MOSCOW (MRC) -- Sabic and PepsiCo have signed a memorandum of understanding at the Sabic Center for the Development of Plastic Applications - SPADC - in Riyadh, under which the two companies will collaborate on the implementation of a programme to promote a more circular economy for plastics in the Kingdom of Saudi Arabia, said Sustainableplastics.
According to Maaal.com — a Saudi financial and economic news site - Sabic and PepsiCo will address the various challenges standing in the way of achieving this goal, including the development of solutions for the use of recycled content in food and beverage packaging applications and the need for more awareness about the role of recycled plastics. The companies will also focus on the further expansion of the existing capabilities and recycling infrastructure in order to be able to meet these goals.
The scope of the memorandum includes working jointly - and with government agencies - to create favourable conditions for the circular economy efforts to succeed in line with the Kingdom’s 2030 environmental goals; and the goals of the Saudi Green Initiative.
Inaugurated in 2021, the Saudi Green Initiative unites ‘environmental protection, energy transition and sustainability programs within the Kingdom, with the overarching aims of offsetting and reducing emissions, increasing the Kingdom’s use of clean energy and addressing climate change’. The focus of the initiative is on emissions reduction, afforestation - some 10 billion trees will be planted across Saudi Arabia , the equivalent of rehabilitating 40 million hectares of degraded land - and land and sea protection.
PepsiCo has been active in Saudi Arabia for over 65 years. In September, the company hosted a special event at the King Abdullah Financial District (KAFD) in Riyadh commemorating the relationship between the two companies during which PepsiCo’s various initiatives in the country were highlighted.
Among others, these include PepsiCo’s sustainability strategy, its dedication to advancing a circular economy and promoting water replenishment through its PepsiCo Positive (pep+) strategy, which is is working to source crops and ingredients in a way that accelerates regenerative agriculture and strengthens farming communities. The company has also partnered with Diriyah Gate Authority (DGDA) to launch community recycling projects. These will help to collect plastic and increase recycling rates, underscoring the importance of reducing plastic pollution and safeguarding the environment.
We remind, Sabic posted a 67.1% year-on-year drop in its third quarter net profit on the back of higher costs despite an increase in sales volumes. The company's third-quarter net income was weighed by higher cost of sales and an increase in selling and distribution costs