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 product/technology/intervenDon?”

Thought leadership QuanDfied $ benefits of the net addressable market for the product/intervenDon Market differenDaDon

Organiza)ons that target solu)ons at major environmental problems will be crea)ng benefits for the global economy. A clear communica)on of these benefits can influence the regulatory 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

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ENVIRONMENTAL BENEFIT ANALYSIS

• 2. QuanDfy the life cycle impacts at

each stage of the value chain

Greenhouse Gases Water Waste Air Pollutants Land & Water Pollutants Land Use

Impacts in different physical units (tonnes, m3, ha)

• 3. Value the net benefits

All impacts presented in a single comparable and ac)onable monetary metric, USD

• 1. Set the scope and boundaries of

the system

DISPOSAL USAGE DISTRIBUTION PACKAGING MANUFACTURING RAW MATERIALS Reuse

• 4. Communicate the results in business terms.

Key Findings

kg of closed-loop plas)c for Op)Plex 3030 kg of 100% virgin plas)c

“Closing the loop” has a 44% greater environmental benefit per kilogram of plas)c Reduced environmental impacts include

Human health & Respiratory effects Climate change Smog Air pollu)on Water pollu)on Ecotoxicity

Key Findings

Environmental Benefits

$50 million per year Avoided environmental costs to society if all Dell’s plas)c was from closed-loop system $1 million per year Avoided environmental costs to society from Dell’s current use of closed-loop plas)c & increased computer recycling $700 million per year Avoided environmental cost to society if all computer industry’s plas)c came from closed loop system

Assump)ons: § 35% closed-loop plas)c, compared to 100% virgin plas)c § Added benefits from increasing computer recycling, to recover plas)c

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ENVIRONMENTAL BENEFITS AT SCALE: SOLAPLAST’S NET ADDRESSABLE MARKET

SUSTAINABLE VALUE CHAINS WITH SOLAPLAST

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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

• f plasDc

Consider ‘true pricing’ – mone)zing externali)es of plas)c produc)on, consump)on and disposal All Low collecDon of plasDc at end-of-use Producer responsibility legisla)on Policy makers Improved access to recycling facili)es/ curbside collec)on Policy makers Large scale plant maeer from responsible sources Direct takeback of product –taking

• wnership of recovery

Retailers/ product manufacturers Incorporate industrial waste product – such as lignin, waste from pulp and paper sector. Investors Academics/Researchers

CHALLENGE: PRODUCT QUALITY

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

CHALLENGE: FINANCIAL ISSUES

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

CHALLENGE: MARKET DEMAND

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