Sustainability Goals VS System Realities
As ESG goals rise, the systems meant to support them (like recycling and composting) are struggling to keep up.
Sustainability is no longer a buzzword—it’s a business imperative. Yet, as companies set ambitious ESG goals, many are discovering that the systems supporting recycling and composting are not keeping pace. Behind the bins and labels lies a fragmented, underfunded infrastructure that’s struggling to deliver on its promise.
Recycling post-consumer plastic is far more complex (and costly) than it appears. The process involves sorting, washing, and remanufacturing, all of which require advanced infrastructure and consistent material streams. Most municipalities lack the capacity to do this efficiently, and as a result, recycled plastic often costs more than virgin resin. Globally, only about 9% of plastic ever produced has been successfully recycled, per the OECD.
Similarly, compostable packaging and food waste diversion are gaining traction, especially in consumer-facing industries. However, the infrastructure to support industrial composting is limited. Building new facilities is capital-intensive, and urban permitting challenges further delay progress. Without access to proper composting systems, most compostable materials still end up in landfills; undermining their environmental value.
Despite years of effort, municipal recycling remains fragmented and inefficient due to inconsistent rules, low-value materials, public confusion, and poor infrastructure—making it an unreliable sustainability strategy for businesses.
To move toward a truly circular economy, we need coordinated action:
• Smarter design of products and packaging for recyclability and compostability
• Strategic investment in modern recycling and composting infrastructure
• Policy alignment to drive innovation and accountability
• Consumer education to reduce contamination and boost participation
Sustainability isn’t just about good intentions; it’s about building systems that work. For companies, this means looking beyond packaging materials and into the infrastructure that supports them. Investing in scalable, circular solutions today can reduce long-term costs, mitigate regulatory risk, and strengthen brand trust.