Unilever, Mars,Incorporated, PepsiCo to cut virgin plastic use by 20% to 50% by 2025

28 / 10 / 2019

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Unilever, Mars, Incorporated, and PepsiCo announced their plans to significantly reduce virgin plastic use by 2025. Unilever has announced it will reduce its use of virgin plastic in packaging by 50 percent; Mars, Incorporated said it will make reductions of 25 percent by 2025; and PepsiCo aims to reduce the use of virgin plastic in its beverage business by 20 percent by 2025, according to a report by the Ellen MacArthur Foundation and the United Nations Environment Program.

Companies have set out actions to eliminate problematic plastic packaging, and increase the use of recycled plastic in packaging by more than five-fold by 2025 in accordance with the New Plastics Economy Global Commitment, which spearheads a circular economy vision for plastic.

Launched in October 2018, the Global Commitment now has over 400 organizations committed to eliminating problematic and unnecessary plastic packaging, and undertaking innovations so that all plastic packaging is 100 percent reusable, recyclable, or compostable, as well as safely and easily circulated without becoming waste or pollution.

Some of the most commonly identified problematic plastic items and materials are being eliminated at scale. For example, around 70 percent of relevant signatories are eliminating single-use straws, carrier bags and carbon black plastics, and around 80 per cent are eliminating PVC from their packaging.

Beyond bans, signatories including governments like Rwanda, the UK and Chile, and cities of Sao Paulo and Austin, to name a few, are putting in place a diverse set of policy measures ranging from public procurement and extended producer responsibility schemes to public awareness campaigns, fiscal measures, and incentives for research and development.

More businesses and governments are encouraged to sign the commitment and take more action to move beyond recycling and the elimination of the most problematic packaging.

This report aims to provide an unprecedented level of transparency on how almost 200 businesses and governments are changing their plastic production and use to achieve this. It shows promising early progress.

“Around the world people are calling for businesses and governments to take action to stop plastic pollution. Leading businesses and governments stepped forward by signing the Global Commitment and we can now see promising early progress. This includes major commitments to reduce the use of virgin plastic, the introduction of reuse pilot projects, and unprecedented demand for recycled plastic in packaging” said, Sander Defruyt, New Plastics Economy lead at the Ellen MacArthur Foundation. “But there is a long way to go and it is crucial these efforts are accelerated and scaled, and more businesses and governments take action to eliminate plastic pollution at the source.”

“Addressing plastic pollution requires a fundamental system shift from a linear to a circular economy for plastic, which is at the core of the New Plastics Economy Global Commitment. The 2019 Progress Report shows how leading businesses and governments are taking actions in such a systemic way, thus demonstrating this makes business and political sense. The benefits represent a huge opportunity, and the concerted approach leaves no excuses not to act,” said Inger Andersen, UNEP executive director.

“We need all actors to work together in the plastic pollution crises: UN Environment Program calls on all relevant businesses and governments to join the Global Commitment to fight against plastic pollution as part of the implementation plan ‘Towards a pollution-free planet,’” Andersen added.

Analysis carried out for the report shows that on average 60 percent of business signatories’ plastic packaging is reusable, recyclable or compostable today. Through the Global Commitment they have committed to make this 100 percent by 2025.

Packaged goods and retail signatories have pledged to increase recycled plastic in  packaging more than five-fold, from four to 22 percent, by 2025. The signatories’ total demand for recycled content in packaging by 2025 will be more than 5 million tonnes annually, equivalent to keeping 25 million barrels of oil in the ground every year.

While significant investments are being made to achieve these targets, more major investment, innovation, and transformation programs need to be developed, and more businesses and governments are urged to join the Global Commitment to ensure impact can be made at scale.

Tackling plastic waste and pollution means moving beyond recycling and the elimination of only the most commonly identified problematic packaging. Through innovation, product and supply chain redesign, and new business models, companies may reduce their overall plastic packaging use, while unlocking new economic opportunities.

Within this context, plastics producer Indorama Ventures has pledged to invest dlrs1.5 billion towards achieving its target of producing 750,000 tonnes of recycled PET per annum by 2025; and the UK Government is mobilizing approximately GBP 3 billion towards improving local collection and recycling infrastructure and packaging innovation through public-private finance initiatives. In addition, recycling companies that have signed the Global Commitment have committed to collectively quadruple the amount of recycled plastics they produce by 2025.

While more than 40 signatory companies are piloting reuse schemes, currently less than 2 percent of plastic packaging in the signatory group is reusable, indicating a significant but underexplored opportunity. Analysis by the Ellen MacArthur Foundation has shown that replacing just 20 percent of single-use plastic packaging with reusable alternatives offers an opportunity worth at least dlrs 10 billion. In addition, government signatories are supporting reuse schemes in various ways, including through public awareness campaigns and education, extended producer responsibility or public-private collaboration.