A group of investors and managers, representing almost $10 trillion in assets, are calling on businesses to be proactive on sustainability.
Perhaps it isn’t surprising that pressure to reduce the impact of plastic packaging on our planet isn’t just coming from environmentalists anymore. Investors are starting to express concern about how non-sustainable packaging might impact companies’ financial performance.
A group of 185 investors and asset managers, primarily associated with pension funds in Europe and the UK, has issued a joint statement via the Dutch Association of Investors for Sustainable Development, stating that plastic production and use by consumer goods companies and retailers is causing immense damage to the planet. These investors, who represent a combined asset value of nearly $10 trillion, are urging companies to take immediate action in response to what they call a “plastics crisis.” They stress that this crisis isn’t only causing environmental and health hazards, but it may also impact investment returns.
They also highlighted the financial and regulatory risks associated with current plastic usage, which could result in societal demands for taxation and bans as well as potential reputational issues, litigation, and increased raw material costs. Furthermore, the investors pointed out that plastics impose an external cost of about $350 billion per year on society, arising from greenhouse gas emissions, ocean pollution, and collection costs.
“As responsible investors, we are concerned that companies who do not proactively address these risks with actions aimed at reducing their dependence on single-use plastics may face higher costs or lose business opportunity, therefore putting long-term value creation and investment returns at risk,” the statement said.
You can review the whole statement on the Dutch sustainability organization’s website.
If you are concerned about your company’s long-term financial outlook, you simply have to consider sustainable packaging. While this statement primarily focuses on the packaging industry in Europe, we have many of the same market conditions in the United States.
Consumers are more environmentally conscious than ever, and research indicates that they are likely to consider how earth-friendly a brand is when they make their buying decisions. And, as the statement points out, excessive raw materials costs and even fines or bans could end up hurting your overall profitability if you don’t make smart, sustainable decisions with your packaging.
Feeling overwhelmed by the process? Contact AMGRAPH today! We’ll help you make the packaging decisions that support both your green goals and your bottom line.
