Berry Global Group, Inc. (BERY) PESTLE Analysis

Berry Global Group, Inc. (Bery): Análise de Pestle [Jan-2025 Atualizado]

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Berry Global Group, Inc. (BERY) PESTLE Analysis

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No mundo dinâmico da embalagem global, o Berry Global Group, Inc. (Bery) fica na encruzilhada de inovação, sustentabilidade e adaptação estratégica. Essa análise abrangente de pilões revela o intrincado cenário de desafios e oportunidades que moldam a trajetória da empresa, desde tensões geopolíticas e incertezas econômicas a avanços tecnológicos e imperativos ambientais. Mergulhe em uma exploração de como a Berry Global navega na complexa interação de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que definem sua vantagem competitiva na indústria de embalagens em rápida evolução.


Berry Global Group, Inc. (Bery) - Análise de Pestle: Fatores Políticos

Impacto potencial das políticas comerciais e tarifas na fabricação global de embalagens

O Berry Global Group enfrenta desafios significativos das políticas comerciais internacionais. A partir de 2024, os EUA mantêm tarifas sobre importações de plástico e embalagem da China, variando de 7,5% a 25%. As operações globais da empresa são impactadas por essas restrições comerciais.

País Taxa tarifária Impacto na Berry Global
China 25% Aumento dos custos de produção
União Europeia 6.5% Complexidade da cadeia de suprimentos
México 0% Vantagem potencial de fabricação

Tensões geopolíticas que afetam operações internacionais da cadeia de suprimentos

A cadeia de suprimentos internacional da Berry Global enfrenta interrupções de tensões geopolíticas em andamento. A empresa opera em 16 países com ambientes regulatórios complexos.

  • Conflito da Rússia-Ucrânia: aumento dos custos de envio em 22%
  • Tensões comerciais dos EUA-China: 18% das despesas de reconfiguração da cadeia de suprimentos
  • Instabilidade política do Oriente Médio: 15% Logística Risco Premium

Mudanças regulatórias nos mandatos de conformidade ambiental e sustentabilidade

Os regulamentos ambientais afetam significativamente os processos de fabricação da Berry Global. A diretiva de embalagem plástica da UE requer uma taxa de reciclagem de 55% até 2030, afetando diretamente as estratégias de produção da empresa.

Regulamento Custo de conformidade Linha do tempo da implementação
Diretiva de embalagem de plástico da UE US $ 47,3 milhões 2025-2030
Mandato de reciclagem da Califórnia US $ 22,6 milhões 2024-2027

Incentivos do governo para a inovação em fabricação e tecnologias de reciclagem

Os incentivos do governo fornecem apoio financeiro para inovações sustentáveis ​​de manufatura. A Berry Global pode aproveitar esses programas para compensar os custos de conformidade.

  • Grant do Departamento de Inovação Energética dos EUA: US $ 15,2 milhões
  • Fundo Europeu de Tecnologia Verde: € 9,7 milhões
  • California Recycling Technology Incentivo: US $ 6,5 milhões

Berry Global Group, Inc. (Bery) - Análise de Pestle: Fatores Econômicos

Custos de matéria -prima flutuantes que afetam as despesas de produção de embalagens

Em 2023, o Berry Global Group experimentou uma volatilidade significativa do preço da matéria -prima. Os preços do polipropileno variaram de US $ 1.100 a US $ 1.450 por tonelada métrica. Os custos com tereftalato de polietileno (PET) flutuaram entre US $ 1.250 e US $ 1.600 por tonelada.

Matéria-prima Faixa de preço 2023 ($/METRIC TON) Impacto médio de custo
Polipropileno 1,100 - 1,450 +12,7% de aumento de custo de produção
Tereftalato de polietileno 1,250 - 1,600 +15,2% de aumento de custo de produção

Incerteza econômica global que influencia a demanda de embalagens de consumidores

O tamanho do mercado global de embalagens foi estimado em US $ 909,5 bilhões em 2023, com taxa de crescimento projetada de 4,2% ao ano. A receita da Berry Global para o ano fiscal de 2023 atingiu US $ 16,8 bilhões, refletindo os desafios do mercado.

Indicador econômico 2023 valor Mudança de ano a ano
Tamanho global do mercado de embalagens US $ 909,5 bilhões +4.2%
Receita global de Berry US $ 16,8 bilhões +3.5%

Pressões inflacionárias que afetam os custos operacionais e de transporte

A taxa de inflação dos EUA em 2023 foi de 3,4%. Os custos de transporte da Berry Global aumentaram 7,2%, com os preços do combustível a diesel com média de US $ 4,15 por galão.

Componente de custo 2023 valor Impacto da inflação
Taxa de inflação dos EUA 3.4% Pressão econômica moderada
Custos de transporte +7.2% Despesa operacional significativa
Preço de combustível a diesel US $ 4,15/galão Despesas de logística mais altas

Riscos potenciais de recessão nos principais segmentos de mercado

O segmento de embalagem de bens de consumo mostrou resiliência com crescimento de 3,8%. O mercado de embalagens industriais contratou 2,1% devido a incertezas econômicas.

Segmento de mercado 2023 Taxa de crescimento Nível de risco econômico
Embalagem de bens de consumo +3.8% Baixo risco
Embalagem industrial -2.1% Alto risco

Berry Global Group, Inc. (Bery) - Análise de Pestle: Fatores sociais

Crescente preferência do consumidor por soluções de embalagem sustentáveis ​​e ecológicas

Em 2023, 74% dos consumidores estão dispostos a pagar mais por embalagens sustentáveis. O Berry Global Group respondeu desenvolvendo soluções de embalagem ecológicas, com US $ 1,2 bilhão investido em pesquisa e desenvolvimento sustentável de embalagens.

Segmento de mercado de embalagens sustentáveis Valor de mercado (2023) Taxa de crescimento projetada
Embalagem reciclável US $ 268,5 bilhões 6,8% CAGR
Embalagem biodegradável US $ 122,7 bilhões 8,3% CAGR

Crescente demanda por materiais de embalagem leves e recicláveis

Berry Global Group relatou Redução de 37% no peso da embalagem nas linhas de produtos. O mercado de embalagens leves deve atingir US $ 303,5 bilhões até 2025.

Tipo de material de embalagem Quota de mercado Taxa de reciclagem
Embalagem plástica 42.3% 14.2%
Embalagem baseada em papel 33.6% 68.7%

Mudança de dados demográficos da força de trabalho e dinâmica do mercado de trabalho

O Berry Global Group emprega 19.300 trabalhadores em 130 locais de fabricação. A composição da força de trabalho mostra:

  • Millennials: 42% da força de trabalho
  • Gen X: 33% da força de trabalho
  • Baby Boomers: 18% da força de trabalho
  • Gen Z: 7% da força de trabalho

Consciência do consumidor sobre o impacto ambiental no design de embalagens

Consciência ambiental do consumidor conduziu Aumento de 45% na demanda por soluções de embalagem sustentável. O Berry Global Group se comprometeu com 50% de conteúdo reciclado na embalagem até 2030.

Métrica de embalagem ambiental Desempenho atual Ano -alvo
Conteúdo reciclado 28% 2030
Redução de emissões de carbono 22% 2030

Berry Global Group, Inc. (Bery) - Análise de Pestle: Fatores tecnológicos

Investimento em Reciclagem Avançada e Tecnologias de Economia Circular

O Berry Global Group investiu US $ 45,2 milhões em tecnologias de reciclagem em 2023. As iniciativas de economia circular da empresa focavam no desenvolvimento de recursos avançados de reciclagem, com uma meta de 25% de conteúdo reciclado em materiais de embalagem até 2025.

Categoria de investimento em tecnologia Valor do investimento (2023) Impacto projetado
Tecnologias avançadas de reciclagem US $ 45,2 milhões 25% de conteúdo reciclado até 2025
Infraestrutura de reciclagem química US $ 22,7 milhões Reduza o uso de plástico virgem em 15%

Automação e transformação digital em processos de fabricação

A Berry Global implementou a automação de processos robóticos em 67 instalações de fabricação, resultando em um aumento de 12,3% na eficiência operacional. A empresa implantou 423 robôs industriais em 2023, representando um investimento de US $ 38,6 milhões na automação de fabricação.

Métrica de automação 2023 dados
Total de instalações de fabricação 67
Robôs industriais implantados 423
Investimento de automação US $ 38,6 milhões
Aumento da eficiência operacional 12.3%

Implementação de IA e aprendizado de máquina na otimização da cadeia de suprimentos

A Berry Global investiu US $ 16,5 milhões em tecnologias de IA e aprendizado de máquina para otimização da cadeia de suprimentos. A Companhia implementou sistemas de análise preditiva que reduziram os custos de transporte de estoque em 8,7% e melhoraram a precisão da previsão da demanda em 14,2%.

Aplicação de tecnologia da IA Investimento Melhoria de desempenho
Analítica preditiva da cadeia de suprimentos US $ 16,5 milhões Redução de custo de estoque: 8,7%
Previsão de demanda IA US $ 7,3 milhões Previsão de precisão: 14,2%

Desenvolvimento de materiais de embalagem inovadores e tecnologias de design

A Berry Global alocou US $ 53,4 milhões à pesquisa e desenvolvimento de tecnologias inovadoras de embalagens em 2023. A Companhia desenvolveu 17 novas soluções de embalagem sustentável com impacto ambiental reduzido, concentrando -se em materiais leves e projetos recicláveis.

Categoria de inovação em embalagem Investimento em P&D Novas soluções desenvolvidas
Tecnologias de embalagem sustentáveis US $ 53,4 milhões 17 novas soluções
Desenvolvimento de material leve US $ 22,1 milhões 9 inovações materiais

Berry Global Group, Inc. (Bery) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos ambientais internacionais

O Berry Global Group investiu US $ 85,3 milhões em iniciativas de sustentabilidade para atender às regulamentações ambientais internacionais em 2023. A Companhia mantém a conformidade com:

  • Regulação de resíduos de embalagem e embalagem da UE
  • Transparência da Califórnia na Lei das Cadeias de Suprimentos
  • Lei de Conservação e Recuperação de Recursos (RCRA)
Regulamento Custo de conformidade Status de conformidade
Diretiva de embalagem da UE US $ 42,6 milhões 100% compatível
Regulamentos da EPA nos EUA US $ 23,7 milhões 98% compatível
Padrões globais de reciclagem US $ 19 milhões 95% compatível

Proteção de propriedade intelectual para embalagens inovações

A Berry Global detém 287 patentes ativas a partir de 2024, com uma carteira de propriedade intelectual avaliada em US $ 163,4 milhões. A distribuição de patentes inclui:

Categoria de patentes Número de patentes Valor estimado
Tecnologia de embalagem 156 US $ 89,2 milhões
Materiais sustentáveis 73 US $ 41,6 milhões
Processos de fabricação 58 US $ 32,6 milhões

Riscos potenciais de litígios relacionados à sustentabilidade ambiental

Riscos atuais de litígios e despesas legais associadas:

Tipo de litígio Despesas legais estimadas Nível de risco
Disputas de conformidade ambiental US $ 7,3 milhões Médio
Desafios de sustentabilidade da cadeia de suprimentos US $ 4,9 milhões Baixo
Controvérsias de gerenciamento de resíduos US $ 5,6 milhões Médio-baixo

Adesão aos padrões de comércio e fabricação globais

A Berry Global demonstra conformidade com os padrões internacionais de fabricação em 17 países, com o investimento total de conformidade de US $ 62,5 milhões em 2023.

Padrão Investimento de conformidade Cobertura global
ISO 9001: 2015 US $ 18,3 milhões 14 países
ISO 14001: 2015 US $ 22,7 milhões 12 países
Regulamento de alcance US $ 21,5 milhões União Europeia

Berry Global Group, Inc. (Bery) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir a pegada de carbono nos processos de fabricação

O Berry Global Group se comprometeu a reduzir as emissões de gases de efeito estufa por 50% até 2030 em suas operações globais. As atuais emissões de carbono da empresa são de 1,2 milhão de toneladas anualmente.

Ano Emissões de carbono (toneladas métricas) Porcentagem de redução
2022 1,200,000 Linha de base
2023 1,140,000 5%
2024 (projetado) 1,080,000 10%

Desenvolvimento de soluções de embalagem recicláveis ​​e biodegradáveis

A Berry Global investiu US $ 45 milhões no desenvolvimento de tecnologias de embalagens recicláveis. A empresa atualmente produz 3,2 bilhões unidades de embalagem recicláveis ​​anualmente.

Tipo de embalagem Volume anual de produção Porcentagem de reciclabilidade
Recipientes de plástico 1,5 bilhão de unidades 85%
Embalagem biodegradável 750 milhões de unidades 95%
Embalagem sustentável 950 milhões de unidades 90%

Investimento em iniciativas de economia circular e redução de resíduos

Berry Global alocou US $ 78 milhões Para iniciativas de economia circular em 2024. A empresa pretende desviar 65% de resíduos de fabricação de aterros sanitários.

Iniciativa Valor do investimento Meta de redução de resíduos
Infraestrutura de reciclagem US $ 35 milhões 40%
Programas de desperdício em energia US $ 23 milhões 15%
Recuperação de material US $ 20 milhões 10%

Alinhamento com objetivos globais de sustentabilidade e proteção ambiental

A Berry Global se comprometeu com os Objetivos de Desenvolvimento Sustentável das Nações Unidas, com foco específico na ação climática e no consumo responsável. A empresa alcançou 30% de suas metas de sustentabilidade de 2030.

Meta de sustentabilidade Porcentagem de progresso Ano -alvo
Adoção de energia renovável 35% 2030
Conservação de água 25% 2030
Neutralidade de carbono 20% 2040

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Social factors

You're looking at how public sentiment is reshaping the packaging game, and for Berry Global Group, Inc., that means sustainability isn't just a nice-to-have; it's the core business driver now. Honestly, the pressure from consumers and regulators is intense, pushing the entire market. We are seeing consumer demand for sustainable packaging increasing, which is driving a reported 45% market shift toward eco-conscious options. That's a massive pivot you need to account for in your strategy.

It's not just about vague greenwashing, either. Shoppers are putting their money where their mouth is; a 2023 study showed that 71% of shoppers deliberately chose products with sustainable packaging. This isn't a fleeting trend; it's the new baseline for brand trust. It's a tough environment, but it's also where the biggest growth opportunities live.

Strategic Focus Post-HHNF Spin-off

The spin-off and subsequent merger of Berry Global Group, Inc.'s Health, Hygiene and Specialties Global Nonwovens and Films business (HHNF Business) with Glatfelter Corporation, creating Magnera Corporation, was finalized on November 4, 2024. This move was strategic, allowing Berry Global to sharpen its focus squarely on consumer-facing packaging solutions. So, the emphasis is now heavily weighted toward Fast-Moving Consumer Goods (FMCG) packaging, where consumer scrutiny on materials is highest. Here's the quick math on their current FMCG commitment: they ensured 93% of FMCG packaging is either recyclable or has a validated recyclable alternative as of their 2024 report. What this estimate hides is the ongoing work to get that final 7% across the line.

This focus means capital and R&D dollars are flowing into areas that directly impact the shelf appeal and end-of-life story for everyday products. You can see this commitment in their material sourcing changes.

  • Increased Post-Consumer Resin (PCR) purchases by 43% year-over-year.
  • Bioplastics purchases jumped by 130% year-over-year.
  • PCR now makes up 5.1% of total volume.

Evolving Design Preferences: Mono-Material and Refillable

Consumers are actively rejecting packaging that looks overly complex or wasteful, demanding designs that are inherently easier to manage post-use. This translates directly into a preference for mono-material structures-think packaging made entirely of polyethylene or polypropylene-because they are simpler to recycle than multi-layer options. Plus, the desire for reuse is strong; data suggests 79% of consumers are likely to purchase a product based on a refillable packaging claim. You need to be designing for this reality, not for the packaging of five years ago.

Berry Global Group, Inc. is actively responding to this by redesigning components, such as switching Heinz ketchup closures to a mono-material polypropylene design to eliminate silicone, which aids recyclability. This shows they are moving beyond just using recycled content to fundamentally changing the material makeup of their products.

Social Governance and Investor Perception

Social factors aren't just about the end consumer; they heavily influence who is willing to invest in your company. A key indicator of strong social governance (the 'S' in ESG) is how rating agencies view your operations and stakeholder management. Berry Global Group, Inc. saw its MSCI ESG rating upgraded to AA in its March 2025 report, a significant step up from the 'A' rating it held previously. This upgrade signals to socially conscious investors that the company is managing its financially relevant ESG risks effectively. This is a big win for attracting capital from funds increasingly mandated to prioritize high ESG performers.

Here is a snapshot of some of the key metrics driving this social and environmental perception as of the latest reporting:

Metric Value/Status (as of 2024 Report) Significance
MSCI ESG Rating AA Attracts ESG-focused institutional capital.
FMCG Packaging Recyclable/Alternative 93% Meets high consumer/brand owner expectations.
Scope 1 & 2 Emissions Reduction (vs. 2019) 28.3% Surpassed the 2025 target of 25% early.
Consumer Preference for Refillable Claims 79% Likely to Purchase Directly impacts product demand.

The shift in consumer values is non-negotiable, and it directly impacts your cost of capital and customer retention. If your product portfolio isn't visibly aligning with these social demands, your market share will erode. Finance: draft the 13-week cash view by Friday, specifically modeling the capital expenditure required to accelerate mono-material line conversions.

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Technological factors

You're looking at how Berry Global Group, Inc. is using science and engineering to navigate the massive shift toward sustainability and digital integration in packaging. Technology isn't just about efficiency here; it's about survival and meeting brand owner demands for circularity. The company's tech investments are directly tied to its ability to deliver on its ambitious 2025 circularity goals.

Proprietary CleanStream® technology is used for mechanically recycling household polypropylene waste

Berry Global's proprietary CleanStream® technology is a game-changer for polypropylene (PP) recycling. This mechanical recycling process takes domestically recovered household PP waste and turns it into high-purity recycled material suitable for contact-sensitive applications, like food and beauty packaging. This is crucial because, until recently, only rPET (recycled PET) achieved that high standard at scale. The facility in Leamington Spa, U.K., is a major asset, capable of recycling nearly 40% of all UK domestic PP waste collected in recycling bins. The resulting material offers a significant environmental benefit, boasting approximately 35% lower carbon dioxide (CO₂) emissions compared to virgin plastic, which translates to a net CO2 saving of over 13,000 tonnes annually from the material produced at that site alone. That's real, quantifiable impact.

R&D investment of $53.4 million (2023 data) focuses on lightweight and recyclable materials

Research and Development spending is the engine for future product design. While the last reported figure you have is $53.4 million from the 2023 fiscal year, the focus remains squarely on material science innovation to meet sustainability mandates. For context, the company reportedly scaled this investment to $100 million in 2024, specifically targeting eco-friendly packaging. This capital is deployed to develop lighter-weight solutions-reducing material use and shipping costs-and to engineer packaging that fits seamlessly into established recycling streams. Think of it as spending money now to avoid future regulatory fines and capture premium, eco-conscious customers. It's a defintely necessary expense.

Development of mono-material packaging, like the redesigned Heinz ketchup closure, enhances recyclability

The industry is moving away from complex, multi-layer laminates that are difficult to recycle. Berry Global is responding by pushing mono-material structures-packaging made from a single type of polymer, like all-polypropylene or all-polyethylene. A concrete example of this is the redesigned Heinz ketchup closure, which eliminated non-recyclable silicone in favor of a mono-material polypropylene design, making the whole unit easier to process. Furthermore, Berry unveiled ClarityGuard™ shrink film in February 2025, which is a mono-PE collation wrap containing 50% post-consumer resin (PCR). This focus on single-polymer design is a direct response to market signals and recycling infrastructure capabilities.

Incorporating smart packaging features (e.g., RFID, QR codes) is an emerging industry trend for traceability

Packaging is becoming a digital interface, not just a container. This trend, known as smart packaging, uses embedded tech like RFID tags and QR codes to provide traceability, monitor conditions, and engage consumers. The global smart packaging market was valued at approximately $24.28 billion in 2025, showing significant capital flow into this area. For Berry's customers, especially in the highly regulated healthcare sector-which holds about 30% of the smart packaging market share-these features are becoming non-negotiable for anti-counterfeiting and compliance. Honestly, the ability to offer QR codes that capture direct consumer data is now a marketing must-have, with reports suggesting 95% of businesses use QR technology for data capture as of 2025.

Here's a quick look at how these technological advancements stack up:

Technology Initiative Key Metric / Value Year of Data Impact Area
CleanStream® Capacity (UK) Nearly 40% of UK domestic PP waste 2024/2025 Circular Economy / Material Supply
CleanStream® CO2 Reduction ~35% lower emissions vs. virgin plastic 2024/2025 Sustainability / ESG Performance
R&D Investment (Reported) $53.4 million 2023 Innovation Pipeline / Material Science
ClarityGuard™ PCR Content 50% post-consumer resin 2025 Mono-Material Recyclability
Global Smart Packaging Market Size $24.28 billion 2025 Industry Trend / Digital Integration

What this estimate hides is the capital expenditure required to scale these proprietary systems globally, which is a major factor in the post-merger entity's future cash flow projections. Still, the technology itself is sound and addresses the biggest external pressure point: plastic waste.

Finance: draft 13-week cash view by Friday

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Legal factors

You are navigating a legal landscape that is rapidly shifting from suggestion to strict requirement, especially around packaging waste. For Berry Global Group, Inc., this means compliance isn't just about good PR; it's about avoiding real financial penalties and securing future feedstock supply. The legal environment is now dictating material science choices.

North American state-level Extended Producer Responsibility (EPR) laws mandate recycled content use.

The proliferation of Extended Producer Responsibility (EPR) laws across the U.S. is a major legal headwind that directly impacts your operational costs. These laws shift the financial burden of end-of-life packaging management from municipalities back to you, the producer. As of late 2025, seven states have enacted comprehensive packaging EPR laws, including Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington.

These laws often come with teeth. For instance, in Oregon, enforcement began July 1, 2025, with noncompliance penalties potentially reaching up to $25,000 per day. To stay ahead of these mandates and the associated fees, Berry Global Group, Inc. previously committed to securing access to 600 million pounds of post-consumer recycled content by 2025. This is a direct, quantifiable response to the legal pressure to increase material circularity.

EU Plastic Packaging Directive requires a 55% recycling rate for plastic packaging by 2030.

Over in Europe, the legal framework is even more prescriptive. The EU's Packaging Waste Directive sets a material-specific recycling target for plastics at a minimum of 55% by the year 2030. This is part of a broader goal to recycle at least 70% of all packaging waste by that same year.

To put this in perspective against Berry Global Group, Inc.'s internal goals, the company had set a target to use 10% post-consumer recycled (PCR) resin by 2025, which it has since surpassed with a 2030 goal of 30% circular plastics use. The EU's 55% plastic target for 2030 means that relying solely on mechanical recycling for all plastic types, especially polyolefins, will be insufficient; advanced recycling solutions will be legally necessary to meet the food-grade requirements that are also being tightened.

Here's a quick look at the EU plastic recycling targets:

Material Category 2030 Minimum Recycling Target (by weight)
All Packaging Waste 70%
Plastics 55%
Glass 75%
Paper and Cardboard 85%

Proliferation of state laws classifying advanced recycling as a manufacturing process creates regulatory clarity.

The regulatory treatment of advanced recycling-chemical processes that break down plastic waste into feedstock-is a critical legal differentiator for capital investment. The classification determines whether a facility is subject to less burdensome manufacturing permitting or stricter solid waste disposal regulations. As of 2025, 27 states have designated advanced recycling as a form of manufacturing, which exempts these facilities from certain solid waste disposal requirements.

This regulatory clarity is what spurs investment. For example, some states have explicitly defined advanced recycling facilities as manufacturing facilities that convert post-use polymers using processes like pyrolysis. However, this is not universal; states like Maine, New Jersey, and New Mexico have taken the opposite route, treating it as solid waste processing, which creates operational hurdles. For Berry Global Group, Inc., the trend toward a manufacturing classification in a majority of states provides the necessary legal certainty to pursue large-scale chemical recycling partnerships.

The legal landscape for advanced recycling facilities:

  • Manufacturing Classification: 27 states exempt facilities from solid waste disposal rules.
  • Solid Waste Classification: Maine, New Jersey, and New Mexico subject facilities to stricter environmental rules.
  • Benefit: Classification as manufacturing encourages private investment in recycling infrastructure.

Finance: draft a memo by next Tuesday outlining the projected compliance cost increase for any packaging sold in Oregon and California based on the 2024 shipment volumes.

Berry Global Group, Inc. (BERY) - PESTLE Analysis: Environmental factors

When we look at the environmental side of the ledger for Berry Global Group, Inc., the story in 2025 is one of aggressive target-hitting, especially on the climate front. You need to know that they've already moved the goalposts on their own targets, which is a strong signal to the market about their operational focus.

Scope 1 and 2 Absolute Emissions Reduction

Berry Global Group, Inc. has made real headway in cutting down the emissions coming directly from their operations (Scope 1) and the power they buy (Scope 2). They have reduced their absolute Scope 1 and 2 emissions by 28.3% when compared to their 2019 baseline. Honestly, this is a big deal because it means they have already surpassed their stated 2025 reduction target of 25%, hitting it two years early. This kind of performance suggests that investments in energy efficiency and renewable sources are paying off faster than planned. That's a clear win for near-term risk management related to carbon exposure.

Post-Consumer Resin (PCR) Integration

The push for circularity is visible in their material sourcing, specifically with post-consumer resin (PCR). They reported a significant jump in using this recycled material. Purchases of PCR increased by 43% year-over-year, pushing its share to 5.1% of their total resin volume. This shows they are actively working to reduce reliance on virgin, fossil-based plastics, which is a key lever for managing future regulatory and reputational risk. Still, you should note their stated goal for PCR content in their single-use consumer goods portfolio is 10% by 2025, so they still have ground to cover in the final stretch of the year.

Packaging Recyclability and Design for Circularity

For the consumer-facing side of the business, the focus is on making sure the packaging they produce can actually be recycled. As of 2024, 93% of their Fast-Moving Consumer Goods (FMCG) packaging is either recyclable or has a validated recyclable alternative. This is a tangible metric that speaks directly to brand owner demands and evolving Extended Producer Responsibility (EPR) schemes across Europe and North America. It's not just about the material inside; it's about the entire package lifecycle. Here's a quick look at how some of these key environmental metrics stack up:

Environmental Metric Value/Status Reporting Period/Baseline
Scope 1 & 2 Emissions Reduction 28.3% Reduction vs. 2019 Baseline (2025 Target Surpassed)
Post-Consumer Resin (PCR) Usage 5.1% of Total Volume 2024 Data (43% YoY Increase)
FMCG Packaging Recyclability 93% Recyclable/Validated Alternative As of 2024
Renewable Energy Usage Increase 31% Year-over-Year Latest Report

Investment in Recycling Infrastructure

To secure the supply of high-quality recycled material needed to meet those PCR targets, Berry Global Group, Inc. is putting capital to work. A prime example is the significant investment in the Berry Circular Polymers facility located in the U.K. This site uses their proprietary CleanStream® technology to process domestically recovered polypropylene waste into recycled plastic suitable for contact-sensitive applications. The facility is designed to recycle nearly 40% of all polypropylene waste collected from domestic recycling bins in the U.K. This move de-risks their supply chain for circular materials and positions them as a key enabler for their large consumer goods customers.

If the onboarding of new PCR suppliers slows down due to material quality issues, the internal capacity at the U.K. facility becomes even more critical for hitting the 10% PCR goal for 2025. Finance: draft a sensitivity analysis on the cost of virgin vs. internal PCR sourcing for Q3 2025 by next Tuesday.


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