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December 15, 2023

Reducing plastic waste

Plastic waste is a serious global issue and there are different ways governments, plastic converters, brands, waste collectors, consumers and Shell can help prevent harmful waste from entering the environment.

Reducing plastic waste (PDF, 4MB)
Aerial view of plastic milk cartons and water bottles

Before diving into the specifics of plastic waste, it’s important to understand the difference between linear and circular economies, as depicted below.

Motion-based flow chart explaining the process of a linear economy: Natural resources  are extracted, plastic resin is produced, that resin is converted to the final product, distributed, consumed and disposed of—where it then ends up in a landfill or is incinerated.
Motion-based flow chart explaining the process of a circular economy: Natural resources are extracted, plastic resin is produced, that resin is converted to the final product for distribution and consumption by consumers. Post-use, that material is picked up by recycling and sorted for either mechanical or advanced recycling. If advanced recycled, the material is converted to circular chemicals that can be used again in the production of plastic resin.

A linear economy follows the “take-make-dispose” model—this is where resources are quickly used and ultimately end up in landfills, being used as fuel or leaking into the natural environment. None of these outcomes are sustainable in the long run as they all result in the depletion of natural resources and the pollution of the natural environment (land, sea, and air).

There is however a better way, which is often described as a circular economy. The circular economy is based on three principles driven by design: Eliminate waste and pollution, circulate products and materials (at their highest value) and regenerate nature, according to the Ellen MacArthur Foundation.

In this economy, products are designed for long-term use and are repurposed or recycled when they reach the end of their lifespan. Overall, this is a more sustainable approach which helps to conserve resources and minimize waste.

Read on for more details on waste reduction and prevention.

Associated UN Sustainable Development Goals

Takeaways:

  • One key step in reducing plastic waste is designing for circularity, which enables both the reuse and recycling of plastic.
  • While mechanical and advanced recycling provide valuable benefits—advanced recycling is a great method for plastic waste reduction as it returns the polymer to its original, full-performance properties.
  • Shell Polymers is helping reduce plastic leakage through Operation Clean Sweep and other initiatives.

Shell Polymers’ waste reduction and

prevention efforts

OECD estimates that of the 353 million tonnes of plastic waste generated globally, only 9% is recycled, and the remainder goes to landfill or incineration—or is unmanaged after use.1 That’s why we’re deeply committed to enhancing waste management capacity and capability by improving collection, sorting, processing, and recycling systems throughout the world.

This means we partner with other firms to invest in infrastructure, accelerate technology, educate people to tackle plastic waste, and clean up waste at its source.

Shell Polymers is also a proud Blue member of Operation Clean Sweep (OCS), an alliance that aims to achieve zero plastic resin loss—effectively working to prevent plastic pellets, flakes, and power from polluting waterways.

One example of how Shell is helping at the local Monaca level is through our water treatment facility. This area of the plant repurposes the Ohio River water on-site to generate steam and provide cooling. The steam is primarily used to drive turbines that either generate electricity or power compressors, while the cooling capabilities help remove heat from our systems and control the temperature of equipment and processes.

In order to be used in these capacities throughout the plant, the river water must go through multiple treatment processes, including clarification and filtration. It also goes through further demineralization prior to being used as boiler feed water to generate steam. All of these efforts help ensure that the water is clean.

Ohio River in Pittsburgh at sunset

Extending the life of plastics

Reusing plastic material

One relatively easy way to cut back on plastic waste is to reuse plastic material—this can be as simple as reusing a product such as a plastic bag or repurposing a product without significant modification such as using a plastic container as a planter pot.

As a plastic converter, you might have a vested interest in plastic reuse as many countries have enacted plastic-related legislation and bans.

For instance, England has recently banned a range of single-use plastics. The ban, which comes into effect October 2023, includes single-use plastic plates, trays, bowls, cutlery, balloon sticks, and types of polystyrene cups and food containers.

These plans aid in the government’s efforts to eradicate avoidable plastic waste and will include a tax of £200 per tonne on plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic.2

A little closer to home, Canada is adopting “Single-use Plastics Prohibition Regulations (SUPPR)” as part of the government’s plan to address pollution, meet its target of zero plastic waste by 2030 and help reduce GHG emissions.

The regulations prohibit the manufacture, import and sale of single-use plastic checkout bags, cutlery and foodservice ware made from or containing problematic plastics, ring carriers, stir sticks, and straws. (Read more about the regulations.)

Plastic legislation is extending to the US too. One of the most comprehensive is California’s State Bill 54, which was signed into law on June 30, 2022. This law requires that by 2032: 100% of packaging in the state be recyclable or compostable, 25% of plastic packaging be eliminated and 65% of all single-use plastic packaging be recycled. Note that California ranks among the world's ten largest economies (between the UK and Canada).

At Shell Polymers, we support making all plastic reusable, recyclable or having their embodied energy recovered. In this way, single-use plastics wouldn’t be considered waste as they can support the circular economy and can have lower GHG emissions when compared to alternatives.

Upcycling

Aerial view of Bridgestone tires

This method is often left out of the “reduce-reuse-recycle” methodology probably for alliteration reasons…if we had to guess. Upcycling is essentially another way to reuse material that involves making a completely different (and often unexpected) type of product from plastic waste that is more valuable than the original product. In short? Upcycling is one of the many advantages of advanced recycling.

There are many examples of upcycling, but one we’re particularly proud of is the Bridgestone partnership with the Indianapolis Motor Speedway, Penske and Shell. As the series’ exclusive tire supplier, Bridgestone has incorporated ISCC PLUS certified recycled butadiene, using the International Sustainability & Carbon Certification (ISCC) mass balance approach. Butadiene is a monomer produced from hard-to-recycle used plastic shopping bags, film, stretch wrap and other flexible polymer packaging, developed in partnership with Shell, in all Firestone Firehawk race tires used at the Indianapolis 500.

With any upcycling example, please note that upcycled products should be recyclable to significantly contribute to a more sustainable economy.

End-of-life solutions for plastic

Beyond our own efforts, mitigating global plastic waste and improving circularity will need businesses, governments, NGOs, and consumers collaborating on the below initiatives.

Mechanical recycling

One of the most common recycling methods is mechanical recycling, which includes collecting, cleaning, and processing plastic waste to create new products. It’s referred to as “mechanical” because it involves physically changing the plastic into another form without altering its chemical composition.

While mechanical recycling is a step to reducing plastic waste, it has some limitations:

1

Creating reliable and high-quality products from mechanically recycled plastic is challenging due to the fact that shredding, melting, and re-forming the plastic over multiple life-cycles (3-5 times) introduces increasing amounts of contamination and structural weakness into the base polymer.

2

Not all plastics can be recycled using this technology and are currently incinerated or go to landfill. The plastic material that is recycled cannot be recycled infinitely as it eventually degrades over time. These hard-to-recycle plastics include snack bags, plastic film, garden furniture and more.3

3

Sorting the plastic waste stream can be difficult because our nation’s recycling infrastructure was not designed to handle hard-to-recycle plastics including bags, film, flexible packaging, and objects smaller than a water bottle.

Mechanical recycling will not solve the plastic circular economy challenge on its own but is a key technology in building a more sustainable future when combined with other processes.

Advanced recycling

Next up is a complementary form of recycling to mechanical recycling. Advanced recycling (also known as chemical recycling) utilizes chemical reactions to break plastic waste down into basic components that can then be used to create new products. Advanced recycling can help improve recycling rates and introduce products with more recycled content to the market.

Advanced recycling can be an energy-intensive process; therefore, it can have a higher product carbon footprint than mechanically recycled plastic. However, various life cycle assessments (LCAs)4 show that this emerging technology already has a similar carbon footprint to fossil-based naphtha. We will continue to see efficiency improvements as it scales to industrial production levels, while also producing a variety of high-performance virgin quality chemicals products and plastics.

Overall, this complementary form of recycling can be a favorable technology because:

1

This method in its various forms can process a wider range of plastics, including those that are difficult to mechanically recycle.

2

It can produce higher-quality recycled materials than its mechanical counterpart and these materials can be reused in markets that are difficult to serve such as food packaging.

3

Advanced recycling allows plastics to be recyclable an infinite number of times.

Shell is working on several technologies to divert hard-to-recycle plastic waste and is focusing on advanced recycling through pyrolysis: a special heating process that turns hard-to-recycle plastics into a liquid. This liquid, referred to as pyrolysis oil, replaces virgin hydrocarbons in the production of chemicals—which are the building blocks of a wide range of products we use every day, including new plastic products. Learn more details about chemical recycling.

There are also many other organizations innovating in this space such as University of Texas Austin researchers who are successfully recycling polyester with bacteria. Learn more about other advanced recycling trailblazers inspiring us with their efforts.

Title:

Breaking Down Pyrolysis | Shell Polymers

Duration:

1:08 minutes

Description:

Consumers are demanding more recycled material in plastic products. By thoroughly understanding different advanced recycling methods like pyrolysis, plastic converters like you can meet that demand.

Transcript:

[Uplifting music plays throughout video]

[Text appears]

Real talk: Consumers want more recycled material in the plastic products they buy.

[Visual]

3D visual of a plastic bottle

[Text disappears, new text appears]

Advanced recycling is helping to manage plastic waste.

Let’s break down one type of advanced recycling: Pyrolysis.

[Text and visual disappear, new text appears]

How it works:

Plastic waste is gathered and sorted.

Hard-to-recycle plastics can even be gathered for advanced recycling.

[Visual]

Grocery bag and plastic food container placed into recycling bin

[Text and visual disappear, new text and visual appear]

Waste is heated through an oxygen-free process called pyrolysis, converting it into pyrolysis oil.

The resulting liquid is processed and manufactured into chemicals.

[Visual]

3D pyrolysis oil flowing freely

[Text and visual disappear, new text and visual appear]

A third-party (such as ISCC) certifies the value chain, ensuring the use of circular resources.

[Visual]

ISCC logo

[Text displays]

Circular-certified chemicals are then used to make new plastic products.

[Visual]

Flowing pyrolysis oil transitions to 3D visual of plastic detergent bottles

[Text and visual disappear, new text appears]

In short?

Pyrolysis can help plastic producers meet consumer demand for more recycled material in plastic products while also helping to reduce plastic waste.

[Visual]

3D plastic pellet floating around.

[Text disappears, new text appears]

That’s what we like to call a win/win.

[Text disappears, visual appears]

Shell Polymers logo

How Shell Polymers can work with you

Designing for Circularity

If plastic converters such as yourself design plastic products with circularity in mind, this can help increase recycling rates, divert plastic waste from landfills and transform waste into plastic products through either mechanical or advanced recycling.

In fact, the American Chemistry Council (ACC) has a goal of creating a circular economy in which 100% of the plastic packaging in the United States is reused, recycled, or recovered by 2040.5 So, it’s more important than ever before to keep circularity top of mind when designing products.

Our team of talented industry experts can help you leverage certain types of PE and applications that are easier to recycle after consumer use. They’ll even work with you to design for circularity. For instance, our team is happy to have conversations with you on how to achieve mono-material type applications that are easier to recycle.

The American Chemistry Council (ACC) has a goal of creating a circular economy in which 100% of the plastic packaging in the United States is reused, recycled, or recovered by 2040.5

Rethinking packaging materials

Polyvinyl chloride (PVC) and other uncommon plastic packaging materials are difficult to mechanically recycle even in small amounts and have little after-use value. They make up 85% of hard-to-recycle materials6, so it is crucial to replace them with recyclable alternatives like HDPE.

Mixed material designs also make items harder to recycle. We see this in multi-layer plastic packaging—which combines PVC, PE, and other plastics into a single sheet of packaging materials. The mixed material designs also include hybrid packaging that combines paper and plastic (e.g., bags in boxes, juice/milk boxes, coffee cups, boxes with see-through windows and more). While these hybrid designs can effectively reduce the amount of plastic packaging, it makes the remaining material very difficult to separate.

A small change to a container design can truly make all the difference, so we’re excited to work with plastic converters in assessing package design and looking for opportunities to be more sustainable.

Next steps

  • Do you know if the products you make are recyclable? Talk to your customers about product usage locations and recycling rates.
  • Discuss strategies for creating greater circularity in the communities and sectors you serve.
  • Connect with a Shell Polymers expert about designing your products for circularity.

Cautionary Note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this webpage “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this webpage refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This webpage contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this webpage, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this webpage are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2022 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this webpage and should be considered by the reader. Each forward-looking statement speaks only as of the date of this webpage, December 15, 2023. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this webpage.

Shell’s net carbon intensity

Also, in this webpage we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

This webpage may contain certain forward-looking non-GAAP measures such as [cash capital expenditure] and [divestments]. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this webpage do not form part of this webpage.

We may have used certain terms, such as resources, in this webpage that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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