Commitments from Corporates
Announcements made by 11 CEO of top CPG companies at Davos (WEF – 2018) towards 100% recycling of plastic packaging in 7-12 years ( 2025 – 2030) is no surprise. With 8000 tons of plastics going each day into the oceans – food packaging has a significant share. Daily – 8MM empty bottles are part of the plastics ending up in oceans. Single use plastics have been the main component of waste, which finds its way into the waste streams and ends up in the ocean. This is posing a big environmental threat and even bigger activism by civil society that is waking up the regulators and government around the world.
Read AMCOR Report on Flexible Packaging in Asia
EU – which is most progressive in setting and achieving higher environmental standards, has banned single use plastic packaging from 2030. This has set the stage for aggressive commitments of 100% recycling by corporates, which presently are in mid’30s. While plastic recycling rates in EU are high (with Norway leading at 97% and meeting all its SDG goals already), rates in US is mere 35%. European regulation is big part of the reason as to why EU is ahead in recycling. Countries like Germany has a mandate of 40% minimum recycling and companies like Coca-Cola have thick returnable plastic bottles, which are used multiple times by the beverage company. There are PRO, which undertakes the reverse logistics of plastic packaging for all CPG companies and actually sell them back to the manufacturer and brand owners. The cost of such pull back and of incentivising the consumer (through deposit schemes), is built into the product by the brand owners.