The leading sustainable asset manager wants to step up its dialog with the main polluters from the consumer goods sector, industry, healthcare, the raw materials sector and companies in the information technology sector (engagements). EB-SIM emphasizes this in a current position paper.

According to the experts at EB-SIM, avoiding and reducing waste not only makes ecological sense, but also economic sense. More efficient use of materials and fewer raw material purchases create new business models for companies. This reduces dependence on raw materials. According to estimates, a circular economy can create up to 700,000 jobs by 2030 in the EU alone. It also increases competitiveness and promotes innovation.

The global waste problem and its dimensions

Every product that is used in industry or consumed by consumers is packaged for protection, transportation and storage. After use, this results in packaging waste. Due to the ever-increasing production of packaging and its often incorrect disposal, packaging waste has become a global and growing problem. This has far-reaching ecological and social consequences.

In the European Union, an average of 186.5 kilograms of packaging waste was generated per person in 2022. At 40.8 percent, paper and cardboard accounts for the largest share of packaging waste in the EU. Nevertheless, the proportion of plastic is growing continuously. It increased by 72% between 1994 and 2017.

Figure 1: Composition of packaging waste in the EU in 2022 (Eurostat)

The consequences are dramatic: it is estimated that between 1.15 and 2.41 million tons of plastic waste end up in the oceans every year. The “Great Pacific Garbage Patch”, the world’s largest accumulation of plastic waste in the oceans, has now reached an area of 1.6 million square kilometers. It is located between Hawaii and California in the Pacific Ocean.

For their study, Cowger et al. (2024) analyzed data from a five-year project that collected plastic parts in 84 countries. Brand imprints could be recognized on these. These plastic parts could then be assigned to the producers. According to the data, only 56 large international companies are responsible for over half of the plastic waste found.

Uncontrolled disposal: A global challenge

Globally, an average of 225 million tons of plastic waste is produced every year, which corresponds to 28 kilograms per person. Around a third of this (almost 70 million tons) is disposed of uncontrolled and ends up in the environment. Uncontrolled waste is either not collected and is stored or incinerated directly by the producer. Or it is improperly stored or incinerated after it has been collected.

Figure 2: Projected global disposal routes up to 2050 (based on UNEP 2024)

While almost all waste in Europe and North America is disposed of or recycled in a controlled manner, large quantities are disposed of in an uncontrolled manner, particularly in parts of Africa and South East Asia. It is expected that the proportion of this uncontrolled waste in relation to the total amount of waste will continue to increase.

Improper disposal has serious consequences beyond environmental pollution:

• In developing countries, it is estimated that between 400,000 and one million people die from diseases every year. These are due to improperly disposed waste.

• Incorrectly disposed waste blocks waterways and drains, which can lead to flooding, waterborne diseases or drowning.

• It contributes to the spread of disease-carrying flies, mosquitoes and vermin. These spread diseases such as malaria, dengue fever, typhoid, tuberculosis, rabies and plague.

• Improper combustion releases toxins that can increase the risk of cardiovascular disease, cancer and respiratory diseases.

High resource consumption and economic relevance

Another problem with packaging waste is the high consumption of natural raw materials for the production of packaging. Every year, over 100 billion tons of natural raw materials are extracted worldwide. This is done directly from nature and has negative consequences for people and the environment. Forecasts predict that the extraction of natural resources will continue to grow by more than 60 percent by 2060. Many of these raw materials are processed into packaging materials such as paper, cardboard, plastic, glass or metal. One of the main reasons for the high rate of extraction is that only around 7.2% of the 100 billion tons per year are recycled.

The problem of incorrectly disposed packaging waste also has economic relevance:

• The disposal of packaging waste (collection, transportation, actual disposal) is expensive.

• The production of new packaging is resource-intensive and also expensive if old material cannot be recycled or reused.

• Regulatory risks can force companies into costly and short-term conversion processes if certain materials are no longer permitted.

The sectors most associated with packaging waste include consumer goods, industry, healthcare, the raw materials industry and the information technology sector.

The path to the circular economy

In order to tackle the global waste problem and its negative consequences, a shift from a linear economy to a circular economy is necessary. In the linear model, natural raw materials are extracted, processed into products and packaging and disposed of as waste after use. In a circular economy, on the other hand, the “waste step” ideally disappears completely. Products and packaging are reused or processed into new raw materials through recycling, reuse, return or repair.

Recycling as a core element

Recycling is the most important part of the circular economy. It reduces the need for new raw materials and minimizes the environmental impact of waste. However, there are challenges:

• Complexity of materials: Composite materials, multi-layer plastics and impurities make recycling more difficult. This often means that packaging can only be “downcycled” or not recycled at all.

• Lack of infrastructure: Not all countries have sufficiently developed recycling systems, which makes global, standardized recycling difficult.

• Lack of demand for recyclates: The quality of recyclates does not always meet the requirements for the manufacture of new products. This impairs the economic efficiency of recycling processes.

• “Wishcycling”: The well-intentioned but incorrect disposal of non-recyclable materials in the recycling stream contaminates it and increases the effort required for sorting

The best way to minimize these difficulties is to “design for recycling”. This involves designing packaging in such a way that it can be 100% recycled after use. For example, by making a detergent bottle out of only one type of plastic and using removable labels.

European Union wants to reduce packaging waste

The EU is driving forward the reduction of packaging waste, especially plastic waste. Since 2021, many single-use plastic products (such as disposable cutlery, plates and straws) have been banned throughout the EU. In addition, the Packaging and Packaging Waste Regulation (PPWR) came into force in February 2025. The PPWR aims to minimize the amount of packaging and waste. It also aims to reduce the consumption of primary raw materials and promote the transition to a circular economy.

Key points of the PPWR include:

• Less wasteful: plastic packaging must be made partly from recycled material.

• More recyclable: By 2030, all packaging must be designed in such a way that all parts can be reused.

• Clearly labeled: No more confusing labels or colors to simplify waste sorting.

• Common sense packaging: no more layers of unnecessary packaging or pellets for deliveries. Small, lightweight packaging without empty space.

• Reuse, refill & collection: Strengthen deposit and return systems; companies must offer reuse or refill options.

• Fairness & safety: Brands that use non-recyclable materials must pay for their disposal; the use of “perpetuity chemicals” (PFAS) is restricted.

Responsibility as an investor

As a sustainable asset manager, EB-SIM takes this responsibility seriously. It sees it as its task to support companies on this path and to encourage them to take concrete measures. To this end, EB-SIM enters into dialog with companies (engagement).

Through its commitment, it aims to bring about positive change and encourage companies to improve their handling of packaging waste. This applies both to their own processes and to cooperation with their suppliers along the supply chain.

EB-SIM reports annually on the status of its commitments in its Impact Report.

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