Designing ESG-driven supply chains to manage plastic waste

As we mark World Environment Day 2025 globally, with the theme ‘Ending Plastic Pollution’, the urgency of addressing plastic waste in India has never been greater. The country generates an estimated 9.4 million tonnes of plastic waste annually, of which 5.6 million tonnes are recycled, while the remaining 3.8 million tonnes are left uncollected or littered (MoHUA 2021¹). While a portion of the waste is repurposed through co-processing and alternative uses, such as road construction, a significant portion remains mismanaged, often littered or dumped, contributing to extensive ecological damage. Packaging alone accounts for nearly 59% of India’s plastic consumption (Hossain et al., 2023²), a figure expected to rise with the growth of sectors like FMCG, pharmaceuticals, retail, construction, and agriculture.

In this context, the design and governance of organisational supply chains, often overlooked in discussions about plastic waste, can serve as powerful levers for systemic change.

Rethinking supply chains through an ESG lens

Plastic pollution is not just an environmental hazard; it is symptomatic of traditionally fragmented and linear supply chain models, prioritising efficiency over accountability. ESG (Environmental, Social, and Governance) frameworks provide a comprehensive blueprint for shifting this paradigm. An ESG-aligned supply chain shifts the focus to the production process, encompassing sustainable packaging design, responsible procurement, downstream traceability, waste recovery, and circular logistics. Key areas of transformation include:

1. Material innovation and packaging optimisation to reduce virgin plastic use and design for recyclability.

2. Inclusive procurement and stakeholder engagement with recyclers, informal waste workers, and local communities to build resilience and equity.

3. Governance mechanisms for product stewardship, traceable data systems, and transparent disclosures aligned with frameworks like the Global Reporting Initiative (GRI) and the Securities and Exchange Board of India’s (SEBI) Business Responsibility and Sustainability Reporting (BRSR) framework.

Leading organisations are embracing systemic, ESG-aligned approaches to address plastic waste on a large scale. The United Nations Development Programme’s (UNDP) plastic waste management initiative in India, aligned with the Swachh Bharat Mission, has bolstered decentralised waste collection and recovery in underserved areas, complemented by global FMCG leaders who are advancing regional recycling ecosystems and packaging innovations to localise circularity.

Community-led interventions have proven effective in driving ground-level change. In 2023, the Indian Coast Guard mobilised over 25,000 volunteers to remove more than 24,000 kg of marine litter (Indian Coast Guard website³), with broad ecosystem support from industry and civil society. Similar initiatives, especially those engaging schools and children, have been instrumental in raising awareness and shaping sustainable behaviours. When coupled with take-back and reuse models, they hold strong potential to unlock community-driven upcycling solutions that generate both environmental and economic value.

Moreover, proactive corporate engagement in Extended Producer Responsibility (EPR) is reshaping responsible production. For instance, a leading global beverage company’s ‘World Without Waste’ initiative targets recycling every bottle it sells by 2030 through circular strategies like higher recycled content in packaging, reusable formats, and effective collection of waste via Deposit Return Schemes and localised EPR models.

Ultimately, innovative plastic offsetting schemes enable businesses to reduce their plastic footprint by funding certified recovery projects and investing in community-led circular solutions. These programmes offer a practical pathway toward plastic neutrality when the immediate elimination of plastic use isn’t feasible.

These examples reflect a growing recognition that eliminating plastic waste requires more than isolated initiatives—it demands an integrated, ESG-driven transformation of the supply chain.

Moving up the ESG maturity curve - the strategic value of plastic neutrality

A critical enabler in this transition towards maturity is the readiness assessment for plastic circularity. This forward-looking diagnostic enables businesses to evaluate their current systems, identify structural gaps, and chart a strategic path toward circularity in plastic waste management. Such assessments examine the value chain in its entirety, from material sourcing and packaging design to recovery infrastructure, stakeholder engagement, and traceability mechanisms.

By aligning with EPR frameworks and integrating plastic-linked metrics into ESG disclosures, these assessments support organisations in strengthening regulatory compliance while enhancing their credibility among investors, consumers, and policymakers. Crucially, they strengthen internal preparedness, embedding a lifecycle mindset, data transparency, and systems accountability—thus positioning plastic circularity not as a peripheral initiative, but as a driver of long-term business resilience and sustainable value creation.

A Call to Action

World Environment Day 2025 serves as a powerful reminder that plastic pollution is a systemic challenge that demands systems-level responses. The future of sustainable business lies not in isolated industry efforts but in supply chains that are circular by design, governed by ESG principles, and built for long-term resilience.

The way forward is clear: manage plastic responsibly and embed ESG principles systematically.

Disclaimer - The views, thoughts and opinions expressed in the article are solely the author’s and are not representative of the author's employer/ organisation.