LyondellBasell (LYB), Braskem, and Dow are the most ambitious plastic producers when it comes to circularity, according to the BloombergNEF’s (BNEF) 2024 Circular Economy Company Ranking.
The London-based research company assessed 40 firms – 20 brand owners and 20 plastic producers – to reveal who is leading and who is lagging behind in sustainable packaging. For plastic producers, production targets for recycled or bio-based materials carried the highest weight in BNEF’s methodology.
Results place LYB in first place, with a score of 78.6, six places higher than in last year’s ranking, when Borealis topped the table. BNEF highlighted LYB’s target to produce 2 million tonnes of circular polymers by 2030, one of the ‘most ambitious’ amongst the companies ranked.
BNEF said Borealis still performed ‘well overall’ with a target to produce 1.8 million tonnes of recycled and renewable polymers by 2030. ‘However, its ambition fell short of peers, who have also set targets to achieve 100% recyclable, reusable and recoverable plastics in their production,’ BNEF noted.
Braskem and Dow took second and third place, respectively, with their positions unaltered from last year.
Indorama Ventures, SCG Chemical, Borealis and Sabic – which jumped six places from last year – complete the ‘leaders’ group.
The ‘followers’ comprise TotalEnergies, PTT Global Chemical, Lotte Chemical, Ineos, Chevron Philips, Alpek, and ExxonMobil.
Shell, Formosa Plastics, Reliance, Hanwha, Sinopec, and PetroChina performed the worst and were categorised as ‘laggards’. PetroChina registered the worst result with a score of just 1.8. BNEF pointed out that Shell no longer specifies the volume or targeted date for its circular production. The British oil giant recently backtracked from its goal to turn 1 million tonnes of plastic waste into pyrolysis oil by 2025.
Plastic producers far from achieving 2030 goals
The report also reveals that circularity leaders are still far from achieving their 2030 goals.
Of those that shared progress, Indorama Ventures is the closest to achieving its sustainable production goals at 23%. TotalEnergies follows with 15%, SCG Chemicals with 14%, Borealis with 11%, Lotte Chemical with 9%, LYB with 6%, and Sabic with 2%.
BNEF said that many producers are still waiting for more recycling capacity to be commissioned to share their progress.
Whilst brands are struggling to source high-quality recycled plastic in many markets, producers are struggling to source scrap or sustainable feedstock to produce circular plastics, BNEF explained. Some producers have also reported weaker financial results in 2023 due to global overcapacity and flagging demand.
Chemical recycling to the rescue
BNEF said that all ranked producers other than PetroChina are counting on chemical recycling to help them bridge the gap between their ambitions and their current production levels. All 19 producers have announced projects or partnerships involving chemical recycling technologies.
LYB, for example, recently laid the foundation stone of its chemical recycling plant in Wesseling, Germany, expected to have an annual capacity of 50,000/tonnes.
Overall slowdown in ambition
BNEF found an overall slowdown in ambition to achieve a circular economy in 2023, with rising costs, lack of sorting and recycling infrastructure, and sourcing difficulties all playing a role.
‘Not everyone is pulling their weight’, BNEF said. Whilst brands like Coca-Cola, Nestle, and Unilever still ranked as some of the most ambitious, they have all recently shifted the goal posts on their sustainability targets.
A recent report by analytics firm Wood Mackenzie has also found that despite the rising tide of corporate commitments and regulatory targets, ‘the global economy remains wedded to an extractive, rather than circular, model’.