The Ellen MacArthur Foundation's latest progress report on where consumer goods companies stand on the New Plastics Economy Global Commitment shows substantial work ahead. While this year’s Global Commitment 2020 Progress Report from the Ellen MacArthur Foundation reveals rising interest in companies moving from single-use packaging toward reuse models, this approach is still a small part of circular economy initiatives. The goal of the New Plastics Economy Global Commitment update, now in its second year, is to assess how the 118 companies and 17 governments that have made pledges to to reduce waste from plastic packaging by 2025 are faring on their targets. Consumer brands that have signed onto the project include large brands that collectively make up 20% of the plastic packaging market. While some key indicators in the report saw progress made in the 2018-2019 timeframe, notably in the increased use of recycled content, it was clear that not all areas (and not all companies) are progressing in tandem. For the category of reuse, 56% of signatories in the production, packaged goods and retail sectors reported that implementation of reuse pilots was either underway or soon to come. This was up 43% from the previous reporting year. Yet despite this growing interest, the report indicated the share of reusable packaging “has not increased from the prior year,” making up just 1.9% of the market by weight. The remaining 98.1% of the market was single-use products. It also stated the reusable packaging in play is “primarily driven by a few companies who derive significant revenues from reuse models.” And while over half of signatories have reuse models in place, many of them are largely limited to just a few product lines in the categories of non-alcoholic beverages, cleaning products, cosmetics and personal care. The Ellen MacArthur Foundation did not respond to a request for comment on the report's findings. The apparent lack of progress may be in part explained by the length of time it takes to develop reuse systems, said Clarissa Morawski, CEO of the circular economy nonprofit Reloop. “The entire development of a reuse system for packaging requires careful planning, design, digitalization, setting up effective collection points, financing and securing the assets through back end management… No small feat,” she said. TerraCycle’s Loop program, for example, which develops and services reusable packaging for some of the program’s signatories, previously said research and development on each new product is around 6 to 18 months. But Judith Enck, president of the nonprofit Beyond Plastics said that “unless major retooling is necessary,” successful reusable systems “do not have to take a lot of time.” She cited Oregon's refillable bottle system as a positive example, stating that retailers often just need the right model and that may include some level of industry-wide cooperation. “The major problem is that there are few commitments to reuse, that are well funded and prioritized,” said Enck. “We have a solid waste hierarchy at the federal and state level that starts with waste reduction and reuse. But, in practice, the hierarchy has been turned upside down with most of the money and attention going to the bottom two rungs of the hierarchy: burying and burning of materials.” Large-scale examples of reuse referenced in the report came from pre-existing legacy programs, like Danone S.A.’s use of refillable water jugs, which has been in play since the late '90s. According to a company spokesperson, the program started “to help provide access to safe, quality water in countries [like Mexico, Indonesia and Turkey] where that can be a challenge" and has since become part of its circularity plans. “The refillable jugs offer a 95% reduction in plastic per liter sold and a 60% reduction in CO2 compared to standard bottle [1.5 liters]. We’re learning from these successful models in order to expand them to other countries in the EU.” Danone said 50% of its water is delivered through this program, though its smaller water bottles are still disposable. According to the report, the company is planning to invest 200 million euros in a packaging accelerator to scale up reuse elsewhere in its operations. Another potential hiccup in the road to reuse may be COVID-19’s impacts on the circular economy, which is only briefly mentioned in the report as it covers progress in the year prior to the pandemic. While these impacts are unlikely to eclipse the potential of reuse, sources say they may change the way models manifest and trends play out moving forward. For example, the report highlighted PepsiCo’s "SodaStream Professional" program, which saw 30 SodaStream units placed in workplaces, universities and hospitality partners across the U.S. in 2019. These units dispense flavored still or sparkling waters into workers’ refillable personal containers through a QR code they scan on their smartphones. But according to a PepsiCo spokesperson, many of the places in which SodaStream Professional is used are temporarily closed due to the pandemic. The company said it is working with clients to “determine the best way to introduce SodaStream Professional as part of their reopening plans” and that it is focusing its emphasis on contactless technology to “allow users to customize and pour without having to touch the unit at all.” But others believe a “refill on the go” model — the most popular of the five models identified for reuse, in which users refill their reusable container away from home, like at an in-store dispensing system — is on its way out. Earlier this year, Loop CEO Tom Szaky predicted a shift in this area. “If it's professionally cleaned and filled, the risk on reuse is exactly the same as the risk on single-use, which is also professionally packed,” he said, referring to the advantages of ecommerce refill delivery services, like Loop. Consumers refilling their own containers, he added, "is really where the big question mark is." Currently, the progress report lists “refill from home” as a category with 26 pilots, the fewest on the list. The report indicated that no signatories have lowered their targets in the face of the pandemic, and cited some have upped their pledges to invest in circular economy pilots in recent months. Shortly after the report's release, Colgate Palmolive Company released its 2025 sustainability goals, which include eliminating a third of plastics “as part of the transition to 100% recyclable, reusable, or compostable plastic packaging by 2025.” As more companies set such targets, experts say it's important to remember not all targets are created equal. While some are designed to measure the amount of reduced plastic in the consumer packaging market, others are measuring the ability of corporations to develop pilots that might help them do that. "A lot of companies are pushing circular economy of plastics just as a delay tactic," said Jan Dell, an independent engineer with The Last Beach Cleanup, in reference to societal pressures around plastics reduction. But while pilots may not have immediate effects, they are still an important measuring stick, Morawski said. “These pilots are the R&D, which is part of this long important process. This is a huge shift for this industry,” Morawski said. “The key will be how did they go? What did you learn? And how does this inform the next steps for the larger system implementation?”

It’s a bit of an understatement to say that health concerns are currently driving consumer behaviors and purchases in today’s marketplace. Research conducted by Paris-based Ipsos in July showed that 85% of consumers are concerned about the COVID-19 outbreak. According to the Washington, D.C.-based International Food Information Council, that same percentage of consumers (85%) reported that they’ve changed the way they eat or prepare food in the wake of the pandemic. While the novel coronavirus is a major, and arguably overriding, worry, that doesn’t mean that people aren’t making decisions based on other timely situations, from social issues to environmental concerns.

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.”

Over the last few months, I and dozens (if not hundreds) of others have placed orders for common household items from Loop — a new e-commerce site that attempts to eliminate the immense amount of single-use packaging and filler that comes with shopping, online or in-store. The platform officially launched its e-commerce site in May with roughly 25 vendors and two major retail partners in Kroger and Walgreens. The platform is currently available to consumers in select zip codes in New Jersey, New York, Pennsylvania, Delaware, Vermont, Connecticut, Rhode Island, Massachusetts, Maryland, Washington D.C. and Paris. At the launch event in May, participating vendors and retailers, along with CEO Tom Szaky of TerraCycle (the recycling company behind the concept), made it clear the early days are an experiment from which the various stakeholders will learn how consumers use the platform. These insights would inform future evolutions of the product. A good start but, by no means, the ultimate form Loop will take.

It feels like good old e-commerce but ...

The process feels very much like a traditional e-commerce transaction with a few exceptions. Shoppers choose their items, each with a base price and an additional container deposit to be refunded when the item is returned empty. Then the items are shipped via UPS in a reusable zippered box the size of medium-sized cooler. I placed my order Friday, May 31 and received it Tuesday, June 4.

Companies are still fighting to go green, and Kroger and Walgreens are the latest to join in on a new recycling project. This state-of-the-art circular shopping system, named Loop, officially launched their pilot program in May of 2019 in the Mid-Atlantic region of the U.S. to lessen the world’s reliance on single-use packaging, according to a TerraCycle press release. First announced at the World Economic Forum in January, Loop enables consumers to purchase a variety of commonly used products from leading consumer brands in customized, brand-specific durable packaging that is delivered in a specially designed reusable shipping tote. When finished with the product, the packaging is collected, cleaned, refilled and reused, creating a revolutionary circular shopping system. Loop is an initiative from TerraCycle, an innovative waste management company whose mission is to eliminate the idea of waste. Operating nationally across 21 countries, TerraCycle partners with leading consumer companies, retailers, cities and facilities to recycle hard-to-recycle waste. Loop provides customers this circular shopping platform while encouraging manufacturers to own and take responsibility for their packaging on the long term. “Loop was designed from the ground-up to reinvent the way we consume by leveraging the sustainable, circular milkman model of yesterday with the convenience of e-commerce,” said Tom Szaky, founder and CEO of Loop and TerraCycle, in the press release. “TerraCycle came together with dozens of major consumer product companies from P&G to Nestle to Unilever, the World Economic Forum Future of Consumption Platform, logistics and transportation company UPS and leading retailers Kroger and Walgreens to create a simple and convenient way to enjoy a wide range of products, customized in brand-specific durable and reusable packaging.”

How It Works

Consumers can go to www.loopstore.com, www.thekrogerco.com/loop or www.walgreens.com/loop to place an order. The shipment will then come in Loop’s exclusively designed shipping tote. After use, buyers place the empty containers into their Loop totes and go online to schedule a pickup from their home. Loop will clean the packaging so that each product may be safely reused to replenish products for more customers. There are also a number of completely free recycling programs on TerraCycle’s website, www.terracycle.com/en-US, where consumers can sign up for an account. Once the account is created, customers can collect the hard-to-recycle materials and either ship it or drop it off at a participating location. There are numerous different free programs that can be used and each one is for a specific product. For example, one of the programs is the ARM & HAMMER^® and OXICLEAN^® pouch recycling program, which only allows participants to ship these used materials. Other programs include products for Barilla Ready Pasta, Beech-Nut, Burt’s Bees and Brita, which can only be recycled in their specific programs. Being able to ship recycled materials or drop them off depends on each program.

How Retailers Can Participate

Right now, the Loop pilot program is available in New York, New Jersey, Pennsylvania, Maryland and Washington, D.C. If you are interested in creating a collection and recycling program for your non-recyclable products or packaging, TerraCycle has a wide variety of platform options. Typically, TerraCycle collects post-consumer waste from your key target consumers, cleans the waste, and then works with your brand to drive equity and value. Some of the consumer product companies that are currently working with Loop include Unilever, Nature’s Path, Nestle, SC Johnson, The Body Shop and Colgate-Palmolive, among others.

The Zero Waste Box Program

Another great way to participate in this go-green initiative includes the opportunity to recycle almost anything — for both your business and your customers. This special program helps you to recycle almost any type of waste, such as coffee capsules from your morning coffee or complex laboratory waste from your business, sending nothing to landfill or incineration. To open the door for your customers into this program, you can order a permanent collection unit to house your Zero Waste Box. A permanent unit protects your box, can be styled to fit your environment or store, and offers an organized place to maintain your collections. TerraCycle can work with you to understand and accommodate your budget, styling, quantity and timeline needs. No matter your recycling needs as a business, TerraCycle is willing to work with you. They also help with recycling at events in the case your store is holding a pop-up or other related events. Global warming is becoming a larger concern, and with these recycling programs, you can feel better about your impact on the environment as well as create customer loyalty if they can come back and recycle their products at your store. Happy recycling!  

• Loop, the "circular shopping platform" developed by recycling company TerraCycle, launched its e-commerce site Wednesday and announced Kroger and Walgreens as its founding retail partners at a press conference in New York City Tuesday.

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.

TerraCycle APAC general manager Eric Kawabata said the issue is that most fast-moving consumer goods were designed for single-use, with packaging ending in landfill or incineration. His company aims to eliminate the idea of waste by collecting waste materials and using them to create new products. His organization has already partnered with cosmetic companies such as Garnier, Colgate-Palmolive, and P&G.

From cigarette buts to flip-flops, Tom Szaky of TerraCycle believes everything can be recyclable. In Tom Szaky’s vision of the new economy, nothing is garbage. Not cigarette butts. Not dirty diapers. Not even used tampons.

N.J. RECYCLING IPO — Bloomberg’s Stacie Sherman and Elise Young: “In Tom Szaky’s vision of the new economy, nothing is garbage. Not cigarette butts. Not dirty diapers. Not even used tampons. Szaky, the founder of TerraCycle, a New Jersey-based garbage startup, has built a $24 million business around the belief that everything is recyclable.