SAP and research consultancy Earth Action have launched ‘Shift into Gear’, a new report urging industry to prepare for incoming plastic legislation.
The report highlights the risks to businesses failing to scale plastic data management, with corporate liabilities associated with use of the material likely to exceed $20 billion globally by 2030.
‘Shift into Gear’ details how the risk to business can be ‘acute’, such as industrial disasters, or ‘chronic’, resulting from long-term damage to the environment or human health.
Transition risks are said to include regulatory changes like plastic bans and EPR fees that increase costs, market shifts driven by evolving consumer preferences and stakeholder pressures, and rising R&D expenses to adapt to new technologies.
SAP and Earth Action state that strong global rules and standardised reporting across the full lifecycle of plastics would allow businesses to reduce their compliance burden as well as enhance more efficient communication across supply chains.
Delphine Garin, manager, circular finance and data, World Business Council for Sustainable Development (WBCSD), said, “Effective plastic footprint management is no longer just about sustainability — it’s just smart business. As regulations tighten and consumer expectations evolve, companies face mounting financial and reputational risks. By equipping companies with the tools and insights to navigate complex plastic regulations, we can not only advance industry leadership but also drive systemic change.”
Sarah Perreard, co-CEO, Earth Action, added, “An ambitious UN Global Plastics Treaty is both a foundation for change in tackling the plastic crisis and a vehicle to streamline global corporate action. But with a Treaty or without a Treaty, corporations will be unable to erase their plastic footprint and avoid regulation. Inaction is no longer an option. Businesses that act now will be better positioned to thrive in the certain future where plastic management, transparency and accountability are the norm.”
Stephen Jamieson, head of sustainability product marketing, SAP, commented, “Plastic data management has now become a business imperative. Companies that fail to adapt risk significant financial liabilities, while those that embrace digital solutions can gain a competitive edge. SAP is committed to empowering businesses with the technology needed to navigate the evolving regulatory landscape and turn sustainability into an opportunity for growth as well as empowering businesses to future-proof their operations.”
