INSIGHT by the CDP
Thousands of companies are behind on key steps to tackle plastic pollution in their value chains, according to landmark data released by CDP, the non-profit that runs the world’s environmental disclosure system. The data reveals, for the first time, the extent of companies’ awareness of their contribution to the plastic crisis, and presents a strong baseline for accelerating action at the fourth round of Global Plastics Treaty negotiations (INC-4) later this month, where mandatory corporate disclosure is on the table.
Findings show that almost half (42%) of companies took the vital first step of mapping where plastics were produced and used within their value chains in 2023. However, there are significant gaps in corporate understanding and action:
- Only 21% of companies were aware of risks associated with their plastic-related activities, however
- 70% of companies have not yet mapped the impacts of their plastic-related activities on the environment and human health; and
- 64% have not yet set targets for managing their plastic-related impacts, such as the use of plastic products and waste management practices.
These findings come from the disclosures of nearly 3,000 companies in 2023, spanning all regions and sectors1, many of which have significant plastic-related impacts, including food and beverage, retail, and apparel. These high-impact companies are very likely to face tangible risks as a result, including supply chain disruptions, waste management fees, and regulatory risks, with more than half of G20 countries already having introduced plastic-related legislation.
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Encouragingly, of companies not yet taking action, around half plan to take map their impacts and set targets within the next two years. Greater visibility of plastic footprints, gained through consistent corporate data disclosure, will support companies to build strategies reduce their use of plastics and the pollution associated with it. Governments can accelerate this by including mandatory corporate disclosure on plastics in the Global Plastics Treaty being negotiated in Ottawa later this month.
“The fact that 3,000 companies disclosed voluntarily disclosed on plastics in this pilot year is an incredibly positive first step. Our findings show how much actionable data on plastics is needed. Not just to rapidly boost corporate progress and translate awareness into action, but to assess our global progress toward reducing plastic pollution and its impacts. Governments must seize this once-in-a-lifetime opportunity and create the enabling environment companies need by agreeing an ambitious Global Plastics Treaty, with mandatory corporate disclosure as a core element. As plastic use continues to rapidly increase, our time to effectively limit its most dangerous impacts shrinks. We must accelerate action on plastics urgently by making plastics disclosure mandatory.”
-CDP’s Head of Sustainable Business, Nathan Cole
Disclosure is the foundation of action. It’s a key tool for companies to understand their plastic-related impacts and know what they need to do to manage them. Disclosure is also a business necessity and increasingly required to secure access to capital and to compete efficiently in global supply chains.
Companies recognize this and have signalled their desire to see disclosure mandated. 37 companies worth more than US$ 270 billion in market capitalization value have signed CDP’s open letter to governments to this effect, asking them to create the regulatory certainty and level-playing field needed.
A spokesperson from Stella McCartney commented: “Since Stella McCartney’s debut as the first-ever luxury house to never use animal leather, feathers, fur, or skins, we have been on a mission to source and create cruelty-free alternatives that are less reliant on fossil fuels. Through the disclosure of our plastics data, we have been able to further assess our plastic use within our products and packaging – highlighting further reductions and opportunities for innovation and circular solutions. As a brand that proudly supports bio- and plant-based alternatives to petroleum products, we signed CDP’s corporate open letter calling for mandatory corporate disclosure within the Global Plastics Treaty as a call-to-action for other brands and business leaders to join us in defining their commitments on reducing their plastic use, whilst supporting and scaling their investments in sustainable solutions.”
Nathan Cole continued: “Companies must acknowledge the evidence: no industry is immune to the massive risks associated with plastic pollution. CDP has prepared companies to start providing the data that they, investors and policymakers need to tackle plastic pollution and waste.
“Once agreed, CDP stands ready to drive market implementation of mandatory disclosure through our global disclosure platform. We have already started preparing companies and in 2024, we’re scaling this further, by encouraging all disclosing companies – 23,000+ in 2023 – to report on plastics through CDP. Heading into INC-4, we remain committed to putting our wealth of data, insight and expertise, and our trusted disclosure system, at the disposal of stakeholders during the INC process and once a Treaty is in place.”
CDP’s expansion to plastics disclosure is in partnership The Ellen MacArthur Foundation, The Pew Charitable Trusts, the Minderoo Foundation and WWF.
Explore CDP’s findings on plastic data
| about
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 740 financial institutions with over $136 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 24,000 organizations around the world disclosed data through CDP in 2023, with more than 23,000 companies – including listed companies worth two thirds global market capitalization – and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy.
CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
CDP, Minderoo Foundation, The Pew Charitable Trusts, WWF, and The Ellen MacArthur Foundation are working together to expand CDP’s global environmental disclosure system to help solve the plastic pollution problem. In the coming years we will build a plastics disclosure mechanism comparable to carbon, ensuring that plastic-related disclosure informs decision-making and becomes a business norm, building on existing frameworks including the Ellen MacArthur Foundation’s Global Commitment. Together, we will harness the transparency and accountability obtained through disclosure to drive ambitious action on plastic pollution at scale from companies, investors, governments and regulators. This will be essential to the global protection of the environment and human health, supporting the transition to a 1.5°C, nature-positive, globally equitable world.
| All opinions expressed are those of the author and/or quoted sources. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.
