Financial

Industry Goal:  A competitive and profitable industry

Integrating sustainability into core business strategy to be  successful, competitive and profitable into the future.    

The plastics and chemicals industry provides many benefits to the Australian economy through direct employment of more than 84,000 people, and creating and selling more than $30.5 billion of product each year. The industry is one of the largest sources of manufactured inputs for the Australian economy, and is also one of the most integrated, providing products, services and technology to numerous other industries including agriculture, building and construction, automotive, mining, consumer products, health care and IT. 

The industry's success in achieving this has resulted from a combination of factors. Australia's geographic isolation meant that products were created locally, or overseas products were adapted, to meet Australia's requirements and climatic conditions. This has driven innovation with flexible and adaptive approaches adopted across many supply chains, including plastics and chemicals. Access to local feedstock supply and raw material manufacturing has also been crucial for the industry. At the same time, Australian plastics and chemicals manufacturers continue to face many challenges including increased competition from cheap imports, small scale, older plant, and rising fuel and  energy costs; in short an increasingly competitive local and  global marketplace. 

The success of the Australian plastics and chemicals industry is essential for many sectors of the Australian economy.  The industry's innovation, knowledge and technology will also be critical in meeting the challenges facing Australia, such as climate change, drought, and urbanisation.  Integrating sustainability into core business strategy will support local plastics and chemicals companies and position supply chains for a successful future. 

This will also mean changes to business models and financial information. External costs, like the true cost of water extraction, greenhouse emissions, workplace injuries or waste generation will need to be accounted for in decisions made by businesses. Decision making and goals for financial, environmental and social performance will become integrated. Stakeholders important to the business, such as investors, customers, current and future employees, are also seeking new levels of sustainability information disclosure, above traditional financial accounting reports. Similarly, business models will move beyond accounting for environmental or social responsibility as a cost, to a mindset of creating opportunities for the business.

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