14 Jun 2019 --- There are several avenues that need to be further developed before a true circular economy for packaging materials can be achieved. This includes creating a consistent market for recycled content and strengthening the UK’s collection infrastructure. This is according to Mike Jackson, Managing Director of Prismm Environmental, who spoke to PackagingInsights about the waste-management company’s vision for UK sustainability and its April 2019 acquisition by Reconomy, a provider of outsourced waste management and recycling services.
The waste management sector has seen a robust level of M&A activity in the past few years. The number of deals involving recycling companies, for example, increased by 50 percent in 2017 when compared to 2016 rates. This is according to a Grant Thornton UK LLP report, “Annual Waste and Resource Management Review,” which noted that the increase mirrors the intensified focus by governments on a circular economy.
In line with busy M&A activity, Prismm has joined the Reconomy Group to provide consultancy, waste management and compliance services – specializing in the output from UK factories and materials that are particularly difficult to recycle. Prismm aims to achieve zero to landfill for clients, primarily in the printing and packaging industries.
Mike Jackson, Managing Director of Prismm Environmental.
The move marked the fourth business acquisition by Reconomy in a little over 12 months, following that of Waste Check, Helistrat and Valpak in 2018. By continuing to combine strategic acquisition and organic business growth, the Reconomy Group’s combined revenue for the end of 2019 is forecast to exceed £260 million (US$330 million).
The acquisition will help boost the business of Prismm, largely due to synergies in terms of working with the wider supply chain at different points, as well as the purchasing power of the group, Jackson explains.
Under plastics pressure
As the plastic debate heats up, waste-management companies are increasingly coming to the fore as key players in crafting a more sustainable future.
Jackson notes that this increasing pressure comes in various forms, and is to be met with various solutions. “One of the main challenges facing the industry is finding a consistent customer base for recycled plastic pellet. For a while, recycled material was costing more than virgin material, and manufacturers had to decide between sustainability and economics.” However, this appears to have stabilized recently. He further notes that measures that will promote minimum levels of recycled content are bound to help create that consistency in the market.
Such measures are soon to be a reality for the industry, as the European Parliament has voted to approve a sweeping ban – The Single Use Plastics Directive (SUDP) – of the ten single-use plastics that are most commonly found on European beaches, as well as abandoned fishing gear and oxo-degradable plastics – materials that contribute to microplastic pollution.
Significantly, this move sets a target for 25 percent of recycled plastic in PET bottles from 2025 and 30 percent in all plastic bottles from 2030, as well as member states having to ensure that 90 percent of plastic bottles are collected by 2029.
Responding to the ban, the beverage industry has indicated that it will only be able to meet its obligations if there is a sufficient, continuous supply of high-quality recycled materials that are suitable for use in contact with food. This is according to a FoodDrinkEurope spokesperson, speaking with PackagingInsights at the time. Regarding collection targets, high-quality facilities and technologies will also be needed.
Commodifying waste?
A second substantial challenge facing the waste industry is China’s – as well as other nations in the global south – restrictions on waste importation. Although plastics were entirely banned, the quotas for paper imports were only reduced. This, notes Jackson, could continue to be an opportunity for the UK.
A substantial challenge facing the waste industry is China’s restrictions on waste importation.
“As long as we provide these back as a high-quality commodity, countries should accept that they produced them in the first place and also have a responsibility to recycle them,” he explains.
Enabling this step also requires manufacturers to design materials with recycling in mind. “We already see an increase in enquiries from companies at the product design stage of production so that the most cost-effective recycling options can be integrated into products before they are manufactured,” he explains.
Furthermore, Jackson notes that major corporations need to rethink their business models so that collection becomes a centralized activity. “This means considering how it will be most efficiently collected but then designed for recycling so they can get back into circular use.”
In this way, we could have a truly circular economy for packaging materials, he adds.
On a concluding note, Jackson iterates that no matter how much plastic packaging is made fully recyclable, it will not stop people from throwing it on the floor and littering. This, he notes, is where plastic loses the argument as it does not decompose. Such behavior further underscores the need for better collection, such as a deposit-return scheme (DRS), which could help to ensure that consumers have spots to drop their litter, as well as creating value for collecting post-consumer waste.
By Laxmi Haigh
