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Week 2: Designing a Circular Economy

Unit 1: Packaging - What’s it ever done for us?


Packaging - What’s it ever done for us?
Packaging fulfils important functions

Protection Containment

Packaging

Handling Communication

Source: Wohner et al. (2019)


© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Packaging - What’s it ever done for us?
Packaging is a driver of prosperity

Food protection Hygiene


Extend products shelf-live Comply with H&S regulation

Food loss
and waste
avoidance

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


Packaging - What’s it ever done for us?
Example: Food loss and waste avoidance

Bananas

Beef

Cheese

Source: Poore, J. & Nemecek, T. (2018). Reducing food’s environmental impacts through producers and consumers. Science. OurWorkdInData.org/environmental-impacts of food – CC BY
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
Packaging - What’s it ever done for us?
Packaging is a driver of prosperity

Food protection Hygiene


Extend products shelf-live Comply with H&S regulation

Food loss
and waste
avoidance

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Packaging - What’s it ever done for us?
Example: Hygiene

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Packaging - What’s it ever done for us?
Plastics packaging are seen as particularly harmful to the environment

How many times do you need to use a bag to make it more environmentally friendly – i.e. with less
CO2e emissions - than a single-use plastic bag?

paper bag 3

non-woven
11
PP bag

cotton bag 131

number of reuses
Source: BBC (2019) based on Environment Agency
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Packaging - What’s it ever done for us?
Plastics packaging have positive and negative aspects

Crude oil demand Lightweight

Low collection rates Cost advantage


Difficult to recycle
Relatively low footprint compared
Health concerns to other materials

Not decomposable Durable


Micro plastics
Versatile (can serve
Leakage into the ocean multiple functionalities)

Key question: How can the advantages of plastics be used, without


having the negative environmental effects?
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Packaging - What’s it ever done for us?
Let`s profit from the positive aspects while eliminating the negative ones!
Air pollution from burning plastic packaging
Food protection Mismanaged plastic waste
Extend products shelf-live Hygiene
Comply with H&S regulation

Unnecessary and
problematic uses
Industry
reliant on
virgin fossil 90% linear system
feedstocks (for plastics)
and fossil
energy
Food loss
and waste
avoidance

4,8-12,4 mT/year plastics leaked (in 2015)


By 2025: 3 tonnes of plastic/10 tonnes of fish
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9
Packaging - What’s it ever done for us?
Key take-aways of the session

Packaging fulfils important functions and can contribute to


social and ecological prosperity. Therefore, omitting
packaging is not always the most sustainable option.

To find optimized solutions, trade-offs have to be


evaluated and the entire life-cycle has to be taken into
account.

Let’s make packaging - which cannot be avoided because it


fulfils important functions - reusable or recyclable – and
invest massively in infrastructure!

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2022 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/trademark for additional trademark information and notices.
Week 2: Circular Design and Packaging
Unit 2: Packaging – Unintended Consequences
Packaging – unintended consequences
Content overview

We will cover the following topics:


▪ An overview of A Plastic Planet
▪ Key challenges in enabling designers to be circular
with their designs
▪ How to avoid chemical modification of nutrients
▪ Knowing the right usage of a composting system

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


Packaging – unintended consequences
Interview with Sian Sutherland from A Plastic Planet

Sian Sutherland is co-founder of A Plastic Planet, one of the


most recognized and respected organizations tackling the
plastic crisis.
Igniting social change, creating brands, campaigns, and
businesses with soul is Sian’s passion.
A multi-award winner, including Female Marketer of the Year,
CEW Achiever Award, Entrepreneur of the Year, and British
Inventor of the Year, Sian is a serial entrepreneur with a varied
background in advertising, skincare, Michelin Star restaurants,
film production, and brand creation design agencies.
In 2017, Sian co-founded A Plastic Planet, using a pro-
business, pro-solutions, and proactive approach to build a
different kind of organization, helping the world turn off the
plastic tap.
Early 2023, it launched PlasticFree, the first materials and
systems solutions platform, empowering the 160m global
creatives to design waste out at source.
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Packaging – unintended consequences
Video

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Packaging – unintended consequences
Key points

▪ How to design better and with circularity in mind


▪ Industries being the tool for change in how to design better
▪ Design audience being the custodian of new thinking in
circularity
▪ Global plastics treaty being a key source of circular design
▪ Having localized supply chains through the entire lifecycle

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2023 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/trademark for additional trademark information and notices.
Week 2: Circular Design and Packaging
Unit 3: The Regulatory Context
The regulatory context
There is a system failure in plastics management worldwide

40% 11 million tons Only

of globally produced plastic waste


of plastics were leaked into the
oceans in 2016. 15%
of globally produced plastic waste
ends up in the environment. Plastic leakage into the oceans will
was recycled in 2016.
triple until 2040 (business as usual
scenario).

Source: OECD (2022), PEW/SYSTEMIQ (2020)


© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
The regulatory context
Global regulations increase to act against plastics and packaging pollution

National Plastic The United Nations Treaty on plastic pollution is under negotiation and will forge an international legally binding agreement by 2024 1
Pacts in place

1 UK

2 France EU aims to make all


packaging reusable
3 Chile or recyclable by
20302
4 Netherlands
10 out of 21 Asia-
5 South Africa Pacific economies
Plastic taxes are live in the
have active EPR
UK (Apr 2022); and will
6 Portugal schemes, and EPR
take effect in Spain in 2023
regulations are
emerging in 7 other
7 USA
economies 4
More than 100 state
8 Canada EPR laws are in place in
the US 3 UK/EU move to
9 Poland More than 1000 companies
full EPR and
worldwide have committed
material
to eliminate problematic
10 Malaysia modulation
single-use packaging by
2025 5
11 Kenya

EPR= Extended producer responsibility


1Source: UNEP; 2Source: European Commission; 3Source: Product Stewardship
Institute; 4Source: The World Bank; 5Source: Ellen MacArthur Foundation
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Mandatory EPR Voluntary EPR EPR planned or in implementation State level schemes
3
The regulatory context
An important political instrument is extended producer responsibility

Government “Polluter-pays-principle”

ERP
regulation
pays EPR fee to
Producer/ Importer/ Producer Responsibility
Filler Organization (PRO)

sells
product contracts
with and pays
packaging
to
throws
away empty
packaging
Waste Management
Consumer Operator

Source: Plastics Policy Playbook, OECD


© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
The regulatory context
Eco-modulated fees incentivize use of more circular packaging

Basic idea: for system-compatible and recyclable packaging, the EPR fee should be cheaper
Example France:

For each CSU, the


basic contribution is
A differentiated €0.0738 adjusted
rate for 15 according to the
different number of packaging

families of units that make up
materials the CSU.

Source: Citeo (2020)


© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
The regulatory context
Recyclability is only one indicator for sustainable packaging

e.g. the WBCSD Sphere

Source: World Business Council for Sustainable Development (WBCSD)


© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
The regulatory context
Key takeaways of the session

Governments around the world are increasingly legislating against plastics and
packaging pollution.

Extended producer responsibility is the most commonly used policy instrument


to incentivize companies to reduce and redesign their packaging.

Recyclability is not the only sustainability indicator for packaging. More holistic
frameworks have already been developed to address sustainability trade-offs.

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2022 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/trademark for additional trademark information and notices.
Week 2: Circular Design and Packaging
Unit 4: Thinking Systematically About Packaging
Thinking systematically about packaging
Content overview

Thinking systematically about packaging:


▪ Packaging as an important use case
▪ How plastic packs can drive systematic change
▪ Data as an integral part for packaging designers
to become more circular
▪ Design packaging for re-use systems

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


Thinking systematically about packaging
Interview with Claire Shrewsbury from WRAP

Claire Shrewsbury – Director Insights & Innovation,


WRAP

In her role, Claire is responsible for WRAP’s policy and


insights work, technical support for local authorities, and
grant management across the UK.

The teams support UK Department for Environment and


Rural Affairs in its implementation of the UK Resources
& Waste Strategy and similar support programs for the
devolved governments in Wales and Northern Ireland.
Claire joined WRAP in 2008 and was previously a
consultant with AEA Technology.

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


Thinking systematically about packaging
Video

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Thinking systematically about packaging
Key points

▪ Plastics plant launch with four key targets:


– Eliminating unnecessary plastics
– Ensuring that plastic packaging that is put onto the
market is reusable and recyclable
– Effective recycling
– Recycled content
▪ Removal of polystyrene much slower than
anticipated due to certain commercial implications
▪ Capture increment is key alongside policy
mechanisms such as DRS that will drive up the
quality of recycling through source segregation
▪ Data as a key component in WRAP and for
packaging designers

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Thank you.
Contact information:

open@sap.com

More resources can be found on Plastics Pacts


websites via Collaborative partnerships | WRAP.
Key resources | WRAP (UK Plastics Pact) –
includes a wide range of resources
Follow all of SAP

www.sap.com/contactsap

© 2023 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/trademark for additional trademark information and notices.
Week 2: Circular Design and Packaging
Unit 5: Customer Example – Circular Packaging
Customer example – circular packaging
Content overview

Customer example – circular packaging:


▪ Redefining packaging in a changing world and putting
sustainability at the center of packaging
▪ Circular design guidelines – How does DS Smith do it?
▪ Data collection processes and issues

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


Customer example – circular packaging
Interview with Chris Else, Head of Packaging Design, DS Smith

Chris Else joined DS Smith at the beginning of 2021,


in the full lockdown period.

He has spent his entire career in the packaging


industry working in design, sales, and supply-chain
roles.

Always with a firm focus on the importance of design


and the required development of the design process
in the industry, Chris brings a lifetime of experience
and perspective to the role of head of design.

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


Customer example – circular packaging
Video

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Customer example – circular packaging
Key points

▪ Help customers respond to changing shopping habits


with sustainable packaging solutions that meet
societal needs
▪ Practical guide to how packaging designers translate
circular economy principles into action
▪ Damaged products from poor packaging have an
economic and environmental impact

© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2023 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/trademark for additional trademark information and notices.

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