Today’s mainstream packaging system is unsustainable because it is still primarily linear—raw materials are used to make packaging for a product, and after the product is consumed, the packaging is thrown away. This model is creating important challenges, particularly where plastics are concerned.

At the same time, redesigning packaging for circularity won’t do much good if the waste management systems aren’t in place to ensure it is recycled, reused or composted in practice.

Danone is committed to help build effective, efficient and inclusive systems for collection, reuse and recycling. Today, Danone systematically looks to collaborate with public authorities and private companies to optimize formal Extended Producer Responsibility (EPR) and Deposit Return Scheme (DRS) systems. In fact, Danone helped pioneer the concept of EPR in France with the founding of Eco-Emballages (today known as CITEO).

In countries where collection systems for recycling are informal, Danone works with local communities governments and partners like the Inter-American Development Bank to improve standards for waste collection and invest in recycling infrastructure. Danone and the Danone Ecosystem Fund have launched projects to support waste pickers in 7 countries, including by ensuring they work in a safe environment, are paid appropriate wages and afforded greater social protection. As of 2018, close to 6,000 waste pickers have been professionally empowered, and more than 45,000 tons of waste are recycled each year through these projects.

Danone will also be stepping up investments in private initiatives. The company has invested over $5 million in the Closed Loop Fund, which develops large scale recycling infrastructure in the United States, and are looking to invest in similar initiatives, such as Circulate Capital in Southeast Asia.