Latest EMF global report on brand PCR progress shows 2% increase YoY

HOUSTON (ICIS)–Recently released data from the 2024 Ellen MacArthur Foundation (EMF) Global Commitment report shows brands continue to make progress against their sustainability goals, albeit at a much slower pace than required.

The Global Commitment was initiated in 2018, where both private and public entities joined as signatories, agreeing to work towards several packaging sustainability goals including virgin plastic reduction, increased use of post-consumer recycled (PCR) content, elimination of problematic packaging, increased design for circularity among packaging portfolios and increased application of reuse models across packaging and products.

Of the 140 signatories who contributed to the most recent report, 91 are packaged goods companies, packaging producers, or retailers, who account for roughly 20% of the world’s plastic packaging.

While these unified goals have demonstrated a positive model for collaboration and voluntary action, this latest report underscores the necessity of additional global policy to unify all packaging players towards a circular economy. At present, signatories are largely outperforming the remaining 80% of the market when it comes to positive sustainable actions.

As with all complex problems, it requires multiple solutions.

As stated in the report, “Regulation will not solve everything, given the highly complex nature of plastic and packaging waste. Voluntary business action will continue to play a crucial role in innovating, showing what’s possible, and creating demand for solutions”.

According to the 2023 packaging volume data, the weighted average of PCR content has increased to 14% from 12% in 2022. This is still far from the weighted average goal of 26% across the signatories by 2025.

In total, these efforts amount to over 2.5 million metric tons of PCR having been produced and used in packaging in 2023, up from roughly 2.3 million metric tons in 2023. This is in comparison to the potential demand for over 4 million metric tons of PCR if signatories were to reach their goals based on 2023 total plastic volumes.

Looking at the past several years of progress, PCR growth has seen steady 2% increases year on year, though unfortunately this pace is far behind what is needed to reach the ambitious 2025 deadline.

At this pace, signatories would collectively reach their goals in 2029, which feels particularly poignant as many individual companies have shifted their timelines from 2025 to 2030 amid growing bottom line pressure and lack of progress.

The report confirms as much, transparently stating that many signatories are likely to miss key 2025 targets.

That being said, progress is varied among players, with some much closer or already having surpassed initial PCR goals.

Per the report, cosmetic sector signatories lead with 31% PCR use on average in 2023, while food sector signatories are only at 10% on average. This could be due to the mixed regulation across the globe regarding food contact approval, as well as the different margin implications between food packaging and other consumer goods items.

Even if companies do miss their goals, EMF notes that the Global Commitment has fundamentally transformed data reporting and industry definition practices, a success in itself.

According to the report, 45% of signatories now utilize third-party data verification measures which further support data transparency and accountability.

When looking at the progress across the other main goals of the Global Commitment, virgin plastic volumes have decreased as companies make targeted efforts to reduce their footprint, though this can also be attributed lower product volumes being produced and sold in the midst of a weak macroeconomic environment as well as carry over destocking from 2023.

Unfortunately, only 32% of signatories with a virgin plastic reduction target have either achieved or are on track to meet their target.

Bear in mind, these reports publish at a delay and thus actions towards progress in 2024 have largely already taken place, or in some unfortunate cases, have not.

This comes as the United Nations Environment Assembly (UNEA) wraps up the fifth and last Intergovernmental Negotiation Committee (INC-5) at the end of the month, with the hopes of having a global treaty on plastic pollution by the end of the year.

It remains to be seen how signatories will pursue a final push towards these goals in 2025, amid an uncertain regulatory and economic global environment.

Additional reporting by Corbin Olson