Sustainability in Plastics – How Material Suppliers Work Towards Circular Supply Chain?

Corporate environmental strategies have shifted gears from a compliance adherence to a communicative stratum to champion business resilience. To portray accountability, transparency and sustainability from cradle to end-of-life of a product is not restricted to growing demands but also fitting to businesses in terms of minimizing carbon risks, improved productivity, stakeholder loyalty and financial edge.

Consequently, sustainability that was rather synonymous with the environment alone is now perceived as the go-to formula for business sustenance. Frameworks, standards and policies (EPR, GRI, SRI, etc.) fuel the said transformation with an aim to amplify the triple bottom line of social, environmental and economic impacts of businesses, by businesses and for businesses.

Nevertheless, reformative actions on sectors of energy, greenhouse gas emissions, waste treatment, etc. retain an upper hand while greening of the supply chain remains fairly unmapped. Albeit, CDP’s 2019 report indicates that supply chain emissions contribute 5.5 times more than a company’s direct operations. Additionally, sector-wise analysis depicts the massiveness of Scope 3 emissions (See figure below) accounting for as high as 60-90% in both raw materials and end products verticals.

Having said that, plastics being a dominant entity in every industrial sector, reflects a steady path towards anchorage of its supply chain. Particularly, after a slew of force majeures by polymer giants followed by deep freeze striking the Gulf Coast, the vulnerabilities of its lean, cost-optimized supply chains called for urgent redemption. As a result, material suppliers are propelled to bucket their sustainability strategies into what can be categorized as a 4C approach to circularity (See figure below).

Let’s understand the four C’s (communication, composition, contemplation and collaboration) that drive plastic suppliers towards circularity.

Communication: What Needs to be Disclosed by the Suppliers?

To willfully disclose emissions, improve energy efficiencies and establish targets towards sustainable development goals are concrete initiatives among suppliers. The infiltration of ESG demands from buyer to supplier shows potential for real-time impact and change in the chain. Accountability and transparency are traits that instill a competitive advantage for suppliers as well as providing scope for improvement. Further, certifications and labeling bracing climate action (CDP) or environmental specific declarations (EPD, ISCC) qualifies suppliers for green procurement whilst benefitting buyers to avail incentives and subsidies.

Examples:

 

1. 1. DOMO Chemicals and Covestro AG along with Circularise Plastics (a block-chain based platform for supply chain visibility) partnered to implement blockchain technology to improve traceability and transparency in plastics manufacturing.

 

1. 1. SABIC recently obtained a “B” rating on climate change from CDP. The company also reported a new target to install 4 gigawatts of renewable energy by 2025 and 12 gigawatts by 2030 to curb greenhouse emissions.

 

1. Dow’s renewable-plastics supply chain has been verified by the International Sustainability & Carbon Certification (ISCC), a rigorous auditing process that examines a product’s entire lifecycle, from a raw material supplier to production and post-processing facilities.

 

Composition: Suppliers Transit Towards Circular Economy

In terms of eco-design, sustainable materials and maximizing the use of recycled content; material suppliers illustrate the transition towards a circular economy. The majority of traffic lies in the incorporation of PCR back into the supply chain. Varying grades of PCR with diversified properties suited for a range of industrial sectors are growing substantially. Alternatively, bio-based grades for raw material production and single-use applications are being optimized.

More importantly, additives for PCR add value to buyers by enabling ease of manufacturing. To provide stability, high performance and avoid any contamination issues; PCR grades with enhanced properties are made available. On the other hand, PCR is in itself being used to produce polymer additives as well, reflecting a sign of true circularity.

Examples:

 

1. 1. Kraton’s new product line CirKular+™, multi-resin compatibilizers and performance enhancement additives for upcycling mixed and post-consumer resin. It offers excellent adhesion by minimizing phase separation of recyclates, universal compatibilization, improves impact resistance and increases end product reusability at the end of life (See figure below).
      
      Features of Kraton’s New Product Line, CirKular+™
      (Click on Image to Enlarge)

 

1. 1. SABIC launched its innovative TRUCIRCLE™ solutions, which encompasses its circular products and services, including certified circular polymers, certified bio-based renewable polymers, certified renewable polycarbonate, and mechanically recycled polymers.

 

1. 1. CAI Performance Additives has announced its solution for the bad odors which limit the use of recycled PP with an additive called LDV1035T. Effective removal of unwanted organics can be achieved, compliant with automotive industry requirements of reduced VOCs.

 

1. 1. To improve the supply chain for acrylic acid, a commodity chemical used in numerous products, from diapers to paints. Archer Daniels Midland Co. and LG Chem are developing a technology to manufacture 100% bio-based AA using ingredients from corn processing. While, Avient launched reSound™ NF, new bio-filled grades sourced from plant waste upto 15 to 20% in PP for consumer applications.

 

1. Nova Chemicals utilizes waxes derived from 100% recycled plastics. GreenMantra is an advanced recycling provider that upcycles post-consumer and post-industrial recycled plastics into specialty waxes and polymer additives that enhance asphalt, roofing and plastic products.

Related Read: Check out the latest additives improving post-consumer recycled resins »