Glossary

Plastic Footprint Part II: Mitigation Metrics That Matter

Plastic Footprint Part II: Mitigation Metrics That Matter

Plastic Footprint Part II: Mitigation Metrics That Matter

The critical connection between plastic mitigation and corporate leadership

by: Leticia Socal | May 24, 2023

 

Part I of this blog series showcased the benefits of executing a baseline plastic footprint analysis. Now it is time to understand that the risks at stake are equally valuable.

Part II outlines the key metrics corporate leadership will find interesting when planning and budgeting for their plastic mitigation strategy. Once the scope and execution of a plastic footprint has been mapped, planning internal buy-in to implement mitigation actions is essential. Acting now is vital for corporations due to timely institutional changes and because circular plastic is still in its pioneer stage. Early and effective action will establish participants at the forefront of development and influence acceptance in the circular economy.

Costs of Non-Involvement?

Although variable and obscure, the costs of opting out of a plastic survey is risky and can be detrimental in its ever-changing landscape. According to The Minderoo Foundation, conservative, near-term (2022-2030) estimates of corporate plastic liability (US only) land at around $20 billion. This liability estimates ranges from bodily injury, property damage, and loss of shareholder value. And it’s not limited to the cost of liability from “misleading consumer statements” and greenwashing, expected to be penalized with “significant fines and sanctions.” [1]

Beyond liability, operational costs are considerable as well. A study by Pew Trust foresees companies operating at business-as-usual in the 2040s accruing $100 billion in virgin plastic taxes and/or responsible disposal fees with extended producer responsibilities (EPR) [2].


Comparatively, companies that chose to act today towards reducing their plastic impact and building a solid baseline would incur a fraction (~0.5%) of the costs of greenwashing litigation or an EPR non-compliance fee. Familiarizing leadership with this topic’s go-to advisory policymakers, insurers, investors, and corporate leadership would be wise to add to your to-do list.

The intangible costs are also notable, as seen in Part I of this series. Refusing to collect sustainability data on your products’ life cycle and overall footprint excludes vital product information from your operation—closing doors on opportunities to expand consumer messaging, innovate product design, diversify market offerings, and differentiate from the competition. Without knowledge, there is little to prepare for – plastic footprinting is a unique approach to understanding potential supply chain vulnerabilities (i.e., deforestation on ingredient plantations) and exposure to public criticism (political opinion on local vs. international labor).

Is the Market Demanding More Sustainable Products?

Making operational changes can be disruptive, laborious, and expensive. If cash flow is suffering, it’s easier to justify implementing product changes that take away time and energy from sales. Business owners typically want low-risk and high ROI. Fortunately, the data highlighting the impacts of performing an analysis or “pedicure” on your products and/or business is positive. A 5-year study by NYU showed that sustainability marketed products grew more than seven times faster than their conventional counterparts, selling at a 39% higher premium [3]. The sustainability market can be considered recession-proof since this study was collected amidst the COVID-19 global pandemic [4]. With all things considered, sustainability marketed products have continued to grow throughout the worst economic downturn since the Great Depression [5]. This raises the question, is now the right time?


Who’s Holding You Accountable?

Failing to act before an official and legislative change is mandated will no doubt decrease the market effectiveness and opportunity to set yourself apart from competitors before it is streamlined and mandated. There is still time to perform a footprint analysis and implement changes before the United Nations (UN) Plastics Treaty is ratified in June and December 2023 [6].

If your company is one of the 18,000 that has disclosed to CDP (formerly Carbon Disclosure Project) for climate change, water quality, or forests in the past or funded by investors with a vested interest in public disclosure, thinking about your plastic impact may come down to bargaining with your financial support. In 2023, the CDP disclosure questionnaire piloted a new set of plastic-related voluntary questions under the Water Quality survey in a growing global response to plastic pollution disclosure and responsibility. These investors are forcing the hand of their companies, thus opening the floodgates of data needed for policymakers to make viable mandated solutions that drive actualized change [7]. This top-down pressure will only increase as the Plastics Treaty makes headway. In the wake before US-mandated disclosure breaches the horizon, familiarizing your business with the conduct of disclosure is both wise and forward-looking.


What’s Next?

The world is at the precipice of significant change—the role of plastic materials is at a tipping point, shifting in its value and applications. The United Nations Environment Programme approaches plastic circularity with three easy steps: eliminate, innovate, and circulate [8]. The role plastic footprints play in larger mitigation measures and Environmental, Social & Governance (ESG) targets is just one step towards a more circular, efficient, and cost-saving operation, whether applied to events, concerts, products, or company offices or operations. Although new and sometimes misinformed, multiple data sources frame plastic mitigation and circular innovation as a sound investment, both operationally and financially. Now that you have the data to assure leadership to buy into plastic initiatives, congratulate yourself for being a thought leader towards corporate change with visible impact.

Understanding your impact is the first step towards change, and there are multiple options available for companies actively planning to meet their ESG targets.

Our global teams are ready to work with you – let’s connect, begin setting targets, assess and mitigate your plastic footprint.



[1]  The Price of Plastic Pollution: Social Costs and Corporate Liabilities

[2]  Breaking the Plastic Wave: Top Finding fo Preventing Plastic Pollution
[3]  2020 Sustainable Market Share Index (nyu.edu)
[4]  Risk of Global Recession in 2023 Rises Amid Simultaneous Rate Hikes
[5]  The Great Lockdown: Worst Economic Downturn Since the Great Depression
[6]  Plastic Treaty progress puts spotlight on circular economy
[7]  Businesses encouraged to disclose plastics footprint through CDP for the first time
[8]  Plastic Treaty progress puts spotlight on circular economy


About the Author

Leticia Socal is a chemist and seasoned plastic industry professional with over 15 years of experience spanning R&D, intellectual property, market research & strategy. Leticia is a certified TRUE Zero Waste advisor and a Blue Consultant. She holds a Bachelor of Science in Industrial Chemistry, a Master of Science in Materials Engineering, and a Ph.D. in Polymer Science.

Plastic Footprint Part I: Insights from a Case Study

Plastic Footprint Part I: Insights from a Case Study

Plastic Footprint Part I: Insights from a Case Study


by: Leticia Socal | March 22, 2023

 

Plastic Footprint Part 1ClimeCo’s Plastic Project Partner, The Way Project, Cote d’Ivoire

At this point, we all know there is a global crisis of plastic waste. Consumers rank plastic pollution among the top three environmental issues [1] and have started associating plastic and packaging with environmental degradation. Consumers’ expectations of companies to shift to more sustainable practices have grown. Companies started committing to plastic reduction, recyclability, recycled content, and eliminating problematic plastic. There is so much to do, but where do we begin?

Once a company understands how plastics flow in and out of its value chain, it’s easier to work on plastic mitigation strategies. Plastic footprints are a fast-evolving starter to waste mitigation. They help a company achieve its commitments and plastic-focused ESG (Environmental, Social, Governance) targets. A plastic footprint measures the total amount of plastic used, calculating the baseline against which progress can be measured. Despite its straightforwardness, application, and approach may vary depending on goals, purpose, and scope. Is the footprint measuring an entire company’s operations, or only focusing on one product, or could a company want to understand the plastic footprint of a one-off event? Defining the proper scope and determining which areas of plastic usage are included or excluded at the very beginning of the process is extremely important.

Modeled after its precursor, the carbon footprint, the plastic footprint reflects a similar model—measuring, mitigating, and investing [2]. This topic has gained more attention in recent years, followed by a spike in plastic pacts, agreements, bans, and zero-tolerance statements [3]. Global trends reveal that a growing number of countries are responding to customer demand, requiring more “environmental considerations into their products [4].” Perhaps the spike is fueled by fear, opportunity, or hope. Whatever the reason, the inspiration to act, and be successful, requires a baseline from which to set a foundation. Studying a success story here is meant to guide, educate, and inspire your plastic footprint on the first step on your journey to plastic ESG.


Case Study: Plastic Footprint for a Cosmetic Business

ClimeCo examined the process and corresponding results from conducting a plastic footprint for a cosmetic business whose mission is to provide clean products with ingredient transparency and zero or low waste in its operations. Plastic footprint assessments provide the baseline for action, valuable insight for informed decisions, long-term cost savings, and partnership opportunities across the value chain.

Let’s dive deep into the process of making one of its products: a body lotion. The steps of this exercise were: 

  1. Assessing the internal plastic footprint
  2. Designing and defining (where needed) mitigation measures
  3. Enhancing product offering and marketing
  4. Creating opportunities to connect more with customers and/or existing suppliers

Like a carbon footprint assessment, the first step is defining the scope. In this case, ClimeCo looked at the inflow, operational, and outflow of plastic in the company’s value chain.

  • Inflow plastic is the packaging that enters the company’s operations attached to a product and leaves it as waste. (In this case: ingredient packaging)
  • Operational plastic, like industrial plastic, is used and disposed of during a company’s operations (In this case: plastic gloves, stirring tools, and storage containers)
  • Outflow plastic is attached to a product within a company’s operational boundaries and leaves together with the product. (In this case: the primary packaging, outer box, marketing and instructional materials, and decorative add-ons)

Cosmetic Company Footprint Scope Example - ClimeCo
After a detailed survey, we clearly defined the picture of the plastic flowing throughout the company’s operations. An assessment of the type and form of plastic packaging and material usage (single use vs. durable) was done, detailing all important data and highlighting hotspots for action. Local waste management and partnership opportunities were included in the data analysis as well. This data built a roadmap with short, mid, and long-term actions.

With zero investment, the company reduced waste sent to landfill from 62% to 30%. Reducing waste to landfill was achieved with immediate, internal changes, such as proper on-site sorting and disposal, leveraging available waste management, and a local recycling center. Improved employee training and adequate labeling of waste bins were also vital in increasing landfill diversion and reducing recycling stream contamination with non-recyclables. Changes to the product packaging were made, reducing the outflow plastic footprint from 64% diversion to zero, as part of a 100% reusable and recyclable packaging program.

Next, the company took the following external steps to mitigate its footprint further while enhancing its relationships with suppliers and customers: 

  • Initiating upstream partnerships with suppliers to return and reuse shipping containers and packaging, reducing inflow packaging.
  • Offering refill and takeback programs to customers in exchange for discounts and rewards. This is only possible because the product packaging is now durable, washable, and can be sanitized with every use.
  • Evaluating operation-related and product-related certifications such as waste diversion, plastic-free seals, and recyclability.
  • Educating customers by adding information on the takeback program, disposal options, certifications, and the plastic footprint to product marketing.
  • Improving landfill diversion through local haulers and recyclers outreach (new goal is from 30% to less than 10%).
  • Offsetting the unavoidable plastic by investing in collection & recycling activities through verified plastic credits.


Aside from enhancing product messaging, customer engagement, and reportable ESG metrics for stakeholders, the cosmetic company saw a 10% increase in overall sales and positive customer feedback. Moving forward, plans for this company include expanding the plastic footprint exercise to other products, which is an easy task to implement due to the availability of initial footprint data.

With a quantified baseline and a coherent action plan laid out, the most challenging part of creating a successful plastic ESG plan is complete. The benefits of this plan go beyond reducing pollution. You can now create value that was unattainable before.

The next step requires answering questions such as: 

  • How much money are you saving by making plastic-conscious choices?
  • What are the new marketing opportunities available?
  • What is the ROI of changing your operations to be more sustainable?

Part II of this blog will answer these questions. Actions like these will appeal to your senior management, investors, and customers alike. There is a small window available where you can act, stand out from the competition, and be a part of creating the solution. Stay tuned for our next blog, where we outline the data you need to make a case for preventing inaction.



[1]  Shelton Group, Waking the Sleeping Giant: What Middle America knows about plastic waste and how they’re taking action

[2]  ClimateTrade, The evolution of carbon footprint measurement
[3]  Reuters, Big brands call for a global pact to cut plastic production
[4]  The Ellen MacArthur Foundation, The rise of single-use plastic packaging avoiders



About the Author

Leticia Socal is a chemist and seasoned plastic industry professional with over 15 years of experience spanning R&D, intellectual property, market research & strategy. Leticia is a certified TRUE Zero Waste advisor and a Blue Consultant. She holds a Bachelor of Science in Industrial Chemistry, a Master of Science in Materials Engineering, and a Ph.D. in Polymer Science.

“We cannot change what we are not aware of, and once we are aware, we cannot help but change.”  Sheryl Sandberg, Lean In: Women, Work, and the Will to Lead

 

ClimeCo Partners with Enaleia to Establish a Verra Plastic Collection Project in Kenya

ClimeCo Partners with Enaleia to Establish a Verra Plastic Collection Project in Kenya

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, Vice President, Marketing
+1 484.415.7603 or nmarshall@climeco.com  

ClimeCo Partners with Enaleia to Establish a Verra Plastic Collection Project in Kenya

CC & Enaleia PR

Boyertown, Pennsylvania (September 14, 2022) – 
ClimeCo, a leader in the management and development of environmental commodities, has partnered with Enaleia to remove plastic pollution from vital fishing areas. Enaleia is a non-profit that engages coastal communities to collect plastic on land and in the ocean to reduce pollution and improve marine biodiversity conservation. This partnership will support Enaleia’s newest project in Kenya, contributing to the generation of plastic credits through Verra. With additional funding from ClimeCo and the sale of the credits, Enaleia estimates they will collect 1,000-3,000 tonnes of plastic annually in Kenya.

“A plastic credit is an environmental commodity that represents the collection or recycling of one tonne of plastic material, which can be used in companies’ ESG, CSR, and sustainability programs,” says Chris Parker, ClimeCo’s Director of Plastic Program. “Our approach is to create a system solution to the ocean plastic challenge.”

Enaleia, along with other professional entities that are experts in sustainable development, are collaborating with ClimeCo and the Kwale Recycling Center in Kenya to make sure that the plastic will not only be collected but also integrated into the circular economy.

The Kenya project supports over 350 fishers in Kwale County by empowering them to collect abandoned nets, gear, and marine litter. This number will increase to 800 people from the coastal communities in the following months. The waste is then taken to Kwale Recycling Center, a local collection and recycling company that transports and processes it into useful materials and products.

“Through the plastic credit model, we can set up large-scale plastic cleanup projects that can create a real impact on our oceans,” says Lefteris Arapakis, Enaleia’s Co-Founder and Director. “Taking into consideration that around 20% of ocean plastic is lost fishing gear, by empowering the fishing communities at this scale, we can not only clean up significant amounts of plastic but also prevent further ocean plastic pollution.”

This project incentivizes and encourages the fishing community to use more sustainable fishing practices, including the reduction of overfishing by pausing and limiting their fishing activities while collecting plastic. It also provides a supplemental source of income to an area experiencing some of the highest poverty rates in the country.

To learn more about plastic credits and this project, contact us



About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complimenting these programs is a team of professionals skilled in providing sustainability program management solutions and developing and financing of GHG abatement and mitigation systems.


About Enaleia

Enaleia is a non-profit social enterprise tackling two directly related problems for the marine environment: the reduction of fish stocks and plastic sea pollution. Its mission is to make the marine ecosystem sustainable by tackling overfishing and plastic pollution. Enaleia teaches fishing practices that preserve local fish populations and remove the mounds of plastic that pollute the world’s seas, adapting the fishing industry for a green future.

ClimeCo Partners with Aclymate, a Software Solution for Small Businesses Interested in Making Climate Impacts

ClimeCo Partners with Aclymate, a Software Solution for Small Businesses Interested in Making Climate Impacts

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, Vice President, Marketing
+1 484.415.7603 or nmarshall@climeco.com  

ClimeCo Partners with Aclymate, a Software Solution for Small Businesses Interested in Making Climate Impacts

 

Boyertown, Pennsylvania (September 8, 2022) – ClimeCo, a global company that focuses on developing and trading environmental commodities and advising clients on sustainability and emerging environmental markets, announces a partnership with Aclymate.

Aclymate is a web-based application solution for small and medium-sized businesses that desire to address their climate footprint but are otherwise unable to do so in a practical or economical manner. They offer users a robust, intuitive, and friendly way to transform their best climate intentions into climate action so that any business can become a climate leader.

“There are more than 30 million small businesses in the United States alone. Small business owners are passionate about being part of the solution to environmental problems,” says Derek Six, Chief Operating Officer at ClimeCo. “Still, there were not any affordable and effective tools for these business owners to begin their sustainability journey. Aclymate empowers small businesses, and ClimeCo is excited to support this effort.”

Aclymate provides carbon footprint and certification services to smaller companies at a cost-effective price, allowing them to show their customers, employees, and stakeholders that they are taking action in the fight against climate change.

“I have been fortunate to know a great many players in carbon markets, and I can say, unequivocally, that Derek and the ClimeCo team are amongst the best,” says Mike Smith, CEO of Aclymate. “I am very excited about this partnership and how we can bring the power of ClimeCo to the small and medium-sized business space.”

ClimeCo will participate on the Board of Directors and support Aclymate in maintaining a great selection of high-quality offset projects. This collaboration will provide Aclymate’s clients with expanded services, including expert ESG Advisory from ClimeCo. The partnership will also strengthen Aclymate’s carbon accounting and carbon offset offerings to a market segment that is generally underserved.

 


About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complimenting these programs is a team of professionals skilled in providing sustainability program management solutions and developing and financing of GHG abatement and mitigation systems.


For more information or to discuss how ClimeCo can drive value for your organization, contact us at +1 484.415.0501, info@climeco.com, or through our website climeco.com. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.


About Aclymate 

Aclymate empowers small and medium-sized businesses to become Climate Leaders. With no special knowledge required, our customers can determine their emissions footprint in under 10 minutes per month, find ways to reduce their impact, and offset what cannot be eliminated – all leading to our Climate Leader certification. For more information or to sign up for a free consultation, please go to aclymate.com.

The Inflation Reduction Act of 2022: Tipping the Scale Toward Clean Energy

The Inflation Reduction Act of 2022: Tipping the Scale Toward Clean Energy

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, Vice President, Marketing
 484.415.7603 or nmarshall@climeco.com

The Inflation Reduction Act of 2022: Tipping the Scale Toward Clean Energy


by: Erica Lasdon | August 30, 2022


Boyertown, Pennsylvania (August 30, 2022) –
Sweeping legislation signed into law this month by President Biden will allow for unprecedented investments to decarbonize the nation’s economy. The Inflation Reduction Act (IRA) earmarks the bulk of its $490 billion spending on clean energy and climate change mitigation initiatives.

Combined with other recent spending bills, the U.S. government is set to begin a period of transformative investments. The Rocky Mountain Institute, a clean energy think tank, notes that the combined bills will more than triple annual real federal spending compared with recent years, which was already elevated from levels of the 1990s and early 2000s. 



While the IRA is far from perfect, advocates say it provides extraordinary opportunities for the conservation of our nation’s lands and waterways and includes significant resources for restoring wildlife habitats and forests. 

The legislation is expected to reduce U.S. greenhouse gas (GHG) emissions to approximately 40%, compared to 2005-levels, by 2030. Without enactment of the IRA, the U.S. was on course to reduce its GHG emissions to only 26%, compared to 2005-levels, over this period, according to an analysis from the World Economic Forum

For the U.S. to reach its emissions-reduction targets, it’s imperative that we begin to take action across the entire technology adoption curve. This means exploring: 

  • Existing technologies that are ready for market but not deployed. 
  • Solutions that require some further development to be market ready. 
  • Technologies that are only prototypes and need significant development.


Importantly, IRA resources will focus on the most hard-to-abate industrial sectors, such as electric power generation. 

As widely reported, the IRA is projected to drive significant emissions reductions in the electric power sector. To a certain extent, this can lower production emissions in steel, cement, and other carbon-intensive industries. However, practical options to capture carbon from industrial processes and traditional energy production require substantial investment to help meet climate goals. The IRA addresses these challenges by creating incentives through a system of grants, loans, and tax credits, including making certain existing credits larger and more durable. 

Here are a few key IRA provisions for companies and investors to be aware of:

  • Changes to 45Q, the existing tax credit for carbon capture and storage (CCS), make it more profitable and easier to access. Companies will be able to earn $85 for every metric ton of CO2 sequestered, rather than $50/ton previously. (The amount earned is less if the CO2 is buried during oil extraction.) The timeline is more favorable too. Previously, a company had to start building capture equipment by 2026. Now it’s 2033. The IRA also significantly lowers the minimum capture requirement.

  • Methane emissions are an urgent issue for many industries, as this type of emission is far more potent than carbon dioxide and hard to detect. For the oil and gas industry, investments in methane detection and a first-time federal fee on methane emissions will amplify existing initiatives within industry to tackle this problem. The IRA also funds grants, rebates, loans, and other assistance to facilities subject to the methane fee for a variety of measures, including adding or improving equipment and processes that reduce methane emissions.

  • Other long-term tax credits include clean hydrogen fuel development, direct-air-capture deployment, and advanced nuclear projects for heavy industry.

By driving down the cost of clean energy and other climate solutions, this approach may make it easier for companies and local governments to increase their climate ambitions. 

Regardless of your business’s sector, you will feel the impact of the IRA and related legislation. As the landscape shifts, companies and investors should factor an increasing rate of technological and systems change into their future plans. 

Deep decarbonization is complex work that requires a diverse set of policy, legal, technology, and market solutions. Forthcoming investments by the U.S. government seek to put the country on a net-zero pathway. Importantly, investors and corporations have many tools available to assess their pathways to net-zero.  

Since our founding, ClimeCo has been a leading transformation partner to companies, investors, and governments pursuing a low-carbon future.  As a vertically integrated sustainability solutions provider, we have enabled our clients to go beyond business as usual. By developing frontier technology- and nature-based carbon-reduction projects, transacting voluntary and compulsory environmental credits, and advising on climate risk and disclosure, our team is dedicated to implementing decarbonization pathways tailored to our clients’ specific sectors, business models, and balance sheets. 

Please get in touch with us if you want to learn more about our: 

  • Complete range of ESG Advisory solutions that help companies improve readiness and resilience in the ever-changing regulatory environment. 

  • Project Development capabilities around high-quality carbon projects that feature strong engagement with our project partners, local stakeholders, carbon registries, and credit buyers.
  • Environmental Credit offerings from projects we develop and projects we invest in.


About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complimenting these programs is a team of professionals skilled in providing sustainability program management solutions and developing and financing of GHG abatement and mitigation systems.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.