Bioplastics Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Bioplastics Industry

As a result of intense research and development (R&D) operations, bioplastics are becoming more and more popular, and numerous new processes and approaches are being developed. An increasing number of recognized companies are using bioplastics to improve the image of their products due to the environmental advantages and impacts of these products, which are directly fueled by the sustainability trend. Additionally, the use of renewable resources and the consequences on sustainable growth of bioplastics have caught the interest of investors, particularly considering the developing bio-economic orientation. Since about ten years ago, there have been new bio-based polymers on the market. Standard polymers like polyethylene, polypropylene, PVC, or PET, as well as high-performance polymers like polyester or nylon, have recently been completely or largely replaced by their renewable raw materials equivalents.

It's difficult to say for sure that bioplastics are more environmentally friendly than conventional plastics now, but as scientists worldwide work to create greener varieties and more effective manufacturing techniques, bioplastics do show promise in reducing plastic pollution and our carbon footprint which will boost the growth of the industry.

ESG Trends

The sustainability of some farming practices used to cultivate the raw ingredients has come under scrutiny, even though bioplastics are meant to be 100% biodegradable and made from only renewable resources. If lost or left behind, "biodegradable" plastics will add to the plastic pollution problem. They do not degrade as rapidly and thoroughly as the name might suggest in the environment, which can be harmful to ecosystems and species. However, there are a few situations in which adopting biodegradable plastics could be advantageous for the environment.

In some countries, organic waste is collected in bags that can be composted in industrial settings. In comparison to non-disposable containers, they can provide a cleaner and more practical alternative for people to collect food scraps for composting. A waste management expert claims that fewer organics in the trash equals less fermentation, which enables waste management workers to visit less frequently to collect up the trash. This can reduce costs while also increasing the number of other materials—like paper, glass, plastic, and metal—that are recycled. Bioplastics are still plastics, there is no denying that. Some products cannot be promoted as "planet-safe" only because they are made of plants or have the capacity to biodegrade in certain circumstances."

ESG Challenges

There are a lot of environmental consequences for bio-based polymers. The land required to grow the plants has drawn significant criticism. According to an expert, an increase in bio-based plastics might put more strain on arable land, potentially causing water shortages, desertification, and the loss of habitats and biodiversity and, reliance on industrial agriculture for the manufacture of new polymers may lead to an increase in pesticide use and monoculture cropping.

Additionally, compared to conventional plastics made from fossil fuels, bioplastics have a greater impact on ozone depletion. Although it is usually believed that bioplastics are more environmentally friendly than conventional plastics, a recent study discovered that this wasn't always the case when the materials life cycles were considered. Bioplastics can contaminate batches of recovered plastic and damage recycling infrastructure if they are not properly disposed. Also, most bioplastics and plant-based materials contain toxic chemicals which can have a negative impact on health.

Growth of the Bioplastics Market

The market size of bioplastics as of 2021 was valued at USD 10.2 billion and is expected to expand at a compound annual growth rate (CAGR) of 17.1% from 2022-2030. India’s market is projected to grow at a CAGR of 23.91 % to reach US$754.648 million by 2025 from US$208.475 million in 2019. End-use industries are anticipated to profit from a rise in population and increased health awareness in Asia Pacific's growing economies, which will boost demand for bioplastics over the projected period.

Due to the rising demand for bio-based packaging in the food and consumer products sectors, the global market for bioplastics is anticipated to increase significantly during the forecast period. Bio-based plastics and bags have a better tensile strength and are environmentally beneficial. As a result, it is anticipated that during the forecast period, demand for bioplastics will increase.

Key Companies in this theme

    • TEIJIN LIMITED

    • TORAY INDUSTRIES, INC.

    • Toyota Tsusho Corporation

    • Avantium

    • Solvay

Scope of the Bioplastics Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Bioplastics Industry ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the bioplastics sector, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the market

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment