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Addressing Environmental Impacts of Plastic Waste in the Consumer Goods
Industry: A Case Study of GHI Consumer Goods.
Student’s Name:
University Name:
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Addressing Environmental Impacts of Plastic Waste in the Consumer Goods
Industry: A Case Study of GHI Consumer Goods.
Challenge
GHI Consumer Goods is a large multinational corporation specializing in the production
and distribution of household and personal care products. Mainly located in North America,
Europe, and Asia, GHI has a vast distribution network that extensively uses plastic packaging to
package an array of goods, including cleaning accessories and cosmetics. This ends up in the
consumption of millions of tons of plastic every year, which in turn compels the world into the
ever-growing problem of plastic pollution.
The primary environmental issue facing GHI is the substantial plastic waste generated by
its products, which ends up in landfills and oceans, causing severe ecological damage. Most of
the plastics are not biodegradable and end up polluting the oceans, which affects marine life
negatively; additionally, it also affects the company’s image to the consumers with an eco-
consciousness (Evode et al., 2021). With intensifying legal measures against the use of plastics
and proper waste disposal systems all over the globe, GHI is exposed to possible legal
repercussions, higher expenses and a probable market share reduction due to the competitive
advantage enjoyed by competitors implementing sustainable operations (Vanapalli et al., 2023).
Thus, GHI, which aims at long-term sustainability and compliance with the latest environmental
requirements, must reform its packaging methods and switch to more sustainable packaging.
Evaluation
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GHI's environmental impact is highly material to its business, both from an impact
materiality and financial materiality perspective.
Double Materiality:
Impact Materiality: GHI's extensive use of plastic packaging negatively
impacts both society and the environment. The pervasive presence of plastic waste
contributes to ocean pollution, harming marine ecosystems and wildlife. According to
Vanapalli et al. (2021), Land pollution from plastic waste also affects agricultural
productivity and public health, as toxic substances from plastics can leach into soil and
water sources.
Financial Materiality: The management of plastic waste is crucial to
GHI’s financial health. The SASB Materiality Finder for the “Consumer Goods” industry
identifies “Packaging Waste” and “Resource Efficiency” as critical ESG issues (Boean,
2023). Poor handling of plastic waste can lead to significant financial risks, including
regulatory fines, increased operational costs, and loss of market share to companies with
more sustainable practices (Evode et al., 2021). Failure to address plastic waste
management could result in substantial financial costs due to compliance issues and
inefficiencies.
Stakeholder Impact Map
The stakeholder impact map identifies and addresses the concerns of significant
stakeholders when looking at the management of plastic waste by GHI Consumer Goods:
Ma
terial
Stake
holder 1
Stakehol
der 2
Stake
holder 3
Stakeh
older 4 (Local
Stake
holder 5
4
Issue (Employees) (Customers) (Investors) Communities
)
(Governmen
ts)
Sh
ort-term
Goals
Safe
and healthy
working
environment
Environ
mentally-
friendly
products
Year-
over-year
profitability
and risk
management
Enviro
nmental
protection and
reduced
pollution
Comp
liance with
environment
al regulations
Lo
ng-term
Goals
Job
security and
career
growth
Trust
and brand
loyalty
Sustai
nable growth
and return on
investment
(ROI)
Improv
ed quality of
life
Lowe
ring plastic
waste and
ensuring
environment
al restoration
Ho
w the
company
helps those
goals
Sourc
e of
employment
and income
Provides
household and
personal care
products
Gener
ates returns
on
investment
Infrastr
uctural
development
Sourc
e of essential
revenue for
government
operations
via corporate
tax
Ho
w the
company
High
plastic waste
generation
Products
contributing to
environmental
Poten
tial financial
risks from
Local
environmental
degradation
Risk
of non-
compliance
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hurts those
goals
degradation environment
al liabilities
linked to
continued
operations
and social
harm from
environment
al pollution
Nature as a Stakeholder: The mishandling of plastic waste causes land pollution,
destroying its agricultural potential and ability to support habitation. Additionally, as mentioned
by Vanapalli et al. (2021), plastic waste may also cause water pollution, killing marine life and
reducing the natural appeal of waterways such as lakes and rivers.
The identified stakeholders (from employees and customers to investors, local
communities, and governments) would all support lowering GHG emissions from plastic
production and plastic waste pollution because this safeguards the economic and social benefits
they accrue from GHI's operations.
Planning
Policy Directions: To address the cited environmental issues, GHI Consumer Goods
should adopt a comprehensive sustainability strategy that includes:
Transition to Renewable Energy: Promoting the use of renewable energy
sources in its manufacturing facilities to reduce GHG emissions.
Waste Reduction Initiatives: Increasing plastic waste recycling efficiency and
minimizing material wastage during the manufacturing process as part of a zero-wastage policy.
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Sustainable Product Design: Developing products that are easier to recycle and
use fewer hazardous materials.
Alignment with SDGs:
SDG 7: Affordable and Clean Energy
SDG 12: Responsible Consumption and Production
SDG 13: Climate Action
Metrics and Targets:
Reduce GHG emissions by 40% within five years.
Achieve a 90% plastic waste diversion rate from landfills within three years.
Ensure that 100% of new products are designed for sustainability by the end of
the next financial year.
Action
Implementation Plan:
Resource Allocation: Pledge half of the retained earnings after tax towards reinvestment
in renewable energy technologies and sustainable means of managing plastic wastes in
the firm's operations (Yoshino et al., 2020).
Operational Practices: Identify and assess potential value chain activities for
improvement that lead to the reduction of plastic waste and or increase energy utilization
(Evode et al., 2020).
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Leadership and Oversight: Establish a cross-functional sustainability committee to
manage internal environment initiatives.
Team member Engagement: Ensue organizational publicity and advertising processes in
order to institute an optimization reinforcement program that will encourage the entire
practice of sustainable organizational habits by the personnel.
Stakeholder Communication: Provide quarterly rewritten integrated reports to the
relevant stakeholders about the existing sustainability policies through dialogue engaging
the local people on the observed environmental concerns (Huang, 2021).
Just Transition: Ensure that transitions to new technologies and practices are fair and
inclusive, providing training and support to affected employees.
Review
Outcome Evaluation:
Long-Term Goals: Focus on significant reductions in environmental impact and
achieving sustainability targets.
Non-Financial KPIs:
Percentage reduction in GHG emissions from plastic production (Huang,
2021).
Plastic waste diversion rate.
A number of new sustainable product designs.
Financial KPIs (Optional): Cost savings from energy efficiency
improvements and waste reduction.
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Follow-Up Actions: If the outcomes do not meet expectations, GHI Consumer Goods
should:
Conduct thorough internal assessments to identify barriers.
Engage external consultants for expert advice.
Revise strategies based on feedback and new data.
Enhance stakeholder engagement to gather more input and support.
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Reference
Evode, N., Qamar, S. A., Bilal, M., Barceló, D., & Iqbal, H. M. (2021). Plastic waste and
its management strategies for environmental sustainability.FCase Studies in Chemical and
Environmental Engineering,F4, 100142. https://doi.org/10.1016/j.cscee.2021.100142.
Vanapalli, K. R., Sharma, H. B., Ranjan, V. P., Samal, B., Bhattacharya, J., Dubey, B. K.,
& Goel, S. (2021). Challenges and strategies for effective plastic waste management during and
post-COVID-19 pandemic. Science of The Total Environment,F750, 141514.
https://doi.org/10.1016/j.scitotenv.2020.141514.
Huang, D. Z. (2021). Environmental, social and governance (ESG) activity and firm
performance: A review and consolidation.&Accounting & finance,&61(1), 335-360.
https://doi.org/10.1111/acfi.12569.
Boean, A. (2023). The Sustainability Reports and Pharmaceutical Industry in 2023 Limits and
Opportunities of EU Standards Development, China Policy Regulations and Independent Organisation
Standards.
