Memorandum Sourcing Ocean Plastics To Reduce Environmental D

Memorandum Sourcing Ocean Plastics To Reduce Environmental Degradati

Memorandum Sourcing Ocean Plastics To Reduce Environmental Degradati

MEMORANDUM: SOURCING OCEAN PLASTICS TO REDUCE ENVIRONMENTAL DEGRADATION AND GLOBAL POVERTY

TO: Sustainable Materials Sourcing, Okay Corporation

FROM: Sustainability Consulting

DATE: May 8, 2018

SUBJECT: Recycled ocean plastic textiles are a novel and economically viable market sector. The Okay Corporation should source recycled ocean plastics to expand their global sustainability efforts.

Paper For Above instruction

The escalating crisis of plastic pollution in marine environments presents a severe threat to ecosystems, human health, and economic development. Addressing this issue requires innovative, sustainable sourcing strategies that align economic incentives with environmental conservation. One promising approach is sourcing ocean plastics for textile manufacturing, turning a significant environmental challenge into an economic opportunity. This paper explores the rationale, benefits, and strategic approaches for Okay Corporation (OKC) to incorporate recycled ocean plastics into their product lines, emphasizing environmental impact mitigation and socio-economic development.

Introduction

The magnitude of plastic waste in marine environments has reached alarming levels, with over 300 million tons of plastic produced annually. Of this, approximately eight million tons enter the oceans, causing widespread ecological harm. Marine species ingest or become entangled in plastic debris, leading to injury, death, and declines in biodiversity. Furthermore, microplastics infiltrate the food chain, posing health risks to humans and animals alike (Derraik, 2002). This crisis is compounded by ineffective waste management systems, especially in developing nations, where poverty inhibits infrastructure development for recycling and waste mitigation.

In recent years, innovative ventures like Adidas’ Parley shoes and garments by G-Star Raw have demonstrated the commercial viability of ocean plastic-derived textiles, appealing to increasing consumer interest in sustainability and ethical consumption (Kharpal, 2018; Ilyashov, 2016). Such initiatives exemplify the potential for a market-driven solution to ocean plastic pollution, aligning environmental goals with corporate profitability and brand value. OKC's strategic entry into this market holds the potential to establish leadership in sustainable fashion while contributing meaningfully to ocean conservation efforts.

Understanding the Issue Through Ecosystem Services Framework

The Millennium Ecosystem Assessment conceptualizes ecosystem services as benefits humans derive from ecosystems, which include provisioning services like raw materials, regulating services such as climate regulation, and cultural services tied to aesthetic and recreational values. The problem of ocean plastic pollution undermines several of these services. For instance, it diminishes provisioning services by degrading fish stocks, affects regulating services by introducing toxins and disrupting habitats, and erodes cultural services by impairing coastal landscapes and recreational appeal.

Using the diagram on page 7 of “Living Beyond Our Means,” the direct drivers include plastic waste discharge from land-based sources and fishing activities. Indirect drivers comprise inadequate waste management infrastructure and socioeconomic factors like poverty, which limit proper waste disposal. These drivers impact constituents of human well-being by threatening livelihoods, health, and cultural values associated with pristine marine environments. The interconnectedness of drivers and ecosystem services elucidates the necessity for multifaceted solutions that target both immediate sources and root socioeconomic causes.

Economic School of Thought Approaches

Neoclassical (Free-Market) Perspective

From a neoclassical standpoint, market-based incentives are central to addressing ocean plastic pollution. A primary solution would be to introduce economic instruments such as taxes on virgin plastics or subsidies for recycled materials. By internalizing externalities, these measures elevate the true cost of plastic production and waste, incentivizing manufacturers to adopt sustainable sourcing. Additionally, establishing a market for ocean plastic as a raw material can stimulate private investment in collection and recycling infrastructure. Product labeling and consumer information campaigns would further enhance demand for ocean plastic-based textiles, reinforcing market signals that favor sustainable products (Anderson & Leal, 1992).

New Institutional (Transaction Cost) Perspective

New institutional economics emphasizes reducing transaction costs and improving governance structures. OKC could establish clear contractual agreements with trusted intermediaries like the Plastic Bank, which employs blockchain technology to enhance transparency and fairness in sourcing (Frankson, 2017). Developing certification standards for ocean plastics would also reduce information asymmetries, facilitating consumer trust and market participation. Over time, OKC might invest in establishing its own sourcing network, mitigating costs associated with third-party intermediaries. Effective regulatory frameworks, voluntary standards, and reputation mechanisms are crucial components in this approach to foster responsible sourcing and minimize enforcement costs.

Institutional Economics Approach

Institutions shape individual behavior and social norms, making them critical in environmental management. From this perspective, OKC should focus on changing consumer preferences through awareness campaigns emphasizing the moral and social implications of plastic pollution. Engaging with communities and NGOs to promote recycling norms and responsible consumption will address the cultural drivers of plastic waste. Policies that encourage behavioral shifts, such as deposit-return schemes or community-led waste management initiatives, reinforce social norms and create a supportive institutional environment for sustainable practices (Vatn, 2010). This approach recognizes that long-term success depends on aligning economic incentives with social values and norms.

Strategic Recommendations

In the short term, OKC should partner with established organizations such as the Plastic Bank to access a reliable supply of recycled ocean plastics, thereby reducing transactional uncertainties and enabling rapid market entry. This collaboration benefits from existing infrastructure, reputation, and blockchain transparency, ensuring responsible sourcing and cost efficiencies. As market conditions evolve and capacity develops, OKC could establish in-house sourcing operations, leveraging vertical integration to further reduce costs and control supply chain dynamics. Additionally, integrating sustainability into branding and marketing strategies will appeal to eco-conscious consumers, boosting demand and legitimizing ocean plastic textiles as premium, virtue-signaling products.

Conclusion

Transforming ocean plastic waste into valuable textiles offers a viable pathway toward mitigating marine ecosystem degradation while generating economic value. For OKC, integrating ocean plastics into its sourcing portfolio aligns with global sustainability trends, consumer preferences for ethically sourced products, and corporate social responsibility objectives. Success hinges on adopting multifaceted strategies informed by economic, institutional, and social insights—leveraging market mechanisms, reducing transaction costs, and fostering social norms. By doing so, OKC can position itself as an industry leader in sustainability, contribute meaningfully to ocean conservation, and promote a circular economy that benefits both ecosystems and human communities.

References

• Anderson, Terry L., & Leal, Donald R. (1992). Free Market Versus Political Environmentalism. Harvard Journal of Law & Public Policy, 15(2), 297-310.
• Arrowsmith, Richard. (2016). Real Madrid and Bayern Munich to wear specially designed kits made from recycled ocean plastic. Mailonline.
• Derraik, J. G. (2002). The pollution of the marine environment by plastic debris: a review. Marine Pollution Bulletin, 44(9), 842–852.
• Frankson, Shaun. (2017). Plastic Bank deploys blockchain to reduce ocean plastic. IBM IT Infrastructure Blog.
• Ilyashov, Alexandra. (2016). Pharrell Might Be The Most Sustainability-Focused Celeb In Fashion. Refinery29.
• Kharpal, Arjun. (2018). Adidas sold 1 million shoes made out of ocean plastic in 2017. CNBC.
• Rutherford, M. (2001). Institutional economics: then and now. Journal of Economic Perspectives, 15(3), 135–154.
• Vatn, A. (2010). An institutional analysis of payments for environmental services. Ecological Economics, 69(6), 1245-1252.
• Williamson, Oliver E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38(3), 595-613.