First-ever guidance released for integrating plastic impacts into company ESG assessments
Aimed primarily at ESG data and insights providers, the report Integration of plastics impact evaluation into ESG assessments, supports organizations looking to strengthen its reporting and transparency around plastic usage and impact.
“Despite ESG D&I assessors’ recognition of material financial impacts connected to plastics, an absence of reliable and comparable company data makes it difficult to provide an objective assessment of a company’s plastic performance”, says Andrea Dreifke-Pieper, Director, International Economy Unit, WWF. “This new report from WWF will help overcome these challenges by providing guidance on how plastic impact evaluation can be effectively integrated into ESG assessments.”
The report outlines how relevant plastic performance indicators can be developed and integrated into existing ESG analysis frameworks, taking the companies’ position in the value chain, performance on current plastic action, and preparedness for transitioning into account.
“By setting standards for plastic impact evaluation in ESG analyses, ESG D&I Providers can encourage increased reporting and action on companies’ plastic impact. In the long run, this should be transformed into mandatory standardized reporting and full transparency on companies’ plastic footprint”, emphasizes Dreifke-Pieper.
Over the last decade, plastic pollution has risen to the top of the global environmental agenda due to the increasing ecological, social and economic impacts of this complex problem. With this rising tide of awareness, companies are under increasing pressure to disclose relevant plastics usage and management information for investors and regulators. Through interviews with a range of ESG analysts and investors, the report highlights plastic impact evaluation remains limited. While some ESG data and insights providers already report on some aspects of companies’ plastic impacts, this is a new area of work for the majority of data providers and the lack of consistency across different ratings makes it difficult for investors to make informed decisions.