Companies using sustainable plastic could deliver $3.5
billion environmental savings, according to a discussion paper published
today by Trucost. To achieve these benefits, business and policymakers
have to massively scale up initiatives such as plastic recycling and
bioplastics.
The Trucost paper Scaling Sustainable Plastics: Solutions to Drive Plastics towards a Circular Economy identifies
the actions needed by companies, governments, environmentalists and
researchers to achieve industry-wide scaling up of sustainable plastics.
The paper draws on interviews with plastics and recycling experts, as
well as case studies of companies that have worked with Trucost to
measure the environmental benefits of initiatives, including US computer
giant Dell and green technology company Algix.
Plastic has many benefits ranging from reducing food waste by
providing packaging to cutting transport pollution due to its light
weight. However, around 8% of current fossil fuel dependency is
attributed to plastic production and much of our plastic is used just
once and then thrown away. The environmental cost to society of plastic
use by the consumer goods sector alone is estimated at $75 billion,
largely due to climate change and pollution impacts, in particular
marine pollution.
Innovations to achieve a more circular economy such as closed loop recycling, plant-based plastic and biodegradable polymers offer ways to reduce the environmental cost of conventional, fossil fuel-based plastic. But so far, few companies are pioneering these new processes and technologies.
For example, Dell’s OptiPlex 3030 computer is produced using recycled plastic recovered from electronic equipment from its own take-back scheme. Trucost’s environmental benefit analysis identifies environmental cost savings to society of $700 million per year if the entire computer manufacturing industry switched to closed-loop recycled plastic.
Innovations to achieve a more circular economy such as closed loop recycling, plant-based plastic and biodegradable polymers offer ways to reduce the environmental cost of conventional, fossil fuel-based plastic. But so far, few companies are pioneering these new processes and technologies.
For example, Dell’s OptiPlex 3030 computer is produced using recycled plastic recovered from electronic equipment from its own take-back scheme. Trucost’s environmental benefit analysis identifies environmental cost savings to society of $700 million per year if the entire computer manufacturing industry switched to closed-loop recycled plastic.
“There are significant benefits to embracing a circular economy“said
Scott O’Connell, Director, Environmental Affairs at Dell. “Our closed
loop plastics supply chain enables a resource-efficient product made
from recycled content that costs Dell less. Companies need to realize
sustainability programs are just good business.”
Algix makes a low-carbon polymer called Solaplast from algae. Trucost
demonstrates that if the footwear sector switched to Solaplast, it
could reduce its environmental cost by $1.5 billion per year. If the
soft drinks sector used the algae-based plastic, it could deliver
benefits to the tune of $1.3 billion.
Trucost’s paper identifies the barriers that are preventing business
sectors from scaling up use of sustainable plastic and recommends
solutions to overcome them. First and foremost is that waste plastic is
undervalued in our economy. This is because the market does not price in
environmental costs such as climate change and human health impacts
from petrochemical plastic production, or the damage done to the marine
environment by plastic waste.
The solution is for policymakers to correctly value plastic,
providing an incentive for companies and consumers to recycle it into
new products and reduce the need for virgin polymers. It would also
encourage the switch to plant-based and biodegradable-plastic where
appropriate. Businesses can benefit from this shift to a circular
economy by acting now to understand the risks and opportunities it
presents. By valuing the environmental costs and benefits of plastic
use, companies are in a better position to take informed decisions.
The paper contains a dozen further recommendations for different
stakeholders aimed at increasing access to feedstock, improving product
quality, addressing financial challenges, and boosting market demand.
“Our research identifies solutions to the challenges of scaling up
the market for sustainable plastic,” said Richard Mattison, chief
executive of Trucost. “By assessing the environmental cost benefits of
sustainable plastic initiatives, companies and governments can better
understand the business case for investment.”
Doug Woodring, co-founder of the Ocean Recovery Alliance which
supported the discussion paper, said: “Companies now realize that
environmental sustainability has a positive impact not only on the
communities they serve, but also on their own bottom line. Managing the
plastic ecosystem through recycling, reuse and closed-loop methods can
create jobs, save money, improve brand value and create supply-chain
efficiency.”
Download research Scaling Sustainable Plastics: Solutions to Drive Plastics towards a Circular Economy
The headline results of Scaling Sustainable Plastics: Solutions to Drive Plastics towards a Circular Economy were launched at the Plasticity Forum in Shanghai 27-28 April 2016. The Plasticity Forum showcases sustainable solutions and market
opportunities for transforming plastic waste into a valuable resource.
The next event will be held in the UK on 21 September 2016 as part of
the London Design Festival.
Press Release dated May 17, 2016
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