You are on page 1of 38

The business case for

reducing
ocean
waste
2 | The Business Case for Reducing Ocean Waste
2
Contents

Foreword 04

Executive summary 07

1


Introduction
From the plastic age to the ocean waste age…
Plastic marine debris: an issue for business
08

09
10
Why this report? 12
Focus of the report 13

2


Business drivers
Four main business drivers
Mapping to the value chain
14

15
19
Case studies: best practices illustrating some of the key business drivers 22

3


Business co-benefits
Economic benefits
Environmental benefits
26

27
27
Social benefits 28

4

Conclusion
Summary
Next steps
30

31
31

Appendices 32

Definitions 32
Acronyms 32
Gaps and limitations 32

References 33

Acknowledgements 36

The Business Case for Reducing Ocean Waste | 3


Foreword

The issue of ocean plastic is rising on Several leading companies along the Furthermore, business stands to benefit
the global policy agenda, as evidenced plastics value chain have already started from contributing to the solution.
in the UN adoption of Sustainable to invest in land-based solutions to Benefits include reducing the risks
Development Goal (SDG) 14 – part of reduce plastics leakage to the ocean. of losing core business in a context
which calls for action to address marine Solutions range from industry-specific of growing regulatory and consumer
pollution. innovations to multi-stakeholder pressure, enhancing our brands’
partnerships. The challenge remains on reputation by demonstrating leadership
Without significant action, there may
how to scale-up these efforts, alongside in solving the issue and growing our
be more plastic than fish in the ocean
improvements in waste management, to business through the development of
by weight by 20501. Impacts go far
prevent and significantly reduce marine new products or businesses.
beyond images of large marine creatures
pollution.
ingesting and getting entangled in We strongly encourage you to join us
plastic rubbish. Overall, the natural As business leaders, we joined WBCSD’s and start tackling this important issue.
capital cost of marine plastic pollution Roadmap for reducing Ocean Waste It is time to act and seize the massive
for the consumer goods industry alone (ROW) program to galvanize the broader opportunity of capturing the $80-120
is estimated to be at least 4.7 billion per business community to prioritize billion in annual economic value currently
year2. ocean waste prevention. Our aim is to lost to the economy due to not capturing
demonstrate that plastic marine debris single-use plastic packaging material
Approximately 80% of ocean waste –
presents material risks and opportunities after use6.
also called marine debris – comes from
to the entire plastics value chain.
land-based sources3. To effectively We must act now to reverse
address the problem, we must close the This report identifies the business the current trend of marine
tap and prevent valuable plastic waste drivers for companies along the value
from flooding into the ocean in the first chain to address marine debris.
pollution and preserve a
place. thriving ocean ecosystem for
Business leaders – especially those in the future.
There is no one-size-fits-all scenario. plastic, packaging, consumer products
Yet, there is growing consensus that and waste management – must
improvements in waste collection and recognize that plastic marine debris is
management, in concert with a more a material issue for their businesses.
sustainable plastics life cycle, are key Beyond the typical business actors,
parts of the equation4. most of the business community is not
yet involved.
We believe that plastic marine
debris presents significant risks and Bridging this gap and getting more
opportunities for business. The private companies on board is essential to
sector has a key role to play in the enable impact at scale. As business,
solution. It is up to the public sector to we possess the innovation potential
adopt policies that foster innovation and and technical know-how to significantly
stimulate investment in these solutions reduce marine pollution by 20255.
that close the plastics loop.

4 | The Business Case for Reducing Ocean Waste


The Business
The Business Case
Case for
for Reducing
Reducing Ocean Waste | 5
Ocean Waste 5
6 | The Business Case for Reducing Ocean Waste
6
Executive summary
Plastic materials are increasingly used across all sectors of
the economy because they present significant benefits over
alternative materials. Yet plastic market growth has come at
the price of our oceans.
Today, at least 8 million tons of plastics collaboration with the public sector will sustainable production and consumption
leak into the ocean each year7. The natural drive impact at scale. as well as ocean-focused SDG 14 is a sign
capital cost of marine plastic pollution is of this.
estimated to be at least $4.7 billion per Business drivers
The business case is compelling. Top
year in the consumer goods industry There are numerous arguments for companies already understand this and
alone8. companies to engage in preventing ocean are engaged. This is the opportunity to
Approximately 80% of marine debris waste. Based on company insights along take your place among the leaders and
– including plastics – comes from land- the entire plastics value chain, four main get involved in the journey towards a
based sources9. Business has a key role to business drivers for acting on plastic plastic-free ocean.
play in addressing this global issue. marine debris surfaced (see Figure 1).

Many leading companies have developed The four drivers, and their respective risks Figure 1:
solutions to reduce marine littering. These and opportunities, should be considered Summary of the main business drivers
range from industry-specific innovations a menu of business cases that a company for companies to reduce ocean waste
to multi-stakeholder partnerships. While or individual can reference or choose
many solutions already exist, they are from. Deciding which drivers are material Maintain core business
mainly developed by a small number to your company will depend on your
of companies. Most of the business sector and position in the value chain. • Regulatory risk
community is not yet involved. For each of the four drivers, the report • Consumer misperception of plastics
details concrete business risks and • Financial risk
To bridge this gap and to get more
companies on board, we developed the opportunities. It also showcases
following Business Case for Action. perspectives and best practices from Enhance brand and reputation
leading companies who are already
prioritizing marine debris in their corporate • Corporate responsibilty
Three key takeaways:
agendas through a series of case studies. • Mission & values
1. Business can and should play a key • Reputational risk
role in addressing marine debris by Business benefits • Customer loyalty
having more companies involved to
Solutions to reducing ocean waste can • License to operate
scale-up emerging solutions. The
generate additional environmental, • Stakeholders’ involvement
time for action is now.
social and economic benefits, creating
2. There are four business drivers shared value beyond company walls.
Secure competitive advantage
which define the material impact For instance, job creation, inclusion of
of marine debris on any given the informal waste management sector, • New business
company: maintaining core business, and better environmental conditions will • New products
enhancing brand and reputation, contribute to better living conditions in • Greater talent
securing competitive advantage and cities and communities where companies
• Differentiation
improving business operations. operate. This is likely to enhance local
stakeholders’ trust in business, and
3. There is a proven social impact
improve community engagement. Improve business operations
which businesses can drive with
the engagement in reducing marine
Call to action • Costs of alternative packaging
debris. options
Ultimately, this report is a call to action
Our goal is to encourage business for the entire private sector. The issue • Loss of material procurement options
leaders, especially those in plastics, of ocean plastic pollution is deeply • Secondary material supply
packaging, consumer products and embedded in climate change mitigation, • CO2 mitigation
waste management companies, to circular economy, water, waste
prioritize ocean waste prevention in management and is rising on the global
their respective corporate agendas. policy agenda. Adoption of Sustainable
Broader business engagement and Development Goals (SDG) 12 on

The Business Case for Reducing Ocean Waste | 7


1. Introduction

8 | The Business Case for Reducing Ocean Waste


8
From the plastic age to the of plastics leak into the ocean each Approximately 80% of marine debris
ocean waste age10… year13. This is equivalent to dumping the
contents of one garbage truck into the
– including plastics – comes from
land-based sources23. Poor solid waste
The past 65 years have seen plastics ocean every minute14. management is considered one of the
production increase from 1.5 to 300 major reasons24. Other land-based
Plastic makes up 60 to 90% of the litter
million tons11. Plastic materials are sources include the intentional and
collected at sea or on the coastline15. This
increasingly used across all sectors of unintentional release of solid materials
is because polymers degrade slowly in
the economy, including in packaging, into the environment. Such releases
the marine environment (from months to
electronics, textiles, road vehicles, often originate from sectors that
hundreds of years), and accumulate over
building envelopes, construction, hygiene operate outdoors like the extractive,
time. If no significant action is taken, one
and healthcare. construction, logistics/distribution and
recent estimate suggests that there may
tourism industries25. As they collectively
be more plastic than fish in the ocean by
determine the plastic packaging
2050, by weight16.
format and material design, the plastic
Ecological impacts go far beyond manufacturing, conversion, brand owners
widespread images of large marine and retailers all share some responsibility.
creatures ingesting and getting
Aside from these direct on-land sources
entangled in plastic rubbish17 - they
of leakage, the marine debris issue
include smothering, sea floor damage,
should also be framed within the wider
coastal habitat degradation and transport
context of wasteful linear uses of
of invasive species18.
resources. The ultimate causes of waste
Marine debris also has social and accumulation in the natural environment
economic consequences. There is are often associated with the linear “take-
growing human health concern regarding make-dispose” lifecycle of plastics26.
the potential effects of plastic particles
This is mainly due to plastics’ Overall, estimates indicate that over half
that accumulate along the seafood
performance advantages over alternative of land-based plastic-waste leakage
chain19. In addition, plastic debris found
materials - which include convenience originates in five countries: China,
in rivers and coastal waters are potential
for consumers and design freedom. Indonesia, Vietnam, Thailand, and the
vectors for bacteria and diseases20.
These performance advantages also Philippines27. Sea-based sources of
bring tangible economic, environmental In the consumer goods industry alone, marine litter include fisheries, commercial
and social benefits, including improved the natural capital cost of marine plastic shipping, maritime-based tourism and
food preservation, food waste reduction, pollution is estimated to be at least $4.7 other offshore industries such as oil and
better crop production, higher energy billion per year21. This estimate includes gas28.
efficiency, reduced CO2 emissions, lower revenue loss to fisheries, aquaculture and
water demand as well as enhanced safety marine tourism industries, plus the cost The scale of the issue is
and hygiene12. of cleaning up plastic litter on beaches, daunting. What can be
Despite these various benefits, the
as well as the valuation of physical and done to help and reverse
plastic market growth has negative
chemical impacts from plastic marine the current trend? What is
debris22. business’ role in this?
effects. Today, at least 8 million tons

The Business Case for Reducing Ocean Waste | 9


1. Introduction continued

Plastic marine debris: an in infrastructure, design, collection What are the main drivers
issue for business and processing systems can
facilitate decreased leakage into the
that inspire leading
Solutions exist and have been clearly environment. The recently published companies along the
outlined in several recent studies29: New Plastics Economy – Catalyzing plastics value chain to
• In the short and medium-
Action report outlines a set of priority consider this sustainability
term: In Stemming the Tide, The
actions that would underpin such a issue in the first place?
systemic transition towards a more
Ocean Conservancy estimates Many businesses are either responsible
sustainable plastics life cycle31.
that accelerated development for or impacted by plastics marine litter.
of collection infrastructure and Business has a key role to play. Figure 2 summarizes the complex links
commercially viable waste treatment Many leading companies have made between various industrial sectors and
options could reduce plastic waste investments in solutions to reduce the sources/impacts of marine litter.
leakage by about 45% globally. marine littering, especially plastics. Such
These developments would directly solutions range from industry-specific Adoption of the ocean-dedicated SDG
contribute to achieving SDG14’s innovations – like the design of new 1433 and endorsement of the “Because
first target: By 2025, prevent and products and the development of new the Ocean” Declaration at Conference
significantly reduce marine pollution product design tools that consider of the Parties 21 are signs that ocean
of all kinds, in particular from land- product end-of-life – all the way to management is garnering increased
based activities, including marine multi-stakeholder partnerships32. In such attention at the international policy level.
debris and nutrient pollution30. collaborative efforts, companies across Further, the resolution adopted by the
the value chain partner with public and United Nations Environment Assembly
• In the long-term: Further innovation (UNEA) in 2016 on marine plastic litter
non-governmental organizations to
across the plastics value chain is and micro-plastics34 sends another
improve regional waste collection and
required to potentially eliminate strong signal. This global trend should
processing systems.
plastic waste leakage from the five be reinforced across international policy,
aforementioned southeast Asian as marine debris is at the crossroads of
countries by 2035. Encouraging other key sustainability agendas like the
broader use of circular economy recent climate negotiations35 or the New
principles and making improvements Urban Agenda36.

Figure 2:
Links between industrial sectors and ocean waste. Note: although plastic bans have direct implications on industry, they
are included as “indirect impacts” as legislation is a potential consequence of the issue itself.
Source: Based on data from UNEP and GRID-Arendal, 2016.

LAND
USERS:
Brand owners (incl. Food Waste mgt industry Producers & converters
& Bev)
Retailers Raw material extractors
Construction

Agriculture

COAST Coastal Tourism

SEA

Maritime transport Fisheries & Aquaculture

Direct source (direct plastic release to the environment) Direct impact (direct costs incurred)

Indirect source (plastic footprint high but almost no direct release Indirect impact (foreseeable damages not
to the environment) directly quantifiable in natural capital accounting)

10 | The Business Case for Reducing Ocean Waste


Analysis: It is interesting to note that
sectors directly impacted by or a direct
source of marine debris – maritime
transport, fisheries and aquaculture,
and coastal tourism – are not the most
actively engaged in solving the issue.
This may be since they ‘only’ contribute
to approximately 20% of the pollution (as
sea-based sources, see above). Plastic
producers, converters, brand owners
and waste management companies
that have direct and/or indirect links
are the most represented in marine
debris international working groups.
The present report tends to bring light
to the business reasons behind this
involvement.

Ocean plastics in a nutshell

Scale: Today, it is estimated


that at least 8 million tons of
plastics leak into the ocean each
year, equivalent to dumping the
contents of one garbage truck
into the ocean every minute.

Impacts: Overall, the natural


capital cost of marine plastic
pollution is estimated to be at
least 4.7 billion per year, in the
consumer goods industry alone.

Sources: Approximately 80% of


marine debris comes from land-
based sources. Poor solid waste
management is considered one
of the major sources.

Global policy: The ocean-plastic


challenge continues to rise on the
global sustainability agenda, with
adoption of the ocean-dedicated
SDG 14 and of the UNEA Marine
Plastics Resolutions.

The Business Case for Reducing Ocean Waste | 11


1. Introduction continued

Why this report? Additional economic, environmental three-year action plan whereby WBCSD
and social benefits are generated by and its member companies implement
Despite the clear roadmap for global these solutions (co-benefits), creating the following steps:
action and the quality of the current shared value beyond the company walls.
solutions deployed, we are far from • Define a set of solutions that
Moreover, these co-benefits can be
reaching the scale required. One of the business can implement – both
used as common ground for establishing
barriers to scaling action is the unclear individually and collectively – to reach
new Public-Private Partnerships (PPP).
business case for companies to invest in impact at scale.
For instance, public authorities may
preventing plastic marine debris. Beyond be interested in social co-benefits • Identify potential barriers to
the usual suspects, most of the business such as job creation and public health implementing this Business Action
community is not yet involved. enhancement37. Plan.
To bridge this gap and get more Solutions to reverse the current trend • Develop a demonstration
companies on board, we developed exist, and businesses possess the project in key city to illustrate that
the following Business Case for Action. know-how and innovation potential to implementation barriers can be
Our goal is to encourage business drive impact at scale. It is time to act overcome, and that the Action Plan
leaders, especially those in plastics, and seize the massive opportunity of brings tangible results.
packaging, consumer products and capturing the $80-120 billion in annual
waste management companies, to • Collaborate with key stakeholders
economic value lost due to inadequate
prioritize ocean waste prevention in of the project city – local government,
design and after-use management
their respective corporate agendas. business partners, NGOs, social and
of single-use plastic packaging
waste management organizations.
This report outlines the primary business material.38
drivers leading different companies • Measure progress against key
This study is also the first step in the
along the plastics value chain to make performance indicators, and reflect
Roadmap for reducing Ocean Waste
investments in marine debris on-land upon the project impacts.
(ROW) WBCSD Business Solution.
prevention. It is designed as a tool for • Apply lessons learned in other
business leaders to make the case ROW seeks to galvanize the business
geographical locations. Broader
within their companies and value community to prioritize ocean protection
replication will be possible once a
chains. by demonstrating that on-land marine
few projects will have proven to be
plastics litter prevention makes business
successful.
sense. The Roadmap is designed as a

12 | The Business Case for Reducing Ocean Waste


Focus of the report There are two main actions that may
be taken when it comes to addressing
On-land prevention of macro-plastics plastic marine litter: cleaning up and
leakage into the ocean prevention. The scope of this study is
The report includes seven types of limited to on-land prevention.
plastic resins, classified as PET, PE-HD,
PVC, PE-LD, PP, PS and other. On-land prevention of plastic marine
debris needs to be encompassed in
All seven types of plastics fall under the broader context of integrated waste
one of the following two categories: management. Cleaning the oceans,
thermoplastic or thermoset. although highly important, addresses
Thermoplastic materials soften on the symptom rather than the cause.
heating, and can be molded, while Recent studies show that the quantity
thermosets are cross-linked materials of plastics found in the ocean via direct
that cannot be re-molded on heating39. measurement accounts for less than
Once they reach the ocean, plastic 5% of the amount of plastic entering the
materials degrade into smaller particles ocean41.
due to physical and biological reactions.
A global approach
Once they reach a diameter smaller
than 5 mm, they are classified as Reducing ocean waste requires a
secondary micro-plastics. Macro-plastic global framework for action as well
pieces measure more than 5 mm, as solutions adapted to each local
while primary micro-plastics designate context. Therefore, this report uses
plastic particles smaller than 5mm but an international perspective for the
that have been intentionally made (e.g. business drivers discussed.
micro-beads in cosmetics or synthetic
microfibers used in the clothing
industry)40. Due to differences in the
value chain and potential solutions, this
study excludes primary micro-plastics
from its scope.

The Business Case for Reducing Ocean Waste | 13


2. Business drivers
Based on group discussions and individual interviews
with WBCSD member companies, we identified four main
business drivers for acting on plastic marine debris.

14 | The Business Case for Reducing Ocean Waste


14
Companies may consider engaging in solutions to plastic
marine debris to maintain their core business, enhance
brand and reputation, secure competitive advantage or
improve business options. Plastics producers, converters,
brand owners, retailers and waste management companies
all provided their perspectives.
Four main business drivers counties in the US, accounting for over
20 million people, now have plastic bag
A. Maintain core business in bans or fees44. In 2016, there was a new There is also an opportunity for
a changing environment wave of industry regulations, including: business to engage with public
Globally, public perception of ocean authorities and collaborate to improve
• Indonesia, Morocco, and Colombia
plastics is becoming increasingly plastics management at the end-of-
regulation on using single-use
negative. This trend, coupled with life. This will enable a public-private
plastic bags;
growing regulatory pressure, may dialogue, paving the way for future
affect business’ ability to sell products, • French ban on non-biodegradable legislation that considers the business
posing significant financial risks. plastic cutlery; voice.

• A1 - Regulatory risks • San Francisco, California’s ban on • A2 - Risk of increased consumer


Regulations on plastics and plastic EPS packaging in San Francisco; 45 pressure
packaging are gaining traction. • The United States ban on the use In addition to regulatory pressures, the
In Europe, many countries have of microbeads in personal care plastics value chain faces increased
introduced landfill taxes following products as of 1 July 201746; consumer pressure. This is mainly
the EU Landfill Directive. Today, most due to a shift in the general public’s
OECD countries and many emerging • India’s Plastic Waste Management perception of plastics, driven by
economies have extended producer Rules, which bans plastic carry a growing number of articles and
responsibility (EPR) programs and bags thinner than 50 microns and media campaigns on marine debris.
policies in place.42 This is also the case looks to phase out non-recyclable This could shift the demand towards
in some Australian states and in New multilayered plastics, among plastic-free products. It is therefore
Zealand43. others47. essential for companies to address
Business should anticipate end-of-life plastics’ management.
Additionally, taxes or bans on specific This should help companies gain
plastic products are multiplying regulations like these to avoid future
industry implications. trust from consumers and secure
globally. To date, 132 cities and their core business.

Figure 1:
The four main business drivers, and corresponding sub-drivers, for companies to reduce ocean waste.
Maintain core business Enhance brand & reputation Secure competitive advantage Improve business operations
• Regulatory risk • Corporate responsibilty • New business • Costs of alternative
• Consumer • Mission & values • New products packaging options
misperception of • Reputational risk • Greater talent • Loss of material
plastics procurement options
• Customer loyalty • Differentiation
• Financial risk • Secondary material supply
• License to operate
• CO2 mitigation
• Stakeholders’
involvement

The Business Case for Reducing Ocean Waste | 15


2. Business drivers continued

• A3 – Financial risks corporate values.


Core business risks have direct • B3 – Reputational risks
impacts on the financial sustainability
Ocean waste with clear branding
of a company, as they can reduce
visible on beaches or in the streets is a
investor interest. This has the potential
direct threat to a company’s reputation
to affect stock prices. Additionally,
and image, as it could potentially drive
banks may increase the cost of debt
consumers away. Some companies
because of perceived business risks,
call this phenomenon “brand trash”49
ultimately resulting in higher capital
(cf. figure 3). Brand trash contributes to
costs. Further, Environmental, Social
shifting the general public’s perception
and Governance (ESG) ratings systems
of plastics, a risk to core business (see
that account for environmental costs
The Dow Chemical Company paragraph A2).
of plastic marine debris may punish
is particularly aware of these risks to core companies in those value chains. • B4 – Opportunity to increase
business. Therefore, it committed to
B. Protect and enhance company’s consumer and customer loyalty
leading the industry in eradicating ocean
reputation The topic of marine debris is also an
plastic waste – announcing in September
2016 that it would spend $2.8 million over
opportunity for business to improve
A business that demonstrates consumer and customer loyalty.
the next two years to drive solutions that leadership in preventing ocean waste
address global marine debris and litter. When demonstrating leadership in
can protect its brand and reputation, preventing marine debris, companies
increase customer loyalty, improve may overcome reputational risks and
stakeholder relations and secure its even enhance their positioning as a
license to operate. responsible business. They can also
“The risk of losing business
• B1 – Corporate responsibility to answer their customers’ requirements,
due to an increased which increasingly take plastics end-
care for plastics at end-of-life
misperception of plastics by of-life aspects into account.
The scientific community has made
society is real. This argument substantial progress on understanding • B5 – Opportunity to demonstrate
should be convincing enough the scale, impact and sources of interest in local environmental
for every business leader to marine debris48. Based on these and social health, and secure
take action and engage in this findings, leading companies along the license to operate
global collective challenge,” plastics value chain are working to Solutions to plastic marine littering
solve this global issue. require a global framework for action
Jeff Wooster • B2 – Risks to upholding company’s and solutions adapted to each local
Dow Packaging and Specialty Plastics mission and values context. Implementing these local
Global Sustainability Director solutions can help a company improve
Many leading companies have placed
local employment and quality of life.
sustainability at the core of their
This can contribute to maintaining a
business strategies. Overlooking
company’s license to operate50.
the issue of marine debris may be in
direct contradiction with these core
Figure 2:
‘Brand trash’ illustration. Source: NOAA website

16 | The Business Case for Reducing Ocean Waste


• B6 – Opportunity to demonstrate DuPont developed a solution to ease
leadership and engage with the recycling process of currently hard-
NGOs and other stakeholders to-recycle multi-material multilayer
proactively instead of reactively packaging such as films or pouches.
Solving the issue of marine debris will These ‘compatibilizers’ are additives
require collaboration and knowledge that allow for the different materials in
sharing between governments, packaging to be blended into a durable
businesses, NGOs, think tanks and raw material. This raw material can then
communities. Addressing marine be used to develop products such as
debris is an opportunity for companies school desks or building planks for the
to engage with stakeholders construction of low cost housing, as
proactively instead of reactively, as demonstrated by the pilot project that
DuPont coordinated in South Africa Suez
well as an opportunity to influence the
between October 2016 and March As a major operator in water and waste
debate.
2017. management services in major coastal
C. Drive future business growth and cities around the globe, Suez acknowledges
secure competitive advantage • C3 – Opportunity to recruit and the business development potential
retain top talent there is in positioning itself as a leader in
Limiting plastics leakage into the ocean waste management. As a matter
ocean represents an opportunity Attracting, developing and retaining
of fact, the Group created PLAST’lab®, an
for companies to establish new top talents is key to achieving
innovative laboratory dedicated to the
businesses, develop new products and organizational growth. In fact, 84% characterization and recovery of plastics to
drive business growth. It can also help of the 17,600 students interviewed supply back to industries.
to secure competitive advantage by for a Yale/WBCSD study would
recruiting top talent and differentiating choose to work for a company with “Various strategies are
good environmental practices51.
from competitors.
“Employees are proud to contribute
possible, but exploring
• C1 – Opportunity for business to society, education or any other new business models that
development activity with a social purpose; it’s also address this complex issue
There is clear business development a lever of engagement, attractiveness is necessary because public
potential for companies who engage and retention,” says Cécile Tandeau funding only will certainly not
in marine debris prevention. Various de Marsac, Solvay Group Human be able to meet the challenge
strategies are possible and include Resources General Manager52.
given the urban population
establishing new businesses as well as
exploring new business models that
• C4 – Opportunity to differentiate expected growth by 2050”
from competitors
address this complex issue.
A company can enhance Marc Simon
• C2 – Opportunity to develop new differentiation from competitors by VP Business Development
products and processes making the marine debris issue core Mediterranean at Suez.Global
The potential for innovating and to corporate strategy and by being a Sustainability Director
developing new products and leader in ocean management.
packaging is considerable. Examples
include:
D. Improve business operations DuPont
• New types of plastic materials
(partially or entirely) made from DuPont developed a solution to ease
If demand for plastics were to shift
the recycling process of currently hard-
post-consumer plastic waste, or to alternatives because of increased
to-recycle multi-material multilayer
especially designed to facilitate regulatory and consumer pressure, packaging such as films or pouches. These
recycling companies would face material ‘compatibilizers’ are additives that allow for
• New types of additives – procurement option limits. However, the different materials in packaging to be
‘compatibilizers’ ease the recycling by anticipating this and closing the blended into a durable raw material. This
process of hard-to-recycle plastics loop, companies can seize raw material can then be used to develop
multilayer packaging opportunities to diversify their material products such as school desks or building
supplies and reduce CO2 emissions by planks for the construction of low cost
• New product design tools that housing, as demonstrated by the pilot
using secondary plastics. Below are
consider the product end-of-life project that DuPont coordinated in South
some of the reasons business should
Africa between October 2016 and March
act now.
2017.

The Business Case for Reducing Ocean Waste | 17


2. Business drivers continued

• D1 – Risk of incurring the consequences on organizational • D4 – Opportunity to mitigate CO2


consequences of plastic departments beyond procurement, emissions
alternatives in packaging and could include supply chain and Using plastic waste as a resource –
Plastics reduce the volume and weight logistics. raw material or energy – may be an
of packaging. The average packaging • D3 – Opportunity to supplement opportunity to reduce greenhouse gas
weight for 1 kg of product is estimated raw materials with secondary (GHG) emissions. However, conducting
at 22 grams for plastics against 88 material supply a life-cycle analysis (LCA) is necessary
grams for alternative materials54. to validate this general assumption.
In reducing plastic leakage, integrated
Moving from plastics to alternative waste management will enable Research commissioned by Dell
materials in packaging results in collection of post-consumer plastic demonstrated that the company’s
higher production costs – as more waste, contributing to the supply use of closed-loop plastics has a 44%
resources are needed to produce the of secondary plastics (also called greater environmental benefit when
same packaging function, with fewer post-consumer recycled plastics). The compared to virgin plastic. This net
product units transported per delivery. supply of stable secondary plastics environmental benefit includes lower
Additionally, heavier truckloads require is critical for enabling demand for pollution, improved human health and
increased fuel consumption and CO2 the product. This supply would allow reduced greenhouse gas emissions57.
emissions per distance unit. Thicker plastics producers, converters and
Plastic waste can also be used as an
and heavier packaging options result brand owners to increasingly integrate
alternative source of energy, especially
in higher unit transportations costs for recycled plastics into their packaging
in the cement industry as refuse-
brand owners and retailers. and products.
derived fuels (RDF)58. By replacing
• D2 – Risk of losing material In the context of increasingly traditional fuels, RDFs reduce a
procurement options rare natural resources, virgin company’s carbon footprint.
Plastic packaging regulations and plastics prices will be volatile and
• D5 – Opportunity to reduce costs
bans could mean losing key packaging competition for resources will be
through operational efficiencies
options for brand owners. This inevitable. A long-term vision in
which companies diversify their Shifting to more sustainable materials
could increase the need for new
material supplies is a way to address brings opportunities to improve
suppliers in purchasing alternative
this business risk. operational costs through leaner
material types. In these instances,
processes and production processes
the cost of goods sold and operating
by focusing on the whole supply chain
margins would be directly impacted.
to find eco- and resource efficiency.
Changes to packaging are likely have

Philips Surfdome Shop Ltd Woolworths South Africa


Philips increased its recycled plastic product Surfdome Shop Ltd is an action sports and The retailer Woolworths South Africa
content from 50 tons 2011 to 1440 tons in lifestyle products online global retailer, supplied encourages its packaging suppliers to
2016. This is motivated by a long-term strategy: by around 700 brands. The company started incorporate recycled plastic into their food
a larger market of recycled plastics means pursuing marine debris prevention in 2014. In packaging. This reduces the need for virgin
a lower dependence on oil, which will be a two years, the company moved from having materials and increases the demand for
competitive advantage in a context of fossil little recognition, to being one of the top recycled materials. This in turn creates
fuels resources rarefaction. By using recycled fourteen companies tackling ocean waste . employment opportunities for unskilled
plastics in new products, Philips also aims to The retailer’s sustainability efforts generated people to clean the environment, including our
create an incentive for recyclers to invest in a highly positive impact in terms of public rivers, beaches and coastlines. It is a win-win
high quality recycling processes. This will drive relations as well, and saw 2/3 of its social media situation56.
the recycled plastics market towards more traffic generated from its sustainability strategy
supply, hence more competition, resulting in - a demonstrable competitive advantage.
lower less volatile prices55.

18 | The Business Case for Reducing Ocean Waste


See below for a visual representation illustrating some of these risks and opportunities.

Figure 2: Natural capital valuation: A means


Summary of main business drivers and sub-drivers mapped in terms of risks for business to identify further
and opportunities. risks and opportunities:

Natural capital valuation is a means


Risks to Business Opportunities for Business
for business to identify risks and
opportunities associated with their
CORE BUSINESS CORE BUSINESS impacts and dependencies on
• Regulatory risks • New products & processes natural capital59.

• Consumer perception of plastics • Top talent In the plastics industry, two recent
studies from Trucost60 applied
• Financial risks • Differentiation natural capital valuation techniques
to value the environmental costs
of plastics and alternatives in the
BUSINESS OPERATIONS BUSINESS OPERATIONS
consumer products sector. Both
• Loss of procurement options • Secondary material supply studies consider the downstream
• Consequences of alternative • CO2 mitigation impacts of plastics on the ocean
packaging options by estimating their economic and
environmental impacts.

It is estimated that, on average,


REPUTATION REPUTATION the impact of plastics on marine
• Corporate responsibility • Consumer loyalty ecosystems accounts for 17%
of total plastics lifecycle impacts.
• Reputational risks • License to operate When integrated into companies’
• Missions and values • Stakeholders’ engagement natural capital accounting, such
downstream impacts could
highlight risks and opportunities
for a company.2

Mapping to the value chain • On average, the upstream section Pressure to account for natural
capital risk is increasing. The
of the plastics value chain
The following diagram (figure 2) details (producers and converters) indicates Natural Capital Protocol, developed
the degree to which each of the drivers by the Natural Capital Coalition and
more risks than opportunities as
is material to each value chain player. WBCSD, aims to provide guidance
material issues. for companies on how to measure
This is based on interviews conducted
• Interestingly, companies and value their impacts and
by WBCSD.
downstream (retailers and waste dependencies on natural capital in
Through this table, the following are a consistent manner.
management companies) rank more
clear: opportunities than risks as material
• Most drivers appear to be material issues. Brand owners rank risks and
for each value chain position. opportunities the same.
• Some drivers are material for all • Plastics producers and converters
value chain levels: rank the same top three risks and
opportunities.
o Responsibility to care for plastics
end-of-life
o Risk to upholding company’s
mission
o The opportunity to develop new
businesses and products

The Business Case for Reducing Ocean Waste | 19


2. Business drivers continued

Figure 2:
Mapping of the drivers’ materiality to the value chain. Dark blue refers to a high level of materiality while light blue
represents a low level of materiality. The data is based on 11 interviews conducted by WBCSD in the context of this study.

PRODUCERS CONVERTERS BRAND RETAILERS WASTE


DRIVERS EXAMPLES OWNERS MANAGEMENT

Risk of increased consumer pressure


Regulatory risks
Maintain core Risk of stock price vulnerability from ESG rating systems
business (financial risk)
Risk of banks increasing their interest rates due to
increased risk profile of business (financial risk)
Reputational risks
Corporate responsibility to care for plastics end-of-life
Risk to uphold your company’s mission and values
Protect and Opportunity to increase your consumers’ and
enhance customers’ loyalty
company’s Opportunity to demonstrate care of the local
reputation environmental & social health in areas where a company
operates, and to secure license to operate
Opportunity to demonstrate leadership and engage
with NGOs/other stakeholders proactively instead of
reactively

Drive future Opportunity for business development


business growth Opportunity to develop new products and processes
and secure
competitive Opportunity to recruit and retain top talents
advantage Opportunity to differentiate from competitors
Risk of losing material procurement options
Risk of incurring the consequences of plastic
alternatives in packaging
Improve business Opportunity to supplement raw materials with secondary
operations material supply
Opportunity to mitigate CO2 emissions
Risk of incurring natural capital costs associated with
plastics end of life

>80% score 50-80% score <50% score (> 0)

By selecting the top drivers for each category, we see key messages for each part of the value chain.

Key messages for producers


1. Maintain your core business despite “Dow is committed to finding viable science-based solutions to prevent debris and
increasing regulatory pressure litter from entering the world’s ocean. These efforts are aligned to Dow’s 2025
Sustainability Goals and through innovation and collaboration, Dow is taking a
2. Abide by your company’s mission leading role on the advancement of a circular economy to ensure that a product’s
and values lifecycle – from creation to use to disposal – is fully optimized for the benefit of
3. Seize this business development society. Dow is a leading manufacturer of plastics, which provide many advantages
opportunity and increase your in terms of sustainability and performance, yet the reputation of plastics is facing
market share by creating new increased scrutiny due to the proliferation of trash and litter polluting our ocean.
products This should be an important area of focus for our industry, not only because it is the
right thing to do, but for the business case it represents. We must all come
4. Differentiate yourself from together to work on waste management initiatives that keep plastics waste and
competitors and position yourself other debris from leaking into our ocean.”
as a leader in ocean plastics
Andrew Liveris, Chairman and CEO, The Dow Chemical Company
stewardship

20 | The Business Case for Reducing Ocean Waste


Key messages for converters
1. Maintain your core business “Working to reduce packaging waste is just one illustration of how sustainability goals and
despite increasing consumer business goals can and must align so that Amcor remains a strong, growing company.” 61
pressure Ron Delia, CEO, Amcor
2. Seize this business development
opportunity and increase your
“Being a good corporate citizen is part of ITW’s DNA. Whether supporting local
market share by creating new
communities or being good stewards of the environment, we believe in the need to
products
participate to help achieve the appropriate outcomes. It is just good business.”
3. Differentiate yourself from Steve Henn, President, ITW Specialty Products
competitors and position yourself
as a leader in ocean plastics
stewardship

Key messages for brand-owners


1. Protect and enhance your “Plastic packaging plays a critical role in making our products safe and enjoyable for
company’s brand and reputation our consumers. It is clear that if we want to continue to reap the benefits of this
versatile material, we need to do much more as an industry to help ensure it is
2. Differentiate yourself from managed responsibly and efficiently. We simply cannot continue to allow it to end up
competitors and position yourself as plastic marine debris. Our own commitment to ensure that all of our packaging is
as a leader in ocean plastics reusable, compostable or recyclable by 2025 is one example of the action companies
stewardship can take, and I urge others to make similar commitments so together we can tackle
3. Improve your business operations this important issue.”
Paul Polman, CEO, Unilever

“Continually reducing end of life environmental impact and facilitating recycling for all
our packaging is a key driver in our product and packaging development process.
Preventing the disposal of packaging into the environment, including marine littering is
part of our ambition to eliminate our impact upon the environment.”
Duncan Pollard, AVP, Stakeholders Engagement in Sustainability, Nestlé

Key messages for retailers


1. Place responsibility to care for
plastics end-of-life at the core “The plastic packaging from our (Walmart’s) products
of your business strategy. is often an untapped resource that can be reused in
future products.”
2. Abide by your company’s mission
and values Ashley C. Hall, Senior Manager, Sustainability at
Walmart.
3. Applying circular economy
principles to close the plastic loop
will allow your company to develop
innovative products and secure its
resource supply in the medium ‘The Emotional call – A South-African beach’
term (source: Woolworths Holdings Ltd)

Key messages for waste management companies


1. Seize this great business “In the 1980s, we established Geocycle to help reduce energy costs by utilizing waste
development opportunity and grow as an alternative fuel and raw material for our cement plants. Today, our Geocycle
your business business is recognized around the world as a leader in waste management, offering
sustainable solutions to more than 10,000 customers for a wide range of waste
2. Secure your license to operate by types, including industrial and municipal plastics. In 2015, we managed 14 million tons
demonstrating care of local of waste globally.”
environmental & social health62
We are proud that the expertise and operational scale we have built over more than
30 years can now contribute to addressing the issue of ocean waste.
Geocycle is a great example of a sustainable business, making sense commercially
while providing solutions to a growing and pressing societal problem at both local and
global level.”
Eric Olsen, CEO, LafargeHolcim

The Business Case for Reducing Ocean Waste | 21


2. Business drivers continued

Case studies: best practices illustrating some of the key business drivers
Case Study 1 – Mitsubishi Shinryo Corporation, a business The reduced raw garbage eased the
Chemical Holdings division of Mitsubishi Chemical
Holdings Group, focuses on providing
collection and recycling of plastics, glass,
paper and metals in garbage.
Corporation business solutions to ensure a
Next to the composting center, a garbage
resource-efficient and recycling-
Building a community-based solid bank was built for community residents
oriented society, including material
waste management system to deposit recyclable paper, plastics,
recycling of plastics and chemical
glass and metals. In return for recycling,
recycling.
Driver illustrated participants receive payments to their
As a core member of The JICA (Japan bank accounts.
• Opportunity to demonstrate International Cooperation Agency)
respect for local environmental The garbage bank collected 27 tons of
Partnership Program for Promoting
and social health, securing recyclable rubbish in 2015. Of the 27 tons
Efficiency of Waste Management in
license to operate of recycled waste, plastics accounted for
Medan City, Republic of Indonesia,
30%, some of which could have become
Shinryo has been engaged in
ocean debris. At the end of the project in
building a community-based solid
2016, the number of households engaged
waste management system, which
in household composting and garbage
complements a centralized waste
banking increased from 400 to 1,400.
management system by offering
immediate solutions to communities and This project highlights the critical roles of
developing areas. local community and local government,
as well as the importance of a holistic and
The primary goals of the program were
flexible approach to address local needs.
to reduce final waste for landfill and to
It also shows the need for establishing a
increase waste recycling in selected
sustainable business ecosystem of waste
model districts in Medan City.
handling and recycling.
In collaboration with Medan City, local
A local perspective and a holistic
NGOs and Kitakyushu City, Shinryo
approach are essential to curb plastic
provided technical guidance in
waste generated in developing
composting organic waste, building a
economies. This example showcases
community system of recycling, and
how a business solution provider can
raising awareness on waste handling.
successfully collaborate with local
After studies on local waste and government and community to address
dumpsites, a new composting center was local needs while minimizing abandoned
built to handle raw garbage from a local plastic waste.
public market. In parallel, 400 households
initially participated in household
composting to reduce garbage
generation.

22 | The Business Case for Reducing Ocean Waste


Case Study 2 – Nestlé Processing plastic waste can be a As the material becomes more valuable,
challenge. Together with a specialized there’s better incentive to collect it
consulting company, Nestlé has - which could prevent litter and plastic
Extracting value from plastic
identified a number of technologies ending up in the ocean. The oils and gases
packaging waste
focusing on processes that turn obtained in the process are used in the
plastics into liquid fuels and gas factory as fuel to generate steam.
Driver illustrated
(pyrolysis and gasification). They have
As soon as the process has been
• Opportunity to mitigate also reviewed how different plastics
optimized and has proven its robustness,
CO2 emissions and other found in the waste stream influence the
additional stakeholders such as NGOs,
environmental impacts performance, quality and yield of the
municipalities, waste pickers and recovery
fuel produced.
organizations will be involved to support
• Opportunity to demonstrate
Nestlé India has installed a small-scale the necessary infrastructure for collecting
respect for the local
pyrolysis plant, converting plastic to oil in and sorting plastic laminates and
environmental and social health
one of its noodle factories. This is being operating the necessary equipment.
in operating areas and to secure
trial tested for feasibility and robustness.
license to operate In addition, Nestlé UK & Ireland is
The aim is to accept post-consumer
partnering with other companies and
plastic laminates that have been collected
waste partners to explore the options
in the surrounding community.
for collecting flexible laminate packaging
http://www.nestle.com/csv The main sources of marine litter are containing aluminium, so that the plastics
from land-based, mismanaged waste. can be recovered and converted into fuel,
Laminates are difficult to recycle, and and the aluminium recycled. Trials began
converting them to oil and gas is a in 2015.
promising approach to add value to the
material.

Small-scale pyrolysis plant in a Nestlé India plant

The Business Case for Reducing Ocean Waste | 23


2. Business drivers continued

Case Study 3 – Geocycle – the waste treatment and Their solution is to transform waste
LafargeHolcim-Geocycle management entity of LafargeHolcim –
was founded over 30 years ago.
into fuels and raw materials through
pre-processing, thereby avoiding
environmental contamination.
Originally created to reduce energy costs
Co-processing plastics reduces at the Group’s cement plants by using Through expertise and state-of-the-art
the use of primary fuels and alternative fuels derived from waste, it environmental filters, Geocycle is able to
mitigates CO2 emissions developed over time into a full waste manage waste in a safe manner as they
management services organization. transform it into usable products.
Driver illustrated Geocycle offers its customers solutions For example, alternative fuels created are
• Opportunity to mitigate CO2 for a wide range of waste, including co-processed in a cement kiln to produce
emissions industrial and municipal plastics. By clinker – the main ingredient of cement.
managing waste in a sustainable way, Clinker kilns have a minimum temperature
Geocyle directly contributes to reducing of 1450 °C, much higher than traditional
waste leakage into the ocean. incinerators that operate at 800 or 900°C.
At this high temperature, dangerous
Plastic material is quite a common waste
substances are rendered inert.
stream for Geocycle, representing about
2 million tons of its annual volume. In many By extension, their use of these alternative
http://www.lafargeholcim.com/2030-plan countries where Geocycle operates, fuels helps reduce CO2 emissions by
plastic waste ends up in landfills and can replacing primary traditional fuels, such
potentially leak into rivers and oceans. as coal, petcoke or natural gas. At the
current rate of 15% alternative fuel use,
The overall objective of LafargeHolcim
LafargeHolcim is able to reduce its CO2
and Geocycle is to increase the amount
emissions by about 14 million tons a year.
of waste-derived fuels from six to 13
Of this emissions reduction, 4.8 million
million tons in 2020, to 21 million tonnes
tons are due to the use of plastic waste as
in 2030. They estimate that plastic waste
alternative fuel.
will represent one-third of these volumes.
For Geocycle, this means treating an
additional 2 million tons of plastic waste by
2020 and another 3 million tons by 2030.

24 | The Business Case for Reducing Ocean Waste


Case Study 4 – Borealis Borealis, a leading provider of type, typically in the form of stand-up
innovative solutions in the fields pouches, helps safeguard the quality
of polyolefins, base chemicals and and safety of the packed products and,
Enhancing circularity of
fertilizers, is fully committed to the compared to rigid packaging alternatives,
polyolefins as a means to prevent
principles of a circular economy, and it has a lower overall carbon footprint
marine litter
has engaged to become a technology and higher resource efficiency. Yet up
leader in plastics recycling. to now, a significant drawback was its
Driver illustrated hard-to-recyclability due to the multi-layer
In this context, the company recently
material leading and the resulting lower
• Opportunity to develop new acquired the German plastics recyclers
quality of the recyclates. The new Borealis
products and processes mtm plastics and mtm compact,
solution improves recyclability without
technology leaders and one of Europe’s
compromising on product efficiency or
• Opportunity for business largest producers of post-consumer
integrity and, what’s more, increases the
development polyolefin recyclates.
quality of the final recyclate.
Design for recyclability is a prerequisite
Another example is Borealis’ Daploy™
for efficient plastics recycling. Designing
high melt strength (HMS) PP foam material
packaging and products fit for recycling
which is 100%-recyclable and suitable
encourages feeding waste collection
for a wide-range of applications where
schemes and prevents littering.
an improved environmental footprint is
Circular design also makes recycling
sought. In drinking cups, this material has
of all materials easier, as plastic waste
a ground-breaking potential as a possible
streams will be less contaminated with
replacement for expanded polystyrene
unrecyclable components.
and paper/cardboard alternatives.
Over the last years, Borealis has been
In order to achieve transformation from
advancing innovation to improve resource
a linear to a more circular economy,
efficiency, including the launch of a new
cooperation with all players along the
Daplen™ portfolio of polypropylene
“Cooperation with all players compound grades for automotive
value chain and beyond is essential.
Borealis therefore participated in the
along the value chain and beyond applications composed of post-consumer
creation of the Polyolefin Circular
is essential for the systemic recycled (PCR) and virgin content allowing
Economy Platform (PCEP), and recently
transformation of today’s linear for increased sustainability and resource
joined the New Plastics Economy initiative
efficiency without compromising on the
plastic economy into a circular quality and performance of the material.
led by the Ellen MacArthur Foundation
economy.” that brings together a broad group of
Borealis also introduced a step-change stakeholders, including companies,
Dorothea Wiplinger concept in flexible plastic packaging that cities, and philanthropists, policymakers,
Sustainability Manager at Borealis enhances recyclability. This packaging academics, students, NGOs and citizens.

The Business Case for Reducing Ocean Waste | 25


3. Business co-benefits
Addressing marine debris comes
with added economic, social and
environmental benefits for shared value
that goes beyond company walls

26 | The Business Case for Reducing Ocean Waste


26
Economic co-benefits Considering solutions to reduce
ocean waste could help companies
The ocean supports global economic apply some of these models to
growth. The OECD estimates that the their own businesses. Doing so
ocean economy’s output was worth $1.5 could help them get “ahead of rivals
trillion in 2010 and could reach over $3 by innovating for both resource
trillion in 2030 on a ‘business-as-usual’ efficiency and customer value – and
basis63. Reducing marine debris is creating change at the intersection of
essential for preserving these economic a company’s strategy, technology and
benefits over the long-term. operations” .

• Improved ecosystem services


Plastic marine debris is detrimental
to the ocean’s natural ecosystem
services. Among these are coastal
protection, water filtration, carbon
sequestration, recreation and
tourism67. The ocean also provides
one sixth of the animal protein people
eat68. Further, more than 25% of
annual CO2 human-caused emissions
• New business models • Improved value-chain knowledge is absorbed by the ocean. It is the
Needed improvements in waste largest net supplier of oxygen in the
To close the plastic loop, companies
collection and treatment as well world.69
need to explore new partnerships
as more circularity in the plastics across the value chain – especially Reducing marine debris is key for
economy require new business between industries that need material preserving essential ecosystem
models. stream from each other . These services around the world.
According to WBCSD interviewees, new partnerships are likely to help
leading companies acknowledge the companies gain better knowledge of
need to develop innovative business material flows in the market, ensuring
models for addressing the issue of a better control over the value chain
marine litter. These include public and overall.
private funding for basic collection The WBCSD Materials Marketplace
and sorting systems – especially from business solution aims to help
those industries and areas that are facilitate these partnerships.
most affected by marine litter (see
fig. 1). These new PPPs are likely to
strengthen business relationships
with public authorities in key markets,
Environmental benefits
or may help with attracting new Environmental benefits offer additional • Reduced CO2 emissions
capital. reputational, financial and operational
gains for business specifically. They Preventing marine litter contributes
Accenture identified five main to climate change mitigation, waste
also help companies achieve their
business models that underpin the management and the circular
sustainability goals and reporting
transition towards a circular economy: economy. For example:
requirements – while enhancing
Circular supply-chain; recovery and
reputation and securing a healthy • Improved waste management
recycling; product life-extension;
environment essential for future can lead to reducing greenhouse
sharing platforms; product as a
business growth. gas (GHG) emissions across the
service . These business models may
also provide a new perspective that economy by about 15-20%70.
uncovers the economic opportunity
of tackling plastics marine debris.

The Business Case for Reducing Ocean Waste | 27


3. Business co-benifits continued

• A circular economy development • Reduced environmental costs Social benefits


path in Europe could halve carbon
A recent Trucost study estimates Overall, job creation, inclusion of the
dioxide emissions across mobility,
that the annual environmental informal sector and better environmental
food systems and the built
costs of plastic marine debris from conditions will contribute to better living
environment by 203071.
the consumer goods sector –2.5 conditions in cities and communities
• The increased material recycling megatons of plastic – costs the where companies operate73. This will
of plastic waste mandated by world at least $4.7 billion in terms of enhance local stakeholders’ trust in
EU legislation could result in a economic, chemical and biological business, and improve community
6.5% GHG reduction from the EU impact. engagement.
plastics industry by 2020 and an
Addressing marine debris by closing
11.5% reduction by 2025, when
the plastics loop could help recover
considering a constant level of
these losses.
plastic production.72

28 | The Business Case for Reducing Ocean Waste


• Informal sector integration • Enhanced public health,
• Job creation
communities and liveability
Stemming the Tide states that any
Employment in waste and resource
intervention to close the source of Growing concerns about the effects
management in Europe doubled
ocean plastics needs to take the that plastic particles in the seafood
between 2000 and 2010, to more
informal waste sector into account. chain have on human health has
than 2 million jobs74. The potential
inspired a host of research.
for new jobs in the circular economy In many developing countries,
is estimated at 9 to 25 million informal actors successfully Uncollected waste – including
worldwide75. Preventing ocean waste contribute to large-scale plastics plastics – can negatively impact public
will contribute to this growing trend. recycling where formal approaches health. Public health risks include
struggle to do so77. In India, the gastrointestinal and respiratory
From a business standpoint, it
plastics recycling rate is about 4.6 infections, blocked drains that
is expected that employment
million tonnes (60%), of which 4.4 aggravate floods, and vectors of
opportunities will be boosted
tonnes is recycled informally78. infectious disease81.
through increased innovation and
entrepreneurship in this space76. This illustrates that the informal waste Further, recent research showed
management sector can help provide that marine litter can undermine the
innovative solutions and operational psychological benefits that the
gains around challenges in secondary coast ordinarily provides to people.
materials management. The informal These include restorative effects and
sector is key to closing the plastics improved state-of-mind from viewing
loop. Upgrading the conditions of these natural environments82.
workers in the sector is essential, as
Preventing marine debris via
informal workers are often part of
the improvement of solid waste
vulnerable communities facing unsafe
management would improve
and unhealthy working conditions79.
public health, benefiting public
Formalizing the recycling systems in authorities and society.
these economies will help business,
governments, and society achieve the
UN SDGs 1 and 880.

The Business Case for Reducing Ocean Waste | 29


Conclusion

30 | The Business Case for Reducing Ocean Waste


30
Summary Next Steps
The business case for reducing ocean Next steps for the WBCSD’s Roadmap
waste is compelling, and the benefits for reducing Ocean Waste Working
of investing in land-based solutions to Group as well as for the business
prevent plastics marine debris are clear: community include:
• Maintain core business in a
changing environment Building an action plan –What are the
solutions that business can implement
• Protect and enhance reputation both individually and collectively to
reach impact at scale?
• Drive future business growth and
secure competitive advantage Addressing barriers to
• Improve business operations implementation – What are the
financial, policy-related, technical
For each of these, there are concrete and other barriers that inhibit
risks and opportunities for companies, implementation?
as demonstrated by the perspectives
and best practices for prioritizing marine Focusing on implementation –
debris highlighted in this report. A demonstration project will be
developed to show that the action
Some of the risks and opportunities plan brings tangible results when local
appear as more material to one level of implementation barriers are overcome.
the value chain than others – which is
why the key messages for each value Continue replication and scale-up –
chain player are critical. To reach impact at scale, the lessons
learned from the demonstration project
Throughout the report, the business will be applied in other geographical
cases presented aim to convince locations.
business leaders in plastics, packaging,
consumer products and waste Ocean plastic pollution is
management to prioritize ocean waste deeply embedded in climate
prevention in their respective corporate change mitigation, circular
agendas.
economy, water, waste
Added benefits include additional management and is rising
environmental, social and economic on the global policy agenda.
“wins” generated by on-land prevention
of marine litter. Even though they
are not primarily driving companies’
investments in the issue, they add to the The business case is
value of such investments. compelling. Top companies
are already taking action.
This is the opportunity to
take your place among the
leaders and get involved
in the journey towards a
plastic-free ocean.

The Business Case for Reducing Ocean Waste | 31


Appendices
Definitions that companies should focus their encompasses human capital (people
strategy and reporting on the most skills, knowledge and wellbeing), social
• Bio-based plastics (‘bioplastics’) relevant sustainability challenges and capital (societies’ shared values, norms
Bio-based plastics are plastics if they opportunities . The Global Reporting and institutions) and relationship
are either biobased, biodegradable, Initiative (GRI), the International capital (connections and networks) .
or features both properties. Biomass Integrated Reporting Council (IIRC)
used for bioplastics stems from corn,
sugarcane, or cellulose . Conventional
and the Sustainability Accounting Acronyms
Standards Board (SASB) have all
plastics, on the other hand, are developed frameworks to further WBSCD – World Business Council for
synthesized from non-renewable fossil advance the approach towards Sustainable Development
fuels, either petroleum or natural gas. clarifying what is material for reporting ROW – Roadmap for reducing Ocean
purposes . Waste
• Biodegradable plastics
Biodegradation is a chemical process • Micro-plastics GHG – Greenhouse Gas
during which microorganisms available Particles in the size range 1 nm to <5
in the environment convert materials mm were defined as micro-plastics EPR – Extended Producer Responsibility
into natural substances such as water, by GESAMP – joint Group of Experts OECD – Organization for Economic Co-
carbon dioxide and compost (artificial on the Scientific Aspects of Marine operation and Development
additives are not needed). The process Environmental Protection.
of biodegradation depends on the CO2 – Carbon dioxide
surrounding environmental conditions • Natural Capital
(e.g. location or temperature), on the LCA – Lifecycle Analysis
“Natural capital is another term for the
material and on the application . Both stock of renewable and non-renewable PPP – Public-Private Partnerships
conventional and bio-based plastics resources (e.g. plants, animals, air,
can be biodegradable. water, soils, minerals) that combine to Gaps and limitations
yield a flow of benefits to people94.”
• Business co-benefits There are certain gaps and limitations in
Co-benefits are secondary, or ancillary, • Plastics this report.
benefits provided by ocean waste “The term ‘plastic’ is used here to • Robustness – The identification of
prevention solutions above and define to define the class of materials main drivers, co-benefits and the
beyond those sought by a solution (for that consist of synthetic polymers. value chain mapping, are based on
example for example, public health and Polymers are very large molecules that the inputs from 14 major companies
job creation in waste management) . have characteristically long chain-like along the plastics value chain. 10
molecular architecture and therefore expert organizations and individuals
• Business drivers very high average molecular weights95.”
Business drivers are factors also contributed to this study. We are
aware that these numbers are not high
(resources, processes, or conditions) • Primary micro-plastics
required to create the conditions enough to draw statistically consistent
Primary micro-plastics are micro-
necessary for a business to grow or results. This report intended as a first
plastic particles that were originally
succeed . attempt to illustrate the business
manufactured to be a certain size.
case for reducing marine debris and
Primary micro-plastics include
• Informal waste sector convince others to join.
industrial ‘scrubbers’ used to blast
The ILO defines informal waste workers clean surfaces, plastic powders used
as “individuals or small and micro- • Representativeness – The 14
in molding, micro-beads in cosmetic companies are nearly all multinational
enterprises that intervene in waste formulation and plastic nanoparticles
management without being registered enterprises headquartered in Europe
used in a variety of industrial processes or the US (except one in South Africa,
and without being formally charged
and one in Japan). The brand owners
with providing waste management • Secondary materials
services.” represented all belong to the food and
Materials that have been collected,
beverage industry. Views from small
recycled and processed for continued
• Macro-plastics and medium enterprises, companies
or alternative use.
Particles larger than 5 mm are headquartered in Asia, Africa, South
considered “macro-plastics.” • Secondary micro-plastics America or Oceania, and other plastic
“Secondary micro-plastics result from user industries need to be examined
• Marine debris, marine litter, ocean the fragmentation and weathering of as well.
waste larger plastic items. This can happen
“Marine debris is defined as any • Knowledge gaps – This report is
during the use phase of products such
persistent solid material that is based on the latest research findings
as textiles, paint and tires, or once the
manufactured or processed and available to date, to the best of the
items have been released into the
directly or indirectly, intentionally authors’ knowledge. The reader should
environment96”
or unintentionally, disposed of be aware that there are knowledge
or abandoned into the marine • Social Capital gaps in the field of plastics marine
environment93 .” The WBCSD is using “social capital”, to debris. For instance, research on the
refer to the resources and relationships health and safety impacts of ocean
• Materiality provided by people and society. This plastics is currently being conducted.
The materiality principle is the idea

32 | The Business Case for Reducing Ocean Waste


References
1. World Economic Forum, Ellen 12. PlasticsEurope. (2016). Plastics 34. UNEA. (2016). Marine Plastic Litter
MacArthur Foundation and – The Facts 2016 An analysis of and Microplastics Resolution.
McKinsey & Company, The New European plastics production, Retrieved from: http://web.unep.
Plastics Economy — Rethinking the demand and waste data. Brussels.; org/unea/list-resolutions-adopted-
future of plastics (2016, http://www. Trucost 2016 unea-2
ellenmacarthurfoundation.org/
publications). 13. OC 2015 35. More than 25 % of the CO2 emitted
annually by humans into the
2. Trucost. (2016). Plastics and 14. WEF 2016 atmosphere is absorbed by the
Sustainability: A Valuation of 15. UNEP and GRID-Arendal. (2016). ocean, and it is also the largest net
Environmental Benefits, Costs Marine Litter Vital Graphics. Nairobi supplier of oxygen in the world,
and Opportunities for Continuous and Arendal: Joan Fabres, Heidi playing an equally important role as
Improvement. Washington DC: Rick Savelli, Tina Schoolmeester, Ieva the forests. Plastics marine debris
Lord. Rucevska, Elaine Baker (editors) contribute to the degradation of
marine ecosystems, potentially
3. GESAMP. (2015). Sources, fate 16. WEF 2015 threatening the ability of the
and effects of microplastics in principle ‘lung’ of the planet to limit
the marine environment: a global 17. IUCN. (2014). Plastic Debris in the
Ocean – The characterization global warming.
assessment. London: Kershaw, P.
J., ed. GESAMP (2015). “Sources, of Marine Plastics and their 36. Habitat III’s New Urban Agenda’s
fate and effects of microplastics in Environmental Impacts, Situation commitment number 74 state
the marine environment: a global Analysis Report. Gland: Florian that: ‘We further commit to
assessment” (Kershaw, P. J., ed.). Thevenon, Chris Carroll and João reduce marine pollution through
(IMO/FAO/UNESCO-IOC/UNIDO/ Sousa (editors). improved waste and waste water
WMO/IAEA/UN/UNEP/UNDP Joint 18. UNEP,GRID 2016 management in coastal areas.’
Group of Experts on the Scientific
Aspects of Marine Environmental 19. UNEP 2016 37. See WBCSD (2015), especially
Protection). Rep. Stud. GESAMP No. page 10 for further details on the
20. UNEP 2016 connection between social capital
90, 96 p.
21. Trucost 2016 – the resources and relationships
4. Ocean Conservancy & McKinsey provided by people and society
Center for Business and 22. Trucost 2016 – and business value creation.
Environment. (2015). Stemming the Source: WBCSD. (2015). Social
23. GESAMP 2015
Tide: Land-based strategies for a Capital in Decision-Making: How
plastic-free ocean. Washington DC. 24. OC 2015 social information drives value
creation. Geneva.
5. United Nations. (2016). Goal 14: 25. UNEP 2016
Conserve and sustainably use the 38. WEF 2016
oceans, seas and marine resources. 26. STAP. (2011). Marine Debris as a
Retrieved from: http://www.un.org/ Global Environmental Problem: 39. PlasticsEurope, WBCSD training on
sustainabledevelopment/oceans/ Introducing a solutions-based Plastics, Sept. 12, 2016
framework focused on plastic.
6. WEF 2016 40. Source: IUCN. (2014). Plastic Debris
Washington, DC.
in the Ocean – The characterization
7. OC 2015 27. OC 2015 of Marine Plastics and their
Environmental Impacts, Situation
8. Trucost 2016 28. UNEP 2016 Analysis Report. Gland: Florian
9. GESAMP 2015 29. STAP 2011, OC 2015 Thevenon, Chris Carroll and João
Sousa (editors).
10. Richard C. Thompson., Shanna 30. UNEP 2016
H. Swan., Charles J. Moore., & 41. UNEP, GRID 2016
Frederick S. vom Saal. (2009). 31. World Economic Forum and
Ellen MacArthur Foundation, 42. OECD. (2014). The State of Play on
Our plastic age. Philosophical Extended Producer Responsibility
Transactions of the Royal Society The New Plastics Economy –
Catalysing action (2017, http://www. (EPR): Opportunities and
B, 364, 1973-1976. doi:10.1098/ Challenges. Proceedings from:
rstb.2009.0054 ellenmacarthurfoundation.org/
publications) Global Forum on Environment:
11. PlasticsEurope. (2012). Plastics Promoting Sustainable Materials
– The Facts 2012 An analysis of 32. A clear sign of business Management through Extended
European plastics production, involvement is the Joint Producer Responsibility (EPR).
demand and waste data for 2011. Declaration, whereby 69 plastics Tokyo.
Brussels.; PlasticsEurope. (2015). organizations and allied industry
associations in 35 countries 43. Newman, S. et al. (2015). The
Plastics – The Facts 2015 An Economics of Marine Litter. In
analysis of European plastics voluntarily pledged to take action
and make measurable progress M. Bergmann et al. (Eds.), Marine
production, demand and waste Anthropogenic Litter (pp. 367-394).
data. Brussels. against marine debris pollution.
London: Springer.
33. UNEP 2016

The Business Case for Reducing Ocean Waste | 33


44. Newman 2015 Sustainability: A Valuation of 69. Deloitte. (2015). Increased EU
Environmental Benefits, Costs Plastics Recycling Targets:
45. WEF 2016 and Opportunities for Continuous Environmental, Economic, and
46. Tragger, R. (2016, January 6). US Improvement. Washington DC: Rick Social Impact Assessment – Final
bans microbeads from personal Lord. report.
care products. ChemestryWorld. 58. Ron Delia. (2016). Message from 70. O. Horn, Insights from ROW’s Kick-
Retrieved from https://www. the CEO. Retrieved from: https:// Off workshop, September 13, 2016
chemistryworld.com/news/us- www.amcor.com/sustainability/
bans-microbeads-from-personal- message-from-the-ceo/ 71. ISWA, UNEP 2015
care-products/9309.article
59. Although the corresponding cell is 72. ISWA, UNEP 2015
47. Aggarwal, M. (2016, March 19). not highlighted in dark blue in Table
Government notifies new plastic 73. One needs to be mindful of
1, we have chosen to highlight this which types of jobs are being
waste management rules. driver as one of the key messages
LiveMint. Retrieved from: http:// created. Questions such as career
for waste management companies. progression for low-skills workers
www.livemint.com/Politics/ The main reason is that the score
PFLvTbLqegiRUthJwrFh9O/ need to be addressed (Stowell,
we obtained in this cell is closer to 2016). Sources: Ellen MacArthur
Government-notifies-new-plastic-
waste-management-rules.html
the dark-blue category than to the Foundation. (2015). Towards
medium-blue one. This is therefore a circular economy: Business
48. Ryan, P. G. (2015). A Brief History the second most-important driver rationale for an accelerated
of Marine Litter Research. In M. for waste management companies transition. A. Stowell, WBCSD
Bergmann et al. (Eds.), Marine according to our findings. interview with Lancaster University,
Anthropogenic Litter (1-25). 60. The ocean economy’s output is July 15, 2016
Springer International Publishing. measured in terms of the ocean- 74. WBCSD 2016 Informal approaches
49. Virginie Helias, WBCSD Mapping based industries’ contribution to towards a circular economy.
interviews with P&G, March 2016 economic output and employment. Geneva.
Source: OECD. (2016). The trillion
50. WBCSD 2015 dollar ocean. OECD Insights: Jolly, 75. WBCSD 2016, Informal Approaches
51. Yale, Global Network for Advanced C. and Stevens, B. 76. ISWA, UNEP 2015
Management, and WBCSD. (2015). 61. Accenture. (2014). Strategy, Circular
Rising Leaders on Environmental 77. WBCSD 2016, Informal Approaches
Advantage – Innovative Business
Sustainability and Climate Change. Models and Technologies to Create 78. ISWA, UNEP 2015
New Haven: Laura Franceschini. Value in a World without Limits 79. Wyles et al. (2016). Factors That
52. WBCSD. (2016). Skills for Social to Growth. Accenture Circular Can Undermine the Psychological
Innovation – The implications of Economy: Peter Lacy et al. Benefits of Coastal Environments:
integrating social impact and driving 62. Accenture 2014 Exploring the Effect of Tidal State,
social innovation on how talent is Presence, and Type of Litter.
sourced and skills are developed. 63. A. Stowell, WBCSD interview with Environment and Behavior, 1-32.
Geneva. Lancaster University, July 15, 2016 DOI: 10.1177/0013916515592177
53. PlasticsEurope. (2016). The 64. Mapping Ocean Wealth. (2016). 80. European Bioplastics. (2017). What
unknown life of Plastics. Brussels. Ecosystem Services. Retrieved are bioplastics? Retrieved from:
from: http://oceanwealth.org/ http://www.european-bioplastics.
54. Trucost 2016 ecosystem-services/ org/bioplastics/
55. “Selected waste and by-products 65. Marine Conservation (2016). Why
with recoverable calorific value can 81. European Bioplastics 2017
we protect our oceans? Retrieved
be used as fuels in a cement kiln, from: https://marine-conservation. 82. WBCSD. (2015). Business Case for
replacing a portion of conventional org/what-we-do/advocate/why-we- Natural Infrastructure. Geneva.
fossil fuels, like coal, if they meet protect-our-oceans/
strict specifications. Sometimes 83. WBCSD 2015, Business Case for
they can only be used after pre- 66. Ocean & Climate Platform. (2016). Natural Infrastructure
processing to provide ‘tailor-made’ About us – Why an “Ocean and 84. GIZ. (2011). Recovering resources,
fuels for the cement process” Climate” Platform? Retrieved creating opportunities Integrating
(Source: WBCSD) from: http://www.ocean-climate. the informal sector into solid waste
org/?page_id=80 management. Postfach: Ellen
56. Natural Capital Coalition. (2016).
Natural Capital Protocol. 67. ISWA and UNEP. (2015). Global Gunsilius et al.
Waste Management Outlook. 85. NOAA. (2017). What is marine
57. UNEP. (2014). Valuing Plastics: Vienna: David C. Wilson (Ed.)
The Business Case for Measuring, debris? Retrieved from: http://
Managing and Disclosing Plastic 68. Ellen MacArthur Foundation. oceanservice.noaa.gov/facts/
Use in the Consumer Goods (2015). Towards a circular marinedebris.html
Industry. Nairobi: Julie Raynaud economy: Business rationale for an
; Trucost. (2016). Plastics and accelerated transition.

34 | The Business Case for Reducing Ocean Waste


86. Allison-Hope, D., Morgan, G.
(2013, August 20). How to
navigate the maze of materiality
definitions. GreenBiz. Retrieved
from: https://www.greenbiz.com/
blog/2013/08/20/navigating-
materiality
87. WBCSD. (2015). Reporting matters
- Redefining performance and
disclosure. Geneva
88. Natural Capital Coalition 2016
89. GESAMP 2015
90. GESAMP 2015
91. GESAMP 2015
92. WBCSD 2015, Social Capital
93. NOAA. (2017). What is marine
debris? Retrieved from: http://
oceanservice.noaa.gov/facts/
marinedebris.html
94. WBCSD 2016 Natural Capital
Coalition
95. GESAMP. (2015). Sources, fate
and effects of microplastics in
the marine environment: a global
assessment. London: Kershaw, P.
J., ed.
96. GESAMP. (2015). Sources, fate
and effects of microplastics in
the marine environment: a global
assessment. London: Kershaw, P.
J., ed.

The Business Case for Reducing Ocean Waste | 35


Acknowledgements
The WBCSD would like to warmly thank the following people for their contributions to the preparation of this document:
Company representatives
Amcor David Clark
Borealis Dorothea Wiplinger
DuPont Sarah Perreard
ITW Specialty Products Steve Henn
LafargeHolcim (and Geocycle) Amélie Orthlieb and Bernard Mathieu
Mitsubishi Chemical Holdings Corporation Kiyoshi Matsuda
Nestlé Jochen Hertlein
Philips Eelco Smit
Suez Marc Simon
Surfdome Shop Ltd. Adam Hall
The Dow Chemical Company Jeff Wooster
Unilever Gavin Warner and Louis Lindenberg
Walmart Ashley C. Hall
Woolworths South Africa Tom McLaughlin

Partners and expert reviewers


Arizona State University (ASU) Pr. Leah Gerber
Ellen MacArthur Foundation Rob Opsomer and Dr. Michiel De Smet
ICLEI Olga Horn
IUCN Joao Sousa
Lancaster University Dr. Alison Stowell
Ocean Conservancy Eric DesRoberts and Emily Woglom
PlasticsEurope Ralph Schneider and Michel Loubry
Plymouth University Pr. Richard Thomson
World Plastic Council (represented by American Chemistry Council) Keith Christman

36 | The Business Case for Reducing Ocean Waste


Authors: About the World Business Council for
Sustainable Development (WBCSD)
The writing and publication of this
document was jointly managed by Andrea WBCSD is a global, CEO-led organization Together, we are the leading voice of
Brown, Brendan Edgerton and Marie Le of over 200 leading businesses working business for sustainability: united by our
Texier of the World Business Council for together to accelerate the transition to vision of a world where more than nine
Sustainable Development. a sustainable world. We help make our billion people are all living well and within
member companies more successful and the boundaries of our planet, by 2050.
We would like to thank Joppe Cramwinckel sustainable by focusing on the maximum
and Tatiana Fedotova for their valuable www.wbcsd.org
positive impact for shareholders, the
contribution to ROW’s Business Solution. environment and societies. Follow us on Twitter and LinkedIn

Disclaimer Our member companies come from all Credits


business sectors and all major economies, Copyright © WBCSD May 2017
This publication is released in the representing a combined revenue of
name of the WBCSD. Like other more than $8.5 trillion and 19 million
WBCSD publications, it is the result of employees. Our Global Network of almost
a collaborative effort by members of 70 national business councils gives our
the secretariat and senior executives members unparalleled reach across the
from member companies. A wide range globe. WBCSD is uniquely positioned to
of members reviewed drafts, thereby work with member companies along and
ensuring that the document broadly across value chains to deliver impactful
represents the perspective of the WBCSD business solutions to the most challenging
membership. It does not mean, however, sustainability issues.
that every member company agrees with
every word.

The Business Case for Reducing Ocean Waste | 37


World Business Council
for Sustainable Development
Maison de la Paix
Chemin Eugène-Rigot 2B
CP 2075, 1211 Geneva 1
Switzerland
www.wbcsd.org

You might also like