Unilever, USAID, EY launch new initiative to boost packaging circularity

ASIA – Unilever has joined USAID and EY to launch the CIRCLE Alliance, a new public-private initiative to tackle plastic pollution.

With a commitment of US$21 million, the alliance seeks to support small businesses and entrepreneurs within the plastics value chain.

The primary objective of The CIRCLE Alliance is to drive solutions for reducing plastic usage, improving waste management, and fostering circular economies.

The initiative places a particular emphasis on empowering women in the informal waste sector across the global south.

Rebecca Marmot, Unilever’s Chief Sustainability Officer, highlighted the initiative’s approach, “CIRCLE’s collaborative model of enterprise acceleration—delivered through a mix of grant funding and bespoke business support—will help scale both new and existing solutions for packaging circularity, whether that’s driving collection and recycling or reuse–refill models.

“Crucially, it will support many small to medium-sized enterprises (SMEs) and entrepreneurs that offer impactful, market-based solutions but are currently too small to work at the scale we need.”

The CIRCLE Alliance is initially focusing its efforts on India, Indonesia, Vietnam, and the Philippines, with plans to expand its reach by attracting additional partners and investment.

The initiative builds on the successful strategies of the TRANSFORM enterprise accelerator, a collaborative effort between Unilever, the UK’s Foreign, Commonwealth & Development Office, and EY.

Unilever’s contribution to CIRCLE includes a significant financial commitment from its Climate & Nature Fund, which is part of a broader €1 billion investment by 2030 aimed at driving systemic change and delivering business benefits.

Additionally, the company is investing in Circulate Capital’s Ocean Fund, which focuses on enhancing investment and infrastructure in regions heavily impacted by ocean plastic pollution, including South and Southeast Asia, and Latin America.

Unilever has already made significant strides in its sustainability efforts, reducing its virgin plastic use by 18% compared to a 2019 baseline.

The company has also increased the use of recycled plastic to 22% of its global portfolio, further underscoring its commitment to sustainability and circularity.

Meanwhile, in April, the company revised several of its environmental sustainability commitments, citing current geopolitical challenges and financial strains on consumers as driving factors.

Hein Schumacher, Unilever’s CEO, characterized this move as the dawn of a “new era,” emphasizing the need to prioritize shorter-term sustainability goals and to advocate more vigorously for addressing issues beyond the corporation’s direct control.

Schumacher announced several adjustments, including modifying Unilever’s pledge to reduce its use of virgin plastics.

Initially set to halve by 2025, this target will aim for a one-third reduction by 2026, amounting to a difference of 100,000 tonnes of fresh plastic annually.

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