Green Accountability: Compostable Packaging as an ESG Game-Changer
Inspired by the spirit of Plastic Recycling Week, we’re diving into what makes compostable plastics a true game-changer in the world of sustainability.
In only two decades, global plastic waste production has surged from 180 million to nearly 400 million tonnes annually, as reported by the OECD's Global Plastics Outlook. Looking ahead, plastic waste is projected to nearly triple by 2060, with half likely ending up in landfills and less than 20% being recycled.
In the battle against plastic waste, compostable, eco-sourced plastics are stepping in. These biodegradable materials, crafted from renewable resources like polylactic acid (PLA), promise a guilt-free future where the packaging of your favourite magazine or brand-new shirt won’t outlive your great-great-grandkids. With global demand for more sustainable packaging on the rise, compostable plastics are making waves in the world of Environmental, Social, and Governance (ESG)—and, yes, companies like LAM'ON are right at the forefront, offering solutions to rescue our planet from the clutches of fossil-fueled plastics.
Why Compostable Plastics Are More Than Just a Trend
Compostable plastics aren’t just the latest green buzzword—they’re an important part of a circular economy. Designed to naturally break down without leaving a trail of microplastic confetti in their wake, these eco-friendly alternatives offer the following benefits:
- Landfill Avoidance: Compostable materials don’t stick around for a century or two; they decompose like nature intended, adding nutrients to the soil rather than piling up in landfills.
- Microplastic-Free: While conventional plastics turn into micro-shrapnel, compostables keep it natural by leaving no toxic trail. LAM'ON ensures its certified packaging solutions contribute to this microplastic-free future, aligning with emerging global standards.
ESG Impact: Not Just Good, But Compostably Great
Green financial markets are rapidly expanding, with ESG fund assets growing by 170% since 2015, and euro area green bonds increasing sevenfold in the same period. This growth underscores the importance of understanding ESG products for promoting a greener economy and managing climate-related financial risks. For companies aiming to win ESG awards, compostable plastics offer some standout perks:
- Environmental Wins: Bio-based plastics skip the whole fossil fuel phase, reducing greenhouse gas emissions and dodging the side effects of traditional plastics.
- Socially Conscious: Compostable materials steer clear of sketchy chemicals and contaminants like PFAS, the so-called “forever chemicals,” giving consumers—and the planet—some peace of mind.
- Good Governance: Opting for compostable plastics checks all the right governance boxes, showing investors and consumers that a company is aware of green initiatives and the future of circular economies. LAM'ON helps companies align their goals with evolving sustainability standards, making it easier to navigate the green shift.
The Fine Print: Global Regulations and Why They Matter
While the EU has thrown down the green gauntlet, banning single-use plastics and restricting packaging excess, other countries are getting on board, too. Efforts to curb single-use plastic bags are underway globally, with 127 countries implementing regulations. However, plastic pollution persists, with around 8 million tons of plastic flowing into oceans each year.
From Canada to Japan, governments are racing to catch up, pushing businesses to ditch non-compostable, single-use plastics for materials that don’t haunt our oceans or our landfills for centuries.
An Opportunity for Change
Currently, traditional plastics continue to dominate the market due to their cost-effectiveness and durability, but their environmental impact is severe, especially with increasing plastic waste pollution. Bioplastics like PLA are seen as essential for reducing this pollution, as they degrade more readily in nature and pose fewer risks to ecosystems and human health.
The environmental and economic advantages of PLA bioplastics over conventional plastics are measurable and significant.
As reported by Fortune Business Insights, in 2023, the global PLA market was valued at USD 1,072.3 million and is expected to increase to USD 1,248.6 million by 2024, reaching USD 4,220.0 million by 2032, with a compound annual growth rate (CAGR) of 16.3% over the forecast period. Europe led the PLA market, holding a 0.4% share in 2023.
The Compostable Conundrum: Challenges and Opportunities
Switching to compostable packaging isn’t all smooth sailing:
- Challenge: Compostable infrastructure isn’t universal, so depending on where you are, that eco-friendly coffee cup may still end up in a landfill. The future lies in starting to recycle bioplastics.
- Opportunity: On the bright side, compostables help brands stay ahead of the regulatory curve, saving them from scrambling to keep up with new laws. Plus, sustainability-minded consumers? They love it. Compostables aren’t just a packaging choice; they’re a brand statement.
Compostable Plastics: The Future of “Unplastic”
The bottom line? Compostable plastics might just be the closest we get to a “plastic-free” future without giving up convenience. For companies, they’re a chance to charm eco-conscious customers, stay on regulators' good side, and take a bold step toward a more sustainable, compost-friendly world. It’s high time to say goodbye to our fossil-fueled plastic habit and embrace compostables—after all, saving the world never looked so good on the balance sheet.