
Unless you live under a rock, you know that sustainability stopped being a buzzword a long time ago. Today, it is nothing short of a business imperative. As more organizations in India embrace Environmental, Social, and Governance (ESG) principles, the role of recycled PET (rPET) in achieving these goals has become undeniable.
Beyond being an eco-friendly alternative to virgin plastic, rPET aligns with India’s sustainability goals, relevant laws, and global green standards, making it a vital element for businesses committed to responsible growth.
As a company that has been often regarded as the leading PET plastic recycler and rPET manufacturer in India, we believe that it is our duty to provide an honest breakdown of how rPET supports ESG goals in a meaningful way, along with government initiatives and actionable examples as that newer companies can join a crusade we started decades ago.
The “E” in ESG: Supporting Environmental Sustainability
The environmental pillar of ESG emphasizes reducing carbon footprints, conserving natural resources, and promoting a circular economy. Recycled PET plays a critical role in achieving these objectives.
1. Reducing Plastic Waste
India generates approximately 3.5 million tonnes of plastic waste annually, with PET bottles making up a significant share. Recycling PET into rPET directly reduces the volume of plastic heading to landfills or polluting ecosystems. At JB Ecotex Ltd, we are proudly recycling 1.7 Crore post-consumer PET bottles per day. This count steadily rises every day.
- How It Works: Recycling PET into rPET consumes significantly less energy (up to 60% less) compared to producing virgin plastic, cutting down emissions and conserving resources.
2. Circular Economy Contribution
Using rPET encourages a closed-loop system, where materials are reused instead of discarded. This aligns with India’s Extended Producer Responsibility (EPR) mandate under the Plastic Waste Management (PWM) Rules, 2016 (amended in 2022), which requires brands to recover and recycle a specified percentage of the plastic they use.
- Example: Coca-Cola India introduced bottles made with 50% rPET under its “World Without Waste” initiative, meeting both EPR and environmental goals.
3. Carbon Emission Reduction
Reports suggest that rPET production emits significantly less CO₂ compared to virgin PET, making it an ideal material for businesses striving to meet carbon neutrality targets.
The “S” in ESG: Driving Social Impact
The social pillar focuses on uplifting communities and ensuring equitable practices. The adoption of rPET and increased efforts in plastic segregation and recycling in India directly support the informal waste-picking sector while fostering sustainable livelihoods.
1. Empowering the Informal Sector
India’s recycling ecosystem heavily relies on waste pickers, who collect and segregate plastic waste. Leading PET recycling and RPSF manufacturing companies in India, like JB Ecotex Ltd. and JB rPET Pvt. Ltd., manufacturing rPET often collaborate with aggregators, indirectly supporting these workers’ livelihoods.
- Note: Companies like us, source and collect PET waste from aggregators and convert it into B2B rPET resins and recycled fibers, creating value for waste pickers and contributing to job creation.
2. Creating Awareness and Community Benefits
Brands that adopt rPET are also driving campaigns to educate consumers about waste segregation and recycling. This enhances community participation in sustainability efforts. What is the point of having influence if you won’t use it to drive change?
- Example: Nirmal Vasundhara, an EPR compliance agency, holds regular seminars to educate people about waste management and EPR in Surat.
The “G” in ESG: Strengthening Governance
The governance pillar of ESG involves adhering to regulations, maintaining transparency, and adopting responsible sourcing practices. rPET usage helps businesses comply with India’s evolving environmental laws while enhancing their brand reputation.
1. Compliance with EPR and PWM Rules
Under the Plastic Waste Management (PWM) Rules, companies must ensure that at least 30% of their packaging is recycled by 2025, with higher targets set for 2026 and beyond. Using rPET helps businesses meet these regulatory obligations.
2. Aligning with Global Standards
Businesses incorporating rPET also align with international frameworks like the UN Sustainable Development Goals (SDGs), specifically Goal 12 (Responsible Consumption and Production) and Goal 13 (Climate Action).
3. Building Transparency and Trust
Consumers and investors are increasingly favoring brands that demonstrate accountability and environmental stewardship. By integrating rPET, businesses showcase a commitment to sustainability, enhancing stakeholder trust.
- Example: ITC Limited incorporates rPET in its packaging materials, ensuring transparency in its sustainability reports and meeting stakeholder expectations.
Government Initiatives Supporting rPET Adoption
India’s government has introduced several initiatives and policies to encourage recycling and rPET adoption:
- Extended Producer Responsibility (EPR): Mandates companies to collect and recycle a percentage of the plastic they produce, encouraging the use of recycled materials like rPET.
- National Action Plan for Climate Change (NAPCC): Promotes the use of sustainable practices, including recycling, to reduce emissions.
- Plastic Waste Management (PWM) Rules, 2016 (Amended in 2022): Pushes for mandatory recycling and sustainable packaging solutions.
- Start-up India Initiative: Supports startups like Banyan Nation, which uses advanced technology to process recycled plastics, including rPET.
How Businesses Can Leverage rPET
- Adopt rPET in Packaging: Transition from virgin plastic to rPET for bottles, containers, and packaging materials.
- Collaborate with Recycling Partners: Build partnerships with recyclers and aggregators to ensure a steady supply of high-quality rPET.
- Educate Consumers: Run campaigns highlighting the importance of recycling and using sustainable materials.
- Report ESG Metrics: Track and disclose how rPET contributes to achieving sustainability goals to boost transparency.
A Sustainable Future with rPET
As India moves towards a greener economy, rPET offers businesses a practical way to integrate ESG principles into their operations. It reduces waste, supports communities, and ensures regulatory compliance, all while paving the way for a circular economy.
JB Ecotex Limited stands as a leader in sustainable manufacturing, excelling in the production of Recycled Polyester Staple Fibre (RPSF) and B2B rPET Resins . With a robust production capacity of 60,000 MT/annum for RPSF and 21,600 MT/annum of B2B rPET Resins, we are committed to quality and sustainability.
Truly transitioning to recycled plastic, not only helps brands fulfill their environmental responsibilities but also gain a competitive edge in an increasingly eco-conscious market. Take our word for it. Together, we can create a sustainable future-one recycled bottle at a time.