Sarah is currently employed in the retail industry. We will guide you through the challenges that Sarah is facing today and in the near future. ↓
This sector finds its origin in the linear, capitalistic economy where consumption or acquisition of goods and services in a never-ending cycle is encouraged and goods at their end-life are thrown away. The fast-changing nature of demand in the sector means products meet a premature shelf-life, generating an ever-accumulating waste amount that grows beyond landfill sites and into ecosystems.
DID YOU KNOW ?
“On average, each person generates half a kilogram of packaging waste every day”.
“Packaging makes up 40% of plastics and 50% of paper used in the EU”.
“Only 1% of resources used during manufacturing are still in use six months after the product is sold.”
“The EU’s proposed measures would reduce greenhouse gas emissions from packaging by approximately the total annual emissions of Croatia, by 2030.”
“Every year, 150 billion pieces of clothing are produced but never make it to stores and end up in landfills instead of being recycled” .
CLIMATE CHANGE CONSEQUENCES ↓
The impact on GHG emissions is high due to the industry’s worldwide supply chain and distribution. In addition, these products are often characterised using single-use plastic packaging. Both the excessive packaging and short shelf life contribute to an increasing waste pile. When consumers are tired of these products and/or new trends arise, these goods are easily replaced and end up in landfills. The increasing success of e-commerce, which makes goods online available to everyone, everywhere and at any time, increases this trend even more.
Sadly, the apparel industry is currently the second most polluting economy globally, after the oil industry. In 2015, the production of textiles alone generated 1.2 billion tons of greenhouse gas emissions annually, which is more than the combined impact of all international flights and maritime shipping.
In 2015, the production of textiles alone generated 1.2 billion tons of greenhouse gas emissions annually, which is more than the combined impact of all international flights and maritime shipping.
Our mass consumption culture and the fast fashion phenomenon have a significant impact on this pollution. Fast fashion refers to the production of inexpensive clothing that is intended to be worn only a limited number of times and moves away from the traditional four seasons.
The Fast-moving consumer goods (FMCG) industry will be impacted by the shortage of raw materials and the total supply chain will be disrupted. As a result, it will be impossible to fulfil consumers’ demands and price volatility will emerge.
Apart from the physical impact of climate change, FMCG companies are also impacted by the consumer’s awareness of climate change. Consumer preference is shifting and as a result, the demand for more sustainable products is rising and non-durable products are threatened.
GREEN DEAL ↓
The EU Green Deal
The EU has introduced a new growth strategy called the European Green Deal in order to address the current environmental changes. This strategy aims to achieve a climate-neutral Europe by 2050 and zero net emissions of GHG. The Green Deal comprises of 8 policy areas that outline plans for all sectors and industries.
Consumption > Mobilising industry for a clean and circular economy
A Circular Economy is an industrial system where the starting point is the reusability of products and raw materials, and the regenerative capacity of natural resources. This circular economy calls for the adoption of a sustainable product policy. It aims to minimize value destruction and pursue value creation in the total value chain. Waste is reduced and recycling is increased. This policy provides the switch to a green and circular design and production process. This ensures that the materials stay in the economy for as long as possible, the pressure on natural resources is reduced and pollution is minimized.
More specifically this plan calls for:
Addressing the so-called twin challenges of green and digital transformation: digital transformation needs to be leveraged to enable the green transition
Designing a sustainable product policy focused on the reduction and reuse of materials before the recycling
Measures to encourage consumers to choose reusable, durable, and repairable products. This includes the provision of verifiable information
The use of sustainable resources
Developing strategic partnerships in the value chain
GOOD EXAMPLES ↓
PepsiCo Labs has chosen several European start-ups with sustainable innovations to invest in and expand operations in Turkey, Belgium, and Portugal. These pilot projects focus on supply chain sustainability and include a physical and digital tracking blockchain system developed by start-ups to sort and recycle waste. In addition to this, bio-based thermoplastic is being created from household waste such as unrecyclable plastics and organics. The projects also involve the operations of FMCG factories, with start-up Elateq's electrochemical wastewater treatment being tested in Belgium to encourage circular water systems in PepsiCo factories, thereby reducing emissions.
Green transition - EU
Pepsico Labs
B'zeos is a green tech company that produces eco-friendly alternatives to single-use plastic packaging. They use seaweed extract to create compostable food films and straws, which are used in various industries such as food & beverage, electronics, cosmetics, and pharmaceuticals. The company only works with seaweed cultivators who practice sustainable and ethical methods. B'zeos has partnered with Nestlé and was awarded the EU's 'PlastiSea' grant to improve the development of bioplastic materials.
Green transition - Norway
B’zeos
The company has tackled the problem of unsustainable packaging in the Fast-Moving Consumer Goods industry by creating a portfolio of sustainable packaging solutions that can be used in various sectors. One such product is the GreeNest egg tray, which is made from grass fibres and has been adopted by leading European supermarkets like Albert Heijn. These sustainable packaging solutions also help to decrease factory emissions, with GreeNest reducing water usage during production by 50% compared to similar packaging alternatives.
Green transition - Finland
Huhtamäki Oyj
FUNDING ↓
European Union's EU Framework Programme for Research and Innovation Horizon
The Horizon Europe program is a key source of funding for research and innovation within the EU. It focuses on R&D initiatives that aim to achieve policies aligned with the GND and SDGs.
Legal entities within the EU and associated members are eligible to apply for funding and the program encourages the formation of industry-changing partnerships.
Furthermore, the program has reserved 70% of its budget for SMEs with disruptive innovations that have scale-up potential. This ensures that funding is available for activities that private investors may consider too risky.
Currently, Horizon Europe is seeking projects that offer strategies to prevent and reduce plastic packaging pollution from the food system. Find out more.
JUST TRANSITION
Discover which actions you can undertake ↓
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Unfortunately, certain FMCG factories still engage in inhumane and hazardous labour practices. It is crucial to establish social dialogue to address the current needs of these workers. Additionally, the upcoming green transition will further intensify the pressure on this industry.
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When transitioning to a more circular approach, the nature of jobs will change. It is important to minimize job losses and provide assistance to workers for a smooth transition. Additionally, it is crucial to maintain the quality of jobs.
Unsafe and inhumane practices are still prevalent in factories that produce fast-moving consumer goods, including fashion, food, tobacco, and electronics. This is unacceptable, and a high demand cannot be an excuse for not providing safe and liveable working conditions.
As a result, there should be a greater focus on providing basic labour rights and social protection systems in this sector. Such support will be invaluable during the transition.
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From 2012 to 2018, the number of jobs related to the circular economy increased by 5%. The circular economy is known to require more labour and skill, particularly in areas such as research and development, product design, and engineering. As a result, it is crucial to have highly skilled individuals to work in these fields. However, the shift towards a circular economy is also expected to bring more entry-level and semi-skilled job opportunities to local communities. Overall, the circular economy is expected to have a positive impact on employment opportunities.
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As production technologies evolve and digital technologies become more prevalent, workers will need to acquire new skills. White-collar employees will need to retrain to incorporate circular methods in engineering and product design, while blue-collar workers will need to be reskilled to handle the latest production technologies.
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The circular economy can benefit from technology by enhancing customer relationships and enabling mass customization. Digital tools such as the internet of things, big data, AI, and blockchain can accelerate circularity and reduce reliance on primary materials by tracking and mapping resources. Additionally, waste management, recycling, and circular production technologies will be implemented, such as producing bioplastics from sludge.
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The transition to a circular FMCG industry should be advantageous for all workers. This new economy is projected to generate local job opportunities for people with various educational backgrounds.
Despite the fact that inhumane practices in this sector are often thought to only occur outside of Europe, they do happen within Europe too, even when European companies outsource their production. This means that they are responsible for the working conditions of their employees regardless of location. As a result, the green transition should also benefit workers in hazardous conditions outside of Europe.
Reducing the waste related to the production of fast-moving consumer goods.
Making the production in this sector circular.
Increasing renewable energy sources as energy providers for manufacturing plants.
Increasing material efficiency.
Informing people and persuading them to adopt more conscious and sustainable consumption patterns.
GREEN TRANSITION
Discover which actions you can undertake ↓
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The EU has proposed revised legislation that aims to ban unnecessary packaging. This will affect various stakeholders, including restaurants and cafes that use single-use food and beverage packaging, grocers and supermarkets that use single-use packaging for fruits and vegetables, and hotels that use toiletries packaging. All businesses will need to adjust and comply with these changes, which highlights the importance of incorporating sustainable packaging as early as possible.
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Examples:
Utilising sustainably sourced biomass to create biobased plastics
Circular Production Systems