Valuing Plastic – The Case for Business Action
Companies could become more sustainable by improving the way they measure, manage and report the amount of plastic they use in their business operations and supply chains, according to ground-breaking new research by the Plastic Disclosure Project, the UN Environment Programme and natural capital analysts Trucost.
July 3, 2014 – Concern is growing over the threat that widespread plastic waste poses to marine life, with conservative estimates of the overall financial damage of plastics to marine ecosystems standing at US$13 billion each year, according to two reports released last week at the first United Nations Environment Assembly.
The eleventh edition of the United Nations Environment Programme (UNEP) Year Book looks at ten issues flagged as emerging by previous reports over the past decade, including plastic waste in the ocean. The UNEP Year Book 2014 gives an update on each issue and provides options for action. Other areas covered include the environmental impacts of excess nitrogen and marine aquaculture, air pollution’s deadly toll, and the potential of citizen science.
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.
Valuing Plastic makes the business case for managing and disclosing plastic use in the consumer goods industry. It finds that the overall natural capital cost of plastic use in the consumer goods sector each year is US$75 billion – financial impacts resulting from issues such as pollution of the marine environment or air pollution caused by incinerating plastic.
The report says that over 30 per cent of the natural capital costs of plastic are due to greenhouse gas emissions from raw material extraction and processing. However, it notes that marine pollution is the largest downstream cost, and that the figure of US$13 billion is likely a significant underestimate.
“Plastics have come to play a crucial role in modern life, but the environmental impacts of the way we use them cannot be ignored,” said Achim Steiner, UN Under-Secretary-General and UNEP Executive Director. “These reports show that reducing, recycling and redesigning products that use plastics can bring multiple green economy benefits – from reducing economic damage to marine ecosystems and the tourism and fisheries industries, vital for many developing countries, to bringing savings and opportunities for innovation to companies while reducing reputational risks.”
“Our economies are still largely fossil-fuel based, with the environmental, economic and health costs hidden,” he added. “For example, in the polar regions, scientists have recently found tiny pieces of plastic trapped in sea ice. Transported by ocean currents across great distances, these contaminated particles eventually become a source of chemicals in our food. The key course of action is to prevent plastic debris from entering the environment in the first place, which translates into a single powerful objective: reduce, reuse, recycle.”
[stextbox id=”custom” float=”true” align=”right” width=”300″ bcolor=”d2d0d1″ bgcolor=”dbdbdb” image=”null”]“The research unveils the need for companies to consider their plastic footprint just as they do for carbon, water and forestry. 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.” Andrew Russell, director of the Plastic Disclosure Project[/stextbox]
A large and unquantifiable amount of plastic waste enters the ocean from littering, poorly managed landfills, tourist activities and fisheries. Some of this material sinks to the ocean floor, while some floats and can travel over great distances on ocean currents – polluting shorelines and accumulating in massive mid-ocean gyres.
There have been many reliable reports of environmental damage due to plastic waste: mortality or illness when ingested by sea creatures such as turtles, entanglement of animals such as dolphins and whales, and damage to critical habitats such as coral reefs. There are also concerns about chemical contamination, invasive species spread by plastic fragments, and economic damage to the fishing and tourism industries in many countries – by, for example, fouling fishing equipment and polluting beaches.
Since 2011, when the UNEP Year Book process last looked at plastic waste in the ocean, concern has grown over microplastics (particles up to 5 mm in diameter, either manufactured or created when plastic breaks down). Their ingestion has been widely reported in marine organisms, including seabirds, fish, mussels, worms and zooplankton.
One emerging issue is the increasing use of microplastics directly in consumer products, such as microbeads in toothpaste, gels and facial cleansers, the Year Book says. These microplastics tend not to be filtered out during sewage treatment, but are released directly into rivers, lakes and the ocean.
Communities of microbes have been discovered thriving on microplastics at multiple locations in the North Atlantic. This “plastisphere” can facilitate the transport of harmful microbes, pathogens and algal species. Microplastics have also been identified as a threat to larger organisms, such as the endangered northern right whale, which is potentially exposed to ingestion through filter-feeding.
Production trends, use patterns and changing demographics are expected to cause increasing plastic use, and both reports call for companies, institutions and consumers to reduce their waste.
Valuing Plastic finds that consumer goods companies currently save US$4 billion each year through good management of plastic, such as recycling, and that there is potential for greater savings. However, plastic use disclosure is poor: of 100 companies assessed, less than half reported any data relevant to plastic.
Initiatives such as the PDP and the UNEP-led Global Partnership on Marine Litter have helped raise awareness of, and begun to address, the issue. However, much more needs to be done. Recommendations for further action from the reports include:
- Companies should monitor their plastic use and publish the results in annual reports.
- Companies should commit to reducing the environmental impact of plastic through clear targets and deadlines, and innovate to increase resource efficiency and recycling.
- There should be an increased focus on awareness campaigns to discourage littering and prevent plastic waste from reaching the ocean. An application that allows consumers to check whether a product contains microbeads is already available and is expanding its coverage internationally. It can be downloaded from http://get.beatthemicrobead.org/
- Since plastic particles can be ingested by marine organisms and potentially accumulate and deliver toxins through the food web, efforts should be stepped up to fill the knowledge gaps and better understand the capacity of various plastics to absorb and transfer persistent, toxic and bioaccumulating chemicals.
“Natural capital valuation has the power to help organizations understand their environmental impacts, including pollution of the ocean,” said Richard Mattison, Trucost Chief Executive. “By putting a financial value on impacts such as plastic waste, companies can further integrate effective environmental management into mainstream businesses. By highlighting the savings from reuse and recycling, it builds a business case for proactive sustainability improvements.”
The UNEP Year Book 2014 is published in the form of an App and can be downloaded here:
Valuing plastic: the business case for measuring, managing and disclosing plastic use in the consumer goods industry can be downloaded here:
See also this interesting video on the Plastic Bank