How big is your plastic footprint?

At least, according to ground-breaking new research by the Plastic Disclosure Project, the UN Environment Programme and natural capital analysts Trucost. The report, entitled Valuing plastic: the business case for measuring, managing and disclosing plastic use in the consumer goods industry, was published yesterday (23 June) at the UN Environment Assembly in Nairobi, Kenya.

The research is the first-ever assessment of the environmental costs of plastic in business. According to Andrew Russell, director of the Plastic Disclosure Project, the study points up the need for companies to consider their plastic footprint just as they do for carbon, water and forestry. It calculates the amount of plastic used by stock exchange listed companies in sixteen consumer goods sectors and assesses levels of corporate disclosure on plastic. “By measuring, managing and reporting plastic use and disposal through the PDP, companies can mitigate the risks, maximize the opportunities, and become more successful and sustainable businesses,” Russell said.

Trucost calculates the total natural capital cost of plastic in the consumer goods industry to be more than US$75 billion per year. The cost comes from a range of environmental impacts including the harm done by plastic litter to wildlife in the ocean and the loss of valuable resources when plastic waste is sent to landfill rather than being recycled.

The consumer goods sectors assessed are: athletic goods, automobiles, clothing and accessories consumer electronics, durable household goods, food, footwear, furniture, medical and pharmaceutical products, non-durable household goods, personal products, retail, restaurants and bars, tobacco, toys and soft drinks.

The research shows the value at risk for consumer goods companies if they fail to mitigate the threat by taking positive action. Tighter regulation, competition and consumer demand may force firms to pay the natural capital costs

Smart, forward-looking companies can take advantage of opportunities from improving management of plastic such as cutting costs through more efficient use of plastic, developing ‘closed loop’ business models that recover resources locked up in plastic, and winning customers by creating sustainable products. Further benefits include creating brand value, attracting investment and improving employee satisfaction.
Plastic use in the food sector has the largest impact in absolute terms, responsible for almost a quarter of the total natural capital cost. The toy sector has the largest natural capital intensity, as the natural capital cost of its plastic use is equivalent to 3.9% of its annual revenue.

The most significant downstream impact of plastic use by the consumer goods sector is marine pollution, which has a natural capital cost of at least $13bn. This is likely to be an underestimate due to the need for further scientific research, for example, on the impact of small particles of plastic known as microplastic. The most significant upstream impact is greenhouse gas emissions released from producing plastic feedstock, which is responsible for almost a third of the total natural capital cost.

Richard Mattison, chief executive of Trucost, said: “Natural capital valuation has the power to help organizations understand their environmental impacts, including pollution of the world’s oceans. By putting a financial value on impacts such as plastic waste, companies can further integrate effective environmental management into mainstream business. By highlighting the savings from reuse and recycling, it builds a business case for proactive sustainability improvements.” (KL)

http://www.trucost.com