Managing Sustainability Transformations : Barriers for Implementing Recycled Plastics in the Automotive Industry

Abstract: In the last three decades, the increased use of plastics is rapidly becoming a global environmental issue, resulting in growing landfills and pollution of air and water. The automotive industry, as a major demander of plastic materials, is starting to take responsibility with promised sustainability actions. One action relates to the concept of circular economy and closed loop thinking through the implementation of recycled plastics. However, the barriers of such implementations are still undiscovered, with research missing out on the challenges of strategic and business perspectives. The aim of this thesis is to asses and understand the challenges connected to implementing recycled plastics in the automotive industry, and to provide strategic recommendations. In order to identify the challenges, an empirical case study was carried out collecting data through 10 interviews with suppliers throughout the plastics refining chain. A cost calculation was also included, to highlight the economic potentials of recycled plastics. The findings address 6 themes as barriers for implementing recycled plastics in the automotive industry: economic, organizational, infrastructural, interactional, design and technical barriers. The barriers shed light on the challenges connected to the implementation of recycled plastics and concludes that the rate of recycled plastics in a car can be increased, which also increases sustainability and circular thinking. However, the rates could be further improved if managers were to consider the existing barriers when implementing higher rates of recycled plastics in their components.