Risk unwrapped: plastic pollution as a material business risk

The document identifies plastic pollution as a material business risk, categorising it into transition, reputational, physical, and liability risks. It details how regulatory shifts, technological disruptions, and public perception threaten the long-term viability of plastic-intensive companies. Furthermore, it asserts that under UK law, directors have codified duties to manage these risks to promote company success and exercise reasonable care, warning that failure to do so could lead to personal liability.

• Plastic pollution contributes to climate change because plastics are derived from fossil fuels and their production is energy-intensive, with each tonne of plastic produced resulting in an average of 2.5 tonnes of CO2 emissions from the production process alone.
• If current trends continue, the plastics sector is projected to account for 15% of the global annual carbon budget and 20% of total oil consumption by 2050.
• Plastic pollution creates significant economic externalities; single-use packaging alone is estimated to generate $40 billion in costs not borne by the responsible parties, a figure that likely exceeds the packaging industry's total profits.
• Companies face transition risks from an accelerating pace of regulatory change, including bans on single-use plastics and the implementation of 'polluter pays' principles through taxes and extended producer responsibility schemes.
• Technological disruption poses a risk to traditional plastic producers as bio-based and biodegradable materials become more cost-effective and innovative reuse systems, such as multi-business deposit-return schemes, gain traction.

APA

ClientEarth (2018). Risk unwrapped: plastic pollution as a material business risk. https://www.clientearth.org/media/swamlmkr/risk-unwrapped-plastic-pollution-as-a-material-business-risk-ce-en.pdf

Chicago

ClientEarth. Risk unwrapped: plastic pollution as a material business risk. 2018. https://www.clientearth.org/media/swamlmkr/risk-unwrapped-plastic-pollution-as-a-material-business-risk-ce-en.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=Risk unwrapped: plastic pollution as a material business risk |date=July 2018 |url=https://www.clientearth.org/media/swamlmkr/risk-unwrapped-plastic-pollution-as-a-material-business-risk-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearth2018risk, author = {{ClientEarth}}, title = {{Risk unwrapped: plastic pollution as a material business risk}}, institution = {ClientEarth}, year = {2018}, month = jul, url = {https://www.clientearth.org/media/swamlmkr/risk-unwrapped-plastic-pollution-as-a-material-business-risk-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }