The Global Footprint Network reports that societies’ ecological footprint¹ would require 1.6 planets to meet humanity’s demands on nature.² It is forecast that by 2050 global resource use will have tripled;³ however, some resources are expected to last no longer than 20 years. This trend is driven by the take, make and dispose linear business model which overlooks the true value of stocks of natural capital that provide the raw materials for the production and consumption economy. Addressing unsustainable production and consumption patterns requires a rapid move from the linear model to a circular and sharing model. In a circular economy, goods are designed to be long lasting, easy to repair and reuse, easy to disassemble and easy to remake into items that are as good as, if not better than, their original products.

1 www.footprintnetwork.org/en/index.php/GFN/page/footprint_basics_overview/ 
2 www.footprintnetwork.org/en/index.php/GFN/page/world_footprint/ 
3 EY: Are you ready for the circular economy? The necessity of an integrated approach. 

Brambles Industries Ltd purchased the Australian Government’s pallet assets in 1958 and established the Commonwealth Equipment Handling Pool (CHEP). Brambles initiated an innovative circular business model of sharing reusable assets that demonstrates best practice, including the use of biodegradable and recyclable materials, recovering and reusing materials, extending lifespan of products, making products available in a shared pool and the continued ownership of products by our business.

This model continues today under the CHEP brand helping customers transport goods through their supply chains more efficiently, sustainably and safely.  

Brambles provides standardised reusable pallets, crates and containers to customers from its service centres, as and when customers require. Customers then use that equipment to transport goods through their supply chains, and – depending on the specific pooling model in operation – either arrange for its return to Brambles or transfer it to another participant in the network for that participant's use prior to its return to Brambles. 

Brambles’ pooling model eliminates the need for customers to purchase and manage their own equipment such as one way platforms. This reduces demands for financial and on natural capital and simplifies customers' operations, while reducing waste impacts in their supply chains. Brambles retains full responsibility of its equipment through its entire life cycle, inspecting, cleaning and repairing as required to maintain appropriate quality levels. 

Ernst and Young’s report Are you ready for the Circular Economy? The necessity of an integrated approach identifies five circular business models for organisations to adopt to prepare for resource constraints, higher consumer expectations and greater supply chain transparency. Brambles’ circular business model includes all five best practice circular business models. 

Brambles’ pooling model efficiently delivers customers’ products to market while eliminating their need to purchase and dispose of one-way pallets or cardboard boxes. This improves sustainability of their supply chains. 

Customers also benefit from the scale efficiencies generated by Brambles’ network and systems, as well as our asset management knowledge and development of additional value adding services, products and solutions.

Our pooling model also eliminates the direct financial and indirect reputational risks of one-way platforms including the higher environmental impacts associated with single use packaging over its life time. We expect the concerns to increase as consumers’ expectations rise and government regulation advances.

The Brambles business model represents global best practice for sustainable production and consumption as recognised by the Ellen Macarthur Foundation (EMF). EMF rated one of Brambles' European pallets as having a ‘Circular Economy Index’ of 0.87 where a score of 1 is perfectly circular, putting Brambles in the exclusive Circular Economy 100 (CE100). 

In FY17 Brambles delivered the following sustainability benefits through our pooling model: 

• We reduced transportation distances around the world by over 62 million kilometres by collaborating with over 250 customers. This is the equivalent of more than 53,000 tonnes of CO₂ emissions.
• 10,082 tonnes of wood and 18,684 tonnes of plastic were reclaimed and reused by CHEP and IFCO through the pooling model.

Sustainability Review assurance by a third party confirmed that the Brambles Group achieved the following environmental benefits in FY18:

• Customers use of pooled pallets saved at least 1.7 million trees and at least 4,100 megalitres of water.
• Customers sharing and reusing our products instead of alternatives (like cardboard boxes) meant 2.6m tonnes of CO₂ and 1.4m tonnes of waste was eliminated from their supply chains.

Each year, Brambles listens to feedback from our stakeholders to determine the sustainability issues that are material to them. Environmental impacts and benefits (particularly in customers’ supply chains) and product innovation were ranked as two of our material sustainability topics in FY15.

Brambles’ alignment with the United Nations Sustainable Development Goals (UN-SDG)

The circular pooling model is directly aligned with: