THE PLASTIC REPORT 2021 - Orkla
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Contents About Orkla Preface 3 Orkla is the Nordic region’s leading actor in brands and concept solutions for Summary 4 grocers, pharmacies, bakeries and institutional catering. The Orkla companies in Sweden have a turnover of around SEK 9,000 million and have more than 3,000 Circular plastics use 6 employees at 18 plants and offices. Orkla works to contribute to a more climate Challenges and opportunities: smart daily life and is behind many of Sweden’s most well-known brands, such as Collection and recycling of plastics in Sweden Grumme, Felix, Abba, KronJäst and OLW. With production from Eslöv in the south to Vansbro in the north, Orkla is a strong local community actor. More than 90 per cent Higher targets demand strong efforts on every level 11 of what Orkla sells in Sweden is prepared and produced in Sweden, often in close Case: Felix switched black to transparent for greater recycling 14 cooperation with contract growers. Case: Bower wants to create incentives to recycle 15 Orkla conducts broad and strategic sustainability work, with climate targets that are Use of recycled plastic validated by Science Based Targets to be in line with the 1.5 degree target. Reduc- Pure streams for increased use of recycled plastic 17 ing the climate impact from our facilities is a major focus. The company works to reduce the climate footprint of its entire value chain and focuses especially on more Case: Orkla’s vitamins and dietary supplements environmentally friendly packaging, plant-based food and giving consumers clear get climate-smart packaging 20 information to be able to make climate-smart choices. By 2025, Orkla also wants to Case: 100%-recycled materials for Coca-Cola 21 cut food waste and other waste in production in half. Biobased plastic Packaging is an important part of all of Orkla’s products. At the same time, the pack- Biobased plastic reduces carbon dioxide emissions 23 aging can have an impact on the environment and the climate. Orkla works to ensure Case: Plastic packaging made of “captured” carbon dioxide 25 that all of the company’s packaging will be able to be recycled and to increase the percentage of packaging of fossil-free or recycled materials. Case: Tall oil becomes the base of OLW’s crisps packaging 26 Next steps for a circular future 27 Orkla’s packaging targets for 2025 are: People interviewed 28 • 100 per cent recyclable packaging • 75 per cent packaging made of recycled materials References 29 • 50 per cent plastic packaging made of recycled or renewable materials. Contact 30 2 ORKLA SWEDEN – THE PLASTIC REPORT 2021
To everyone who cares about our planet Will the 2020s become the decade that we make great strides to make recycled and fossil-free plastics. We believe that this work begins to provide plastic a part of the circular economy? Many of the technical prerequisites increased understanding and knowledge regarding the various parts of the are in place, but it is important to establish a profitable model. Plastic system. Here, we as producers have a major responsibility, but suppliers and packages are praised and derided. They are easy to transport and pro- recycling companies also have a responsibility. We are also convinced that it vide good protection, at the same time that they are often made of fossil will also require incentives and regulations to achieve a functioning market for resources or are mostly only used once. recycled plastic, or to build a new deposit-refund scheme. Many consumers already help out by source sorting and prioritising packaging of recycled or There are many people who believe that we need to reduce the use of fossil-free plastic. But we cannot wait for the consumers to demand change plastic. But until we have good alternative materials, we also need to do from us. everything we can to achieve a circular ecocycle for plastic and to reduce the negative environmental impact. As leaders for the companies in Orkla Sweden, we are hopeful, and we see a number of good initiatives both within and outside our companies. At Orkla in Sweden, we want to actively work for greater cooperation in the entire value chain. Because one thing is certain – this is no “quick fix”. We are open to the problem description being able to be expressed in different Nor is it something that one single actor can achieve alone. We can only ways depending on where in the chain one is. Our hope is to open up for more do it together. discussions that are about how we can together find good solutions. What we see as an important step in order to manage our planet’s resources smarter. Many reports have been written about plastic, but most often based on a very niched perspective. We have lacked a broader perspective, and what Enjoy your reading! is most relevant for the market in Sweden. With this report, we hope to be able to shed light on various points of view and at the same time put facts in print regarding plastics as packaging material. We also want to point out the prerequisites that are required to achieve a circular system in Sweden. The areas we have chosen to focus on are the system for circular plastics use in terms of collection and recycling, as well as the use of 1. Henrik Julin, Managing Director, Orkla Foods Sweden. 2. Jessica Nithenius, Managing Director, Orkla Care Sweden. 3. Johan Görgård, Managing Director, Health & Sports Nutrition Group. 4. Malin Jennerholm, Managing Director, Orkla Confectionery & Snacks Sweden. 5. Maria Lundman-Hedberg, Managing Director, Orkla Wound Care. 6. Thore Svensson, Managing Director, KåKå, Jästbolaget & OFI S&D. 3 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Summary Sweden’s total plastic waste per year amounts to approximately 1.7 Recycled plastic raw materials can become other products million tonnes. Around 80 per cent of the waste falls out of the recycling For many kinds of plastic, there is also no secondary market, which system and goes to energy recovery. In order to keep using plastic and means that fractions that cannot be sold go directly to incineration derive benefits from the environmental advantages that it also has, we instead of recycling. Since there is little demand for recycled raw ma- need well-functioning recycling systems. We also need to lower our terials, it is also an obstacle in the recycling. Recycled plastic accounts dependence on fossil resources. Actors in the industry agree that coop- for a minimal part of all new plastic packaging in Sweden. Several voices eration throughout the entire supply chain is needed to achieve large- are being raised to bring about well-functioning incentives and there- scale recycling. However, as yet, we have a long way to go to achieve a by drive behaviour in the right direction. Many products are excellently circular system for Swedish plastic packages. suited to be made of recycled plastic raw materials, such as bin sacks, pots or plastic profiles, but the conditions for new plastic packaging are Far too little plastic material is recycled still worse. One of the challenges is the quality of recycled plastic raw Orkla’s Sustainability Barometer indicates that 8 out of 10 Swedes feel materials. that it is important to recycle plastic packages. In spite of this, only half of the plastic packages are sorted out for material recycling and only According to Orkla’s Sustainability Barometer, 62 per cent of the 10-20 per cent become new products. The statistics are misleading and consumers prefer to buy packages of recycled plastic. the measurement point for material recycling is now changing so that it better reflects how much actually becomes new materials, and the EU target for 2025 is being raised to 50 per cent. In Motala, there is today a fully automated facility that sorts out four fractions of plastics. Technical conditions still do not exist to be able to 8 out of 10 Swedes sort out and recycle laminate, plastic dyed black and plastic mixed with other materials. Recyclability is the single most important factor for us feel that it is important to to achieve a circular system. But Sweden needs its own washing and granulation capacity in order to fully close the ecocycle. recycle plastic packages. Source: Orkla’s Sustainability Barometer 2020. 4 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Summary Interest in biobased plastics has grown Fossil-free plastic and chemical in recent years, but the biobased plastic recycling making progress accounts for just 1 per cent of all plastic A complement to mechanical recycling is chemical recycling. Chemical produced annually in the world, which recycling enables the recycling of all plastic, but the technology is still in an early phase and challenges remain to be solved before it can be is around 320 million tonnes. widely used. Today, biobased plastics are mainly made from biomass, such as sugar cane and cellulose, and it is an ever-present question of how much raw material is available. From an unwanted greenhouse gas, carbon dioxide may come to be a useful raw material to produce plastic in the future. Today, there are already a number of companies that use plastic made of the carbon dioxide molecule as the raw material. Sweden is a part of a larger ecocycle and we need to change our entire mindset over time. Major changes in attitudes and behaviours are need- ed to create a sustainable change for coming generations. We need to understand that all resources we take out from the Earth must be recir- culated as much as possible. 5 ORKLA SWEDEN – THE PLASTIC REPORT 2021
CIRCULAR PLASTICS USE Why do we need a circular system for plastic? ” Plastic as a packaging material has several advan- tages. This is why it is a very common packaging ma- In Sweden, we mainly need to focus on CH terial, especially in the fast-moving consumer goods ES achieving a well-functioning recycling -B A industry (FMCG). At the same time, many consumers system where we recycle at least 80-90 KA TRIN MOL IN express concern about plastic’s environmental im- per cent of all plastic. K AT R I N M O L I N A - B E S C H pact. Katrin Molina-Besch, Associate Senior Lecturer A S S O C I AT E S E N I O R L E C T U R E R , FA C U LT Y O F E N G I N E E R I N G , L U N D U N I V E R S I T Y at the Division of Packaging Logistics at the Faculty of Engineering of Lund University, explains the envi- ronmental advantages and disadvantages of plastic And what are the disadvantages? and how we can address the challenges. “One disadvantage of plastic is of course that it is often produced from fossil resources, such as oil and gas. Compared with other packaging material, we have also not come as far in creating a circular system. What are the advantages of plastic This is not mostly about insufficient technical conditions, but rather the as a packaging material? difficulties in bringing about a financially profitable circular model for “The environmental advantages of plastic are that it is a light-weight plastic.” material, which means less transport energy compared with materials, such as glass and metal. Plastic also has good barrier properties that What is most critical to countering the disadvantages protect the contents of the packaging from external factors, such as of plastic as a packaging material? moisture or oxygen, and also at a low cost since less material is needed “In Sweden, we mainly need to focus on achieving a well-functioning to achieve the same barrier properties compared with other kinds of recycling system where we recycle at least 80-90 per cent of all plastic, materials. Through its barrier properties, plastic contributes to preserv- which we do with several other kinds of materials. In the long term, we ing the quality of food for a longer time, which is important from a food also need to reduce our dependence on fossil resources and switch to waste perspective.” renewable materials.” 6 ORKLA SWEDEN – THE PLASTIC REPORT 2021
CIRCULAR PLASTICS USE ” Why do we need to focus especially on recycling? “If the plastic is placed in a recycling container, it means that the plastic can be treated as a resource that can be recycled rather than waste that Another environmental advantage of fossil-free is incinerated. When we incinerate fossil resources, we contribute to plastic is that production of the plastic most often global warming. takes place through renewable energy. K AT R I N M O L I N A - B E S C H “When more packages are recycled instead – and the material is mostly used several times without being degraded – we also don’t need to use as many resources to make new packaging, which also entails major environmental gains.” What are the advantages of fossil-free plastic? Why are certain kinds of plastic recyclable “Fossil-free plastic is a plastic that has been made of renewable raw ma- and others aren’t? terials instead of fossil raw materials. Common raw materials in this con- “Before the plastic can be recycled, it has to be sorted according to what text are, for example, sugar cane, corn starch and potato starch. Another kind of plastic it is. But today, the automated system may have difficulty environmental advantage of fossil-free plastic is that production of the in distinguishing, for example, black plastic, which is then sorted out plastic most often takes place through renewable energy, which entails and incinerated. Mixed plastic materials that consist of several layers of a lower climate impact in the production compared with fossil plastic, different kinds of plastic are also impossible to distinguish and separate. which most often also uses fossil energy in the production process. Some kinds of plastic are also used in too little volumes in order for it to Another advantage of fossil-free plastics is that when they are inciner- be financially viable to recycle the plastic since there is no demand for ated, there are no emissions, while when we incinerate fossil plastic, we the recycled material.” contribute to the greenhouse effect.” What disadvantages does the fossil-free plastic have? “One of the major disadvantages is that the fossil-free plastics that exist today are often produced from raw materials that could have been food, such as corn and potatoes. As long as we do not succeed in recycling more plastic, it means that the production of fossil-free plastic can LE O R N compete with the food production. Moreover, the agriculture for the YC L AB OT cultivation of these renewable raw materials is also not free from envi- C RE ? ronmental challenges. Therefore, it’s important that increasingly more fossil-free plastic is instead produced from waste products from, for example, farming or forestry. 7 ORKLA SWEDEN – THE PLASTIC REPORT 2021
CIRCULAR PLASTICS USE So what is best – fossil-free or recycled plastic? ” “I believe that we need both of the changes: we need to both go from fossil dependence to fossil-free and be able to recycle more of the pack- Packaging suppliers and producers ages we produce. To really capture the environmental gains in a better recycling system for plastic, we would also need to create a so-called probably need to reduce the number closed loop, a system where all of the packages recycled can become of kinds of plastics they use. new packaging material again, like in the PET system. It’s extra important K AT R I N M O L I N A - B E S C H in the food industry, where the requirements on food safety mean that the recycled plastic must only come from other food packaging. “When we have a better recycling system in place, we also do not How can we achieve a better recycling system? need to consume as much renewable raw materials to produce new “In order to achieve large-scale recycling, the entire supply chain and all packaging.” of society have to contribute. It should preferably also take place across the borders – Sweden is after all not isolated from the world and we both export and import products. Packaging suppliers and producers probably need to reduce the number of kinds of plastics they use. Today, one can choose whatever plastic one wants, which means that demand for the recycled material of some of these plastics may be very small. “In order for the food industry to be able to use more recycled plastic, one or more entirely closed recycling systems are also needed or even better sorting, which guarantees that it is precisely food packages that become food packages again, to thereby guarantee food safety.” “In order to achieve large-scale recycling, the entire supply chain and all of society have to contribute.” 8 ORKLA SWEDEN – THE PLASTIC REPORT 2021
THE SWEDISH SYSTEM FOR A CIRCULAR PLASTIC USE Plastic’s way towards circularity RECYCLING STATION & COLLECTION CLOSE TO PROPERTIES The consumer sorts and leaves used packaging at collection points close to the properties or at recycling stations, which is handled by Förpack- ings- och tindningsinsamlingen (Packaging and newspaper collection - FTI), which is owned by multiple material companies, including Swedish Plastic Recycling. The material companies are in turn owned by the pro- ducers. Around half of all plastic ends up in household waste and today is not sorted, but goes directly to waste incineration. MARKET SORTING Producers make products FTI transports all collected plas- that are packaged and sold tic packaging to Motala where to consumers. Swedish Plastic Recycling sorts it. The plastic packaging that cannot be sorted out or recycled Ultimately, today around 10-20% for various reasons, around 50 per cent of the packaging today, of the plastic packaging that is put goes to waste incineration. on the market is recycled. WASHING & GRANULATION Sorted packages are washed PACKAGING MANUFACTURERS and granulated. A process Recycled granules are bought by packaging man- that does not exist in Sweden, ufacturers who make new packages out of the but does exist in other coun- material. The plastic granules can also be used tries in Europe. in entirely different contexts, such as becoming flower pots or furniture. WASTE INCINERATION 9 ORKLA SWEDEN – THE PLASTIC REPORT 2021
CHALLENGES AND OPPORTUNITIES Collection and recycling of plastics in Sweden 10 ORKLA SWEDEN – THE PLASTIC REPORT 2021
COLLECTION AND RECYCLING Higher targets demand strong efforts on every level A total of around 1.7 million tonnes of plastic waste arises in Sweden yearly, of which most today, around 10-20 % 80 per cent, falls out of the recycling system and goes to energy recovery. The emissions from waste incineration of plastic amounted to 2.6 million tonnes in 2018 and thereby accounted for more than half of the plastic packaging of the electricity and district heating sector’s emis- is recycled today sions1. Despite these significant emissions, Sweden’s targets for recycling of plastic have, however, not much actually becomes new materials. At the same time, the recycling been higher than what we could achieve. In 2019, target for plastic packaging is also being increased by 20 percentage the degree of recycling for plastic packaging was points to 50 per cent by 2025. Since it is a new way to measure, there 49 per cent and we thereby achieve the recycling are no exact statistics, but the actual recycling in plastic packaging is target of 30 per cent in Sweden according to the today probably at 10-20 per cent. method used to report to the EU. “We have a long way to go to reach the whole way and we need to work in every part of the chain: producers, consumers and the recycling in- dustry, in order to succeed. In order for us to reach the EU’s new recy- “The target becomes misleading today since what is measured is what cling target, we assess that 80 per cent of the plastic packaging put on percentage has been sorted out by the consumer and gathered in to be the market must be collected,” says Mattias Philipsson, CEO of Swedish recycled. The percentage that actually becomes new raw materials and Plastic Recycling. new products is significantly lower than the statistics show,” says Åsa Stenmarck, who heads the National Plastic Coordination at the Swedish Environmental Protection Agency. Collection close to homes one way forward A strong increase from a level that is already high today in an interna- As of 2020, recycling for what is reported to the EU will therefore be calcu- tional comparison is not done all at once. And time is running out to lated differently so that what is reported as recycling better reflects how achieve the target within just five years. Studies show that the total 11 ORKLA SWEDEN – THE PLASTIC REPORT 2021
79% COLLECTION AND RECYCLING amount of collected packaging per person is significantly higher in municipalities with collection closer to homes2, something that the government decided to introduce throughout Sweden although it is still of Swedes source sort unclear when. their waste. Even if consumers get better at doing their part, there are still large leaks in the system. But technology is advancing and a lot has happened in plastic recycling in Sweden in connection with the sorting plant that Source: Orkla’s Sustainability Barometer 2020. Swedish Plastic Recycling commissioned in January 2019. “The plant is fully automated and today sorts out four fractions of plas- Producers and packaging companies need to change their way of work- tic. Around half of the plastic packaging that comes to the sorting plant ing, and put demands on package design in order to achieve the targets. goes on to washing and granulation and the rest goes to incineration,” says Mattias Philipsson and continues: “Recyclability is the single most important factor for us to achieve a cir- “In order to fully close the ecocycle, we need our own washing and cular system. It is not worth much for a product to be made of recycled granulation capacity in Sweden.” materials if it is not recyclable in its turn,” says Fredrik Pettersson, Man- aging Director of Stena Recycling. Technical limitations mean that, for example, laminate, plastic dyed black and plastic mixed with other materials, such as metal, is sorted out. For Kristin Geidenmark Olofsson, Director of Regulatory Issues and Strategic Innovation at the packaging company Trioplast, it is important that this mindset comes into the chain early on: “If we don’t already develop packaging for recycling of the material in the design phase, it can’t become a good new raw material. What should a bag for food look like to be recyclable? As product owners, we have to Plastic packaging is treated differently in the world begin thinking longer: ‘What happens later and how can we make sure that it works?’ What would your package look like if you rented it? We have to begin thinking like this in the entire chain.” 0.5 % 40 % 0,? % 32 % SWEDEN WORLD SWEDEN WORLD Market for recycled material requires incentives LANDFILL NATURE For many kinds of plastic, there is also no secondary market, which means that fractions that cannot be sold go directly to incineration Source: Sweden figures an estimate from Plastkretsen Sverige, 2018 and the world Ellen MacArthur, 2013. instead of recycling. 12 ORKLA SWEDEN – THE PLASTIC REPORT 2021
COLLECTION AND RECYCLING “Since there is little demand for recycled raw materials, it is also an ob- stacle in the recycling. There is quite a lot of plastic in the system that is not recycled because there is simply not a market for it, and we have to Different kinds of recycling begin creating incentives to get a functioning market started,” says Åsa In mechanical recycling, the collected plastic is ground down into small Stenmarck. bits that are then remelted and formed into new products. Mixed and impure plastic becomes difficult to recycle with mechanical recycling. Society also has its role to play in establishing behaviour and Chemical recycling means that thermochemical processes are used to a functioning market. be able to filter undesired substances and dyes out of the plastic, which “We can’t place all of the responsibility on incentives, but they are an is then made into oil, which in turn can be used in new production. important part in order to achieve a functioning circular system. But it Chemical recycling enables the recycling of all plastic, but the technol- is important how we develop the incentives – they drive our behaviour. ogy is still in an early phase and challenges remain to be solved before For example, what would happen if instead of taxing plastic bags that chemical recycling can be widely used. are recyclable and good products to put recycled plastic in, we placed a tax on packaging that is not recyclable,” says Fredrik Pettersson. 46% 61% of Swedes are of Swedes find that it is often worried about plastic’s hard to know if a package can 54% environmental impact. be recycled or not. Source: Orkla’s Sustainability Barometer 2020. Source: Orkla’s Sustainability Barometer 2020. of Swedes are worried about the amount of plastic in the sea. Source: Orkla’s Sustainability Barometer 2020. 13 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Case: Felix switched black to transparent for greater recycling In 2020, the Orkla brand Felix replaced its black one-portion bowls with translucent bowls, which makes it possible to recycle another 91 tonnes of plastic per year. “Today, it’s not possible to recycle black plastic. By switch- ing from black to clear plastic in our one-portion bowls from Felix, we make it possible to get more plastic into the circular flow and thereby more climate-friendly packaging can be produced. This is one of a number of sustainability initiatives from Felix during the year. We welcome more people to hasten this transformation so that we can reduce We can recycle 91 tonnes the climate impact of packaging together,” says Thomas Sjöberg, Marketing Manager, Orkla Foods Sweden. a plastic per year just by changing the colour of the plastic. 14 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Case: Bower wants to create incentives to recycle The Orkla brand Grumme cooperates with Bower (formerly “PantaPå”), which lets consumers get money back on all kinds of packages directly at the recycling station, by scanning the package’s bar codes with the Bower app. The money is gathered in the app and can then be re- deemed to a bank account or be received as discount coupons that can In less than be used in stores. The app also shows users how much carbon dioxide one year, more than they save by recycling, as well as how they should recycle the package. It is only products from Bower’s affiliated partners that can be scanned. 10,000 Grumme packages For Grumme, the cooperation with Bower is a way to increase the incen- have been returned tive for the consumer to turn empty plastic packages in for recycling, and through the app. thereby increase the amount of recycled plastic in the market. “Today, there is a shortage of the kind of recycled plastic that we want to use in our packaging. By cooperating with Bower, we hope to con- tribute to more plastic being recycled in Sweden and being able to be reused in new packages,” says Jessica Nithenius, Managing Director of Orkla Care Sweden. “Since we introduced the possibility of registering the recycling station close to homes that many multi-family dwellings use, a whole 17,000 new recycling stations have been registered in the app. This really shows how many people want to use the app to recycle their used packages,” says Suwar Mert, CEO of Bower. 15 ORKLA SWEDEN – THE PLASTIC REPORT 2021
CHALLENGES AND OPPORTUNITIES Use of recycled plastic 16 ORKLA SWEDEN – THE PLASTIC REPORT 2021
USE OF RECYCLED PLASTIC Pure streams for increased use of recycled plastic Recycled raw materials are uncommon in the plastic By using 100 per cent recycled industry today and a minimal part of recycled materi- plastic in Orkla’s drink bottles from als are used in new packaging. But functioning solu- BOB and FUN Light, the climate impact tions and systems exist. is reduced by 75 per cent. Many products are excellently suited to be made of recycled plastic Trioplast has long innovated with recycled plastic and has come far raw materials. Today, plastic from recycled plastic packaging is often in terms of using recycled raw materials. But in total, recycled plastic used for garbage bags, pots or plastic profiles, but rarely for new plastic accounts for a minimal part of all new plastic packaging in Sweden. packaging. One of the challenges is the quality of recycled plastic raw materials. Strict regulations for food packaging In order to ensure that there are no substances in the raw materials that “With new materials, we know exactly how it works and it is the same are unsuitable in contact with food products, there are special regula- every day we produce. With recycled raw materials, it becomes a mix tions for the use of recycled plastic in food packaging. In order for and it is a new material every time. It’s a process to learn how the material recycled plastic to be able to be used, the plastic must have been recy- behaves and get the machines to work with it,” says Kristin Geidenmark cled and certified in a process approved by the European Commission. Olofsson, Director of Regulatory Issues and Strategic Innovation To be approved, there must be traceability in the system. In practice, this at the packaging company Trioplast. means that it is virtually only recycled PET that is today approved since it is the only plastic fraction that we have a recycling system for in Sweden and at an EU level with traceability. 17 ORKLA SWEDEN – THE PLASTIC REPORT 2021
USE OF RECYCLED PLASTIC The other option for reusing recycled material for food packaging is to encapsulate the recycled material with at least one layer of a functional barrier of new material. “Today, there is no definition for what a functional barrier is or how one verifies it for polyolefin films. Basic research is needed for how verification should be done and the European Commission needs to define the ter- minology so we know what we should work by,” says Kristin Geidenmark Olofsson at Trioplast, which despite the problems is working in projects to develop food packaging from recycled plastic with a protective barrier. “The legislation goes slow and to some extent we have to hope that producers and packaging developers work around the system with in- novation so that one meets the requirement, but can still have recycled plastic raw materials to some extent. Plastic recycling is not digital, recy- cled plastic can be mixed with new raw materials. 20 per cent recycled is Pure granules the key in development better than 0 per cent,” says Åsa Stenmarck at the Swedish Environmental But even if one works with protective barriers, Trioplast sees pure Protection Agency. recycled plastic as a crucial factor. “We have scanned the European market for recycled plastic and the purest granules are found from small collection systems, so if we tighten Whether or not the package can be recycled up the collection system, we get purer granules,” says Kristin Geidenmark Olofsson at Trioplast. is the most important information on a product package, according to Swedes. In addition to the PET system, this currently concerns closed collection systems from companies or the public sector that create systems with pure fractions. 62% prefer to buy packages of recycled The pure recycled granules are attractive and believed to be a commodity in short supply in the future. For the recycling company Stena Recycling, which was early in working for a circular recycling of plastic, it is impor- plastic than regular plastic. tant for a circular system to also focus on what plastic is used where. Source: Orkla’s Sustainability Barometer 2020. 18 ORKLA SWEDEN – THE PLASTIC REPORT 2021
USE OF RECYCLED PLASTIC “Even in well-functioning circular systems for plastic, we will always need to add virgin material. Therefore, we need to think about what plastic we will use for what application. Perhaps we should not initially use recycled plastic for the most demanding applications, but rather begin with simple applications to hold down costs and first get a func- tioning system. If we begin with the most difficult first, there is a risk that Functioning systems require regulations it slows the pace,” says Fredrik Pettersson, Managing Director of Stena “Consumers are bad at sorting out plastic as it is today and getting the Recycling. consumer to distinguish between styrene plastic and polypropylene does not feel realistic. But, on the other hand the PET deposit flow works very well. Deposit systems are something that the customers like,” says Åsa Domeij, Sustainability Manager at Axfood and Chairman of the government’s delegation for the circular economy. Åsa Domeij does not believe that the business community would man- 67% age to build new deposit systems without compulsory regulations from the political sphere. The market value of recycled plastic is bad because the market has to resolve the issue itself. It is simply not profitable to thinks that it is impor- conduct collection, keep the plastic streams separated, or invest in high- tant that the products tech refinement as long as the price for secondary material is low and one buys have recycla- new raw materials are inexpensive. ble packaging. “In business, we can drive the development. But it also depends on the political decisions to achieve systems that work. It is necessary for the 8% political sphere to help with economic incentives,” says Åsa Domeij. of the world’s oil use goes to “Political decisions are necessary the production of plastic. to achieve systems that work and politicians must help with economic incentives.” Source: Orkla’s Sustainability & IVL Swedish Environmental Research Institute. 19 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Case: Orkla’s vitamins and dietary supplements get climate-smart packaging The majority of all packaging from the Orkla brands Pharbio, Pikasol, Gevita and Active Care are made of recycled plastic. In total, there are 27 different products that received new packaging in 2020. The new bottles consist of 100 per cent recycled PET. They have also been made thinner to reduce material consumption and clear to facili- tate recycling. The bottles have also been given new labels, now made of biobased plastic. However, the caps are initially still made of fossil plastic as the quality requirements on the caps have not yet been met with other materials. In order to make the bottles more space-efficient and reduce emis- sions in transports, the shape is rectangular. The production of the new bottles is also more climate smart. Around 80 per cent less energy is needed for the production of the bottles made of recycled plastic compared with bottles made of new plastic. 80% less energy is needed for the “Our hope is that we will soon be able to have a closed recycling system for these kinds of packages, just like for juice and soda bottles production of the bottles made of PET,” says Jessica Nithenius, MD of Orkla Care Sweden. of recycled plastic compared with bottles made of new plastic. 20 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Case: 100%-recycled materials for Coca-Cola In January 2020, Coca-Cola in Sweden began to shift the locally pro- duced PET portfolio to recycled plastic, called rPET. A transformation that went very quickly despite very high quality standards. The initiative should be seen in the light of how Coca-Cola’s packaging strategy is to deliver on the goal of achieving zero net emissions of greenhouse gases in the entire value chain by 2040. Packaging accounts for 54 per The return system that exists in Sweden for beverage packaging via cent of Coca-Cola’s climate footprint in Sweden. Three clear goals for Returpack enables a high degree of material recycling. Lisa Wahlström reducing the packaging’s climate footprint are that all packages will be emphasises that the supply of renewable materials or chemically recy- recyclable, will be collected for recycling and will consist of 100 per cled materials is important over time to compensate for the material cent recycled or renewable materials. losses that arise in the recycling processes. “Every package we put on the market shall be able to be collected,” says “But here, we have to work together with the recycling companies to Lisa Wahlström, Communication and Sustainability Director, Coca-Cola create a circular flow in the entire value chain,” says Lisa Wahlström. European Partners (CCEP) Sweden. By shifting over to rPET, CCEP expects to reduce the amount of newly made plastic by 3,500 tonnes It was no coincidence that Sweden was the first country to launch rPET. and reduce the PET bottles’ climate footprint by 25 per cent per year. “We see that Swedish consumers want to make sustainable choices, which makes it easier to make a commercial decision. Our Swedish customers also presuppose that we take a leadership role. It demands courage to believe in the right thing and I see a growing willingness in the industry to support and help each other,” says Lisa Wahlström. 21 ORKLA SWEDEN – THE PLASTIC REPORT 2021
CHALLENGES AND OPPORTUNITIES Biobased plastic 22 ORKLA SWEDEN – THE PLASTIC REPORT 2021
BIOBASED PLASTIC Biobased plastic reduces carbon dioxide emissions If targeting more environmentally aware consumers, the transition from fossil to plant-based plastic in the packaging is even more important,” Today, the development for biobased plastic is says Helena Lindh, Sustainability Expert at Tetra Pak North Europe. mainly driven by environmentally aware customers According to Orkla’s Sustainability Barometer 2020, 3 out of 10 consumers and consumers who want to reduce carbon dioxide are prepared to pay more for products with biobased plastic packag- emissions. But the biobased plastic only accounts ing. But despite this, biobased plastic is just less than 1 per cent of the for almost 1 per cent of the more than 320 million world’s plastic production today. tonnes of plastic that are produced in the world Today, biobased plastics are mainly made from biomass, such as sugar annually. cane and cellulose, and it is an ever-present question of how much raw material is available for biobased plastic: “Biobased plastic is an important part in the circular ecocycle and can “Not enough is the simple answer, but we don’t really know. More analy- absolutely be one piece of the puzzle. Even if biobased plastics in purely ses of this really need to be done. I think that maybe 50 per cent of our technical terms cannot replace all plastics, all plastic packages can be plastic production could be biobased and 50 per cent recycled in the made of biobased plastic,” says Åsa Stenmarck, who is the manager for future. But at the same time we also need to reduce the amount of plastic the National Plastic Coordination at the Swedish Environmental Protection overall in order for the raw materials to suffice,” says Åsa Stenmarck. Agency. Interest in biobased plastics has grown in recent years and is driven are willing to pay more for 36% mainly by environmentally aware customers and consumers. packaging of biobased plastic, “We notice that there is a strong demand in the Nordic countries for compared with 27% who say they carton packaging with plant-based plastic in the cork and in the laminate. are not at all willing to pay more. Source: Orkla’s Sustainability Barometer 2020. 23 ORKLA SWEDEN – THE PLASTIC REPORT 2021
BIOBASED PLASTIC Tetra Pak, which is the world’s largest user of biobased plastic, sees that the development must take place gradually. “We use a growing percentage of plant-based plastic, but see that there is still a limited supply and the transition is not taking place overnight,” says Helena Lindh at Tetra Pak. New technology hastening the development From an unwanted greenhouse gas, carbon dioxide may come to be a useful raw material to produce plastic in the future. There are already a number of companies today that use plastic made from the carbon “But we need multiple measures for this to be possible. As long as we dioxide molecule as raw material through various techniques, for shoes have competition from inexpensive fossil oil, this change won’t happen and for foam in mattresses, but packages are also in development. on its own and we can’t demand that the consumer drives the change. Political incentive would be needed here to achieve a real change,” says But the technical development costs money and with a declining world Åsa Domeij. market price on oil, it is hard for the biobased raw material to compete. Åsa Domeij at Axfood highlights the need for us to have access to more production of biobased plastic also in our part of the world, from for example leftover forest raw materials, as a complement to increased use Biodegradable plastics in a Swedish context of recycled materials. Biobased plastics should not be confused with biodegradable or compostable plastics. Biodegradable and compostable plastics can be made of both fossil and renewable raw materials. In contrast to what one might think, this plastic is not broken down in nature, but rather requires specific industrial conditions for biological degrada- tion to occur. If degradable plastic ends up in nature, it is broken up into microplastic, just like other plastic. Today, there is no recycling system in Sweden that can handle biodegradable plastic packaging. Therefore it is not suitable in plastic packaging or other products that are intended to go to recycling. 24 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Case: Plastic packaging made of “captured” carbon dioxide The cosmetics company L’Oréal, the energy company Total and the technology company Lanza Tech have developed a technique that can convert captured carbon dioxide into plastic bottles. The process builds on a technology developed by the American Lanza Tech. It uses bacteria that can produce ethanol from climate emissions through fermentation. The ethanol is then converted to polyethylene by French Total and lastly it becomes bottles that should carry products from the French cosmetics company. The climate gases that are to be raw materials are intended to be taken from a steel mill. If they succeed in the launch, it will probably be the world’s first pack- aging made of plastic produced from “captured” and recycled carbon dioxide from industrial emissions. By 2025, French L’Oréal plans on launching shampoo bottles made of captured carbon dioxide. 25 ORKLA SWEDEN – THE PLASTIC REPORT 2021
Case: Tall oil becomes the base of OLW’s crisps packaging In autumn 2020, under the brand OLW, Orkla began working to introduce new crisps packages made of Finnish tall oil, which is a residual product from the forest industry. The plastic in the new crisps bags thereby have half of the climate footprint compared with fossil plastic. The ambition is to gradually introduce bags of plastic from tall oil for all snack packages. The bags are third-party certified by the organisation ISCC. This is done through a so-called mass-balance solution, which means that the pack- aging supplier in its general production replaces fossil oil with tall oil to a corresponding amount that is used to make the OLW crisps bags. “The most important for us is that it actually contributes to a concrete reduction of climate emissions. Our attitude is that we have to begin somewhere, begin doing things to find more climate smart solutions,” says Sara Malmström, Quality and Sustainability Manager at Orkla Confectionery & Snacks. The biobased plastic in the new crisps bags have half of the climate footprint compared with fossil plastic. 26 ORKLA SWEDEN – THE PLASTIC REPORT 2021
PACKAGING OF THE FUTURE What else can you say about chemical recycling? “Because chemically recycled plastic can be viewed in the same way as Packaging newly made plastic, it will also be able to be used in direct contact with food. The material is already commercially available in Europe today and of the future it is of course an alternative we are considering. But we must remember that chemical recycling will always be a complement to mechanical recy- cling so we should not forget to stimulate and support the development Pavel Komůrka is the Sustainability Coordinator of new and improved recycling techniques. It leads to higher quality in the recycled plastic package waste. Moreover, the chemically recycled plastic and in charge of package innovation in the must also be able to be recycled again.” Orkla Group. This is how Pavel views the packaging of the future. Hybrid or mixed packaging materials, which are normally difficult to recycle, are common today. What do you see in terms of solutions for the future? What are the greatest challenges for us to be “I see two routes here: on one hand, we need to actively look for suita- able to achieve a circular plastics use? ble alternatives to the hybrid-packaging materials that at the same time “The greatest challenge I see in the upcoming decades is to change our can provide acceptable product protection. For example, at Orkla we are mindset. Major changes in attitudes and behaviours are needed to create looking at a transition from combined plastic packaging to monomaterial a sustainable change for coming generations. We have to understand that structures that have a higher potential for recycling. But we also need to all resources we take out from the Earth must be recirculated as much as work on innovation and research to develop and enable recycling, both possible.” mechanical and chemical, of this kind of material.” What visions of the future do you have in terms of the use of recycled plastic? In summary, what does the future look like for plastic? “I see that we will begin by maximising the use of recycled plastic in “At the same time that we see that concern and mistrust of plastic is packaging other than food packaging since the use of recycled plastic in growing in society, plastic is also a material that will be needed in the food packaging has its limitations – we must never compromise on food future as well. Instead of focusing on eliminating plastic, we need to teach safety. We can also use recycled plastic for secondary plastic packages. ourselves and our children how we achieve a circular plastics use, make A lot is also beginning to happen in chemical recycling, which is especially wise environmental choices and reduce the amount of plastic where interesting for the food sector.” possible.” 27 ORKLA SWEDEN – THE PLASTIC REPORT 2021
PEOPLE INTERVIEWED People interviewed Åsa Domeij is the Sustainability Mattias Philipsson is the CEO Kristin Geidenmark Olofsson is the Åsa Stenmarck is in charge of the National Manager at Axfood and Chairman of Swedish Plastic Recycling. Director of Regulatory Issues and Plastic Coordination at the Swedish Environmental of the government’s delegation Strategic Innovation at the packaging Protection Agency and among other things, was for the circular economy. company Trioplast. previously the government’s special investigator on the environmental effects of plastic. Katrin Molina-Besch is an Associate Pavel Komůrka is the Sustainability Helena Lindh is a Sustainability Expert Fredrik Pettersson is the Managing Senior Lecturer at the Faculty of Coordinator and in charge of package at Tetra Pak North Europe. Director of Stena Recycling. Engineering of Lund University. innovation in the Orkla Group. 28 ORKLA SWEDEN – THE PLASTIC REPORT 2021
References 1 Swedish Environmental Protection Agency http://www.naturvardsverket.se/Sa-mar-miljon/Statistik-A-O/Vaxthusgaser-utslapp-fran-el-och-fjarrvarme/ 2 Avfall Sverige https://www.sopor.nu/nyheter/fastighetsnaera-insamling-ger-baettre-sortering/ About Orkla’s Sustainability Barometer 2020: The Sustainability Barometer surveys Swedes’ views of sustainable everyday life and was conducted for the second consecutive year. Orkla’s Sustainability Barometer is based on a web-based quantitative study, which was conducted by Ipsos on behalf of Orkla in October 2020. The basis consists of 1,000 Swedish respondents who correspond to a representative selection with regard to gender, age and region. All respondents were over 18. The same study was also done in Norway, Denmark, Finland, Estonia, Latvia and Lithuania. 29
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