Assessing environmental impacts of a packaging product when transitioning towards Circular Economy

Abstract: Packaging is a fundamental part of the life cycle of products and today´s life. Its purpose is to protect and maintain the function of the goods during different stages of the life cycle. Hence, the packaging needs to fulfil the functional demands to contribute to a sustainable life cycle of the specific product (Muthu, 2016). Circular Economy (CE) is a methodology which aims to decouple the economic growth and the consumption of finite resources (Hughes, 2017). The idea is to close product and material flow through reuse, repair or recycling methods. The possibilities for circularity is mainly created in the product development and design phase (European-Commission, 2017). The thesis aim is to assess the potential environmental impact of an existing packaging product and investigate how a circular business model affects the environmental performance. The objectives to answer the aim was to map the wooden material flows of the packaging product and to assess the potential environmental impacts throughout the Lifecycle of a wooden pallet, i.e. the NONS pallet. The results pointed out that the pallet stands for the largest share of packaging products at the pallet production site at Jularbo. However, it only constitutes for under 1 % of the total outtake of logs (volume) in the supply chain of AB Karl Hedin. The MFA also displayed that the supply chain is utilising the bio-material in the best possible way with little or no possible improvements. Instead, the circularity possibilities were within the distribution phase of the lifecycle. The Cumulative Energy Demand of the NONS pallet was 376.4 MJ, with the main contribution from the production of the NONS pallet, including the supply chain. The outcome of the characterised results was that the production including the supply chain and the disposal stage contributed the most in all categories except for one, terrestrial ecotoxicity. The results of the EcoDesign improvements according to CE, show a reduction in 11 of the ReCiPe categories. For example, the global warming was reduced by 58 %. The CED was decreased in all categories, renewable and non-renewable. However, the EcoDesign improvements lead to an increase in five ReCiPe categories. The increase is related to the additional distance because of reverse logistics. Following recommendations are made based on the results. An implementation of a circular business model is recommended. The model is in line with the recommendations from the European Union and has the potential to decrease environmental impacts throughout the lifecycle. The implementation will require changes in the design of the NONS pallet and collaboration between stakeholders in the value chain to assess the trade-offs between impact categories. The plastic sheet has a high contribution to environmental impact categories and is recommended to be redesign in collaboration with stakeholders within the value chain. Temporarily, the plastic sheet should be placed on top of the pallet to improve the possibilities for reuse and recycling. The combination of a quantitative tool (LCA) and the qualitative (EcoDesign) provides valuable information on how the potential environmental impacts are affected when implementing a more circular business model. Although, there is difficultness of implementing the tools on an existing design and system. The tools should be implemented early in the product development phase to increase the CE options. The action towards circularity should be a proactive measure to ensure competitive advantages for the future.