“This session is probably the one I am most excited about. In every conversation, the word sustainability comes up,” said PSFK Founder Piers Fawkes. “We hear it on the stages, we hear it in the corridors, we hear it on the floor. But I don’t think many of us really know how to leverage it, how to really use it. What do we do with all these products? How do we return these products? What happens then?”   Everything can be recycled, it’s just a question of whether it’s profitable to do so.   TerraCycle CEO Tom Szaky has the answers. TerraCycle’s new Loop initiative is a circular shopping platform that lets consumers shop online for household goods in durable, reusable packaging that can later be picked up, refilled and redelivered. Loop has allowed leading CPG brands including Tide, Häagen-Dazs and Clorox to eliminate single-use packaging, replacing it with reusable, recycled materials such as stainless steel and reengineered plastic. In addition, stores such as Carrefour in France and Kroger and Walgreens in the United States are stocking Loop packaged items.   “Everything can be recycled, it’s just a question of whether it’s profitable to do so,” Szaky said. “An infinitely durable item is infinitely profitable.”   Accommodating the desires of eco-minded consumers has also presented exciting new business opportunities for brands like Patagonia. “Historically these circular supply chains and business models used to be a competitive edge for brands like Patagonia, but going forward, I firmly believe that they are going to be a means for companies, brands and retailers to survive,” said Patagonia’s Head of Corporate Development Phil Graves. Repairing, reselling, upcycling and recycling has been part of the outdoor retailer’s business model since the 1970s; Patagonia has 70 global repair centers that fix more than 100,000 items every year.   In 2017, Patagonia went all in on re-commerce and launched the Worn Wear resell business unit. Customers can take Patagonia items to a store or mail it in and receive a gift card for the item. The item is then handed off to logistics and technology startup Yerdle, where it is inspected, cleaned, photographed, stocked in inventory and posted for sale online. “Since 2017, we have kept more than 130,000 used items in play and given them a second life,” Graves said. “As a brand, we love that we get to control the entire customer experience and ensure that it is top notch.” That brand control is an important component in re-commerce, noted Yerdle CEO Andy Ruben. “Because third-party marketplaces buy these products back from all of us, we’re in a moment where there is no longer brand control of how the products are showing up in the world,” Ruben said. “It’s why I’m increasingly convinced that brands and retailers must own their re-commerce. They must have control of their experience.”   Branded re-commerce is certainly working for Patagonia: The Worn Wear business unit has had 40 percent growth in revenue and profitability since it launched, Graves said, and has attracted customers that are on average 10 years younger than the typical Patagonia customer. To build on that momentum, Patagonia launched its first Worn Wear pop-up store in Boulder, Colo., in November and created a new line of products made from clothing that was beyond repair, the ReCrafted Collection. “Buying used is in,” Graves concluded.

The reusable shopping platform, which launched with big hype and is now eyeing retail, has already raised one key question in its early days: What are the true costs of convenience? Tom Szaky, CEO of recycling company Terracycle, firmly believes that ditching disposable packaging doesn’t have to mean disposing of its benefits. Affordability, mainstream selection, "having the cool, new thing," and, most of all, convenience, are all elements of modern retail Szaky feels can be preserved in a package-free economy. Brands, he believes, just need the right model. In May, Terracycle launched a venture in circular economy shopping called Loop, bringing mainstream food and personal care products to consumers’ doorsteps in reusable, refillable packaging. The products come from some of the world’s biggest plastic polluters as defined by a 2018 Greenpeace audit across six continents. The idea has been to even out a skewed playing field between disposable and reusable packaging options, turning the complicated process of refilling and returning empty containers into a simple, one-click act. Since the launch, Loop has been hailed as a new take on "the milkman," a nostalgic reference to the dairy industry’s unique, circular model of distribution that once had so much consumer buy-in across the United States. Yet far from the simple routes of the neighborhood milkman, Loop is reverse engineering circularity onto products and supply chains designed for recycling or disposability. Its direct-to-consumer trial has been a virtuosic case study in marketing and reverse logistics. But the pilot – the object of much hype in the last six months, with a reported waitlist of 85,000 – was never designed to exceed 5,000 households in North America and another 5,000 in France. The company is planning to launch a more integrated approach and expand into multiple new countries next year. And while TerraCycle says it is too early to know how these pilots will perform, many in the recycling sector are curious to see just how disruptive this concept might be. The experiment, as it has unfolded until now, begs a pressing question: What are the true environmental and logistical costs of convenience? Rethinking convenience Szaky has good reason to want to bring convenience to a niche, package-free market. Currently, it’s in short supply. Catherine Conway, a package-free consultant based in the U.K., said she has found one of the main challenges for this form of shopping to be the behavior change it asks of consumers. Her business Unpackaged targets waste by reinventing stores’ bulk aisles to encourage reuse and refill with bring-your-own containers. "For the last 30 or 40 years, consumers have been told that all they should care about is convenience and price. So currently all they care about is convenience and price," explained Conway in an interview with Waste Dive. "You’ve now got to get across the message of why it’s going to be a bit inconvenient for them." This, she says, is why package-free shopping has remained on the fringes of retail. Many are put off by the limited offerings available in bulk, or simply aren’t willing to perform the extra work it entails. "I think there’s a lot of misconceptions out there about the number of hoops a consumer will jump through in the name of more sustainable packaging," Adam Gendell, associate director of the Sustainable Packaging Coalition (SPC), told Waste Dive. After all, any system is only as good as the number of people who will actually use it, and most people will only use it if it’s easy for them to do so. Gendell lauded the "milkman style" distribution model that Loop has adopted, where little is asked of consumers and the company is "not asking people to take 20 steps to get the package back" but instead "saying 'Here’s your reusable package, please get the stuff out of it, put it back outside, and forget about it.'" For shoppers, Loop’s direct-to-consumer model appears to do just that. The only behavior change required is to place used containers back in the Loop tote and schedule a pick-up online. Customers are incentivized to perform this last step because they have put down fully refundable container deposits on each item (a requisite for participation in the service), though these can be quite high. In her review of the service, Supply Chain Dive’s Emma Cosgrove commented that in addition to some products being more expensive – Loop’s dry black beans, for example, were 60% more than a bulk price in a grocery store – the deposits were cause for some sticker shock. "On my first order," she wrote, "I paid $30.50 in deposits including the $15.00 deposit for the shipping box – 23% of my total order." For brands, who also put hefty down payments and investment in new packaging to participate, Loop acts as an accommodating plug-in to a relatively hands-off reusable model. "Everything we do is always as a third party," said Benjamin Weir, Loop’s North America program manager, in an interview. The company's first task is working with brands to develop and test reusable packaging for each product. This can be simpler when brands request a "stock" container (a glass jar or an aluminum tin). It can get more complicated when they require customization, like in the case of the Häagen-Dazs stainless steel container or the Crest glass mouthwash bottle designed in conjunction with Kohler, featuring a silicone sleeve and a stainless steel cap. Once packaging is selected, a sanitation system is determined and then audited by brands. Loop outsources this portion of its work to specialized vendors at a cleaning facility located in Pennsylvania. It’s a learning curve, Weir told Waste Dive, as vendors providing sanitation services typically clean medical-grade equipment or aerospace parts – products far too valuable to dispose of after a single-use. For Loop’s purposes, they must be trained to clean consumer product-sized goods. In addition to cleaning services, Loop also provides brands with fulfillment – not to be confused with product refilling – at a warehouse in New Jersey, where orders of Loop totes are packed and prepared for delivery. These warehousing services are also outsourced. Finally, once the orders are prepared, totes are delivered to shoppers’ homes by UPS, the carrier Loop has partnered with for logistics. Balancing sustainability with availability Preserving ease-of-use for brands and consumers doesn’t come easy. The dairy industry to which Loop is so often compared enjoyed the luxury of managing just one product, produced and distributed regionally, with a standard package that had been designed with reusability and sanitation in mind from the very start. Production, cleaning, fulfillment and distribution all happened in the same place and dairy farms had relative control over their local supply chains. And milk, a product consumed regularly, was delivered on a "subscription" basis making the demand for refills constant and stable. Loop enjoys almost none of those advantages. The pilot offers 123 products on its website featuring over a dozen different types of packaging, each with its own distinct sanitization process. And being a third party means that, while Loop is responsible for sanitation of containers in regional warehouses, refilling remains in the hands of manufacturers located throughout the country. Nestlé, who is trialing Häagen-Dazs ice cream with Loop, told CNN they’re trucking refills of product from California to the East Coast. The winding reverse logistics for products that are – unlike the milkman – not locally sourced have caused some to question whether the additional impacts aren't nullifying any sustainability goals. "Loop is trying to minimize waste, but does that process still take into account the emissions to take that product back and reuse it and wash it and reprocess it and send it back out?" queried Alexis Bateman, director of the Sustainable Supply Chains program at the Massachusetts Institute of Technology, in an interview with Waste Dive. "I think that overvaluing one impact over another is usually the pitfall that these kinds of solutions come into." Weir said Loop is aware of some of the environmental impacts posed by adding mileage to the supply chain and using higher grade materials. "We’ve always said that this system is not always designed to service a large quantity of households. You’ll never see more than 5,000 households in our system right now, as is," he said. Working with the consulting firm Long Trail Sustainability, Loop has performed life cycle analyses (LCA) on all of its packaging to determine the cradle-to-grave environmental impacts. Rick Zultner, Loop's vice president of research and development, told Waste Dive these assessments showed that at 10 reuse cycles, the Loop e-commerce trial had a 35% reduction in global warming potential as compared to a "similar model." "The Loop system is very proficient at solving the waste problem, but we have to think beyond that," said Weir. "We have to think about the sustainability of the entire ecosystem and whether we are creating new problems with new solutions. That’s of course never the goal." Limits of LCAs Reusable systems like Loop open the door to a larger debate within the field of environmental accounting. In recent years, officials at the Oregon Department of Environmental Quality (DEQ) have surveyed literature and pioneered studies assessing the sustainability of reusable systems in a range of contexts, from water bottles to beer kegs. "There’s no simple answer to the question of disposable versus reusable packaging," said Peter Canepa, an LCA practitioner at the DEQ, in an interview with Waste Dive. At the request of local brewers in Oregon, the DEQ performed an LCA to determine the impact of the industry’s traditional reusable stainless steel kegs when compared with the rise of new single-use plastic beer kegs. "Even with the washing and sterilization, all those steps were accounted for and reusable stainless steel kegs were more beneficial," said Canepa, referring to the LCA results. "But there started to be a point of inflection." Reuse made sense for breweries in Oregon who distribute their product locally, but numbers began to tilt in favor of disposable as distance was added to the supply chain. According to Canepa, breweries distributing East of the Mississippi found there were sufficient environmental implications, to the point that "making a new plastic keg, using it once, and disposing of it was actually less impactful." It is at this point that the LCA school of thought diverges from the one Loop more closely adheres to. Advocates of circular economy theory (like SPC’s Gendell) still promote the use of LCA as a tool, but put far more weight on systems being regenerative. The idea is that waste from one system forms a resource for another. "That can’t always be measured with any type of precision with a tool like LCA, which is an important, but imperfect science," Gendell explained. LCA, for example, does not yet have a way to quantify the effects of litter on marine or land environments, a category in which disposable materials score very poorly. Unpackaged’s Conway agrees that literature on reuse can often be difficult to decipher. "The thing that’s annoying is that it’s very hard to get independent environmental data … These industry-sponsored studies are not 100% reliable." She argues that just because reusable systems like Loop require more upfront resources than disposables shouldn’t be a reason to discount them, even if the LCA initially says otherwise. Especially in the beginning, it may be the case that they just require a bit of scale to make it worth it. "I don’t think that’s a bad system until they get to that point, I think they just have to be aware that it’s probably going to be inefficient to start off with," she said. The experiment continues Loop’s pilot model (the length of which is said to be undetermined) preserves extreme convenience, but that likely will not be way this service grows in the future. "What we’re doing now, to make it as convenient for consumers as possible, is really allowing them to order and return packaging at any time," explained Weir. "The purchasing of the products and the returning are truly two separate interactions." In an ideal world, pick-ups would coincide with drop-offs and vice-versa. And retailers, who have their own fleets of trucks, would leave warehouses full in the morning and come back full with returns (as opposed to returning empty, as they do now). In the future integrated version, consumers will purchase and return Loop products at retail locations directly. Confirmed partners include Walgreens and Kroger in the United States, Carrefour in France and Tesco in the U.K. The advantage to this model is that products would be sold in locations many shoppers already frequent, side-by-side with disposable counterparts of the same items. "That kind of brick-and-mortar shopping is going to open up additional avenues for the consumer," said Patrick Browne, director of sustainability at UPS, in an interview with Waste Dive. The company continues to work with Loop on the e-commerce model, but Browne said that retail deliveries would pose less of a logistical challenge. They take place in more dense settings, where drivers are delivering multiple packages per stop, making them more efficient. Whereas "in e-commerce, which is residential, typically your stops are a little bit farther in between houses." Loop’s decisions about reuse and disposal are not purely determined by environmental impact, sparking further complications. This comprises perhaps Loop's biggest challenge: balancing the complex, fragile world of environmental accounting with the extremely qualitative world of corporate branding, which has an altogether different set of values. For the companies Loop works with, packaging isn’t just about getting a product from here to there, or even strictly about safety. It’s also about maintaining brand uniformity and image. Disposable packaging, where each purchase yields a fresh container, does this quite well. Conversely, "packaging that is reusable will naturally scratch. It will naturally bend," said Weir, "There are very few ways around that. Especially when we’re looking at high, high numbers of reuse cycles." Loop’s challenge has been encouraging companies to reconsider their traditional stance on wear and tear, which is typically viewed as a performance failure. In the end, participating brands determine what is the standard for reuse, and where to draw the line between refilling and disposing. It is Loop’s job to adhere to that standard, meaning disposal may occur on the hundredth cycle, or the tenth. “The positive side is that I think these solutions are important to start to change the dialogue on end-of-life packaging and waste that’s become so normalized in American culture,” said MIT’s Bateman. "Even if the future of Loop looks very different from what it is now, the trials of today are essential to shifting the discourse on disposables." At the end of the day, Loop reveals an inconvenient truth about reusable systems: In the current market, it takes more work to make less waste. According to DEQ's Canepa, that extra work is necessary because, in a reusable world, more durable materials with a higher lifecycle impact raise the stakes. “This sounds really banal, but if the thing made to be reusable is not reused, or more specifically is not reused a specific number of times,” he explained, “then you actually may be doing worse [sic] for the environment.” Reusable programs thus require vigilant stewarding to ensure proper use, an inescapable part of Loop's grand experiment. "They can’t be left to operate to themselves,” emphasized Weir. “There needs to be certain rules, there need to be certain frameworks. Because one-to-one, a stainless steel container versus a paper pint, I mean, there’s no comparison.”

Stores like Aldi and Trader Joe’s are trying to decrease excess plastic, but experts say it’s not enough. Plastic packaging can be both a blessing and a curse. It’s usually deployed to protect food, preserve freshness, and prevent spoilage and waste, which are all good things. At the same time, supermarkets can’t seem to help themselves from overpackaging items to the point of perversion, like a single banana — which already comes in its own Mother Nature-approved wrapper — plated on a Styrofoam tray and shrink-wrapped in even more plastic. Other forms of plastic appear completely gratuitous. Do pasta boxes really need tiny film windows for previewing the noodles? Supermarkets aren’t the only source of packaging waste, but they’re a major contributor. They’re also where most people interact with brands like Nestlé, which sells more than 1 billion products a day, 98 percent of which come in throwaway formats. When the Break Free from Plastic initiative audited more than 187,000 pieces of trash from 42 countries across six continents last October, the names that reared their heads most frequently were Coca-Cola, PepsiCo, and — yes — Nestlé. Supermarkets have been promoting recycling as a way out of this morass, but it hasn’t been enough, according to environmentalists, who say that single-use plastic needs to be purged from the get-go. It’s a concept that a growing breed of “zero-waste” grocers are experimenting with, too. “If your bathtub was overflowing, you wouldn’t reach for a mop to clean it up; you would turn it off at the source,” says David Pinsky, an anti-plastics campaigner at Greenpeace. “And that’s what we need to do on plastics.” LESS THAN 14 PERCENT OF THE NEARLY 86 MILLION TONS OF PLASTIC PACKAGING PRODUCED GLOBALLY EACH YEAR IS RECYCLED The fact of the matter is we’re not doing a good enough job of recapturing plastics, which are made from nonrenewable resources such as crude oil and natural gas and contribute to climate change throughout their life cycle. Less than 14 percent of the nearly 86 million tons of plastic packaging produced globally each year is recycled, and of that, only 2 percent goes into high-value applications. The rest is landfilled, incinerated, or buffeted into the environment, where it clogs up the seas, the beaches, and the digestive tracts of sea life. Much of the trouble with recycling plastic is it’s “incredibly finicky,” says Darby Hoover, a senior resource specialist at the Natural Resources Defense Council. Different municipalities accept different types of plastic, and the little triangle with the number at the bottom of a plastic container — if you can even find it — refers to the type of resin and not if or how it can be recycled. Sometimes, despite a recycling facility’s best efforts, a plastics stream becomes contaminated, which impairs sellability. But even if a facility does get it right, there isn’t always a market to funnel all the different types of plastic. “What’s been happening with China, in particular, is that it was America’s No. 1 buyer of plastic and paper, but now it’s saying that the stuff we send to them needs a much lower contamination rate, and we can’t do that,” Hoover says. Complicating the matter is complex packaging such as Tetra Pak cartons — the type plant-based milks, soups, and broths come in — and Capri Sun-type juice pouches — which contain different layers of material fused together — are even more difficult to reclaim. “So they’ve got aluminum and different types of plastic, then a bunch of glue that holds it all together,” Hoover says. “It’s very, very hard to separate out all those materials and figure out how to recycle any of them.” THE GLOBAL PLASTIC PACKAGING MARKET IS EXPECTED TO SOAR TO $412 BILLION IN 2024 The problem isn’t going away anytime soon. Plastic packaging is a booming industry with a powerful lobbying presence that can block lawmakers from enacting bans on plastic bags, Styrofoam containers, and other landfill fodder. Fueled by growing demand for flexible and functional food and beverage packaging, the global plastic packaging market is expected to soar from a value of $344 billion today to $412 billion in 2024. We throw away most single-use plastics within minutes of use, yet they can persist in the environment for 1,000 years. “We do need to fundamentally rethink the way that we use plastics,” says Sara Wingstrand, project manager of the Ellen MacArthur Foundation’s New Plastics Economy initiative, which has rallied more than 350 businesses, governments, and other organizations, including Coca-Cola, PepsiCo, Unilever, Walmart, and Target, in 2018 to support the elimination of unnecessary plastic packaging and transition the rest to reusable, recyclable, and compostable versions by 2025. “Recycling is a part of the solution, but it’s becoming evident that there is no way that we can recycle our way out of the plastic pollution crisis.” One key hurdle is that supermarkets are often blissfully unaware of how much plastic they’re employing. The material is relatively cheap and it makes up a fraction of a business’s operating expenses, Wingstrand says. And the thing is, you can’t reduce what you haven’t measured. Some supermarkets are trying, though. In South Africa, the supermarket chain Pick and Pay is trialing packaging-free “nude zones,” where customers can bring their own containers for fruits and vegetables that are laser-etched with the supplier code and sell-by date in lieu of plastic stickers. Similar “food in the nude” campaigns are taking place at grocers in New Zealand, which banned single-use plastic bags in July. This past April, Metro, a supermarket chain in Quebec, became Canada’s first major grocer to allow its customers to fill up their own reusable containers with meat, seafood, pastries, and ready-to-eat meals. Shoppers examine bags of salad at a PriceChopper supermarket. Robert Nickelsberg/Getty Images The United Kingdom, where a “polluter’s tax” on any single-use packaging that doesn’t contain at least 30 percent recycled materials is poised to debut in April 2022, is also making strides. Its major supermarkets have committed to a UK Plastics Pact to design out “problematic or unnecessary” single-use packaging by 2025. Waitrose is piloting refill stations at select stores for pasta, wine and beer, and detergent, and Sainsbury’s plans to introduce refillable packaging “at scale.” As part of its pledge to use only reusable, recyclable, or compostable packaging by 2025, Aldi has banned black plastic trays, which near-infrared sensors at recycling centers have trouble picking out from a sorting belt. Tesco, Britain’s largest supermarket, has convened with its suppliers to examine solutions that may require a design or materials overhaul. It’s even mulling banishing brands that use “excessive or inappropriate” packaging. It should come as no surprise that supermarkets in the US — bolstered by America’s corporate-friendly policies — have lagged behind. “Europe is probably more favorably predisposed to regulation and restrictions,” says Neil Saunders, managing director of retail at GlobalData, an international data-analytics consultancy. (Case in point? The European Union has a roadmap for making all plastic on the European market recyclable by 2030.) “Whereas the US is much more focused on freedoms of companies and individuals, and government is probably a lot more reluctant to legislate on certain things.” “THE [US] GOVERNMENT IS PROBABLY A LOT MORE RELUCTANT TO LEGISLATE ON CERTAIN THINGS” That isn’t to say there has been zero progress. Target is working on ditching expanded polystyrene foam packaging from its own-brand packaging by 2022. Select products in its Everspring line of home essentials are packaged in containers with up to 100 percent post-consumer recycled plastic. Costco has eschewed PVC clamshell packaging, which is not recyclable and can leach toxic chemicals when it degrades, for recyclable PET or recycled PET made from water bottles. Straws and Styrofoam meat trays are now verboten at Whole Foods, which is also replacing its hard plastic rotisserie chicken containers with bags that use roughly 70 percent less plastic, a spokesperson says. Walmart, the world’s No.1 brick-and-mortar retailer, aims by 2025 to incorporate at least 20 percent post-consumer recycled content in its own-brand packaging, which will also be 100 percent recyclable, reusable, or industrially compostable. In terms of general merchandise packaging, Walmart says it will work with suppliers to nix PVC by 2020. But a June report by Greenpeace, which rated 20 leading US supermarkets on their efforts to eliminate single-use plastic, found a universal failure to “adequately address the plastic pollution crisis they are contributing to.” In fact, no supermarket scored more than 35 out of a possible 100 points. Even the American iteration of Aldi, which rose to No. 1 for setting out a plastics reduction target and plan, needs to ramp up its ambitions, according to Pinsky. Since 90 percent of the products on its shelves are private label, rather than from name-brand suppliers, Aldi has a bigger say in its packaging decisions. “Aldi’s only committed by 2025 to reduce its plastic footprint by 15 percent,” he says. “So while some supermarkets are starting to take small steps in the right direction, none are acting with the urgency or the ambition that’s needed to truly tackle the plastic pollution crisis.” Transparency, Pinsky says, is a sticking issue. No supermarket, for instance, publicly reports its plastic footprint, which makes it difficult for the public to evaluate progress year over year. Time-bound, comprehensive plans are still few and far between. And some grocers are merely substituting one single-use material for another, as in the case of Trader Joe’s, which drew plaudits earlier this year for plans to strip its stores of 1 million pounds of plastic by removing plastic bags from its checkout counters, switching to compostable produce bags, and replacing Styrofoam trays with recyclable alternatives. But plant-based bioplastics, which stores increasingly favor, can still contribute to microplastic pollution if released into the environment, Pinksy notes, and molded fiberboard could harbor cancer-causing chemicals. “WE NEED TO SHIFT OUR CULTURE BACK TO MORE REUSE SYSTEMS” “It’s clear that recycling or substituting materials is not going to solve this problem; we need to see a focused reduction of plastic production in the first place,” he adds. “We need to shift our culture back to more reuse systems.” One result of the plastics backlash is the idea of the zero-waste supermarket. Brianne Miller, a marine biologist, was so sickened by the swaths of plastic that greeted her in different dive sites around the world — even the remote ones — that she left academia to co-found Nada, a zero-waste grocer that is not only the first of its kind in downtown Vancouver but in all of Canada. At Nada, everything, including fruits, vegetables, meats, grains, cheeses, nut butters, and sauces, is sold loose. Customers can load up their own jars, containers, and drawstring bags, or pick up cleaned and sanitized ones that are available for sale. Depending on what they need, they can pick up a barrel of crackers or just a handful. But customers are just one piece of Nada’s master plan; the store also works with its suppliers to deliver their products free of disposable packaging. “In many instances, suppliers are dropping off products every couple days or every week, so it’s quite easy, for example, to have things like coffee beans dropped off in a reusable Rubbermaid tote,” Miller says. “And then when the next shipment comes in, the container goes back to the supplier, and then it’s refilled and reused again, so we have this circular loop of containers that are coming and going from our store.” Nada sources as close to the store as possible, which helps with the minimalist approach, since products don’t have to be coddled across vast distances. “Instead of shipping cucumbers from across the country, we have the local farm, so that packaging isn’t necessary in the first place,” she says. Zero-waste supermarkets, especially full-service ones like Nada, may seem like an answer to our plastic packaging problem, except they’re still a rarity. In.gredients, an East Austin business that billed itself as America’s first zero-waste grocery store, shuttered permanently in 2018. There is a smattering of others in London, Berlin, Amsterdam, Stockholm, and Hong Kong, but they are largely boutique outfits with narrow aisles and more hipster appeal than options. For the vast majority of people, single-use plastics are still an inescapable aspect of their shopping reality. One other solution is a return to the old “milkman delivery” model of yore. The brainchild of TerraCycle, a New Jersey-based “waste solution development” firm, Loop offers popular products — think Häagen-Dazs ice cream, Hidden Valley ranch dressing, Tropicana orange juice, and Quaker Oats oatmeal — in durable glass and aluminum tubs designed to be returned, cleaned, and refilled. Nestlé, Procter & Gamble, Unilever, PepsiCo, Coca-Cola, and Danone are just some of the marquee names that have thrown in their support. Loop has also roped in a number of retail partners, including Kroger and Walgreens in the United States, Tesco in the United Kingdom, and Carrefour in France. “It’s super important to us to meet consumers where they’re already shopping,” says Heather Crawford, Loop’s vice president of marketing and e-commerce. Unlike with bulk or zero-waste supermarkets, customers don’t have to sling their own containers or wash them, which could help adoption. “People want a better, more sustainable option with less waste, but they’re not always willing to change their behaviors to get there,” she says. “Loop removes all of the friction from the systems that exist in the current zero-waste solution.” Tory Gundelach, vice president of retail insights at the consulting agency Kantar, sees a growing desire from customers for forward-thinking efforts such as Loop. “Younger shoppers, particularly, are becoming more attuned to the effect of their actions on the environment or society as a whole,” she says. “Shoppers increasingly want to see the retailers and brands they engage reflect their own personal values.” Nearly two-thirds of millennials and Gen Z-ers say they prefer “brands that have a point of view and stand for something,” Kantar’s research has found. And therein lies supermarkets’ business proposition. Reducing packaging through resource-efficient design or losing it altogether can save money on raw materials and shipping costs — always a plus for the bottom line — but it can also win over a demographic that is only going to grow into its spending power. “Shoppers are telling us, ‘I’m putting my dollars against the retailers and the brands that feel like they have values that line up with my values,’” Gundelach says. “And to do that, of course, brands and retailers have to put out what their values are that they stand for.”

TerraCycle’s Loop leads the charge as brands, retailers and consumers all express a desire to reduce packaging waste TerraCycle launched its Loop initiative in the spring, giving consumer packaged goods brands a platform to have their products delivered in reusable containers, as in the old days of the milkman bringing glass bottles to the doorstep. What followed was a small pilot in the Northeast that quickly garnered a waiting list of 90,000 consumers requesting the service.   “If we tried to launch [Loop] five years ago, I don’t know if it would’ve worked,” says Anthony Rossi, the program’s global vice president of business development. “But if there’s one thing we’ve seen so far, it’s that the consumer is now ready.”   A recent Nielsen survey found that 75% of consumers globally would “definitely” or “probably” change their consumption habits if doing so would have a positive effect on the environment; nearly half of U.S. consumers said likewise.   “And these consumers are putting their dollars where their values are, spending $128.5 billion on sustainable fast-moving consumer products this year,” says Kyle McKinley, vice president of design solutions at Nielsen. “Since 2014, these influential shoppers have grown sustainable product sales by nearly 20%, with a compound growth rate that’s four times larger than conventional products.” Nielsen expects sustainable-friendly shoppers in the U.S to spend upward of $150 billion on sustainable goods by 2021.

Good for Business

  Reducing waste isn’t just good for the world, it’s good for business. With consumers showing signs of wanting to play their role in reducing waste, brands and retailers are motivated to develop more sustainable goods and packaging options. Just this summer, a coalition of industry companies including Procter & Gamble, PepsiCo and SAP founded the Brands for Good coalition; separately, a host of CPGs, retailers and packaging providers formed the Sustainable Packaging Coalition. (Neither group responded to requests for an interview.)   Participants in the Brands for Good coalition are making commitments to embed social purpose into their brand promises and products; to use brand influence to make sustainable living accessible for consumers; and to collaborate with other players to change behavior to create a positive impact on the planet. Each company will launch its own projects with that shared mission in mind.   P&G played an integral role in the launch of Loop and is one of more than 100 brands already working with the platform. Three years ago, the CPG giant stood side by side with TerraCycle at the World Economic Forum to discuss its use of ocean plastics in Head & Shoulders bottles, and at that time began discussing the idea of reusable services. It has since also launched Tide Purclean, a plant-based liquid detergent, and has an overall goal to make all product packaging recyclable or reusable by 2030.   Other major CPGs such as Coca-Cola, PepsiCo, General Mills, Unilever and Diageo, to name a few, have set similar public goals in an effort to reduce global waste by making packaging more recyclable.

Making a Commitment

  Nestle, another founding Loop partner, has “committed to making 100% of our packaging recyclable or reusable by 2025,” says Elizabell Marquez, director of marketing for the company’s Haagen-Dazs brand. The Nestle Institute of Packaging Sciences was created last year to advance these efforts, she notes.

  Clorox Co., also a Loop partner, is expected this month to announce an “ambitious product and packaging-related sustainability strategy as part of our broader environmental, social and governance strategy,” promises Andrea Rudert, associate director, corporate responsibility. Clorox previously set a goal to improve the sustainability of half of its product portfolio by 2020, with 2011 being the baseline year.   “We surpassed that goal two years early,” Rudert says. “In fact, as of the end of our 2019 fiscal year, we made sustainability improvements to 58% of our product portfolio.” The company has recyclable primary packaging for 92% of its lineup.   Other manufacturers making sustainable commitments include SC Johnson, which last spring launched Windex in special packaging at Target, Walmart and other retailers. The bottles are made from 100% recycled ocean plastic and are non-toxic and cruelty-free.   Windex is also planning this fall to launch a “Social Plastic” bottle that will include recycled ocean-bound social plastic sourced by Plastic Bank from Haiti, the Philippines and Indonesia. The effort is designed to help the environment but also provide social benefits to people living below the poverty line in those nations, according to a company release.   SC Johnson also expanded Windex’s concentrate cleaner offerings into products from such brands as Pledge, Scrubbing Bubbles, Shout and Fantastik. The concentrate refill bottles use 80% less plastic compared to a brand new, larger trigger bottle; consumers mix tap water with the concentrate into a reusable trigger bottle to significantly reduce plastic waste.   Elsewhere, Hasbro will phase out the use of plastics in its packaging beginning in 2020, doing away with the polybags, elastic bands, shrink wrap, window sheets and blister packs that have long been part of the toy buying experience. The company eliminated wire ties from packaging in 2010, and has been working with TerraCycle to recycle materials from old toys and games to make innovative social spaces and items like play areas, flowerpots and park benches.   Yet another TerraCycle partner, Colgate-Palmolive, has been recycling used toothpaste tubes and toothbrushes into playground materials. The company also recently unveiled a recyclable toothpaste tube that will launch in 2020 via the Tom’s of Maine brand but extend to all brands by 2025. The tube uses the “number 2” plastic commonly found in soda bottles.

In the Loop

  With TerraCycle’s two-decade-long history of working with brands to eliminate waste, it’s no surprise the company was able to partner up with manufacturers such as P&G, Unilever, Bic, Mars and Danone to launch a strategy around reusable packaging. TerraCycle began as a solution to help brands recycle products that aren’t recycled at traditional facilities, such as cigarette butts, chip bags and various personal care products. That remains the company’s largest operation. Second to that effort is working with brands to integrate recycled content into its packaging, as it did through the aforementioned efforts with P&G’s Head & Shoulders on the ocean plastics and Colgate for playground materials.   TerraCycle’s newest business unit is Loop, which Rossi describes as “dusting off the idea of the milkman and bringing it to any product that’s single-use today.” Loop is, in fact, a way to completely eliminate packaging waste. “Recycling is a Band-Aid on a cut, and what we need to do is attack the problem at its core. And the problem is single use and disposability.”   Nestle became a founding partner of Loop because the concept presents an “innovative and disruptive approach to changing how products are packaged – and delivered – and how consumers enjoy them,” says Marquez.   The short of it: Shoppers buy a brand’s durable, reusable (and exclusive) Loop packaging, which gets delivered through Loop in a special tote bag. When the contents are up for a refill, the user puts the packaging back in the Loop bag for free pickup; Loop then sanitizes the packaging to be refilled by the brand and shipped back to the user.   Kroger and Walgreens in the U.S, as well as Carrefour and Tesco in Europe, are Loop’s current retail partners. They help sell and distribute the Loop platform, with consumers signing up for Loop through the retailers.   A key element to the model is the brand’s involvement with the packaging. While Loop helps brands develop containers that can be used hundreds of times, can be sanitized and are strong enough to withstand the frequent shipping, they remain the brand’s asset.   Nestle, for example, owns the sleek, steel Haagen-Dazs container it developed for Loop, which Marquez says is a way to show that sustainability can be delivered in upscale, premium wrapping. The stainless steel container is etched with the familiar Haagen-Dazs tapestry, carries double lining for extra cooling and has an easy twist-off top, she explains.   “Loop is encouraging participating brands to create durable and reusable packaging designs that are more visually appealing,” says Rudert at Clorox. “The hope is that consumers will keep products on their countertops because they are ‘show off’ worthy.”   Clorox teamed with Loop for its pilot launch, testing a container for Clorox disinfecting wipes and a bottle for Hidden Valley Original Ranch dressing. (Glad food protection products are in the works.) Other Loop packaging examples include a simple, white container for Mars pet food; a Nature’s Path granola jar; and P&G’s range of chic steel or glass bottles for Tide, Crest mouthwash and other products.   “A lot of times, innovation in sustainability is perceived to start with these smaller, grassroots brands, and we keep sustainability on the fringes and we target that eco-friendly person,” Loop’s Rossi says. “What’s exciting about Loop is we’re trying to make sustainability irresistible to everyone. We’re working with big national brands and big national retailers, because for us to have the positive environmental impact that we want to have, sustainability can’t be kept to the fringes of society. It needs to be in everyone’s house.”

Going Forward

  Rossi’s somewhat Utopian vision is to see Loop operating nationwide, in every ZIP code, within five years. In the meantime, he encourages brands to think about incorporating more recycling into the design process. For example, if a detergent brand has decided to use “number 2” plastic (one of the most recyclable materials) but designs it in black, that’s a color that recycling machines often don’t pick up.   The Rochester Institute of Technology has been studying sustainability in packaging since the 1980s, says Dan Johnson, professor and chair of the school’s department of packaging science. Its efforts take a full supply chain view, examining issues such as transportation energy and product damage, not just material use and formats.   “Brands need to remember that not all successes in sustainability need to be customer-focused,” Johnson says, adding that consumer behavior around sustainability can be a bit of a wild card. “A good deal of the wins are only detectable by packaging geeks like our faculty, but [those actions] may be the largest contributor to meeting corporate sustainability goals around packaging.”   Johnson is inspired by some of the brand activity out there today, but warns that “economic and technical challenges in the recycling process are creating a shortage of both quality recycled raw material and credible outlets for collected recyclables. Thankfully, this gap in technology is beginning to be addressed by advances in areas like chemical recycling and advanced mechanical sortation technology.”   Back on the consumer-facing front lines, Nielsen’s McKinley says brands must stay true to who they are when considering their sustainable packaging designs. “As you act on collective sustainability needs in an authentic way for your brand, leverage the tools you already have: everyday analytics, innovation testing, consumer resonance and more.”   Clorox’s Rudert adds that brands and retailers should continue to raise greater consumer awareness on the urgent need for more sustainable commerce models. “When consumers are willing to pay for these products, companies will be incentivized to invest in the innovations needed to create sustainable change.”

Businesses are faced with significant challenges every day. Among the most demanding are working towards a supply chain that is sustainable, yet profitable. It’s no longer about minimally meeting environmental regulations but creating value for consumers and stakeholders. The focus is toward more innovative, opportunity-focused thinking that considers impacts on the planet and society (is it positive, neutral or simply “less bad”?) and prepares organizations for resilience and growth in an uncertain future. For consumer packaged goods (CPG) companies, thinking critically about the function of packaging and the ways they can change the paradigm around production and consumption is one aspect of designing a supply chain that can take us out of the linear and into a regenerative circular economy. As the system currently operates, industry produces on a one-way track to landfilling and incineration. Raw material is sourced from the earth to produce commodities sold, used and disposed, and the value of the material is lost—either buried or burned. Facilities waste and other pre-consumer materials meet the same fate. From linear to circular This make-use-dispose pipeline is known as the linear economy because products and packaging, once manufactured and used, too often go in one direction: the garbage. Conversely, the concept of a circular economy keeps resources in the supply chain at high value by recovering, reusing and repurposing whenever possible. Within this context, supply chain doesn’t just refer to the materials and processes involved in the back-end of making and distributing something, but the full lifecycle of an item, including when it leaves the production line. The consumer goods supply chain is currently quite wasteful end-to-end; focusing on packaging reveals significant opportunities for improvement. Many “green” packaging trends aim to solve for waste with the end-user, the link where the value of material is visibly lost. For example, biodegradable bioplastics made of renewable feedstocks instead of petroleum are supposed to break down in the environment as plastic litter does not. This demonstrates a change in raw material sourcing and an attempt to prevent litter with a material that will decompose. However, most compostable bioplastics need an industrial composting facility to break down. There are only a handful of those globally, and many don’t want this in their piles. What’s more, the resources needed to produce bioplastic are agricultural space, water and material the world is nowhere near able to sustain at scale. Another example of manufacturers aiming to tackle waste on both ends of the supply chain is the practice of lightweighting packaging by either replacing materials with a lighter weight alternative (glass with plastic) or using less material. The idea is less waste at the front and back end, but often results in a product or package rendered non-recyclable through conventional channels. What neither of these methods do is value resources such that they are kept cycling within the supply chain and in use for as long as possible, extracting their maximum value and recovering them for reintegration. Each practice assumes the resources that go into producing packaging, and the resulting post-consumer waste, is disposable and still treats the material as single-use. We did a lot of reflection and realized that the foundational cause of garbage is disposability. For a packaging designer, an effective approach when considering materials is to make packaging out of material that recyclers want and have the technology to handle. It’s about the entire supply chain and the potential for a recycling company to make a profit. But a circular economy is one that focuses on durability and use of renewable resources, including energy inputs. Recycling, while important, is energy and resource intensive, which is why so many items are not considered cost-effective to recycle. The need for profit Packaging design for profitability is certainly complex enough without considering the full life cycle of materials. Manufacturers and brands that commit to sustainability in a practical, scalable way stand out in an industry that still profits from the status quo, but it must be profitable in order for it to stick in the short-term. Rethinking all aspects of the supply chain, from sourcing to end-of-life, is the key. Above all resources, true change requires boldness. TerraCycle’s new circular shopping platform Loop works with brands to create durable versions of goods previously housed in single-use packaging. The products are offered in a combination of glass, stainless steel, aluminum and engineered plastics designed to last at least 100 uses; when they do wear out, TerraCycle is able to recycle them, cycling the value of the material. Offering trusted brands in upgraded containers, consumers enjoy products they love while eliminating packaging waste—a “win-win” for profitable, sustainable supply chains. Conveniently delivered to one’s doorstep, the Loop Tote doesn’t use bubble wrap, air packs, plastic foam, or cardboard boxes, also scrapping excess e-commerce packaging material. With Loop, brands are taking the bold step of owning their package at every link on the supply chain and putting their packages back on the line. While the goal of the platform is to eventually eliminate single-use packaging from the waste stream altogether, manufacturers have the opportunity to offer their refillable products as an additional SKU in their product lines, which has virtues for large and small brands alike. While large companies have the resources and funding to take on a lighthouse project like this, smaller businesses have the flexibility to design for sustainability in the now. Corporations such as Procter & Gamble and Unilever can make a huge impact here, while young companies like Soapply and Melanin Essentials set the standard for making sustainability a part of their DNA. As an integral aspect of the supply chain, retailer partnerships bring the packaging into stores, making it accessible for consumers. In the United States, our founding partners are Walgreens and Kroger, Europe has Carrefour, and Canada’s largest food and pharmacy retailer Loblaw Companies Limited recently announced it would launch the platform in the country early-2020. Developing close collaborations of this kind creates a strong position for all players to offer higher-value products with less waste on the back-end. Reconciling innovation and growth with sustainability is by no means an easy task, and dialogue with all stakeholders yield more-complete information and options to consider. An important thing to remember is that supply chains are about people, not just processes. What’s interesting is the higher up the waste hierarchy you move (from litter to landfill, waste to energy, to recycling, upcycling and reuse) the more jobs you create in the process. In terms of injecting value in moving from the linear to the circular economy, this is a positive most of us can agree on. In the end, sustainability comes down to taking responsibility. What companies tend to be good at is being efficient in their operations. Focus less on the physical factory as the point of the environmental issue and realize everything put out on the market will become garbage unless you take responsibility for it. Everything leaving the factory currently becomes waste. Tom Szaky is the founder and CEO of TerraCycle Design products that have value, instead of harm. The circular economy at its ideal is intended to be regenerative. Shouldn’t we aspire that our products actually create a benefit? Even If we get to 100 per cent recycling, 100 per cent recycled content and zero packaging waste from reusable packaging, we’ve only hit net neutral. What is net positive? We need to start thinking about that versus just going about how are we going to eliminate our negative.  

There’s something in the air. Or, should we say, the ocean. Joining what The New York Times called “a growing global movement,” the Canadian government recently announced it would be tackling the global pollution crisis with bans on single-use plastics. The big question is whether that strategy will trigger the teamwork needed to get the best results. The details of the Canadian plan remain to be seen, but Prime Minister Justin Trudeau said Canada would follow the lead of the European Union with their vote to ban items, such as plastic cutlery and cotton-swab sticks, that often end up littered in oceans and waterways. With a goal of improving the current 10% “at best” estimate for plastics recycled in Canada, any bans could start at soon as 2021. A key step in that direction will have to be input from manufacturers, retailers, all levels of government and the public—to capture all the factors for success. Going green, in the grey   Government action is an important and largely missing ingredient in the effort against plastic pollution. Banning certain types of single-use plastic can be a way to prevent pollution at the source. However, we must keep in mind that, despite the current systems of thinking regarding the most environmentally and economically preferable ways to manage resources, we need to pay attention to the grey areas and see the full range of potential impacts. Hindsight is 20/20, which can explain our experience with disposability and single-use in the first place. Manufacturers didn’t advertise the virtues of disposability to fool the public into polluting and littering, but they focused on how this new wave of consumption might make life easier; today, in the light of the past, the effects of a narrow focus on these benefits are plain. We need to take the same big-picture thinking to today’s environmental initiatives of product bans, regulations on packaging design, even recycling, as we need to consider their current impacts and the potential for success in the long-term. We need to be alert to the reality that while consumers care about the planet and their health, they have gotten used to the convenience, price point, and ease offered by lightweight, single-use items. Exploring alternatives We know the consumers care and report being willing to pay or switch brands for those that offer accessible, actionable solutions. A study from Dalhousie University, “The Single-Use Plastics Dilemma: Perceptions and Possible Solutions,” reveals current and emerging generations of Canadian consumers are mindful of the need for greener products; the same study reports one out of every two Canadians actively shop for food in non-plastic packaging. However, we also know many consumers are focused on price. Interestingly, 71.8% of respondents reported that in the event single-use plastic bans are enacted, they’d want a discount, incentive or rebate for supporting alternative solutions. It shows the need to meet people where they are, offer them the virtues of convenience and functionality they have become accustomed to, and make it more worth their while. Plant-based plastics are one option that consumers are excited about. The consumer behavior study showed 37.7% of respondents would be willing to pay more for an item with biodegradable packaging, which is usually plant-based; this percentage grew to 46.6% for those born after 1994. Consumers connect with the concept of compostable plastics made from plants that should break down in composting facilities, or better still, the natural environment. , as it addresses our dependence on petroleum and concerns of further contributing to landfills or ocean pollution. But those expectations may mean a grey area for “green” plastic, as not all of these materials are created equal. Breaking down compostability   The compostability of plant-based plastics is akin to the recyclability claims for petroleum-based plastics. Everything doesn’t break down in every setting. In the case of compostable plant-based plastics, most require processing in an industrial composting facility to get the mix of the right temperatures and moisture levels to break down as quickly as possible. Many won’t cycle down in your backyard pile, let alone the ocean or in a landfill. The good news is the number of composting facilities in North America is growing, particularly as governments push for food waste diversion away from landfills and incinerators. One of the big challenges centers on “biodegradable” claims. Many composters report that most so-called biodegradable plastics don’t break down into nutrient-rich material as, say, food scraps or yard clippings, which have a wide range of micro- and macronutrients as well as a living ecosystem of bacteria and other microbes. There is growing pressure to ban “biodegradable” claims completely because they are seen as misleading for consumers. All aboard What producers can do is ensure new materials are in line with the system as it is currently. Club Coffee, a major Canadian coffee company, created the world’s first BPI Certified coffee pod for the most common brewers in North America. Unlike the traditional plastic pod, their pods break down in as little as five weeks in facilities designed to produce high-quality compost. A big reason is the pods include the skins of roasted coffee beans, turning what was a waste byproduct into a key ingredient for compostability.   The PURPOD100TM meets ASTM International’s Standard D6868 for compostability and required quite a bit of lab testing, and transparency around ingredients and production. The company has worked to ensure that marketing and advertising materials are accurate and not misleading. Club Coffee has worked closely with leaders like the Compost Manufacturing Alliance, which brings together major U.S. composting operators to test products to make sure they really deliver the composting results that consumers expect and that operators need. The company also works with the Compost Council of Canada. The result of taking into account the inputs of all stakeholders? Consumers value the coffee, convenience, and compostability; retailers get the positives of a more sustainable, premium product; composters have a product that works in their systems; and Club Coffee enjoys brand affinity. Where the private sector here is stepping up to solve for single-use plastic on its own, governments can drive change by subsidizing research and incentivizing environmentally preferable uses of materials to ease the financial risks. As with recycling, supporting the expansion of the composting network will be an important step forward. According to a study by Frontier Group and U.S. PIRG Education Fund, composting could aid topsoil quality and reduce the amount of trash sent to landfills and incinerators in the U.S. by at least 30 percent.   Get in the ‘Loop’ Exploring alternatives to conventional plastics is one valuable solution as are single-use plastics bans. Another way forward is to reduce waste at the source through reduction and preventing the need to dispose. To get there, consumers need the alternatives that businesses are in a position to provide. TerraCycle’s new circular shopping platform Loop currently features durable versions of goods previously housed in single-use packaging. The products are offered in a combination of glass, stainless steel, aluminum, and engineered plastics designed to last up to 100 uses; when they do wear out, they are processed to cycle the value of the material continuously. Offering trusted brands in upgraded containers, consumers enjoy products they love while eliminating disposable packaging. Delivered to one’s door, a modern version of the milkman model of yore, the Loop Tote doesn’t use bubble wrap, air packs, plastic foam, or cardboard boxes, scrapping e-commerce excess. Loop partners with retailers to bring reusable packaging into stores, making it easy for consumers to make the switch. In the U.S., the founding partners are Walgreens and Kroger, Europe has Carrefour, and Canada’s largest food and pharmacy retailer Loblaw recently announced it would launch the platform early-2020. Executive Chairman Galen Weston said, “Our industry is part of the problem, and we can be part of the solution.” Buying into solutions for single-use plastics The state of the recycling industry around the globe is fragmented, as are the needs of each region, but the world’s problems with plastic pollution are the same. While improvements are made by governments, there is a strong demand for authentically “eco-friendly” plastics and durable alternatives. Consumers hold more power in this aspect than they know. If we demand less disposability and more systems-thinking, businesses will push suppliers, vendors, peers, and stakeholders for better materials and models for waste reduction, and profit, in the face of many challenges. Thus, the most important shift toward solutions for single-use plastic waste is a collaboration with valued experts. Businesses can close the loop by sharing learnings, taking responsibility, and inspiring others to start their circular economy journey. All players on the supply chain are accountable for the life cycle of goods, and exploring bold alternatives that create value from every angle are the ones that will stick.

Unilever plastic packaging used in products like shampoo and conditioner bottles contributes to ocean pollution.

• The consumer giant has cut down on plastic use by 15% and is using bioplastics and refillable metal bottles for items like deodorant.
• The global plastic packaging market is on pace to reach $300 billion, but many of Unilever’s newest top-selling brands are the ones aligned with its Sustainable Living Plan.

On any given day, 2.5 billion people use Unilever products that span 400 brands. That success has created a huge target on the company’s back as the sustainability movement gains more traction with consumers shunning plastic pollution. Sajjad Hussain | AFP | Getty Images From the farthest reaches of the Arctic to the deepest depths of the ocean, plastic pollution really is everywhere. Plastic pollution in the ocean is a particularly big problem: an estimated 100 million ocean animals are killed each year because of plastic in the ocean, and we currently have no reliable way to extract those plastics. But plastic is also a huge part of our everyday lives, in often invisible ways. Now, one of the world’s biggest plastic polluters is racing to reinvent its business–and the way we think about this ubiquitous material–one package at a time. The sea change is top priority for Unilever to ensure customers remain loyal to the 90-year-old global brand. On any given day, 2.5 billion people use Unilever products that span 400 brands to feel good, look good and get more out of life. But the multinational with a market cap of over $158 billion recognizes that its growth has come at the expense of the environment. The company invests over $1 billion annually on research and development, of which new plastics innovation is a component, but declined to tell CNBC how much its plastics initiatives specifically are costing. It is benefiting the company: In 2018, the 26 Unilever brands that are aligned with its sustainability initiatives grew 46% faster than the rest of the business and also outperformed in turnover growth, according to the company. In November 2010 under the guidance of now-former CEO Paul Polman, the company launched its industry-leading sustainable living plan, which has guided the company’s approach to product design and redesign ever since. Oversight of this global initiative starts at the top: reporting directly to the company’s CEO and executive leadership, a steering team meets five times per year and is accountable to the executive for the sustainable living plan’s goals. They rely on a series of internal groups devoted to everything from sustainable packaging to water use. Unilever also runs its own Safety and Environmental Assurance Centre (SEAC) that takes a science-focused look at the environmental impacts of products throughout their life cycle, including when they go down the drain.

Transforming plastic

Since 2017, one of the plan’s main focuses has been plastic. That’s when Unilever signed on to an Ellen MacArthur Foundation initiative called The New Plastics Economy, committed to making all of its plastic packaging either reusable, recyclable, or compostable by 2025. Doing so will ensure that plastic packaging stays within a “circular economy” where it can be produced and reused, rather than becoming waste. That means not only developing the technology to make plastics that can be effectively recycled, but also transforming its global supply chain. Both are major challenges. “I’m convinced that we are going to move more as a society into some of those spaces around reduce and reuse, and [Unilever] will be at the forefront of doing that,” says Richard Slater, chief research and development officer for Unilever. Slater, who took over the role in April 2019, says Unilever’s commitment to sustainability was a big reason he was drawn to the company. Inside the company, this attitude toward plastic shows up in a framework used throughout the business, referred to as “less/better/no.” It’s visible in their finished products: shampoo bottles that contain around 15% less plasticthanks to the introduction of bubbles into the material; replacing traditional plastics with bioplastics made of materials like cornstarch; and goods that use no plastic in their packaging, like refillable deodorants that come in a metal tube. Addressing the issue of packaging is a great way to start changing the way plastic is used, says Shelie Miller, a University of Michigan professor who studies packaging and sustainability. “Packaging is produced to become waste,” she says. “That makes it unique among manufactured goods.” It’s hard to know exactly how much of the plastic problem is due to plastic packaging, says Melanie Bergmann, a marine biologist and plastic pollution expert at Germany’s Alfred Wegener Institute. However, packaging on consumer products is a significant problem, she says, and unlike many other sources of plastic, “something we can tackle relatively easily.”

Rethinking supply chains

Transforming its plastics packaging market has required ongoing change in the company’s supply chain, both in working with existing suppliers to change their practices and with new partners like Terracycle’s consumer goods distribution system Loop, which will be testing consumer uptake on products like refillable aluminum deodorants for some of Unilever’s top brands. The Loop Initiativehas buy-in from some of the world’s biggest brands, including Unilever competitors Procter & Gamble, Nestlé, Coca-Cola and PepsiCo. Terracycle’s partners involved with the initiative include logistics company UPS, European retailer Carrefour and resource management company Suez. On the materials side, too, the drive to develop better plastics has seen Unilever partner with startups like Ioniqa, which bills itself as a “high tech chemical company”, and broader industry initiatives like the Bioplastic Feedstock Alliance, a World Wildlife Federation-led initiatives to develop biodegradable plastics that don’t compete with food security. The company is also “engaged with several bio-plastic suppliers,” according to a company spokesperson. Unilever also is pushing forward on in-house initiatives such as developing a new pigment for black plastic such as that used for the company’s TRESemmé line of shampoos and conditioners. Traditional black plastic is not detectable by the infrared sorters that recyclers use and must therefore be thrown out. Unilever’s solution is a new kind of pigment that can be detected by the sorters, allowing its black plastic bottles to be recycled at traditional recycling facilities. Within industry, “Unilever is really seen as a leader in sustainability,” says Miller. “They have a track record of being a leader in efforts to reduce overall environmental impacts, so it’s not surprising that they are ahead of the curve here.” From the investment perspective, this is one of the most lucrative markets to get into. However, creating a circular plastic economy for its many products isn’t a simple undertaking. “One of the challenges we face in many places around the world is availability of material, ” says Louis Lindenberg, Unilever’s Global Packaging Sustainability Director. “We’ve had to work with our supply chain partners to identify what material is required where, how much is available, what the gap is, and how we fill that gap.” One example is in Brazil, whereUnilever recently partnered with local recycler Wise to expand local recycling capacity in order to get the recycled materials it needs to meet its commitments, Lindenberg said. There’s no guarantee that the things they try will get consumer uptake. The company’s found high consumer acceptance for initiatives like moving towards things like 100 percent recycled or recyclable plastics, Slater says. But on the no-plastic side, with things like the Loop initiative and other refill and reuse systems, “we really are more in pilot mode there.” Initiatives like these are also what will keep Unilever competitive into the future, says Slater. In its 2018 annual report, the multinational named plastic packaging as a “principal risk” to its business. “Both consumer and customer responses to the environmental impact of plastic waste and emerging regulation by governments to tax or ban the use of certain plastics requires us to find solutions,” reads the message to shareholders. By 2025, the year when Unilever and other signatories to the New Plastics Economy agreement have pledged to transform their packaging, Grand View Research predicts that the global plastic packaging market will reach a market size of $269.6 billion USD, up from a 2017 valuation of $198 billion. Key drivers of this market are the convenience and low cost of plastic packaging, but according to numbers produced by Transparency Market Research, consumers are willing to pay nearly 10 percent more for sustainable packaging. “Consumers are looking for sustainable packaging, says TMR senior market analyst Ismail Sutaria. “At the same time, the packaging should be easy to use.” At the moment, the food and beverage sectors have the biggest market share for sustainable packaging, he says, with cosmetics and personal care not far behind, meaning that Unilever stands to benefit strongly from investment in this area. Increased focus on sustainable packaging will get the eye of investors on a company, Sutaria says. “From the investment perspective, this is one of the most lucrative markets to get into.” By working to change the plastics market, Unilever is paving the way for its own future.

We also chose markets where we already have strong partnerships with brands and retailers. For example, TerraCycle has been operating in France for almost 10 years, and we had worked with Carrefour. Two years ago, Carrefour was the first retailer to believe in Loop’s model and to support the launch in Paris this year. It was fundamental for us to launch with Carrefour’s support – which is one of the leading retailers in France.

The system has undeniably proved popular with businesses and consumers alike. In recent months, TerraCycle has launched partnerships using this model with Mars Petcare, Colgate Palmolive, Kelloggand Acuvue targeting pet food packaging, oral healthcare products, Pringles cans and contact lenses respectively. Additionally, consumers sent more than 500,000 used crisp and snack packets to TerraCycle through its partnership with Walkers during its first three months of operation.

A grocery order where products are delivered undamaged – yet spawn no disposable packaging destined for  the trash or recycling bin after use – is the future envisioned by TerraCycle. The waste management expert launched the embodiment of this vision last year in a project called Loop. The platform is a home-delivery service that offers consumers the option of avoiding single-use models when doing groceries by delivering products in durable, reusable packaging.