The 2025 targets under the Australian Packaging Covenant Organisation (APCO) come into force next month, requiring e-commerce operators to demonstrate measurable progress on sustainable packaging.
2025 Targets
Covenant signatories must achieve:
- 100% reusable, recyclable or compostable packaging
- 50% average recycled content in packaging
- Phase out problematic materials (expanded polystyrene, PVC labels)
Compliance Requirements
Reporting Obligations
- Annual packaging data submission
- Material composition declarations
- Progress against targets documentation
- Action plan for non-compliant materials
Verification
- Third-party audits for major users
- Spot checks by APCO representatives
- Public disclosure of compliance status
Industry Readiness
Survey data suggests:
- 65% of retailers on track for recyclability target
- 40% meeting recycled content requirements
- Expanded polystyrene remains challenging for protective packaging
Alternatives Gaining Traction
Operators transitioning to:
- Paper-based protective packaging
- Mushroom-based cushioning materials
- Recycled cardboard solutions
- Reusable shipping container programs
Non-Compliance Implications
While not legally mandated, non-compliance risks:
- Removal from covenant membership
- Customer and retailer pressure
- ESG reporting complications
- Future regulatory disadvantage