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The eyes of ethically minded consumers are not just on the contents of the products they buy; they are scrutinising the wrapping too. In response, brands are now taking green packaging very seriously. Until recently, there has been more talk than action among designers and brand owners when it comes to overhauling product packaging to make it more environmentally friendly, with some honourable exceptions. But now food retailers and brands appear to be falling over themselves to be seen as proactive about 'citizenship' responsibilities. Reducing the impact on the environment is becoming a good way to gain stand-out.

Brewer Adnams, mobile operator O2 and food manufacturer Heinz are some of the brands to have been testing greener packs. Among retailers, Marks & Spencer has committed to reduce the amount of packaging it uses by 25% as part of a £200m five-year eco-plan, while Asda is aiming to cut its total by 5% over the same timescale. These moves are significant - according to the Waste and Resources Action Programme (WRAP), 50% of the UK's household waste originated as a purchase from a top-five supermarket. As those households throw away 5m tonnes of both packaging and food every year, the supermarket supply chain is clearly a significant source of landfill waste.

These companies' efforts reflect how green issues have moved from fringe interest to mainstream consumer concern; in doing so they have become a factor that could hit the bottom lines of those retailers and brand owners that fail to measure up. There is clear demand for such changes, according to Stuart Lendrum, print and packaging manager for Sainsbury's. 'We are pushing at an open door. Our customers tell us that packaging can have a big impact on what they buy,' he says.

The supermarket has introduced fresh design standards with the intention of reducing packaging. These now form the basis for briefing designers. 'Our starting point is not to over-package, and the packaging that we do need should be either reusable, home compostable or recyclable,' adds Lendrum.

Sainsbury's has been working with design agency BR&Me to introduce a labelling system that makes explicit in accessible language the origins and recyclability of the packaging materials it uses. Even when it cannot be recycled, the label provides a notice saying 'Sorry, not recyclable'. M&S has also committed to a clearer environmental labelling scheme.

These efforts follow the major food retailers' signing of the 2005 Courtauld Commitment to reducing packaging waste. This formed part of a ministerial summit, held at London's Courtauld Gallery, which brought together major retailers and manufacturers, including Unilever and Northern Foods, to dicsuss waste. The result was a commitment to end the growth of packaging waste by 2008 and actively reduce it by 2010.

Yet it is only now, two years on, that momentum is really building. Design agencies are reporting that manufactuers as well as retailers have begun to ask for more environmentally friendly packaging. They argue it is a change in consumer attitudes, rather than legislators' efforts, that has caused the shift. 'There has been a change. It is starting to appear in brand briefs,' says Design Bridge director of 3D branding and design Nick Verebelyi, who has been working with WRAP on developing greener food packs. 'It's beginning to be taken very seriously.'

His views are shared by Vicky Bullen, chief executive of Coley Porter Bell. 'Our feeling is that packaging is on the cusp of changing incredibly,' she says. 'Manufacturers and brands are having to match words with action - their bottom line will be down if they don't do anything about it. Consumers are starting to act and they are going to demand more.'

So what strategies are brands implementing? One obvious change in packaging over recent years has been a move toward the use of recyclable materials. Some firms are now taking the principle a step further by making packs biodegradable. Drinks company Innocent, for example, is trialling a bottle made from cornstarch, manufactured in a carbon-neutral process and compostable in about six weeks. It hopes to extend the initiative to all its bottles, and is working on greener closures.

Retailers are taking this line too. M&S has pledged to use cornstarch-derived plastic as well as other types that are easy to recycle or compost. Sainsbury's, which has been pioneering biodegradable packs since 2001, is planning to use compostable packaging for 500 of its own-label goods. 'Technically it has to perform and be right for the occasion - that's quite a challenge,' admits Lendrum.

Another green strategy for pack design is 'lightweighting', or reducing bulk. This is a crucial point as the Local Government Association estimates that the UK could run out of landfill space by 2016. There are signs that progress has been made: average yoghurt pot weights, for example, have decreased from 12g to 3g, according to Jane Bickerstaffe, director of The Industry Council for Packaging and the Environment.

Adnams and designers Cook Chick recently overhauled the brewer's beer bottles. The result is a 299g glass bottle, down from 455g, which is slightly shorter and stronger than its predecessor. The reduction in the amount of glass used in the manufacturing process has also cut Adnams' carbon emissions, and now that the bottles are lighter, less fuel is used during their transport. Adnams marketing manager Ed Hume admits there was an 'element of sacrifice' - some embossing on the bottles has been lost - but the distribution and environmental gains made it worthwhile.

Heinz, a signatory to the Courtauld Agreement, has worked with WRAP, steel manufacturer Corus and supplier Impress to make the ends of its cans more lightweight, resulting in savings of 1400 tonnes of steel and £404,000 a year. It is now looking at making a similar change to the rest of the can.

The cost savings are a vital aspect. Trevor Bradford, director of Creative Leap, argues that this, rather than green principles, is driving some of the shift toward lightweighting. 'It is in the clients' interests to take the costs out of packaging and it tends to correspond with green consciousness, from which they can get some mileage,' he says.

Overtly green packaging may be a good fit for brands that have a strongly ethical or homespun positioning, but gifting brands accustomed to using layers of packaging to evoke a luxury experience or FMCG names given to putting their logos on bleached white packs are a different matter. Here, the aesthetic aspect of packaging may not yet tally with environmental demands. However, Verebelyi is optimistic that greener thinking will permeate these sectors. 'We are at the dawn of a new aesthetic that almost celebrates the less-than-white look - the green aesthetic.' Indeed, Bullen expects a shift away from lavishness toward graphics, language and iconography.

Greener packaging is a complex area, and the signs are that marketers have much to learn. A survey of those in the industry, commissioned by the Metal Packaging Manufacturers Association, found that 27% of respondents thought an association with a positive environmental or recycling issue would do most to boost sales. But only 5% thought metal was easy and efficient to recycle - in fact, it is second only to cardboard in this respect.

Marketers will have to do their homework if they are to ensure that their green intentions are realised in the finished product. Bickerstaffe points out that no material has a monopoly on virtue. A material cannot be judged solely on how it is disposed of; its production and distribution are also key to its environmental impact. 'Green issues are often grey - and that's definitely the case with packaging materials,' she says.

Design agencies have a clear opportunity to take the lead and advise clients. Jones Knowles Ritchie has been researching green packaging case studies as ammunition for discussions with clients. The agency's innovation director, Robert Monaghan, says that rather than seeking to match packaging companies' technical expertise, designers have a great opportunity to 'translate technical possibilities into brand advantage'.

The best designs will be those that combine a greener approach with other benefits, be they cost, as with the Heinz can, or convenience, as with O2's packaging for Nokia phones (see case study). At the heart of these designs will be good strategic thinking. 'The sustainable challenge simply involves harder design and better thinking,' concludes Verebelyi. 'But it is absolutely achievable.'

CASE STUDY - O2

Greener packaging does not equate only to the use of greener materials, as demonstrated by O2's phone packaging in conjunction with Nokia. The streamlined pack brought benefits across the board, simply by being able to fit through most letter boxes.

As well as reducing pack materials by 23%, the design led to energy savings through fewer delivery journeys, and a fall in the number of product returns because of the higher chance of first-time delivery.

The project came about when O2 investigated how it could improve postal delivery of its phones. The usual packaging was too bulky because it contained a phone charger. So, instead of automatically sending a charger out with the new phone, O2 asked consumers to opt in to receive one. 'We realised we could reduce the packaging, vehicle journeys, the number of chargers and, most important, improve customer experience,' says supply chain general manager Peter Duggan.

As first-time deliveries rose from 86% to 99%, Nokia saved one in three vehicle journeys during a trial delivery of 35,000 boxes. The second phase of the programme is now under way, with the intention of generating even greater environmental benefits. 'We are going to make it even better, reducing the packaging further by reducing the collateral within the box,' says Duggan.

All the packaging material will be both recycled and recyclable. The proportion of point-of-sale material that is made from recycled material has increased from 20% to 90% in 18 months. The reduction in the number of consumers wanting to return phones, because of the swifter delivery, has also improved satisfaction levels. In time, O2 believes it can extend the concept to cater for other handset manufacturers as well as Nokia. Moreover, the greener O2 packaging requires no effort on the part of consumers.

'If it's convenient, most of us will do anything to help the environment. The predicament arises if it isn't easy,' argues Duggan. 'In this situation, the customer doesn't have to do anything.'

The project took the Grand Prix at last November's inaugural Green Awards, which reward brands for finding ways to communicate sustainably. It beat competition from other category winners including BSkyB, Marks & Spencer, Transport for London, Co-operative Bank and Saab to take the prize.

ESSENTIALS - WRAP

WRAP is a not-for-profit government-funded agency set up to reduce household waste and encourage greater use of recycled material. Initiatives include:

- A consumer ad campaign through Team Saatchi (above).

- An £8m innovation fund to finance projects to reduce household waste. Previous recipients of cash include Coca-Cola and Tesco; WRAP is currently looking for new schemes to back.

- A series of events for retailers and brands. The aim is to explain the opportunities for using recycled material and reducing waste.