Use recycled plastic for flexible packaging globally

This case study has been developed in partnership with Together for Sustainability (TfS), an industry-leading initiative driven by chemical procurement specialists, dedicated to building sustainable chemical supply chains.

Yara is a large-scale company in crop nutrition globally is committed to decarbonizing and transforming the food system and advancing climate neutrality, and regenerative agriculture. As part of the effort to reach climate neutrality, Yara is working to reduce the environmental impact of its plastic packaging materials.

Plastic pollution is a growing environmental problem. Plastic not only pollutes the environment but also amplifies climate change by contributing to greenhouse gas emissions at every stage of its lifecycle, from production to waste management.

Fertilizer supply chains are long and complex, and there is a risk of product loss and/or deterioration along each step. Plastic packaging material reduces that risk. It helps preserve product quality; protects against ambient conditions (e.g., moisture and humidity); prevents product loss; ensures safety and ease of handling (bags weigh up to over 1,000 kg); and optimizes application. In short, plastic fertilizer packaging helps ensure the quality and ease of handling of the product.

As it is Yara’s assessment that there are currently no plastic-free solutions that adequately meet the above-mentioned considerations, for the time being the company's focus is on optimizing the production, use, recyclability, and disposal of its plastic packaging.

Solution

Yara reduces the environmental impact of its plastic packaging in four ways:

Reducing the amount of plastic packaging used per product

• The specifications were checked of all its hundreds of different types of sacks, small bags and big bags (containing from less than 25 kg to more than 1000 kg) on possibilities to reduce the amount of plastic used for the specific bags without compromising bag strength or product protection. By reducing the use of excess material for bags that are too large for their content and reducing the material thickness where possible the amount of plastic used was reduced with a few percent

Using recycled plastic where possible

• The team worked with the company’s main suppliers to use at minimum 30% recycled plastic (PCR or Post Consumer Recyclate) in the bags they produce. Once it was confirmed this was possible, the company made this a mandatory requirement in RFQ’s

Ensuring packaging is designed so that it can be recycled

• During specification optimization the use of bags (partially) made from different types of plastic that cannot be easily separated was reduced as much as possible (e.g. big bags with a liner bag to protect the content from moisture are made from 2 types of material, but the outer and inner bag can easily be separated during the recycling process)

Working with other players in the value chain on collection and recycling schemes

• The company contributes to and collaborates with generic collection schemes like The Green Dot (Europe) and RIGK (Germany) and specific agricultural plastic collection schemes like Adivalor (France). All parties in the downstream value chain are continuously informed and educated about the importance of participating in those collection schemes

• The company’s packaging suppliers use material from those collection schemes for the PCR in their bags, making them truly circular

General

• The team created test protocols to ensure that the new materials would continue to protect the company’s products from the environment (e.g. moisture and humidity) in addition to meeting all applicable legislation

• Longer-term purchase commitments ensure suppliers that product development costs are paid for

• All activities during the development and implementation of flexible packaging made with recycled plastic are aimed at ensuring all stakeholders that the new bags made with recycled plastic are of the same quality as the materials they were familiar with

Sustainability Impact

Climate Impact

Scope 1 + 2

Not applicable

Scope 3

• Target of 40% CO2 reduction by 2030 (baseline 2021)

• In 2024, the company reduced virgin plastic use with around 5.000 ton (vs. baseline 2021) which is 10% of its total plastic use for packaging. The CO2 reduction was around 4% of its total carbon footprint for plastic packaging materials

Nature Impact

By reducing virgin plastic use and lowering CO₂ emissions, Yara is helping to mitigate climate change - one of the main drivers of biodiversity loss. Incorporating recycled plastic into its packaging, including material from its own used bags, minimizes plastic waste that could otherwise pollute natural habitats, harm wildlife, degrade soil quality, and contaminate water sources. While tracking the exact number of collected and recycled bags remains a challenge, these efforts contribute to a more circular approach to plastic use, reducing environmental harm and supporting ecosystem protection and biodiversity preservation.

Business Impact

Benefits

• Cost savings are achieved by reducing plastic use per bag. However, price differences between virgin and recycled plastic fluctuate, and in some cases, recycled plastic may be more expensive. Avoidance of plastic taxes (e.g. in UK and Italy).

• Improved brand reputation as packaging materials communicates brand and the new packaging materials are a showcase for the company’s attention to sustainability and carbon footprint reduction.

Costs

• Product costs for packaging materials made with recycled plastic are very similar to the same materials made with virgin plastic only and merely depend on costs or recycled plastic vs. virgin plastic.

• Product development costs are covered by packaging materials suppliers

• Required investments are limited to time spent by internal stakeholders (e.g. in procurement, operations and marketing) to execute the initiative and implement the changes.

Typical business profile

Relevant for any business using big bags and/or small bags (sacks) for product packaging

Approach

1. Anchor with Executive Management and involve all internal and external stakeholders from the start.

2. Make it a global project to maximize impact. However, smaller local projects can bring the same results on a smaller scale.

3. Ensure quality of the new bags in all aspects (test protocols, certifications, bagging efficiency) and pay high attention to clarifying to customers that bags made with recycled plastic may have a different look (the color changed from plain white to slightly colored almost white in different variations) but are of the same quality and do not compromise technical requirements, safe handling and content quality and protection.

4. Regularly follow-up progress, report to stakeholders and celebrate successes.

Stakeholders involved

The global project was:

• Owned at Executive Management level

• Managed by product management (sales)

• Supported by business strategy, procurement and marketing, reporting to Executive Management

Once targets were set and route to targets confirmed the implementation and execution was managed by:

• Procurement (category managers) closely cooperating with

• Suppliers

• Sales and marketing

• Operations

Key parameters to consider

• Engage stakeholders early

• Make sure that customers as the final user of the new materials are aware of the change, accept it, and see the benefits

• Timeline:

  • Global project to set targets and route to targets was executed during Q4 2020 and Q1 2021.

  • End 2024 all bags in Europe and Brazil are optimized and contain 30% PCR. Several smaller local initiatives linked to the project are executed in addition,

  • Project work continues to increase % of PCR and on implementing more local initiatives.

  • The targets are set for 2030, and work will continue at least until then.

Implementation and operations tips

Ensure good change management is in place, so all stakeholders understand the value and complexity of the change.