Accounting for sustainable plastics Dr Richard Mattison CEO Trucost - PowerPoint PPT Presentation

Accounting for sustainable plastics Dr Richard Mattison CEO Trucost Plc

SUSTAINABLE PLASTICS STUDY “What is the societal benefit in dollars (USD) of the sustainable plasDcs Market differenDaDon product/technology/intervenDon?” Thought leadership QuanDfied $ benefits of the Organiza)ons that target solu)ons at major environmental problems will be crea)ng benefits for the global economy. A clear net addressable market for communica)on of these benefits can influence the regulatory the product/intervenDon environment, a?ract capital from impact investors and demonstrate to stakeholders that the investment in innova)on provides measurable environmental benefits.

SUSTAINABLE PLASTICS STUDY Launch of a new approach to measure environmental benefits Dell & Algix Case Studies

ENVIRONMENTAL BENEFIT VALUATION FRAMEWORK 4

ENVIRONMENTAL BENEFIT ANALYSIS 1. Set the scope and boundaries of 2. QuanDfy the life cycle impacts at the system each stage of the value chai n Reuse RAW DISPOSAL Greenhouse Air Pollutants MATERIALS Gases Water Land & Water Pollutants MANUFACTURING USAGE Waste Land Use Impacts in different physical units (tonnes, PACKAGING DISTRIBUTION m3, ha) 4. Communicate the results in business terms . 3. Value the net benefits All impacts presented in a single comparable and ac)onable monetary metric, USD

Key Findings kg of closed-loop plas)c for kg of 100% virgin plas)c Op)Plex 3030 “Closing the loop” has a 44% greater environmental benefit per kilogram of plas)c Human health & Respiratory effects Climate change Smog Reduced environmental impacts include Air pollu)on Water pollu)on Ecotoxicity

Key Findings Assump)ons: Environmental Benefits § 35% closed-loop plas)c, compared to 100% virgin plas)c § Added benefits from increasing computer recycling, to recover plas)c $50 million per year $1 million per year $700 million per year Avoided environmental Avoided environmental Avoided environmental costs to society if all costs to society from Dell’s cost to society if all Dell’s plas)c was from current use of closed-loop computer industry’s closed-loop system plas)c & increased plas)c came from computer recycling closed loop system

ENVIRONMENTAL BENEFITS AT SCALE: SOLAPLAST’S NET ADDRESSABLE MARKET 8

SUSTAINABLE VALUE CHAINS WITH SOLAPLAST 9

SUSTAINABLE PLASTICS STUDY Launch of a new approach to measure environmental benefits Dell & Algix Case Studies Economic benefit of $3.5bn from scaling: Closed loop recycling in ICT industry • Using bioplas)c in footwear industry • Using bioplas)c in soa drink industry •

CHINA OPPORTUNITY? China Green Finance Commi?ee Chinese banks accoun)ng for natural capital Growth of green bond market in China G20 summit

THANK YOU! Dr Richard Mabson FRSA CEO Trucost Plc richard.maeson@trucost.com @richmaeson h?ps://uk.linkedin.com/in/richardmaeson

CHALLENGE: FEEDSTOCK ACCESS Cause SoluDon Stakeholder Low perceived value Consider ‘true pricing’ – mone)zing All of plasDc externali)es of plas)c produc)on, consump)on and disposal Low collecDon of Producer responsibility legisla)on Policy makers plasDc at end-of-use Improved access to recycling Policy makers facili)es/ curbside collec)on Large scale plant Direct takeback of product –taking Retailers/ product maeer from ownership of recovery manufacturers responsible sources Incorporate industrial waste product Investors – such as lignin, waste from pulp Academics/Researchers and paper sector.

CHALLENGE: PRODUCT QUALITY Cause SoluDon Stakeholder Some bioplasDcs are Con)nued innova)on and Investors reported to be inferior in development Academics/Researchers some qualiDes Low quality feedstock can Improve design for recycling/ Original product and plas)cs jeopardize quality in end reuse manufacturers product

CHALLENGE: FINANCIAL ISSUES Cause SoluDons Stakeholders Cheap oil commodity Raise awareness of other financial All prices benefits – stability of feedstock, brand value, protec)on against future legisla)on Low volumes of Develop infrastructure to achieve All processed material economies of scale at each step of value chain

CHALLENGE: MARKET DEMAND Cause SoluDon Stakeholder Distrust of benefit Avoid greenwashing by ensuring benefit of Academics/ claims product is scien)fically and robustly calculated. Researchers Use a holis)c assessment that considers poten)al Manufacturers trade-offs. (plas)c and product) End customer not Educate end consumers of the benefit of NGOs aware sustainable plas)cs to help drive demand Policy makers Quality of end Improved marke)ng and awareness raising, as Policy makers product (perceived) well as con)nued development where issues do Manufacturers exist Higher costs of plasDc By improving technical issues faced in the above All issues, cost of produc)on of sustainable plas)cs will be reduced, allowing for more compe))ve end pricing also.