July 11, 2024
The Inflation Reduction Act (IRA), signed into law in August 2022, introduced numerous provisions to constrain inflation by guiding the transition toward sustainable energy sources. A year after its implementation, McKinsey & Co. published a report showing consumer sentiment shifted towards environment-friendly products, including sustainable packaging.
Here’s how sustainability is being incorporated into plastic supply chains and where to look for guidance.
Plastic firms in the U.S. and Europe are already taking action to improve sustainability in their supply chains through measures such as sustainable packaging. The European Union’s (E.U.) Corporate Sustainability Reporting Directive, which took effect in January 2023, is encouraging plastic firms to adhere to strict sustainability standards and reporting requirements.
In the U.S., state-specific regulations are strengthening the global move toward environmental responsibility by discouraging the use of wasteful packaging.
Plastic supply chain companies are also leading sustainability efforts with initiatives such as:
To prevent adverse environmental impact, companies have also begun to reconsider and upgrade their shipping and packaging practices in alignment with the ESG (environmental, social, and governance) initiatives. However, one of the best ways to inform sustainability initiatives is by analyzing consumer behavior and preferences rather than utilizing processes that may not resonate with consumers.
The National Plastics Exposition (NPE)— America’s largest plastics trade show — is a major driver of the sustainability trend through its circular economy program. The goal of this program is to eliminate waste by keeping materials in use for as long as possible through recycling, reuse, and regeneration.
To increase the recyclability of plastic products, the NPE2024 actively promoted enhanced recycling technologies, such as chemical recycling and advanced mechanical sorting. The two processes were demonstrated in the exposition’s two recycling demo areas. They work by breaking down plastic material at a molecular level and then reusing it in brand-new products.
The exposition included a full-service program for recycling plastic scrap generated by exhibitors on the show floor. The convention also focused on minimizing plastic waste generation, reducing the impact on natural resources, and shifting to sustainable practices.
Aside from recycling, companies that are part of the plastic supply chain can help advance the circular economy by adopting sustainable packaging solutions and alternative packaging, among other initiatives, as discussed below.
The Plastic Industry Association Bioplastics Division and New End Market Opportunities (NEMO) program is educating plastic companies on the latest bioplastic developments and the best recycling practices to promote circularity.
There has been an exemplary rise in the use of recycled content, but there is still room for improvement, especially in packaging optimization. This is due to some companies’ lack of technical capabilities and comprehensive understanding of the importance of minimizing plastic waste.
Customers are responding favorably to right-sized packaging. By adopting right-sized, automated packaging solutions, companies can reduce waste by ensuring that packaging precisely fits the product, thereby appealing to more customers.
This packaging solution also eliminates the need for filler materials, such as bubble wrap made of plastic, specifically polyethylene. The Plastic Industry Association’s Flexible Film and Bag Division program (FFBD) provides resources on this and other plastic packaging advancements.
There is an increase in initiatives meant to reduce the volume of plastic filler in shipped packages and transition to recyclable alternatives. Awareness and implementation of the circular economy are growing among the public and at the corporate level. There will also be a switch to multi-use packaging options that offer practical benefits to consumers.
For example, plastic fillers could be designed so that consumers can reuse them for their shipping needs. They can also be returned to the retailer or manufacturer at no extra cost for reuse in future shipments. This effort could also extend to the packaging itself.
Shipping an item with its original packaging is beneficial for the environment. Industry players within the plastic supply chain have participated in SIOC (Ship in Own Container) studies to determine packages that can withstand the trip without needing an external box. These include those soft enough to be stacked in a box without damage and those with strong original packaging.
This method is far from being fully adopted as numerous logistical issues must be addressed. For example, it will be difficult to manage multiple items from various warehouses within a single order without resorting to external packaging. However, the studies encourage the possibility of opening the door to other sustainable plastic shipping containers or packaging.
As one of the largest plastics trade associations in the U.S., the Plastics Industry Association has taken a leading role in promoting sustainable packaging. We have launched numerous initiatives and programs, such as the Bioplastics Division, the New End Market Opportunities (NEMO) program, and the Flexible Film and Bag Division program (FFBD), to help our members develop packaging solutions that meet consumer demands. Contact the Plastics Industry Association today to learn about our sustainable packaging initiatives.
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