What is ESG
ESG stands for Environmental, Social and Governance. It represents a comprehensive framework for evaluating a company’s performance and societal impact beyond financial metrics.
Environment
For IAPD and our member companies, “Environment” is about being good stewards of nature while delivering the performance and reliability customers count on. We focus on how materials are made, used and managed at end of life, not just on cost. That means paying attention to greenhouse gas (GHG) emissions, energy and water use, waste, and how performance plastics can help customers reduceimpacts through lighter-weight designs and longer-lasting components. IAPD provides practical tools and resources, from recyclers directories and awards programs to training on carbon footprints and life cycle assessments (LCAs), so members can turn sustainability goals into everyday actions.
Key environmental focus areas:
- Measuring and reducing GHG emissions across operations and the value chain (Scopes 1, 2 and 3).
- Tracking energy, water use, waste and overall carbon footprint to find improvement opportunities.
- Using LCAs to understand a product’s impact from raw material to end of life.
- Designing products and processes that support reduce-reuse-recycle outcomes.
- Avoiding “greenwashing” by using clear definitions, credible data and honest communication.
- Participating in IAPD Sustainability Champions programs that highlight and reward environmental leadership in performance plastics.
Social
“Social” is about people. The employees who build and distribute performance plastics, the customers who use them and the communities where our members operate. IAPD encourages member companies to provide safe, healthy and inclusive workplaces, offer fair opportunities for growth, and support local communities. We align with global goals like the United Nations’ 17 Sustainable Development Goals (SDGs) and use tools such as the Slavery and Trafficking Risk Template (STRT) to shine a light on human rights risks in the supply chain.
Key social focus areas:
- Maintaining safe, healthy workplaces and strong safety cultures.
- Building diverse, equitable and inclusive teams at every level of the organization.
- Respecting human rights in operations and supply chains.
- Supporting local communities through volunteering, philanthropy and partnerships in education and workforce development.
- Offering training, scholarships and career pathways that help the next generation see performance plastics as a rewarding, purpose-driven field.
Governance
“Governance” covers how companies are run. The values, policies and decision-making structures that guide everyday business. IAPD promotes strong, transparent governance so members can meet rising expectations from customers, regulators and investors in the U.S. and around the world. This includes ethical business practices, diverse and accountable boards, fair and transparent executive pay, and clear ESG reporting. IAPD helps members understand and respond to evolving standards and regulations, such as the Corporate Sustainability Reporting Directive (CSRD), EU Taxonomy, Global Reporting Initiative (GRI) and Science Based Targets initiative (SBTi), so they can confidently answer ESG questionnaires and demonstrate progress.
Key governance focus areas:
- Upholding strong ethics, integrity and compliance in all business dealings.
- Building diverse, engaged boards and leadership teams that reflect a range of perspectives and expertise.
- Setting clear ESG goals and tracking progress with meaningful metrics and internal controls.
- Being transparent with stakeholders, including customers, employees and owners.
- Working through IAPD to stay ahead of emerging ESG trends and regulations, strengthening the long-term resilience and reputation of the performance plastics industry.