Publication
Cost reductions give new life to the Netherlands’ Plastic Recycling Industry
Background
Although attention to sustainability is increasing, the topic is often not addressed at strategic level. Yet, given developments in areas such as policy, CO₂ pricing, and access to critical raw materials, sustainability will increasingly need to be discussed in the boardroom — because it also affects Business as Usual.
By translating key developments into financial terms, we can quantify scenarios for the future costs of Business as Usual. With the Future Financial Impact Assessment Tool (FFIAT), organizations gain a strategic foundation to explore alternative scenarios in order to become future‑proof.”
Research question
What are the (future) financial consequences of Business as Usual? And can these be translated into:
- A quick scan based on generic data;
- A detailed analysis for companies based on procurement data?
Approach
To develop these models, we followed four steps:
- Mapping developments and selecting topics. We first identified the key developments (e.g., European regulation, EU ETS price developments, increased use of critical raw materials) in the short, medium, and long term. Special attention was given to the financial implications of these developments. This resulted in the selection of several themes to be incorporated into the models.
- Selecting data sources and assessment methodologies. For each chosen topic, we explored which existing data sources and/or assessment methodologies were available and reliable to support the modelling. These data sources were then integrated into the model.
- Developing scenarios. Next, for the topics to be quantified, various scenarios were developed based on literature.
- Prototype models. A prototype for the quick scan was developed and is currently being tested across different sectors in practice. These real‑world tests will inform improvements to the model. A prototype for the company‑specific model was also developed and validated; here too, practical testing will lead to refinements.
Status
The Minimum Viable Product of several modules of the FFIAT is ready and is currently being tested in practice. If you’re interested in testing the product within your organization as well, we’d love to hear from you. Send an email to cecile@copper8.com for more information.
Results
The result is a pair of tools (a quick scan and an in‑depth analysis) that can be used to quantify and monetize the risks of non‑sustainable business practices. These insights aim to accelerate the strategic positioning of sustainability, helping companies become future‑proof. The outcomes of the model do not offer direct advice but underline the urgency for action.
