objectives of the report Good management of plastic across its lifecycle from production to end of life is lacking in many businesses and places around the world. By measuring and understanding plastic and its associated impacts, businesses can identify context-specific measures to maximise the benefits of the material while decreasing its negative consequences. The first step on the road to good management of plastic is for companies to measure, elaborate and implement appropriate management plans, in collaboration with other stakeholders. Disclosure underpins any robust plastic management strategy. While some companies can choose to act but not report publicly, reporting is a central transparency, communication and collaboration tool. Reporting targets and achievements reassure stakeholders about the transparency of a company’s approach and add credibility to an overall company’s sustainability programme. It is also useful as a communication tool, in order to keep stakeholders updated on the progresses made. By extension, disclosure may trigger collaboration, by supporting the identification of common areas of interest and challenges. The objective of this report is to demonstrate the business case for plastic measurement, disclosure and management by quantifying the risks of plastic to a company’s activities. The use of plastic causes environmental and social impacts that can be expressed in monetary terms to reflect the scale of damage caused – the ‘natural capital cost’. Natural capital encompasses natural resources such as clean air and water, and environmental services such as food and climate regulating services. Economic activity depends on these resources and services; however, they are not often factored into corporate accounting. Natural capital valuation translates physical environmental impacts, such as tonnes of plastic reaching the ocean, into a monetary value. Put simply, it puts a price on pollution and use of resources. This allows companies to make informed decisions, for instance, over how best to reduce their environmental impacts, or whether to invest in new equipment and what technology to use. It serves as a representation of the value-at-risk to a business through its plastic use. In particular, the report: •
Identifies the main impacts of plastic use within 16 consumer goods sectors.
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Maps the plastic supply chain upstream and downstream from raw material extraction, manufacturing and use to the end of its life.
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Assesses the plastic-related natural capital cost and intensity of the largest puclicly-listed companies per sector, 100 in total.
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Estimates the impact of companies’ plastic use based on disclosure from public sources and data modelling in the absence of company disclosure.
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Highlights the natural capital benefits of more sustainable use of plastic, such as recycling.
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Presents three case studies of business excellence in plastic disclosure and management.
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Provides recommendations for companies.
The next section highlights the impacts of plastic, followed by a discussion of the business case for the proper management of plastic and natural capital valuation as a useful tool to assess risks and opportunities.
the environmental and social impacts Approximately 4% of oil production is used as feedstock and another 4% is used to fuel the plastic manufacturing process as well as other resources such as natural gas, water and chemicals.2 Extracting and processing these raw materials into plastic feedstock generates carbon emissions and other air, land and water pollutants. Plastic pellets from the manufacturing process may also enter the waste stream and the ocean in the form of microplastics, which are small particles of plastic with a maximum diameter no greater than 5mm. Microplastics are easily ingested by sea life, and now even outweigh plankton in some areas of the high seas.3 Initiatives from the plastic industry to tackle this issue include Operation Clean Sweep which promotes the better handling of plastic pellets at the manufacturing stage.14 Finally, there is an opportunity cost associated with the use of these non-renewable resources which may not be available to future generations. Impacts may also arise from chemical additives used in manufacturing plastic items. Chemical additives are added to plastic feedstock in order to enhance their performance, in terms of strength and heat resistance for example. These include fillers, plasticisers, stabilisers, flame retardants and colourings. Some of these substances are toxic, bioaccumulative, and persistent in
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