How Family Businesses Are Adapting to New Sustainability Regulations
During the 1st National Forum for Family Business, which brought together leading representatives of family companies in Bulgaria, Dimitar Dimitrov – Sales Director of Right Pack and President of the Next Generation at FBN Bulgaria – participated in a panel discussion where he openly shared the challenges that the company faces regarding sustainable development and new carbon footprint regulations.
Challenges and New Requirements
Dimitar Dimitrov highlighted that for companies like Right Pack, which work with international clients, sustainability has become an increasingly important topic. Around 60% of the company’s turnover comes from countries like Germany and France, where the requirements for sustainability and carbon footprint reporting are becoming stricter.
“Three years ago, our clients started requesting reports on the carbon footprint of our products. We haven’t fully implemented this practice yet, but this year we will officially begin tracking and reporting the carbon footprint of our products. This is a complex and challenging process that requires time and effort.” – Dimitrov shared.
Challenges in Supply Chain Traceability
One of the main difficulties for Right Pack is supply chain traceability. Paper production in Europe currently covers only 15-20% of consumption, while the remaining 80% is imported – primarily from Asia.
“It’s very challenging to verify whether the documents provided by our Asian partners, especially those from China, are entirely accurate. At the same time, European regulations are placing additional restrictions on imports from China. However, finding an alternative is difficult because paper mills in Europe are continuing to shut down.”
Employee Motivation and Engagement
Another serious challenge that Dimitrov highlighted is convincing employees of the importance of the new carbon footprint reporting requirements.
“It’s difficult to explain to employees why they need to add more work to their daily tasks. It’s crucial to convince them of the significance of sustainable development and that this is not just another obligation, but an important step toward the future of the company.”
Right Pack plans to invest in additional training and employee qualification to ensure that the team is well-prepared for the implementation of new processes and methodologies.
Incentives vs. Regulations
Dimitrov is convinced that incentives are a better mechanism for promoting sustainability compared to excessive regulations.
“I am much more in favor of incentives rather than regulations. I believe that change should be driven by the owner’s and the company’s internal conviction that this transformation is necessary, not just by imposed external rules. When people see the meaning and benefit behind it, they will be far more motivated to work in this direction.”
Where Is Sustainable Production Headed?
Right Pack is in the process of adapting to the new requirements and is actively working to reduce the carbon footprint of its products. Introducing sustainability reporting is a complex but necessary process that will give the company a competitive advantage in markets like Germany and France, where sustainable production is already a standard.
Right Pack remains committed to investing in innovation and sustainable solutions, aiming to turn sustainability into not just a regulatory requirement, but a competitive edge.
