TikTok drama between Hero Packaging, Aus Post unearths deeper problem with compostable packaging

It all started with TikTok drama.

A couple of weeks ago, Hero Packaging posted a video calling out Australia Post. This was in regards to its Online Retail Industry Awards (ORIAS), which recently added a ‘Sustainability Impact Award’ category.

In the video, Hero Packaging co-founder Anaita Sarkar revealed that one of her customers discovered their business wouldn’t have a chance of being considered for this award because it uses compostable packaging.

“Australia Post will not accept the adoption of compostable packaging as a positive form of innovation as compostable packaging items are 2.5 x more impactful to the environment than virgin plastics and are not deemed the most suitable packing type for eCommerce,’ a bolded note at the top of one of the award submission pages read.

“Additionally, APCO holds that compostable packaging is not suitable for eCommerce purposes.”

@hero.packaging

I’m so frustrated at Aus Post. Why would they specifically ban compostables in a sustainability award?! #auspost #singleuseplastic #compostablepackaging

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Launched in 2018, Hero Packaging specialises in compostable packaging for retailers. According to Hero, its packaging is made from “30% plant-based materials such as PLA and 70% from a certified compostable material called PBAT (a synthetic bonding agent)”.

The mailers are designed to be deposited into home composts, rather than taken to an external facility.

In the video, Sarkar claimed Australia Post is targeting Hero Packaging with its rejection of compostable packaging as a positive form of innovation.

“We have spoken out against Australia Post a number of times and we know they’re not happy,” Sarkar said in the video.

So, what issues does Australia Post have with compostable packaging?

According to Australia Post, compostable packaging isn’t as environmentally friendly as Low Density Polyethylene (LDPE) — the material it uses for its satchels.

“Through independent research, commissioned by Australia Post, we’ve determined that the most environmentally friendly packaging for eCommerce in Australia is satchels containing recycled plastic content, a view supported by many in the industry,” an Australia Post spokesperson said in an email to SmartCompany.

The report Australia Post is referring to here is the Packaging Life Cycle Assessment report from 2019. It compared virgin LDPE satchels with four different alternatives, including compostable plastic.

“The results showed the compostable satchel had a lower use of non-renewable resources than the satchel made from new LDPE; however, it had higher GHG emissions, freshwater consumption, land use and impacts on ecosystem quality. This is the case even when it is composted after use rather than landfilled,” the report states.

“This is because the process of growing corn to manufacture the resin requires significant land, water for irrigation, and use of fertiliser that results in air and water emissions impacting GHG emissions and ecosystem quality.”

Comparatively, the report found the LDPE satchels “showed a significant decrease in GHG emissions, non-renewable resource use, and freshwater consumption”.

Speaking to SmartCompany, Sarkar offered a different perspective.

“Hero introduced home compostable mailers because virgin plastics and even recycled plastics used a lot of fossil fuels to be created as well as a third party facility to be recycled in,” Sarkar said in an email.

“Even when REDcycle was operational, only 9% of plastics were actually being recycled. If those plastic bags ended up in landfill, they caused a lot of waste and some ended up in the ocean.”

REDcycle was a decade-long soft recycling scheme that shuttered in November 2022. It allowed shoppers to return plastic shopping bags to major supermarkets such as Coles and Woolworths for recycling.

The idea was for REDcycle to reuse these materials to create new goods. However, it was discovered that REDcycle was not doing this and was instead storing these materials en masse in warehouses.

“With the collapse of REDcycle, soft plastics are now going straight to landfill with no other alternative. Big companies like Australia Post who predominantly sell single-use plastic, don’t want to move to compostables because it’s more expensive and also because they have a shelf life of 12 months (which makes their operations way more complex),” Sarkar argued.

According to Sarkar, Australia Post is generalising compostables.

“Industrially compostable materials are of course not ideal because people don’t have access to facilities. We sell home compostable packaging, which breaks down in your backyard. This is certified by [The Australian Business Association] and we are also part of [The Australian Packaging Covenant Organisation],” Sarkar said.

“If disposed correctly, our mailers should be cut up and put in a home compost bin along with food waste. Absolutely no need to haul it off to another facility. The issue is when people don’t have a compost bin. They can either use share waste or send it to a community garden. Some councils have FOGO bins as well.”

FOGO stands for Food Organics and Garden Organics. These are kerbside collection services that allow food waste to be added to green-lid garden waste bins, with the view to turning it into compost.

“If our packaging does go into landfill, it is not what we want, but it will start to break apart and completely disintegrate, unlike plastic. Australia Post is trying to make it seem like virgin plastic is actually better than home compostable packaging, but they are incorrect.”

APCO and the ARA respond, proving there’s a long way to go for compostable packaging in Australia

Despite Sarkar’s assertion about compostable packaging, this sentiment isn’t as strongly felt by industry bodies within Australia.

Both the Australian Packaging Covenant Organisation (APCO) and the Australian Retailers Association (ARA) don’t recommend compostable packaging for e-commerce parcels at the present time.

“Sustainable packaging is an incredibly challenging and complex space for retailers — and it’s important to recognise that suppliers and distributors are all addressing these challenges in their own way,” ARA CEO Paul Zahra told to SmartCompany.

“While there is a growing opportunity and demand for compostable packaging, this remains an evolving space and the current offerings are not appropriate for use in all instances.”

“Our retail community continues to invest in sustainable practices — it’s a powerful opportunity to engage with customers. However, businesses and those involved in transport and distribution must be able to ensure safety, security and reliability when choosing between different types of packaging.”

APCO takes a somewhat stronger stance, citing inconsistency and consumer confusion as reasons why it doesn’t fully recommend compostable packaging at this time.

“While certified compostable packaging does have a place in the circular economy, this is limited in scope and mainly consists of packaging formats supporting food waste recovery,” APCO CEO Chris Foley told SmartCompany.

“Compostable packaging faces issues such as contamination in FOGO, inconsistency of policy across jurisdictions nationally, confusion for consumers and businesses, as well as infrastructure gaps for the collection and processing of used compostable packaging.”

Foley went on to say that APCO is looking into the role that compostable packaging could play in the future, “however these issues pose significant challenges and consequently it is not generally recommended at this time for applications other than those noted in APCO’s resource Considerations for Compostable Plastic Packaging“.

In the report, APCO recommends compostable plastic packaging for the likes of food caddy liners, fruit and vegetable stickers, and closed-loop food service systems.

Confusion abounds

Sarkar was disappointed with this response from APCO. She also argued that the collapse of REDcycle has left customers confused as to what to do with these long-lasting plastics that are currently going to landfill.

“Disposal of all packaging has challenges. Compostable packaging is no different in any way in regards to this. Compostable materials are still relatively new to consumers so there is understandably going to be a period where consumer behaviour and infrastructure still need to catch up. However, we would rather push for this change to happen sooner rather than later. This is why we are constantly educating consumers on home composting and the benefits of it,” she said.

“It seems like APCO has put compostables in the too-hard basket because it requires people to actually change their current behaviour. This does not take away from the fact that home compostable materials, if disposed correctly, are far better for the environment than virgin plastic.”

According to Sarkar, when it comes to Hero Packaging, the carbon footprint ends in the user’s gardens.

But with large industry bodies not feeling the same way, it leaves you wondering when, or even if, compostable packaging will be widely considered a best-practice alternative to plastics.

Additionally, with so many companies and organisations saying they are doing their best to hit net zero, why are they not all talking to each other more to nut multi-faceted e-commerce solutions at scale?

Because right now, how can we expect customers to know what the right thing to do is if industry bodies and experts in the field are either griping, shrugging their shoulders, or reaching for the too-hard basket?