Circular Economy Takes Center Stage in Supply Chains

Circular Economy Takes Center Stage in Supply Chains

As sustainability concerns continue to shape business practices, circular economy models are gaining increasing traction across industries. One company at the forefront of this shift is CHEP, a global leader in reusable packaging solutions.

In a recent interview, Gabriel Ivan, CHEP’s Vice President of Sustainability for Europe, outlined the company’s ambitious plans to accelerate circular economy adoption in supply chains worldwide in 2025:

Expanding Circular Solutions

‘Our focus this year is on advancing and extending circular economy adoption to more producers and retailers globally,’ Ivan explained. ‘We’re seeing growing demand from companies looking to reduce waste and improve resource efficiency in their supply chains.’

CHEP’s reusable pallets and containers already enable a circular model, with assets continuously cycled between supply chain partners. Now the company aims to bring these solutions to new sectors and regions.

‘We’re targeting expansion in areas like automotive, fresh produce, and e-commerce fulfillment,’ said Ivan. ‘There’s huge potential to eliminate single-use packaging and optimize logistics through shared, reusable assets.’

Leveraging Data and Technology

Ivan highlighted how CHEP is harnessing digital technologies to enhance its circular offering:

‘We’re investing heavily in IoT sensors, blockchain, and AI to provide full visibility into asset movements and enable predictive maintenance. This allows us to maximize utilization and lifespan of pallets and containers.’

The company is also exploring new materials and designs to further extend product lifecycles. ‘Our R&D teams are testing recycled plastics, bio-based materials, and modular designs that enable easy repair and refurbishment,’ Ivan noted.

Collaboration is Key

For Ivan, industry-wide cooperation remains crucial to scaling circular models:

‘No single company can close the loop alone. We’re actively partnering with customers, industry groups, and even competitors to develop shared solutions and standards.’

He pointed to CHEP’s work with the Ellen MacArthur Foundation and involvement in initiatives like the European Reusable Packaging Alliance as examples of this collaborative approach.

Measuring Impact

As circular practices expand, Ivan stressed the importance of robust impact measurement:

‘We’re enhancing our lifecycle assessment capabilities to quantify environmental benefits across the full value chain. This data is critical for driving continuous improvement and demonstrating ROI to customers.’

CHEP aims to help customers avoid over 350,000 tonnes of waste and save 520,000 trees through its circular solutions in 2025.

Looking Ahead

Ivan is optimistic about the momentum behind circular economy models:

‘The business case is clear – circular approaches reduce costs, mitigate supply chain risks, and align with consumer and regulatory expectations. We expect adoption to accelerate rapidly in the coming years.’

As CHEP continues to innovate and expand its reach, the company looks set to play a pivotal role in reshaping global supply chains around circular principles in 2025 and beyond.


References: