Circular Economy

Yes, It’s Complex – but a Circular Economy Is Achievable

We continue to go round and round about shifting to a circular economy — discussions throughout the week at SB’24 San Diego helped provide brands much-needed clarity about the ways forward.

By Tom Idle and Hannah Zimmerman | Published 1 month ago | About a 9 minute read

Image: Aora Mexico

Awareness of the need for us to transition to a circular economy from our current, linear one for the long-term livability of our planet has grown — but the practicalities of such a massive shift are a cause for consternation for many organizations.

How to move from theory to practice has been explored throughout the week here at SB’24 San Diego — and a Monday afternoon workshop showcased the value of circular certification and examples of how brands have turned theory into action.

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Aora Mexico has engineered 100% plastic-free packaging, with recyclable and biodegradable components | Image credit: Aora Mexico

Moderator Ren DeCherney, Global Lead for Built Environment at the Cradle to Cradle Products Innovation Institute, underlined the importance of third-party verification and certification in offering brands an “actual path from linear to circular — through sourcing, design and systems,” The Cradle to Cradle Certified Product Standard enables companies to take measurable steps, from silver to gold to platinum, DeCherney explained. It’s a framework that encourages brands to ask themselves fundamental questions about their products — including what source materials are being used, whether they are safe, whether they can be recycled, and whether the infrastructure exists to recycle, reuse or repurpose at their end of life.

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Panelist William Paddock is a self-described “sherpa” helping companies navigate circular certification with WAP Sustainability Consulting. He warned that while certification can add brand value, its important brands know how to use it. “Just because you have the tools doesn’t mean you know what to do with them,” he said. “It’s important to find ways to communicate with key customers and get the credit; that’s where the return on investment starts to stack up.”

While achieving a circular economy can be complex, the panelists were keen to show that ‘going circular’ can also be fun — even beautiful. Nour Tayara, CEO and co-founder of beauty brand Aora Mexico, is proud to be shaking up a sector which is as difficult as any to transform. Most products contain multiple materials all glued together, making it impossible to recycle them.

“Most beauty brands believe that black plastic is chic! But it’s not recyclable,” he pointed out. “And most products, like lipsticks, are so small they can’t be recycled either.”

By making use of recycled aluminum, the company has created a truly circular lipstick holder and makeup palette — both of which can be recycled after use. The materials might end up being recycled into more Aora products or into soft drink cans. Aora products were sent around the room for delegates to hold, touch and feel.

“People don’t pay more for sustainable products, especially in the beauty industry,” Tayara added. “It’s an impulse purchase. And nobody will buy something if there’s a big compromise. So many manufacturers put the responsibility [for recycling] on to the consumer. But we’ve taken the responsibility away. We’ve made it easy.”

Next up, Rachel Palopoli — Director of Circular Economy at Tarkett — explained how the carpet manufacturer is taking responsibility for the waste it creates through circularity. By 2030, the business is set to increase the amount of recycled content in its products by 30 percent. In addition to carpet, Tarkett also uses wool and linoleum.

“We must consider the end of life of everything we make. Product by product, we are trying to figure it all out,” Palopoli shared.

She gave an example of how her company figured out how to repurpose the plastic safety film on auto windscreens, which becomes waste, into part of the plastic backing on its carpets. She also excitedly explained the partnership Tarkett has entered into with Mycocycle, a biotech startup that leverages the root structure of mushrooms to break down construction waste. In joining forces, the two get to leverage Tarkett’s well-established ReStart take-back and recycling program as they operationalize alternative waste-handling processes that keep materials from old flooring in the product stream.

James Fountain’s company is not only putting industrial waste materials – it’s adding value to a much less talked about waste stream: fish blood. Salmonics turns the thousands of liters of fish blood otherwise discarded as waste in aquaculture into fish-derived plasma proteins and reagents for research and development. Fountain agreed that achieving success in circularity remains tough.

“It’s not enough to find a solution,” he said. “It’s also about managing change. Fundamentally, sustainability is about managing the emotions associated with any change. We often forget that.”

At Salmonics, explaining to farmers that purchasing their waste is a revenue generator — and explaining the process through the lens of how it will impact them — has been key to success.

For Paddock, he reminds brands to ensure their thesis on circular products holds true before moving forward.

“I worked with a company that wanted to use plastic scraps, grind them up and use them as aggregate in concrete,” he explained. “But it didn’t hold up. The carbon footprint of the process was a lot higher, and it would have massively screwed up the concrete recycling supply chain.

“When it comes to achieving circularity, what might seem good in principle isn’t necessarily so in reality,” he added. “It’s down to sustainability teams to get their ducks in a row.”

Check out more highlights from throughout the week at SB’24 San Diego!

How brands are navigating the patchwork of EPR regulations

Image credit: Packaging Digest/Alyssa Ventrella

Meanwhile, Extended Producer Responsibility (EPR) — a policy approach that shifts the financial and operational responsibility of managing waste, specifically packaging, from consumers and municipalities to the producers themselves — is on many companies’ minds as a patchwork of regulation pops up around the world. With deadlines to report on the horizon and more questions than answers regarding requirements, many brands are feeling rightfully anxious about what is to come.

A Tuesday afternoon panel discussed navigating EPR laws from the producer's perspective. While many countries — including Canada and many in the EU — have embraced EPR programs, the US is still catching up: Only five states — California, Colorado, Maine, Minnesota and Oregon —currently have EPR laws on the books, and they are all over the map in more ways than one.

“Unfortunately, none of these laws have the exact same definition of producer or covered materials,” said Olivia Barker, Stakeholder Engagement and Communications Director at the Circular Action Alliance (CAA). “So, CAA has really been working to create as much clarity and get consistency where there is opportunity with the regulatory agencies.”

The complexity of implementing EPR programs for packaging lies in the diversity of materials used, which makes determining responsibility and managing recycling processes challenging.

“What is considered sustainable is not always considered compliant,” explained Jamie Simon, Director of Sustainability at Clearyst. “Things are changing, and it's not intuitive.”

While there is no uniform definition across states as to who qualifies as a producer, it typically refers to the entity that controls the product’s manufacturing — even if they partner with a supplier. If a brand owner cannot be identified, the responsibility falls to the licensee or — in the case of imported goods — the first importer.

EPR programs collect fees from producers based on how much and what type of packaging they put into the market. These fees fund the collection, sorting and processing of recyclable packaging materials. Incentives such as eco-modulation reduce fees for companies that use more sustainable materials — such as post-consumer recycled content — and penalize those using materials that are difficult to recycle.

A central feature of all EPR laws is establishing a Producer Responsibility Organization (PRO), a non-profit entity that manages the responsibilities on behalf of producers. The PRO oversees registering producers, collecting data, setting and invoicing fees, and distributing funds to improve recycling infrastructure. CAA has been approved as the sole PRO in California and Colorado, and is preparing to be the PRO in Oregon — working to harmonize reporting and compliance across multiple states.

One of the most complex aspects of EPR in the US is the state-specific differences in laws. Each state defines what constitutes packaging and recyclable materials slightly differently, with California having the most stringent requirements. For instance, by 2032, all packaging in California must be 100 percent recyclable or compostable; and producers must reduce plastic packaging by 25 percent. Additionally, California's EPR law mandates a $500 million fund over ten years for pollution mitigation and conservation efforts.

“We are letting California lead the conversation, because they are most stringent,” said Julia Craighill, Senior Consultant at Clearyst.

Service providers such as Clearyst help producers carefully manage their packaging lines to comply with EPR regulations. This includes understanding the components of the current packaging, redesigning packaging to be more recyclable, and tracking the weight and material composition of each component. The process requires significant internal coordination, often involving creating task forces and working closely with supply chains to meet state-specific requirements.

Looking ahead, EPR regulations are likely to evolve — with some states adjusting their criteria for recyclable materials over time. As producers adapt, they must consider the broader cost implications of EPR — including changes to processes, transportation and design fees. The transition to sustainable packaging can take years, requiring companies to invest in innovation and build partnerships to navigate the changing landscape effectively.

Tom Idle

Content creator extraordinaire.

Tom is founder of storytelling strategy firm Narrative Matters — which helps organizations develop content that truly engages audiences around issues of global social, environmental and economic importance. He also provides strategic editorial insight and support to help organisations – from large corporates, to NGOs – build content strategies that focus on editorial that is accessible, shareable, intelligent and conversation-driving.

Hannah Zimmerman

Impact Manager, Purpose + Sustainability

Formerly working in the advertising world in Kansas City, Hannah Zimmerman has now married her past experience with her passion for sustainability. When she isn't chasing her four-year-old daughter or helping companies along on their sustainability journey through consulting, reporting, communications and certifications, she is working on her master's in Sustainability through Harvard.

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Circular Action Alliance