• Pact Group Sustainability Report 2025: Leading the Circular Economy
    Pact Group Sustainability Report 2025: Leading the Circular Economy
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Pact Group has released its 2025 Sustainability Report, outlining progress toward its Impact 2030 Targets and highlighting stronger momentum in packaging circularity, recycled content uptake, and emissions reduction.

Pact MD and CEO, Sanjay Dayal: Efforts are yielding measurable results
Pact MD and CEO, Sanjay Dayal: Efforts are yielding measurable results

Pact Group has reported solid progress across its packaging sustainability agenda in FY25, advancing key goals on recycled content, problematic plastics removal, recycling capacity and emissions reduction. The company also had its Science Based Targets initiative (SBTi) Net Zero targets formally approved during the year, reinforcing its commitment to long-term decarbonisation.

Managing director and CEO Sanjay Dayal said, “We continue to strengthen our position as a leader in the circular economy through our responsible business practices and environmental stewardship,” he said, noting that Pact was embedding environmental, social and governance principles more deeply across the organisation. “Our efforts are already yielding measurable results, with a marked decrease in Scope 1 and 2 emissions in FY25, and we remain focused on accelerating this progress in the years ahead.

 

Recycled content use continues to rise

A central milestone for FY25 was the increase in average recycled content across Pact’s plastics portfolio to 16 per cent, up from 12 per cent a year earlier. In total, 62,800 tonnes of recycled material were reprocessed and sold or used internally – a 6 per cent increase on FY24 .

The rise was supported by expansions in Pact’s recycling operations, including Circular Plastics Australia (CPA), the network of PET, HDPE and PP facilities jointly operated with Cleanaway, Asahi Beverages and Coca-Cola Europacific Partners. The PET plants in Albury (NSW) and Laverton (VIC) processed 77 per cent of the beverage bottles returned through Australia’s container deposit schemes in FY25 – more than 39,000 tonnes of PET, equivalent to 1.98 billion bottles .

Pact also launched rFresh-100, a food-grade rHDPE resin made entirely from locally collected milk and juice bottles. The resin passed rigorous US FDA testing, enabling new milk, dairy and juice bottles to be manufactured with up to 100 per cent recycled content.

Pact Group's FY25 highlights by divisions
Pact Group's FY25 highlights by divisions

Stronger design-for-circularity outcomes

Progress toward Pact’s goal of making 100 per cent of its packaging recyclable by 2030 included significant reductions in problematic polymers. In FY25, production of PS packaging dropped by 11 per cent, and PVC packaging by 31 per cent, compared with FY24. Targeted redesigns diverted over 236 tonnes of problematic plastics from landfill.

Light-weighting also featured strongly. A partnership with Hilton Foods reduced the raw material used across four PET meat trays by 207 tonnes per year. Pact also transitioned multiple customer SKUs – including ranges for Colgate and Unilever – to carbon-black-free masterbatch to improve recyclability in kerbside systems.

These efforts contributed directly to Pact’s circularity performance, moving the company closer to its 30 per cent average recycled content target for 2030.

Climate action and emissions reduction

Pact reported an 11.2 per cent reduction in Scope 1 and 2 emissions against its recalculated FY21 baseline, driven by energy efficiency programs, machinery upgrades and increased use of renewable electricity. Total on-roof solar generation reached more than 4.1 million kWh, up 124 per cent on FY24, following the installation of a major 1.8 MW solar array in Bangladesh.

The company’s Scope 3 emissions rose by 7.6 per cent, which Pact attributes to expanded reporting rather than operational increases. A new supplier engagement platform, due for rollout in FY26, is expected to tighten data quality and accelerate reductions in purchased goods and services – the largest contributor to Scope 3 emissions.

Pact Group's role within the circular economy
Pact Group's role within the circular economy

Expanding stewardship and reuse initiatives

Across Australia and New Zealand, Pact continued to grow its role in product stewardship schemes. These ranged from agricultural drum recovery and paint packaging take-back, to New Zealand’s nationwide caps and lids recycling initiative. Together, these programs recovered thousands of tonnes of plastics otherwise destined for landfill, strengthening material circularity at scale.

The full report can be downloaded here.

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