Ambio Oy

Accelerating the Shift to Sustainable Plastics

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Authors

Ralle Murto

Ralle Murto

Mari Wallgren

Mari Wallgren

Olli Ojanaho

Olli Ojanaho

Eva Facila

Eva Facila

School

Hanken School of Economics

Hanken School of Economics

Professor

Martin Fougere

Martin Fougere

Global Goals

9. Industry, Innovation and Infrastructure 12. Responsible Consumption and Production 13. Climate Action 17. Partnerships for the Goals

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Summary

Ambio Materials is a B2B marketplace that connects suppliers of bio-based and recycled plastics with manufacturers and brands seeking sustainable raw materials. By streamlining the procurement process, Ambio makes it easier and more cost-effective for businesses to adopt environmentally friendly plastics, directly supporting UN SDG 12: Responsible Consumption and Production. Additionally, Ambio helps plastic recycling companies expand their reach, fostering innovation and growth in the circular economy.

Innovation

Ambio’s platform enables businesses to efficiently search, compare, and source high-quality recycled and bio-based plastic materials tailored to their specific requirements. The suppliers of recycled and bio-based plastics can grow their sales, improve their efficiency and reduce admin work. Ambio focuses on innovating its business model to enhance efficiency, transparency, and digitalization. This transformation occurs through Ambio's digital tools, which standardize materials and guarantee a continuous supply of quality products. By leveraging these innovations, Ambio addresses plastic waste reduction and facilitates the transition to more sustainable materials in the plastics sector.

Accelerating the Shift to Sustainable Plastics

Ambio is a B2B marketplace co-founded by Tommi Bergström and Elmo Pakkanen, committed to transforming the plastics industry. Their platform connects suppliers of recycled and bio-based plastics with companies eager to make eco-friendly choices. By simplifying the procurement process, Ambio empowers businesses to grow and access high-quality, sustainable materials—making a positive impact on the planet, one plastic granule at a time.

Inspiration

Tommi Bergström, CEO and co-founder of Ambio, along with co-founder Elmo Pakkanen, aimed to address customer needs while contributing to environmental sustainability. Ambio's innovation emerged from the intersection of B2B business models and the sustainable materials transition that the founders researched. Their research shaped Ambio's innovations, ensuring they effectively met market needs. From early on, they prioritized customer involvement in the development process, which ensured that their solutions were tailored to market demands.

Their commitment to sustainability is reflected in their mission statement: “Accelerating the transition to sustainable materials.” This guiding principle not only drives their business but also serves as a source of motivation and inspiration, reminding them of the meaningful difference they aim to make in the industry.

Overall impact

Plastic production, consumption, and waste pose significant sustainability challenges due to the depletion of fossil fuels, lengthy degradation times, and pollution in ecosystems. Traditional plastics contribute to landfill waste, marine pollution, and greenhouse gas emissions, making these issues critical environmental concerns.

In response to these challenges, recycled plastics and bio-based initiatives (such as Ambio’s business model) offer promising solutions. By promoting the recycling of plastics, Ambio helps reduce the demand for virgin materials and minimize waste. Bio-based plastics, derived from renewable sources like plants, provide a sustainable alternative to petroleum-based products, fostering a circular economy that lessens environmental impact and promotes responsible resource use.

Ambio’s commitment to sustainability drives its business and contributes to several Sustainable Development Goals (SDGs). Through its digitalized solutions, Ambio enhances effectiveness and transparency, supporting the building of resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation (SDG 9). By facilitating transactions that replace conventional plastics with recycled materials in consumer products, Ambio advances responsible consumption and production patterns (SDG 12). 

The positive impact on climate change (SDG 13) is evident, as the use of recycled plastics significantly lowers carbon emissions, with the environmental benefits increasing with each kilogram of recycled material. Ambio's mission is centered on accelerating the transition to these sustainable materials.

Ambio partners with plastic recycling companies to expand their market reach and increase the circulation of recycled plastics. The company plans to enhance collaboration with industry associations to further advance sustainable materials. Ultimately, multi-stakeholder partnerships are crucial for mobilizing knowledge, expertise, technology, and financial resources, which are essential for achieving the sustainable development goals. These partnerships (SDG 17) play a vital role in Ambio’s success.

Business benefit

By connecting plastic recycling companies with plastic conversion firms, Ambio expands the reach of the recycling industry into new markets and customer segments, facilitating growth for the company itself and its partners. This connection not only helps plastic conversion companies secure a reliable supply of high-quality raw materials but also enables end-user companies to access tailored products that meet their specific needs.

As a result of these efforts, Ambio is well-positioned for growth. The company is set to become a profitable and established player in the recycled plastics market which is expected to grow from USD 55.46 billion in 2024 to USD 107.13 billion by 2032 (Fortune Business Insights, 2024). This growth is bolstered by increasing regulations, including the EU's new minimum targets for recycled plastic per unit of packaging, which will drive demand for recycled and bio-based materials in the coming years (European Parliament, 2024). 

Furthermore, the EU's ban on exporting plastic waste to non-OECD countries supports the supplier side of Ambio’s business model, as sellers are now incentivized to find buyers within the EU. Moreover, the shift in consumer behavior towards more sustainable choices is likely to benefit Ambio’s business in the near future. 

Ambio operates under the guiding principle of the triple bottom line, focusing on people, the planet, and profit, ensuring that its operations align with broader sustainability goals. 

Social and environmental benefit

Tommi and Elmo realized their dream of being full-time entrepreneurs while driving the transition toward more sustainable plastic materials in the industry. They find motivation in assisting small and mid-sized companies to locate and sell sustainable materials more efficiently. As a result of their efforts, customers often benefit from not only the availability of sustainable materials but also cost savings.

Thanks to advances in the quality of recycled plastics, these materials can now be used in more demanding applications, including car parts. The difference in emissions compared to virgin plastics is significant; for instance, the CO2 emissions of recycled polypropylene plastics are approximately 2 kg lower per kilogram of plastic. 

Ambio is dedicated to helping companies effectively find the right high-quality materials for their specific needs. This focus not only benefits the environment by reducing emissions associated with virgin plastics but also allows customers to achieve economic advantages. In the best-case scenario, customers can positively impact both the environment and their financial outcomes. 

Interview

Tommi Bergström, CEO and co-founder

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Business information

Ambio Oy

Ambio Oy

Helsinki, Uusimaa, FI
Business Website: https://ambiomaterials.com
Year Founded: 2023
Number of Employees: 2 to 10

Ambio Materials is a B2B marketplace for bio-based and recycled plastic materials, offering a wide range of raw materials for the plastic conversion industry. Specifically, Ambio connects suppliers of recycled and bio-based plastics with manufacturers and brands seeking sustainable solutions. By simplifying the search, comparison, and purchase process, Ambio makes the procurement of sustainable plastics both easy and cost-effective. In addition, Ambio helps plastic recycling companies reach new markets, grow their customer base, and create new business opportunities—all while supporting the transition to a more sustainable industry.