Introduction

The circular economy is a framework for consumption that looks beyond the traditional take-make-waste industrial model. Economic and social capital is built and replenished, through three main principles: 

1. Removing waste and pollution through design
2. Keeping products and materials in use
3. Regenerating natural systems (5). 

The postal sector has an important part to play in the transition to a circular economy - not only in reducing its own negative impacts but in providing the logistics required for more sustainable consumption patterns globally. 

The SMMS programme therefore assesses the broader contribution of participants beyond just waste management - including reuse, recycling, product design, remanufacturing and collaboration across the value chain and beyond.

Emerging trends

Optimising routes and the use of reverse logistics will be key components of a circular economy, such as reducing unnecessary fuel consumption, and providing facilities for returning containers at post offices. The postal sector can also leverage its position to engage with government and other industries to drive change. 

Recyclable or sustainably produced packaging continues to be a focus for consumers. In IPC’s cross-border e-commerce shopper survey in January 2023, which had 32,000 respondents from 41 countries, 48% strongly agreed that they would prefer their parcel packaging to be reusable if the package were picked up from their doorstep. A further 30% expressed a strong preference that the responsibility to pay for sustainability is on the e-retailer, rather than the consumer.

The development of products such as a satchel for sending used coffee pods to a purpose-built recycling facility will also be a focal point in reducing the environmental impact of supply chains. This systemic shift to a more sustainable future will require investment and innovation, with an opportunity for considerable economic benefits. The postal sector can expect cost savings from recycling paper and packaging, growing demand for innovative products, and earnings from marketing opportunities from cross-sector engagement. . 

Results

• In the Sustainable Management Proficiency (SMP) questionnaire, the group scored 64.8% in the Circular Economy Focus Area. This was a new topic in 2019 and the group has reacted strongly to the inclusion by increasing the score by 18 percentage points in four years. It is now less than six percentage points behind the overall average SMP score of 70.6% in 2023. 
• For the fifth successive year participants scored best in questions related to Strategy and Policy. This is reflective of the importance of waste management to the sector from both a sustainability perspective and as part of broader business strategy. 
• The pillar exhibiting the biggest improvement is Disclosure and Reporting. Posts’ efforts to increase the levels of transparency and commitment to communicating their management of Circular Economy within the company’s organisations.
• Some posts may be more advanced in their circular economy transition than others, given regional differences in regulation and evolving legislation around waste. For example, European Union member countries must now recycle half of their packaging waste, and in California, businesses cannot use plastic bags and must recycle 25% of their plastic containers. As the group expands into new territories, posts like Pos Malaysia who joined in 2022 will bring new challenges, unique to their business. IPC is committed to ensuring their needs are met alongside improving the overall performance of the group.
  
   

Highlights of the group’s performance in 2023 include:

• In 2022, participants reused or recycled an impressive 69% of total non-hazardous waste.
• 18 out of 20 posts (which consider waste a material sustainability issue) define responsibility for embedding the principles of a circular economy at the board/executive level
• 22 posts work or collaborate with suppliers, and 19 with customers, on the circular economy
• 13 posts have publicly stated targets on waste/circular economy, and a further 5 have internal targets
• In line with best practice, 10 posts already refer to internationally recognised guidance when calculating and reporting data related to the circular economy. 
  
   

(5)  Ellen MacArthur Foundation https://www.ellenmacarthurfoundation.org/circular-economy/concept