Finance Monthly - September 2023

Additionally, a report by Omnicalculator.com concluded that plastic bags are the greenest option. In eight out of nine of their impact categories, it had the lowest impact when tested against paper and cotton. Of course, we know that single-use bags and packaging are not the solution. Keeping existing plastic materials usable in the supply chain for as long as possible – especially when considering durability and recyclability – is often the best approach. The key is to use the right materials that can be reused or recycled, whether paper or plastic, as advocated by the Ellen MacArthur Foundation, an organisation Mainetti has been a proud member of since 2021 due to their circular economy vision. Establishing which type of material is the most sustainable and meets the needs of your business is not a simple decision. We often ask where something comes from but neglect to know where it will end up. What is clear for every type of packaging is that reusing it as many times as possible reduces the environmental impact – reusing and disposing of packaging responsibly is therefore critical. The Ellen MacArthur Foundation’s circular approach to plastics is perfectly illustrated in their butterfly diagram which takes into consideration three driving principles, namely the effective use of finite resources, enhancing the utility of raw materials, and minimising waste generation. We strive to do our bit to keep materials in circulation by reusing, remanufacturing, and recycling them. Plastic recycling is changing and technology improving Plastic recycling is changing at pace. Although this is fantastic news, the increased demand for recycled plastic poses challenges as supply struggles to keep up, resulting in soaring prices. In the past, a key driver towards the use of recycled materials was the financial benefit, as they generally cost substantially less than virgin materials. This meant that manufacturers were able to improve margins whilst decreasing their use of single-use plastic. However, as prices increase, the cost of good quality recycled plastics is now similar to that of virgin. If recycled and virgin materials cost the same, the financial motivation for using recycled is diminished. One way of solving the issue of the limited supply of recycled plastic is to invest in new technology which can deliver incredible results. We have seen huge steps forward in mechanical recycling technologies that increase our ability to recover and reuse materials whilst retaining as much as possible of their value. In the past, most recycled materials had to be black or very dark in colour, but new separation and cleaning technologies mean that this is no longer a requirement. In 2021 we launched the world’s first global initiative that allows retailers to implement a closed-loop clear polythene recycling system called Polyloop. It offers fashion retailers such as Superdry a genuine circular economy solution and the ability to source clear LDPE film containing at least 30 per cent post-consumer recycled material from any of its production sites in the world. The process sees post-consumer LDPE film collected, cleaned, and processed within the UK before being distributed to Mainetti’s manufacturing sites around the world. We are also seeing exciting developments around chemical recycling where waste plastics are broken down into reusable constituent parts. These processes can be game changers in that, when combined with efficient household waste management and recycling systems, they can significantly reduce the number of materials that head for landfill or incineration. The innovation challenge Work continues at pace to develop alternative materials derived from more sustainable sources. As exciting as innovation is, scaling is never as fast as we need. Finding solutions Business 58 Finance Monthly.

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