The Pallet LOOP says that the “financial PayBack for returned pallets means reusing pallets stacks up in more ways than one.”
Companies across UK construction can claim a share of more than £1.5 million(1) (GBP) by returning bright green LOOP pallets for reuse, according to new figures released by The Pallet LOOP – the circular economy pallet reuse scheme for the construction sector that’s part of BSW Group.
In its first six months, The Pallet LOOP has issued more than 450,000(2) of its distinctive green, reusable pallets to British Gypsum to transport its bagged plaster and plasterboard products. With a financial incentive of up to £4 available on each of these pallets(3), when companies return them to The Pallet LOOP, there is now a huge pot of money available for businesses throughout the building materials supply chain that sign up for LOOP collections.
A growing number of companies are already said to be using The Pallet LOOP’s collection service and reaping the rewards. To date, The Pallet LOOP states it has paid out around £150k(4) to users of the scheme, including builders’ merchants, principal contractors and housebuilding companies – and the number of pallets being returned is growing month on month.
For instance, in October, the number of green pallets collected was around 30% of the number it issued that month(5). This figure already exceeds previous benchmarks for standard pallet return rates in the construction sector, which have historically hovered around the 10% mark(6).
In addition to claiming up to £4 back for every green LOOP pallet returned, companies using the scheme “could be saving vast amounts of money on waste costs, while also cutting their carbon footprint and helping to reduce the unnecessary waste of a precious natural resource.”
So far, The Pallet LOOP estimates it has saved companies returning pallets up to £800k on skip costs(7) whilst it has also calculated that putting pallets in wood skips can cost up to £8 per pallet(8). Put that money together with the LOOP PayBack, and companies participating in the initiative “could be up to £12 better off for every green LOOP pallet that gets recovered for reuse – further increasing the financial incentive.”
Paul Lewis, Founder of The Pallet LOOP, explained: “Getting a financial reward for returning pallets, and saving on waste costs is good news for merchants, principal contractors and housebuilding companies up and down the country as they face fresh operational headwinds and get to grips with changes coming into force as part of the recent budget. From the start, our model was designed to be financially equitable for everyone in the building materials supply chain, as well as better for the environment.
“What we’ve achieved in the first six months shows our vision is now a reality. Companies returning green LOOP pallets are getting a real boost to their bottom line. They can also access sustainability data relating to the number of pallets they have returned via our Power Bi platform. We are delighted with the progress made to date. But this is just the start – with more LOOP pallets set to hit the sector in the year ahead.”
Paul continued: “From December, Isover will start moving its insulation materials on our circular economy pallets. We’re also in advanced discussions with other building material manufacturers that want to follow Saint Gobain’s sustainable leadership and switch to using LOOP. By the end of 2025, we estimate we will have issued more than 2.5 million LOOP pallets – creating a PayBack pot of up to £10 million.
“If you are a company in construction, and you haven’t done so already, now is the time to get in the LOOP and start sending back green pallets.”
Signing up to The Pallet LOOP is said to be easy. All companies need to do is register with LOOP, store pallets, book a collection and then watch the benefits stack up. The Pallet LOOP will also pick up white pallets (charges apply).
To register for LOOP collections, email: setmeup@thepalletloop.com or call 0800 024 6130. Once registered, companies can book a collection via: collections@thepalletloop.com.
Further information about The Pallet LOOP is available at: www.thepalletloop.com
Footnotes
1. Figures based on 450,000 LOOP pallets issued x up to £4 less LOOP payback
2. The Pallet LOOP pays up to £4 back for each green LOOP pallet returned for reuse – subject to pallet condition. Pallets that are damaged or need cleaning trigger a PayBack of £2.
3. Pallets issued up to the end of October 2024 = 450,000.
4. Actual LOOP PayBack credited for pallets returned to date (up to mid-November) = ~£150,000.
5. The October 2024 pallet return rate of 30% relates to LOOP’s standard construction sector pallet (for bagged product).
6. Estimates suggest pallet reuse in the UK construction sector has historically sat around the 10% mark.
7. Based on LOOP and white pallet collections.
8. The Pallet LOOP estimates 40 x pallets will fit in a 12-yard skip, at an average cost of £320 = £8 per pallet
