Circular Economy

Abandoning plastic avoids $100 billion financial risk

PlasticFree and Fashion Snoops launch proposal to abandon plastic

In order to open a window of the future for a different economy, companies must abandon plastic. This is a strategic move to maintain profitability and competitiveness, according to a new report by PlasticFree and Fashion Snoops. Titled “The Post-Plastic Economy“, the report argues that if companies can prepare on time, they can avoid financial risks.

According to PlasticFree co-founder Sian Sutherland, “plastic has become a toxic habit for a business model based on ecological degradation. However, this must not be the case. Over the past decade, consumer demand for change has increased and legislators are adopting policies to address the crisis, but many companies remain tied to the ‘take, do, waste’ attitude.

Recycling is described as a “false solution” by the authors – an ecodesign platform and a trend analysis company. The strict definition is motivated by the fact that plastic production and pollution continue to grow, even with recycling. Instead, they believe that abandoning plastics will mitigate the financial risks associated with growing global regulations. By doing so, it will support the growth of profits and enable the achievement of sustainability, social and governance objectives.

The report illustrates the impact of plastic pollution, environmental legislation, proposes case studies and a roadmap to bring companies and designers to abandon plastics.

Continuing to use it, they say, could result in an “annual financial risk of $100 billion” for businesses by 2040, accounting for 25% of low-margin businesses’ revenue. Global companies, the authors say, face a choice: become leaders in the post-plastic revolution or risk becoming obsolete.

The report suggests 15 design strategies to get the benefits of plastic through natural alternatives and reuse models and right to repair. In addition, companies should invest in traceability systems to understand the environmental impact of materials, monitor global plastic laws, and ensure that third-party verified data support all claims.

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