A Strategic Guide to Next-Generation Sustainability Reporting

As the sustainability landscape evolves beyond carbon-centric metrics, organizations face mounting pressure to address the full spectrum of environmental impacts. With global waste generation projected to reach 3.4 billion tonnes annually by 2050 and freshwater scarcity affecting over 2 billion people worldwide, corporate commitments to zero waste, zero freshwater depletion, and zero plastics have moved from aspirational to essential.

The regulatory and market landscape in 2025 makes comprehensive environmental planning non-negotiable. From the EU's Corporate Sustainability Reporting Directive (CSRD) to CDP's expanded disclosure requirements, companies must demonstrate tangible progress across multiple environmental dimensions. This article provides a practical roadmap for designing and implementing transition plans that address these critical imperatives while positioning your organization as a sustainability leader.

The Evolving Reporting Landscape: Beyond Carbon Metrics

The corporate sustainability reporting ecosystem has undergone a fundamental transformation. While carbon accounting remains central, 2025 marks a pivotal year for corporate plastic accountability, with major frameworks expanding their scope to encompass waste, water, and plastics with unprecedented rigor.

Key Reporting Frameworks Now Requiring Zero Waste and Plastics Disclosure

CDP (Carbon Disclosure Project): The 2025 integrated questionnaire has expanded plastics-related disclosure requirements, making it clear that companies must report on plastic footprints and mitigation strategies alongside traditional climate metrics. With 4,815 companies disclosing water-related data in 2023 (a 23% increase from 2022), CDP has established itself as the gold standard for comprehensive environmental reporting.

CSRD (Corporate Sustainability Reporting Directive): Bringing rigorous ESG reporting requirements including material plastic-related disclosures for thousands of companies operating in the EU. The double materiality assessment mandated by CSRD requires companies to evaluate both their impact on society and the environment (inside-out perspective) and how sustainability matters affect their business (outside-in perspective).

TNFD (Taskforce on Nature-related Financial Disclosures): Highlights plastic pollution as a key environmental risk, reinforcing the importance of structured plastic footprint reporting and its connection to biodiversity loss and ecosystem degradation.

EU PPWR (Packaging and Packaging Waste Regulation): Introduces mandatory recyclability and reuse targets, requiring businesses to quantify and mitigate their plastic footprint at unprecedented levels of transparency. This regulation represents a paradigm shift from voluntary commitments to legally binding requirements.

The Plastic Footprint Network (PFN) has emerged as the leading scientific initiative for harmonized plastic footprinting methodologies. Their forthcoming Plastic Mitigation Accounting Framework (MAC Framework) provides the standardized metrics companies need to navigate complex reporting requirements and demonstrate credible progress.

The Zero Waste Packaging Market: A $244 Billion Opportunity

The market is responding with force. The zero waste packaging market is projected to reach $244.14 billion by 2032, growing at a CAGR of 8.44% from 2025 to 2032. This growth is driven by increasing regulatory pressure, consumer demand for sustainable alternatives, and the expansion of circular economy business models. Companies that position themselves as leaders in this transition will capture significant competitive advantages in both cost savings and brand equity.

However, recent analysis by As You Sow reveals a troubling gap between corporate commitments and action. Of 147 companies with package recyclability goals, only 15% were on track to meet them. This implementation gap underscores the critical need for strategic expertise in translating aspirational goals into operational reality.

Conducting Materiality Assessments for Zero Waste and Plastics

A robust materiality assessment forms the foundation of any effective sustainability strategy. This systematic process identifies which environmental, social, and governance issues have the greatest impact on your business and stakeholders, allowing you to focus resources where they matter most.

Understanding Double Materiality

The CSRD's double materiality framework requires companies to assess sustainability topics from two critical perspectives:

• Impact Materiality (Inside-Out): How your organization's operations, products, and value chain affect people and the environment. For plastics, this includes pollution from packaging, microplastics generation, and contribution to ocean waste.

• Financial Materiality (Outside-In): How environmental and social issues create risks and opportunities for your business. This encompasses regulatory compliance costs, reputational risks, supply chain disruptions, and market opportunities in sustainable alternatives.

A sustainability topic is considered material if it meets criteria from either or both perspectives. This comprehensive approach ensures that companies address not only business-critical issues but also their broader societal and environmental responsibilities.

Conducting Your Materiality Assessment: A Five-Step Process

1. Identify Potential Sustainability Topics

Begin with a comprehensive scan of potential environmental impacts across your value chain. For zero waste and plastics initiatives, consider:

• Packaging waste generation and end-of-life management

• Plastic use across operations, including single-use plastics

• Water consumption and discharge quality

• Waste diversion rates and landfill dependency

• Circular economy opportunities (reuse, repair, remanufacturing)

• Microplastics generation from products and processes

2. Map Your Value Chain

To accurately assess materiality, you must understand the full life cycle of your products and services. This includes:

• Identifying interactions, resources, and relationships along supply, marketing, and distribution channels

• Understanding exposure to different financing, geographical, geopolitical, and regulatory environments

• Analyzing activities and products by geographical location

• Reviewing supplier relationships and manufacturing processes

3. Engage Stakeholders

Comprehensive stakeholder engagement is essential for identifying material issues that might not be apparent from internal analysis alone. Survey and interview:

• Customers and consumers (increasingly concerned about packaging and plastics)

• Investors (prioritizing ESG performance and regulatory compliance)

• Suppliers (critical for Scope 3 emissions and circular economy initiatives)

• Employees (champions for internal sustainability programs)

• NGOs and community organizations (providing crucial outside-in perspective)

• Regulators (insight into upcoming compliance requirements)

4. Prioritize and Score Topics

Assess each topic against both impact and financial materiality using quantitative and qualitative criteria:

• Severity: How significant is the environmental or social impact?

• Scale: How widespread is the issue across your operations and value chain?

• Remediability: Can negative impacts be addressed?

• Financial Impact: What is the potential effect on revenue, costs, and enterprise value?

• Stakeholder Concern: How important is this issue to key stakeholder groups?

5. Validate and Report

Present findings to senior leadership and board members, obtain approval, and integrate material topics into your sustainability strategy and reporting frameworks. The assessment should be reviewed and updated regularly—typically every 1-3 years—to reflect evolving business conditions, stakeholder expectations, and regulatory requirements.

Life Cycle Assessment: Quantifying Environmental Impacts

While materiality assessments identify what matters most to stakeholders, life cycle assessment (LCA) provides the objective, science-based data on where your actual environmental impacts occur. This complementary approach is essential for designing effective zero waste and zero plastics strategies.

Understanding Life Cycle Assessment

LCA is a methodological framework for assessing the environmental impacts of a product, process, or service throughout its entire life cycle—from raw material extraction through production, use, and end-of-life disposal. As required by the CSRD and ESRS framework, LCA can be an integral part of your reporting toolbox.

The ISO 14040 series outlines four main phases of LCA:

• Goal and Scope Definition: Establishing the purpose of the study, system boundaries, and functional unit

• Inventory Analysis: Collecting data on energy use, raw material consumption, emissions, and waste generation

• Impact Assessment: Evaluating impacts across categories such as global warming potential, resource depletion, water scarcity, and plastic pollution

• Interpretation: Identifying hotspots, drawing conclusions, and recommending actions

Applying LCA to Zero Waste and Plastics Strategies

Identifying Hotspots for Waste and Plastics

LCA reveals where the most significant environmental impacts occur in your product life cycle. For packaging-intensive industries, studies typically show that:

• 60-80% of packaging impacts occur in raw material extraction and manufacturing

• End-of-life disposal contributes 15-30% of total impacts

• Transportation and distribution account for 5-15% of impacts

Comparing Material Alternatives

LCA enables objective comparison of packaging alternatives. For example, comparing virgin plastic, recycled plastic, bioplastics, paper, and reusable systems across multiple impact categories (carbon footprint, water use, waste generation, pollution potential) provides the data needed for informed decision-making rather than relying on assumptions about what is "most sustainable."

Setting Science-Based Targets

LCA quantification provides the baseline for setting meaningful reduction targets. Rather than arbitrary percentage goals, you can establish targets grounded in actual environmental impact data and benchmarked against industry best practices.

Practical Implementation: Streamlining LCA for Business

Conducting comprehensive LCAs for every product can be resource-intensive. Strategic approaches include:

• Product Portfolio Grouping: Group similar products by ingredients or manufacturing processes to reduce the number of studies needed

• Parameterization: Use LCA software with parameterization features to investigate various combinations of inputs and enable comparative analysis

• Screening LCA: Conduct initial screening studies to identify high-priority products for detailed assessment

• Industry Databases: Leverage established LCA databases for background data, focusing primary data collection on unique processes

Strategic Frameworks: From Assessment to Action

With materiality assessment and LCA data in hand, organizations can now design comprehensive strategies across three critical domains: water stewardship, waste elimination, and circular design.

Water Stewardship: Beyond Zero Freshwater Depletion

Water stewardship extends beyond simple consumption reduction to encompass the responsible use and treatment of water resources in ways that protect downstream ecosystems, communities, and organizations. Corporate water data disclosures have seen an 85% increase in the past five years, reflecting growing recognition of water as a material business risk.

Comprehensive Water Accounting

Effective water stewardship begins with robust accounting systems that track:

• Withdrawals by source (groundwater, surface water, third-party water)

• Consumption volumes (water not returned to watershed)

• Discharges by destination and treatment level

• Water quality metrics and pollutant controls

• Operations in water-stressed regions (using tools like WRI Aqueduct)

Context-Based Water Targets

Leading companies are moving beyond absolute reduction targets to context-based targets informed by local watershed conditions. The Science Based Targets Network (SBTN) provides methodologies for setting freshwater targets that account for local water availability, ecosystem needs, and community access.

Water Stewardship Action Hierarchy

Prioritize interventions according to the following hierarchy:

• Reduce: Implement water efficiency measures, optimize cooling systems, and eliminate water waste

• Reuse: Deploy closed-loop water systems and treat wastewater for internal reuse

• Regenerate: Support watershed restoration projects and nature-based solutions

• Engage: Participate in collective action initiatives with other water users in shared watersheds

Waste Elimination and Circular Design

The circular economy represents a fundamental shift from incremental improvements to regenerative systems that create positive impact. While zero waste targets focus on minimizing disposal, circular design reimagines products and business models to eliminate waste by design.

The Waste Hierarchy for Business

Prioritize waste strategies according to environmental impact:

• Prevent: Eliminate waste at source through design optimization and material efficiency

• Reuse: Design for multiple use cycles through durability, repairability, and modularity

• Remanufacture: Restore products to like-new condition for extended service life

• Recycle: Design for recyclability and establish closed-loop material flows

• Recover: Extract value from materials through composting, anaerobic digestion, or energy recovery as a last resort

Circular Design Principles

Design decisions made at the outset determine 80% of a product's environmental impact. Integrate these principles:

• Design for Longevity: Build products to last, with timeless design and robust construction

• Design for Disassembly: Use reversible fasteners and clearly marked materials for easy separation

• Material Selection: Choose renewable, recycled, or recyclable materials; avoid material combinations that complicate recycling

• Standardization: Use common components and materials across product lines to simplify repair and recycling

• Digital Passports: Implement product tracking and material composition data to enable circular recovery

Advanced Recycling Infrastructure

The recycling industry is undergoing transformation. Mechanical recyclers across North America have the capacity right now to recycle significantly more plastic—the challenge is creating sustained demand. Forward-thinking companies are addressing this through:

• Binding commitments to use recycled content at premium pricing

• Partnerships with recyclers to develop closed-loop systems

• Investment in advanced recycling technologies (chemical recycling, enzymatic recycling)

• Support for policy initiatives like the CIRCLE Act to strengthen domestic recycling infrastructure

Regenerative Practices: Beyond Sustainability

The most ambitious organizations are moving beyond minimizing harm to actively restoring and regenerating natural systems. Regenerative business models reimagine corporate purpose from extraction to contribution.

Key regenerative strategies include:

• Regenerative Agriculture: Partner with suppliers using farming practices that restore soil health, enhance biodiversity, and sequester carbon

• Ecosystem Restoration: Invest in watershed restoration, reforestation, or habitat creation projects in regions where you operate

• Biomaterials Innovation: Develop or adopt bio-based materials that support regenerative agriculture and provide biodegradable alternatives to conventional plastics

• Community-Centric Design: Ensure that regenerative initiatives create shared value for local communities, not just environmental benefits

Supplier and Customer Engagement: The Collaborative Imperative

With Scope 3 emissions typically accounting for 70-90% of a company's total greenhouse gas emissions, engaging suppliers in sustainability efforts is critical for achieving meaningful progress. The same principle applies to waste and plastics—the vast majority of impact occurs upstream in material production and downstream in disposal.

Strategic Supplier Engagement Framework

1. Assess and Prioritize

With supplier networks ranging from hundreds to tens of thousands, companies cannot engage all partners equally. Adopt a risk-based approach:

• Conduct Scope 3 screening to identify suppliers responsible for the majority of environmental impacts

• Use spend-based analysis as a proxy when activity data is unavailable

• Focus initial efforts on suppliers accounting for at least 67% of Scope 3 emissions (per SBTi guidelines)

• Assess supplier sustainability maturity to tailor engagement strategies

2. Engage with Clear Expectations

Communicate sustainability requirements transparently and provide support for compliance:

• Develop a responsible sourcing policy signed by all suppliers

• Set clear targets for plastic reduction, recycled content, and waste diversion

• Establish standardized reporting requirements aligned with CDP or similar frameworks

• Provide technical assistance and capacity building programs

3. Incentivize Performance

Mature supplier engagement programs balance accountability with positive rewards. PMI's Sustainability Accelerator Program exemplifies this approach, growing from 5 pilot suppliers in 2023 to 46 suppliers in 2025.

• Preferential contract terms for high-performing suppliers

• Recognition in sustainability reports and marketing materials

• Co-investment in sustainable technologies

• Joint innovation projects for circular packaging solutions

4. Monitor and Enable Continuous Improvement

Establish ongoing monitoring systems and provide support for supplier improvement:

• Quarterly performance reviews against established KPIs

• Remediation plans for underperforming suppliers

• Collaborative improvement projects addressing shared challenges

• Industry partnerships to advance collective standards

Customer Engagement in Zero Waste Programs

Customers and consumers play a critical role in closing the loop. Effective engagement strategies include:

Product Take-Back and Recycling Programs

• Establish convenient collection points for product returns

• Offer incentives (discounts, loyalty points) for product returns

• Partner with retailers for in-store collection

• Implement digital platforms for easy recycling instructions and location finders

Reusable Packaging Systems

Shift from single-use to reusable packaging through:

• Deposit return schemes that incentivize container returns

• Subscription models where packaging is returned with each delivery

• Refill stations in retail locations

• Partnerships with reusable packaging platforms

Transparency and Education

• Clear labeling of packaging materials and recycling instructions

• Digital content explaining your zero waste commitments and progress

• Behind-the-scenes access to circular economy initiatives

• Community engagement events and workshops on sustainable practices

Integrating Zero Waste and Plastics Targets into Sustainability Reporting

The final step in your transition plan is integrating these initiatives into comprehensive sustainability reporting that demonstrates accountability and drives continuous improvement.

Essential Reporting Elements

1. Establish Baselines and Set Targets

• Baseline Year Data: Document current performance across all material metrics (total waste generation, plastic use, water consumption, recycling rates, etc.)

• Science-Based Targets: Set ambitious yet achievable targets grounded in planetary boundaries and stakeholder expectations

• Interim Milestones: Establish checkpoints (e.g., 25% reduction by 2027, 50% by 2029) to maintain momentum

• Boundary Definition: Clearly define organizational boundaries and which parts of the value chain are included

2. Report Progress Transparently

Annual sustainability reports should include:

• Quantitative Progress: Actual performance against targets with year-over-year trends

• Qualitative Context: Explanation of progress drivers, challenges encountered, and strategic responses

• Case Studies: Detailed examples of successful initiatives with measurable outcomes

• Stakeholder Engagement: Summary of engagement activities and how feedback shaped strategy

• Supply Chain Impact: Progress on supplier engagement and value chain transformation

3. Align with Reporting Frameworks

Ensure your reporting addresses requirements from relevant frameworks:

• GRI Standards: Use GRI 306 (Waste), GRI 303 (Water), and material-specific standards

• CDP: Complete Water Security questionnaire and emerging plastics disclosures

• CSRD/ESRS: Address double materiality requirements for circular economy and pollution

• SASB: Include industry-specific metrics for waste and water management

4. Seek Third-Party Assurance

Build credibility through independent verification:

• Limited or reasonable assurance of sustainability data

• Certification of specific programs (e.g., Zero Waste certification)

• External validation of methodologies and calculation approaches

• Recognition on industry leaderboards (CDP A List, etc.)

Creating a Roadmap for Integration

A phased approach ensures successful integration of zero waste, zero plastics, and zero freshwater targets into existing sustainability infrastructure:

Phase 1 (Months 0-6): Foundation Building

• Complete materiality assessment and baseline LCA

• Establish governance structure and assign accountability

• Develop data collection systems and reporting protocols

• Set preliminary targets and secure leadership approval

Phase 2 (Months 6-18): Strategy Development and Pilot Programs

• Design comprehensive strategies for water, waste, and plastics

• Launch pilot programs in select locations or product lines

• Begin supplier engagement and capacity building

• Refine targets based on pilot learnings

Phase 3 (Months 18-36): Scaling and Integration

• Roll out successful initiatives across operations

• Expand supplier and customer engagement programs

• Integrate reporting into annual sustainability cycle

• Pursue external recognition and certifications

Phase 4 (Year 3+): Continuous Improvement and Innovation

• Achieve initial targets and set more ambitious goals

• Invest in innovative technologies and business models

• Lead industry collaborations and standard-setting efforts

• Transition from zero harm to regenerative impact

Council Fire: Your Strategic Partner for Comprehensive Sustainability Transformation

Designing and implementing comprehensive transition plans for zero waste, zero freshwater depletion, and zero plastics requires more than good intentions—it demands strategic expertise, cross-sector collaboration, and the ability to translate complex sustainability concepts into operational reality.

Council Fire is uniquely positioned as your strategic partner in this transformation. As a global change agency, we bring the systems thinking, practical tools, and stakeholder-centered approach needed to move from pledges to measurable progress.

Why Council Fire?

Holistic Systems Approach

We don't just address isolated challenges—we connect policy, finance, infrastructure, and community to solve problems across scales. Our expertise spans from conducting rigorous materiality assessments to designing regenerative supply chains that restore ecosystems while driving business value.

Deep Technical Expertise

Our team brings proven capabilities in:

• Materiality assessments and life cycle analysis aligned with CSRD, CDP, and TNFD requirements

• Water stewardship strategy development and watershed-based target setting

• Circular economy roadmapping and zero waste program design

• Sustainable supply chain transformation and supplier engagement programs

• Comprehensive sustainability reporting and framework alignment

Radical Partnership Approach

We co-create with the people closest to the problem—from coastal communities to C-suites—building trust and capability along the way. Our stakeholder engagement methodologies ensure that your transition plans reflect the needs of all constituencies, from investors to frontline workers to local communities.

Action Over Abstraction

We reject sustainability theater. Our work is grounded in measurable progress, practical tools, and long-term value creation. We help you build implementation roadmaps with clear milestones, accountability structures, and the operational capabilities needed to achieve your zero waste, zero plastics, and zero freshwater goals.

Proven Track Record

Our portfolio spans work with leading corporations, foundations, governments, and NGOs. From designing climate resilience strategies for coastal municipalities to operationalizing ESG commitments for Fortune 500 companies, we bring a track record of translating complex sustainability challenges into actionable solutions.

Our Service Offering

Council Fire provides end-to-end support for your sustainability transformation:

Assessment and Strategy Development

• Double materiality assessments meeting CSRD requirements

• Product and organizational life cycle assessments

• Value chain mapping and hotspot identification

• Science-based target setting for waste, water, and plastics

• Circular economy opportunity assessment and business model innovation

Implementation and Program Design

• Zero waste program design and roll-out support

• Water stewardship roadmaps and efficiency initiatives

• Plastics reduction strategies and sustainable packaging design

• Supplier engagement program development and deployment

• Customer engagement strategies for circular programs

Reporting and Communications

• CDP Water Security and plastics disclosure preparation

• CSRD/ESRS compliance support and reporting

• Sustainability report development and data assurance coordination

• Impact storytelling and stakeholder communication strategies

• Recognition pursuit (CDP A List, B Corp certification, etc.)

Capacity Building and Change Management

• Staff training on sustainability best practices

• Leadership coaching on sustainability governance

• Cross-functional team facilitation

• Change management support for operational transformation

Conclusion: From Compliance to Competitive Advantage

The transition to zero waste, zero freshwater depletion, and zero plastics represents one of the defining business challenges—and opportunities—of our time. Companies that treat these commitments as mere compliance exercises will find themselves perpetually playing catch-up. Those that embrace them as strategic imperatives will unlock innovation, build resilience, and capture the trust of stakeholders who increasingly demand environmental leadership.

The roadmap outlined in this article—from rigorous materiality assessment through life cycle analysis to comprehensive strategy development and stakeholder engagement—provides the foundation for credible, measurable progress. But strategy without execution is simply aspiration.

This is where partnership becomes essential. Council Fire brings the expertise, collaborative approach, and commitment to action needed to transform sustainability ambitions into operational reality. We help you navigate the complex landscape of emerging reporting requirements, design strategies grounded in science and stakeholder needs, and build the internal capabilities required for long-term success.

The era of incremental sustainability improvements is ending. The future belongs to organizations bold enough to reimagine their relationship with natural resources, humble enough to engage authentically with stakeholders, and strategic enough to see environmental stewardship not as a cost center but as a driver of innovation and competitive advantage.

We don't just help you plan. We help you build the future.

About Council Fire

Council Fire is a global change agency partnering with governments, foundations, NGOs, and visionary companies at the intersection of sustainability, justice, and economic transformation. We bring systems thinking, stakeholder-centered planning, and action-oriented strategies to help organizations confront climate disruption, resource inequality, and institutional inertia.

Our expertise spans climate resilience, circular economy, sustainable infrastructure, water stewardship, and ESG strategy. We work with organizations ranging from coastal municipalities to Fortune 500 companies, always grounded in our commitment to measurable progress, practical tools, and long-term value creation.

Contact us to discuss how we can support your sustainability transformation.