USA & CANADA, October 21, 2024: The Compostable Field Testing Program (CFTP) and Closed Loop Partners’ Center for the Circular Economy are pleased to announce the launch of the CFTP’s much-anticipated data-sharing website, offering public access to detailed results from compostable packaging field testing over the last decade, through a dynamic interactive dashboard.

The CFTP’s new platform allows users to explore compostable product disintegration data with an unprecedented level of detail, helping composters, policymakers, regulatory agencies, brands, packaging manufacturers, researchers and consumers evaluate the potential of and opportunities for compostable packaging, and advance the practice of field testing.

The launch of the database is made possible through data donated from the Composting Consortium, an industry collaboration managed by Closed Loop Partners’ Center for the Circular Economy. This data comes from the Consortium’s groundbreaking study in 2023 which analyzed the disintegration of over 23,000 units of compostable packaging in the largest known field test of certified, food-contact compostable packaging conducted in North America. The CFTP provided support on field testing methodology, logistics and data analysis for this study. They also provided test items from their baseline sample kit, unlocking a larger sample set for data collection.

Data donated from the Consortium allowed CFTP to hit its critical anonymization threshold to open-source field testing data collected over the last decade. This marks a milestone for the composting industry, filling a historical data gap on compostable packaging disintegration in-field and providing access to a necessary baseline to inform improved recovery.

“The Composting Consortium’s goal is to support the recovery of compostable packaging, ensuring that the material disintegrates in real world conditions and brings value to composters and the organics stream. Field testing compostable packaging plays a key role in achieving this goal, and was a top priority for the Consortium in 2023, alongside characterizing contamination at compost sites,” says Caroline Barry, Program Manager at Closed Loop Partners’ Center for the Circular Economy. “CFTP played an instrumental role in the success of our disintegration study, and we’re thrilled to share data for their platform, providing the industry with insights that help move the needle on compostable packaging recovery.”

“We had to hit a critical threshold of data and repeated testing under certain conditions to be able to publish the data we’ve been collecting over the last 10 years,” says Emily McGill, Program Director of the Compostable Field Testing Program. “Now, with the data from the Composting Consortium’s disintegration study, we have not only more product disintegration data, but more results on the composters’ operating conditions that provide a crucial link to understanding product breakdown and refining field test methods.”

The collaboration between the organizations has enabled both to share valuable insights into the factors that affect compostable product breakdown, offering practical data to support better product design, composting practices and regulatory standards. The impacts of the Composting Consortium’s disintegration study extend beyond this initial data release. The Composting Consortium recently launched its Composter Innovator Program and Municipal Partner Platform, sharing insights and enabling collaboration to advance the circularity of food waste composting and food-contact compostable packaging.

Later this year, the CFTP will be releasing its refined methods for field testing and a field report, providing more valuable analysis and insights to inform thoughtful compostable packaging development and recovery in the U.S. and Canada.

Explore the Website

Visit the new website for key takeaways of the field testing results and to explore the interactive dashboard at compostabletesting.org.

Media Contacts:

Emily McGill, Program Director, Compostable Field Testing Program

[email protected]

Bea Miñana, Communications Director, Closed Loop Partners

[email protected]

About the Compostable Field Testing Program

The Compostable Field Testing Program is a non-profit research initiative dedicated to providing methods and materials to conduct field testing to composters across North America and beyond. Operating since 2016 as a collaborative venture between Compost Research & Education Foundation and its partner BSIbio, the CFTP provides a standard test kit and a customizable protocol for the common ‘mesh bag method’. When participating facilities share back their results, this data is collected by the CFTP, aggregated and anonymized for eventual public release in an online database. By helping composters evaluate and report on the real-world performance of compostable products, the program provides valuable data to support sustainable product development and composting practices.

About the Center for the Circular Economy at Closed Loop Partners

Closed Loop Partners is a firm at the forefront of building the circular economy. The company is comprised of three key business segments. Closed Loop Capital Management manages venture capital, buyout and catalytic private credit investment strategies on behalf of global corporations, financial institutions and family offices. Closed Loop Builders is an operating group that incubates, builds and scales circular economy infrastructure and services. The Center for the Circular Economy (‘the Center’) is the innovation arm of Closed Loop Partners. The Center executes research and analytics, unites organizations to tackle complex material challenges and implement systemic change that advances the circular economy. The Center’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets. Learn more about the Center’s work at https://www.closedlooppartners.com/the-center/

About the Composting Consortium

The Composting Consortium, managed by the Center for the Circular Economy at Closed Loop Partners, is a multi-year industry collaboration on a mission to build a world where organics are kept in circulation. The Consortium advances composting infrastructure and the recovery and processing of food-contact compostable packaging and food scraps in the U.S., to reduce food waste and mitigate climate impact. The Consortium brings together leading voices across the composting and compostable packaging value chain––from the world’s leading brands to best-in-class composters running the operations on the ground. Through in-market tests, deep research and industry-wide collaboration, the Consortium is laying the groundwork for a more robust, resilient composting system that can keep food waste and compostable packaging in circulation. For more information, please visit www.closedlooppartners.com/composting-consortium/

October 23, 2024, New York, NY — Today, the Consortium to Reinvent the Retail Bag, an industry collaboration managed by Closed Loop Partners’ Center for the Circular Economy, announced a renewed collaboration with many of the world’s leading retailers, expanding its groundbreaking work to eliminate single-use bag waste.

Retailers Target, CVS Health, The Kroger Co., Dollar Tree, Family Dollar, Meijer and Walmart are renewing their long-standing commitment in the Consortium, focusing on implementing more sustainable and convenient solutions to eliminate single-use retail bag waste. Building on four years of collaborative work and extensive in-market tests and research, this strengthened commitment will allow the Consortium to continue scaling proven bag waste reduction strategies.

Highlighting the successes of the last four years and charting a path forward for potential impact, the Consortium is also releasing a new report, Sparking a National Culture Shift to Reduce Plastic Bag Waste. The report shares findings from the Consortium’s largest in-market reusable bag tests in 2023, which spanned 160 retailers and 375+ stores of all sizes across Denver, Colorado and Tucson, Arizona. Through the tests, retail stores encouraged consumers to develop the habit of bringing their bag or opting to go without one, resulting in nearly 5% fewer single-use plastic bag transactions. This equated to the potential elimination of up to 9.5 million bags annually across the two test geographies, demonstrating the impact of supporting customers at different stages of their journey to reuse a bag or go without one.

Read the full report

The findings from the Consortium’s 2023 in-market tests serve as a blueprint for the Consortium’s upcoming work to scale bag waste reduction strategies. By acting together to advance solutions that support customers and avoid waste, the Consortium aims to achieve positive environmental impact and minimize unintended consequences.

“100 billion single-use plastic bags are used in the U.S. every year. From the Consortium to Reinvent the Retail Bag’s work over the last four years, we know that retailer collaboration and customer engagement are critical to making single-use bag waste a thing of the past. The Consortium is proud to bring retail industry leaders together in a renewed commitment to making circular strategies a reality on the ground. As we expand from ideation to implementation of solutions that support customers and reduce single-use bag waste, we aim to drive a cultural change toward reduction and reuse,” says Kate Daly, Managing Director and Head of the Center for the Circular Economy at Closed Loop Partners.

The Consortium’s continued collaboration signals the collective commitment of many retail industry leaders to implement tested solutions that move the needle toward zero waste goals and the importance of working together to achieve these. As policy around bags gains momentum in the U.S. and new solutions are needed to address the single-use bag waste crisis, the Consortium will share legislative best practices gathered from its holistic assessment and continue identifying, testing and implementing new innovative solutions.

“We are proud of the shared progress achieved with the Consortium and across the retail industry over the past four years, meeting shoppers where they are with accessible, adoptable alternatives to single-use plastic bags,” said Agata Ramallo Garcia, vice president, head of enterprise sustainability at Target. “The partnerships we continue to forge through the Consortium demonstrate the power and need for collaboration in order to innovate and scale solutions that will meaningfully reduce single-use plastic bag waste.”

“Reducing single-use bag impacts is a positive step for both the environment and our health,” said Jenny McColloch, vice president of sustainability and community impact at CVS Health. “We are excited to move forward with the next phase of work with the Consortium and come together to drive innovation across our sectors, especially as packaging policies continue to evolve and consumer experiences vary from retailer to retailer.”

“We believe that learning and working collaboratively is the best way to reduce the number of single-use plastic bags in the U.S.,” said Lisa Zwack, Head of Sustainability at The Kroger Co. “By assembling a number of major retailers in the initial phase of this work, the Consortium laid a foundation for innovation and systems change. We look forward to extending this collective effort to create more circular, waste-free systems that support our customers and our stores.”

With deepened collaboration and reach across the retail industry, the Consortium is poised to scale bag waste reduction and reuse strategies that enable behavior change and support a broader cultural shift to eliminate single-use bag waste.

Retailers of all sizes are invited to join the Consortium’s multi-year collaboration to engage their customers and communities, advance their sustainability goals and co-create a waste-free retail future.

Interested in learning more about the Consortium to Reinvent the Retail Bag? Learn more here.

Interested in reading the Consortium’s latest report? Visit here.

About the Center for the Circular Economy at Closed Loop Partners

The Center for the Circular Economy is the innovation arm of Closed Loop Partners, a firm at the forefront of building the circular economy. The Center executes research and analytics, unites organizations to tackle complex material challenges and implements systemic change that advances the circular economy. The Center for the Circular Economy’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets. Learn more about the Center for the Circular Economy at closedlooppartners.com/the-center/

About the Consortium to Reinvent the Retail Bag

The Beyond the Bag Initiative, launched by the Consortium to Reinvent the Retail Bag, aims to identify, pilot and implement viable design solutions and models that more sustainably serve the purpose of the current retail bag. Closed Loop Partners’ Center for the Circular Economy manages the Consortium, with Target, CVS Health and The Kroger Co. as Strategic Leads, and Dollar Tree, Family Dollar, Meijer and Walmart as Supporting Partners. Learn more about the Consortium here.

October 21, 2024, New York, NY – Today, Closed Loop Partners’ portfolio company, Sage Sustainable Electronics (“Sage”), announces their acquisition of Relectro, a national provider of electronics repair, refurbishment and logistics services. The acquisition expands Sage’s offerings into repair services, bolstering the company’s existing IT Asset Disposition (ITAD) services. The acquisition was completed through a follow-on investment from Closed Loop Partners’ buyout private equity group focused on acquiring and growing platforms to advance a circular economy.

Closed Loop Partners first joined forces with Sage in 2023 as a majority shareholder in the company, aiming to accelerate the company’s growth and strengthen its position as a leading provider of sustainable ITAD services in North America. Since then, Sage has been at the forefront of advancing a circular economy for electronics, providing secure reuse and recovery solutions to businesses seeking to sustainably dispose of their IT assets.

Today, Sage faces an evolving IT industry. Devices are being replaced much more often, with an average refresh cycle by IT departments of two years for smart phones, four years for laptops and five years for printers. Amidst increasing demand for repair services to extend the lifecycle of electronic devices, Sage completed its acquisition of Relectro to provide a comprehensive suite of solutions that can keep more devices in circulation.

Since 2011, Relectro has specialized in electronics repair, focused on refurbishing products for continued use before disposal. The company provides repair-on-demand services to leading warranty repair firms, insurance firms, mobile device providers and more. With a repair rate of over 25,000 assets per year across wireless handsets, laptops, tablets and other devices, Relectro is positioned to add significant capacity for advanced repair services to Sage’s platform.

“This marks an important milestone for Sage as we expand our platform with Relectro. Their wide-ranging partner network and deep technical expertise are key assets to our growth, adding strategic expertise to our platform,” said Bob Houghton, CEO of Sage Sustainable Electronics. “Relectro enables us to expand depot repair services for enterprise clients––extending lifecycles, reducing costs and increasing sustainability.”

The geographical proximity of the two companies creates more opportunity for a fully integrated platform of repair services, asset management, reverse logistics and recycling services for the wireless and smart device technology industry. Sage recently announced their fourth national repurposing center in Montgomeryville, PA, which is located less than 10 miles away from Relectro’s 40,000 square foot facility in Telford, PA.

“We look forward to this next phase of growth as a part of Sage Sustainable Electronics’ platform,” said Brian Itterly, Founder & CEO of Relectro. “For over a decade, Relectro has provided critical repair services for electronics––a key part of keeping devices in circulation for longer. Today, our repair and refurbishment services complement and build on Sage’s reuse and recovery services, offering a wider range of solutions for businesses across the country.”

This is the seventh investment to date from Closed Loop Partners’ buyout private equity group, employing a buy-and-build strategy to partner with companies and scale platforms and enabling technologies across plastics & packaging, organics, circular technology and textiles to develop, accelerate and modernize circular supply chains and recycling & reuse infrastructure.

The investment to support Sage’s acquisition of Relectro builds on Closed Loop Partners’ robust portfolio of investments to advance circularity for electronics––one of the key focus areas of the firm, alongside packaging, textiles, organics and more. Closed Loop Partners’ broader portfolio of investments in electronics circularity spans IT asset management and disposition, disassembly and remanufacturing, collection and reuse, and end-of-life electronics recycling.

“Closed Loop Partners is proud to back Sage Sustainable Electronics’ acquisition of Relectro, laying the foundation for an expanded platform with strong operational processes, complementary geographical locations and continued progress toward electronics circularity,” said Jackson Pei, Co-head of Closed Loop Partners’ buyout private equity strategy. “We look forward to supporting Sage’s continued growth with their now expanded IT Asset Disposition and repair services.”

Following the acquisition, Sage will continue to grow its services and geographical footprint, positioning the company for wider reach to keep more electronics in circulation and out of landfills.

To learn more about Closed Loop Partners, please visit here.

To learn more about Sage Sustainable Electronics, please visit here.

To learn more about Relectro, please visit here.

About Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The company is comprised of three key business segments: its investment arm, Closed Loop Capital Management; its innovation center, the Center for the Circular Economy; and its operating group, Closed Loop Builders. Closed Loop Capital Management manages venture capital, buyout private equity and catalytic private credit investment strategies.

Closed Loop Partners’ buyout private equity strategy captures this market opportunity for the circular economy by identifying solutions, originating innovative opportunities, and building and scaling platforms and enabling technologies across plastics & packaging, organics, circular technology and textiles to develop, accelerate and modernize circular supply chains and recycling & reuse infrastructure.

About Sage Sustainable Electronics

Sage Sustainable Electronics, based in Columbus, Ohio is a leading provider of IT Asset Disposition (ITAD) services, safely and securely refurbishing used IT assets for another life. Founded in 2014 by Bob Houghton, Sage’s platform has expanded to include four national repurposing facilities across three states, processing nearly one million assets annually. Sage extends the useful life and increases the recovery value of IT assets for its clients, which include Fortune 100 companies across various industries, including finance, healthcare and defense.

About Relectro

Relectro is a national leader in electronics repair, refurbishment, asset management and electronics recycling. Founded in 2011, Relectro handles the entire device lifecycle of electronic mobile devices consisting of smartphones, computers, laptops, tablets, smartwatches, gaming, IoT and various other mobile electronics. It operates a R2V3 certified state of the art and full-service depot facility working with many insurance, extended warranty, EDU, enterprise and asset disposition partners in the U.S.

 Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

STERLING, Va., Oct. 9, 2024 — Molg Inc. (“Molg”) announces the closing of $5.5 million in seed funding to scale the company’s circular manufacturing processes for electronics and electrical components. Closed Loop Partners’ Ventures Group led the round, with participation from Amazon Climate Pledge Fund, ABB Robotics & Automation Ventures, Overture, Elemental Impact and Techstars. The company plans to use funding to scale production capacity and meet growing customer demand for circularity and automation.

The funding round is closing at a pivotal time, amidst growing urgency to keep electronics in circulation and recover the critical minerals needed to support the clean energy transition. Today, tens of millions of tonnes of electronic devices are discarded or become obsolete each year. In 2022, only 22.3 percent of e-waste was recycled, according to data from the UN Global E-waste Monitor, resulting in the vast majority of electronics being sent to landfill, where they release greenhouse gasses and chemical substances into the environment. Over $62 billion worth of critical minerals and precious metals are also left unrecovered within electronics waste, missing the opportunity for reuse and remanufacturing for clean energy supply chains. As these materials grow increasingly scarce, expensive and geopolitically sensitive, more solutions are needed to ensure they are kept in circulation.

“After a decade in consumer electronics manufacturing, we founded Molg because we saw firsthand how current design, production and recovery processes—or the absence thereof—contribute to the massive problem of e-waste,” said Molg cofounder and CEO Rob Lawson-Shanks. “Achieving true circularity requires a fundamental shift in the underlying systems that support demanufacturing. It starts with better design and is enabled by dynamic automation. This funding allows us to accelerate our work at both ends of a product’s life, designing for circularity from the start and recovering valuable devices, components and materials through automated disassembly.”

Molg is tackling the e-waste challenge through a comprehensive circular manufacturing process powered by robotics and design. Its robotic microfactories can autonomously disassemble complex electronic products to recover valuable components for reuse, remanufacturing or recycling. The team also partners with leading manufacturers to design electronics with circularity in mind—ensuring one product’s end is another’s new beginning.

“We invested in Molg because they are rethinking how critical materials can be recovered from electronics, addressing a historically overlooked source of valuable resources. Their process maximizes the value of recovered materials and allows for local recovery where materials are most needed––important parts of advancing the circular economy,” said Aly Bryan, Investor on the Ventures Group team of Closed Loop Partners, a firm focused on building the circular economy. “They are helping to unlock a scalable solution that not only reduces environmental impact but also strengthens supply chains by recovering materials domestically.”

Molg has its headquarters and manufacturing facility in the heart of the data center industry in Northern Virginia. The company’s seed round of funding will be used primarily to scale production to meet customer demand for circular supply chains.

“Amazon remains committed to our decarbonization efforts and supporting technologies that aim to improve the circularity of our supply chains,” said Sam LaPierre, Investor at Amazon’s Climate Pledge Fund. “Efforts to improve hardware demanufacturing and material recovery, such as those developed by Molg, are promising technologies that can help advance the recycling and material recovery industries at scale. We are excited to support the growth of Molg, a company at the forefront of unlocking circular supply chains for electronics.”

Molg has already installed robotic disassembly Microfactories at Sims Lifecycle Services and is rolling out to ITAD facilities of leading hyperscalers. The team also works on circular design with leading companies like HP, Dell and ABB Robotics & Automation Ventures to redesign products for the automated recovery of valuable components, remanufacturing and recycling.

“Our investment in Molg will open new possibilities for using industrial robots in the recovery and recycling of data center equipment,” said ABB Robotics Managing Director Business Line Industries, Craig McDonnell. “By helping to enable the automated disassembly and responsible disposal of disused electronics, we are excited to be playing our role in transforming the circularity and sustainability of the data center sector.”

“We invested in Molg to help solve two critical challenges: dealing with mountains of toxic waste that are growing every year, and meeting the rapidly increasing demand for critical minerals in batteries, data centers, and electronics,” said Elemental Impact CEO Dawn Lippert. “Molg is an example of how innovation in AI and robotics can be good for the planet and consumers: why would we landfill precious metals when we can recover them domestically and reuse them?”

“The AI boom and rapid expansion of data centers is coinciding with an energy transition that demands an immense supply of critical minerals. Molg helps hyperscalers and electronics manufacturers tap into the supply of retired servers and other e-waste that still contain immense material value,” said Overture Climate VC Managing Partner, Shomik Dutta. “Molg’s robotic solution not only moves the industry towards circularity; it presents a supply that is cheaper and more domestically secure.”

About Molg
Molg tackles the growing e-waste problem by making manufacturing circular. The company’s robotic microfactory can autonomously disassemble complex electronic products like laptops and servers, helping keep valuable components and materials within supply chains and out of landfills. Molg partners with leading electronics manufacturers to design the next generation of products with reuse in mind, ensuring that one product’s end is another’s beginning. To learn more, visit molg.ai.

About Closed Loop Partners
Closed Loop Partners is at the forefront of building the circular economy. The company is comprised of three key business segments: its investment arm, Closed Loop Capital Management; its innovation center, the Center for the Circular Economy; and its operating group, Closed Loop Builders. Closed Loop Capital Management manages venture capital, buyout private equity and catalytic private credit investment strategies. The firm’s venture capital group, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough solutions for the circular economy since 2016. The Closed Loop Ventures Group’s portfolio includes companies developing leading innovations in material science, robotics, agritech, sustainable consumer products and advanced technologies that further the circular economy. Closed Loop Partners is based in New York City and is a registered B Corp. To learn more, visit closedlooppartners.com

About ABB Robotics & Automation Ventures
ABB Robotics & Automation Ventures (ABB RA Ventures) is the business-led strategic venture capital unit of ABB Robotics & Discrete Automation, part of ABB’s corporate venture capital framework: ABB Ventures. Since its formation in 2009, ABB Ventures, formerly known as ABB Technology Ventures (ATV), has invested around $500 million into startups having a close fit to its electrification, robotics, automation, and motion portfolio. For more information, visit www.abb.com/ventures

About Elemental Impact
Elemental Impact is a non-profit investing platform that invests in climate companies and projects with deep local impact. Elemental has a 15-year history of investing in real world solutions that make neighborhoods and homes cleaner, healthier, safer, and more affordable. The investing platform scales climate technologies through a three-tiered approach: deploying catalytic capital, providing project expertise, and prioritizing community partnership. Elemental’s portfolio is active nationwide as well as in more than 100 countries and has raised over $10B in follow-on funding.

About Overture
Overture Climate VC is an early-stage climate tech fund with a focus on helping founders win government support and navigate regulatory complexity. For more information, visit https://www.overture.vc/

Disclaimer:

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

Behind the rapid and improbably simple exchange of products in stores, from cashier to customer (and back, as clothes are often returned), are legacy supply chains struggling to keep up with the speed required of retail today.

The rapid pace of trends and increasing volume of returns are up against slow supply chain timelines and complex logistics. This translates to a lot of excess clothing––most of it ending up in landfill. Textile recycling and recovery systems are also not yet scaled to recover all these items; often, the best case scenario is items like jeans turning into home insulation. They don’t become new jeans again.

The high cost of waste, to both retailers and consumers, has sparked the need for change, but the apparel industry has ebbed and flowed in its transition to circularity. Yet, in the past six months, the tides have been turning. What makes the next decade the time for the industry to rise to the challenge of an urgent waste crisis?

Retailers are hurting––and change is the only option.

The proliferation of style requirements, and long timelines between a brand placing their order and receiving it, have made it increasingly difficult for retailers to purchase only what they need––and to design in ways that minimize overstock and oversupply. The result is anywhere from 12-40% of clothing is unsold at the end of the season[1]. These are clothes that the brands have already paid their manufacturers for and are now taking losses on through liquidation channels. Even when a product does make it to a consumer, it will likely be worn fewer than seven to 10 times before being discarded,[2] a result of increasing consumer demand for the new and novel and manufacturers’ decisions to prioritize lower cost, lower quality construction to bring products to market quicker.

In parallel, return rates are soaring––up to 20-30% of all products purchased.[3] This costs retailers up to $30 per returned item––or even 2/3 the cost of an item––regardless of whether they’re going to be able to sell that product again.[4]  This is made more challenging because a large percentage of returns are damaged on their way back to shelves[5]. Those never make it back on shelf to begin with, even if they were efficiently processed and listed for resale. Every year, more than 9 billion pounds of material end up in landfill from consumer returns.[6] It’s no surprise that historically lenient policies for returns are beginning to fade away[7] as retailers wrestle with finding a balance between top quality customer service and operating a profitable business.

As retailers struggle to right the wrongs of legacy business models, circularity could create opportunities to reduce cost and waste together.

Consumers are aware––and want to see change.

The average consumer purchases 53 new items per person per year––U.S. consumers throw away more than 80 pounds of clothes in the same timeframe.[8] Consumers are increasingly engaging with “returnless refund” models, where retailers offer to refund a consumer a purchase and allow them to keep the product to save shipping and processing costs on returns[9] (which make very clear that the ultimate destination should they have returned the product is landfill), and are asked to engage directly with the disposal themselves. Legacy donation-led systems have also come under increased scrutiny, and it’s become clear just how much business-as-usual results in products being shipped overseas or ultimately landfilled.

In parallel, large retailers are promoting resale and takeback channels at unprecedented levels (see Trashie’s recent announcement with Steve Madden for their takeback recycling program), not to mention the mainstreaming of resale through models like ThredUp, The RealReal and others. Rental is also on the rise again, and it’s creating a sense of community, as our portfolio company, By Rotation, has demonstrated.

In other words, consumers want to be a part of the solution.

High profile “failures” are encouraging all of us to think again

Earlier this year, early innovator in textile recycling, Renew:cell, declared bankruptcy[10]––a sobering moment for all of us who work in this industry. The reality is that less than 1% of textiles are recycled into new fibers annually,[11] and while the necessity of textile recovery is widely recognized, it’s been seen as a Sisyphean task by the industry.

The cost to purchase end-of-life materials is often high. This is driven up by competition with cheaper downcycling options that do not require the same level of stringent sorting as more complex molecular processing technologies. Most of those technologies are currently operating sub-scale, with significant upfront capital requirements to grow to a point where they can produce at parity to virgin fibers.

Where is the opportunity? Necessity is the mother of invention and we’ve seen a remarkable evolution in the willingness of brands and institutional investors to support first-of-a-kind facilities supporting next life textile collection, sorting, processing and recycling in the past twelve months. An evolving capital stack is positioning us to help emerging technologies achieve scale more quickly, as more innovators come into the market to focus on lower cost solutions.

More sophisticated capital partners, and a new crop of innovators––let’s do this!

We’re (finally) all in this together.

In short, if you’ve been an innovator working to advance textile circularity, or a brand responsible for reducing waste in your supply chain, the past decade has been challenging.  But in the past two years, the narrative has shifted, and we believe the momentum has returned. Brands, consumers and innovators are coming together with urgency––because the problem of textile waste is not just one for the planet. It is an existential threat––and opportunity––for the industry itself.

At Closed Loop Partners, we’re excited to be on the front lines of this transition. We hope you’ll join us.

If you are interested in continuing to engage on this topic, Closed Loop Ventures will be co-hosting a session during New York Climate Week with the Los Angeles Cleantech Incubator. Please reach out if interested in attending at [email protected].

Note from the Author:

I am lucky to have gotten to evolve my thinking on the apparel industry in real time with a host of industry experts over the past few months. Many thanks to the Circularity24 team from Trellis––and my co-panelists from Eileen Fisher, Fillogic, Debrand and Loop, the team at Home Delivery World, innovators in textile design, reverse logistics, and recycling––including CLVG portfolio companies Browzwear, Hyran, Fillogic and so many others for helping to push my thinking.

Disclaimer:

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

[1] Source: https://www.theguardian.com/fashion/2024/jan/18/its-the-industrys-dirty-secret-why-fashions-oversupply-problem-is-an-environmental-disaster

[2] https://stateofmatterapparel.com/blogs/som-blog/10-scary-statistics-about-fast-fashion-the-environment

[3] Source: https://3dlook.ai/content-hub/apparel-return-rates-the-stats-retailers-cannot-ignore/; https://coresight.com/research/the-true-cost-of-apparel-returns-alarming-return-rates-require-loss-minimization-solutions/; https://medium.com/@shaku.tech/the-challenge-of-high-return-rates-in-the-fashion-industry-ab51878d0073

[4] Source: https://www.modernretail.co/operations/the-case-for-and-against-return-fees/;  Source: https://www.modernretail.co/operations/the-case-for-and-against-return-fees/; https://www.letsbloom.com/blog/true-cost-of-ecommerce-returns/

[5] Source: https://www.cnn.com/2021/01/30/business/online-shopping-returns-liquidators/index.html; https://www.newyorker.com/magazine/2023/08/21/the-hidden-cost-of-free-returns

[6] Source: https://www.fastcompany.com/90756025/product-returns-are-wasteful-for-companies-and-the-planet-heres-how-to-change-that; https://earth911.com/business-policy/rescuing-product-returns/

[7] Source: https://www.cbsnews.com/sacramento/news/more-retailers-doing-away-with-free-returns/; https://retailwire.com/free-returns-are-starting-to-disappear/

[8] Source: https://fashionunited.com/global-fashion-industry-statistics

[9] Source: https://www.cbsnews.com/news/returnless-refunds-retailers/; https://www.gotrg.com/company/news-events/news/this-is-everything-to-know-about-returnless-refunds-and-keep-it-options

[10] Source: https://www.renewcell.com/en/renewcell-decides-to-file-for-bankruptcy/

[11] Source: https://www.mckinsey.com/industries/retail/our-insights/closing-the-loop-increasing-fashion-circularity-in-california

Over the last decade, the use of reusable water bottles in particular has grown––many of us are familiar with the ubiquitous airport water fountains––but broader options for refill remain somewhat underwhelming. It’s, in a word, still.

Many circular reuse models today are appealing to environmentally driven consumers. While this is a growing demographic, it is still not scaled. The question remains: how do we get reuse into the mainstream? How do we get it to, in a word, sparkle?

To gain mainstream traction and drive a shift, solutions need to be better without compromise. Along with environmental benefits, they need to be more delightful and cost less to the end consumer.

Enter Aerflo. John Thorp and Buzz Wiggins, co-founders of Aerflo, started on this journey as outdoor adventurers frustrated that the beverages they wanted to drink only came in single-use, disposable packaging. Together, they embarked on building a solution that would make it possible to enjoy these beverages without waste and create a user experience that catered to the on-the-go lifestyle––all driven by a circular model.

Demand for sparkling water is on the rise in the U.S., with the market anticipated to grow at a compound annual growth rate of over 12% from 2023 to 2032. Today, we are not only seeing a diversity of options on retail shelves, but also a wave of innovations making it possible for consumers to make their own sparkling water. We have seen the growth of at-home countertop devices, such as Soda Stream and Aarke, and in-office spaces with Bevi, introducing a shift away from single-use packaging. But for consumers who want sparkling water on the go, single use has been the only option.

After years of building, John and Buzz launched Aerflo with the first-of-its-kind portable Aerflo Aer1 System that can turn any drinkable water source into refreshing sparkling water with the press of a button. The bottle houses a carbon capsule that can carbonate four full bottles of water. It is designed so that users can see carbonation happen, to gauge how much sparkle to add. The small bubbles mimic those in sparkling water sold in stores, bringing sparkling water to consumers without the need to ship glass bottles or cans filled with water thousands of miles. By inspiring and enabling reuse, Aerflo helps reduce waste and greenhouse gas emissions.

John and Buzz started with the concept of bubbles-on-the-go. How delightful would it be to add bubbles to beverages anywhere in the world, elevating the experience of drinking water, whether someone was on top of a mountain or running through New York City?

Every detail was carefully considered and crafted, ensuring that convenience and taste were not compromised for circularity––a critical factor to the success of reuse.

When capsules are empty, customers ship them back to Aerflo (in the same packaging, and with a return label pre-affixed). This immediately triggers the customer’s next order to be sent––so no subscription is needed. In the company’s fully automated, circular refill facility in New Jersey, the returned Aerflo capsules are cleaned, inspected and refilled before being shipped out to the next customer.

The model is entirely circular. Aside from the clear environmental benefits (each capsule can prevent the need for 330+ cans in its lifetime) this system drives cost savings for customers (60%+ less than single use) and gives the option of still or sparkling at any moment.

Over the past decade, Closed Loop Partners has reviewed hundreds of reuse models through our Closed Loop Ventures Group; we have also tested reuse models in-field and conducted reuse research through our Center for the Circular Economy. And now, Closed Loop Ventures Group is thrilled to announce our investment in Aerflo, a company offering what we believe is a natural choice for on-the-go consumers looking for an elevated experience.  Aerflo drinkers don’t need a subscription or commitment and the company offers better value: it is less expensive on a per liter basis than buying carbonated bottled water and offers a more delightful experience to aerate water anywhere, helping make reuse an everyday habit.

About Closed Loop Ventures Group at Closed Loop Partners

Closed Loop Partners has been a leader in the reuse movement for almost a decade. Today, we are actively catalyzing the shift to reuse through our investments and in-market tests––unlocking critical insights and supporting reuse solutions in the field to prepare them for scale. From years of in-field testing and deep research, we have proven that to build successful reuse systems, we need to make reuse a natural choice.

Closed Loop Partners is at the forefront of building the circular economy. The company is comprised of three key business segments: its investment arm, Closed Loop Capital Management; its innovation center, the Center for the Circular Economy; and its operating group, Closed Loop Builders. Closed Loop Capital Management manages venture capital, buyout private equity and catalytic private credit investment strategies. The firm’s venture capital group, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough solutions for the circular economy since 2016. The Closed Loop Ventures Group’s portfolio includes companies developing leading innovations in material science, robotics, agritech, sustainable consumer products and advanced technologies that further the circular economy. Closed Loop Partners is based in New York City and is a registered B Corp.

About Aerflo

To learn more, visit https://aerflo.co/.

Disclaimer

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

NEW YORK, Aug. 7, 2024 — Today, the Composting Consortium, a collaboration managed by the Center for the Circular Economy at Closed Loop Partners, released a new blueprint to guide municipal leaders in zero waste, solid waste and sustainability in establishing and scaling composting infrastructure and organics management programs across the country. How Organics Diversion Can Help Achieve Zero Waste Goals: A Blueprint for Action, co-authored with Eco-Cycle, based in Boulder, Colorado, is an essential guide for municipalities seeking to develop food scraps collection programs and to work with composters to meet zero waste and climate goals. Alongside the release of the blueprint, the Consortium invites U.S. municipalities and composters to join two newly launched platforms that support municipalities and composters in scaling organics infrastructure.

Today, food waste in landfills is a major source of methane, a potent greenhouse gas that significantly contributes to climate change. Diverting food scraps and yard waste through municipal organics programs reduces methane emissions and provides environmental benefits such as improved soil health, water conservation, carbon sequestration, and support for local economies and ecosystems. To support this diversion, the U.S. composting industry is in an early stage of transformation. More composters are looking to accept and process more food waste; approximately 70% of composters who process food also accept and process some format of food-contact compostable packaging, with the understanding that accepting these materials helps bring in more food waste to their facilities. However, only 10% of U.S. households have access to organics recycling through drop-off and curbside organics collection programs, and only 4% of wasted food is sent to composters today.

“Since its launch in 2021, the Composting Consortium has been focused on moving the needle to change that statistic,” said Kate Daly, Managing Director and Head of the Center for the Circular Economy at Closed Loop Partners. “By creating this blueprint, we aim to equip municipal leaders with a basic ‘how-to’ manual to launch or scale successful organics programs that contribute to a zero-waste future, clean organics streams and a thriving composting industry.”

The blueprint, How Organics Diversion Can Help Achieve Zero Waste Goals, offers a clear and actionable framework, including:

• Policy and Program Expansion for Diverting Food Waste: This section does a deep dive into effective strategies for policy development. It explores methods to incentivize resident and business participation, while outlining pathways to maximize food waste diversion from landfills.
• Setting Up Programs and Infrastructure: This section provides a clear roadmap for establishing new organics programs. It details best practices for collection methods, explores various processing options (composting facilities, anaerobic digestion), and offers guidance on navigating the critical process of contracting with composters.
• Communication with Program Participants: Recognizing the importance of resident and business engagement, this section provides a comprehensive communications toolkit. It outlines strategies for educating participants on proper sorting techniques, maximizing program participation and fostering long-term program success.

To thoughtfully scale organics management, key stakeholders must collaborate. This helps ensure that composting programs and infrastructure are developed to meet the diverse needs of stakeholders across the organics value chain––from composters, to cities, residents, businesses and more. Alongside the release of the blueprint, the Composting Consortium is launching two new platforms to engage directly with municipalities and composters across the country to support the scale-up of robust composting infrastructure.

The Composting Consortium’s new Composter Innovator Program aims to bring composters across the U.S. to the table to play an active role in shaping the future of the composting industry on topics like contamination, policy and funding food waste composting infrastructure. The group will take on important questions, including identifying the cost of processing compostable packaging and offering recommendations on how to allocate Extended Producer Responsibility funds to support composting infrastructure development. The Consortium invites composters across the U.S. to sign up for the program and be involved in the growth of composting infrastructure across the U.S.

The Consortium is also launching its Municipal Partner Platform, a free-to-access platform for city officials focused on sustainability, zero waste and waste management. The platform connects officials with leaders nationwide to share and discuss best practices in starting and expanding organics collection and infrastructure programs. Municipalities of all sizes and stages of development are invited to reach out to the Composting Consortium to explore ways the network can help them achieve their goals of diverting food waste from landfills.

More information on the Composter Innovator Program and the Municipal Partner Platform can be found at www.closedlooppartners.com/composting-consortium/

About the Center for the Circular Economy at Closed Loop Partners

Closed Loop Partners is a firm at the forefront of building the circular economy. The company is comprised of three key business segments. Closed Loop Capital Management manages venture capital, buyout and catalytic private credit investment strategies on behalf of global corporations, financial institutions and family offices. Closed Loop Builders is an operating group that incubates, builds and scales circular economy infrastructure and services. The Center for the Circular Economy (‘the Center’) is the innovation arm of Closed Loop Partners. The Center executes research and analytics, unites organizations to tackle complex material challenges and implement systemic change that advances the circular economy. The Center’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets.

For more information, please visit www.closedlooppartners.com/the-center/

About the Composting Consortium

The Composting Consortium, managed by the Center for the Circular Economy at Closed Loop Partners, is a multi-year industry collaboration on a mission to build a world where organics are kept in circulation. The Consortium advances composting infrastructure and the recovery and processing of food-contact compostable packaging and food scraps in the U.S., to reduce food waste and mitigate climate impact.

The Consortium brings together leading voices across the composting and compostable packaging value chain––from the world’s leading brands to best-in-class composters running the operations on the ground. Through in-market tests, deep research and industry-wide collaboration, the Consortium is laying the groundwork for a more robust, resilient composting system that can keep food waste and compostable packaging in circulation.

For more information, please visit www.closedlooppartners.com/composting-consortium/

MINNEAPOLIS, July 22, 2024 — Today, Eureka Recycling, a nonprofit, mission-based independent regional materials recovery facility (MRF) based in Minneapolis, Minnesota, announced a multi-million-dollar financing round led by Closed Loop Partners’ catalytic private credit arm, the Closed Loop Infrastructure Group, alongside American Beverage and The Recycling Partnership.

“This loan funds key upgrades that bolster our resilience to changes in the recycling material stream and shifts in policy across the U.S.,” said Miriam Holsinger, co-president and COO of Eureka Recycling. “Building on our long-term commitment to quality material, traceability in markets and support for our local community, this new equipment and technology improves our ability to effectively sort recyclables in Minnesota and also prevents environmental deterioration from resource extraction, reduces landfill disposal, and generates economic benefits across the municipalities that we support.”

Since its founding, Eureka has been a best-in-class recycling operator, demonstrating the impact and importance of regional, independent recovery facilities in keeping materials in circulation. Eureka Recycling has maintained strong local support in the Minneapolis-St. Paul area and continues to be a key player in the regional recycling market, processing more than 100,000 tons of materials per year.

The over $10 million loan from Closed Loop Partners’ catalytic capital group includes $3 million from American Beverage and the Minnesota Beverage Association. Alongside the loan, The Recycling Partnership provided a grant to support this project. With key infrastructure upgrades, Eureka Recycling can collect, process and return more valuable materials to supply chains and advance a circular economy in the greater Minneapolis-St. Paul area. This will not only support a cleaner community, but also continue to bring revenue to cities and other customers served by the facility and support local jobs.

“We see immense opportunity to support independent recycling operators that are building the necessary infrastructure for a circular economy in the U.S.,” said Jennifer Louie, Managing Director and Head of the Closed Loop Infrastructure Group at Closed Loop Partners. “Eureka’s work has consistently aligned with Closed Loop Partners’ broader mission to advance the circular economy since our partnership began with them nearly a decade ago. This is Closed Loop Partners’ fourth loan to Eureka Recycling in nearly a decade, supporting the MRF in maintaining its leading position in the region. Closed Loop Partners’ Infrastructure Group, across its Infrastructure, Beverage, Circular Plastics and Local Recycling strategies, will continue to deploy capital into private companies, projects and other recycling-focused nonprofits, such as Eureka Recycling.”

Financing is provided as market dynamics, policy shifts and packaging trends change the composition of materials processed by recycling facilities. Investment in regional recycling infrastructure is necessary to keep up with changing material flows and growing demand for high-quality recycled material. The capital will support additional optical sorters to decrease contamination and increase the quality of recovered materials that can be made into new materials, including mixed paper and old corrugated cardboard, polyethylene terephthalate (PET), aluminum, polyethylene and polypropylene. Once the upgrade is completed in 2025, the new machines are estimated to increase the annual collection of PET and aluminum by 222 and 248 tons, respectively.

“One of our industry’s highest priorities is circularity for our valuable bottles and cans,” said American Beverage President and CEO Kevin Keane. “They are made to be remade, and this investment will help make sure more of this valuable material can once again become a new bottle or can. America’s beverage companies are excited to support these important upgrades for the one million residents Eureka serves.”

“Delivering on the promise of a circular economy requires that we build a better recycling system, and that’s exactly what our support to Eureka Recycling is delivering,” said Cody Marshall, Chief Community Strategy Officer at The Recycling Partnership. “By delivering grant funding and forging new partnerships we are providing critical infrastructure that will increase Minnesota’s 45% recycling rate and expand recycling access across the region. That’s good for the people of Minneapolis-St. Paul and for all of us.”

This is the fourth investment from the unique public-private partnership between Closed Loop Partners’ Infrastructure Group, American Beverage’s Every Bottle Back and The Recycling Partnership. The loans, grants and other investments have strengthened infrastructure nationwide to recover materials at their end-of-life, increasing the volume of quality recycled material to meet growing demand for these materials and commitments toward a waste-free world.

About Eureka Recycling
Eureka Recycling is a nonprofit Zero Waste organization and mission-based recycler in Minneapolis, MN. Through education, policy and advocacy work, and operational excellence, Eureka is dedicated to demonstrating that waste is preventable. Eureka provides recycling collection services to more than 100k Twin Cities metro residents, and at its Materials Recovery Facility (MRF), Eureka sorts approximately 100k tons of single-stream recycling annually, serving residents in the Twin Cities, greater Minnesota, and eastern Wisconsin. Committed to Zero Waste and systemic change, Eureka is a founding member of the Alliance of Mission-Based Recyclers (AMBR) which amplifies its impact, advocating for policies that reduce resource extraction, combat climate change, and support local communities.

About Closed Loop Partners
Closed Loop Partners is at the forefront of building the circular economy. The company is comprised of three key business segments: its investment arm, Closed Loop Capital Management, managing venture capital, buyout private equity and catalytic private credit investment strategies; its innovation center, the Center for the Circular Economy; and its operating group, Closed Loop Builders.

The firm’s catalytic private credit arm, the Closed Loop Infrastructure Group, provides a mix of flexible financing solutions to support a range of circular economy projects, companies, infrastructure and enabling technologies. The Infrastructure Group deploys catalytic capital, which seeks to accelerate and de-risk the development of high-impact projects and companies. Areas of strategic investment include providing below-market rate loans to finance circular infrastructure, providing catalytic financing to increase recovery of hard-to-recycle plastics and PET bottles, and financing and deploying small-scale, modular materials recovery facilities (MRFs) to increase recycling in communities with no or limited access to recycling.

Closed Loop Partners is based in New York City and is a registered B Corp. Learn more at closedlooppartners.com.

About American Beverage
American Beverage is the national trade organization representing the broad spectrum of companies that manufacture and distribute non-alcoholic beverages in the United States. The Every Bottle Back initiative is an integrated and comprehensive initiative by The Coca-Cola Company, Keurig Dr Pepper and PepsiCo designed to improve plastics circularity.

Learn more at www.EveryBottleBack.org.

About The Recycling Partnership
The Recycling Partnership is a purpose-driven organization committed to building a better recycling system, one that delivers the economic and environmental benefits our communities and the hundreds of thousands of people who work throughout the recycling industry deserve. The Recycling Partnership’s team of experts, practitioners, and thought leaders with real-world experience works with its partners to create meaningful change across the recycling system and assist communities, companies, and policymakers in enacting such change. The Recycling Partnership uses its one-of-its-kind National Recycling Database that reaches more than 9,000 U.S. recycling programs and develops practical and innovative resources to address critical gaps in the recycling system. Learn more at recyclingpartnership.org.

July 17, 2024, New York, NY – Today, the Composting Consortium, an industry collaboration to strengthen the composting system in the U.S., managed by Closed Loop Partners’ Center for the Circular Economy, released a new report with investment recommendations to scale composting infrastructure and increase the recovery of food waste. The report, Unleashing the Economic and Environmental Potential for Food Waste Composting in the U.S., developed with investors, policymakers and composters in mind, delves into the compost market and opportunities for public and private capital investment amidst rising landfill costs, federal attention on food waste and organics recycling, and state-wide organic bans.

Food waste composting is on the cusp of major growth as the economic, environmental and social consequences of food waste grow more apparent. Macrotrends include the rising cost of landfilling across the country and mounting attention linking food waste in landfills to methane emissions––a factor in climate change. Corporate and municipal zero waste and food waste policies and climate goals are putting a spotlight on composting––an available solution well suited to divert complex post-consumer food waste with food-contact compostable packaging from landfills, while creating compost to sequester carbon, support healthy soils and contribute to agriculture.

While food waste composting infrastructure has remained stagnant in the U.S. for the last six years, the composting industry stands at a critical juncture. Today, there are ~200 compost facilities in the U.S that process food waste, and another ~2,700 facilities that only process yard trimmings. Many of those ~2,700 facilities have the potential to be retrofitted to accept and process food waste. Food waste composting’s potential for social, environmental and economic benefits is well-established, and many individual food waste compost manufacturers have proven the success of the model. However, scaled operations, particularly for large-scale food waste composting facilities, remain hindered by hyper-local logistics, variable municipal engagement and lack of financing tailored to the business model’s dynamics. Blended financing is needed to support large-scale infrastructure that can handle complex food waste streams like post-consumer food scraps with compostable packaging.

According to the Composting Consortium’s report, public and private capital––a mix of grants and philanthropic funding, patient capital, loans and private equity––can work alongside each other to build large-scale composting facilities while nurturing the growth of smaller, established operators. Each type of capital caters to the needs of a particular region and composting business and addresses critical bottlenecks across the entire composting value chain––from establishing efficient collection programs to fostering the development of next-generation technologies and expanding the demand for compost.

“Since the inception of the Composting Consortium, we identified the need to strengthen U.S. composting infrastructure, particularly those solutions that can accept increasingly large and complex organics streams including post-consumer food scraps and compostable food packaging. Investment, alongside policy and multi-stakeholder collaboration, is critical to achieving this,” says Kate Daly, Managing Director and Head of the Center for the Circular Economy at Closed Loop Partners. “After years of on-the-ground work and industry collaboration, the Consortium has identified opportunities for capital to catalyze scale and impact, and advance progress toward zero waste and climate mitigation goals.”

The Composting Consortium is a critical part of Closed Loop Partners’ decade-long work to build a circular economy across a range of areas, including food and organics. In the last 10 years, the firm has made investments in and conducted research on food waste recovery, including composting and distributed anaerobic digestion, and continues to look toward more opportunities to transition away from emissions-intensive production systems and supply chains that create large amounts of waste.

The composting industry presents a compelling opportunity to generate positive social and environmental impact alongside financial returns. By deploying well-placed private investments, investors can play a pivotal role in scaling the industry and creating a lasting positive financial and impact return. By enacting food waste diversion mandates, providing financial incentives for composting infrastructure and collection programs, and supporting research and development of innovative technologies, federal and state governments can play a critical role in enabling the widespread adoption of composting. By embracing innovation and exploring new market opportunities, the composting industry can further improve operational efficiencies and strengthen the composting system as a whole.

By addressing financing hurdles and fostering a supportive ecosystem through collaboration between composting businesses, municipalities and investors, the U.S. composting industry can further scale to advance a more circular economy for organics, reduce our environmental footprint and build a more sustainable future for generations to come.

Unleashing the Economic and Environmental Potential for Food Waste Composting in the U.S.: A Guide for Investors, Policymakers and the Compost Industry is available for download here.

About the Composting Consortium

The Composting Consortium is a multi-year collaboration to pilot industry-wide solutions and build a roadmap for investment in technologies and infrastructure that enable the recovery of compostable food packaging and food scraps. The Composting Consortium is managed by Closed Loop Partners’ Center for the Circular Economy. Learn more about the Consortium at https://www.closedlooppartners.com/composting-consortium/

About the Center for the Circular Economy at Closed Loop Partners

The Center for the Circular Economy is the innovation arm of Closed Loop Partners, a firm at the forefront of building the circular economy. The Center executes research and analytics, unites organizations to tackle complex material challenges and implements systemic change that advances the circular economy. The Center for the Circular Economy’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets. Learn more about the Center for the Circular Economy at https://www.closedlooppartners.com/the-center/

July 9, 2024, Petaluma, CA –– Starbucks, The Coca-Cola Company, PepsiCo, Peet’s Coffee, Yum! Brands and other global and local brands and restaurants are partnering in The Petaluma Reusable Cup Project from the NextGen Consortium, led by the Center for the Circular Economy at Closed Loop Partners, to activate an unprecedented collaboration to drive reuse. Starting August 5, more than 30 restaurants in the City of Petaluma, CA, will swap their single-use cups for to-go reusable cups to all customers at no cost, and widespread return points will also be available across the city. This program marks a significant milestone for reuse, as the first initiative of its kind that makes reusable to-go cups the default option across multiple restaurants in a U.S. city, with the opportunity to drive more customers to reuse and displace hundreds of thousands of single-use cups.

The Petaluma Reusable Cup Project is focused on supporting customers to create return habits, a key factor to the success of reuse. The city-wide initiative is a critical step forward to catalyze and scale reuse systems, building on half a decade of work by the NextGen Consortium––a collaboration managed by the Center for the Circular Economy at Closed Loop Partners, in partnership with many global foodservice brands.

The mix of large national chains, local independent restaurants, convenience stores, community hubs and public locations makes this initiative distinctly powerful in shaping consumer habits and cultural norms. More than 30 restaurants in the City of Petaluma will be participating in the initiative, including Starbucks and licensed Starbucks cafés in Target and in Safeway, owned by Albertsons Companies; Peet’s Coffee; KFC and The Habit Burger Grill, owned by Yum!; Dunkin’; as well as many local cafés and restaurants. The initiative was made possible through extensive public-private collaboration, with support and engagement from the City of Petaluma, Zero Waste Sonoma, Recology, community groups and local businesses.

“It takes an entire community to build the future of reuse that we want to see,” says Michael Kobori, Starbucks chief sustainability officer. “Our environmental promise is core to our business and that’s why we’re working toward a future vision of every Starbucks beverage served in a reusable cup. Together with fellow foodservice brands, local stores and community stakeholders, we’re leading this initiative to help further unlock behavior change toward reusables, making it easy for our customers, and any customer, to choose to reuse and reduce waste.”

Across the U.S., 50 billion single-use cups are purchased and disposed of each year. Most of these cups are used out of a restaurant and disposed of at home, work or school, with an average lifespan of less than one hour before going to waste, according to the Center for the Circular Economy’s research. While reuse is growing quickly, use of personal cups and existing takeaway reusable cup systems still face low adoption or low returns. For reuse to scale responsibly, it’s imperative to create an easy and enjoyable consumer experience that makes it easy for customers to remember to bring their own containers or to return one that was given to them.

“To create a world without packaging waste, we need to ensure that food packaging reuse systems are scaled in a way that creates a positive environmental impact––meeting the current needs of people while driving a cultural shift toward reuse,” says Kate Daly, Managing Director and Head of the Center for the Circular Economy at Closed Loop Partners. “By testing reuse across an entire city in partnership with key stakeholders from the community and industry, we can scale reuse collaboratively through thoughtful experimentation, building a future where reuse is the norm.”

The City of Petaluma, CA, located in the northern Bay Area, was selected for the initiative for many reasons. In this region, businesses and consumers are receptive to adopting reuse, given the policy environment promoting the phase-out of non-recyclable single-use packaging. The city also participated in a returnable cup test at participating Starbucks locations in 2023. The size and dense layout of downtown Petaluma, with its tight cluster of restaurants and local shops within walking distance, and proximity to suburban and rural areas, creates the right conditions for testing a reuse system for to-go cups. Collaboration with local stakeholders has helped adapt the initiative to local policy and infrastructure, identify optimal return points across the city and engage the broader community.

“The City of Petaluma is laying the groundwork to make cup reuse not only an option, but the default,” says Kevin McDonnell, the Mayor of the City of Petaluma. “We have an amazing, engaged community, and we look forward to assisting the success of this program, alongside our local restaurants and participating global brands that service our community.”

“Imagine a neighborhood where all to-go cups are reusable, and returning these cups required no extra steps. By making reusable cups as convenient and accessible as single use, we can offer an alternative for residents when they forget to bring their own cups with them,” says Leslie Lukacs, Executive Director of Zero Waste Sonoma. “Universal accessibility creates the foundation for a cultural shift towards reuse.”

The Petaluma Reusable Cup Project will install more than 60 cup return bins across Petaluma. After use and return, the reusable cups will be collected, washed and recirculated for future uses by participating businesses and customers. Muuse, a winner of the 2018 NextGen Cup innovation challenge, was selected by the NextGen Consortium to manage all servicing and reverse logistics for the initiative.

“Transitioning to returnable packaging systems is a critical part of reducing single-use packaging waste, and we need to focus on supporting the operations behind it. These systems must be thoughtfully and responsibly implemented to ensure we are minimizing our impact of creating more waste in the process,” says Brittany Gamez, COO & Co-Founder of Muuse. “It is through initiatives like this that we can identify what is needed to operationalize shared systems at this level and inform how reuse is implemented at scale.” 

The initiative, which runs until November, will collect baseline data that measures customer participation and the environmental impact of offering reusables as the default choice for customers, testing whether the model is operationally viable for scale. Data from the initiative can be leveraged by businesses and regulators to support them as they design new reuse systems and draft well-informed packaging regulations.

This is another key step in the NextGen Consortium’s longstanding work to advance reuse. Since 2018, the NextGen Consortium, its brand partners and the Center for the Circular Economy ecosystem have been at the forefront of the reuse movement. In 2019 and 2020, the NextGen Consortium launched groundbreaking trials in the San Francisco Bay Area to understand how reusable cup programs might operate simultaneously across multiple restaurants, leading to a foundational reuse report. Starbucks, a NextGen founding partner, has launched cup share programs in over 25 markets globally, including saturation trials in California. They also recently became the first national coffee retailer to accept reusable cups for drive-thru and mobile orders, making significant progress to incentivize customers to bring their own cups to stores. The work to advance reuse also extends beyond the cup. In 2023, the Consortium to Reinvent the Retail Bag, also managed by the Center for the Circular Economy at Closed Loop Partners, wrapped its largest returnable bag program, alongside its largest bring your own bag program, in partnership with CVS Health, Target and other leading retailers.

Moving forward, the NextGen Consortium will continue its work and collaboration with stakeholders from across the reuse value chain, from innovators and activists to global brands and policymakers, to effectively scale reuse systems that are better for the environment.

About the NextGen Consortium

The NextGen Consortium is a multi-year consortium that addresses single-use foodservice packaging waste by advancing the design, commercialization and recovery of foodservice packaging alternatives. The NextGen Consortium is managed by Closed Loop Partners’ Center for the Circular Economy. Starbucks and McDonald’s are the founding partners of the Consortium, with The Coca-Cola Company and PepsiCo as sector lead partners. Peet’s Coffee, with its parent company JDE Peet’s, Wendy’s, Yum! Brands, Delta Air Lines and Toast are supporting partners. World Wildlife Fund (WWF) is the environmental advisory partner. Learn more at www.nextgenconsortium.com.

About the Center for the Circular Economy at Closed Loop Partners

The Center for the Circular Economy is the innovation arm of Closed Loop Partners, a firm at the forefront of building the circular economy. The Center executes research and analytics, unites organizations to tackle complex material challenges and implements systemic change that advances the circular economy. The Center for the Circular Economy’s expertise spans circularity across the full lifecycle of materials, connecting upstream innovation to downstream recovery infrastructure and end markets. Learn more about the Center for the Circular Economy at closedlooppartners.com/the-center/