Pernille Lind Olsen, President of Henkel North America, believes that urgent and ambitious action towards increased sustainability is essential for companies to meet the needs of customers and build their businesses for the future. Material consumption has risen significantly in the last two decades, and the global population is expected to increase by two billion people in the next 30 years. To ensure that the planet’s resources can sustain us for generations to come, companies must change what and how they consume and produce and help partners and consumers reduce their carbon footprints. This transformation will likely require climate policies, regulation, and organizational leaders who prioritize sustainability in their strategic frameworks.
Circularity offers a sustainable path forward for companies looking to drive climate action. By decoupling resource consumption from economic growth and creating a loop for both energy and materials through eliminating, reducing, and recycling products and materials, circularity can help minimize waste, natural resource extraction, and negative environmental effects. According to Gartner, supply chain leaders expect to increase profits through 2025 by implementing climate-conscious solutions, such as recycling, decarbonizing operations and raw materials, and providing consumers with climate-conscious options. However, while many solutions are available, adoption needs to be accelerated, as only a small percentage of materials in new product development are recycled and reused.
Circularity has a significant impact on consumer goods packaging, as companies can reduce their environmental footprint by incentivizing recycling, reuse, and recovery of materials such as aluminum cans, plastic containers, and flexible packaging. Regulatory requirements, such as Extended Producer Responsibilities schemes and mandatory recycled content in consumer packaging, are making circularity a necessity for success. Companies can benefit from cost savings, innovation opportunities, and reduced impact on the planet by leveraging circular solutions and systems across their supply chains.
Organizations can capitalize on circularity opportunities by considering sustainability from the beginning, changing perspectives on existing processes, and enabling mutual impact along the value chain. Sustainability practices should be integrated into the design phase of products and packaging, and companies can partner with providers that prioritize recyclable materials in their products. Collaboration with customers and partners to innovate for circularity along the value chain can build awareness, promote environmental responsibility, and inspire further action among consumers and industry stakeholders. Olsen emphasizes the importance of collaborative efforts in solving circularity challenges, as she believes that solutions for the good of current and future generations require collective and courageous action.
Forbes Business Council is a leading growth and networking organization for business owners and leaders. The article highlights the importance of sustainability, circularity, and collaboration in creating solutions that benefit both businesses and the planet. Olsen’s insights on sustainability challenges and opportunities provide valuable guidance for companies looking to integrate circular practices into their operations and drive positive environmental impact.
