Today’s executives are tasked to unravel the complex entanglement of social, environmental, economic, and tech trends. Consequently, business leaders can be slow to implement sustainability strategies believing the costs outweigh the benefits.
Specifically, managing plastic waste reduction has proven particularly difficult. Our plastic waste generation has continued to set benchmarks of environmental mayhem—the surge of single use packaging has left the environment in a shameful state. Today, plastic manufacturing is expected to exceed the greenhouse gas emission from coal by 2030.
As our atmosphere is reaching a tipping point, decarbonizing has become a priority. Fortunately, consumers are calling for plastic reduction, governments are taking action, and investors are raising their expectations. In addition, global conferences are emerging, such as the upcoming COP26, in hopes of reaching a consensus on climate action. As a result, executives are compelled to act and quickly embed sustainability into their brand’s DNA.
To alleviate concerns and accelerate action, we compiled the most prominent business benefits of how plastic waste reduction strategies can benefit the bottom line.
Align with Stakeholder Expectations
For years, the predominant objective of the CEO was to ensure the utmost value for shareholders, often pushing stakeholders to the wayside.
Changing the narrative, conscious consumerism is on the rise. Nielsen reported, “sustainability-linked consumer products now grow nearly six times faster than other brands.” Similarly, investors favor conscious investments—ESG (environmental, social, and governance) assets are expected to hit $53 trillion by 2025.
Consumers and investors are calling for reformed sustainable business models. This novel business model focuses on the concept of shared value or creating value seen across employees, shareholders, consumers, civil society, and of course, the planet.
Opening the dialog with your stakeholders and aligning your business model with environmental action will make it easier to meet their needs and be more prepared to anticipate future shocks. In addition, aligning with stakeholder expectations will cultivate your competitive advantage and prime your business for the future.
Mitigate Risk
As climate disasters continue to worsen, global supply chains are feeling the heat.
Specifically in the food and beverage sector, the impacts of climate change can impair growing conditions and crop yields, potentially decimating the bottom line. For example, an agribusiness firm, Bunge, “reported a $56 million quarterly loss in its sugar and bioenergy segments due to drought.”
Industry segments like the food and beverage industry are challenged by physical climate risk and face reputational risk associated explicitly with plastics. Unlike carbon emissions, plastic waste can easily be traced back to the source, identifying brands as top polluters.
The effect of plastics on societies, economies, and ecosystems is incredibly tangible. Removing plastic waste directly from the environment can immediately improve the health of the local ecosystems, communities, and economies. Additionally, plastic packaging alternatives can be physically appreciated by your consumer.
Cutting off plastics that are not absolutely essential at the source will help minimize risk, mitigate climate disasters, and improve the livelihoods and economies of millions of people.
Amplify Financial Performance
An up-and-coming accounting framework circulating boardrooms is the triple bottom line. This concept advocates for companies to focus on people and the environment just as much as profit. Thus, resulting in the triple bottom line of people, planet, and profit.
Fortunately, these three parameters are not mutually exclusive. In many cases, what’s good for the environment and society is also good for your bottom line.
Additionally, focusing on environmental impacts often results in competitive advantage as companies realize the cost savings of efficient, sustainable business practices.
Furthermore, ESG scores can be tracked by investors; higher scores correlate to better financial performance. A University of Oxford literature review found that good ESG standards lower the cost of capital, and good sustainability practices positively correlate with better stock price performance.
The world is paying attention. Environmental disclosures are quickly becoming mandatory, and ESG factors are here to stay. Fortunately, the benefits of proper environmental stewardship, specifically through proper plastic management, will extend across your triple bottom line.
A Simple Yet Systematic Solution
It’s clear we need to rethink plastics, and it’s undoubtedly not going to be an easy transition. That is where we come in; Ampliphi offers a first-of-its-kind approach to allow brands to measure, reduce and communicate every aspect of their organization’s plastic footprint.
We know that deciphering the best sustainability strategy is no easy task, especially in the complicated world of plastic waste reduction. So, our platform combines material expert consultations with the seamless automation of a SaaS dashboard to enable brands to map their plastic footprint and design a unique and actionable strategy.
Executives now have a tool to proactively make sustainability a core value to their business strategy. Ready to turn ambition into action? Contact us to get started today.