Developing a concept to reduce packaging waste at Aalberts Hydronic Flow Control

Abstract

Aalberts Hydronic Flow Control has set the target to reduce their packaging material by 20% in weight by 2025. In this thesis will be looked into, and recommended on this target. In addition to this, the assignment has been established to develop a concept to reduce packaging waste for Aalberts through research on sustainable packaging, providing insights for improving business-to-business sustainable packaging practices.

In 2022, Aalberts Hydronic Flow Control introduced a total of 2739 tons of (registered) packaging to the market. This included 1807 tons of cardboard, 155 tons of plastic, and 777 tons of wooden packaging. The thesis focuses on the product categories PEX pipe, Expansion Vessels, Valves and Fittings that contribute most significant to packaging at Aalberts (54% of total packaging), representing 92 tons of plastic (59.4% of all plastic packaging), 872 tons of cardboard (48.3% of all cardboard packaging) and 520 tons of wood packaging (66.9% of all wood packaging).

Based on, among others, findings from literature research, expert interviews, interviews with Aalberts’ employees, competitor analysis, research into regulations, business economics and market trends, a strategic roadmap is designed showing all recommended actions for
Aalberts to achieve packaging reduction based on three periods:
- The first period (now-2025) is focused on the implementation of most financially appealing packaging changes for Aalberts to reach the target of 20% reduction by 2025. Investments are needed, but are expected to be profitable within 2 years of implementation, leading to
20.7% reduction of all packaging (566 tons).
- The second period (2025-2035) is focused on reducing unnecessary packaging and redesigning packaging for recycled and less material use. In this period investments are needed to reduce packaging, contributing to more packaging reduction at Aalberts, leading
to an accumulative reduction (of period I & II) of 25.8% of all packaging (707 tons).
- The third period (>2035) aims at eliminating single-use packaging through implementing the concept of packaging as a product. This requires further investments and a bigger change in packaging practices than the two periods before, which eliminates single-use packaging
completely, leading to an accumulative reduction (of all periods) of 54.2% reduction of all packaging (1484 tons).

In order to reach the target of 20% reduction by 2025, investment based packaging changes need to be made. Most financially appealing actions that are recommended to be implemented before 2025 are the following:
1. Reduce bag sizes Valves and Fittings by 50%
Reducing unnecessary packaging saves the company material and costs, a win-win scenario for Aalberts. It is advised to start with the reduction of plastic bag sizes for Valves and Fittings (46 tons, 1.7% of all packaging at Aalberts) since this provides the largest
packaging reduction of unnecessary packaging.
2. Reusable pallets PEX pipe
Changing to reusable pallets for PEX pipe provides the largest reduction in packaging material with 520 tons (19% of all packaging at Aalberts). This change does require a one-time investment of €385,000 but saves €200,000 per year on single-use pallets. Therefore return
on investment will be within 2 years. Since the packaging change offers a large reduction (close to the target of 20%) and saves costs in the long term, this action is recommended to be implemented as soon as possible to reach the target before 2025 (together with reducing bag
sizes for Valves and Fittings).

Due to upcoming regulations on packaging, goals of Aalberts and the European Union to become net-zero by 2050, the following new targets are advised:
- Reduce all single-use plastics by 100% by 2040
- Reduce all single-use packaging by 100% by 2050

The new targets could be achieved with the concept presented in the third period of the strategic roadmap: packaging as a product. This concept aims to eliminate single-use packaging completely through redesigning packaging to replace another product by providing packaging
with an additional function.