Berry Global’s website seems to be all about sustainability. When did that become a central focus for your company and why?
Sustainability has been an underlying theme at Berry Global for many years, particularly given the company’s history in the plastics industry. The pivotal moment, however, occurred around 2017 when Tom Salmon became the CEO and initiated a comprehensive rebranding from Berry Plastics to Berry Global. Two major objectives underpinned this transformation: globalizing the company and transitioning from a plastic-centric business to a solutions-oriented enterprise.
Tom’s vision drove the establishment of our first sustainability teams in early 2018. These teams were instrumental in outlining our Impact 2025 Sustainability Strategy, a plan unveiled in 2019 following intensive research and development. This strategy marked a committed departure from being solely a plastic product provider, broadening our horizon to incorporate an array of materials, including renewable options, in our solutions portfolio. This broader perspective was not merely a nominal change but reflected a substantial shift in our operational ethos.
How has Berry Global adapted its approach to materials and packaging to meet its sustainability goals?
We are committed to ensuring 100% of our packaging is reusable, recyclable, or compostable by 2025. Currently, we are at 79% of this goal, continuously innovating and collaborating with customers to transition more products into the sustainable category. However, some areas, like barrier packaging, which requires specific materials to maintain the quality of the food products inside, remain a challenge.
We are investing in research and technology to overcome these hurdles. By working with our customers and suppliers, we are exploring alternative materials and chemistries that can replace less sustainable options without compromising the product's integrity. We recognize that striking a balance is crucial – reducing plastic usage without causing an increase in food waste and subsequent greenhouse gas emissions, for instance.
How does Berry Global handle the recycling and reusability aspect of its products, especially in the case of widely used items like McDonald's packaging?
The recycling infrastructure for plastics is a work in progress, lagging behind more established systems for materials like glass, paper, and aluminum. The primary challenge lies in creating value for plastic waste to encourage collection and recycling. There is a pressing need for a multi-faceted approach involving governmental support, consumer education, and innovations in recycling technology to address this issue effectively.
Berry Global has been proactive in developing technologies to facilitate plastic recycling. We have invested in a new facility in the UK equipped with Clean Stream technology to recycle rigid polypropylene containers into food-grade material. We are also exploring bio-based products and collaborating with suppliers and partners to advance recycling technologies that can effectively integrate recycled materials into new products.
What are your projections for the future of packaging materials and their sources, considering the ongoing innovations and environmental concerns?
In the coming decades, I envision a significant transformation in the source of materials for packaging. Approximately 50% is likely to be derived from recycled plastics, coupled with a substantial contribution from bio-based resources, reducing the dependence on fossil fuels.
The versatility of carbon chains offers immense opportunities for innovation, as they can be sourced from a variety of materials including ethanol, soy, and cooking oil.
The shift towards electric vehicles will also free up ethanol currently used in fuels, presenting another source for bio-based plastics. The key to rapid progress in these areas lies in assigning value to waste, fostering a recycling ecosystem that is both economically viable and environmentally beneficial. We are optimistic about the future, as both the industry and consumers are showing a growing willingness to invest in sustainable practices and technologies.
What challenges are currently facing the proliferation of plastics produced from biofuels?
The proliferation of plastics derived from biofuels is primarily hampered by their higher cost and a lack of regulatory clarity. These bio-based technologies are relatively more expensive than mechanical recycling methods and virgin resin. Companies are hesitant to make substantial investments without certainty about the direction of government regulations and policies. There is a concern about investing in a particular technology only for it to potentially become obsolete due to changes in regulatory landscapes.
Consumer willingness to pay for these innovations is also a topic of debate, although our experience shows a positive trend. When we established our 2019 sustainability goals, it was partly a leap of faith, as technologies were not yet mature and consumer willingness to pay was uncertain. However, the increasing premiums paid by consumers and our company to our suppliers indicate growing demand and value for these sustainable options.
How do regulatory environments in different countries affect your efforts in recycling and sustainability?
The regulatory environment plays a crucial role in driving investments in recycling and sustainability. In the UK, for instance, the imposition of a 200 euro per ton tax on non-recycled materials has effectively created value for waste, incentivizing investments in recycling. This tax has prompted companies and consumers alike to lean towards the use of recycled materials to avoid additional costs.
However, whether these funds will be allocated to developing necessary recycling infrastructures remains a question. The key lies in long-term contracts and collaborations across the supply chain, ensuring stability and return on investments for all parties involved. Regulatory clarity and incentives like in the UK can significantly accelerate the global shift towards a more circular economy.
Could you elaborate on the importance of collaboration over competition in advancing sustainability, drawing from your partnership with ACCIONA?
Our partnership with ACCIONA exemplifies the significant role of collaboration in enhancing sustainability. We first partnered with them in Spain, transitioning 70% of our power requirements to renewable sources. The success of this project facilitated a similar initiative in Mexico, underscoring the benefits of cross-regional collaborations. These partnerships require mutual efforts to overcome legal and infrastructural challenges and assure investment safety through extended contracts.
The cross-sectoral collaborations we are witnessing instill hope that significant strides will be made in addressing environmental issues. Our collaborative efforts are not limited by borders; for instance, a project initiated in Europe can inspire and be replicated in North America. Such global collaborations allow us to exchange knowledge, technologies, and resources, enhancing our collective capacity to address sustainability challenges.
We are not just sharing insights with competitors but also fostering partnerships across different sectors of the industry. These efforts underscore a broader commitment to environmental sustainability that transcends competitive boundaries. The open exchange of ideas and technologies, supported by a shared commitment to sustainability, augments our optimism about overcoming current and future environmental challenges.
