SAP is urging South African companies to prepare for incoming plastic legislation to protect profit and the planet.
According to a new report launched in partnership with research consultancy Earth Action, business that fail to scale their plastic data management could face corporate liabilities of more than $20-billion globally by 2030. “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.”
Global effort at minimising plastic waste
Sunil Geness, Director Global Government Affairs & CSR Africa and Global Sustainability Lead for Africa at SAP.
March 18th was Global Recycling Day, an annual initiative that aims to raise awareness of the importance of plastics recycling among business leaders and citizens alike. An attempt at a UN-led Global Plastic Treaty failed last year, with a new round of negotiations planned for August later this year. The proposed treaty includes a cap on plastic production, better management of plastic products and chemicals of concern, and financing to support implementation of the treaty in developing countries. “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 Geness. “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.”
South Africa’s updated environmental regulations require 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.
The African Circular Economy Alliance, founded by the UN Environment Programme, includes South Africa as a founding member. The country has also begun implementation of its National Waste Management Plan, which supports the ideals of the circular economy.
Technology as enabler
“Technology can play a leading role in supporting company efforts at circular economy initiatives, including improved management of plastics-related processes and compliance,” says Geness.
“Digital technologies can support waste management and monitoring processes, mitigate pollution, and enhance the efficiency and sustainability of the plastics value chain.”
Due to the complexities of adhering to various regulations and the breadth of modern enterprises’ supply chains, Geness recommends implementing a technology platform such as SAP’s Responsible Design and Production (RDP) to help build a full, accurate picture of plastic material flows. “The platform enables the aggregation of plastic and materiality data, helps to meet Extended Producer Responsibility requirements, and identify areas for potential improvement. This can save businesses millions in costs associated with compliance and administration, while unlocking opportunities for strengthening sustainability efforts.” Geness 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.” “South African companies have an opportunity to go beyond compliance and leverage technology for immense sustainability and circular economy gains, to the benefit not only of our planet but also people and our shared future.”
