Companies could face prison time as billions in liability threaten major industries: 'Businesses need to prepare'

Software giant SAP is recommending that South African companies enhance their plastic inventory management in light of upcoming legislation, according to Infrastructure News.

New environmental regulations require that South African companies use 75% recycled plastic by 2025, and 100% by 2027. Failure to do so carries up to five years in prison or fines of up to $265,000. Legislation in other countries, like India, is also forcing producers to increase the recycled content of their packaging. Alternatively, these laws can incentivize companies to pursue biodegradable or plant-based packaging.

"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," said SAP's Sunil Geness, per Infrastructure News.

SAP claimed in a recent report that corporate liabilities for plastic waste will be over $20 billion by 2030. Shifting the responsibility of managing plastic to producers is a major and important change. Plastic recycling has been proved to be ineffective, even when consumers are engaged.

As plastic waste piles up in landfills, it degrades into microplastics, which filter out into waterways. Once prevalent in marine ecosystems, including the fish we eat, microplastics ultimately end up back in humans, where they've been linked to endocrine problems and fertility issues.

While SAP has a vested interest in companies using its software for managing plastic production, the wider benefits of meeting legislative requirements are apparent. It hopes that standardizing definitions for plastics and disclosure will allow for smoother sailing in the future.

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"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," said Geness, per Infrastructure News.

How often do you buy plastic water bottles?

Every day 😬