Materials and the circular economy

The global economy drives a relentless demand for metals and other minerals, biomass and fossil fuels, water and land.

It’s destroying our planet: 90% of biodiversity loss, and around half of all climate change impacts, are caused by the way we extract and process natural resources. Some resources are finite, but there’s a greater risk – we are fast approaching our planet’s limits: on carbon emissions, air pollution, and the damage done to our ecosystems by chemicals and waste.

Societal and policy change, as well as business innovation, can build global systems where economic growth and human well-being are no longer so dependent on resource use.

INTRODUCING PACKAGING IQ 2.0

A new platform coming in 2024, Packaging IQ 2.0 will provide data-driven insights to optimize your portfolio’s packaging sustainability at scale.

Developed by Delterra and Systemiq, with support from the Walmart Foundation, Packaging IQ 2.0 is the next evolution of Plastic IQ, currently operating across Brazil, Indonesia and the USA. The platform aims to solve problems associated with packaging decisions by providing:

A single source of truth and decision-making framework
A built-in analytics dashboard for analysis across markets and brands
A view of the regulatory impact on packaging decisions, updated with latest legislation
Pooled data collection across several companies to reduce collection cost and increase alignment

A circular economy focuses on using less resources for meeting societal needs, regenerating natural resources to benefit businesses, communities and the environment. Smarter product design and better processes can dramatically reduce waste by using products and services more efficiently and keeping materials in use for longer.

Policy action and technical innovation can help more companies move away from ‘make-take-dispose’, and into more strategic resource management. This reduces environmental pressure, while controlling costs, reducing resource dependence, and creating economic opportunities.

The material issue: focus on plastics

Affordable and versatile, plastic has become ubiquitous: 311 million tonnes were produced in 2014. This is expected to triple by 2050. The negative impacts of the plastic system – including plastic pollution in nature and climate impacts from greenhouse gas emissions – are becoming an iconic issue worldwide.

Each year, more than 10 million tonnes of plastic escapes the current system and leaks into the ocean. Over 100 marine species have been discovered to contain microplastics, some of which end up on our plates.

But ocean plastic is not just a health or environmental issue, it’s an economic problem too. Today, 95% of plastic packaging value – or US$80-120 billion annually – is lost after first use.

This represents an enormous incentive to change the demand and supply cycle of materials. By re-designing products, business models and production processes, industries can extend product life cycles and improve resource productivity – making more using less. A circular plastics system could create more jobs, reduce environmental impacts and unlock an estimated US$700 billion in economic opportunities.

The material issue: focus on plastics

But ocean plastic is not just a health or environmental issue, it’s an economic problem too. Today, 95% of plastic packaging value – or US$80-120 billion annually – is lost after first use.

How SYSTEMIQ drives change

System change requires leadership from across the system. SYSTEMIQ and our coalition partners work across a range of industries, from metals and cement to electronics and textiles. We also work with governments and civil society to drive innovative initiatives and investment that will transform material use in the economy, with a focus on the plastics economy.

One of our frontline initiatives is Project STOP, founded by Borealis and SYSTEMIQ. It works at city level in Indonesia to eliminate leakage of plastics into the environment, increase recycling and support the wider changes required for a circular plastics economy. By working directly with communities, we ensure that we design projects appropriate to their needs and provide the right technical support to deliver them.

Our work with the Global Plastic Action Partnership, founded by the World Economic Forum, includes research, analysis and data from local, national and international levels to better understand the global flow of plastics. We advise governments on policy changes to deliver a new circular system. We identify opportunities for collaboration and engage with experts to develop, prove and scale pioneering solutions for changing these models.