Kevin Kelly, CEO of Union City, CA-based Emerald Packaging, is an anomaly in the plastic-packaging arena. He welcomes legislation putting burdens and costs on the industry because he knows it is the only way to move the needle on eliminating plastic waste from our environment. In fact, he helped craft the legislation so that it would be achievable and effective.

Kevin Kelly, Chief Executive Officer, Emerald Packaging

California Senate Bill 54, which was signed into law last summer, requires all packaging in the state to be recyclable or compostable by 2032, cutting plastic packaging by 25 percent in 10 years and requiring 65 percent of all single-use plastic packaging to be recycled in the same time frame.

Additionally, the legislation shifts the plastic-pollution burden from consumers to the plastics industry by raising $5 billion from industry members over 10 years to assist efforts to cut plastic pollution and support disadvantaged communities hurt most by the damaging effects of plastic waste.

Emerald Packaging roll stock

“SB 54 is a good piece of legislation,” Kelly said. “It sets realistic targets and puts fees on producers, so we can reinvent the California recycling system.”

According to Kelly, the not-so-hidden secret is that much of the material that is placed in the recycling bins and collected each week by refuse companies does not get recycled at all. “A lot of the flexible packaging and plastic bags you put in your bin aren’t recycled at all. We need to change the system,” he said.

“SB 54 is a good piece of legislation. It sets realistic targets and puts fees on producers so we can reinvent the California recycling system.” - Kevin Kelly

Touted as the most significant overhaul of California’s plastics and packaging recycling policy in history, SB 54 pushes California further than any other state on cutting plastics production at the source while helping to build a circular economy that is necessary to combat climate change. Kelly is a big proponent of California leading the charge and theoretically putting the state’s plastic manufacturers at a competitive disadvantage.

Emerald Packaging bags

Convinced that as goes California, so goes the nation, Kelly said the state’s lawmakers regularly lead the way on the environment, and other states and cities follow suit. He cited stricter car emissions standards and the elimination of plastic bags at retail as examples of California leading the way in helping the environment.

Mandatory regulation, Kelly believes, creates a market, which is necessary to move the needle. Manufacturers will have to produce more environmentally friendly packaging to compete in California, and they will do so. He said consumers have already signaled their willingness to pay more for products if they legitimately help improve our environment.

Emerald Packaging pouches

The packaging executive's stand on SB 54 is consistent with Emerald Packaging's commitment to green manufacturing. The company achieved “Green Business Certification” about a decade ago, and Kelly said it was the first—and perhaps only—manufacturer of plastic products to be certified. 

“A lot of the flexible packaging and plastic bags you put in your bin aren’t recycled at all. We need to change the system.” - Kevin Kelly

Kelly admits that when he first applied for the certification it was with a sense of irony that any plastic company could qualify. Emerald Packaging, however, did qualify by adopting many green manufacturing practices such as separating its garbage, using efficient lighting, and recycling virtually everything in its facility.

Emerald Packaging has also made the Ellen MacArthur Foundation pledges, which require the company to reduce the use of plastic by embracing goals in line with creating a circular economy and supporting the United Nations treaty to reduce plastic waste. Under its MacArthur commitments, Emerald Packaging will help drive the adoption of post-consumer recycled resin (PCR) in food packaging and has agreed to make its packages reusable, recyclable, or compostable, with specific targets to hit by 2025.

Emerald Packaging lidding

Recently, Emerald announced an investment in renewable energy by powering its two manufacturing facilities with solar systems. The largest of the two facilities will go live with solar in the first half of 2023, and the company will then follow with a similar system for its second facility in short order.

“Our company is committed to playing its part in sustainability and mobilizing a shift towards a circular economy for plastics,” said Kelly. “It’s clear that our planet is losing the battle to stop greenhouse gas emissions. We need to step up in any way we can. So the installation of solar and other initiatives such as reducing plastic use and increasing recyclability of our packaging makes complete sense.”

The solar installation will cut Emerald Packaging’s emissions by more than the equivalent of 47 million pounds of coal burned and will help reduce its energy spend at the site by $12 million over 25 years.

“It’s clear that our planet is losing the battle to stop greenhouse gas emissions. We need to step up in any way we can. So, the installation of solar and other initiatives such as reducing plastic use and increasing recyclability of our packaging makes complete sense.” - Kevin Kelly

Emerald touts its efforts to reinvent packaging for the past 60 years and claims to be the largest plastic produce-packaging manufacturer in the US. The company specializes in packaging for fresh produce and bagged salads for many of the leading food companies nationwide. It introduced the first compostable packaging in the produce industry 15 years ago and continues to test and experiment with new compostable materials as they become available.