Pernille Lind Olsen, the President of Henkel North America, believes that urgent, courageous, and ambitious action towards increased sustainability is necessary for companies to build their businesses for the future and meet the needs of customers. With material consumption rising over 65% in the last twenty years and the global population expected to increase by two billion people in the next 30 years, companies must change how they consume and produce to ensure the planet’s resources can sustain future generations. This transformation will require climate policies, regulation, and leadership that make sustainability a core part of business operations to create value for stakeholders and the planet.
Circularity offers a sustainable path forward for companies by shifting away from fossil energy sources toward renewable ones and decoupling resource consumption from economic growth. By eliminating, reducing, and recycling products and materials, circularity can help minimize waste, natural resource extraction, and negative environmental effects. According to Gartner, 74% of supply chain leaders expect to increase profits through 2025 by applying climate-conscious solutions such as recycling, decarbonizing operations and raw materials, and providing consumers with climate-conscious options. Despite available solutions, only 7.2% of material inputs in new product development are being recycled and reused, highlighting the need to accelerate adoption.
Circularity is particularly important in consumer goods packaging, where building solutions and systems across supply chains that incentivize recycling or reuse can significantly reduce a company’s environmental impact and lead to cost savings and innovation opportunities. With regulations around Extended Producer Responsibilities (EPR) schemes and mandatory recycled content in consumer packaging increasing, circularity is becoming a regulatory necessity for success. Reusing even a portion of the 30 million tons of packaging waste that ended up in U.S. landfills in 2018 can help reduce landfill contributions, prevent new raw materials from being used, and reduce emissions.
To take advantage of circularity opportunities, organizations should consider sustainability from the beginning, rethink existing processes to create sustainable solutions, and collaborate with partners and stakeholders along the value chain to drive circular innovation. By integrating circular practices in product design, leveraging resources like design for recyclability guidelines, partnering with sustainable vendors, and encouraging user and sustainable purchase habits through packaging, companies can make a strong case for the environmental and economic benefits of circularity. Through collaborations that emphasize change across the value chain, companies can work together to create solutions that benefit current and future generations.
Forbes Business Council, the foremost growth and networking organization for business owners and leaders, provides a platform for industry professionals to contribute thought leadership articles and grow their networks. Members of the council have the opportunity to share insights and expertise on various business topics, connect with fellow business leaders, and access resources and networking opportunities to enhance their professional growth. Business owners and leaders who are interested in joining the Forbes Business Council can apply to become a member and contribute to the council’s mission of promoting excellence in business leadership.
