Capital for the fund will come from investors. A board consisting of investors, NGOs, representatives from the recycling industry and Walmart, will govern the fund. P&G has agreed to provide financial support.
According to P&G, the solution requires innovation across the entire system, from manufacturer to supplier to consumer. It requires manufacturers to innovate with new technologies to incorporate recycled materials into brand packaging. For example, P&G has invented technology to use recyclable material on laundry bottles and the company has committed to doing more.
“The 'Closed Loop Fund' is an innovative step toward providing a systemic solution,” says CEO A.G. Lafley. “By enabling local municipalities to invest in ways to increase local recycling, it gives more consumers consistent and reliable ways to reduce waste by recycling more of their everyday products. That will, in turn, enable a larger supply of usable, recyclable content, which will enable manufactures to give consumers what they want—more packaging with recycled materials. This is good for consumers, and good for the environment."
The second sustainability initiative is a new round of liquid laundry compaction. Walmart has challenged laundry manufacturers to reduce 25% of the water content in every dose of detergent in North America by 2018.