We have partnered with IFFCO Group, a multinational FMCG group based in the UAE, to emphasise the role of innovation and collaboration in Arabia Area’s sustainability. This collaboration was marked by the signing of a Memorandum of Understanding (MoU), symbolising a strategic alliance with a focus on sustainable production and packaging of culinary creams in Saudi Arabia.
Our primary objective is to drive sustainability initiatives within IFFCO Group's manufacturing facilities, aligning with a shared commitment to minimising the industry’s environmental impact. The role of Tetra Pak is to leverage its expertise in advanced packaging solutions to enhance efficiency, reduce waste, and lower CO2 emissions at IFFCO's state-of-the-art factory.
By implementing global standards and advanced practices and technologies, we aim to minimise the environmental impact of IFFCO Group's operations and to ensure the maximisation of efficiency while upholding the quality and safety of culinary cream products.
Our partnership with IFFCO serves as an illustration of how collaborative innovation contributes to both enhanced performance and sustainability. We want to demonstrate that economic success and sustainability can coexist seamlessly in the region.
Our collaborative efforts aim to concentrate on key areas, all contributing to IFFCO's overarching goals of sustainability and economic growth in the region, such as:
Officially established in 2023, the Circular Packaging Association (CPA) is a cross-sectoral association incorporated under the Dubai Chamber to foster public-private partnerships and drive positive action toward a circular economy. The CPA brings together members from the private sector across diverse industries, collaborating closely with government bodies to support the integration of the principles of a circular and low-carbon economy into the packaging value chain in the UAE.
It is a collaborative effort by Tetra Pak and other CIRCLE (Coalition of Innovation in Recycling towards a Closed Loop Economy) founders including Unilever, PepsiCo, and Nestlé, who initiated this work in 2019. The formation of CIRCLE was formalised under the sponsorship of the UAE Ministry of Climate Change and Environment through the signing of an MoU (Memorandum of Understanding), with a specific focus on establishing a circular economy for packaging across the Gulf Cooperation Council (GCC).
CPA aims to support the UAE's vision of reducing packaging waste in landfills by establishing an economically sustainable model. This involves:
- Innovating recycling practices.
- Raising consumer awareness.
- Bringing together partners in the packaging value chain for actionable improvements.
- Acting as the authoritative voice on packaging sustainability.
- Providing data-based, multi-stakeholder insights and recommendations on legislation and policies related to sustainable packaging.
- Transforming the linear take-make-dispose system into one valuing post-consumer packaging waste.
As a founding member of CPA, Tetra Pak participated in the launch of a groundbreaking initiative by the Environment Agency – Abu Dhabi (EAD) aimed at addressing packaging waste pollution and promoting sustainability. Tetra Pak, along with other members of CPA, brought expertise to the initiative, contributing insights into recycling practices and sustainable packaging solutions, and ultimately showcasing commitment to sustainability in the region.
Closing the Loop
A €3 Million Sustainable Venture with our Partners OPI and STP to Transforms Carton Recycling Landscape in Arabia
Regarding our sustainability initiatives in the Arabia Area, Tetra Pak has partnered with two leading recycling companies in Saudi Arabia, Obeikan Paper Industries (OPI) and Saudi Top Plastic Factory (STP). With a joint investment of more than €3 million, the project aims to increase the collection and recycling of cartons by creating value for post-consumer cartons, as the goal is to recycle all the components of the packages.
Regarding our sustainability initiatives in the Arabia Area, Tetra Pak has partnered with two leading recycling companies in Saudi Arabia, Obeikan Paper Industries (OPI) and Saudi Top Plastic Factory (STP). With a joint investment of more than €3 million, the project aims to increase the collection and recycling of cartons by creating value for post-consumer cartons, as the goal is to recycle all the components of the packages.
Together with our partners, we created a recycling hub where collected cartons go through a pulping process to separate the paper fibres and PolyAl following these steps:
- OPI recovers the paper fibres and transforms them into high-quality recycled duplex boards
- STP recovers the PolyAl resulting from the process, dry-cleans it, and puts it through an extrusion process that turns it into plastic granules
- Plastic granules are sold to plastic recyclers and used as raw materials for products such as plastic pallets and crates
- The recycled duplex boards are employed for multiple end-uses including tissue boxes and other folded cardboard packages
Both OPI, responsible for recycling the paper fibres, and STP, which recycles the PolyAl, initiated their commercial operations in 2022. This project enables us to create new industries by collecting, recycling, and selling new products from potential waste. This is an example of how Tetra Pak is involved in creating circular economies in the Arabia Area through which it can protect our food, people, and the planet.
As part of our sustainability initiatives in the Arabia Area, Tetra Pak has formed a strategic partnership with Union Paper Mills (UPM), the UAE’s leading paper recycler, to enhance the collection and recycling of used beverage cartons (UBC) in the UAE. The aim is to create a commercially viable value chain for UBC collection and recycling, demonstrating a commitment to sustainability, and setting an example for the industry to follow.
This collaboration, initiated through a Memorandum of Understanding (MoU) signed at Gulfood Manufacturing 2022, involves:
- Tetra Pak supporting UPM with UBC recycling capabilities including the necessary technology to adapt a pulping line that was to be installed and operated at UPM premises in Dubai.
- Tetra Pak lending its support on the technical know-how for the recycling line.
- Tetra Pak facilitating engagements between waste management companies and UPM, further increasing the capacity and overall efficiency of UBC collection, transportation, treatment, and recycling system.
- UPM procuring and processing UBC to extract and recycle fibres, which were then be utilised to produce recycled paperboard for packaging applications.
On December 1st, 2023, as COP28 was unfolding, we announced the launch of the next stage of our partnership with UPM, marked by the signing of a ground-breaking AED 2,500,000 joint investment formalised by a recycling agreement. The partnership is progressing with the order of new recycling equipment, set for delivery and installation in the second half of 2024. We, along with our partner, are actively engaged in various initiatives, including technical assessments and industrial trials, contributing to the UAE's circular economy goals and fostering a comprehensive and effective recycling ecosystem.
This partnership extends beyond industry boundaries, involving government entities and reinforcing the commitment to sustainable manufacturing practices in the region. This milestone agreement represents a significant step towards achieving a circular economy in the UAE, aligning with our dedication to sustainability and responsible business practices.
Tetra Pak's strategic framework was unveiled in its Sustainability Report FY22. It emphasises the importance of innovative efforts and collaboration to address global challenges and highlights the significant progress we made in different aspects of sustainability.
The year 2022 constituted a milestone in our sustainability journey, allowing us to align with our ambition to achieve net zero emissions within Tetra Pak’s operational scope by the year 2030. On a global scale, Tetra Pak’s achievements in 2022 include:
- Operational greenhouse gas (GHG) emissions were reduced by 39%.
- 84% of the energy used originated from renewable sources.
- Sale of 8.8 billion plant-based packages and 11.9 billion plant-based caps resulted in 131 kilotons of CO2 savings.
- Investment of nearly €30 million in accelerating the collection and recycling of beverage cartons..
On a regional scale, we focused on collaboration and engagement with different stakeholders, leveraging diverse expertise and perspectives, and fostering comprehensive problem-solving and responsible decision-making to contribute to sustainability and innovation. Tetra Pak’s strategic initiatives in the region include recycling efforts, regulatory engagement, and education and awareness campaigns.
In KSA:
- Tetra Pak, in collaboration with STP (Saudi Top Plastic) and OPI (Obeikan Paper Industries), invested over €3 million in establishing a recycling hub. This facility processes cartons collected from Saudi Arabia and neighbouring countries, separating paper fibres from polymers and aluminum (PolyAl). The resulting materials, recycled duplex boards, and plastic granules are sold as new products, contributing to the creation of a circular economy by recycling and marketing potential waste. Both OPI and STP initiated their commercial operations in 2022, marking a significant step in creating new industries through the collection, recycling, and sale of products from potential waste.
- Tetra Pak partnered with SADAFCO in a campaign, "Zero Waste, Better Taste", implemented in 250 schools across Saudi Arabia. The campaign aimed to raise awareness among youth about the nutritional benefits of milk while promoting recycling and sustainability.
In UAE:
- Tetra Pak has forged an alliance with Union Paper Mills (UPM), the leading paper recycler in the UAE, initiated through an MoU at Gulfood Manufacturing 2022. The collaboration focuses on enhancing the collection and recycling of used beverage cartons (UBC) in the UAE. Tetra Pak supports UPM with UBC recycling capabilities and technology, facilitates engagements between waste management companies and UPM, and UPM processes UBC to produce recycled paperboard for packaging applications. The partnership progressed with the signing of a groundbreaking AED 2,500,000 recycling agreement during COP28, marking a significant step towards achieving a circular economy in the UAE.
- Tetra Pak partnered with Nuitree Food to establish a plant-based manufacturing facility in the UAE. The facility offers a comprehensive processing and packaging solution, likely contributing to resource efficiency and waste reduction in the production of plant-based products.
- Tetra Pak is a board and founding member of the UAE Circular Packaging Association (CPA) and is a member of the Policy Committee of the Circular Economy Council, established last year by the UAE Government to develop and implement policies that enable a low-carbon circular economy.
Over the years, our unwavering commitment to sustainability has been consistently demonstrated. This dedication is reflected in our adoption of sustainable practices within our operations, the provision of eco-friendly packaging solutions to our customers, and active participation in initiatives promoting sustainability and circularity within our industry and among consumers.
In this context, Marcelo Piva, the Regional Sustainability Director for the Middle East and Africa at Tetra Pak, earned distinction as one of the top 100 sustainability voices of 2023. This recognition featured prominently in a special COP28 report—an initiative orchestrated by Gulf Intelligence in collaboration with Climate Penpal. Notable figures in the sustainability realm, including H.E. Dr. Nawal Al-Hosany, Permanent Representative of the UAE at the International Renewable Energy Agency, Hanan Sakr, Head of Private Sector Engagement as part of the COP28 Presidency, and Roland Kaeppner, Executive Director of ENOWA, a project of NEOM, were also acknowledged.
Tetra Pak's contributions to the region's sustainability journey were recognised through the presentation of our evolving strategy, transitioning from an initial focus on environmental compliance at production sites to a comprehensive approach. Our current sustainability framework surpasses traditional recycling and circularity, encompassing ambitious goals such as carbon emissions reduction, carbon neutrality attainment, resource optimisation, and biodiversity preservation. In response to stakeholder expectations, Tetra Pak strategically established a dedicated sustainability team, ensuring the seamless integration of sustainability into our organisational culture. Moreover, we prioritised cultivating a diverse skill set within our team when creating sustainability positions, ensuring a nuanced balance between operational expertise, technological proficiency, regulatory insight, and effective communication—fundamental elements for impactful roles in environmental advocacy and systems development.
The insights presented in the report derive from commentary extracted from podcasts throughout 2023. The initiative spearheaded by Gulf Intelligence and Climate Penpal serves as a noteworthy extension of the dialogue fostered at COP28 in Dubai, emphasising not only the urgency of concrete efforts but also the significance of sustained discussions on environmental challenges beyond conference halls.
For more information, please refer to the report.
Tetra Pak has unveiled a comprehensive action plan to transform global food systems, emphasising sustainability, security, and resilience. The announcement, made in conjunction with COP28's Food, Agriculture, and Water Day, outlined four strategic pathways to expedite the transformation of food systems. Aligned with recommendations from the Food and Land Use Coalition, these pathways are:
Sustainable Dairy Transition:
We aim to address the environmental impact of dairy processing while supporting smallholder farmers’ productivity, profitability, and livelihoods.
Innovation for New Food Sources:
We plan to diversify food sources, including exploring alternative proteins, to complement traditional animal protein sources.
Food Loss and Waste Reduction
We will focus on developing food processing technologies to reduce waste during production, including innovative solutions to turn low-value side streams into value-added products.
Scaling Access to Safe Nutrition through Sustainable Packaging:
We aim to design and deploy sustainable food packaging solutions that preserve food quality and improve access to safe food.
Grounded in a robust evidence foundation, Tetra Pak's strategic plan embodies a comprehensive approach to tackling our industry’s environmental impacts through sustainable packaging. We are responding to the imperative for private sector involvement through proactive engagement with government stakeholders, policymakers, industry collaborators, customers, and influential opinion leaders. These endeavours underscore our commitment to making a substantial contribution to the transformation of global food systems, fostering collaboration and progress not only at COP28 but also in the ongoing pursuit beyond the pivotal event.
Tetra Pak restated its commitment to innovation for sustainability by securing the Best Sustainable Packaging Solution award at the Prime Summit Awards 2023—an event that celebrates excellence and innovation in the packaging industry in the Middle East and Africa. We also received the Innovation Award in Packaging during our participation in the Gulfood Manufacturing Exhibition 2023 under the slogan ‘Unlimited Innovation Options’. These two distinguished awards were bestowed upon us in recognition of Tetra Pak’s valuable contributions to the packaging sector thanks to the Tetra Prisma® Aseptic 330 Square with DreamCap™ 26.
The innovative packaging solution is a sustainable square-shaped carton package designed for aseptic—that is sterile and shelf-stable—storage and transportation of liquid food and beverage products. The following are the attributes of Tetra Prisma® Aseptic 330 Square with DreamCap™ 26:
Material Composition:
The packaging and cap are both entirely crafted from plant-based polymers, specifically unbleached kraft/pistachio paper and vegetable polymers.
Responsible Sourcing:
The plant-based polymers used in the solution are responsibly sourced according to Tetra Pak standards, which include compliance with Bonsucro Certification, Braskem Code of Conduct for Ethanol Suppliers, and Tetra Pak Code of Business Conduct for Suppliers.
Carbon Footprint Reduction:
The packaging underwent assessment by Carbon Trust, an independent organisation guiding environmental impact. The achieved carbon footprint reduction aligns with PAS 2060, an internationally recognised certification standard that establishes guidelines for achieving carbon neutrality or measuring and reducing the carbon footprint of a product or organisation.
Functionality:
The square-shaped design of Tetra Prisma® Aseptic 330 offers practical advantages in storage efficiency and ease of handling, benefiting manufacturers as well as consumers by providing stability and stackability. The packaging also includes the DreamCap™ 26, which enhances overall functionality, improving the user experience.
Established in January 2022, the KSA Packaging Working Group (PWG) is a collaborative industry forum in Saudi Arabia committed to redirecting post-consumer packaging away from landfills and championing circularity in packaging materials.
As active members of PWG, Tetra Pak and FMCG leaders like PepsiCo and Unilever, packaging and polymer suppliers, recyclers and knowledgeable partners such as Circular Economy Company and Gulf Petrochemicals and Chemicals Association, collaborate closely with the Ministry of Industry and Mineral Resources, aligning efforts with Saudi Vision 2030.
PWG's strategic pursuits include:
- establishing a Circular Economy through public-private partnerships.
- bringing global expertise to address circularity.
- identifying solutions for post-consumer packaging management.
- and supporting an Extended Producer Responsibility (EPR) framework.
This cohesive group undertakes pivotal initiatives, ranging from the establishment of a sustainable model for packaging waste management and the design of an EPR framework to launching impactful consumer awareness campaigns, fostering innovation, and facilitating insightful discussions on pertinent policies and regulations.
For Tetra Pak, being an integral part of PWG not only demonstrates a commitment to environmental stewardship but also allows it to play a pivotal role in shaping the industry's future by actively contributing to the development and implementation of sustainable practices and frameworks. Through collaboration and collective efforts, PWG provides Tetra Pak with a platform to influence positive change, driving innovation and contributing to the realisation of a circular economy within the regional packaging industry.