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4 Reality Checks About Packaging and the Great Pacific Garbage Patch

Kids are visual — and keyed in to change. So, when a friend’s 10-year-old, Everleigh, engaged me in a conversation about what plastics were doing to the oceans, I gave her my full attention. “Let me show you,” she said. She pulled up a Tik-tok video, and I watched as a massive crane dumped thousands upon thousands of large plastic containers and other debris onto the deck of a ship. Part of the notorious Great Pacific Garbage Patch, this junk had been successfully scooped up from the sea. Everleigh’s excitement over the progress this video shares is why we see so many leading brands pledge to help rid the planet of waste. She is their future customer. Or maybe not. Here’s what we know: • 92% of the Great Pacific Garbage Patch (GPGP) is comprised of large-sized debris, containing nearly 1.8 trillion pieces of plastic. • 8% of the GPGP is comprised of single-use plastic packaging, but a larger percentage is tossed into rivers where debris flows downstream, breaks apart. and end up on the ocean floor. • Compounding this problem, large debris eventually breaks down to pieces no larger than a centimeter, called “microplastics.” • Over time, microplastics sink to the ocean floor where they are impossible to remove; they are mistaken for food by marine life. • Discarded fishing nets — also known as ghost nets — along with other fishing industry debris, account for 46% of the GPGP’s mass. Marine life often gets caught in the nets. Reality Check #1: According to the National Geographic Society, as of 2018, it would take 67 ships operating every day for one year to rid the GPGP of just 1% of the debris. Can it be cleaned up? Although the outlook seems bleak, there are advances under way that leverage science and technology to clean up the GPGP. The Ocean Clean Up project announced in October of 2021 that its experimental clean-up fleet had successfully cleared more than 63,000 pounds of plastic debris in a single haul. Based on these findings, the organization is increasing its fleet and is greatly optimistic it’ll reduce up to 50% of the patch every five years, with the end goal of removing the great patch altogether by 2040. It’s worth noting that these projections include debris that is continuously being added to the patch. Reality check #2: According to Covestro, a global supplier of high-tech polymer materials, “Infrastructure systems designed to manage and collect waste have struggled to keep up with the dramatic rise of single-use plastics in circulation, and as a result, plastic pollution has increased rapidly in recent years, especially in developing countries.” Why add to the patch in the first place? It’s long been my belief as a packaging designer that the problem is not only the patch itself, but the process that created it. In other words, we have a responsibility to accelerate packaging innovation to avoid adding fuel to the fire that is the patch. We need smarter ways to design reusable and biodegradable packaging and become true players in the circular economy. Remember, the next generation is watching. Kids are not only seeing the tortoise in distress with the straw in its nose; they are also learning about the perils of plastic in school. Brands that take this seriously will not only make good on their pledges, but fuel their appeal to the next generation and outperform lagging competitors. So, who’s getting it right? Loop Ulta Beauty Group Shot-web_0.jpg Closing the Loop. Loop is a subscription service for food and household goods, launched by TerraCycle. The Loop services are offered through major chains such as Walgreens and Kroger. Currently testing their concept nationally, the service provides people with products in reusable packaging, such as shampoo bottles and ice cream containers. Once empty, packaging is picked up, refilled, and reused. Loop has also partnered with Ulta Beauty, a national personal care brand, to offer its portfolio of sustainable products. As befits its name, Loop is a prime example of the emerging circular economy. Companies are reinventing reusable. Just take a look at what Häagen-Dazs is offering through Loop. As part of a reusable delivery strategy, the brand created an attractive stainless-steel canister. The design is ideal for a premium brand. The containers provide a new canvas for packaging ingenuity. Reminiscent of old-school metal lunch canisters, images and graphics jump off the silver background. With such a substantial upgrade, Häagen-Dazs stands out from other premium ice creams, essential in a competitive category. Thanks to this packaging, the ice cream is even more fun and delicious to eat. The double-walled container allows the ice cream to melt more quickly at the top than at the bottom. This way, people enjoy a balanced level of density. The ice cream maintains its consistency even when you reach the bottom. The container also protects the product throughout transport. This is more than just sustainable packaging; it’s packaging that elevates the consumer experience. Colgate-recyclable-tubes-web.jpg It’s on record, more than a billion toothpaste tubes in the US alone end up in landfills. No doubt many go to the oceans. One reason for this is that the packaging is manufactured with multiple layers making it ineligible for recycling. Colgate-Palmolive spent five years developing a new recyclable tube made of high-density polyethylene (HDPE), the same plastic that is used for milk jugs, with the promise of compatibility with our current recycling infrastructure. This is no doubt a breakthrough for the category. Reality Check #3: While this is a great concept, we know a large portion of recyclable packaging still goes to waste. That’s because our recycling industry (the people who pick up/sort our trash) urgently needs an overhaul. How does the recycling facility know the difference between this tube and every other? Tom-Newmaster-recyclable-tubes-quote-web.jpg Sugarcane — how sweet it is. Sugarcane usage as a packaging material is blowing up right now. It possesses the trifecta of ethical packaging benefits: it’s renewable, biodegradable, and compostable. In fact, anything made from sugarcane will degrade within 60 to 90 days. We’re seeing it everywhere: coffee cups, utensils, single-use plates, to-go boxes, bags, lids, pizza boxes, straws, and tons more. Companies like Good Start Packaging — a leading source of sugarcane packaging — are also a real threat to expanded polystyrene foam (EPS). Here’s a material that takes 500 years to degrade and consumes 30% of the space in every landfill. If it goes to the ocean, EPS inevitably breaks down into microplastic. And we all know what that does to marine life. A parting word from Everleigh.
I mentioned my friend’s daughter Everleigh who, at 10, is passionate about preserving our oceans. So, what can we do to assure her generation they’re being heard? We can start by taking accountability for the role our industries play in addressing the problems. I’ve talked about some of the innovations and new materials that packagers are bringing to the table. I’ve also shared what activists are doing to clean up the GPGP. But here’s the final reality check. Reality check #4: We can fix the mistakes of past generations, but it takes more forward thinking to make our efforts toward sustainability “sustainable.” Four questions we need to ask ourselves to really bring about change: 1.  How can we improve the recycling infrastructure so that the degradable toothpaste tube goes to the right place? According to Unilever, “It’s technically possible to recycle about 70% of our product portfolio. However, what is actually recycled is lower because of the lack of infrastructure of communities.” 2.  How we ensure that new materials, whether sugarcane or innovative plastics, get sorted correctly and not end up in the ocean? 3.  How do we advance the use of products that truly fit the circular economy, such as reusables, compostables, and post-consumer recycled plastics (PCR)? 4.  How do we partner with our clients to create packaging that would delight Everleigh’s generation? This starts with avoiding new plastics; instead using only recycled options. As a packaging designer, I realize this isn’t a small ask, but a necessary one, considering the power each generation has on the way we live our lives, conduct business, and confront change. If we want to create a loyal customer base, we need to accept that the “wonder material” known as plastic needs to adapt well to our new circular economy.

How implementing reuse systems can impact cities

By Tom Szaky December 10, 2021
Image via Iryna Inshyna on Shutterstock
Humankind itself doesn’t cause climate change. Rather, it’s the way it relates to nature. Indigenous practices, for example, have long sustained balance between human development and nature’s activities. However, on the road to industrialization, advancements that increased productivity disrupted that balance, including many linear (take-make-waste) practices that drive climate change. With the urbanization and the formation of cities, demands on these improved systems only increased. The breakthroughs in mass production, material sourcing and transportation that significantly and efficiently cut the time, money and human labor needed to produce and distribute goods allowed for wide and surged consumption of commodity items. This came to a head in the 1950s, when the appetite for convenience, lowered costs and a culture of consumerism really took off. When single-use and disposability (specifically of plastic, a synthetic material nature cannot absorb) exploded to enable fast-moving, on-the-go lifestyles, recycling and reintegration of material did not keep pace. As a result, about 8 billion tons of plastic have been produced since the 1950s, and more than 300 million tons are produced each year. At best, 9 percent of all plastic ever made has been recycled. The rest has been landfilled, incinerated or littered; these practices generate billions of tons of the greenhouse gases that cause climate change. Cities, with growing populations and demands on resources, exacerbate the waste crisis and may be a key focus area to help change course away. Cities occupy just 3 percent of the Earth’s surface but house more than half of the world’s population, consume over 75 percent of global resources, and generate 60 to 80 percent of human-induced greenhouse gas emissions. Urbanization is only increasing, with 70 percent of the global population expected to live in cities by 2050.  
Cities, with growing populations and demands on resources, exacerbate the waste crisis and may be a key focus area to help change course away.
With this, cities are also at the forefront of suffering from its scale. Waste management systems fail to meet need in developed and underdeveloped markets alike, overwhelmed by cost and insufficient infrastructure. Public health and safety are huge issues where this is especially lacking, contributing to the ongoing impacts on air, water, soil and overall quality of life for residents. Reuse and durability-based systems may provide unexplored pathways to address these challenges with positive economics; reuse systems are estimated to present a $10 billion business opportunity if only 20 percent of single-use packaging today were converted, creating jobs, cutting costs of managing waste and litter and driving value with new revenue streams. Where business goes, change tends to come, but strong support from city functions is essential to driving reuse forward. For example, the Tokyo Metro Government (TMG) was absolutely instrumental to the successful launches and expansions for our Loop reuse platform in Japan. Involved in promotion at the early stages, the city helped fund pilot testing and consumer surveys in our reusable bento lunch containers project. With their own commitments to circular economy and waste reduction targets, TMG aligns business with the environment, and is even attracted to the fact that our platform engages competing brands. Building upon the existing long-term relationship with TerraCycle Japan through recycling programs with municipalities and schools, the clear and consistent support from the start afforded credibility and footing for the platform in a new market. As the governor of the city of Tokyo stated in a recent press conference, "Large cities in developed countries such as Tokyo can make a significant impact on the global economy by playing a leading role," noting reuse was standard in the region for glass bottles for beer, sake and more just 30 years ago. Cities are complex ecosystems in themselves, so a "buy anywhere, return anywhere" ecosystem for reusables that makes it easy for consumers to access, businesses to sell and cities to benefit from is as much a feat of design as a reimagined container or durable package. This is a top priority for Loop as we expand to new markets and optimize our offerings. Today for grocery we have Aeon in Japan, Tesco in the United Kingdom, Carrefour in France and Walgreens and Kroger’s Fred Meyer banner coming soon in the United States, and the biggest names in QSR (quick service restaurant): McDonald’s was the first to pilot the model in select stores in the U.K., followed by Tim Horton’s in Canada, then Burger King in several countries in the coming months. With so much ground still to break (reuse exists today across the modern economy, but the models are incompatible — think beverages in Germany to propane tanks in the U.S.), recommendations and guardrails for cities can help minimize risk, maximize short-term returns and steer the way for scaled, widespread adoption and impact for reuse. Collaborative working frameworks for a fully implemented reuse system — this is the purpose of the World Economic Forum Consumers Beyond Waste (CBW) initiative’s community papers, released in conjunction with the World Economic Forum Sustainable Development Impact Summit during U.N. General Assembly week earlier this year.  
Cities have policy (regulation), infrastructure and procurement resources they can use to engage the public and incentivize actions that benefit reuse.
Featuring Design GuidelinesSafety Guidelines and The City Playbook, the documents offer a holistic view for reuse in different environments, and are authored by a variety of stakeholders for a less wasteful future. I am one of them, along with city officials, retailers and many more leaders from the public and private sector. Enabling manufacturers to produce reusables that can be sold at any retailer for a consumer to buy and return anywhere — safely, affordably and conveniently — in their local cities requires support from those cities. Cities have policy (regulation), infrastructure and procurement resources they can use to engage the public and incentivize actions that benefit reuse. It’s the consensus of the above papers that some of the greatest challenges cities face are funding, infrastructure and institutional barriers, so pushing initiatives through must include answering big questions about viability and benefit. Who is reuse good for, in the long and short term, and how do we protect our citizens and commerce during the learning periods? This is key for continued development of standards for cities that are socially equitable and environmentally positive, and help to align their activities with the global ecosystem.

Scaling Reuse Must Include Consensus on Safety, Design, Considerations for Cities

Cities are complex ecosystems that both exacerbate and suffer from the scale of packaging waste. Standards for key areas of design, safety and city programming minimize risk, drive collaboration and provide trustworthy information for stewarding game-changing reuse strategies.
Our society has a longstanding relationship with and dependency on single-use products. Businesses and consumers alike are accustomed to its virtues of cost and convenience, making everyday items accessible to more people than ever before. But because of this reliance and focus on a system that takes, makes and wastes products after one use, few guidelines or blueprints for viable, sustainable alternatives — including reuse — exist in a usable format. Reuse models are growing across the modern economy, but they are fragmented such that they cannot achieve impact of scale. Without foundational guidelines to drive collaboration, standardization and defining of best practices, it would be near-impossible for new and emerging reuse models to effectively implement or accelerate for impact. But there’s a case for doing so. Reuse systems can reduce plastic pollution and greenhouse gas emissions; and they are estimated to present a $10 billion business opportunity if only 20 percent of single-use packaging today were converted to reuse. So, how do we ensure everyone gets what they need out of their products — without the waste? Many would argue that ending packaging waste begins with design. Modern packages are lightweight, inexpensive and high-function (the world is used to the spouts, resealable closures, and easy-open tops of single-use containers), and literally designed to go in the trash. Defining the specifications of a package that can be physically and systematically reused is one of the first things to do. Then, determining exactly how many times said package can be cycled around (including collection, cleaning and refilling for the next person to enjoy) before it comes out superior to single-use demonstrates the value. The fewer times, the better; but a recommendation from an industry expert or experienced practitioner in the space can help businesses at different stages in their journey consider how and when reuse will work for them. There are a lot of ideas and concepts out there; but with so much work to do in solving single-use plastic waste, clear and consistent guardrails for reuse will steer the way for scaled, widespread adoption and impact. This is the purpose of the World Economic Forum (WEF) Consumers Beyond Waste (CBW) initiative’s community papers, released in conjunction with the WEF’s Sustainable Development Impact Summit during UN General Assembly week earlier this year. Featuring Design GuidelinesSafety Guidelines and The City Playbook, the documents are authored by a variety of contributors with a stake in the race to a less wasteful world; I am one of them — along with city officials, quality-assurance experts, retailers and many more leaders from the public and private sector. The papers offer a holistic view for reuse in different environments, as well as the different entry points for stakeholders along the supply chain. Offering recommendations based on experience, Loop has our own design guidelines for brands and manufacturers entering the platform — we recommend a product be able to withstand a minimum of 10 reuse cycles to qualify, and be recyclable into itself at the end of its life. Through this approach we have seen tremendous innovation, not just in sustainability but also in packaging design. Through reverse logistics, it’s possible to recover durable packaging forms in combinations of materials that improve functionality above and beyond the convenience of many single-use packages, such as a resealable food container or spring-loaded soap pump. Designing for reuse also includes the architecture of the systems packages flow through. Where Loop is a coalition of major consumer product companies and leading retailers working with trusted vendors to transport, clean, store and refill containers, it's a matter of front and backend design to enable a manufacturer to produce reusables that can be sold at any retailer for a consumer to buy and return anywhere, safely and conveniently. Where today’s largest scaled reuse model is pre-fill, which allows the consumer to buy filled products on a store shelf and return the empties into a bin (think beverages in Germany or propane tanks in the US), the challenge is that the models are incompatible: Empty propane tanks cannot be returned to the same location as an empty beer keg, and vice versa. Creating a “buy anywhere, return anywhere” ecosystem for reusables will make it easy for consumers to access, and businesses to sell. This, too, is a feat of design. Residents in Loop markets can now enter their favorite retailers and find a part of the store dedicated to reuse. With purchase, a deposit is paid, which is refunded in full upon return to any Loop retailer, putting this “waste” into a designated reuse bin versus a trash can or recycling bin. Just before the community papers I mentioned earlier, CBW released the Future of Reusable Consumption Models report, which outlined aspects of a “successful, large-scale, system-wide reuse paradigm.” One of these is consumer experience, where people have access to a variety of reusables that can compete with disposables on a number of scales, including convenience. People purchase consumables in a variety of settings, so it's important they have access to a variety of experiences. For grocery, we have Tesco in the UK; Carrefour in France; Aeon in Japan; and Walgreens and Kroger’s Fred Meyer banner coming soon in the US; and the biggest names in QSR (quick service restaurant): McDonald’s was the first to pilot the model in select stores in the UK, with Tim Horton’s in Canada and Burger King in several countries to follow. Which brings us to the matter of public health and safety, which have a great deal to do with packaging and systems design. Consumers need to know a system that circulates containers is safe and sanitary. Different product categories have different health and safety requirements — the food and beverage industry tends to have stricter standards than body care and cosmetics, for example. Packaging durability is a huge factor in designing for safety, as it impacts cleaning processes, degradation, and consumer safety and ease of use. If a package is cleaned 10 times at a certain temperature, materials must not prematurely degrade aesthetically or functionally; and if the type of material is one that might break with the consumer or along the route, design or logistics must allow it to do so safely; communications can support proper handling and education. Government plays a role in overseeing regulations for public health. As the Governor of the City of Tokyo stated in Loop and the World Economic Forum’s recent United Nations week press conference, “Large cities in developed countries, such as Tokyo, can make a significant impact on the global economy by playing a leading role,” noting reuse was standard in the region for glass bottles for beer, sake and more just 30 years ago. Cities are complex ecosystems that both exacerbate and suffer from the scale of the waste crisis. In the City Playbook, CBW notes some of the greatest challenges cities face are funding, infrastructure and institutional barriers; so, the consensus to pushing initiatives through includes seeking ways to answer big questions about viability and benefit. This is key to developing a roadmap for cities that is socially equitable, environmentally positive and safe. Examples of actions cities might take for the short term include aligning reuse with existing objectives (i.e. job creation and economic development) or testing reusables for city government administration (i.e. food service and cafeteria for public buildings), so as to engage policymakers, NGOs, local businesses, media, residents and the many other internal and external stakeholders towards the vision for a circular city. Points of consensus are milestones in the journey out of the waste crisis. Agreement on key areas of design, safety and city programming minimizes risk, drives collaboration and provides changemakers trustworthy information for stewarding reuse strategies and program development within organizations. There’s so much room for innovation; but to bring them to scale, actors must come together over a shared vision, with the resources to back it up.

Loop’s revolutionary reusable packaging system is coming to a bunch of big stores

If you walk into a Fred Meyer supermarket in Portland, Oregon, in late October, you might notice something new: In some of the chain’s stores, a new section will sell common products, like hand soap, in reusable packaging that customers can later bring back to the store.
Kroger, which owns the chain and plans to roll out the new reusable section in 25 Fred Meyer stores in Portland before potentially expanding to other cities, is one of several retailers to begin using Loop, a platform for reusable packaging that started with online orders. “It’s really aligned with our vision of a world with zero waste,” says Denise Osterhues, senior director of sustainability and social impact at Kroger. “It’s innovative, and it’s a platform that could ultimately help end single-use packaging and disposability that we’ve all become so accustomed to.” Customers pay a deposit on the package, which they get back when they return it to a drop-off bin in the store. Then Loop sorts the packaging at a “micro node” nearby, and sends it to a larger facility for cleaning and sanitizing, before ultimately returning it to a manufacturing facility to be refilled and reused. Some of the brands in the platform use standard packaging that just hasn’t been reused in the past, like Gerber baby food in glass containers. The same platform launched in Tesco, the U.K. supermarket chain, in ten stores earlier this month. Tesco, which is offering 88 different items in reusable packaging, calculated that if customers in those 10 stores switch to the reusable version of three products—Coca-Cola, Heinz Tomato Ketchup, and Ecover cleaning products—the packages would be reused more than 2.5 million times a year. While the new store display has signs explaining how the system works, Tesco is also using Loop “ambassadors” at the launch to help customers understand what to do. “It’s effectively exactly like how organic came to life in stores, when you would walk into a store and see an organic section and then shop that section if you care about organic products,” says Tom Szaky, CEO and founder of Terracycle, the recycling company that created the Loop platform.
  [Photo: Loop]The system launched in late 2020 in Carrefour, a large retailer in France, and in Aeon stores in Japan in May 2021. Walgreens plans to begin using the in-store system in early 2022, and Ulta Beauty will follow sometime next year, along with Woolworth’s in Australia. Some restaurant chains are also beginning to use the system, including McDonald’s, Burger King, and Tim Horton’s.  Kroger chose to launch first in Fred Meyer stores in Portland, Osterhues says, because the company knew that customers in the area were particularly interested in sustainability (the stores also have a larger physical footprint than some of the company’s other supermarkets, so there was more space available for the new display). It hopes to expand. “Our hope would be to scale it, because that’s when it becomes truly financially beneficial, as well as better impact for our planet,” she says.
“The critical piece here is scale,” says Szaky. “It’s more brands and retailers really taking this seriously by going in-store and then scaling their in-store presence. And that will then leave us where hopefully in a few years from now, you’ll be able to go anywhere, into your favorite retailer, and see a Loop section with whatever your favorite brands are.”
New legislation could also help push it forward, he says. In France, for example, a new anti-waste law includes a ban that will begin next year on disposable tableware in restaurants, including fast food chains. “That’s actually a pretty big deal for something like a McDonald’s,” he says.

Is recycling a waste? Here’s the answer from a plastics expert before you ditch the effort

Eric Rosenbaum   KEY POINTS
  • Terracycle and Loop founder and CEO Tom Szaky says the economics of the recycling business are broken in key ways, but consumer and corporate interest in building a circular economy continues to grow.
  • Low oil prices, bans on imported recyclables in countries like China, and the latest trends in packaging design make it harder to recycle.
  • Still, the recycling CEO says getting to a low-waste or even zero-waste economy is the way the world once was and can be again.
  Recycling may make you feel better in a very small way about your role in helping to avert a global apocalypse, but even in “friendly” places, from John Oliver to NPR podcasts, recycling, especially of plastics, is being given a hard look. More people are wondering: Does it work? The debate is not new. For years the economics of plastic recycling have been questioned. But the problem is not going away. The globe is already producing two trillion tons of solid waste a year and is on pace to add more than a trillion more on an annual basis in the coming decades, according to World Bank data. A recent study found that the 20 top petrochemical companies in the world, among the group Exxon Mobil and Dow, are responsible for 55% of the world’s single-use plastic waste, and in the U.S., specifically, we are generating about 50 kilograms of throwaway plastic a year, per person. The Covid pandemic has heightened attention to the issue, as use of disposable goods went up anywhere from 30% to 50%, according to Tom Szaky, CEO of recycling companies Terracycle and Loop, who joined CNBC’s Leslie Picker on a recent CNBC Evolve Livestream about sustainability and business. He says concerns about the macroeconomics of waste management systems suffering economically are real, and there are ways to solve it that don’t just rely on government. We all need to take a deeper look at how we recycle beyond the feel-good blue bin, and what we can do to get past the problems. 1. The economics of recycling are broken. Szaky says recent reporting on the economic issues for plastics recycling and restrictions around the world on imported recyclables, which are both weighing on the sector, are not an anti-environmental attack but “absolutely rooted in facts.” He says it is important for consumers to understand that just because you recycle an item does not mean it will be recycled in the end. “What makes something be recycled in a country doesn’t have to do with what we normally think: Can it be recycled? Most of the things we put in blue bins that are not recycled are put in the garbage because they are things waste companies can’t make money off, and that is the true bottleneck,” he said. The right question is “Can a garbage company, the actual company in charge of the recycling in the geography, recycle it at a profit?” According to Szaky, what’s happened is a profitability model that is decreasing as oil prices have gone down, which started in 2015, and even after a commodities market recovery post-Covid, have stayed down relative to recent history. The petrochemicals companies that make plastics rely less on recyclables when the price of their core commodity, oil, is lower. Second, China stopped importing recyclable waste, a move followed by other countries in 2018. Both issues are critically important to the business model of recycling and the health of the infrastructure because they circle back around to how much demand there is to collect those material types. “And it all hurt the business construct for recycling companies and that means our recycling capabilities are deteriorating,” Szaky said. “Recycling is not out there trying to do the best it can but maximize profit and we need to think about that as we aim for a more circular economy,” he said. 2. A packaging industry mega trend is working against recycling The biggest global trend in packaging is not helping. Efforts to reduce costs in products and packaging are “objectively reducing value” Szaky said, “which also makes them less recyclable.” The “lightweighting” of packages, making them have less physical material and more complexity as a result of that design challenge, makes them less profitable to recycle. All of these economic issues lead to a situation in which what people would like to see is not what they would actually see if they went behind the scenes in the recycling industry. But Szaky says at the same time, consumers want to recycle more, and more companies are leaning into their own recycling. What companies decide to do about recycling on their own initiative — and pay for — can be done in spite of the challenging economics and can still pay off for the companies in the future. That’s the Terracycle business model, working with companies to fund their own voluntary recycling efforts. And that is more important at a time when the economics of consumer recycling are a mess. 3. Why companies don’t recycle enough, but should more Szaky says what’s really important right now is companies deciding to lean in and create their own recycling programs. But he says it is still not easy for the corporate mindset to embrace. “As a retailer or brand, if you just frame it as ‘the right thing to do’ the funding will be small and sporadic because there is no P&L logic to do it. But if you can use it to drive foot traffic like Walmart with car seats or Staples with pens, it can be monetizable,” he said. Brands that run their own recycling programs should be doing it as part of a plan to drive more market share and brand preference. And he says it becomes “monetizable in a recognizable way” the bigger they become and the faster they can grow. “That is true for any sustainability measure a company is looking to implement in the short term.” Some products won’t be recycled unless companies are the recycler. A dirty diaper or toothbrush or cigarette is not recyclable because it costs too much. It is another economic problem, not a physics or chemistry one. Terracycle recently launched a diaper recycling program in Holland and now it is expanding to many countries. “Diaper recycling doesn’t make sense from an economic perspective. It is expensive to collect and process,” Szaky said. But for the company that leads, “it can drive core value maybe better than TV ads,” he added. Consumers want to do the right thing, and companies may want to do the right thing as well in acknowledging an environmental crisis — and fund a feel-good marketing campaign — but Szaky stressed that they need to see “not just the right thing, but that it will pay back.” Szaky’s other business, Loop, which works with companies on circular economy production, recently teamed with a luxury watchmaker on the world’s tallest landfill: Mt. Everest. The mountain is littered with oxygen tanks from previous climbs and the watchmaker was able to both clean up the mess, an expensive undertaking, and source metal for its watches, which may add to the story it sells consumers in a way competitors can’t match. 4. The real solution is obvious: Consuming less The white elephant, the fundamental answer to the challenge, is modulating consumption downward, but Szaky says that is a hard one for the business world to champion. “It is fundamentally de-growth.” Loop, even working with companies to create products from recyclables and where the recycling is part of the product story and selling point, “is not the answer to the garbage problem,” he says. It may be among the best ways to manage waste in a circular economy, but Szaky says we will need to aim to go back to a world where garbage doesn’t exist. “Before the 1950s, we received milk from the milkman and mended clothes and cobbled shoes,” he says. Reuse does still exist at scale today in certain markets, such as beer kegs and propane tanks, but not nearly enough, and without the convenience of an infrastructure which makes return easy and widespread. That is one of the keys he sees for the future. 5. Reusable versus recyclable While the goal of zero waste is ambitious, it is realistic to imagine a world in which more consumer products become reusable, if they can be easily returned in the circular economy. Reusable versions of products from Nestle, Procter & Gamble, Kroger, Walgreens, and hundreds of other retailers are being, or will in the future, be made available to consumers. We can switch a consumer who maybe doesn’t even care about sustainability and that’s frankly the most important. We need to bring everyone along, not just people who view this as a high-passion project. Szaky envisions the buy-and-return-anywhere model as a key one for the future. “Buy your favorite shampoo bottle in a reusable form at a Walgreens in New York and drop it off at Burger King and buy an Impossible Whopper in reusable packaging too, and drop that off somewhere else.” This model can help solve a big problem: consumer behavior. Szaky says while there is a significant consumer market motivated by environmental concerns and consumption, for the recycling industry to really work it needs to avoid relying on the most-motivated consumers. Even plastic recycling that is economic today, such as soda bottles, only results in 1 in 4 bottles being recycled. The No. 1 goal for most consumers will remain convenience and value. A reusable package is an upgrade over a disposable package in an objective way, and with the convenience of drop-off locations it can lead to an easier shift in behavior, but it has to be offered at the right value to consumers. “With all three things coming together we can switch a consumer who maybe doesn’t even care about sustainability and that’s frankly the most important,” Szaky said. “We need to bring everyone along, not just people who view this as a high-passion project.” 6. Economics are busted but the recycling mindset matters For all the debate over recycling and the hard facts about its economics, Szaky says there is a reason we talk about it so much. The individual journey with sustainability always begins with recycling. And that remains key and a reason to figure out how to fix its short-term and long-term challenges. When people start recycling, it does open the pathways to a broader change in mindset. “It may lead to a plant-based diet instead of animal protein, or a smaller life, or biking ... creating even more important outcomes,” he says. “But first we have to solve the business problem.”

Is recycling a waste? Here’s the answer from a plastics expert before you ditch the effort

Eric Rosenbaum   KEY POINTS
  • Terracycle and Loop founder and CEO Tom Szaky says the economics of the recycling business are broken in key ways, but consumer and corporate interest in building a circular economy continues to grow.
  • Low oil prices, bans on imported recyclables in countries like China, and the latest trends in packaging design make it harder to recycle.
  • Still, the recycling CEO says getting to a low-waste or even zero-waste economy is the way the world once was and can be again.
  Recycling may make you feel better in a very small way about your role in helping to avert a global apocalypse, but even in “friendly” places, from John Oliver to NPR podcasts, recycling, especially of plastics, is being given a hard look. More people are wondering: Does it work? The debate is not new. For years the economics of plastic recycling have been questioned. But the problem is not going away. The globe is already producing two trillion tons of solid waste a year and is on pace to add more than a trillion more on an annual basis in the coming decades, according to World Bank data. A recent study found that the 20 top petrochemical companies in the world, among the group Exxon Mobil and Dow, are responsible for 55% of the world’s single-use plastic waste, and in the U.S., specifically, we are generating about 50 kilograms of throwaway plastic a year, per person. The Covid pandemic has heightened attention to the issue, as use of disposable goods went up anywhere from 30% to 50%, according to Tom Szaky, CEO of recycling companies Terracycle and Loop, who joined CNBC’s Leslie Picker on a recent CNBC Evolve Livestream about sustainability and business. He says concerns about the macroeconomics of waste management systems suffering economically are real, and there are ways to solve it that don’t just rely on government. We all need to take a deeper look at how we recycle beyond the feel-good blue bin, and what we can do to get past the problems. 1. The economics of recycling are broken. Szaky says recent reporting on the economic issues for plastics recycling and restrictions around the world on imported recyclables, which are both weighing on the sector, are not an anti-environmental attack but “absolutely rooted in facts.” He says it is important for consumers to understand that just because you recycle an item does not mean it will be recycled in the end. “What makes something be recycled in a country doesn’t have to do with what we normally think: Can it be recycled? Most of the things we put in blue bins that are not recycled are put in the garbage because they are things waste companies can’t make money off, and that is the true bottleneck,” he said. The right question is “Can a garbage company, the actual company in charge of the recycling in the geography, recycle it at a profit?” According to Szaky, what’s happened is a profitability model that is decreasing as oil prices have gone down, which started in 2015, and even after a commodities market recovery post-Covid, have stayed down relative to recent history. The petrochemicals companies that make plastics rely less on recyclables when the price of their core commodity, oil, is lower. Second, China stopped importing recyclable waste, a move followed by other countries in 2018. Both issues are critically important to the business model of recycling and the health of the infrastructure because they circle back around to how much demand there is to collect those material types. “And it all hurt the business construct for recycling companies and that means our recycling capabilities are deteriorating,” Szaky said. “Recycling is not out there trying to do the best it can but maximize profit and we need to think about that as we aim for a more circular economy,” he said. 2. A packaging industry mega trend is working against recycling The biggest global trend in packaging is not helping. Efforts to reduce costs in products and packaging are “objectively reducing value” Szaky said, “which also makes them less recyclable.” The “lightweighting” of packages, making them have less physical material and more complexity as a result of that design challenge, makes them less profitable to recycle. All of these economic issues lead to a situation in which what people would like to see is not what they would actually see if they went behind the scenes in the recycling industry. But Szaky says at the same time, consumers want to recycle more, and more companies are leaning into their own recycling. What companies decide to do about recycling on their own initiative — and pay for — can be done in spite of the challenging economics and can still pay off for the companies in the future. That’s the Terracycle business model, working with companies to fund their own voluntary recycling efforts. And that is more important at a time when the economics of consumer recycling are a mess. 3. Why companies don’t recycle enough, but should more Szaky says what’s really important right now is companies deciding to lean in and create their own recycling programs. But he says it is still not easy for the corporate mindset to embrace. “As a retailer or brand, if you just frame it as ‘the right thing to do’ the funding will be small and sporadic because there is no P&L logic to do it. But if you can use it to drive foot traffic like Walmart with car seats or Staples with pens, it can be monetizable,” he said. Brands that run their own recycling programs should be doing it as part of a plan to drive more market share and brand preference. And he says it becomes “monetizable in a recognizable way” the bigger they become and the faster they can grow. “That is true for any sustainability measure a company is looking to implement in the short term.” Some products won’t be recycled unless companies are the recycler. A dirty diaper or toothbrush or cigarette is not recyclable because it costs too much. It is another economic problem, not a physics or chemistry one. Terracycle recently launched a diaper recycling program in Holland and now it is expanding to many countries. “Diaper recycling doesn’t make sense from an economic perspective. It is expensive to collect and process,” Szaky said. But for the company that leads, “it can drive core value maybe better than TV ads,” he added. Consumers want to do the right thing, and companies may want to do the right thing as well in acknowledging an environmental crisis — and fund a feel-good marketing campaign — but Szaky stressed that they need to see “not just the right thing, but that it will pay back.” Szaky’s other business, Loop, which works with companies on circular economy production, recently teamed with a luxury watchmaker on the world’s tallest landfill: Mt. Everest. The mountain is littered with oxygen tanks from previous climbs and the watchmaker was able to both clean up the mess, an expensive undertaking, and source metal for its watches, which may add to the story it sells consumers in a way competitors can’t match. 4. The real solution is obvious: Consuming less The white elephant, the fundamental answer to the challenge, is modulating consumption downward, but Szaky says that is a hard one for the business world to champion. “It is fundamentally de-growth.” Loop, even working with companies to create products from recyclables and where the recycling is part of the product story and selling point, “is not the answer to the garbage problem,” he says. It may be among the best ways to manage waste in a circular economy, but Szaky says we will need to aim to go back to a world where garbage doesn’t exist. “Before the 1950s, we received milk from the milkman and mended clothes and cobbled shoes,” he says. Reuse does still exist at scale today in certain markets, such as beer kegs and propane tanks, but not nearly enough, and without the convenience of an infrastructure which makes return easy and widespread. That is one of the keys he sees for the future. 5. Reusable versus recyclable While the goal of zero waste is ambitious, it is realistic to imagine a world in which more consumer products become reusable, if they can be easily returned in the circular economy. Reusable versions of products from Nestle, Procter & Gamble, Kroger, Walgreens, and hundreds of other retailers are being, or will in the future, be made available to consumers. We can switch a consumer who maybe doesn’t even care about sustainability and that’s frankly the most important. We need to bring everyone along, not just people who view this as a high-passion project. Szaky envisions the buy-and-return-anywhere model as a key one for the future. “Buy your favorite shampoo bottle in a reusable form at a Walgreens in New York and drop it off at Burger King and buy an Impossible Whopper in reusable packaging too, and drop that off somewhere else.” This model can help solve a big problem: consumer behavior. Szaky says while there is a significant consumer market motivated by environmental concerns and consumption, for the recycling industry to really work it needs to avoid relying on the most-motivated consumers. Even plastic recycling that is economic today, such as soda bottles, only results in 1 in 4 bottles being recycled. The No. 1 goal for most consumers will remain convenience and value. A reusable package is an upgrade over a disposable package in an objective way, and with the convenience of drop-off locations it can lead to an easier shift in behavior, but it has to be offered at the right value to consumers. “With all three things coming together we can switch a consumer who maybe doesn’t even care about sustainability and that’s frankly the most important,” Szaky said. “We need to bring everyone along, not just people who view this as a high-passion project.” 6. Economics are busted but the recycling mindset matters For all the debate over recycling and the hard facts about its economics, Szaky says there is a reason we talk about it so much. The individual journey with sustainability always begins with recycling. And that remains key and a reason to figure out how to fix its short-term and long-term challenges. When people start recycling, it does open the pathways to a broader change in mindset. “It may lead to a plant-based diet instead of animal protein, or a smaller life, or biking ... creating even more important outcomes,” he says. “But first we have to solve the business problem.”

Earth911 Podcast: Loop’s Circular Shopping Expands to Canada

Earth911 Podcast Innovator Interview As shopping from home grows, packaging waste is piling up. Loop offers an alternative: a delivery service for food and home goods that picks up used product packaging, then cleans and reuses it to eliminate trash. Earth911 talks with Heather Crawford, global vice president of marketing and e-commerce at Loop, about the company’s expansion into Canada. Loop now offers service in the U.S., U.K., and France. Its Loop Tote bag is dropped off and picked up by FedEx, and it will soon offer in-store Tote exchanges at Kroger, Walgreens, and Canada’s Loblaws locations. Heather Crawford, vice president of marketing and ecommerce at Loop Crawford shares how Loop, which was launched by specialty recycling company TerraCycle, designs reusable packaging that can be repeatedly cleaned and refilled with products in order to reduce post-consumer waste. We also discuss the sustainability of online shopping and how, at scale, it can be more efficient than traditional bricks-and-mortar retail shopping. Loop is partnering with several grocery and drugstore chains to introduce in-store Tote pick-up and drop-off services. Both at-home and retail services are essential to reaching consumers who want to remove single-use packaging from their shopping list. Loop currently offers hundreds of product options and is expanding its partnerships with food and personal care brands to introduce more reusable product packaging. Take a few minutes to learn more at the U.S. Loop storeCanadian storeU.K. store, or the French store.

The Canadian rummaging through trash cans around the world

Tom Szaky says, “Wow! " Maybe he plugs his nose like we all do, but in front of a full Pampers - just like in front of a cigarette butt, glasses of glasses thrown in the trash or fabrics with enigmatic names of fibers doomed to the dumps. - he sees the opportunity to find a solution. Born in Hungary, arrived in Toronto at the age of 5, now living in New Jersey - he studied at Princeton -, Tom Szaky is truly one of the entrepreneurs who stand out in the world by greedily embracing the challenges of the circular economy. You may know one of his babies, Loop, a company already present in the United States, France and the United Kingdom, which has just arrived in Canada and which allows brands sold in supermarkets to use containers. recorded. It's being tested in Toronto now, in partnership with Loblaw and other well-known brands, such as Heinz or Häagen-Dazs. "It's been just over a week and we've exceeded our one-month goals," Szaky said in a telephone interview. Basically: we order online, it is delivered by Loop, the customer consumes the contents - soup, ketchup, juice, etc. -, and the container is then taken back by a delivery system which will carry everything for cleaning. Then the containers will return to the brands, who will refill them, resell them. You get the picture. And it will be in Montreal at the beginning of 2022, the garbage recycling giant told me. Because there isn't just Loop in the life of the 39-year-old entrepreneur. There is also TerraCycle, his first company, dedicated to the transformation of waste. His first product, at the very beginning, in 2001, was kitchen waste, which he vermicomposted, sold in recycled plastic bottles. But today, it has gone much further in the recovery and transformation of waste long considered irrecoverable, such as dirty disposable diapers - which its teams make into plastics in particular - and cigarette butts, from which they also extract plastics from the filter, while composting the rest of the tobacco. TerraCycle also works to collect and process plastic bottles around the world. Because the company is everywhere, from Tokyo to Trenton, in Ontario, present in twenty countries. With laboratories all over the place, but mainly in New Jersey - in a landfill - TerraCycle is constantly doing research. Its business model: wait for a major player to ask for its help. The company does not seek to sell its green solutions. She finds solutions for those who want them. In large scale. Its partners are called Walgreens, Home Hardware, Procter & Gamble… The list goes on. One of the next projects: promoting waste as an information medium. The contents of diapers say a lot about the health of babies, as does used oil on the condition of engines, says Tom Szaky. You might as well take advantage of everything that can be revealed.   Another avenue explored: the Loop system of material reuse in a loop, but applied to cloth diapers and children's clothing. It's coming fast in the United States and the United Kingdom. In both cases, in partnership with very large companies. So, we forget the small community cloth diaper cleaning service. We think big brands sold in supermarkets. With cleaning, transport and reuse systems in the case of diapers. And simply a cash deposit system, such as a deposit, in the case of baby clothes. Deposit that we recover, of course, by bringing back clothes that have become too small. *** TerraCycle is not a newcomer to the world of waste recovery and recycling. It was founded in 2001 when young Szaky was a student at Princeton. It was during a trip with friends from university to Montreal, at this time, that he saw for the first time worms transforming organic waste into compost and that he had the idea of make the first product of his waste recovery business. Today, about a third of the company's work is industrial waste, and the rest is our everyday consumer waste. The next challenge right now is, you guessed it, on the side of masks, gloves and all the disposable equipment used in the fight against COVID-19. “There's a whole new stream of waste here,” says Szaky. TerraCycle takes care of it.   But the real challenge, 20 years after the discovery of vermicomposting, is no longer concentrated at all towards the quest for new waste streams, new gold in the bins. The new frontier is logistics on a large scale, the search for solutions that work on a large scale and, above all, very, very large. Loop, for example, now operates on a large scale in the United Kingdom with the giant Tesco, in France with Carrefour, and in the United States with notably Walgreens and Burger King! Major players.   Currently, explains Mr. Szaky, there is a remarkable awakening of individuals to the need to produce less waste as well as to recover and reuse objects. Consumers' support is therefore less difficult to obtain than before. Loop's home in Toronto is one example, as is the proliferation of grocery stores offering unpackaged products. But the world of recovery and reuse is also becoming more complex, and the financial challenges are not trivial. The price of oil is low, so there is less reason to want to recover its derivatives otherwise. Also, the raw material is not what it was 20 years ago. There is less waste than before, they are lighter, packaging is often made with more complex materials, more difficult to work with and to break down. (Besides, Szaky thinks that packaging should be simplified, not become more and more multi-layered and multi-material.) Countries that bought waste from others became more demanding. We saw it, in Quebec, when China started to refuse our waste.   When I ask him if the company also intends to take new paths to integrate its work into larger, more global pollution reduction systems, Tom Szaky answers no. “You want to focus on one problem and be good,” he says. So Loop does not come with a guarantee of green transport, for example. It is up to the partners to then be consistent. In France, Carrefour is looking for a solution for “green” delivery. And can consumers do more to recycle better?   Should we buy everything second-hand? At TerraCycle, offices all over the planet are fitted out and furnished with recycled materials, used objects. “Actually, no,” Mr. Szaky replies. “What is needed more than anything is buying less. "

TerraCycle’s Loop platform hits milestone reach across 48 states

TerraCycle’s reuse platform Loop is now available online in every ZIP code in the 48 contiguous states, a major milestone after the program first launched in 2019. Kroger and Loblaw are partners of the platform, among other retailers, and a TerraCylce representative recently told Store Brands that it would be developing a reusable container for select private brands to buy at those physical stores in 2021. The Loop program began in the Northeastern United States and Paris, France, and entered the United Kingdom in July, working with more than 80 brands and 400 products globally. More than 100,000 people have signed up for the service. Loop enables shoppers to buy brands in a durable, reusable package. It’s a circular system, designed to end single-use packaging. For example, a shopper can buy a silver tin for Haagen-Dazs ice cream that was developed with Loop from a retailer like Kroger or Walgreens, which gets shipped by Loop (or picked up at the store) and then shopper returns the container when done through Loop’s shipping system to get it refilled. The company likens it to the days of the milkman.

Sustainability Takes Center Stage

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.