Unilever and Veolia unite to drive a global circular economy for plastics

25 Oct 2018 --- Unilever and plastic recycling specialists, Veolia, have signed a three-year collaboration agreement focused on driving emerging technologies in waste collection and recycling infrastructure. The partnership aims to establish a circular economy on plastics across a number of international regions, starting in India and Indonesia. In reaching this agreement, Unilever and Veolia acknowledge that the issue of plastic waste is a shared responsibility that requires bold action across the value chain to develop and scale up collection and reprocessing infrastructure, which is critical in the transition towards a circular economy.

The work will focus on material collection, which will help channel recycled content back into the value chain. Veolia will work with Unilever to implement used packaging collection solutions, add recycling capacity and develop new processes and business models through this partnership in various countries.

According to the Ellen MacArthur Foundation, just 14 percent of the plastic packaging used globally is collected for recycling after use, with 40 percent ending up in landfill and a third in fragile ecosystems.

Where to begin? India and Indonesia
“We’re starting in India and Indonesia where the issue of plastic pollution is particularly acute, and therefore where we have the greatest opportunity to improve waste management and recycling infrastructure,” a Unilever spokesperson tells PackagingInsights. “Indonesia is the second largest country in terms of producing plastic waste which ends up in the ocean.”

“The challenge in creating a circular economy for plastics starts with collection, particularly flexibles,” the spokesperson continues. “Here Veolia and HUL are collaborating to conduct multiple pilots to identify solutions which could help improve the effectiveness of existing collection systems. We are in the initial stages of experimenting in India. Veolia and Unilever have also agreed to jointly evaluate effective recycling systems which would enable recycling of this plastic waste. The goal is to create a circular economy on plastics and stop any leakage into the environment.”

In 2017, Unilever made an industry-leading commitment to ensure that all of its plastic packaging will be designed to be fully reusable, recyclable or compostable by 2025. To help create an end market for this material, the company also committed to increasing the recycled plastic content in its packaging to at least 25 percent by 2025. Unilever says that these targets are driving real change in its business – in particular how packaging is designed for recyclability and reuse.

Design for recycling
Last month, Veolia called for more standardized packaging which makes products recyclable by design. The announcement came as it was revealed that 93 percent of UK consumers think plastic bottles should contain recycled content and that they would be willing to pay an average of 2.5p more. Veolia is also recommending a simplification of recycling to “remove confusion” and an increase in the use of recycled content in the manufacturing of new products. Read more about it here.

In line with Veolia’s calls, the Unilever spokesperson adds that moving towards a circular economy requires a shift in how the big FMCG companies approach the design of products.

“At Unilever, in addition to advancing lightweighting innovations and exploring models for refill and re-use, we’re also developing emerging technologies that will increase the availability and quality of recycled content that is available. For example, we’ve partnered with start-up company Ioniqa and the largest global producer of PET resin Indorama Ventures to pioneer a new technology, which converts PET waste back into virgin grade material for use in food packaging.”

“We’ve already used this technology to create new Hellmann’s mayonnaise bottles. If proven successful at industrial scale, in future it will be possible to convert all PET back into high quality, food-grade packaging. So we believe that this fully circular solution could lead to an industry transformation since it can be repeated infinitely,” they explain.

“Meaningful” government action
The Unilever spokesperson also tells PackagingInsights that shifting from the current “take-make-dispose” linear consumption model to one that is circular by design will require meaningful action from the industry, but also from governments, at both a national and local level.

“We are engaging with policy makers by advocating for a more effective and efficient waste infrastructure, including: promoting integrated waste management solutions, stretching national recycling targets, at-source separation and collection systems for recyclables, incentives to increase the use of recycled content, and voluntary industry-led and funded programs.”

“For example, we’ve developed a ground-breaking new technology called CreaSolv to recycle plastic sachets which, without a recycling solution, would end up in landfill, waterways or the ocean. We will be trialing the use of CreaSolv at our Indonesian pilot plant this year, however, to make this commercially viable we need to work with municipalities and retailers to set up waste collection schemes so that the sachets to be recycled.”

“That’s why through the Unilever Indonesia Foundation we’ve worked with local municipalities to help communities in 18 Indonesian cities to develop over 2,600 Community Waste Banks where they can collect inorganic waste and sell it based on its value, ultimately reducing the amount of waste sent to landfill,” the spokesperson adds.

Educating the consumer
Another big challenge in the drive towards a circular plastics economy, notes the Unilever spokesperson, is helping consumers improve their recycling behavior.

“Unilever’s responsibility is to make sure our packaging is fully recyclable but also easy for consumers to recycle. So, we aim to make our labeling as clear as possible for consumers and we support national labeling schemes where they exist, for example, the On-Pack Recycling Label scheme in the UK. We also signed up as a founding member of the UK Plastics Pact, an ambitious multi-stakeholder initiative, led by WRAP, which aims to transform the plastic packaging system in the UK and keep plastic in the economy and out of the ocean,” the spokesperson explains.

The wide array of recycling symbols currently present on the UK market is leaving consumers confused about what packaging can be recycled and where, according to a recent Which? survey. Read about it here.

Laurent Auguste, Senior Executive Vice-President of Veolia for Development, Innovation and Markets, adds: “There is an undeniable need to transform the current way plastic packaging end of life is managed in order to reduce significantly its environmental footprint. It will take a collaboration of a new kind between all the actors of the value chain. With this global partnership, Veolia and Unilever join forces in various geographies around the globe and, from the collection to the recycling, take a leadership role to redefine a responsible and sustainable future for packaging.”

Details of which further international regions the Unilever-Veolia partnership will target, in addition to India and Indonesia, will be announced next year.

By Joshua Poole