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• When it comes to packaging, aesthetics matter.
• With Loop, companies treat packaging like an asset.
• Brands are using Loop to learn about customer habits.

  When he founded TerraCycle in 2001, Tom Szaky was in the business of keeping tough-to-recycle products out of landfills. In 2019, he expanded that mandate with a service called Loop, which focuses on reusing packaging instead of merely recycling it. In partnership with several well-known brands, Loop offers household goods from olive oil to laundry detergent in reusable containers that are either delivered direct to consumers or available through two major retail outlets, then collects, cleans and refills them—much like a modern-day milkman. When Szaky sought to better understand why people were purchasing items through Loop, he was surprised by the results. Survey data revealed that two-thirds of Loop customers were mainly drawn to the program because of its packaging design; only one-third prioritized the sustainability aspect. Since Loop is all about saving the planet by eliminating waste, Szaky had expected the inverse. “A better experience with packaging is the primary driver,” Szaky told Adweek. “The secondary driver is sustainability.” Earlier this week, during a presentation at the National Retail Federation’s annual conference in New York, Szaky stressed the importance of aesthetics in consumer decision-making. While people often buy shampoo twice as often as they buy conditioner, Loop shoppers purchase an equal amount of Pantene shampoo and conditioner, according to Szaky. Why? Although he didn’t disclose exact figures, internal polling revealed that people thought the bottles—which come in a matching gold-and-white color scheme, and feature images of sea life—looked good together. But it’s not just about beauty. Szaky argued that tubs of Häagen-Dazs ice cream sold on Loop are simply better than the typical cardboard cartons found at grocery stores because they’re dual-layered, providing thermal insulation so that consumers’ hands remain warm while the ice cream stays frozen. The inside of the container is also concave, making the ice cream easier to scoop out. Szaky added that even the product itself can benefit from better packaging. The team at Coca-Cola apparently told him Coke tastes best in a glass bottle, then aluminum, then plastic. One key change that allows for better packaging design through the Loop system, as opposed to a convenience store or vending machine, is the transfer of package ownership from consumer to manufacturer, Szaky said. When a company is responsible for a durable container meant for multiple uses, it’s treated like an asset as opposed to the cost of goods sold. Since Loop requires a security deposit with each purchase, companies are given extra leeway to invest even more money into their packaging design, generating better functions and features. “Can you imagine what you could do with a package budget of $30 per unit?” he said. He noted that customers have shown little to no sensitivity to the deposit price, either. A can of Clorox disinfecting wipes, for instance, costs $5.49 to purchase, plus an additional $10 deposit. Despite this, Szaky said Clorox wipes are one of the top five best selling products on the site. Last week, another Clorox brand, Glad, began selling sandwich bags on Loop for $4.99 with a $10 deposit. Once ordered, consumers receive 100 plastic bags in a square metal tin, along with a yellow zippered pouch to put the used bags in for recycling later. According to Nick Higgins, Glad’s marketing director, the package took six weeks to design, and consumer feedback throughout the process was positive. “If you think about our traditional manufacturing system, it’s been engineered to deliver products in a way that people use them and then it’s their responsibility for how they ultimately want to dispose of them,” Higgins said. While it’s still too early to tell how Glad’s metal tin is performing on Loop, Higgins said the brand is excited to gain insights into how people might reuse its products. “As a brand, we want to continue to make progress in this area,” he said. “Using something like Loop as a learning partner to understand consumer habits and practices, and the business models associated with that, is what makes this really attractive to us.” Loop, which debuted in May 2019 in select cities in the U.S. and France, is scheduled to roll out in the U.K., Canada, Germany and Japan later this year. Presently, the platform works with retailers Walgreens and Kroger, and about 100 major CPG conglomerates, including Pepsi, Nestle, Unilever and Procter & Gamble. While Loop has yet to make an official announcement, Szaky said the company will soon reveal new partnerships with a fast-food company and high-end cosmetics brand.         Szaky added that since Loop began, it has, on average, added a new brand every two days and a new retailer every three weeks. While the program remains in test mode, he’s optimistic that Loop will continue to grow. “Disposability is our competition,” he said. “It’s an easy enemy to hate, thank God.”

The next time you reach into your freezer for a pint of Haagen Dazs Amaretto Black Cherry Almond ice cream, or perhaps grab a bottle of Pantene Moisture Renewal shampoo, you might be putting your hands on something unusual in the world of consumer goods — a reusable container.   More than 150 companies have signed up to work with Loop, an innovative alternative to Amazon where the products ± as well as the box they arrive in — are all shipped back to where they came from.   We are talking reusable here, not recyclable. The cold container for ice cream, as well as the shampoo bottle, are made of durable products and designed to be returned, cleaned and reused dozens, if not hundreds of times.   Loop is the brainchild of entrepreneur Tom Szaky, who created TerraCycle as a Princeton drop out to recycle the food waste from the university dining halls into fertilizer — using worms. His company is now worth $20 million, and he’s branching out.   Customers order their products online from a list of name brand items, all delivered via UPS in a sturdy tote. The empties go back into the tote, which UPS takes back to Loop’s New Jersey processing center. They are cleaned and refilled by the suppliers to be shipped out by Loop again. Even though consumers are buying just the contents, the products cost about the same as those sold in single-use containers — in part to offset the cost of the development and manufacturing of the more durable containers, as well as cleaning and refilling.   Although the selection is limited compared to Amazon, there is still an array of well-known staples to fill up the pantry: Hellman’s mayo; Tropicana orange juice; Colgate toothpaste; Hidden Valley ranch dressing; Tide detergent, among many others — courtesy of some of the world’s largest consumer goods companies, including Procter & Gamble, Unilever, Nestlé, PepsiCo, Danone, Mars Petcare and Mondelēz International.   Currently, Loop has about 25,000 customers in its test markets in New Jersey, New York, Pennsylvania, Delaware, Vermont, Connecticut, Rhode Island, Massachusetts, Maryland and Washington, D.C., in the United States, and in Paris, France. But they are in the process of expanding across the United States and internationally, including the United Kingdom, Canada, Germany and Japan. Watch how Szaky says he plans to grow his business into a juggernaut. Loop just recently announced it was partnering with Walgreens and Kroger to start offering its products in stores. So you can perhaps pick up that pint of that Amaretto Black Cherry Almond ice cream and return the container the very next day. Some video imagery courtesy of UPS and Loop.

The statistics are sobering. Virtually every piece of plastic ever produced still exists and there is more microplastic in the ocean than there are stars in the Milky Way, according to Earth Day Network, Washington, D.C. It is thus little wonder that 100,000 marine creatures die every year from plastic entanglement—and those are the ones that are found, according to Ocean Crusaders, an organization based in Australia that specializes in waterway cleaning. These same creatures consume the plastic, which we humans then consume from our dinner plates, meaning there’s plastic in us too. Containers and packaging constitute 30% of all waste, per the U.S. Environmental Protection Agency, and the large amount that isn’t recycled is dumped into landfills or is incinerated, leaving behind noxious air pollution. It’s a compounded problem that continues to mount, with forecasts predicting that the amount of plastic will increase fourfold by 2050. But moves are afoot to change this dire state of affairs. Retailers and consumer packaged goods companies are looking for new ways to provide products that eliminate or vastly reduce packaging, such as proliferating bulk food sections and experimenting with processes that use less plastic. Scientists are also devising ways to make CPG packaging compostable or 100% recyclable while circular systems are being developed in which consumers refill containers for commonly used household items. But to make change happen on a big scale, everyone needs to be on board. Urged on by consumers that are increasingly decrying excessive packaging that is perceived as being wasteful at best, and reckless at worst, many American companies, which are also not happy with the present state of affairs, are looking for solutions to what is becoming a very grave problem of crisis proportions. The solutions are complex and multifold. “When you think about the myriad products, and the ways consumers use them, we need lots of solutions,” says Meghan Stasz, VP of packaging and sustainability for the Grocery Manufacturers Association (GMA), Arlington, Va. Reducing packaging is important not only to minimize the effect it’s having on the world but also to improve public perception. The people who care most about packaging waste are millennials and Gen Zers, who are increasingly the customers of tomorrow. “Packaging has become a hot topic of late because shoppers are becoming more concerned about their impact on the environment, especially younger shoppers,” says Tory Gundelach, VP of retail insights for New York-based consulting agency Kantar. “And more and more, they’re happy to put their dollars behind the companies that align with them.” According to research from Kantar, nearly two-thirds of millennials and Gen Z consumers say they prefer “brands that have a point of view and stand for something.”

The Circular System

The solution to plastic and packaging reduction that’s perhaps gaining the most traction is the system of refillable, reusable containers. Loop—which offers products in reusable glass and steel containers that are delivered to and picked up directly from consumers’ homes—launched at the World Economic Forum in Davos, Switzerland, a year ago. It has since debuted pilot programs in New York and Paris. Developed by Trenton, N.J.-based TerraCycle, Loop has the backing of CPG giants such as Procter & Gamble, Unilever, Pepsi, Coca-Cola, Danone and Nestle, as well as smaller companies such as Nature’s Path. It offers about 100 brands and is constantly adding more, including private label items. “We treat small companies the same as large ones,” says Benjamin Weir, business development manager of North America for TerraCycle. “We help them expand and show them that packaging is a great way to differentiate.” Photograph courtesy of TerraCycle The more brands involved, the greater consumer adoption of Loop is likely to be, he says, because shoppers will be able to meet all their needs at one store—or through one e-commerce site—“and we can capture as much of their basket as possible.” Here’s how Loop works: Customers purchase products through its website, and when the products are depleted, they leave the empty packages on their doorstep for free collection by UPS, a Loop/TerraCycle partner, which returns them to Loop for sanitization and reuse. Each container requires a deposit, which is refunded upon its return or at the end of a subscription. Items that can’t be reused, such as diapers, can be collected for recycling. Retailers are joining the Loop throng too. The Kroger Co. and Walgreens are credited as founding retailers in the U.S. “Our commitment to innovative solutions on our path to Zero Hunger Zero Waste aligns perfectly with Loop’s mission to create a convenient circular packaging platform for consumers,” Jessica Adelman, president of The Kroger Co.’s Zero Hunger Zero Waste Foundation, has been quoted as saying. Being involved with Loop is almost the cost of doing business today, says Virginie Helias, chief sustainability officer of Cincinnati-based Procter & Gamble. “Nine of 10 consumers now say they have a more positive image of a company when it supports a social or environmental cause, and half say they make purchase decisions based on a shared belief with the brand,” she says. Procter & Gamble is committed to making huge changes, and it fully backs the Loop system. “The idea of getting rid of disposable packaging and replacing them with beautiful, durable, refillable packaging is a huge idea and we are very committed to make it work,” Helias says. All of the companies involved with Loop are faced with a new and exciting challenge: creating new packaging. This packaging is much more durable, plastic-free and is good-looking enough to sit on any home’s counter.

In—and Out of—the Loop

Companies need to step up and take responsibility, says Darby Hoover, senior resource specialist for the Natural Resources Defense Council in New York: “If you introduce a package, your responsibility has not ended, and it should not be the responsibility of the consumer. [Companies] need to say they’re responsible for packages through the end of their life. That’s what’s powerful about a program like Loop.” Gundelach of Kantar supports a program such as Loop because it takes that responsibility away from the consumer. “It’s more likely to resonate than asking the shopper to do it themselves,” she says. And while this isn’t a perfect solution—she points to the emissions from the pickup vehicles, for example—Gundelach believes it’s a step in the right direction. “To do this on any meaningful scale is extremely complicated and takes the partnership of many different parties, but I think this is a longer-term solution,” she says, adding that companies in the CPG industry will have to reach some agreements that they will use the same sort of process. The losers in the Loop system could be the retailers, who may see sales declines for products that are now delivered by the modern-day “milkman.” But Stasz of GMA doesn’t anticipate that, noting that she “can’t imagine it would have more of an effect than e-commerce.” While the e-commerce model is phase one for Loop, eventually consumers will be able to shop for Loop in the stores of the company’s retail partners. This should start in 2020, Weir says, and is phase two. This program will be implemented through retail partners such as Kroger. It will go live in Kroger and Walgreens at 25 to 50 stores in a condensed geographic area. At these stores, consumers drop their used packaging in a Loop bin and pick up a new product in reusable packaging from the shelf. This would be a pay-as-you-go model vs. the e-commerce program, which offers consumers the option of subscription on demand. Consumers “will be able to shop and act as normal and have the option for durable, reusable packaging,” Weir says. He could well be right. According to GMA, nearly two-thirds (65%) of Americans say they’d be very likely to buy goods in refillable packages.

The Product Line

CPG companies are making their own mark on plastic reduction. Two years ago, Pepsi launched Drinkfinity, a reusable bottle/recyclable pod system for flavored water. Meanwhile, Coca-Cola is making a bottle from recycled marine plastics; Colgate unveiled a new recyclable toothpaste tube; Nestle committed to 100% reusable and recyclable packaging by 2025; and Unilever has vowed a 50% plastic reduction by the same year. London-based Unilever is also going out on many different limbs. In the Philippines, it launched the Hair Refillery, a shopping mall pilot that lets consumers refill bottles from brands such as Dove and Tresemme. In the U.K., Cif cleaning spray is now sold with refill cartridges that consumers put in existing bottles and fill with water. The trigger heads on the original spray bottles are designed to be used thousands of times. And in Chile, Unilever is piloting an app-powered, intelligent dispensing system that uses electric tricycles to deliver laundry detergent to homes. Companies are either reducing the plastic (using less per product), finding a plastic that can be 100% recycled or exploring alternatives, which include bioplastics produced with bacteria, seaweed, corn, mushroom rot, wood pulp and even shrimp shells. However, CPG companies are still facing some backlash because they’re still producing single-use products. “We’re continuing to see a major commitment by the CPG companies to improve their packaging,” says Stasz of GMA. “That means different things to different companies. To packaging design, to new kinds of materials, to delivering products to consumers in new ways and in new formats. From research we did this year, all the largest 25 CPG companies in the world have made public commitments that 100% of their packaging be recyclable or compostable by 2030 and some as soon as by 2025.” Recycling in itself has become a problem. In 2018, China stopped accepting U.S. imports of recyclable materials, and across the U.S., recycling is becoming more expensive. So much so that many towns and municipalities to eliminate curbside recycling programs. This is all the more important because recycling is becoming a big issue: Less than 14% of plastic packaging—the fastest-growing form of packaging—is recycled, according to the Natural Resources Defense Council. Eighty-seven percent of Americans told GMA they are very concerned about single-use plastics and packaging waste. It’s vital that more emphasis be placed on recycling, says Melissa Craig, senior manager of packaging sustainability for Unilever North America, Englewood Cliffs, N.J. Unilever’s new packaging is designed with PCR (post-consumer resin), but in order to have sufficient PCR, “we need everyone contributing to the circular economy, which means ensuring everyone is recycling. The more we can get consumers to recycle, the greater the supply of PCR for packaging so we can use less virgin plastic.”

At the Store Level

Retailers also play a big part in reducing the amount of plastic packaging waste by taking a stance. Monrovia, Calif.-based Trader Joe’s announced it had removed nearly 4 million pounds of plastic from its stores last year. This included the introduction of biodegradable bags for flowers and greetings cards, removing excess packaging and switching to recyclable trays for fresh meat. Walmart has committed to incorporate at least 20% PCR content in the packaging of its private label line by 2025. This, the retailer says, will also be 100% recyclable, reusable or industrially compostable. The Bentonville, Ark.-based chain is also encouraging suppliers to eschew all PVC (polyvinyl chloride) by 2020. Minneapolis-based Target will eliminate expanded polystyrene foam packaging from private label products by 2022, and Issaquah, Wash.-based Costco ditched PVC clamshell packaging, which not only can’t be recycled but also releases toxic chemicals into the environment as it degrades. So it’s no surprise that Whole Foods Market is making a difference too. Its changes include switching to smaller bags for produce; replacing hard-plastic rotisserie chicken containers with bags that use about 70% less plastic; eliminating polystyrene/Styrofoam meat trays; and using salad boxes made of 100% commercially compostable material in its prepared foods department.

Away From Home

More is happening abroad. South Africa’s Pick n Pay grocery chain is experimenting with “nude zones,” where consumers fill their own containers with produce laser-etched with codes. Metro in Quebec started allowing customers last spring to fill their own reusable containers with meat, seafood, pastries and ready-to-eat meals, and Ekoplaza in Amsterdam now carries more than 700 products in plastic-free packaging, which looks like plastic but is actually made from all-natural, biodegradable materials. In the U.K., Waitrose has introduced packaging-free aisles; Tesco has asked its suppliers to look into packaging solutions and vows to have only recyclable or compostable packaging by 2025; Iceland is getting rid of plastic packaging for its entire private label line and has also committed, over the next five years, to using recyclable paper versions of food trays to enable it to become plastic-free by 2023; Sainsbury’s is halving its packaging by 2020; and the Co-op says a whopping 80% of its products will be “easy to recycle” by 2020. In Europe, there have been many moves to reduce plastic. Americans are simply less concerned than Europeans, says Neil Saunders, managing director and retail analyst for GlobalData Retail in New York. “Americans have more of an ambivalent attitude toward environmental issues and this results in less pressure on the industry to institute change,” he said. “Regulation is likely more lax in the U.S. than in some parts of Europe, where recycling is now mandatory for householders.”

Bulk Foods Bulk Up

What can make an enormous difference in the amount of packaging waste a store produces is having a bulk department. At Phoenix-based Sprouts Farmers Market, bulk food sections are large and even larger in new and remodeled stores. In some locations, bulk accounts for a massive 30% of a store’s selections. However, as anyone who’s ever used them can attest, refilling containers—particularly liquids—can be time-consuming and messy. Neil Stern, senior partner with McMillanDoolittle, Chicago, thinks bulk sections have their place in stores “where the customer is sufficiently committed, such as stores offering a broad selection of natural/organic products.” However, he says, conventional stores may need to offer more convenience and experience, such as “some sort of concierge service,” where customers would drop off their containers to be refilled and pick them up at the end of their shopping trip. Around the world, packaging-free stores are opening up, aimed at reducing the swathes of plastic and heightening consumers’ awareness of this problem. The trouble is, are these stores catching on yet, or are they just attracting the ultra-eco-conscious? In New York’s Brooklyn, there’s Precycle and in Vancouver, British Columbia, there’s Nada, where customers can use their own containers or buy them. There’s also The Refill Shoppe in Ventura, Calif.; the Filling Station in New York; and Zero Market in Denver, which sells personal care and home products. Lyndsey Manderson, co-founder of Zero Market, is planning to open a second, larger location to sell food.

 The Supply Chain Situation

The picture painted of plastic packaging is not a complimentary one, but plastic does have its place and is used for a reason. It helps preserve food and protect food during its journey to store shelves. The supply chain is responsible for a lot of packaging, says Gundelach of Kantar. “The brands aren’t adding packaging just for fun, but more times than not the packaging is designed for the end shopper [and] how is that product making it through the supply chain.” However, because of geography and distance, U.S. supply chains, especially for perishable products, can be more complex and demanding than those in Europe. “This pushes a lot of companies into using plastic to protect products,” says Saunders of Global Data. “Plastic is also a relatively cheap and lightweight solution, which helps keep distribution costs down, something that’s vital in a low-margin sector where the consumer demands low prices and value for money,” he says. “In Europe, this remains an issue but the more compressed supply chain makes it easier for many operators to look to alternatives.” Susan Selke, director and professor for the School of Packaging at Michigan State University in East Lansing, says there could be problems if packaging is reduced because it could lead to more product waste if the interior goods are damaged. “There are generally more environmental costs associated with that product waste than benefits associated with less packaging,” she says.

If you carry your own shopping bags and refill your water bottles, Loop might be your next step in the movement to cut back consumer waste. The loopstore.com service, launched by the Trenton-based recycling company TerraCycle, delivers Cascade detergent, Hidden Valley dressing, Häagen-Dazs ice cream and other branded products to customers in reusable glass and steel containers. Once they’re empty, Loop retrieves the containers in a special tote. Customers pay a refundable deposit on the products; shipping (including return shipping) runs from $10–$20 per order. Most orders are delivered within 48 hours. “We want to make reusability attractive and simple,” says Anthony Rossi, vice president of global business development for Loop. TerraCycle founder/CEO Tom Szaky is founder and chief executive of Loop. Loop launched its pilot program in May, serving 5,000 households in New Jersey, New York, Pennsylvania, Maryland and Washington, D.C. [RELATED: The Push to Nurture New Businesses in Trenton] TerraCycle announced Loop at the World Economic Forum in Davos in January, partnering with Kroger and Walgreens for the mid-Atlantic region, with deliveries through UPS. More than 100 brands have committed, though not all are part of the service yet. Selling through Loop means rethinking packaging and labeling. Loop’s plastic-free vision is on trend. Numerous towns around New Jersey have banned plastic bags, though a statewide ban has stalled in the Senate. Jeff Tittel, director of the New Jersey chapter of the Sierra Club, says changing attitudes about recycling is crucial to the fight against climate change. He applauds companies like TerraCycle for leading the way. Says Rossi: “We are a mission-based company, and our mission is to eliminate waste.”

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.”

The home cleaning market has been saddled with lackluster growth for years. New players, with new ideas, hope to shake up this $3.4 billion category. The only thing worse than cleaning the home is purchasing cleaning products, a process that wastes time and resources, according to detractors. No wonder that the newest ideas in home cleaning have less to do with cleaning spills than cleaning up the buying process. While few people admit to enjoy cleaning their homes, there’s no denying that the home cleaning category, when taken together, is a giant business. According to IRI, household cleaner sales in grocery, drug, mass market, military and select club and dollar retailers, rose 1.2% to more than $3.46 billion for the 52 weeks ended Sept. 8, 2019. Of course, some segments performed better than others. For example, all-purpose cleaner/disinfectant sales rose 4.7% to nearly $1.3 billion, but national brand managers should temper their enthusiasm, considering that private label sales surged more than 35% during the period. Oven and appliance cleaners and degreasers also outpaced overall industry growth, rising 8.3% to more than $203 million. The category has been a boon for Procter & Gamble, as its sales jumped more than 58% during the period, according to IRI. Meanwhile, sales were flat in multimillion-dollar categories like toilet bowl cleaners/deodorizers. But with sales limping along with a growth rate lower than the population growth, some entrepreneurs insist that the category is ripe for dramatic change through simplification. According to the founders of Truman’s, a new line of cleaning products, the cleaning process has become extremely complicated with a variety of formulas, SKUs, colors and scents. Their answer is four spray cleaners that work effectively on a variety of surfaces. There’s Everything And The Kitchen Sink kitchen cleaner, Floors Truly floor cleaner, More Shower To You bathroom cleaner and The Glass is Always Cleaner glass cleaner. What’s more, all four formulas come in concentrated cartridges. Consumers fill and refill spray bottles using water and cleaner formulas that are about the size of a Lifesavers package. It all adds up to a big savings in packaging and shipping costs—issues that have moved front and center with consumers. For Truman’s co-founders, reinventing an existing business model is nothing new. Jon Bostock and Alex Reed co-founded Truman’s after shaking up the staid industrial fan business. Bostock is the former president and COO of Big Ass Fans (BAF), which designs and sells large fans and lighting systems for industrial, commercial and farm use. Reed was BAF’s global marketing director. BAF was sold at the end of 2017, but Bostock and Reed wanted to do something entrepreneurial together. “We believe in the direct-to-consumer model and innovative products, and we felt that cleaning had been left behind,” Reed told Happi. “The supply chain is broken; products are primarily water, so companies are basically shipping and warehousing a small amount of active.” Problems continued once palettes are unloaded and products are placed on retail store shelves, according to Reed. “With so many unnecessary cleaners and fragrances, it is all very confusing,” he insisted. “No brand was born in the digital age of listening to the consumer. The category needed to be reimagined throughout the value chain.” Truman’s is a startup, but in its short existence company executives realized that consumers have an appetite for easy-to-use products that are “non-toxic.” People like to engage with us via social media and our website (www.Trumans.com),” insists Reed. “Household cleaning is a sleepy category and it doesn’t have to be.” In fact, Truman’s woke up Henkel to the possibility of a fun, DTC model. Two months ago, the multinational took a stake in the Louisville, KY-based startup. With the minority investment in Truman’s, Henkel is taking over the role as lead investor in a seed round totaling $5 million. “Convenience and sustainability today are top-of-mind for an increasing number of today’s consumers and we continuously advance our portfolio while addressing these topics. Specifically, when it comes to packaging, Henkel pursues ambitious targets for sustainable packaging to promote a circular economy and reduce plastic waste,” said Robert Günther, corporate director, Henkel Ventures, in statement. “We look forward to gaining insights from the Truman’s team, as well as supporting them with our expertise and resources.” The feeling is definitely mutual, said Reed, who noted that Henkel has broad manufacturing capabilities and international distribution. “We wanted to do more than take a paycheck,” he recalled. “Henkel has expertise in international trade and compliance, and has new technology, too. Now we have access to it.” Will Henkel ultimately offer the founders a buyout? Not necessarily. “Henkel’s venture arm made the investment and they want to see the value of the investment increase; this isn’t an acquisition nor is it a path to acquisition,” explained Reed. “We aren’t seeking new funds at this time, but it shows that the multinationals are interested (in a new model).” New from P&G Multinationals want new, whether its home grown or brought inside. Procter & Gamble expanded the Mr. Clean franchise earlier this year with two new formulas. Clean Freak is said to have three times the cleaning power of conventional all-purpose cleaners, and acts on contact to remove 100% of dirt, grease and grime leaving nothing behind but a perfect shine, according to Mary Johnson, a spokesperson for Procter & Gamble. The brand also launched Mr. Clean Magic Eraser Sheets that have Magic Eraser’s cleaning power but are thin and flexible. “Recently, we’ve focused on designing more plant-based products, to meet consumer needs and help increase our use of renewable materials,” explained Johnson. “We’ve introduced a plant-based portfolio in Fabric Care, with Tide purclean, Downy Nature Blends, Dreft purtouch and Gain Botanicals, and we’ve launched Home Made Simple, a plant-based home care & cleaning line designed to meet EPA Safer Choice and USDA Standards.” The Home Made Simple line includes detergent, fabric softener, multipurpose cleaner, hand soap and dish soap. According to P&G research, about 8% of consumers are committed to a lifestyle that includes natural products, but up to 76% of consumers are interested in trying such products. About 24% of consumers aren’t interested in naturals. Cleaner products that help consumers clean their homes has other benefits, too. “Consumers across the country are increasingly tapping into the mental clarity and peace of mind that comes from not only a clean home, but from the act of cleaning itself,” observed Johnson. “Most consumers are aware of the physical benefits of a good clean, but more and more consumers are turning to cleaning as a way to clear their minds, take a pause from the hectic pace of daily life and use that as a moment of ‘me time.’” Johnson pointed to the new phenomenon of “clean with me” videos has caught fire on YouTube. These videos, which literally take the viewer around a stranger’s home as they clean it, have been viewed more than 200 million times, with more than 5,000 new video uploads in the past few months alone. She told Happi that for P&G brands, sustainability comes to life in everyday moments, like washing laundry and doing dishes. “For example, as more and more people strive to adopt resource-efficient habits, it becomes increasingly important to use products designed to perform in the toughest conditions. If you’re washing clothes in shorter, colder cycles, you need a detergent like Tide, that’s been designed with a specific enzyme to clean in the quickest, coldest wash. If you want to use less water to get clean dishes, you need a product that doesn’t require a pre-rinse, like Cascade, which lets you skip the rinse and save up to 15 gallons of water per load. If you’re using a lower performing product and something doesn’t get clean, chances are you’ll compensate for that by washing it again—this time with more water or more product, driving your footprint up. So that’s why we design products like Tide and Cascade specifically to help save water, time and energy, without sacrificing the clean you need.” At the same time, P&G is aware that the way its products are made matters too. So, the company makes its brands at facilities that use 100% renewable wind power electricity and send zero manufacturing waste to landfill. “We’ve helped the industry tackle important challenges like the creation of a recycling stream for colored PET, and we’re working to find alternatives to plastics, like Cascade cartons made from 100% recycled wood pulp,” said Johnson. Finally, P&G is being transparent about what’s in its products and why. Johnson noted that P&G was one of the first firms to participate in the online SmartLabel system, where you can find information about all of P&G’s fabric and home care products listed. “Today, we working to incorporate more of this information onto our packaging to further our transparency efforts and enable you to make informed choices,” she said. SC Johnson has been the leader in ingredient transparency for years. In September, SC Johnson released its 2018/19 Sustainability Report. During the past year, the company has removed 1.7 million kilograms of plastic from primary packaging. Furthermore, 94% of the company’s plastic packaging is now recyclable, reusable or compostable. Recently, SC Johnson let its membership in the Plastics Industry Association expire. In a statement, SCJ said it strongly believes governments should be able to democratically ban plastics if that’s what its citizens want. “Leaving the Plastics Industry Association was a difficult situation because we respect the work they’re doing on recycling and plastic innovation,” a company spokesperson told Happi. “However, its connection to the American Progressive Bag Alliance became confusing. SC Johnson is committed to packaging innovation and post-consumer recycled content and you’ll see more from us in the future.” Are You in the Loop? Whether startup or multinational, nearly every FMCG company is determined to reduce its packaging footprint. Last year, more than 250 companies, including PepsiCo and H&M, pledged to cut back on their use of plastic, including making all of their packaging recyclable, reusable or compostable by 2025. Packaging is the hot-button issue of the moment and TerraCycle, the creator of Loop, is pushing all the right buttons. Launched in May, Loop is billed as a global circular shopping platform that’s designed to eliminate the idea of waste by transforming the products and packaging of everyday items from single-use to durable, multi-use, feature-packed designs, according to TerraCycle, which developed Loop more than a year ago, introduced the concept at Davos and has expanded from three US states to 11 in six months. Loop is also available in Paris and, most recently, London. “The growth and acceptance has been wonderful,” said Anthony Rossi, VP-global business development, Loop. “We are adding nearly a brand a day.” At press time, Loop offered 150 products and Rossi expected that number to climb to 350 by year-end. So, who’s in the Loop? Well-known companies such as Clorox, P&G, Seventh Generation and Unilever offer an array of cleaners, detergents and personal care products in reusable, returnable, often stainless-steel packaging. Loop delivers products to its members’ doors and picks up the packaging when it’s depleted. Products are reordered online and after seven or eight uses, The Loop process turns positive for the environment, according to TerraCycle. For now, consumers can order products at Loopstore.com, and Kroger and Walgreens are the official retail partners. Loop is just getting started, but there have already been a lot of lessons learned, according to Rossi. “Faster moving products, such as snacks and beverage, create a lot of engagement with consumers,” he told Happi. “On the home care side, autodish pods and all-purpose cleaners have been performing very well.” Getting in the Loop isn’t easy. Suppliers are making heavy investment in packaging and filling lines, but as Rossi notes, “they wouldn’t do it if the reaction wasn’t positive and there wasn’t demand for our products.” Procter & Gamble was one of the first companies to join the Loop program. P&G designed packaging that is both reusable and recyclable for Febreze One, an ultra-durable package for Cascade and a stainless-steel refillable package for Tide Purclean. All three of these solutions are designed for consumer convenience and reuse, and to enable ongoing learning within the new platform, according to Johnson. “While it’s still very early in the test markets, we have seen that consumer appeal increases when the product offering broadens, so we are encouraging more brands to join Loop as we all learn together in this important space,” she said. Coming Next Month A different kind of packaging issue was front and center earlier this year. The household cleaning industry won a key battle in August when the Supreme Court of the State of New York ruled in favor of a lawsuit filed by the Household & Commercial Product Association (HCPA) and the American Cleaning Institute (ACI) against the New York State Department of Environmental Conservation (NYSDEC) attempts to force cleaning product manufacturers to disclose chemical ingredients and identify any ingredients that appear on authoritative lists of chemicals of concern on their websites. The Court found that the NYSDEC Disclosure Program is “null and void” and remitted the matter back to NYSDEC with the directive to comply with State Administrative Procedure Act. “It was a huge decision,” recalled Steve Caldeira, president and CEO, HCPA. “Any time you litigate against a state it is a big undertaking.” According to Caldeira, the ruling underscores HCPA’s successful strategy to collaborate with other stakeholders on key issues. “The HCPA has a good reputation of being collaborative and inclusive. Engagement and collaboration is our mantra and we will continue to do so.” At the same time, however, Caldeira observed that the association is willing to go it alone when it involves critical issues. Two years ago, when California passed the Cleaning Product Right to Know Act, HCPA engaged in intense negotiations with NGOs and other stakeholders, when many other associations, were neutral on the issue. HCPA also played a leading role in the reauthorization of the Pesticide Registration Improvement Act (PRIA), which was signed by President Donald J. Trump this Spring and will remain in effect through 2023. Also this year, HCPA earned the 2019 Safer Choice Partner of the Year from the US Environmental Protection Agency. “To win this award is humbling and we are very grateful. It speaks to the vision and mission of our board and the engagement of our membership,” said Caldeira. “We have a lot of big wins, because we have a talented staff, an engaged board and are focused on the right issues.” Of course, more issues are on the horizon. For example, the California legislature adjourned before acting on the Circular Economy and Pollution Reduction Act, which would require all single-use packaging sold in California on or after Jan. 1, 2030 to be recyclable or compostable. HCPA member companies are part of the Alliance To End Plastic Waste, a group made up of some the leading suppliers and marketers in the home came industry. These companies have pledged $1.5 billion over the next five years to solve some of the issues surrounding plastic. “Plastic is an issue that consumers care about and one that we must address,” said Caldeira. “Whatever we can do as companies and trade associations to become smarter and innovate around plastic is important.” During XPand 2019, the HCPA Annual Meeting, several important issues will be in focus. The event takes place in Fort Lauderdale, FL, Dec. 8-11, 2019. The overarching theme of the Annual Meeting is innovation and, for the first time, the HCPA will honor members with its Innovation Awards, which will be granted in five categories—ingredients, sustainability, consumer communication, technology and game-changing innovation. Annual Meeting programming will center on operational excellence, consumer education and sustainability stewardship. There will be sessions on consumer habits, ecommerce, retailer updates, supply chain disruption and diversity. The keynote speaker is Nancy Giordano, a strategic futurist and corporate strategist who has guided transformation projects with The Coca Cola Company, Brinker International, Sprint, Nestle, Acumen, Energizer, Mercedes Benz and many other Fortune 500 companies. On Dec. 11, HCPA will host a Preservation Summit that will feature presentations by Beth Ann Browne of DuPont, Tony Rook and Doug Mazeffa of Sherwin Williams, Petra Kern and Jeff Van Komen of Procter & Gamble, and other key stakeholders to further the discussion about the benefits of product preservation. According to HCPA, the goal of the Summit is to help inform legislators, retailers, decision makers and NGOs about the benefits of product preservation by developing scientific and consumer-friendly data and educational content that can be used to communicate effectively with a range of target audiences. In 2020, HCPA staff will continue to collaborate with other groups to find a solution at the national level regarding ingredient communication. “We will continue to the use the California model for a national solution. Patchwork regulations can be onerous and costly,” observed Caldeira. “We need common sense solutions. We will continue to work with the Grocery Manufacturers Association, ACI and others to find a solution. There are a lot of great things going on, but we have to stay focused, collaborate with NGOs and like-minded trade groups.” The strategy is paying off, as HCPA membership and revenue continue to grow slowly and steadily. During his three years at the helm of the association, HCPA has been rebranded, developed economic data to better tell its story on Capitol Hill and at the state level, updated its strategic plan and and expanded its board and officers. “There is growing interest among companies to have a voice as we expand,” Caldeira concluded. “If you stay stagnant, you get left behind.”

One company is working with giants like Tide and Häagen-Dazs to re-fill, reuse and deliver household staples right to your door.   Household products, toiletries, food, and more currently utilize single-use plastic containers and wrappers that end up in the trash. One company is changing that with reusable, refillable packaging.   Tom Szaky is the CEO and Founder of TerraCycle, based in New Jersey, and he says his mission is to make recycling a convenient and streamlined part of everyday life. For nearly 20 years, Szaky has been working with some of the biggest companies in the country to create recycling-friendly packaging for their products, and now, he has a new division called Loop, which “feels like disposability as much as absolutely possible,” explains Szaky.   While the service, in some ways, is a mimicry of people’s existing bad habits, Szaky says that minimal effort on the part of consumers is key in making a big change. “The more we ask a consumer to do, the less likely they are going to take part,” he adds.   “A few years ago we started thinking about, ‘how do we solve waste at the root cause?’” - Tom Szaky, TerraCycle   Loop will refill everything from your laundry detergent, to your favorite ice cream in reusable packages that are easy to ship out. As of now, they’ve partnered with Kroger and Walgreens, and the service will soon be coming to Detroit locations.   “A few years ago we started thinking about, ‘how do we solve waste at the root cause?’ and we believe the root cause of waste is using something once and throwing it out. From that question came a new division called Loop which is all about shifting packaging from single use and disposable to multi-use and reusable, without feeling like a reusable system,” says Szaky.

Click on the player to hear TerraCycle’s Tom Szaky talk about the challenges of single-use packaging.

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.”

Ask business executives, environmental activists and academics what it means for a business to be sustainable, and you will get an array of answers. Also, one company’s “sustainable” move could hurt the environment in other ways. Add to that the fact that making any change to an existing business practice is expensive, and it is easy to see the conundrum facing businesses around the world in light of the climate crisis.

There is no single definition of ‘sustainability’

The head of the United Nations is setting a daunting goal at the U.N. climate summit in New York this week: completely transform the world’s economies to be more sustainable and find solutions to climate change. “The climate crisis is caused by us, and the solutions must come from us,” U.N. Secretary-General António Guterres said Monday at the U.N. Climate Action Summit in New York. “There is a cost to everything ,but the biggest cost is doing nothing.” But what does “sustainable” even mean? “There is a crippling vagueness about what sustainability means,” said Geoffrey Jones, a business history professor at Harvard University and the author of “Profits and Sustainability: A History of Green Entrepreneurship.” United Nations Secretary General Antonio Guterres speaks during the opening of the 2019 United Nations Climate Action Summit at U.N. headquarters in New York City, New York, U.S., September 23, 2019. Photo by Lucas Jackson/Reuters While carbon emissions are receiving much of the focus because of climate change, deforestation, water shortages and soil erosion are also serious problems that should not be ignored, Jones said. Many companies are buying their electricity from renewable energy, which saves them money in addition to emitting fewer carbon emissions, for example. But some environmentalists have raised concerns that rare materials used in solar panels are mined unsustainably, the panels themselves are not recyclable and solar energy companies do not effectively track their carbon emissions. The lack of a firm definition means there is a lack of accountability, as well. Businesses are increasingly claiming to be sustainable, but few can provide hard evidence that their business practices are not damaging the environment. Last month, a group of Fortune 500 CEOs announced they would no longer make shareholders’ interests their sole priority and promised to “protect the environment by embracing sustainable practices across our businesses.” Environmentalists expressed cautious optimism about the move, saying it needs to be backed up by real change that customers can see. The problem of rhetoric over action has been made starkly clear in investment funds that claim to be socially responsible. Environmental, social and governance, or ESG, funds often include oil and gas companies, which are major contributors to carbon emissions, or other large companies like Coca-Cola, which produces 110 billion single-use plastic bottles per year. Many of the companies included in those funds have taken steps to reduce their environmental impact but are still far from having a neutral or positive impact on the environment.

Determining the value of sustainability

Shifting business practices to be more environmentally-friendly can be expensive, at least in up-front costs, which makes businesses averse to making necessary changes. “Someone can come up with a cost of doing something different much more quickly than determining what is the value to the business,” said Bruno Sarda, president of the Carbon Disclosure Project North America, a nonprofit that collects information about how companies are trying to reduce their environmental impact. It is relatively easy to calculate the savings from buying renewable energy, Sarda said, but not all sustainability solutions are as straight-forward. Changing an entire business supply chain to use more sustainable raw materials or recycle those materials, as Apple has promised to do, is likely to require a costly initial investment even if it would pay off years later. One immediate benefit of implementing sustainable business practices? It can build goodwill with increasingly environmentally-conscious customers. Government regulation can encourage companies to change their practices by putting a higher price tag on environmental damage, but politicians are often hesitant to increase regulations for fear of hurting business.

Consuming less can reduce profits

Supporting real sustainability means encouraging customers to consume less,, environmental experts say. That goal stands in direct contrast to companies’ business models, which is to expand and sell more of their product. But some businesses are trying to find a balance. Patagonia, the outdoor clothing and gear company, has long advocated for reduced consumption. “We hope our existing customers do indeed buy less. But we hope to attract more customers that are interested in our message: to build the best product, to reduce our impact and cause the least amount of environmental harm,” Doug Freeman, Patagonia’s chief operating officer, told the PBS NewsHour in 2015. Patagonia closed all its stores and offices Friday to allow its employees to join the global climate strike, and it’s pledged to only use renewable or recyclable materials in its products by 2025 as a way to reduce carbon emissions. Patagonia has the flexibility to make these decisions that could cut into profits in the short-term because it’s a privately held company so it is not pressured to show quarterly growth like publicly-traded companies. Patagonia’s products, however, are more expensive than many other companies, which makes marketing difficult in a marketplace where consumers tend to choose the cheapest option. For Patagonia’s model to work in the larger marketplace, consumers either have to believe that the higher price they are paying for a product now will save them money later because they are paying for a higher-quality product and will not have to replace it in the near future, or they have to be willing to pay the higher price in exchange for being more environmentally friendly. Both scenarios require a change in mindset, which economists say is not easy to achieve.

Climate solutions require collective action

The economic problem known as the “tragedy of the commons” posits that people believe if they do not use a natural resource, someone else will, and they will lose out. That mindset leads people (and companies) to deplete valuable resources. As a way to get around this problem, companies have been teaming up with each other and with environmentally-focused nonprofits. Loop is one such effort. Earlier this year, Walgreens and Kroger partnered with TerraCycle, a waste management company, to sell dozens of consumer products through a circular shopping system. Customers of Loop can buy a wide variety of products, from pasta to shampoo, in reusable containers. The products are delivered to the customers’ homes and, when they are empty, the containers can be picked up to be cleaned and reused. Delivery boxes with the logo of Loop are displayed before the news conference held by French retailer Carrefour and U.S. waste recycling firm TerraCycle to launch Loop, an e-commerce service to cut the flow of single-use plastic containers in Paris, France May 14, 2019. REUTERS/Gonzalo Fuentes By working together, companies gain more leverage in the national and global marketplace and legitimacy in the eyes of consumers, said Joanne Sonenshine, the CEO of Connective Impact, a sustainability business consulting firm based in the Washington, D.C.-area. “If you have a group of very respectable nonprofits or research agencies saying we are working with this company because we believe they can make a change, that puts a lot of credence behind what they are trying to do,” Sonenshine said. But Loop is only currently available to customers in a handful of northeastern states, and while other companies are creating similar circular economic models, environmental activists warn that they aren’t being adopted quickly enough to address the looming threat of climate change.