As a plastics manufacturer and converter, we tend to know the people we sell to and buy from. When the creation of the product we use to manufacture or the product we sell to the market extends beyond our immediate contacts, we lose touch with how it is made or how it is used.
The goal is to move away from linear thinking and systems where we take, make, and dispose of products in a landfill or incineration. We want to collectively move towards circular systems. In a perfect circular system, there is no waste — by products of one process turn into a feedstock for another just as in nature. In a simplified circular system for manufacturing and recycling, there are six general stages.
- Manufacturing / Production
- Distribution
- Consumption by end users
- Collection and Sorting (Recycling)
- Processing to create new raw materials from collected and sorted resources
- Finished raw material is then sold back to manufacturers – back to #1 to begin the cycle gain.
Our focus as manufacturers has more understanding of the people we sell to (#2 distributors) and the people we buy from (#6 finished raw materials). This is the side of the moon we see.
The half of the circular moon we do not see includes consumption, collection, sorting and processing of the recycled materials.
Our goal in attending The Plastics Recycling Trade Show in Washington DC March 7th to the 9th 2022 was to shed light on the dark side. It is our dark side. My guess is others see the dark side in other parts of the circle depending on where they are in the #1 though #6 continuum above. We are all trying to shed light on the portions of the circle we cannot see.
Sustainability is a collaborative effort to attain a circle flow of materials — to see the whole moon. Trying to attain authentic sustainability actions is more difficult without an understanding of the portions of the circle we know influence our pursuits.
We attended multiple educational sessions and walked the trade show floor to hear from experts and interact with companies in the collection, processing, cleaning, sorting and pelletizing space —- every step that gets material from a recycle bin to a pellet ready to be made into new material.
For the longest time, the side of the circle we could not see did not seem to matter. Our feedstocks came from vendors who sourced virgin resin, not recycled resins. A linear progression as the result of recycling or lack thereof was not fed back into the production phase for manufacturing. That is changing.
The linear line has been bent with PCR (post consumer recycled content) requests and mandates, EPR (extended producer responsibility) regulation coming, consumer demand, public pressure and investors looking for more sustainable, more “circular” companies. Many stakeholders now see the recycling sector as a place to understand its problems to invest in a more circular flow of material.
The big problem is only 9% overall of plastics is currently recycled. A staggering low percentage considering the number of plastics we use every day. With mandates and laws coming for PCR, demand is growing. Supply is low due to the low recycling rates and historically minimal investment in infrastructure. The supply needs to catch up with the new demand. The dark side of the moon is no longer dark. Manufacturing companies now need supply from recycling infrastructure businesses like never before.
2,400 people attended the event. When the opening speaker asked who was attending this trade show for the first time, I raised my hand. I was not alone. Surprisingly, about half of the people raised their hands. At the end of the show, the director declared this to be the largest congregation of people ever to attend a recycling conference in North America. The interest is there. Things are happening. Time to act.
We walked into the conference with only half the moon lit. We walked out with a clearer vision on the whole circle we are part of. We need to find sources of PCR, promote the use of PCR, close our own loops in the market wherever we can, educate employees and clients about circularity, communicate what we are doing and set short- and long-term targets.
Thanks for reading.
(Additional information below…rough notes from sessions attended and website to visit.)
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Websites if you are looking for more information and guidance.
- US Plastic Pact: usplasticspact.org
- Ellen MacArthur Foundation: ellenmacarthurfoundation.org
- Ocean Conservancy: oceanconservancy.org
- World Wildlife Federation: worldwildlife.org
- Recycling Partnership: recyclingpartnership.org
- APR website: plasticsrecycling.org
Rough bullet point notes for the sessions attended are listed below.
U.S Plastics Pact Workshop: The Today and Tomorrow of Plastics Circularity
- US Plastics Pact is part of the Global Plastic Pact aligned with Ellen McArthur Foundation. 12 different Pacts worldwide
- The US Pact unites more than 850 organizations — businesses, not-for-profit, research institutions, government agencies and non-government organizations. 33% of the plastics in the US market originate from Plastic Pact members.
- Vision to ensure plastics never becomes waste by
- Eliminating plastics we do not need
- Innovating to ensure the plastics we do need are reusable, recyclable or compostable
- Circulating all the plastics we use in the economy and out of the environment
- Four targets for the Pact by 2025
- Define a list of plastic packaging that is problematic or unnecessary and eliminate by 2025. U.S Plastic Pact’s Problematic and Unnecessary Material List can be found at the US Plastics Pact website. Amongst the items listed are straws, cutlery, pigmented PET, Oxo-degradable additives, and problematic label constructions.
- 100% of plastic packaging to be reusable, recyclable or compostable 2025
- Recycle or compost 50% of plastic packaging by 2025
- Achieve average of 30% PCR or responsibly sourced biobased content into plastic packaging by 2025
- “Close loops” — Develop strategy of getting what you can back. We love plastics, we hate plastic waste. Prove it by making efforts to get the packaging back in ways you can in your own situation. Remove packages from the waste stream and into the resource stream.
- Collaboration needed — cannot do it alone
- Challenges of PCR — poorer quality than virgin film, higher price, assurance without 3rd party certification — how do you know its PCR unless certified, educating the client. Appearance versus Function —- PCR may have the same functionality but not the right appearance — can function be enough in more circumstances?
- Is an uphill battle in some places: 40 states do not have bottle deposit systems. Deposit systems are the most straightforward means of getting plastic back. Research shows it works. States that cannot seem to pass deposit schemes don’t seem very close at all to supporting legislation for EPR programs or mandated PCR content.
Association of Plastics Recyclers (APR) Workshop
Best Practices in Design for Recycling
- Package size, adhesives, colors, additives, layers, shape, ink, weight etc. all play a role in design, and all play a role on the recyclability of the package. It’s a balancing act of being able to recycle at the end of life and satisfy the marketing people.
- Four categories of recyclability setup by APR guide
- APR preferred: package is easily recyclable defined as consumer has 60% access to recycling it
- APR unknown: do not know for sure how easy it is to recycle in current conditions
- APR Recyclable with detrimental feature: it is recyclable, but it could be better with a substituted material
- APR non-recyclable: one or more factors kill it from being able to be recycled at all
- Recyclable defined by three things —people have opportunity to put it in right place, processed by existing infrastructure, re-made into identifiable product
- “Recycle ready” means the item is theoretical recyclable when the infrastructure is in place
- Circularity means no waste….100% recyclable and made into the same product (not downcycled)
- The Association of Plastics Recyclers (APR) has a tremendous amount of information and guidance on their website. The Design Guide provides clear direction to packaging companies as to what is and what is not considered recyclable given infrastructure and potential alternatives.
Policy Perspective (Federal and State)
- Plastics is 10% by weight in recycling facilities but garners 100% of the attention/mind share.
- Synergy of political interest between parties on recycling——Republicans see it as job creation and Democrats see it as helping the environment. Potential Win/Win
- Two federal laws signed in 2021. Funding in the form of grants to be distributed 2022 and 2023
- Recycle Act to build recycling infrastructure
- SOS 2.0. Save Our Seas version 2 to help clean our waterways and prevent future waste leakage into natural environment
- More bills in 2022 are on the table. Among them:
- Recycling Infrastructure and Accessibility Act geared to help more rural communities gain access to recycling
- Recycling and Composting Act granted to build out composting facilities.
- National Bottle Bill — 40 states do not have a deposit bottle bill program.
- Extended Producer Responsibility (EPR) is a likely more a state issue and not a federal one. EPR already exists for certain products like electronics and mattresses. The aim is to have EPR for packaging. The goal of EPR is to invest in infrastructure to increase recycle rates and thereby increase the supply of PCR.
- What is driving state policy is the low recycling rate of 9% overall for plastics. A big problem is that the people who are creating the supply for PCR —- the consumer —- do not see themselves as the source of supply. Policy and EPR will help move the source of supply to be the responsibility of the producer.
- We cannot meet PCR goals without a lot more supply
- US state laws around EPR are either enacted or actively considered in 10 states. Lots of different forms. Responsible party is the brand —- not the manufacturer
- Need skin in the game. Can’t say you want the bottle or the package back and not make efforts to do so.
- Must act. If you cannot get PCR 3rd party certified, start with uncertified film with some documentation.
- Waste is preventable, not inevitable
- Lots of variation — 9000 municipalities doing seemingly 9000 different things. Waste collection is a localized function making it hard to conglomerate.
- High volatility in prices affects investment in recycling facilities. When virgin films drop, it hurts PCR demand.
- Enemy of progress is perfection.
The Next Steps for Chemical Recycling
- Chemical Recycling breaks down harder to recycle packages (ex multi layers) to monomer to be able to remake new packaging
- Not at scale as of now but has come a long way in the last 5 years.
- Feedstocks come from what is out there (things recycling centers can’t recycle), from partnering with companies (carpet fibers, textiles) and from creating new streams (relook at local recycling).
- May need second sort before being able to be chemically recycled.
- Studies of greenhouse gasses for chemical recycling are shown to be less than for virgin production.
- 3rd party certification likely plays a big role in verifying chemical recycling content.
- 3rd party audits and certifications are a shortcut to building trust.
- Chemical recycling can and will work in concert with mechanical recycling.
Plastic Sustainability at a Tipping Point
- Overall, plastics have a current recycle rate of 9% . PET Bottles are 27%. The percentage needs to go up.
- Tremendous time and effort goes into making a package but once it serves its purpose, value is perceived to be lost….it isn’t—we need it back.
- How does plastic catch up in % of recycling to other recycled materials?
- Regulation – states with bottle bills have 2x the recycle rates as states without. There are only ten states with deposit bottle bills. Big opportunity.
- Design – design packages to be easily recycled in current waste streams
- Close Loop – devise a means to close loops yourself if public streams not available
- Education – educate employees, clients and the public the best you can
- New Models — Refill and Reuse models will limit the need for packaging
- The UN Plastics Treaty is coming. Will help awareness.
- OK to set soft goals and then make the public when ready – — need to start somewhere
- At this time, so much demand for PCR — not enough supply
- Food preservation and medical packaging — plastics offers the best alternative from a Life Cycle Analysis view
Private Equity Impacts
- Huge demand for PCR in packaging and other goods is driving some investment
- Demand for PCR is far greater than supply. Supply cannot come close to meeting demand right now.
- Consumer demand for PCR to grow 270% by 2025. Private Equity is helping companies meet their PCR goals.
- Closed loop buyback program — A synthetic plastics lumber company (under a PE umbrella) is buying back scraps of material from the manufacturers they serve to pelletize and remake lumber. Win for the company as they get cheaper inputs, gain a closer relationship with the client, and meet their sustainability goals. Win for the client as they have a means to get rid of the scrap and get paid.
- Mine for materials—-Customers and other local businesses are good sources you can do yourself.
Critical innovation on the Supply Side
- Republic Services presented their new venture.
- Republic was a waste and recycle collector and sorter.
- Their new Polymer Center is the 1st time a single US company will manage the plastics stream from curbside collection to delivery of high-quality recycled content for consumer packaging.
- Video of project at www.republicservices.com
2025 Packaging Goals Spur Action
- Many large brands share these three general action items by 2025.
- No unnecessary and problematic packaging as outlined in the US Plastic Pact
- Eliminate 1/3rd of new virgin plastics use. Use at least 25% PCR in packages
- All packages recyclable, reusable or compostable
- Important to have a refillable and/or a reusable option
- Communication is key – on the package, on social media, with customers. Must be accurate and authentic. Walk the walk.
What to expect in Virgin Resin Pricing
- Prices and margins getting support from oil spikes – will remain high
- Demand in 2000 and 2021 was historic and will be hard to match in future
- High global shipping rates will continue to affect local pricing
- Sustainability pressures are growing but seen in the industry as longer term