How Business Can Successfully Shift toward a Closed Loop Supply Chain

by | Feb 1, 2019

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North American views toward recycling are changing rapidly, mirroring the increasingly urgent need for innovation and collaboration in the supply chain. As the global recycling industry responds to political, financial and environmental factors, and as consumers become more aware of the sustainability issues facing society today, it’s clear that businesses must work together to find a solution for a closed loop supply chain.

You may have seen recent news reflecting these shifts – especially following China’s 2018 decision to restrict the types of recyclables it purchases from the US and charge a 25% tariff on the American cardboard, scrap plastic and fiber packaging it takes in. As a result, reports have shown that plastics and papers from dozens of American cities and towns are being dumped in landfills rather than being recycled and turned into new materials, driving a push for more efficient programs. At the same time, the UN’s recent report revealed that the immediate consequences of climate change are worse than we expected and avoiding the damage will require a complete transformation of the world economy.

That’s why the circular economy model has emerged as a potential long-term and regenerative solution that considers product end-of-life, rather than focusing on simply being “recyclable.” This approach aims to recover products that have served their purpose for end-users, and turn them into new products that are sold on the market and recycled again. By focusing on product end-of-life, we can truly be sustainable and maximize value chains, by not only feeding recycled materials into production, but also by recovering by-products and side streams of manufacturing for reuse.

For example, recycled paper made using post-consumer reclaimed material embodies the circular economy. It is sourced from waste paper products – such as magazines, newspapers, promotional materials, packaging, boxes and office documents – that have been used by consumers and tossed in a recycling bin. In contrast, pre-consumer fiber comes from waste that was never used by a consumer, and post-industrial fiber is a byproduct from paper used in industrial applications like printer overruns or newsstand returns without reaching end-users. Because these never serve a useful purpose in the consumer marketplace before they are recycled, they are not full-fledged members of the circular economy. A true transformation of our recycling industry requires this level of attention to detail and a commitment to constant improvement.

To build a sustainable supply chain that leads to sustainable manufacturing, it’s also crucial that manufacturers’ impacts are transparent and measurable. For example, at Rolland, we work with our sister company Sustana Fiber to own our full supply chain and have more control over our environmental footprintSustana Fiber’s recycling capabilities utilize a range of post-consumer paper fibers and alternative fibers, such as cups, cardboard and food packaging, to produce recycled fiber that is then used to make packaging, tissue products, and paper, including our own line of recycled printing papers.

The paper recycling industry is shifting toward a closed looped fiber future, and this can be achieved when businesses do three key things: work together to change their approach to sustainable supply chains, set specific goals, and prioritize continuous innovation. As our society searches for better, environmentally-friendly solutions for its recyclable waste, businesses must focus on playing an active role in the circular economy, rather than short-term shifts and single-issue reporting of environmental impact. We must define success not only by the quality of our products, but also by our broader impact on the environment.

Renee Yardley, VP of Sales + Marketing, Rolland

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