Daily Financial News - ESG Focus

Plastic recycling is one of the most active areas of innovation in the world today, thanks to the threat of regulation. From new or improved recycling technology, to rapid growth in recycled plastic patent filings and new repositories for recycled plastic, this industry wallflower is transforming into the belle of the predators’ ball.

The recycled plastic market is set for a period of intense disruption as the international will to curb the scourge of single-use plastic results in a sharp skew of capital to new technologies and processes.

Plastic collection and recycling presents opportunities for disruptive technology and innovative design; and recycled plastic is a potent ESG thematic, so expect strong activity in the institutional-public-offering and mergers-and-acquisitions markets over the next five years.

Plastic recycling is preparing for a golden decade as the fourth industrial revolution, the shift to a circular economy, climate change and global regulation conspire to drastically increase demand.

Increasing focus on ESG criteria is feeding into emerging new business models, and investors will be forced to pay attention

The Federal Government has announced that it will invest in the Australian recycling industry, starting with an overhaul of its procurement laws. 2020 promises to be a busy year.

The coupling of a circular economy to 4IR means manufacturers are likely to be regulated into supporting the UN Sustainable Development Goals. As a reference point, we provide the SDG targets that will most affect manufacturers.

Governments have determined to use 4IR as a lever into a circular economy, meaning government taxes, subsidies and ESG investment choices will be one of the major sources of capital and drivers of financial success for the manufacturing industry.

Despite steps being taken to bridge the global economic gap, inequality remains vast and entrenched in our society.

The global manufacturing industry stands on the brink of disruption as a perfect storm of digitisation, AI, robotics, and big data transforms industry. Add circularity and ESG to the mix, and it promises to be a wild ride.