How businesses can turn plastics risks into opportunity

Concerns have never been more acute about pollution and toxicity from plastics. Plastic production and waste could nearly triple by 2060, yet hopes are weak for a global plastics treaty after the last attempt flamed out in August.

But regardless of its outcome, this moment marks a turning point for business risks and opportunities around plastics.

The treaty collapsed after Saudi Arabia, the United States, Russia and other fossil-fuel-friendly nations balked on production caps, which more than 100 other countries demanded. The United Nations treaty requires unanimity, however, and many experts are pessimistic about that possibility.

Treaty stakeholders return to Geneva on Feb. 7 to elect a new chair, who will need to navigate tensions with obstructionist countries.

Risks and opportunities

“Reckless petrochemical capacity expansion isn’t just harmful for the climate; it’s increasingly seen as a financial risk,” said Andres del Castillo, senior attorney at the Center for International Environmental Law.

In July, more than 80 financial institutions managing a collective $7 trillion in assets warned of major liabilities related to plastics.

In addition, the health impacts of plastics will cause businesses to lose customers, according to Judith Enck, author of the 2025 book, “The Problem with Plastic.” Scientists recently tied plastics in the body to heart attacks and Alzheimer’s disease. “Poll after poll shows that the public wants less plastic,” she said.

The good news: Advancing circular and less-toxic plastic systems can create new business streams and 8.6 million jobs, according to the Dec. 3 “Breaking the Plastics Wave” report by Pew Charitable Trust and ICF International.

Where businesses stand

More than 300 companies in the Business Coalition for a Plastics Treaty— including Coca-Cola, Unilever and Walmart — re-affirmed their eagerness on Dec. 9 for new treaty talks.

Another collaboration, the U.S. Plastics Pact, continues working with scores of other corporations (and a handful of the same ones) to address waste. “We see companies refining — not retreating from — their commitments as they align goals with real-world constraints and focus on durable impact,” said Jonathan Quinn, president and CEO of the U.S. Plastics Pact.

Without a global treaty, businesses must navigate a patchwork of new rules governing plastics in the European Union, U.S. states and many other key markets.

Where the European Union goes …

The EU leads on such regulations, including banning single-use foodware. Microplastics controls started in 2025, and members are adapting extended producer responsibility (EPR) rules that force packaging and fashion brands to account for their products’ waste, post-sale.

Next August, the EU’s Packaging and Packaging Waste Regulation sets binding reduction and recycling goals through 2040. The sweeping Corporate Sustainability Reporting (CSRD) and Corporate Sustainability Due Diligence (CSDDD) regulations, although evolving, could require disclosure and supply-chain actions by business.

Other nation states and U.S. states

In the U.S., bipartisan support for plastics regulation, including two recent Senate bills, “should signal to companies that Congress is taking note and prioritizing finding solutions to address our plastic pollution crisis here in the U.S.,” said Erin Simon, vice president of plastic waste and business at WWF.

EPR laws in California, Oregon, Maine, Minnesota and Maryland are attracting copycats. Bans on single-use plastics are rolling ahead in fits and starts in multiple states and nations, too. A dozen states are mulling rules on “forever chemical” plastic additives in kitchenware and food packaging, with rules already in effect in New Mexico.

In addition to regulations, companies face new legal risks regarding plastics. For instance, class action lawsuits are cropping up around microplastics released by water and baby bottles, noted Katie Bond, a partner at the law firm Keller & Heckman in Washington, D.C. 

How businesses can respond

Several themes regarding business responses to these challenged emerged from recent expert conversations and reports:

Make fewer virgin plastics

New plastics production makes up 86 percent of emissions related to plastics. To counter that, the circular economy movement is building steam to popularize redesign, repair and resale.

Consider health impacts

Health problems are tied to about one-quarter of the 16,000 known plastics chemicals. Businesses can get ahead of regulations and substitute suspect materials, especially for products that touch the body, like kitchenware, to-go containers, cosmetics and toys. Cottage industries are rising for “low-toxic” products.

Slow microplastics shedding

Packaging accounts for nearly 40 percent of plastic waste. But farming practices, paints, tires, textiles, healthcare and recycling operations also release significant microplastics. Companies can filter out, monitor and report such releases.

“If a company is concerned about cases over microplastics, a good starting place can be to audit which products might be most likely to leach microplastics,” attorney Bond said.

Drop problematic polymers

Polystyrene (Styrofoam), EPS and PVC are likely targets for bans or restrictions due to toxicity or poor recyclability. Companies can inventory where legacy resins are used and build phase-out timetables.

Sound the alarm

Sustainability executives “need to throw their weight around and tell companies that they have to get ahead of this plastics problem or they’re going to lose sales,” said Enck, president of Beyond Plastics, based in Vermont. “I don’t think that message has gotten through.”

Back plastic policies

Corporations should lobby in line with their climate aspirations, instead of trying to play both sides of an issue. For instance, in October, Beyond Plastics called out 100 companies for advocating against a New York proposal to enhance recycling.

Unlock plastic supply chain transparency

Advocates are calling for a global chemical-disclosure framework around plastic footprints and health risks. As investor and regulatory pressures build, companies can improve supply chain traceability.

Scale refill and reuse systems

Circular business models and recycling could nearly eliminate plastic packaging pollution by 2040 in a best-case scenario, according to “Breaking the Plastics Wave.”

Reusable and refillable packaging is creeping forward. Moving faster requires retailer partnerships, redesigned packaging, reverse logistics and investment in cleaning and refilling systems.

Redesign packaging for recyclability

Simplified, single-material designs that ditch excess films, wraps or fillers are more likely to meet future design requirements that address recyclability, safety and microplastic prevention.

Expand waste management

Better collection and sorting systems can improve recycling. However, the alphabet soup of plastic ingredients makes them technically challenging to recycle. That’s partly why plastic recycling has stagnated below 10 percent for decades, and chemical recycling remains unproven at scale.

“Focusing on plastic recycling to solve the plastic pollution crisis is like sweeping leaves on a windy day,” Enck said. “We’re not going to make significant progress until companies reduce their reliance on plastic.”