Introduction

The circular economy is a framework for consumption that looks beyond the traditional take-make-waste industrial model. Economic and social capital is built and replenished, through three main principles: 

1. Removing waste and pollution through design
2. Keeping products and materials in use
3. Regenerating natural systems (4). 

The postal sector has an important part to play in the transition to a circular economy - not only in reducing its own negative impacts but in providing the logistics required for more sustainable consumption patterns globally. 

The SMMS programme therefore assesses the broader contribution of participants beyond just waste management - including reuse, recycling, product design, remanufacturing and collaboration across the value chain and beyond.

Emerging trends

Optimising routes and the use of reverse logistics will be key components of a circular economy, such as reducing unnecessary fuel consumption, and providing facilities for returning containers at post offices. The postal sector can also leverage its position to engage with government and other industries to drive change. 

Recyclable or sustainably produced packaging continues to be a focus for consumers. In IPC’s cross-border e-commerce shopper survey in September 2024, which had 31,000 respondents from 37 countries, 48% strongly agreed that they would prefer their parcel packaging to be reusable if the package were picked up from their doorstep. A further 24% noted no return label option on packages, limiting the ability of consumers to recycle packaging received.

The development of products such as a satchel for sending used coffee pods to a purpose-built recycling facility will also be a focal point in reducing the environmental impact of supply chains. This systemic shift to a more sustainable future will require investment and innovation, with an opportunity for considerable economic benefits. The postal sector can expect cost savings from recycling paper and packaging, growing demand for innovative products, and earnings from marketing opportunities from cross-sector engagement. 

SMMS participants

Results

• In the Sustainable Management Proficiency (SMP) questionnaire, the group scored 67.2% in the Circular Economy Focus Area. This was a new topic in 2019 and the group has reacted strongly to the inclusion by increasing the score by 20.5 percentage points in just five years. It is now less than six percentage points behind the overall average SMP score of 72.6% in 2024. 
• For the sixth successive year participants scored highest in questions related to Strategy and Policy. This was also the Focus Area that saw the greatest increase between 2023 and 2024 (3.8 percentage points).
• The pillar exhibiting the second biggest improvement this year is Measurement and evaluation. Showcasing the posts’ efforts to increase the levels of data collection and data accuracy of Circular Economy within the company’s organisations.
• Some posts may be more advanced in their circular economy transition than others, given regional differences in regulation and evolving legislation around waste. For example, European Union member countries must now recycle half of their packaging waste, and in California, businesses cannot use plastic bags and must recycle 25% of their plastic containers. As the group expands into new territories, new posts joining the programme will bring new challenges, unique to their business. IPC is committed to ensuring their needs are met alongside improving the overall performance of the group.
   

NB: All percentage figures are rounded to two significant figures 
Figures omit Australian Postal Corporation from 2023 and 2024. Canada Post, Japan Post, and Thailand Post are not included in the figures as the data reported here does not fall under the two focus areas (‘Climate change’ and ‘Resource efficiency’) that these posts currently report on. This impacts comparability with previous reports.

Highlights of the group’s performance in 2024 include:

• In 2024, participants reused or recycled an impressive 71% of total non-hazardous waste.
• 21 out of 24 posts that report on Circular Economy work or collaborate with suppliers, and 20 with customers, on the circular economy.
• 13 posts have publicly stated targets on waste/circular economy, and a further 6 have internal targets.
• In line with best practice, 9 posts already refer to internationally recognised guidance when calculating and reporting data related to the circular economy.
• 17 out of 18 posts (which consider waste a material sustainability issue) define responsibility for embedding the principles of a circular economy at the board/executive level
  
   

(4)  Ellen MacArthur Foundation https://www.ellenmacarthurfoundation.org/circular-economy/concept