Case Details
Colgate’s Toothpaste Tube in Hong Kong: From Recyclable to Recycled
Since the introduction of a recyclable high-density polyethylene (HDPE) tube in 2019, Colgate-Palmolive has transitioned approximately 97% of toothpaste SKUs in North America and 98% globally to recyclable formats. These tubes are now sold in more than 70 countries worldwide.
When the tube was launched in Hong Kong, it faced a stalled local municipal solid waste (MSW) charging scheme, tube exclusion from key local recyclable collectors, and a persistent consumer “say-do” gap, leaving Brad Han, General Manager of Colgate Hong Kong, to justify continued local investment in pushing the transition.
The case provides a foundation for understanding sustainable supply chain and open-source innovation, and the connected systemic barriers and challenges in delivering a closed-loop economy. Students will learn to appreciate the gap between “recyclable” and “recycled” and the role of open-source innovation in ESG, as well as strategies to close the loop.
Learning Objective:
- Evaluate the "recyclable versus recycled" gap. Explain why product redesign is a necessary but insufficient condition for circularity, and identify the infrastructure, policy, and behavioral barriers that separate a recyclable product from a recycled one.
- Assess the strategic role of open-source innovation in ESG strategy. Weigh the supply chain risks (loss of first-mover advantage, enabling competitors to catch up) against the competitive and reputational rewards (industrywide critical mass, recycler buy-in, category leadership) of sharing proprietary sustainable technology.
- Examine the significance of individual versus collective extended producer responsibility (EPR) to the design and implementation of a closed-loop supply chain and its impact on reverse channel structure for the collection of used products from customers.
- A fourth integrative objective is decision-making under incomplete control. It offers a useful bridge to facilitate broader conversations about corporate sustainability strategy under systemic, rather than firm-level, constraints.