Plastics and Sustainability - Overview

Plastics and Sustainability:

A Valuation of Environmental Benefits, Costs and Opportunities for Continuous Improvement

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Prepared By Trucost July 2016

Credits

Lead Author: Rick Lord Project Director: Libby Bernick Trucost Project Contributors: Grace Kao, Siddartha Joshi, Gautham P, Caroline Bartlett, Steven Bullock, Beth Burks, Christopher Baldock and Sarah Aird. Editor: James Richens (Trucost) Designer: Rebecca Edwards (Trucost) Methodology Reviewers: Keith Christman (American Chemistry Council), Mike Levy (American Chemistry Council), Harald Pilz (Denkstatt), Emily Tipaldo (American Chemistry Council), Beverley Sauer (Franklin Associates), Patricia Vangheluwe (Plastics Europe).

About Trucost

Trucost helps companies and investors to achieve success by understanding environmental issues in business terms. Our data-driven insights enable organizations to manage risks and identify opportunities for growth. We are the world's leading experts in quantifying and valuing the environmental impacts of operations, supply chains, products and financial assets. By putting a monetary value on pollution and resource use, we integrate natural capital into business and investment decisions. With offices in Europe, the US and Asia, Trucost works with businesses worldwide to increase revenues, improve communications, meet marketplace expectations and comply with regulatory requirements.

Contact

Libby Bernick Senior Vice President, North America, Trucost Plc E: Libby.Bernick@ E: info@ T: +1 800 402 8774

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Acknowledgments

This work was conducted for The American Chemistry Council (ACC) under the direction of Emily Tipaldo (ACC). We gratefully acknowledge the ACC's assistance in the development of this report. Trucost gratefully acknowledges contributions to this project by external reviewers of the study methodology; Harald Pilz of Denkstatt GmbH and Beverly Sauer of Franklin Associates. Revisions made in response to feedback received from the reviewers improved the quality or this report. The work was performed by Trucost as an independent contractor. The findings and conclusions are strictly those of Trucost. Trucost makes no statements nor supports any conclusions other than those presented in this report.

Legal Statement

Whilst every care has been taken by Trucost in compiling this report, Trucost accepts no liability whatsoever for any loss (including without limitation direct or indirect loss and any loss of profit, data, or economic loss) occasioned to any person nor for any damage, cost, claim or expense arising from any reliance on this report or any of its content (save only to the extent that the same may not be in law excluded). The information in this report does not constitute or form part of any offer, invitation to sell, offer to subscribe for or to purchase any shares or other securities and must not be relied upon in connection with any contract relating to any such matter.

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Contents

Executive Summary

6

Introduction

11

High Level Methodology

16

Step 1: Consumer Goods Sector Selection

16

Step 2: Quantifying Plastic Demand in Each Consumer Goods Sector

16

Step 3: Modelling Plastic Substitution with alternatives

17

Step 4: Scope and Boundary Selection

18

Step 5: Impact Quantification

19

Step 6: Valuing the Social Cost of Environmental Impacts

20

Step 7: Sensitivity Analysis

20

Limitations

20

Results

22

Part A: The Environmental Cost of Plastics and Alternatives in the consumer goods sector

22

Plastic vs Alternatives: Global environmental costs

22

Impacts on the Ocean

25

Which Sectors have the Greatest Environmental Costs?

28

What are the Most Important Environmental Costs?

32

Where are the Environmental Costs Concentrated in the Value Chain?

33

Which Regions have the Greatest Environmental Costs?

34

What are the Potential Benefits of Plastics in the Use-Phase?

36

Conclusions

40

Part B: The Environmental Benefits of More Sustainable Plastic Use

41

Innovations in Efficient Packaging Design

41

Reducing the Flow of Plastics into the Oceans

42

Opportunities to Green the Plastics Manufacturing Sector

43

The Environmental Return on Investment in Material and Energy Recovery

43

Other Interventions to Improve the Sustainability of Plastic Use

44

Conclusions

45

Key Recommendations on the Pathway to More Sustainable Plastic Use

46

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Technical Appendix

48

Appendix 1. Methodology and Key Sources

48

Step 1: Sector Selection and Mapping

49

Step 2: Quantification of Plastic Demand

51

Step 3: Modeling the Substitution of Plastic with Alternative Materials

52

Step 4: Scope and Boundary Selection

55

Step 5: Impact Quantification

57

Step 6: Valuation of the Social Cost of Environmental Impacts

61

Step 7: Sensitivity Analysis

63

Appendix 2. Trucost Natural Capital Valuation Methodologies

64

Air, Land and Water Pollutants

64

Greenhouse Gases

66

Water Consumption

68

Leaching of Plastic Additives

70

Disamenity

71

External Waste Management Costs

72

Impacts of Marine Debris on the Oceans

72

Appendix 3. Improving Estimates of the Environmental Cost of Plastic

78

Glossary

79

References

80

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