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 Green Adds Plastic Credits to Website

ClimeCo Green Adds Plastic Credits to Website

ClimeCo Green Adds Plastic Credits to Website

ClimeCo Green Logo

ClimeCo Green is now offering plastic credits that are available for purchase on its website. Individuals and households can calculate their plastic footprint based on the country they live in with ClimeCo Green’s newly developed calculator and purchase plastic credits to mitigate their footprint. The purchase of credits will support plastic cleanup projects from around the world.

To calculate your plastic footprint, learn more about plastic credits, and view the projects available for mitigation, click here.




About ClimeCo Green

ClimeCo Green helps individuals and businesses easily calculate and offset their carbon and plastic waste footprint. By purchasing credits, you can support carbon emission and plastic waste reduction projects, which bring co-benefits to our environment and surrounding communities. Co-benefits vary from project to project, but some of the most common include improved air and water quality, erosion control, nutrient buffering, habitat protection, enhanced food supply, or providing local jobs. ClimeCo Green strives to find projects that provide the most co-benefits so that as its customers mitigate their footprint, they can feel confident that their support extends beyond reducing greenhouse gases (GHG) or plastic waste.

For more information, contact ClimeCo Green at green@climeco.com, or through its website ClimeCoGreen.com.

About ClimeCo

ClimeCo is a respected advisor, transaction facilitator, trader, and developer of environmental commodity market products and related services. 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 services, 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.

Responsible Plastic Management Step 1: Plastic Footprinting

Responsible Plastic Management Step 1: Plastic Footprinting

Responsible Plastic Management Step 1: Plastic Footprinting


by: Alyssa Hudson | Plastic Program Intern | October 20, 2021

Source: Green Queen

It is indisputable that plastics have made their way into every aspect of our lives, and they’re here to stay.

While plastics play an important role and offer many benefits, there is growing concern over the waste accumulating in landfills, rivers and oceans, and the stomachs of animals and marine life.

Globally, 380 million tonnes of plastic are produced every year, with some reports indicating that up to 50% of that is for single-use purposes. COVID-19 has exacerbated the issue. Roughly 200 billion plastic-based disposable masks and gloves have been used globally every month during the pandemic; the United Nations (U.N.) projects that most of this COVID-19 personal protective equipment will likely end up in landfills or the ocean.

Source: Plastic Pollution Treaty

Plastics have numerous benefits and continue to gain popularity with businesses. Plastics can reduce logistics costs, protect and preserve food, enhance vehicle safety, and contribute to life-saving medical treatments. With a growing trend of businesses increasing plastic use, the World Economic Forum predicts that plastic production will double in the next 20 years.

As the use and production of plastics increase, businesses seek to understand how they can help solve one of the most significant challenges of our time – plastic waste.


Taking Account of Your Plastic Footprint


Plastic Accounting? Plastic Footprinting? What does it mean, and why do it?

Plastic footprinting is an exercise in which a company quantifies plastic volumes and flows throughout its value chain. Akin to greenhouse gas (GHG) footprinting, plastic footprinting documents plastic material flows and how they are managed throughout the entire supply chain – including design, use, reuse, recycling, and end of life. Similar to GHG emissions, which are typically broken into Scope 1, 2, and 3 emissions (direct emissions, indirect emissions from electricity, and other indirect emissions), plastic accounting requires consideration of plastic within a company’s control and value chain. Unique from GHG accounting, a plastic footprint must split plastic volumes by their ultimate destination: landfill, ocean, recycling, reuse, etc.

Source: Climate Action/Photograph by Greenpeace

Unlike GHG footprinting – guided for most corporations by the World Resource Institute’s GHG Protocol – there is currently a lack of standardized guidance for plastic footprinting. Many are preparing corporate plastic footprints even before a de facto standard is established, while others are working to create the standard. For instance, World Wildlife Fund (WWF) recently developed an innovative tool called ReSource Footprint Tracker. Others are calling on the U.N. to develop a treaty that could provide some of this consistency.

Corporations interested in plastic impacts can help shape the standardization and rigor of this process. ClimeCo is currently helping leading organizations engage with leading NGOs and have a voice in this movement.

A Meaningful Step Forward

Why quantify a company’s plastic footprint? It allows you to set credible targets, strategically improve your company’s impacts, and reap stakeholder and reputation benefits as a result.

Source: Resource Plastic

Once a corporation has quantified its plastic footprint, the next step is to improve its plastic impacts. One way to do this is by empowering product designers and engineers to be innovative thinkers on reducing plastic use in product development and within the overall supply chain. In parallel, as your organization evaluates how you can reduce your operational plastic footprint, ClimeCo can help you finance environmental plastic waste cleanup using plastic credits. Companies can use these credits to mitigate external environmental plastic waste beyond company control and the unavoidable volume portion of their plastic footprint. Funding from credits help to scale the recovery and recycling of environmental plastic waste around the world.

Utilizing reporting frameworks such as the Global Reporting Initiative (GRI): GRI 306: Waste,  SASB: Waste Management, and U.N. Sustainable Development Goals (SDGs), can inform how companies can credibly share their progress.

The same factors that drove climate into corporate reporting are starting to do the same for plastics. Investors and supply chains need comparable ESG metrics to evaluate companies’ performance against market competitors. Customers and employees want company actions on plastics to match their values. Accounting for your plastic footprint can help your company enhance its performance and reputation. For leaders who want to integrate plastic into their corporate strategy, ClimeCo is ready to assist.



About the Author

Alyssa Hudson serves as an intern for the Plastics Program at ClimeCo. She is currently pursuing a master’s degree in Environmental Studies from the University of Pennsylvania with a concentration in sustainability and business. In the future, Alyssa would like to work in corporate sustainability to help businesses forge sustainable futures.