Rendering packaging sustainability transparent with blockchain technology

How much recycled plastic is really in a given product? Maximum transparency is a fundamental factor to achieve quotas and sustainability targets, whether it's in terms of consumers, authorities or the manufacturers themselves. Manufacturers who want to disclose how much plastic recyclate is actually used in packaging can only do so if they include the entire value chain. This is a complex challenge. Blockchain technology offers an innovative solution as it allows for seamless tracing along the entire value chain.

The complex international value chains represent a significant obstacle to using recycled materials. On the journey from waste to new packaging, there is always the risk of materials being contaminated or replaced by lower-quality plastics. This makes it more difficult to verify whether companies are actually complying with their disclosures regarding the proportions of recycled material.

Blockchain technology may open a path to more transparency and traceability. Even more, it could be a game changer. It provides a decentralised database that documents all transactions along the value chain. Each movement of materials and each manufacturing process can be digitally recorded to reassure companies and consumers that the final packaging only contains certified recyclates.

There are various possibilities for blockchain technology to be used in the packaging industry in order to ensure the traceability and ultimately the certification of recyclates.

It offers seamless transparency in the packaging industry. The digital recording of each single movement and change of materials creates an unalterable record. This is accompanied by digital certificates that can be issued for each batch of recyclates. These certificates contain information on the origin and quality of the material. In the blockchain, the certificates can be checked for all supply chain actors. Another characteristic of this technology is the linking of physical materials and digital data through technologies like RFIS tags, QR codes or other identifiers. This allows each packaging unit to be clearly identified and traced along the value chain.

Companies like Plastic Bank and Veolia, who are using blockchain technology successfully to ensure the traceability of plastics and recyclates, show us how it's done.

The Canadian social enterprise Plastic Bank uses blockchain to collect and recycle plastic waste in developing countries. The collected waste is recorded in a decentralised database and the waste collectors are awarded digital tokens for their work. To ensure that the origin of the recycled materials can be traced seamlessly and transparently, every transaction is recorded in the blockchain. This guarantees that the certified recyclates are the plastics that were actually collected and that they have not been replaced by new plastics.

The French recycling company Veolia also relies on this technology. The company uses blockchain to monitor the origin and purity of post-consumer plastics along the entire recycling chain. To trace every batch from collection to processing into granules, Veolia combines blockchain and RFID tags. A pilot project in Germany has shown how systems based on blockchain can increase transparency and better control recycling rates.

If packaging must meet specific quotas and comply with statutory provisions, this process can be made transparent and also certified via blockchain. For instance, the proportions of recycled material can be proven. Reusable systems are another area of application. Here, blockchain technology can document the number of reuses and the condition of the packaging to ensure efficient traceability. Blockchain can also support the entire life cycle of packaging by making disposal and recycling traceable in end-of-life management.

In light of new statutory requirements for the traceability and certification of recyclates, for example issued by the European Commission or the US Food and Drug Administration (FDA), the blockchain can support companies in fulfilling their documentation duties. This enables compliance with these regulations to be monitored in real time and manipulation to be prevented. And in return, regulatory authorities might find it easier to check companies' disclosures regarding recycling quotas and proportions of material. This would make promises of sustainability more credible and prevent greenwashing.

Blockchain technology has the potential to fundamentally transform the packaging industry. It offers transparent traceability of materials and builds trust in the authenticity and quality of recyclates. Projects like those of Plastic Bank and Veolia show that the use of blockchain in recycling is already possible today. With increasing technological maturity, the blockchain could become an indispensable building block of a transparent circular economy and ensure the traceability of recyclates in the long term.