Plastics & Sustainability Startups: Keys to Success

The Escalating Plastic Crisis and Innovative Solutions

Projections indicate that the volume of plastic entering our oceans will triple by the year 2040. A significant portion of the world’s unrecycled plastic originates from the expansive consumer packaged goods (CPG) industry. While waste from these products is widespread, increasing public awareness and a desire to minimize environmental impact are driving the development of innovative solutions by technology startups, aimed at assisting both individuals and corporations in achieving their sustainability objectives.

Startups Pioneering Sustainable Practices

During TechCrunch Disrupt, discussions were held with Svanika Balasubramanian, co-founder and CEO of rePurpose Global, a platform focused on accessible planetary action through “plastic credits”; Brian Bushell, co-founder and CEO of by Humankind, a personal care brand dedicated to reducing single-use plastic waste; and Lauren Singer, founder and CEO of Package Free, an online retailer offering products for zero or low-waste living.

These founders explored strategies for plastic elimination while simultaneously building thriving businesses, and shared valuable insights into growth and success within the sustainable tech sector.

rePurpose Global: A Plastic Credit System

rePurpose Global employs a gamified approach to facilitate waste reduction for companies. “Our system comprises two key components,” explained Balasubramanian. “Firstly, the plastic credit platform, and secondly, the profit neutral certification. This certification enables CPG companies, and organizations generally, to utilize the plastic credit platform and generate positive impact.”

Balasubramanian intends to leverage the strengths and address the shortcomings of the carbon credit system, applying it to plastic waste, given that the vast majority of plastic remains unrecycled. On the rePurpose platform, a single plastic credit represents the removal of one kilogram of “nature bound” plastic waste.

Currently, rePurpose collaborates with brands across 26 countries. Beyond the platform, the company actively removes plastic from ocean environments off the coast of Bali, Indonesia, and establishes new recycling infrastructure in municipalities and low-income communities throughout the Global South. “The profit neutral certification serves as a means of integrating CPG brands and other companies into the credit platform, allowing them to measure, reduce, and offset their environmental footprint.”

by Humankind: Redefining Personal Care

Bushell, of by Humankind, was motivated to establish the company after witnessing plastic pollution on the ocean floor during a vacation, leading him to address the issue from the consumer perspective. He developed a line of personal care products specifically designed to minimize single-use plastic consumption.

“We recognized the need to directly address the problem at the product level,” stated Bushell. “Our goal is to provide convenient, effective products that are more environmentally responsible than current options.”

The reuse of containers is a key strategy employed by by Humankind to help customers lessen their plastic footprint. He elaborated, “Many of our products are designed to be refilled, allowing customers to retain the container and replenish it, thereby generating less waste than traditional alternatives.”

“Furthermore,” he added, “we offer products in tablet form – such as mouthwash or toothpaste – that customers can simply reconstitute with water at home, eliminating the need for pre-packaged liquids.”

Package Free: A Marketplace for Sustainable Living

Lauren Singer’s Package Free functions as a marketplace for plastic-free products. The founder gained significant traction by documenting her journey towards a plastic-free lifestyle on social media, sparking considerable interest. The onset of the pandemic further amplified demand for the products offered on her marketplace, as individuals became more acutely aware of the fragility of our ecosystems.

“We initially operated as a brick-and-mortar retail business with stores in New York, along with pop-up locations and partnerships with retailers like Nordstrom. The pandemic led to the closure of many of our retail locations, prompting a complete shift to an online business model, which proved remarkably successful. Our customer base remained loyal and expanded, with increased purchases across our product range. People, for the first time, were confronted with the volume of waste they generate and had the opportunity to truly understand its impact.”

Singer believes the pandemic and the prevalence of “greenwashing” have prompted consumers to question the authenticity of sustainable products. “The pandemic highlighted the vulnerability of our ecosystems and societies, and the dependencies we have. Companies have a responsibility to conduct thorough due diligence and carefully consider the implications of their products.”

She argues that customers and companies are increasingly recognizing the interconnected nature of the problem, extending beyond solutions like carbon credits or offsetting. “A commitment to reduce and redesign by 2050 is insufficient, as it does not address the immediate issue.”

Addressing Greenwashing and Ensuring Transparency

by Humankind, which offers a plastic offset program to help customers achieve a “net neutral” plastic footprint, is proactively addressing concerns about “greenwashing” through a partnership with Plastic Bank. “We prioritize transparency by providing clear and verifiable information about the sustainability of all our products,” Bushell explained.

Increasing awareness is also leading to greater scrutiny of companies and their products. “The growing sophistication of consumers is evident in the questions they ask on platforms like Instagram. They are demanding to know the ‘how’ and ‘why’ behind sustainability claims, which is crucial. Consumers want to make sustainable choices, but they also expect products that perform well and offer convenience.”

Bushell emphasizes that the current challenge for product developers, manufacturers, and retailers is to deliver solutions that are as good as, or better than, existing options, while also being sustainable.

Funding Challenges and Future Outlook

However, these startups face a significant hurdle: securing funding. By Humankind has raised approximately $4 million, but Bushell notes that attracting investment requires a compelling product and investors who are genuinely committed to sustainability.

“Raising capital becomes feasible once you can elicit a response of ‘Wow, that’s a great idea’ from potential investors. A strong reputation among investors can accelerate the process. Sustainability is rapidly becoming a fundamental expectation for consumer brands, and investors are increasingly recognizing this.”

Package Free, according to reports, has raised up to $12 million. Singer stated, “There is more investor interest in sustainability than ever before, with dedicated sustainability mandates and climate funds. However, the CPG sector presents greater challenges than climate tech, due to the larger potential for growth, scale, and investor returns in the latter.”

Repurpose Global has adopted a blended approach, combining seed funding with grant opportunities. Balasubramanian explained, “We proceeded cautiously, which enabled us to achieve cash-flow positivity early on. Our growth has been largely driven by revenue, but we have also attracted interest from investors, accelerator programs, and incubators. Funding opportunities tend to align with promising ventures, and sustainability represents the next frontier with significant untapped potential.”