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 ↓

  • 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 ↓

QUIZ ↓