Plastic Package Industry ESG Thematic Report, 2023

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

A whole new era of changes in sustainability are driven by forces of change by the governments, corporations, and consumers in terms of environmental, social and governance.

The wide range applications of plastic in various industries such as e-commerce, automotive, fast food, pharmaceutical and personal care, where it used for packaging as part of global value chain in the said industries and the sourcing of plastic from the natural oil gas is a challenge that negatively impacts the market in environment of ESG. The other important factor that adversely affects the industry is the degrading aspect of the plastic into the environment. The plastic packaging market causes a significant negative impact on the environment from the perspective of the United Nations Sustainable Development Goals (UN SDG) perspective.

Key leaders of the plastic package market are aware of the negative aspects of the plastic products, focusing on creating and executing the policies and strategies that bring positive outcomes from an ESG perspective.

ESG Trends

The extraction of plastic for the functioning of the plastic package Industry is one of the key challenging factors in the industry. Plastic is sourced from different kinds of sources such as coal, natural gas, salts and other toxic chemicals such as benzene and vinyl hydrochloride. The sourcing of fossil fuel i.e. Natural gas strains the environment, since the extraction process leaves intense amounts of carbon footprint, contributing to the increase of global warming and climate change thereby hindering the progress towards UN SDG 13: Climate Action.

Apart from the aforementioned aspects, the lack of waste management of the plastic in the plastic package Industry causes plastic pollution, another major issue. According to a report, at least 14 million tons of plastic was found in the oceans, and around 380 million tons of plastic is produced each year on an average. A report has stated that at least 80% of the ocean debris is made up of plastic, disposed of irresponsibly from the packages. In terms of SDG 6: Responsible consumption and production, the companies operating in this sector are responsible for damaging the environment. Some of the ingredients used in the plastic such as Phthalates and Flame retardants are reported to be toxic to marine life, endangering the wide range of species of marine life, which ultimately has a negative impact on SDG 14: Life under water.

The other negative impact in terms of environment and social aspects of the ESG is that the components in plastic such as benzene and vinyl hydrochloride are reported to be carcinogenic in nature, risking human life, causing damage to human health at social scale. These aspects act as hurdles in achieving the UN SDG 3: Good Health and Wellbeing.

In response to the negative ESG aspects discussed above, one of the key players of the market has made policies, incorporating the method of recycling, where in its product portfolio around 76% of products are recyclable, reducing the sourcing and integrating the plastic waste management into its policy. The key player has also integrated biomaterial based out of sugar cane and corn, which makes the packaging material biodegradable, aligning themselves towards the UN SDG 6: Responsible consumption and production. 

Growth of the Plastic Package Market

The plastic package market at global scale is economically valued at USD 355 billion as of 2021 and forecasted to expand with a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030. Plastic being an efficient alternative to glass in terms of durability and metals in terms of weight is one of the commercial factors that drive the market. However, in terms of ESG, this has a significant negative impact on the environment. Majority of the key players have pledged to reduce the sourcing of natural resources such as natural gas and coal and managing the waste through introduction of a circular economy, implementing the UNSDG goal of innovative productions and retaining biodiversity by reducing the plastic waste.

Key Companies in this theme

    • Amcor plc

    • Sealed Air

    • Coveris

    • Berry Global Inc.

    • Mondi

    • Sonoco Products Company

    • WINPAK LTD.

    • CCL Industries, Inc.

    • Constantia Flexibles

    • Alpha Packaging

Scope of the Plastic Package 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 Aspects of the Plastic Package Industry ESG Thematic Report

    • Offers a global perspective of the plastic packaging market and the policies and measures taken by the companies operating in this sector for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.