Plastic production under pressure

Businesses that fail to scale their plastic data management could face corporate liabilities of more than $20-billion globally by 2030. This is according to a report by SAP and Earth Action.

“Governments are implementing Extended Producer Responsibility (EPR) schemes, plastic taxes and reporting requirements to turn the tide on unchecked plastic production and use,” says Sunil Geness, director: Global Government Affairs & CSR Africa and Global Sustainability Lead for Africa at SAP.

“Businesses need to prepare for the incoming plastic legislation by enhancing their data management and compliance efforts to ensure they gain a clear, accurate picture of their plastic material flows and minimise the environmental impact of plastic products in their supply chains,” he added.

South Africa, a founding member of the African Circular Economy Alliance, requires that companies increase the percentage of post-consumer recyclate to 75% by 2025, and 100% by 2027. Non-compliance can result in fines of up to R5-million or imprisonment for up to five years.

“Businesses wishing to mitigate risks regarding plastic products in their supply chain need to implement robust data management to improve compliance and advance their sustainability and circular economy goals,” says Sunil. “South African companies also face increasing pressure from government regulations to minimise plastic waste and enhance their recycling efforts, adding further pressure on business leaders.”

Sunil notes that emerging technologies can deliver circular economy benefits across the plastic lifecycle. “AI and IoT enhance efficiency during manufacturing, while blockchain ensures transparency throughout supply chains through immutable and transparent records of plastic materials. IoT-enabled smart packaging can engage consumers any providing recycling information and incentives, while tech-powered advanced recycling technologies can convert waste into valuable resources, closing the loop in circular economy efforts.”

The African Circular Economy Alliance was founded by the UN Environment Programme. South Africa has also begun implementation of its National Waste Management Plan, which supports the ideals of the circular economy.