The Intersection of Sustainability Reporting and Plastic Recycling: A Call for Urgent Overhaul

Alfred Tang

Alfred Tang

Mar 18, 20243 min read


The Intersection of Sustainability Reporting and Plastic Recycling: A Call for Urgent Overhaul


As the world grapples with the pressing challenges of climate change and plastic pollution, the need for sustainable practices and transparent reporting has become more crucial than ever. Two key areas that demand immediate attention are sustainability reporting standards and the overhaul of plastic recycling systems. In this article, we will explore the common points between these two areas and shed light on the urgent reforms needed to address these issues.

Sustainability Reporting and Climate Change:

The Australian Accounting Standards Board's Exposure Draft, AASB ED SR1, proposes significant changes in sustainability reporting for different entity groups. These changes include replacing the term "sustainability" with "climate" and mandating the disclosure of greenhouse gas (GHG) emissions. The aim is to align financial reporting with climate-related financial disclosures. Entities in different groups have varying timelines to comply with these regulations, emphasizing the importance of timely action in combating climate change.

Plastic Recycling Systems and Chemical Complexity:

Plastic recycling systems have long been criticized for their inability to effectively process complex mixtures of chemicals present in plastics. While plastics are often labeled by their polymer type, such as PET, they actually contain a myriad of chemicals like processing aids, colorings, flame retardants, and plasticizers. Additionally, unintentional additions during manufacturing or use can further complicate recycling. This complexity poses a significant challenge in ensuring the safe and efficient recycling of plastics.

The Impact of Chemicals on Recycling and the Environment:

Chemicals of concern, including persistent organic pollutants (POPs) regulated under the Stockholm Convention, can be found in plastics. The presence of these chemicals not only hampers the recycling process but also raises concerns about the toxicity that can build up in recycled plastics. This highlights the urgent need for an overhaul of plastic recycling systems to address the chemical complexity and ensure the production of safe and environmentally friendly recycled plastics.

Connecting Sustainability Reporting and Plastic Recycling:

While seemingly disparate, sustainability reporting and plastic recycling share a common goal - promoting environmental responsibility and transparency. By incorporating sustainability reporting standards into plastic recycling systems, entities can provide accurate and comprehensive data on the environmental impact of their plastic products. This would enable stakeholders to make informed decisions regarding the use, disposal, and recycling of plastics, fostering a circular economy and reducing overall environmental harm.

Actionable Advice:

  • 1. Embrace Integrated Reporting: Entities should consider adopting integrated reporting frameworks that incorporate both financial and sustainability disclosures. This comprehensive approach enables a holistic understanding of an entity's environmental impact and facilitates the integration of sustainability practices into core business strategies.
  • 2. Invest in Research and Development: Governments, industries, and research institutions should collaborate to invest in research and development of innovative recycling technologies. By leveraging scientific advancements, we can develop efficient and cost-effective methods to address the chemical complexity of plastics, enabling their safe and sustainable recycling.
  • 3. Enhance Collaboration and Regulation: Governments, industry stakeholders, and environmental organizations must collaborate to establish stricter regulations and standards for plastic manufacturing and recycling. By fostering a collaborative approach and implementing robust regulations, we can ensure the effective implementation of sustainability reporting requirements and the overhaul of plastic recycling systems.


The convergence of sustainability reporting and plastic recycling presents a unique opportunity to address pressing environmental challenges. By incorporating sustainability reporting standards into plastic recycling systems, we can promote transparency, accountability, and the production of safe recycled plastics. However, achieving this requires immediate action, including the adoption of integrated reporting, investment in research and development, and enhanced collaboration and regulation. Only through concerted efforts can we pave the way for a sustainable future where both the environment and our economic systems thrive.

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