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

Foreword 04

Executive summary 07

Introduction 08 1 From the plastic age to the ocean waste age… 09 Plastic marine debris: an issue for business 10 Why this report? 12 Focus of the report 13

Business drivers 14 2 Four main business drivers 15 Mapping to the value chain 19 Case studies: best practices illustrating some of the key business drivers 22

Business co-benefits 26 3 Economic benefits 27 Environmental benefits 27 Social benefits 28

Conclusion 30 4 Summary 31 Next steps 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.

| The Business Case for Reducing Ocean Waste 4 The Business Case for Reducing Ocean Waste | 5 The Business Case for Reducing 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 mainly developed by a small number to your company will depend on your Maintain core business 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 • Financial risk To bridge this gap and to get more details concrete business risks and companies on board, we developed the opportunities. It also showcases perspectives and best practices from following Business Case for Action. Enhance brand and reputation leading companies who are already • Corporate responsibilty Three key takeaways: prioritizing marine debris in their corporate 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 • Customer loyalty having more companies involved to Business benefits Solutions to reducing ocean waste can • License to operate scale-up emerging solutions. The generate additional environmental, time for action is now. • Stakeholders’ involvement social and economic benefits, creating 2. There are four business drivers shared value beyond company walls. which define the material impact For instance, job creation, inclusion of Secure competitive advantage 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. which businesses can drive with Improve business operations the engagement in reducing marine • Costs of alternative packaging debris. Call to action 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 of plastics leak into the ocean each Approximately 80% of marine debris From the plastic age to the year13. This is equivalent to dumping the – including plastics – comes from 10 ocean waste age … contents of one garbage truck into the 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. revenue loss to fisheries, aquaculture and efficiency, reduced 2CO emissions, lower 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 as well as the valuation of physical and done to help and reverse Despite these various benefits, the chemical impacts from plastic marine plastic market growth has negative the current trend? What is debris22. effects. Today, at least 8 million tons business’ role in this?

The Business Case for Reducing Ocean Waste | 9 1. Introduction continued

in infrastructure, design, collection What are the main drivers Plastic marine debris: an and processing systems can that inspire leading issue for business facilitate decreased leakage into the 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 report outlines a set of priority consider this sustainability Action • In the short and medium- actions that would underpin such a In , The issue in the first place? term: Stemming the Tide systemic transition towards a more Ocean Conservancy estimates sustainable plastics life cycle31. Many businesses are either responsible 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 33 contribute to achieving SDG14’s innovations – like the design of new 14 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 Further innovation • In the long-term: non-governmental organizations to (UNEA) in 2016 on marine plastic litter across the plastics value chain is 34 improve regional waste collection and and micro-plastics sends another required to potentially eliminate processing systems. strong signal. This global trend should 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 Construction Raw material extractors

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)

| The Business Case for Reducing Ocean Waste 10 It is interesting to note that Analysis: 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

Additional economic, environmental three-year action plan whereby WBCSD Why this report? 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. that solutions deployed, we are far from Moreover, these co-benefits can be • Define a set of solutions business can implement – both reaching the scale required. One of the used as common ground for establishing individually and collectively – to reach barriers to scaling action is the unclear new Public-Private Partnerships (PPP). impact at scale. business case for companies to invest in For instance, public authorities may preventing plastic marine debris. Beyond be interested in social co-benefits to • Identify potential barriers 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 in key city to illustrate that project 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 economic value lost due to inadequate • Collaborate with key stakeholders of the project city – local government, prioritize ocean waste prevention in design and after-use management business partners, NGOs, social and their respective corporate agendas. of single-use plastic packaging waste management organizations. This report outlines the primary business material.38 against key drivers leading different companies This study is also the first step in the • Measure progress performance indicators, and reflect along the plastics value chain to make Roadmap for reducing Ocean Waste upon the project impacts. investments in marine debris on-land (ROW) WBCSD Business Solution. prevention. It is designed as a tool for in other ROW seeks to galvanize the business • Apply lessons learned business leaders to make the case geographical locations. Broader community to prioritize ocean protection within their companies and value replication will be possible once a by demonstrating that on-land marine chains. few projects will have proven to be plastics litter prevention makes business successful. sense. The Roadmap is designed as a

| The Business Case for Reducing Ocean Waste 12 There are two main actions that may Focus of the report 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, or . thermoplastic 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 41 materials degrade into smaller particles ocean . due to physical and biological reactions. Once they reach a diameter smaller A global approach than 5 mm, they are classified as Reducing ocean waste requires a . global framework for action as well secondary micro-plastics Macro-plastic 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.

counties in the US, accounting for over Four main business drivers 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 authorities and collaborate to improve Globally, public perception of ocean • Indonesia, Morocco, and Colombia plastics management at the end-of- plastics is becoming increasingly regulation on using single-use life. This will enable a public-private negative. This trend, coupled with 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 45 Regulations on plastics and plastic EPS packaging in San Francisco; 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 47 Zealand43. others . 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 • CO mitigation • Stakeholders’ 2 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 paragraph A2). The Dow Chemical Company 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 The topic of marine debris is also an plastic waste – announcing in September reputation opportunity for business to improve 2016 that it would spend $2.8 million over 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. “The risk of losing business responsible business. They can also due to an increased • B1 – Corporate responsibility to answer their customers’ requirements, care for plastics at end-of-life which increasingly take plastics end- misperception of plastics by of-life aspects into account. society is real. This argument The scientific community has made 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 and solutions adapted to each local Jeff Wooster • B2 – Risks to upholding company’s Dow Packaging and Specialty Plastics mission and values context. Implementing these local solutions can help a company improve Global Sustainability Director 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

| The Business Case for Reducing Ocean Waste 16 • 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 well as an opportunity to influence the DuPont coordinated in South Africa Suez debate. between October 2016 and March As a major operator in water and waste 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 Attracting, developing and retaining ocean waste management. As a matter ocean represents an opportunity of fact, the Group created PLAST’lab®, an top talents is key to achieving for companies to establish new 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 51 from competitors. good environmental practices . possible, but exploring “Employees are proud to contribute • 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 52 be able to meet the challenge strategies are possible and include Resources General Manager . given the urban population establishing new businesses as well as • C4 – Opportunity to differentiate exploring new business models that 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 • New types of plastic materials DuPont (partially or entirely) made from If demand for plastics were to shift DuPont developed a solution to ease 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 CO emissions by planks for the construction of low cost • New product design tools that 2 using secondary plastics. Below are housing, as demonstrated by the pilot consider the product end-of-life some of the reasons business should project that DuPont coordinated in South 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 57 increased fuel consumption and CO2 the product. This supply would allow reduced greenhouse gas emissions . 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. plastics prices will be volatile and Plastic packaging regulations and • D5 – Opportunity to reduce costs competition for resources will be bans could mean losing key packaging through operational efficiencies options for brand owners. This inevitable. A long-term vision in Shifting to more sustainable materials could increase the need for new which companies diversify their brings opportunities to improve suppliers in purchasing alternative material supplies is a way to address operational costs through leaner material types. In these instances, this business risk. 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.

| The Business Case for Reducing Ocean Waste 18 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 59 • Regulatory risks • New products & processes natural capital . • 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 impacts of plastics on the ocean • Consequences of alternative • CO2 mitigation 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

• On average, the upstream section Pressure to account for natural Mapping to the value chain of the plastics value chain capital risk is increasing. The The following diagram (figure 2) details (producers and converters) indicates Natural Capital Protocol, developed by the Natural Capital Coalition and the degree to which each of the drivers more risks than opportunities as WBCSD, aims to provide guidance is material to each value chain player. material issues. This is based on interviews conducted for companies on how to measure and value their impacts and by WBCSD. • Interestingly, companies downstream (retailers and waste dependencies on natural capital in a consistent manner. Through this table, the following are 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 2. Abide by your company’s mission Sustainability Goals and through innovation and collaboration, Dow is taking a and values leading role on the advancement of a circular economy to ensure that a product’s 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 4. Differentiate yourself from right thing to do, but for the business case it represents. We must all come competitors and position yourself together to work on waste management initiatives that keep plastics waste and as a leader in ocean plastics other debris from leaking into our ocean.” Andrew Liveris, Chairman and CEO, The Dow Chemical Company stewardship

| The Business Case for Reducing Ocean Waste 20 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 61 business goals can and must align so that Amcor remains a strong, growing company.” pressure Ron Delia, CEO, Amcor 2. Seize this business development opportunity and increase your market share by creating new “Being a good corporate citizen is part of ITW’s DNA. Whether supporting local products communities or being good stewards of the environment, we believe in the need to 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 2. Differentiate yourself from versatile material, we need to do much more as an industry to help ensure it is competitors and position yourself managed responsibly and efficiently. We simply cannot continue to allow it to end up as a leader in ocean plastics as plastic marine debris. Our own commitment to ensure that all of our packaging is stewardship reusable, compostable or recyclable by 2025 is one example of the action companies 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 2. Abide by your company’s mission future products.” 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 2. Secure your license to operate by sustainable solutions to more than 10,000 customers for a wide range of waste demonstrating care of local types, including industrial and municipal plastics. In 2015, we managed 14 million tons environmental & social health62 of waste globally.” 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 – Shinryo Corporation, a business The reduced raw garbage eased the Mitsubishi division of Mitsubishi Chemical collection and recycling of plastics, glass, Chemical Holdings Holdings Group, focuses on providing paper and metals in garbage. business solutions to ensure a Next to the composting center, a garbage Corporation resource-efficient and recycling- bank was built for community residents oriented society, including material Building a community-based solid to deposit recyclable paper, plastics, recycling of plastics and chemical waste management system 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) The garbage bank collected 27 tons of respect for local environmental Partnership Program for Promoting recyclable rubbish in 2015. Of the 27 tons and social health, securing Efficiency of Waste Management in of recycled waste, plastics accounted for license to operate 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 Shinryo Corporation, a business After studies on local waste and government and community to address division of Mitsubishi Chemical dumpsites, a new composting center was local needs while minimizing abandoned Holdings Group, focuses on providing built to handle raw garbage from a local plastic waste. business solutions to ensure a public market. In parallel, 400 households resource-efficient and recycling- initially participated in household oriented society, including material composting to reduce garbage recycling of plastics and chemical generation. recycling.

| The Business Case for Reducing Ocean Waste 22 Case Study 2 – Processing plastic waste can be a As the material becomes more valuable, Nestlé 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, CO emissions and other found in the waste stream influence the 2 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 management entity of LafargeHolcim – into fuels and raw materials through LafargeHolcim-Geocycle was founded over 30 years ago. pre-processing, thereby avoiding environmental contamination. Originally created to reduce energy costs at the Group’s cement plants by using Through expertise and state-of-the-art Co-processing plastics reduces alternative fuels derived from waste, it environmental filters, Geocycle is able to the use of primary fuels and developed over time into a full waste manage waste in a safe manner as they mitigates CO2 emissions management services organization. transform it into usable products. Driver illustrated Geocycle offers its customers solutions For example, alternative fuels created are for a wide range of waste, including co-processed in a cement kiln to produce • Opportunity to mitigate CO2 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

countries where Geocycle operates, fuels helps reduce CO2 emissions by http://www.lafargeholcim.com/2030-plan 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 CO and Geocycle is to increase the amount 2 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.

| The Business Case for Reducing Ocean Waste 24 Case Study 4 – Borealis, a leading provider of type, typically in the form of stand-up Borealis 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 acquired the German plastics recyclers • Opportunity to develop new quality of the recyclates. The new Borealis mtm plastics and mtm compact, products and processes solution improves recyclability without technology leaders and one of Europe’s compromising on product efficiency or largest producers of post-consumer • Opportunity for business integrity and, what’s more, increases the polyolefin recyclates. development 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 value chain and beyond is essential. “Cooperation with all players compound grades for automotive Borealis therefore participated in the along the value chain and beyond applications composed of post-consumer creation of the Polyolefin Circular recycled (PCR) and virgin content allowing is essential for the systemic Economy Platform (PCEP), and recently for increased sustainability and resource transformation of today’s linear joined the New Plastics Economy initiative efficiency without compromising on the plastic economy into a circular led by the Ellen MacArthur Foundation quality and performance of the material. economy.” that brings together a broad group of Borealis also introduced a step-change stakeholders, including companies, concept in flexible plastic packaging that cities, and philanthropists, policymakers, Dorothea Wiplinger 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 Considering solutions to reduce Economic co-benefits 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 63 basis . 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 is absorbed by the ocean. It is the • New business models • Improved value-chain knowledge largest net supplier of oxygen in the Needed improvements in waste To close the plastic loop, companies world.69 collection and treatment as well 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 capital. reputational, financial and operational • Reduced CO2 emissions gains for business specifically. They Preventing marine litter contributes Accenture identified five main also help companies achieve their to climate change mitigation, waste business models that underpin the sustainability goals and reporting management and the circular transition towards a circular economy: requirements – while enhancing economy. For example: Circular supply-chain; recovery and reputation and securing a healthy recycling; product life-extension; • Improved waste management environment essential for future sharing platforms; product as a can lead to reducing greenhouse business growth. service . These business models may gas (GHG) emissions across the 70 also provide a new perspective that economy by about 15-20% . 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 path in Europe could halve carbon Social benefits A recent Trucost study estimates dioxide emissions across mobility, Overall, job creation, inclusion of the that the annual environmental food systems and the built informal sector and better environmental costs of plastic marine debris from environment by 203071. conditions will contribute to better living 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

| The Business Case for Reducing Ocean Waste 28 • Informal sector integration • Enhanced public health, • Job creation states that any communities and liveability Employment in waste and resource Stemming the Tide 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 –What are the changing environment Buildingsolutions anthat action business plan can implement both individually and collectively to • Protect and enhance reputation reach impact at scale? • Drive future business growth and secure competitive advantage Addressing barriers to – What are the • Improve business operations implementationfinancial, 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

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

| The Business Case for Reducing Ocean Waste 32 References

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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

| The Business Case for Reducing Ocean Waste 36 Authors: About the World Business Council for The writing and publication of this Sustainable Development (WBCSD) 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 www.wbcsd.org and Tatiana Fedotova for their valuable positive impact for shareholders, the contribution to ROW’s Business Solution. environment and societies. Follow us on Twitter and LinkedIn

Our member companies come from all Credits Disclaimer 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.

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The business case for reducing ocean waste