According to the Ellen MacArthur Foundation, an efficient circular economy could potentially reduce greenhouse gas emissions by almost 40 percent by 2050. This holistic and increasingly popular term touches upon different sectors, from packaging and construction to waste management, each presenting opportunities to address the pressures on our resources while at the same time maintaining a stable growth of living standards and a healthy economy.
The packaging sector often plays an overlooked role in reducing food waste and ensuring product safety. According to the United Nations Food and Agriculture Organization, no less than 1.3 billion tonnes of food are wasted every year, contributing to 8 percent of GHGs emissions. "Food and beverage packaging plays a crucial role in feeding the world's growing population," says Jason Pelz, VP of sustainability at Tetra Pak. "By maintaining food quality and safety for longer periods of time, packaging helps nutritious products reach people across wider and even remote geographic regions." Research from the Institute of Food Technologists shows that the often demonized plastic packaging can extend the shelf life of fruits and vegetables by three to 20 days, reducing waste and hunger dramatically. In addition, studies by the Natural Resources Defense Council show that in developing countries, up to 50 percent of food is lost before reaching consumers due to inadequate packaging and preservation methods; the World Bank estimates that improved packaging could help feed an additional 1 billion people globally. It is worth mentioning that beyond packaging innovations, agricultural technologies are also contributing to food security and sustainability. For instance, BiOWiSH has developed a solution that uses natural microorganisms to address both crop yield and environmental concerns. Rod Vautier, president, and Bill Diederich, the company's Chief Innovation Officer, explain: "Our technology improves nutrient uptake optimizing the fertilizer efficiency, resulting in less environmental harm and higher crop yields. This approach provides a practical solution for feeding the growing global population while maintaining sustainability." By combining advances in packaging with innovations in agricultural practices, we can make significant strides in reducing food waste, increasing crop yields and feeding the world's growing population more sustainably.
Advancing their sustainability operations, Pelz tells us that Tetra Pak is investing in new solutions, "committing 100 million euros annually for the following five to 10 years to develop more sustainable packaging solutions." This industry-wide trend is also evident in Nestlé's approach. The company has launched over 20 reusable and refill projects across 12 countries. ”Our goal is to ensure packaging continues to protect product quality and freshness throughout its shelf life, while also supporting sustainable practices,” explains Jodie Rousell, global public affairs lead for packaging and sustainability. However, Rousell acknowledges that ”scaling up reusable and refill systems is challenging due to supply chains and regulations optimized for single-use packaging."
However, the packaging industry faces very grave environmental challenges. According to the UN Environment Programme, approximately 400 million tonnes of plastic waste are produced globally each year, and only 9 percent are recycled. "Consumer confusion regarding recycling has indeed increased, partly due to the variety of packaging types and the lack of standardization in recycling collection programs, their rules and definitions," notes John Hewitt, vice president at the Consumer Brands Association. This challenge is echoed in Europe, where Francesca Stevens, president of European Packaging, points out that "while Europe is doing reasonably well in recycling, it is not excelling. Many member states are at risk of not meeting the 2025 targets."
Some major players in the area are making relevant strides to tackle this issue. Coca-Cola HBC’s CEO, Zoran Bogdanovic, told us that: “Across Europe, we’re supporting the introduction of well-designed, industry-led Deposit Return Schemes – a vital ingredient in a circular packaging economy. These schemes typically achieve a return rate of 90 percent and also support high quality recycling. They allow packaging material to be kept in use for much longer and, in turn, contribute to a lower carbon footprint for each pack.” According to the Association of Plastic Recyclers, using rPET instead of virgin material reduces emissions by 67-79 percent. Another example of products you might be using which are adopting circularity principles is provided by Andrea Mondoni, general manager NA at Beiersdorf: “Our recent launch of Nivea Body Wash is packaged with up to 97 percent recycled plastic and has a lighter design that reduces packaging weight by 16 percent. This has led to a 32 percent reduction in CO2 emissions.”
In the construction sector, which according to the IEA represents 39 percent of global carbon emissions, material longevity and recyclability are increasingly important terms. Insulation materials, in particular, show a complex balance between environmental impact and long- term sustainability benefits—a challenge very similar to that faced by the packaging sector. ROCKWOOL demonstrates this with its own approach to insulation materials. Mirella Vitale, SVP, told us: "Tests from old construction sites show that our stone wool insulation products can last at least 65 years, significantly outlasting many of the plastic foam insulations that can deteriorate more rapidly and lose their thermal performance." According to the IEA, insulation can reduce a building's heating and cooling needs by up to 90 percent, proving that the right material can be just massive when it comes to reducing energy expenditure. If we couple this use of sustainable materials with innovative approaches to overall building design, the results are even more impressive. Ahmed Baghoum, CEO of Masdar City, illustrates this point: "Our green building journey began from the outset. The initial buildings in Masdar City were designed to save up to 40 percent of water. We moved on to more challenging projects like the IRENA headquarters, which saves up to 60 percent of energy. At COP28 last year, we announced the NZ1 building, which incorporates solar panels and other advanced technologies to be designed for net-zero as it generates 100 percent of its energy needs on-site." This approach, combining advanced materials with cutting-edge design and technology, demonstrates the potential for reductions in the impact of buildings throughout their lifecycle.
The recycling of metals shows how the circular economy can be applied at a large and high-impact scale. The World Steel Association reports that one tonne of steel recycled can save no less than 1.5 tonnes of CO2 emissions, rendering this type of recycling one of the most impactful circular processes globally. Within this context, Befesa has developed processes to extract maximum value from what would otherwise be nothing more than waste. Rafael Pérez, CFO, explains their particular approach: "The process involves using a 60-meter- long kiln, rotating continuously to extract zinc from steel dust. This zinc comes from steel scrap, much of which is galvanized, meaning it has a thin layer of zinc coating to prevent corrosion." The impact is substantial: "By recycling over 1.2 million tons of material each year, we prevent the need for equivalent volumes of natural resource extraction." This translates to 1.8 million tonnes of CO2 emissions avoided annually through their recycling operations.
While the World Economic Forum estimates that circularity could potentially generate $4.5 trillion in economic benefits by 2030, significant barriers remain. As Tobiasz Staszak, area manager at Reynaers Aluminium, points out, "What's lacking is education and better coordination among different stakeholders and trades, such as facade contractors, mechanical contractors and architects." This coordination problem is complicated further by regulatory approaches that don't always align with scientific evidence. As Francesca Stevens warns, "An ideological approach to regulation often ignores scientific data and facts, focusing instead on popular demands. This can lead to misguided decisions, such as substituting one material for another without a thorough life cycle assessment." In a time where initiatives often follow trends, the success of circularity will depend on our ability to base decisions on scientific analysis rather than on popular sentiment or quick-fix solutions.