willing to vote with their dollar: half say they are more likely to buy a product if it has the ARL and 74% want to see the label on all packaging. 65% say that businesses should provide correct recycling information with the ARL on their packaging.

So we know customers want to see the ARL, and displaying it makes it easy for them to identify the brands they want to support. 

Good for the environment

While the ARL offers many compelling business benefits, the label’s true power lies in its potential for environmental change. 

In 2020, nearly half (45%) of all packaging produced in Australia ended up in landfill, while in 2022, 1.9 million tonnes of greenhouse emissions resulted from incorrect recycling practices. 

By designing packaging with recycling in mind, including providing accurate disposal instructions to customers, businesses can drastically reduce the likelihood of it ending up in landfill. Taking this step to educate consumers on the correct actions at the bin empowers businesses to take responsibility for the product packaging, even after it has been sold and used.

Critically, correct recycling isn’t just about keeping packaging out of landfill. It also provides a clean stream of recycled material that can be used instead of virgin materials, radically reducing our use of energy and precious finite resources such as petroleum-based plastics, metals like aluminium, or cardboard and paper products made from trees and plants. 

For businesses that are ready to show their credentials on protecting the environment, accurate packaging labelling is a critical step. The reputational and financial boost that can result from this move just makes the case all the more compelling.

Are you a small business that wants to learn more about the Australasian Recycling Label and sustainable packaging? The ARL Marketplace is a new dedicated website that contains a range of free educational tools and resources to help small businesses improve the sustainability of their packaging and adopt the ARL. Register today to find out more www.arlmarketplace.org.au.

Watch the video below for the benefits of the ARL: