Why Collective Action Is The Answer to The US Lubricant Container Recycling Problem

May 9

Written By National Lubricant Container Recycling Coalition

While the importance of recycling, in general, is easily understood, developing effective approaches is not. As noted in a previous McKinsey on Climate Change report, “The worldwide crisis of plastics-waste pollution is leading to calls for action from a wide range of stakeholders, from consumers to regulators to brand owners to plastics producers. The desire to see action is easy to understand, but identifying the most effective approaches to current waste problems—and those of the future—represents a complex challenge spanning the entire plastics value chain.”

Specific to lubricant container recycling, addressing a challenge as complex as recovering post-consumer plastic packaging for recycling is not feasible for most individual companies, particularly when products are distributed throughout multiple regions and markets. Cost-effective solutions require collaboration with multiple stakeholders (including competitors), both upstream and downstream of the lubricant value chain.

What is the answer to these challenges? Collective action. As written previously in our post, Why Collective Action Is Key To Address The Complex Challenge Of Recycling Post-Consumer Plastic Packaging, collective action is critical in the development of a sustainable, economically driven end-of-life solution for plastic (HDPE) packaging.

Notably, there are increasing drivers for plastic lubricant packaging recycling in the US:

Increasing focus by industry to improve ESG performance

Every business operation is intertwined with environmental, social, and governance (ESG) concerns. However, an ESG strategy has not been a priority for many companies historically, but the dynamic is changing. Consumers are demanding high standards of sustainability from businesses. Regulators and policymakers are more interested in ESG because they need the corporate sector to help them solve social problems such as environmental pollution. Our post, How Your Corporate ESG Strategy and Lubricant Container Recycling Go Hand in Hand, explains how companies can achieve a measurable, positive impact on environmental and social drivers for plastic waste prevention that can be leveraged via collective action and specifically through membership with the NLCRC.

Universal demand to reduce environmental impacts from plastic production

Countless reports including the recent IPCC report and developments from the recent COP26 conference indicate that governments play a role in developing solutions, but also businesses sit at the core of the transition to a circular economy. The collaboration with suppliers and customers to build the infrastructure needed is the path toward a system that benefits the whole society.

Increasing demand for recycled plastics in the packaging industry

According to the Global Plastic Recycling Market Report 2021, “The Global Plastic Recycling Market is estimated to be USD 45.5 Bn in 2021 and is expected to reach USD 65.3 Bn by 2026, growing at a CAGR of 7.5%. Factors such as rising demand for plastics in various end-user industries and favorable government initiatives toward the reduction of plastic waste have strengthened the growth of this market. With the increasing awareness about global warming, plastic manufacturers are largely focusing on developing new recycling concepts to reduce greenhouse gas emissions and maintain environmental sustainability.”

Emerging laws and regulations for packaging

Notably, 2021 was an eventful year for recycling policy and ESG initiatives in the US. Yet, 2022 could be an eventful year for new laws to be passed within the lubricant container recycling scope as noted in the post, More Waste And Recycling Policies Could Materialize In 2022.

Given the mounting pressures from a variety of stakeholders, unquestionably, there is an opportunity for the lubricant container industry to come together under a unified approach and collaborate to bring the change needed for recycling hard-to-degrade plastics such as lubricant containers.

Membership in the NLCRC leverages the knowledge, expertise, and experience from across the value chain while working collaboratively on building end-of-life solutions to an industry-wide business challenge, one that is common to all lubricant industry stakeholders.

Opportunities exist for driving achievement for waste-related environment, social, and governance (ESG) goals and working to address emerging legislation, while simultaneously, reducing business risk by implementing programs that address emerging legislation concerns that affect business operations and growth.

Join us in developing a sustainable future for the recycling of plastic lubricant containers. Become a member of the NLCRC.

The NLCRC members include  Castrol, Valvoline, Pennzoil - Quaker State Company, Graham Packaging, Plastipak Packaging, Berry Global, the Petroleum Packaging Council, and Chevron.