The CIRCLE Alliance: scaling packaging circularity to reduce plastic waste

The CIRCLE Alliance: scaling packaging circularity to reduce plastic waste

• The CIRCLE Alliance is a new $21 million public-private collaboration to scale solutions that reduce plastic use and tackle plastic waste
• Founded by Unilever, USAID and EY, the CIRCLE Alliance will support entrepreneurs and small businesses across the plastics value chain
• Its goal is to support women's economic empowerment, improve livelihoods and protect the environment by accelerating the development of circular economies

Packaging is vital for our business. It helps us serve the needs of people around the world. It enables us to transport and keep our products safe and in top condition. It's also central to the experience of our consumers and how we deliver superior brands.

However, the link between packaging and plastic pollution is undeniable. It's one of the biggest and most visible environmental challenges we're grappling with, which is why we've identified plastic as one of our four sustainability priorities in our Growth Action Plan.

We're doubling down on key issues such as reducing our use of virgin plastic and developing solutions for hard-to-recycle flexible plastic packaging materials, including sachets.

We've made significant progress. We've reduced our virgin plastic use by 18% against a 2019 baseline. We've increased our use of recycled plastic to 22% of our global portfolio. And we've trialled a variety of reuse and refill models around the world.

Our ambition is an end to plastic pollution through reduction, circulation and collaboration.

The CIRCLE Alliance - a new $21 million public-private collaboration co-founded by Unilever, USAID and EY - aims to support entrepreneurs and small businesses across the plastics value chain to scale solutions that reduce plastic use, tackle plastic waste and build thriving circular economies. It has a particular focus on women, who make up the majority of waste collectors working in the informal sector in the global south.

Rebecca Marmot, Unilever's Chief Sustainability Officer, says: "CIRCLE's collaborative model of enterprise acceleration - delivered through a mix of grant funding and bespoke business support - will help scale both new and existing solutions for packaging circularity, whether that's driving collection and recycling, or reuse-refill models.

"Crucially, it will support many small to medium-sized enterprises (SMEs) and entrepreneurs that offer impactful, market-based solutions but are currently too small to work at the scale we need."

While CIRCLE's initial focus is on India, Indonesia, Vietnam and the Philippines, the plan is to expand to other markets by bringing in new organisations with additional funds to invest.

It builds on the successful approaches developed by impact enterprise accelerator TRANSFORMwhich is led by Unilever, UK's Foreign, Commonwealth & Development Office and EY.

Investing in projects that drive systemic change

Our investment in CIRCLE includes a cash contribution from our Climate & Nature Fund, an impact-led investment platform through which we're investing €1 billion ($1.1 billion) by 2030 to deliver positive impact and business benefits. We aim to transform the way our products are made and reach end of life by investing in projects that drive systemic change, and collaboration with partners and co-financiers to scale solutions.

We're also contributing to Circulate Capital's Ocean Fundto support better investment and infrastructure in South and South-East Asia, as well as Latin America, where ocean plastic pollution is particularly acute.

At the launch during Capitol Hill Ocean Week in June, USAID Administrator Samantha Power said: "The CIRCLE Alliance brings together USAID's experience in empowering women in plastic waste value chains and our long-standing relationships with national and local governments - and of course, with civil society. Unilever has unrivalled knowledge of, and an unrivalled role in, plastic supply chains. EY brings experience in providing professional support to help businesses grow and thrive. This is an incredible foundation for the CIRCLE Alliance."

Gillian Hinde, EY Global Corporate Responsibility Leader, adds: "Responding to the urgent need for collective action to enable a circular economy for plastics across the global south, the CIRCLE Alliance represents a bold model of public-private collaboration. Together, we aim to support impact entrepreneurs as they incubate innovation and scale market-based solutions to the issue of plastic pollution, while generating jobs that respect waste workers' human rights, especially women."

To read more about our updated commitments on climate, nature, plastics and livelihoods, visit our Sustainability Hub.

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• Plastics