Packaging: on the way to a closed circular economy

You can find the original article here in German language. 

The concept of waste

What was previously considered waste could actually be the key to successful business models for a functioning circular economy. In a world where resources are becoming increasingly scarce and pressure on the environment is growing, we need to fundamentally rethink our understanding of waste. Waste must be seen as a valuable resource that needs to be utilised and recycled.

From ego to ecosystem 

In the 1960s and early 1970s, the economy and society were characterised by the need to consume. This is what kept the economy going. It was the age of the consumer. “Planned obsolescence”, the built-in expiry date of products – an invention by Alfred Sloan at General Motors – become a public issue. After all, if products lasted too long, people wouldn’t consume more. The consequences of this development still concern society and, above all, the planet today. 

This is why there is a paradigm shift from a linear “take-make-use-dispose economy” to a circular economy in which products and materials are continuously reused, recycled and regenerated. This is not about a battle between plastic and non-plastic packaging, but about sustainable or unsustainable packaging based on materials that remain in circulation for as long as possible. And it's about understanding the circular economy as a business case. 

If you ask ten people about their understanding of the circular economy, you will probably get ten different answers - depending on the industry, role and position in the value chain. 

The circular economy must focus on the needs of society and look for ways to meet these needs by optimising the use of resources. For us as a packaging manufacturer, this means that we give the packaging a second life!

Thomas Ott, CEO Mondi Flexible Packaging 

The prerequisites for a functioning circular economy are: 

1. The circular economy must have value: 

We need to promote the concept of value of waste as a business model at every stage of the value chain. This requires us to move away from purely linear actions and think “in terms of the system”. Mondi, for example, is working on building systems that focus on the recovery of fibre material. 

2. Collaboration and dialogue: 

A sustainable circular economy requires collaboration across company boundaries. Collaboration between manufacturers, suppliers, consumers and policy makers is the new normal. This is the only way to develop solutions that harmonise ecological and economic interests. 

Consumers are also facing new challenges. As companies and governments take action to promote more sustainable packaging solutions, they are confronted with a multitude of labels and seals designed to help them recognise sustainable products. However, the complexity and inconsistency of these labels can cause confusion and limit consumers' willingness to make sustainable purchasing decisions. Therefore, businesses, governments and consumer organisations need to work together and maintain an ongoing dialogue to ensure clear and consistent communication and facilitate the transition to a truly circular economy. 

3. Innovation and research: 

Innovation instead of (just) optimisation: in collaboration with research institutions and in our own laboratories, we continuously invest in innovative solutions for sustainable packaging. From biodegradable materials to new recycling methods and resource-saving production processes: It's all about pushing the boundaries of what is possible. The focus is always on the actual task of packaging – product protection! For example, 97 per cent of the climate impact lies in the product and only three per cent in the packaging1. It is crucial that the material is reusable, recyclable or compostable. One example is the paper bags for dishwasher tablets developed by Mondi for Reckitt Benckiser, which are coated with a plastic film so thin that they can be disposed of in wastepaper systems.  

The Mondi Action Plan 2030 (MAP2030) 

At Mondi, we are committed to setting and achieving sustainability targets. Our Mondi Action Plan 2030 (MAP2030) sustainability framework highlights our key commitments for the next decade. By collaborating with our stakeholders, we address risks, seize opportunities, and steer more sustainable decision-making. We believe that only through this collaborative spirit can we create the significant impact needed for positive, large-scale change. 

This framework sets out the measures to achieve our ambitious sustainability goals by 2030. We are focussing on three core topics: circular driven solutions, created by empowered people, taking action on climate. All three areas are aligned with the UN Sustainable Development Goals. This enables us to have the most positive impact through our business.

Growth with responsibility 

The circular economy is a key focus for Mondi as a packaging and paper manufacturer, addressing sustainability, economic and social challenges. Critical factors such as advanced recycling technologies, material innovations, consumer awareness, and evolving regulations will shape the transition to a circular economy. By leveraging sustainability as a competitive advantage and interpreting regulations to facilitate economic transformation, Mondi creates long-term value for society, the planet, and the economy.