Why Recycling is the new Moisturising.

19 Oct

Of all the business workings you must archive and report, ‘waste’ is probably the least appetising. Trying to tot up the margin of product that fell off the production line, the bits you’d like to pick back up off the scrapheap… it’s not an auditor’s most exciting way to spend a day.

 

There are a number of different regulations in the UK currently, which as many are derived from EU guidelines might change over the course of the Brexit negotiations. They govern aspects as diverse as a ‘tax’ on packaging for prolific producers of paper, polyethene and cardboard hybrid coffee cups, glass, etc. And punitive fines and even jail-time for companies which engage in unlicensed disposal of ‘controlled waste’.

Wrapping-paper Tax

Any UK-listed or operating producer which emits more than 50 tonnes of packaging a year, and which has a turnover of over £2million, is obligated to submit a Packaging Tax Return to HMRC. They then have to offset their obligation by funding a commensurate amount to the government’s packaging recycling programme.

The private sector too has cashed in on the packaging sector, with a wealth of innovative initiatives to minimise waste. Probably the greatest expansion has been in devices to prevent food wastage, from the now fairly commonplace ethylene absorbers to special types of bacteria-fighting film. Ethylene is a hormone produced by metabolism in most fruit.  It initiates and accelerates the ripening of fruit and causes vegetables to start decomposing. Several companies now provide packaging with ethylene absorbers to increase produce shelf life.

Still more exciting are some of the patented inventions now seeking corporate sponsorship. For example, the wrappers with built-in anti-microbial properties recently developed by the Fraunhofer Institute for Process Engineering and Packaging IVV in Freising. Sorbic acid is the active component of the bacteria-fighting film; which in clinical trials reduced the size of an E.coli colony cultivated on day-old pork loin for the experiment to around a quarter of its initial size. Crucially, in the concentration of the laquer applied to the film, sorbic acid is neither poisonous nor allergenic and virtually odourless and tasteless.

http://reid.wrap.org.uk/item.php?id=26  )

Dodge the Plastic Bag Tax

The resource-efficiency bar has been raised still higher in the compostable plastic department, where a number of global competitors jostle for supremacy. In the UK there are several competing providers of biodegradable plastics, including Scotland-based BioBags, and Biopac, the self-described ‘leading developer’ of a very wide range of eco-friendly food packaging and catering disposables.

In Australia, where ‘sustainability’ is a buzzword even for the big mining companies, one player dominates the market. Publicly listed ‘Secos’ was formed in a reverse merger of Cardia Bioplastics Ltd with Stellar Films Group Pty. Ltd. In April 2015. Post-merger, its preliminary annual report for December 2015 showed total assets including cash, trade and other receivables and prepayments, was $9,076,829. The most recent figures available from investment.com.au show that the Australian stock market looks favourably on its prospects, as its P/B (price-to-book) ratio is 2.33, compared to 1.43 the market benchmark, and 1.54 for the sector.

UK-based Biopac’s impressive range of products enable catering and hospitality companies to proudly declare their green credentials; not only can they cite their sustainable container purchases on their annual reports, it is also often branded on the product itself. There is the ‘I am not a plastic cup’ made from renewable cornstarch that also carries the government approved CE marking (£130 for a case of 2100).   And the 12oz single use* ‘I’m a Green Cup,’ made from certified FSC (Forest Stewardship Council) board with a starch material, which is actually 100% compostable (£57.45 for a case of 1000). Various PLA (polylactic acid) clear tumblers …

If you needed further proof that this was a growth trend that has become impossible to ignore, there’s even a site called ‘Biodegradable Plastic Glasses’ (insert domain name here).

Or, if you prefer a more official stamp of approval, a market research report by Markets and Markets entitledBiodegradable Plastics Market by Type (PLA, PHA, PBS, Starch-Based Plastics, Regenerated Cellulose, PCL), by Application (Packaging, Fibers, Agriculture, Injection Molding, and Others) – Global Trends & Forecasts to 2020  states that the biodegradable plastics market is projected to grow from more than USD 2.0 Billion in 2015 to USD 3.4 Billion by 2020, at a CAGR of 10.8% between 2015 and 2020.

That’s a nice return on your investment.

 

plasticbags

 

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