According to Gallato, “there is not enough recycling infrastructure in place to effectively cater for the vast spectrum of plastic produced.” Despite corporate efforts, the growth of plastic production far outpaces the expansion of recycling systems.

“Over the last ten years, the growth rhythm of plastic production has been 20 times faster than recycling growth,” Gallato explained. This discrepancy leaves a large volume of plastic unprocessed, as not all plastics are recyclable, and even the ones that are can only be recycled a limited number of times.

"Plastic that can be recycled cannot undergo the process more than 2-3 times before its quality becomes too poor for use."

Gallato also highlighted the issue of microplastic pollution, stating, "Recycling can lead to another equally hazardous type of pollution, through its release of microplastics and compounding of chemicals."

These revelations cast doubt on the notion that recycling alone will solve the problem of plastic waste.

Factors driving the plastic surge

Despite corporate circularity efforts, Gallato’s research predicts an overall increase in plastic waste by 2040. “Plastic waste is continuing to grow across a plethora of sectors,” she pointed out, attributing this rise to a "business-as-usual approach" across industries.

Sectors such as textiles and sports equipment, which rely heavily on plastic and synthetic materials, are experiencing substantial growth in plastic consumption due to its cost-effectiveness and desirable properties, such as light weight and durability.

Gallato stressed that without global targets and harmonised standards, the plastic surge will continue. "The Global Plastics Treaty is the best opportunity to date to foster such changes," she noted, urging for stronger global legislation to tackle the issue.

In response to current corporate strategies, Gallato explained, “Not all actions that improve circularity necessarily led to a reduction in plastic pollution.” While recycling and eco-design initiatives are steps in the right direction, they are insufficient when applied alone.

She believes true progress will only come from combining these efforts with proactive reduction targets and investments in waste management systems capable of handling the volume of plastic waste being generated.

Gallato also emphasised that businesses should not only offer recyclable products but must ensure that these products are actually being recycled. "Everything that is not necessary should be avoided," she said, citing single-use packaging as a prime example.

Driving meaningful corporate change

Looking ahead, Gallato is optimistic about the upcoming UN Global Plastics Treaty and its potential to drive meaningful change in corporate plastic management.

She expects the treaty to bring about global policies that will be integrated into both national and corporate plans. "Mechanisms such as Extended Producer Responsibility (EPR) will play a more prominent and coordinated role in business operations," Gallato stated.

In addition to legislative pressures, Gallato predicts financial drivers will also play a key role in pushing corporate plastic strategies forward. “We expect that the Treaty will require investors to report on specific indicators concerning plastic pollution,” she said.

Such metrics could impact a company’s access to financing, leading to more robust plastic mitigation strategies and improved circularity goals.

The financial sector has already begun to take notice. Gallato pointed to CDP’s recent inclusion of plastic-related indicators in its surveys, traditionally focused on carbon and water. "Both legislative and financial pressures will drive these changes," Gallato concluded.

For further insights on the importance of corporate responsibility and the role of the UN Global Plastics Treaty in shaping future plastic strategies, you can read the latest report from the World Business Council for Sustainable Development (WBCSD) here.

Gallato remains firm in her belief that true change will only come when businesses adopt reduction targets and align with emerging global frameworks.

“We need at least a 30 percent reduction in plastic production by 2040 if we’re to limit plastic pollution,” she urged, calling for urgent action in the face of growing environmental pressures.