Show us the recyclate: PepsiCo Europe urges clearer policy on flexibles circular economy

26 Jan 2022 --- PepsiCo Europe is urging policymakers to deliver specific targets for flexible packaging to drive collection, sorting and recycling after the company proposed eliminating virgin fossil-based plastic in all of its chip packets by 2030. 

The food and beverage giant plans to use 100% recycled or renewable plastic instead, reducing greenhouse gasses from film packaging by up to 40%. Trials will commence in European markets this year.

However, PepsiCo Europe now wants to see governments impose mandatory collection and more effective flexible plastics sorting to increase recycling rates and the availability of recycled material.

PackagingInsights discusses the regulatory landscape and PepsiCo’s challenges in swapping out virgin fossil-based plastic with Archana Jagannathan, the company’s senior director for sustainable packaging.

Mandatory collection for flexibles
Silviu Popovici, PepsiCo Europe’s CEO, stressed during the chip packets announcement that the industry now needs “an appropriate regulatory landscape in place so that packaging never becomes waste.”

For Jagannathan, flexible packaging recycling should be the norm across Europe, while public policy enablers will have a vital role to play in advancing flexible packaging’s circularity.Archana Jagannathan, PepsiCo’s senior director for sustainable packaging.

“Alongside collaborating on and financing the development of effective waste collection systems in Europe through Extended Producer Responsibility, PepsiCo believes in the need for higher recycling targets for plastic overall and a specific target for flexibles to drive collection, sorting and recycling. These targets should include mandatory collection and the better sorting of flexible plastics,” she outlines.

“We also believe there should be a ban on landfill and high rates for incineration across Europe, and we want to give clear and harmonized sorting instructions to consumers. Recognition and support for a wide range of mechanical and advanced recycling technologies will also be key.”

According to the Ellen MacArthur Foundation’s latest Global Progress Report, Global Commitment signatories’ virgin plastic use “peaked” in 2021. Moreover, the report indicates that virgin plastic use will fall by almost 20% in absolute terms by 2025 compared to 2018 benchmarks.

Hot property: Recyclate
PepsiCo highlights the critical challenge in achieving its 2030 chip packets target is the low renewable and recycled plastic supply. These concerns are widespread, as recycled plastic prices skyrocket worldwide and industries fight for control over the market to boost their environmental sustainability credentials.

“This announcement is a signal to show there is demand from companies like PepsiCo for this material. We hope this will provide suppliers with the confidence to set up investment to increase the supply,” says Jagannathan.

“Once the renewable plastic is put out into the market, it needs to be recycled and become part of the circular economy. While flexible packaging can be recycled in some EU markets, we know the extent to which it’s recycled needs to be more widespread, and the value and success of effective collection and recycling of flexible packaging realized. This change is needed if we’re to shift to a circular economy.”PepsiCo Europe is transitioning its chip bags to mono-materials, increasing their recyclability.

PepsiCo Europe is moving all its bags to materials that make them easier to recycle, leveraging innovative design technology to create a simpler bag structure. The new bag designs contain greater proportions of recyclable plastics like polypropylene, commonly referred to as mono-materials.

While the company’s goal is bag-to-bag circularity, it is clear that collection, advanced sortation, and flexible film recycling to produce valuable and durable products is an important first step toward a circular future for flexible packaging, the company reiterates.

This tech or that?
Meanwhile, Jagannathan also stresses that PepsiCo Europe and the industry as a whole require clearer policies around which technologies to prioritize in the search for circular economy solutions.

“As we look to implement our ambition, we need clarity in policy, as the regulatory environment is very dynamic, and this makes it challenging to understand which are the recognized technologies we should pursue as a company,” she explains.

“Widespread infrastructure development and policy shifts are needed to give flexible packaging the chance of a new life – with the full packaging landscape working together. We are committed to investing in infrastructure to give flexible packaging the chance of a second life.”

The company is investing in schemes such as the Flexible Plastics Fund in the UK and Reflex in Poland. It is also trialing “smart” packaging on several brands in Germany and France as part of the Holy Grail 2.0 Digital Watermarks initiative and partnering with recycling companies, including Borealis and Tomra.

“While infrastructure is a critical part of achieving our ambition, so is getting to the right design for our bags. Alongside our announcement around 100% recycled or renewable plastic, we are also confirming our move to materials that will make our bags easier to recycle, leveraging design technology to create a simpler bag structure,” adds Jagannathan.

The new mono-material bags meet the design for recycling guidelines developed by the Circular Economy for Flexible Packaging, which have been agreed by stakeholders active in the flexible packaging value chain.

By Joshua Poole