In a circular economy that seeks, as its ultimate goal, to achieve a world without waste, in which products have a second life, upstream innovation is one of the most promising ways to achieve it. It involves tracing a problem to its origin and tackling it there. In other words: instead of figuring out how to deal with large amounts of waste, why not prevent it from being generated in the first place.
Upstream innovation requires a change of mindset as it involves rethinking the way products and services are delivered to users is structured, avoiding waste generation. Therefore, this model consists of rethinking the packaging, the product and the business model to prevent and eliminate packaging waste. This is what is stated in the ‘Complete Guide to Upstream Innovation‘, issued by the Ellen MacArthur Foundation.
Rethinking packaging, product and the business model to prevent and eliminate packaging waste
- Rethinking packaging: This means innovating at the design stage of the packaging product (packaging concept, format, components, choice of material) to provide the same essential function of product preservation while eliminating waste. An example of this is moving from non-recyclable to recyclable packaging formats.
- Rethinking the product: This involves innovation in product design (product formulation, concept, shape, size) to change its packaging needs while maintaining or improving the experience of the purchaser. An example of this is changing a physical product for a digital one or a liquid product for a solid one.
- Rethinking the business model: This involves innovating at the system design level (business model, supply chain, production location, product delivery) to change packaging needs. For example, selling products in refillable or returnable packaging instead of single-use packaging. Or localise production so that freshness can be guaranteed without relying on complex, often less recyclable packaging which is usually required in global supply chains.
Also of interest: The role of plastics in the race to achieve the SDGs
However, while it may seem otherwise, the benefits of the bottom-up movement go beyond tackling packaging waste and pollution. It also results in economic benefits:
Tackling plastic waste and pollution.
By redesigning products, materials and services, we can avoid creating waste in the first place, e.g., Coca-Cola, with its PET reuse model prevents the production of 1.8 billion single-use bottles per year in Latin America.
Also of interest: Large companies join the circular economy: The Nestlé case
Providing the solutions customers want
Plastic pollution has attracted widespread public attention and customers are increasingly rewarding brands that offer real solutions to this issue, such as Unilever Sustainable Living, which, in 2018, grew 69% faster than the rest of its brands, and accounted for 75% of the company’s growth overall.
Capturing untapped business opportunities
Finding new ways to deliver products that help manage waste can also lead to business benefits, such as cost savings, brand loyalty or user convenience. In fact, transforming just 20% of single-use plastic into recyclable plastic is an estimated $10 billion upstream innovation strategy.
Also of interest: Extended responsibility, key to the circular economy of plastics
Reducing carbon emissions
Many solutions that eliminate waste also eliminate carbon emissions at the same time. The SodaStream brand (acquired by PepsiCo in 2018), which allows customers to produce sparkling water in their own homes, reduces carbon emissions by up to 87% compared to sparkling water sold in single-use plastic bottles.
Getting ahead of regulatory changes
Governments around the world are adopting legislation aimed to deal with plastic waste, which is becoming increasingly demanding for businesses to comply with. By incorporating new procedures, companies have the possibility to comply with regulations and even being ahead of the authorities’ demands in this area.
Companies and organisations have been working along these lines for some time. Founded in 2018, the Global Commitment network already includes more than 1,000 organisations, including companies that are responsible for more than 20% of all the plastic packaging produced globally. They work together with the aim of promoting a circular economy for plastics, based on a strong bottom-up innovation approach.
