16 December 2024
Media

DYNAPACK ASIA: PROGRESS ON THE 2024 GLOBAL COMMITMENT REPORT

DYNAPACK ASIA: PROGRESS ON THE 2024 GLOBAL COMMITMENT REPORT

Dynapack Asia is proud to share the key highlights from our sixth report to the Ellen MacArthur Foundation (EMF) Global Commitment, based on our 2023 production data. Discover our progress on the EMF Global Commitment platform by visiting this Global commitment - Details of reporting companies

Our packaging designed for recycling increased back to 80% for 2023. These are packaging products that can be processed using current recycling technologies. We could increase by 5.5% from 2022, and we expect it to further grow to 83%-85% for 2024 (84% as of September 2024).

Our packaging being either recyclable, reusable, or compostable is at 79% for 2023. These packaging products meet a 30% post-consumer recycling rate in regions with at least 400 million people or achieve the same rate in all local markets where they are sold, as defined by the Recyclability Assessment Tool of Ellen Mac Arthur foundation. The 15.7% increase compared to 2022 is significant, and reflects the various actions described further. For 2024, we expect to further improve to 82-84% (83% by September 2024).

Together, these results demonstrate steady progress in enhancing the sustainability of our packaging, with significant improvements in both design for recycling and practical recyclability, reusability, or composability.

The key actions that have been undertaken were:

  • Limiting the Use of High Mineral Filler

Content of mineral fillers like Calcium Carbonate (CaCO₃) above 30% create issues in recyclers process and do not allow production of good quality recycled resins (according to the US APR survey standards). A significant part of our HDPE jerrycans produced for edible oils, especially in Malaysia, currently contain over 40% of CaCO3. This high percentage makes these containers non-recyclable. In 2023, production of these products reduced by ~25% compared to 2022, leading to a lower share in our overall volumes. To address this critical issue, we have initiated a local study in Malaysia with the collaboration of a local recycler to thoroughly assess the recyclability of these products and develop an effective solution, which will guide our efforts to enhance the recyclability of our packaging solutions.

  • Eliminating Multi-materials Packaging

Multi-materials packaging refers to the use of different resins grades within the same product (HDPE and PP, LDPE and PP, etc.). This is usually done to improve packaging properties and protect final products. In 2023, 6% of our products were still composed of multi-materials, a 5% reduction compared to 2022, with levels remaining flat as of YTD September 2024. This was thanks to successful redesign of products changed from multi-materials to mono-material. This strategic shift toward single-resin packaging enhances the efficiency of our recycling efforts.

  • Eliminating Problematic Materials

Problematic packaging materials, including resins like PVC, PETG, ABS, AS, GPPS, PBT, and HIPS, as well as masterbatches with heavy metals, pose environmental and health risks, making their elimination essential to our sustainability and safety commitment. In 2023, we reduced their usage by 22% compared to 2022, with only 0.3 kTon of our products containing problematic resins and in YTD September 2024, this figure remains flat at the same level as in 2023.

Similarly, since 2019 we targeted to eliminate heavy-metals in masterbatches, as they are still sometimes used in Asia for colorants due to cost considerations, posing high environmental and health risks. Our first review in 2019 revealed that 1.5% of our products contained heavy-metal masterbatches. By 2023, we only had 0.5% with six products remaining, and we are actively developing solutions to fully eliminate heavy-metal-containing materials by Q3 2025, ensuring recyclability, worker safety, and environmental protection.

The graph above illustrates our progress in incorporating post-consumer recycled (PCR) content into product packaging, with a goal of reaching 25% by 2025 as committed to EMF in 2018. PCR content has risen from 0.4% in 2018 to 6.6% in 2023, a 16 folds increase. For 2024, we should be close to 8% (7.7% as of YTD September 2024).

Unfortunately, we are here way below targets. Reasons are mainly high costs of PCR vs. virgin resins (20–50% premium) and unreliable supply quality. To overcome these challenges, we are partnering with suppliers and improving technologies, as well as conducting educational seminars to promote PCR adoption among customers and suppliers.

For 2023 data, we completed external verification of this PCR content across all products, with Ernst & Young (EY).

Dynapack Asia's Closed-Loop Plastic Packaging System

Dynapack Asia is dedicated to creating a closed-loop system for plastic packaging. In partnership with Coca-Cola Europacific Partners (CCEP), we established a joint venture in Indonesia, PT. Amandina Bumi Nusantara, to recycle PET bottles. Amandina converts used packaging waste into high-quality food-grade recycled polyethylene terephthalate (rPET). Since Q2 2022, Amandina has been delivering rPET to Coca-Cola Indonesia, reducing plastic waste, promoting reuse, and fostering a greener supply chain. Supported by our non-profit organization, Mahija Parahita Nusantara, which collected nearly 30,000 tons of used PET bottles in 2023, enabling Amandina to produce almost 20,000 tons of rPET.