ESG, which stands for Environmental, Social, and Governance, is a term that’s widely used by companies and investors today.
The amount of money invested in ESG-related assets has grown significantly. A Bloomberg study shows that sustainable investing has become very popular, with around $37.8 trillion in assets managed this way in the fiscal year 2022.
The same study predicts that worldwide ESG assets are expected to surpass $53 trillion by the fiscal year 2025. Companies are also working hard to enhance their ESG performance. They do this to attract investors, meet legal requirements, and respond to the needs of their customers.
Plastic Production and Waste
The increase in plastic production and usage around the world is leading to a greater amount of plastic waste being generated daily.
In India, it’s estimated that about 3.4 million tonnes of plastic waste are produced each year, but only 30 percent of it gets recycled (according to a report from the Marico Innovation Foundation).
The Central Pollution Control Board (CPCB) reports that plastic makes up 8% of all solid waste, with Delhi producing the most, followed by Kolkata and Ahmedabad.
The main challenge here is sorting and reusing plastic waste properly. While recycling is the preferred method for dealing with plastic waste, a significant concern is the untreated waste that ends up in the environment.
Types of Plastic Waste by Contribution Weight
Various types of plastics are essential components in numerous industries and products, highlighting their integral role in modern society.
Polyethylene terephthalate (PET) stands out for its lightweight and durable properties, making it a popular choice for water and soft drink bottles, as well as food jars.
Polyvinyl chloride (PVC) finds its niche in cables and plumbing pipes due to its exceptional resistance to corrosion and excellent electrical insulation.
High-density polyethylene (HDPE) is the preferred material for shampoo bottles and packaging, prized for its sturdiness and moisture resistance.
Common Plastics and Their Uses
Low-density polyethylene (LDPE) is commonly used for crafting grocery bags and various packaging solutions. Polypropylene (PP) boasts resilience and versatility, making it the go-to material for bottle caps, medicine bottles, and chip packaging.
Polystyrene (PS) takes centre stage in the production of disposable cups, cutlery, and packaging foam, thanks to its insulating and lightweight properties.
Polycarbonate (PC) shines in food packaging, electronic devices, and defence equipment, owing to its strength and optical clarity.
Finally, nylon’s exceptional strength and durability make it an ideal choice for crafting fishing nets, clothing, and ropes.
These diverse plastics serve indispensable roles across a wide spectrum of applications, shaping the products and industries we rely on daily.
Environmental Impacts of Plastic Waste
Unrecovered and unrecycled plastic waste poses significant environmental challenges due to plastic’s complex structure, which takes thousands of years to break down.
Plastic waste presents a complex environmental problem. To begin, it often blocks drains, which can result in flooding in cities. Additionally, animals consume plastic waste, posing dangers to ecosystems and potentially impacting people who eat animal products.
Furthermore, plastic waste that finds its way into the oceans harms marine creatures and disrupts their habitats, which has a direct impact on various species. Lastly, a significant amount of plastic ends up in the natural environment and landfills.
Over time, it breaks down and releases harmful chemicals, which can enter our food chain and water sources. These issues emphasise the immediate need to address plastic waste management to protect our environment and well-being.
Why Should Businesses Care About Plastic Pollution?
Businesses, especially those actively contributing to plastic pollution, should take proactive steps to address this issue instead of waiting for regulations to compel them.
Adopting sustainable practises and reducing plastic waste can have various benefits.
Firstly, it can enhance their reputation, earning them favour with consumers, investors, and local communities.
Secondly, it acts as an effective risk management strategy, protecting companies from regulatory fines and preserving their image.
Thirdly, it leads to substantial cost savings by reducing waste, promoting recycling, and exploring alternative packaging materials, ultimately improving operational efficiency.
Lastly, tackling plastic pollution encourages innovation, creating opportunities for companies to develop sustainable alternatives and gain a competitive edge in the market.
These advantages not only contribute to a company’s sustainability but also strengthen its long-term success and resilience in an increasingly environmentally conscious world.
Companies should publicly declare their reduction goals and consistently monitor and report their progress, alongside their other Environmental, Social, and Governance (ESG) initiatives.
This transparency not only demonstrates their commitment but can also influence regulators to adopt higher standards, providing a competitive advantage and attracting ESG-focused investors.
The Road to Becoming ESG-Friendly
Getting started on the journey to become ESG-friendly is important for businesses today. In this section, we will examine the steps and initiatives that companies can undertake to initiate their ESG journey.
1. Evaluate and Quantify Plastic Impact
Companies should thoroughly assess their plastic consumption and waste generation throughout their entire supply chain.
This evaluation will help pinpoint areas with the highest plastic usage and establish clear reduction targets.
2. Implement Waste Reduction Strategies
Businesses can adopt various approaches to minimise waste, such as reducing excessive packaging, optimising product designs to use less plastic, and embracing circular economy principles to cut down on waste production.
3. Promote Recycling and Circular Economy
Companies should actively support recycling by implementing in-house recycling programmes and collaborating with recycling partners.
Embracing circular economy models that prioritise reuse and recycling can substantially reduce plastic waste.
4. Invest in Product Innovation
Companies can allocate resources to research and development to discover eco-friendly alternatives to plastic, such as biodegradable or compostable materials.
Encouraging customers to switch to reusable products also contributes to reducing plastic waste.
5. Collaborate and Advocate
Engaging in partnerships, industry collaborations, and multi-stakeholder initiatives can amplify the impact of efforts to combat plastic pollution.
Furthermore, businesses should advocate for policy changes that promote sustainable practises and provide incentives for reducing plastic waste.
Business Opportunities
Additionally, there are significant business opportunities when it comes to plastic collection, monitoring, disposal, and recycling.
Many startups are returning to natural materials to pioneer innovative packaging alternatives, including plantain leaves, bamboo, paper, and biodegradable plastics.
Furthermore, natural materials are finding applications in replacing plastic furniture and other products.
This shift towards sustainable materials not only addresses environmental concerns but also opens up new avenues for entrepreneurial ventures.
Final Takeaways
Addressing plastic pollution is now imperative for ESG-friendly companies. It aligns with consumer preferences, investor interests, and regulatory trends.
Taking action to reduce plastic waste enhances reputation, lowers risks, and fosters innovation. In this regard, adopting sustainability is key to long-term success in the evolving ESG landscape.
For further enquiries on how to get started on your ESG journey, get in touch with TC, one of the most established brands, plastic bag manufacturers and plastic bag suppliers in Asia Pacific.
We produce plastic packaging and products both for the domestic and international markets. Our reliable products, manufactured in our own plastic bag factory, are produced using sustainable OXO-biodegradable plastic, HDPE plastics, and more.