SAP: The business costs of plastic pollution and regulations

illuminem summarizes for you the essential news of the day. Read the full piece on Sustainability Magazine or enjoy below:

🗞️ Driving the news: A report from SAP (See sustainability performance) and Earth Action warns that corporate inaction on plastic pollution could result in over $20 billion in global liabilities by 2030
• With increasing regulations like Extended Producer Responsibility (EPR) schemes in over 90 countries, businesses must adapt or face financial and reputational risks
• The report urges early disclosure of plastic usage to mitigate potential liabilities

🔭 The context: Companies face acute risks from industrial disasters and chronic risks from long-term environmental damage, alongside transition risks from shifting regulations and rising R&D costs
• Despite the collapse of UN Plastic Treaty negotiations in 2024, more rounds are expected in 2025, signaling continued regulatory pressure
• Green taxation, including EPR and plastic taxes, could cost businesses 0.5% to 1% of final product revenue, amounting to millions in additional expenses

🌍 Why it matters for the planet: Strengthening plastic data management can help reduce environmental damage from plastic pollution
• With stricter regulations coming, companies that act now will play a key role in advancing circular economy models and reducing plastic waste
• Adopting sustainable plastic management can drive both environmental and economic benefits, ensuring long-term value for businesses and society

⏭️ What's next: Businesses are encouraged to leverage technology like SAP’s Responsible Design and Production (RDP) tool to streamline plastic tracking and compliance
• Companies that proactively manage their plastic footprints will avoid costly regulatory penalties and gain a competitive edge
• Whether or not a global plastics treaty is finalized, corporate transparency and accountability on plastic use will soon become the norm

💬 One quote: “Inaction is no longer an option. Businesses that act now will be better positioned to thrive in the certain future where plastic management, transparency, and accountability are the norm.” — Sarah Perreard, Co-CEO at Earth Action

📈 One stat: 90+ countries have implemented or proposed Extended Producer Responsibility (EPR) schemes to regulate plastic waste, increasing financial and compliance pressures on businesses

See here detailed sustainability performance of SAP

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