Plastic Industry ESG Thematic Report, 2023

Plastic Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100163
  • Format: Electronic (PDF)
  • Number of Pages: 63

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

Plastic production is one of the serious concerns that affects the environment and the societal community living around. To minimize such risk several mitigations has been implemented that will be discussed below.

In an in-depth analysis of plastic production, it has been observed that the production of plastic has increased due to the high dependency on fossil fuels and major investments in petrochemical infrastructure. Furthermore, plastic production is expected to reach 2,000 metric tons by 2050. A lot of plastic is made up of chemicals that negatively impact people and the environment. The adverse effects of plastic pollution on biodiversity affect ecosystems, animal species, and plant species, impairing their ability to provide essential services to society. While plastic leakage has led to a negative impact on marine life, plastic pollution also impacts fresh water and terrestrial ecosystems. Plastics have been shown to cause cancer and hormonal changes, as well as several other health impacts. Children, poorer communities, workers in the informal sector, and small islands in developing countries suffer the greatest impacts.

An alternative to plastic is being used that has less impact on the ecosystem and people's health. Globally, biodegradable plastics, recyclable plastics, compostable plastics, bamboo, glass, and many more are being used as alternatives to minimize the impact of plastics on the environment.

Plastic Alternatives and Innovations

Earth has suffered many adverse effects because of changing climate conditions. Plastic is one of the most significant polluters and has a negative impact. Several alternatives have been proposed to deal with this problem such as Bioplastic, which is composed of natural substances and conserves energy in their production process, while Biodegradable plastic, which is composed of traditional petrochemicals, breaks down easily by soil, thereby reducing waste further. Biodegradable plastics utilize natural products as their main component; therefore, using bioplastics can dramatically reduce the amount of petroleum used, and therefore, lessen its environmental impact. Additionally, composting of bioplastics makes soil fertile, assisting in the enhancement of soil fertility. Recycled plastics also reduce fossil fuel dependency as well as petroleum usage.

Also, several innovations have been developed to combat plastic pollution. Among its innovations is the way it is reinventing retail in Indonesia, delivering refills of everyday necessities to homes without creating any plastic waste. Another innovative solution offered by the company is the world's first fully patented compostable and disposal diaper, further reducing plastic consumption. Furthermore, there are low-tech plastic collection systems being deployed in the rivers that help in reducing plastic pollution in the rivers.

ESG Challenges

During our research on plastic waste, it was discovered that recycling is one of the most effective ways to manage plastic waste, but there are also some drawbacks associated with it. The emerging economies still lack proper waste management systems for plastics. Plastic comes in several different forms with each one having its own degradation process. Lack of information leads to difficulty in the recycling process. A lack of knowledge in terms of technology can also lower the level of technology, ultimately affecting the level of recycling. Further, the scaling up of plastic waste recycling requires the right amount of technology and the right process to be implemented. Access to sorted plastic waste also plays a major role in plastic waste recycling.

In addition, several initiatives to get rid of plastic waste have been launched. The top companies are producing plastic bottles using 100% recycled plastic, and instead of plastic straws that contribute to plastic waste, firms are opting for renewable or recycled straws. Companies are trying to get rid of single-use plastic instead they are transitioning to reusable bags, and recycling materials, switching to packaging that uses 100% recycled or biodegradable materials, and so on.

Growth of the Plastic Industry

The global plastic market is projected to reach USD 42.2 billion by 2027, growing at a compound annual growth rate (CAGR) of 3.1%. Over the forecast period, the market is expected to be driven by rapid industrialization, urbanization, and concerns about improper plastic waste management. Additionally, the research also highlights key factors, innovations, and strategies implemented in the plastic industry.

Key Companies in this theme

    • BASF SE

    • SABIC

    • Dow Inc.

    • DuPont de Nemours, Inc

Scope of the Plastic 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 Plastic Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Electric Scooter Sector, globally

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

    • Identifying ESG risks and opportunities to business among leading players in the Electric Scooter industry

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

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