Recent global tensions have pushed up oil prices significantly, and that increase is now feeding into the cost of virgin plastic, which is derived from fossil fuels. As oil becomes more expensive, so does new plastic. As a result, the price gap between new (virgin) plastic and recycled plastic is narrowing.
For years, policymakers and researchers have said that sustainability is about future-proofing your business. Companies that rely less on volatile resources like fossil fuels are possibly better positioned to handle shocks, whether from geopolitics, supply disruptions, or long-term resource constraints.
The takeaway for me isn’t whether this specific shock changes behaviour. It’s that, over time, sustainability and circularity may become less about values and more about resilience and long-term competitiveness.
In the picture: Recycled plastic pellets
