Materials & Packaging
erthos:
Giving the Plastics Industry an AI-Driven, Biobased Upgrade

The Toronto-based startup creates high-performance biomaterials that seamlessly integrate into manufacturing systems and supply chains five times faster than industry standard — eliminating a barrier to widespread adoption.

By Scarlett Buckley | Published 1 month ago | About a 6 minute read

Image: erthos and AB InBev developed the world's first 100% compostable keg cap | erthos

Plastic is both a versatile wonder material and one of our most prolific environmental pollutants — but what if we could redefine it?

To do so would require creating sustainable, scalable replacements for its harmful components. Conventional, petroleum-based plastics have left a persistent and pervasive mark on every corner of the globe — even contaminating our air and water. Throughout the years, our use of plastic has skyrocketed, with over 350 million tons produced annually — a figure projected to triple by 2060, unless we change course.

Biomaterials — derived from regenerative sources, and often recyclable and/or compostable at end of life — offer a superior alternative; yet, despite their increasing availability, they constitute less than 0.5 percent of annual plastic production. More and more companies understand the need to embrace sustainable alternatives to mitigate plastic pollution; however, the journey to widespread adoption can often be fraught with challenges — both real and perceived — in performance, cost and scalability within supply chains.

erthos®

Toronto-based climate-tech startup erthos isn't on a mission to eliminate plastics entirely. Instead, it is working to provide naturally derived resins that match the performance of traditional plastics.

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Founded in 2018 by Nuha Siddiqui, Kritika Tyagi and Chang Dong at the University of Toronto — while the three were studying Chemical Engineering, Environmental Economics and Plant Biology, respectively — erthos emerged from a visionary collaboration bridging the co-founders’ pursuits.

"The more I learned about the adverse effects of traditional plastics, the more I felt compelled to find a solution,” Siddiqui tells Sustainable Brands®. “Early on, we spent a lot of our time on the ground with plastic manufacturers in Asia and discovered that adopting sustainable materials was challenging due to the lack of compatibility to existing systems. It dawned on me that the key was to create better materials without disrupting existing supply chains. From that moment forward, our mission was clear."

Since its inception, erthos has grown to become a leader in biomaterial innovation; its database now features hundreds of ingredients made from agricultural feedstocks including fibers, starches and oils. From these materials, the company designs products for clients to meet all kinds of environmental and performance requirements — including end-of-life considerations such as recyclability and compostability.

“When we think about designing and sourcing our biomaterial ingredients, we take a holistic approach — from carbon footprint to lifecycle analysis. We source our feedstocks directly from suppliers — maintaining close relationships to understand each ingredient's viability to replace traditional plastic ingredients, including pricing,” Siddiqui explains. "We focus on the ingredients that make up plastics — understanding that to create sustainable materials, we must replace the harmful components. This approach is at the heart of our innovation and positions us at the center of next-gen material solutions."

erthos Studio

erthos’ proprietary AI-ML platform, ZYA™ — integrated into erthos Studio — uses predictive modeling, material science and biobased ingredients to fast-track the R&D process for brands transitioning to biomaterials, increasing speed-to-market fivefold and reducing costs by 92 percent. Siddiqui says ZYA efficiently iterates formulations optimized for specific performance and sustainability metrics — tailoring solutions for diverse applications from durable shampoo bottles to flexible, compostable packaging.

“By unlocking new formulations rapidly, a process that traditionally would have taken years and significant investment, we integrate seamlessly into brand supply chains,” Siddiqui says. “This achievement is the culmination of years of R&D and scientific breakthroughs, merging digital and real-world science."

The process

erthos starts with precise design targets — cost-effectiveness, environmental footprint, compliance and performance — collaborating with brand partners to align specific metrics across these dimensions. Using ZYA and a comprehensive database of ingredients, erthos swiftly generates optimized formulations that meet targets efficiently — accelerating from conceptualization to scale-up; this iterative process typically spans three to six months. It facilitates the rapid development of viable materials for real-world trials, accelerating material discovery and supporting clients in achieving sustainability objectives — a holistic approach that minimizes risks associated with new material launches.

"We are bridging different parts of our value chain together, sitting at the intersection of AI and next-generation materials — which are designed for very specific sustainability and performance requirements and act as one-for-one replacements to their plastic counterparts," Siddiqui explains.

After developing the desired materials, erthos allows its clients to license and integrate them into their supply chains. Companies can maintain ownership and scale across regions by directly licensing the custom biomaterials or enabling their manufacturers to do so. This flexible approach ensures that each brand can choose the option that best fits its operational needs and growth strategies.

erthos's client-engagement model ensures active participation throughout the materials-development process. The company collaborates closely with clients, offering full visibility into ingredients and formulations designed to meet specific needs.

“We work directly with brands to support their sustainability goals by designing materials tailored to [those] targets and the SDGs," Siddiqui explains. "Integrating internal sustainability metrics into our design guidelines, we collaborate across sustainability, R&D and new product teams to ensure materials are sustainable, functional and compliant.”

Changing the paradigm

erthos aims to dispel skepticism regarding barriers to biomaterial adoption with its data-driven approach to fast-tracking development of high-performance, biobased ingredients; the company hopes to inspire a paradigm shift where brands trust and seamlessly integrate these materials into their supply chains.

“It’s been energizing to see the response. Many of the brands we're working with have been on this journey for years — struggling to find a scalable, sustainable solution to their plastic needs. Partnering with them to design the right material for their supply chain allows us to truly maximize the success rates of these technologies,” Siddiqui explains.

In 2020, erthos was selected for the second cohort of AB InBev's 100+ Accelerator — the result: the world’s first 100 percent compostable keg cap — which they say has reduced CO2 by 5.2 million kg, saved 150 liters of water and diverted 3,000 tonnes of plastic (equivalent to 350 million plastic bottles). Six-pack rings made from the material are in development.

erthos continues its upward trajectory — in 2023, Siddiqui and Tyagi (Dong left the company in 2022) were featured in Forbes’ 30 Under 30 for Social Impact; and its oversubscribed $6.5M Series A financing round closed at $11.2M.

“We envision a future where sustainable materials are not the exception but the norm,” Siddiqui asserts. “With AI-powered biomaterials, we aim to inspire systemic change in global supply chains and significantly increase the adoption of sustainable materials in the industry — shifting our global dependency away from traditional plastics.”