Alexei Volkov
Companies are increasingly taking steps to reduce plastic waste. Consumers and investors are demanding that corporations cut down on plastic packaging and commit to sustainability. Notably, Coca-Cola, Pepsi, P&G, Unilever, and Nestlé have signed a pact to eliminate unnecessary single-use plastic packaging and improve recycling efforts. Many other companies, from startups to multinationals, are also innovating to reduce plastic waste, with some creating compostable packaging and biodegradable alternatives to single-use plastics. While progress is being made, there is still a need to address the production and use of virgin plastic, as well as increase transparency and prioritize meaningful action to combat plastic pollution effectively.
| Characteristics | Values |
|---|---|
| Replacing conventional plastics with natural materials | Paper, cotton, wood, algae, fungi, and new generation bio-polymers |
| Using compostable packaging | Made from waste organic material and fungal mycelium |
| Reducing plastic content | 35% reduction by PepsiCo by 2025 |
| Using recycled material in packaging | Coca-Cola aims to recycle a used bottle or can for every new one sold by 2030 |
| Increasing recycled content | Coca-Cola aims for 50% recycled content in plastic bottles by 2030 |
| Using alternative materials | Volvo to use 25% recycled materials in new car models from 2025 |
| Using recyclable, reusable, or compostable packaging | Nestle committed to 100% recyclable or reusable packaging by 2025 |
| Eliminating single-use plastic | McDonald's to use renewable and recyclable packaging by 2025 |
| Developing single-layered recyclable packaging | |
| Using rigid recyclable plastics | |
| Providing clear information on plastic use | Costco to disclose the plastic footprint of its Kirkland Brand products |
| Using refillable bottles and packaging | |
| Using plant-based sources | Coca-Cola to make bottles from plant-based sources |
| Using data-driven approaches | Philip Morris International uses data to determine the prevalence of cigarette butt litter |
| Investing in recycling infrastructure | Mondelēz International invests in Circulate Capital Ocean Fund |
| Using alternative delivery models | |
| Using recycled ocean plastics | Dell uses recycled ocean plastics |
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What You'll Learn
Companies are reducing plastic packaging
McDonald's has committed to making all its packaging from renewable and recyclable sources by 2025. Dell aims to make its packaging 100% waste-free by using materials from sustainable sources, such as bamboo and recycled ocean plastics. Volvo has pledged that at least 25% of plastics used in its new car models from 2025 will be made from recycled materials.
Some companies are also investing in recycling technologies. For example, Carbios, a French biotech company, is pioneering enzyme-based solutions for plastic recycling, allowing for infinite recycling without losing quality. Philip Morris International is using a data-driven approach to determine the prevalence of cigarette butt litter and decrease it by raising awareness and providing appropriate disposable equipment.
Additionally, startups like Algramo and Cove are developing innovative solutions to reduce plastic packaging waste. Algramo has created smart dispensing systems that allow customers to refill reusable containers with household products, while Cove is working on sustainable alternatives to single-use plastic water bottles.
While many companies are taking steps to reduce plastic packaging, there is still a need for greater transparency and focus on reducing virgin plastic production and use.
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Startups are creating sustainable alternatives
Some startups are creating sustainable alternatives to single-use plastics. Xampla, a Cambridge, UK-based startup, is working on biodegradable replacements for single-use plastics and microplastics. The company has raised more than $25 million to develop the world's first plant-based material for commercial use. This substance acts and feels like plastic but decomposes naturally. Canadian startup erthos develops a plant-based alternative for single-use plastics by collaborating with agricultural companies to reprocess by-products and excess materials by integrating them into existing plastic manufacturing lines and supply chains.
Loliware, a materials technology company, creates edible and biodegradable alternatives to single-use plastics made from seaweed. The company's flagship product is a straw that looks and feels like plastic but can be eaten or safely discarded and decomposes in weeks. Loliware has expanded its product line to include cups and other disposable items made from its proprietary seaweed-derived material.
Other startups are creating sustainable alternatives to plastic bags. For example, Indian startup TGP Bioplastics develops biodegradable plastic granules for plastic bag manufacturers, using starch as the main component for cost optimization and enhancing strength with biopolymers.
Some startups are focusing on ways to better collect, process, and reuse plastic waste. For instance, French startup Carbios is pioneering enzyme-based solutions for plastic recycling. The company's technology uses enzymes to break down polyethylene terephthalate (PET) plastic into its base components, allowing for infinite recycling without loss of quality.
Startups are also creating smart dispensing systems to reduce plastic packaging waste. For example, Algramo, a Chilean startup, has developed a smart dispensing system that allows customers to refill reusable containers with common household products like detergents, cleaning supplies, and dry goods. The system uses radio-frequency identification (RFID) technology to track containers and offer discounts for reuse, incentivizing sustainable behavior.
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Businesses are using recycled materials
Many businesses are transitioning to recycled materials to reduce their plastic waste. For instance, Volvo has pledged that at least 25% of the plastics used in its new car models from 2025 will be made from recycled materials. Similarly, Dell aims to make its packaging 100% waste-free by using recycled ocean plastics and other sustainable materials like bamboo.
Coca-Cola, the world's worst plastic polluter, has launched its "World Without Waste" campaign, pledging to recycle a used bottle or can for every new one sold by 2030. The company also intends to increase the recycled content in its plastic bottles to 50% by 2030 and is experimenting with different collection techniques for recycling its products.
PepsiCo, on the other hand, has announced plans to reduce plastic content by 35% and eliminate 2.5 million tons of virgin plastic by 2025. Its parent company, Unilever, has committed to cutting virgin plastic use in half and accelerating its use of recycled plastic by 2025.
Some companies are going beyond packaging and are using recycled materials for office furniture, shop displays, and storage boxes. This holistic approach ensures that recycled plastic is utilised across various aspects of their operations.
Furthermore, startups like Algramo are developing innovative solutions to reduce plastic packaging waste. Their smart dispensing system allows customers to refill reusable containers with household products, incentivising sustainable behaviour through discounts.
These initiatives by companies demonstrate their commitment to incorporating recycled materials into their operations and contributing to the global effort to reduce plastic waste.
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Governments are offering financial incentives
One effective way to do this is through taxation on single-use plastics or non-recyclable packaging while providing subsidies for eco-friendly alternatives. By making sustainable practices more cost-effective, governments can promote a shift towards environmentally friendly choices and behaviors. For example, in 2020, New York City made headlines across the US when it moved to ban plastic bags. Similarly, India and Maine have also imposed bans and implemented recycling innovations.
Governments can also establish recycling facilities, implement mandatory recycling programs, and offer financial support to recycling initiatives. The development of support for reuse and repair centers is crucial in encouraging a culture of sustainability and waste reduction. Governments can provide subsidies or tax incentives to businesses and organizations that promote reuse and repair services.
Additionally, governments can offer financial incentives to companies exploring alternatives to plastic. These could include tax rebates, research and development funds, technology incubation, public-private partnerships, and support for projects that recycle single-use items and turn waste into resources. It's about encouraging businesses to innovate and find sustainable solutions.
Through these financial incentives, governments play a crucial role in reducing plastic waste and promoting sustainability.
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Investors are demanding plastic reduction
Investors are demanding that companies reduce their plastic consumption and switch to sustainable alternatives. In 2023, 185 investors with US$10 trillion in combined assets called on 30 CPG brands and retailers to accelerate their action on plastic. The group, coordinated by the Dutch Association of Investors for Sustainable Development (VBDO), targeted intensive plastic users, including supermarkets and multinational food companies.
The investors are advocating for a chain-wide approach, urging companies to publicly support ambitious policies on plastic reduction, such as the UN's Global Plastics Treaty. They are also calling for the elimination of hazardous substances in plastics and the disclosure of plastic-related data, including the volume of single-use plastic sold. This information is critical for investors to make informed decisions and assess the risks associated with plastic pollution.
Companies are responding to these demands with new goals and initiatives to reduce their plastic consumption. For example, Kraft Heinz and Church & Dwight have set targets to cut virgin plastic use, and Unilever has committed to cutting virgin plastic use by 50%. Additionally, companies like Coca-Cola, PepsiCo, and McDonald's have launched campaigns to increase recycling efforts and transition to recyclable, reusable, or compostable packaging.
To facilitate these changes, governments can offer financial incentives to companies exploring plastic alternatives. These incentives can include tax rebates, research and development funds, and public-private partnerships. By encouraging innovation and providing support, governments can help companies reduce their plastic consumption and contribute to a cleaner, safer, and more resilient environment.
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Frequently asked questions
Many companies are reducing plastic waste by using recycled materials in their packaging. Some companies are also eliminating virgin plastic and replacing it with refillable bottles and packaging. Coca-Cola, for example, has pledged to increase the amount of recycled content in plastic bottles to 50% by 2030.
Companies are exploring a range of natural materials as alternatives to conventional plastics, such as paper, cotton, wood, algae, fungi, and new-generation bio-polymers made from biomass sources.
Increased transparency is forcing companies to make reasonable commitments about plastic reduction and uphold them. Groups like Environment America and PIRG are organizing and exerting external pressure on companies to cut back on their plastic usage. Additionally, scientific scrutiny of the plastic footprints of major corporations is necessary to hold them accountable.
Yes, companies are going beyond packaging and looking at their overall plastic usage. This includes using recycled plastic for office furniture, shop displays, and storage boxes. Some companies are also encouraging employees to reduce their plastic waste, for example, by providing reusable water bottles and eliminating single-use plastic items.
Yes, several startups are dedicated to reducing plastic waste. Some examples include Algramo, a Chilean company with a smart dispensing system to reduce plastic packaging waste, and Cove, a company creating sustainable alternatives to single-use plastic water bottles. Loliware is another startup that creates seaweed-based, edible, and biodegradable alternatives to single-use plastics.
