The Materials Ecosystem: Unlocking the Value of Waste
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Insights
From an environmental economics standpoint, the shift towards a circular economy for plastics presents a dual opportunity for economic growth and environmental sustainability. The Ellen MacArthur Foundation's projections suggest significant economic and ecological benefits, including a reduction in oceanic plastic pollution, greenhouse gas emissions and the creation of jobs.
However, the transition to a circular economy is not without its challenges. It requires substantial investment in infrastructure for recycling and waste management, as well as the development of new markets for recycled materials. The economic activity generated from recycling 20% of single-use plastics, quantified at over $10 billion, indicates a substantial untapped market with room for growth. The long-term benefits could include not only cost savings from material efficiency but also a reduction in the negative externalities associated with plastic pollution, such as harm to marine life and associated industries like fisheries and tourism.
From a supply chain perspective, the complexity mentioned in scaling change for a circular plastics economy involves rethinking and restructuring the entire lifecycle of plastic products. This includes sourcing, design, manufacturing, consumption and post-consumer waste management. Companies like Dow are central to this transformation as they are at the nexus of materials science and production.
Implementing a systems approach requires collaboration across various sectors, including agriculture, waste management and the financial industry. The interconnectedness of these sectors means that changes in one area, such as improved waste collection systems in developing countries, can have ripple effects throughout the global supply chain. For businesses, this represents both a challenge in coordination and an opportunity for innovation in logistics, materials handling and product design to minimize waste and maximize recyclability.
As a sustainability consultant, the focus would be on the strategic implications of adopting a circular economy model for companies involved in the materials ecosystem. This adoption goes beyond environmental responsibility; it's a strategic shift that can lead to competitive advantage through sustainability-driven innovation.
Companies that proactively engage in developing circular economy solutions can potentially reap the benefits of enhanced brand reputation, customer loyalty and access to new markets. For instance, the demand for recycled plastics is likely to rise as more companies commit to sustainability goals. However, companies must also navigate potential drawbacks such as the initial costs of transitioning to circular systems and the need to stay ahead in a rapidly evolving regulatory landscape that increasingly favors sustainable practices.
NORTHAMPTON, MA / ACCESSWIRE / February 22, 2024 / DOW
By sharing our perspective on the dynamics of the materials ecosystem - its connections, influencers and gaps, we aim to inspire, highlight the work of others and invite conversation.
Here's a riddle: what does a global materials science company such as Dow have in common with farmers in Iowa, investors in Southeast Asia and waste pickers in for example Kenya or Brazil? We are all part of the diverse and complex materials ecosystem that is developing around plastic and renewable waste to deliver its total value.
Why is this happening? The world is demanding a better way to make, use and reuse plastics. Too much plastic enters our natural environment, and that's unacceptable. It's also unacceptable to view this valuable material as waste in the first place. The Ellen MacArthur Foundation estimates that by 2040, a circular economy has the potential to reduce the annual volume of plastics entering our oceans by
The opportunity is huge, but so is the complexity needed to scale change - and that is where a systems approach comes in. As the world transforms to a circular economy, we are being challenged to not only think about waste as a resource but also to change business models, logistics, consumption behaviors, policy and infrastructure. Experts in systems thinking believe the first step to solving a complex challenge like waste is to understand the system in which it sits. Meaningful change only happens when we understand the web of interrelations and rethink assumptions.
That is why we are employing a systems lens to identify the gaps, connect the best partners and give it our best to scale how the world values, sources, transforms and monetizes plastic waste.
In this first of a series of Seek Together blog articles to highlight our new insights on the materials ecosystem, let's take a look at how we're defining that system and our role in it.
What is the materials ecosystems?
When I think of circularity for plastics, I often think of how connected gears work together to make something larger work. As you can see in the illustration below, the materials ecosystem includes everyday consumers like you and me - and stakeholders in waste management, recycling, design, manufacturing, retail, brand ownership and public policy. It is a web of interrelated technologies, processes and people that transform used plastic and renewables into useful materials.
It takes every stakeholder working together to make change happen. This includes brand owners and manufacturers designing products to be recyclable, effective recycling and waste infrastructure systems to recover end-of-life plastics, and investments across the value chain in new technologies that will transform recycled and renewable materials into products that create value. It also takes policymakers, investors and consumers to enable a systemic shift.
In addition, it takes an appreciation of the nuances of local waste systems. While plastic waste is a global problem, solutions are highly localized. An improved understanding of local ecosystem actors and existing waste management systems can help ensure initiatives and investments to scale-up plastics recycling achieve the greatest impact and are tailored to the unique needs and strengths of communities.
It's a complex system, for sure. But by understanding the complexity, I believe we can strengthen the role we play and who we work with.
Putting systems thinking into action
What does applying a system lens look like in our work?
For us, it starts with first understanding local systems around plastic waste - and then collaborating with the best partners and technologies for the collection, reuse and recycling of waste to enable global material ecosystems to scale.
Together, we look at how things can connect better. We try to understand what influences consumer behaviors. We also consider how policy is a driving force in many ways - and we examine the gaps in the ecosystem and how we can address them.
Take our work with Delterra, for example, in Argentina - where recycling rates hover at
This is one recent example of how the public's good intentions and recycling capacity connect and how global organizations are improving recycling as a key part of materials-management efforts.
Learning by listening
Albert Einstein is often quoted as saying, "We cannot solve our problems with the same level of thinking that created them." I am continually inspired by our collaborators, and the bold moves they are making with us to disrupt and create a new plastics economy.
Recently, I shared a stage at Fast Company's Innovation Festival with two entrepreneurs who represented vastly different roles in the materials ecosystem: Thomas Corle, CEO of New Energy Blue, and Ashish Gadnis, CEO of BanQu. Corle founded a bio-conversion company that uses renewables such as corn leaves and stems, and Gadnis runs a blockchain supply chain and economic identity platform for disenfranchised workers.
Dow and New Energy Blue announced a long-term supply agreement in North America in which New Energy Blue will create bio-based ethylene from crop residues for plastics production. Recently, Dow and BanQu began work together in a pilot project called "2Life." Using blockchain technology, the 2Life Project aims to advance the development of the value chain traceability of our REVOLOOP™ post-consumer recycled resin manufactured in Colombia.
These entrepreneurs share some important traits. They don't see waste as waste. They focus on people - farmers and waste pickers. They are diversifying how we source materials for plastics - both by what materials we use and by valuing the diverse people connected to those materials. Importantly, they are innovators with a vision of how they can do their part to advance a future that is more circular and lower carbon.
These disruptors demonstrate that by working together across the materials ecosystem, we can indeed make the whole greater than the sum of the parts and turn complex challenges into opportunities for sustainability.
Check out our insights on the materials ecosystem
By sharing our perspective on the dynamics of the materials ecosystem - its connections, influencers and gaps, we aim to inspire, highlight the work of others and invite conversation.
I welcome you to check it out at Dow.com/materialsecosystem.
Haley Lowry, Director of Sustainability at Dow
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SOURCE: DOW
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FAQ
What is Dow's goal in sharing its perspective on the materials ecosystem?
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What approach is needed to scale change in the materials ecosystem?
