UNIVERSITY OF GHANA COLLEGE OF BASIC AND APPLIED SCIENCES TOWARDS INDUSTRIAL ECOLOGY: AN ASSESSMENT OF ENVIRONMENTAL PRACTICES WITHIN THE PLASTIC INDUSTRY IN ACCRA, GHANA. BY SALWAH OMAR GYABO (10349071) THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MPHIL IN SUSTAINABILITY SCIENCE DEGREE INSTITUTE FOR ENVIRONMENT AND SANITATION STUDIES JULY 2021 University of Ghana http://ugspace.ug.edu.gh i DECLARATION I, Salwah Omar Gyabo declare that except for references to other people’s work which has been fully acknowledged, this thesis is my original research work conducted at the Institute for Environment and Sanitation Studies under the supervision of Dr Daniel Nukpezah and Dr Adelina Mensah. 4th November, 2022 ……………………….. ………………………. Salwah Omar Gyabo Date (Student) 4th November, 2022 ……………………….. ………………………. Dr Daniel Nukpezah Date (Principal Supervisor) 4th November, 2022 ……………………….. ………………………. Dr. Adelina Mensah Date (Co-Supervisor) University of Ghana http://ugspace.ug.edu.gh ii DEDICATION I wish to dedicate this work to Almighty Allah for his mercies and grace throughout my study period. Secondly, to my husband; Jamaldeen Sumaila for his enormous financial and emotional support. Also to my parents and siblings for the awesome prayers, encouragement and commitment towards my wellbeing over the years. University of Ghana http://ugspace.ug.edu.gh iii ACKNOWLEDGEMENT I wish to express a big thanks to my supervisors Dr Daniel Nukpezah and Dr Adelina Mensah for their time, guidance and leadership at each stage of the study. An immense thanks go to all participating enterprises for their benevolence to take part in the study. I further extend a sincere appreciation to my husband, Jamaldeen Sumaila for taking time out of his busy schedule to help in data collection. Also a big thanks goes to my siblings; Abdul-Razak Omar Gyabo for helping in developing the map and analysing data and to Iklil Omar Gyabo and Abdullah Omar Gyabo for editing and formatting my work and checking my references. Finally I thank my colleagues for giving suggestions towards the work and providing a brilliant experience during the study period. University of Ghana http://ugspace.ug.edu.gh iv TABLE OF CONTENTS DECLARATION ................................................................................................................... i DEDICATION ...................................................................................................................... ii ACKNOWLEDGEMENT .................................................................................................. iii TABLE OF CONTENTS ..................................................................................................... iv LIST OF FIGURES .......................................................................................................... viii LIST OF TABLES ............................................................................................................... ix LIST OF ABBREVIATIONS .............................................................................................. xi ABSTRACT ........................................................................................................................ xii CHAPTER ONE ................................................................................................................... 1 INTRODUCTION ................................................................................................................ 1 1.1 Background ................................................................................................................. 1 1.2 Problem Statement ...................................................................................................... 5 1.4 Justification of Study .................................................................................................. 6 1.3 Research Objectives .................................................................................................... 7 CHAPTER TWO .................................................................................................................. 9 LITERATURE REVIEW...................................................................................................... 9 2.1 Corporate Environmental Practices............................................................................. 9 2.1.1 Reactive and proactive corporate environmental practices. ............................... 10 2.1.2 Benefits of corporate environmental practices ................................................... 11 2.1.3 Motivation and barriers of corporate environmental practices .......................... 13 2.1.4 Forms of corporate environmental practices ...................................................... 16 2.2 Industrial Ecology ..................................................................................................... 24 2.3 Environmental Related Regulatory and Policy Framework on Industrial Activities 26 2.4 Plastic Waste in Ghana.............................................................................................. 28 2.5 Industrial Ecology and Sustainable Development Goals .......................................... 30 University of Ghana http://ugspace.ug.edu.gh v 2.6 Theoretical Frameworks Underpinning the Study .................................................... 33 2.6.1 Institutional Theory ............................................................................................ 33 2.6.2 Natural Resource-Based Theory ........................................................................ 35 2.7 Conceptual Framework of Corporate Environmental Practices of Plastic Producing Enterprises Towards Industrial Ecology And Plastic Waste Reduction In Relation To SDG 12 ............................................................................................................................ 39 CHAPTER THREE ............................................................................................................. 42 METHODOLOGY .............................................................................................................. 42 3.1 Description of the Study Area ................................................................................... 42 3.2 Sampling Procedure .................................................................................................. 44 3.3 Description of Sample ............................................................................................... 46 3.4 Instrument of Study ................................................................................................... 46 3.5 Ethical Consideration ................................................................................................ 47 3.6 Data Collection Methods .......................................................................................... 48 3.7 Data Analysis Procedure ........................................................................................... 48 3.8 Limitations of the Study and Measures to Mitigate Them ........................................ 51 CHAPTER FOUR ............................................................................................................... 52 RESULTS ........................................................................................................................... 52 4.1 Demographic Analysis of Sample Population .......................................................... 52 4.2 Environmental Practices among Plastic Producing Enterprises................................ 57 4.2.1 Enterprise practices on material efficiency ........................................................ 57 4.2.2 Possession of environmental policy and EMS implementation ......................... 61 4.2.3 Practices on energy efficiency ........................................................................... 64 4.3 Regulatory Compliance of Enterprises ..................................................................... 65 4.4 Perception of Plastic Producing Enterprises on the Influence of Activisms around Plastic Pollution on their Activities. ............................................................................... 68 University of Ghana http://ugspace.ug.edu.gh vi 4.5 Opportunities and Challenges of Using Industrial Ecology to Achieve Sustainable Plastic Production And Consumption in Relation to Sustainable Development Goal 12 (Responsible Production and Consumption). .................................................................. 73 4.5.1 SDG 12 indicator on National Policy ................................................................ 73 4.5.2 Material Efficiency............................................................................................. 74 4.5.3 Recycling............................................................................................................ 77 4.5.4 Sustainability Reporting ..................................................................................... 77 4.5.5 Education and Awareness. ................................................................................. 78 CHAPTER FIVE ................................................................................................................. 84 DISCUSSION ..................................................................................................................... 84 5.1 Demographic Characteristics of Sample Population................................................. 84 5.2 Perception of Respondents on Industrial Ecology. ................................................... 84 5.3 Implications of Enterprise-Level Environmental Practices in the Plastic Industry .. 85 5.4 Implications of Regulatory Compliance of Enterprises. ........................................... 89 5.5 Implications of Perception of Plastic Producing Enterprises on the Influence of Their Strategies by Social Activism against Plastic Pollution .................................................. 90 5.6 Implications of Identified Opportunities and Challenges of Using Industrial Ecology to Achieve Sustainable Plastic Production and Consumption in Relation to Sustainable Development Goal 12 (Responsible Production And Consumption). ............................ 91 5.7 Theoretical Implications of the Study. ...................................................................... 92 CHAPTER SIX ................................................................................................................... 95 SUMMARY OF KEY FINDINGS, CONCLUSION AND RECOMMENDATIONS ...... 95 6.1 Summary of Key Findings ........................................................................................ 95 6.2 Conclusion ................................................................................................................ 96 6.3 Recommendations ..................................................................................................... 97 REFERENCES .................................................................................................................... 98 APPENDICES .................................................................................................................. 109 Appendix 1: Respondents that have Heard of Industrial Ecology ................................ 109 University of Ghana http://ugspace.ug.edu.gh vii Appendix 2: Respondents’ consideration biodegradable material as an environmentally viable alternative to current non-biodegradable input materials. .................................. 109 Appendix 3: Enterprises Willingness to pay for by-products ....................................... 109 Appendix 4: Sample of Questionnaire .......................................................................... 110 University of Ghana http://ugspace.ug.edu.gh viii LIST OF FIGURES Figure 1: The element of industrial ecology seen as operating at different levels ......... 2 Figure 2: Conceptual framework showing the motivation and benefits of corporate environmental practices of plastic manufacturing enterprises towards industrial ecology and plastic waste reduction in relation to SDG 12 ........................................... 40 Figure 3: Map of Greater Accra Region showing Accra Metropolis and Tema Metropolis .......................................................................................................................... 42 Figure 4 Number of Enterprises and their Size.............................................................. 53 Figure 5: Enterprises size by location ............................................................................. 54 Figure 6 : Respondents understanding of industrial ecology. ....................................... 56 Figure 7: Source of input material .................................................................................. 58 Figure 8: Reasons for recycling plastic waste ................................................................. 59 Figure 9: Place of recycling .............................................................................................. 60 Figure 10: Environmental issues considered in product design by the Enterprises. .. 61 Figure 11: Factors Considered When Adopting a New Technology. ........................... 64 Figure 12: Mean of Effects of Environmental Concerns on Enterprises by Location. ............................................................................................................................................. 72 Figure 13: Mean perception of Enterprises on the influence of activism on plastic pollution on their operation by Location and in general ............................................... 73 Figure 14: Measures put in place to ensure judicious use of input materials ............. 75 University of Ghana http://ugspace.ug.edu.gh ix LIST OF TABLES Table 1: Sample size based on desired accuracy with confidence level of 95%. ......... 45 Table 2: Categorisation of enterprise size by number of employees based on Poku et al., (2015) ............................................................................................................................ 46 Table 3: Education and Age Characteristics of Respondents ....................................... 52 Table 4: Cross Tabulation between Position of Respondents and their Involvement or not in Key Decision Making ............................................................................................. 52 Table 5: Cross Tabulation between Enterprise Size and Type of Plastic Products they produce ............................................................................................................................... 55 Table 6 : Respondents that have Heard of Industrial Ecology and their Engagement or Not in IE Practices ........................................................................................................ 56 Table 7: Enterprise Size and their knowledge or not of IE ........................................... 57 Table 8: Source Of Input Material and Use of By-Product From Other Enterprises or not ....................................................................................................................................... 59 Table 9: Enterprises` size and their adoption or not adopting an EMS ...................... 62 Table 10: Adopting or not adopting EMS and reasons by Enterprises sampled ........ 62 Table 11: Enterprise size and their reason for adopting or not adopting an EMS ..... 63 Table 12: Acquiring of international certification (ISO) by enterprises based on their sizes ..................................................................................................................................... 63 Table 13: Measures put in place to ensure energy efficiency ........................................ 65 Table 14: Correlations matrix of compliance with environmental regulation and some environmental practices.................................................................................................... 66 Table 15: Reason for having an environmental policy statement................................. 68 Table 16: Descriptive Statistics of the perception of enterprises on the effects of activism on plastic pollution on their activities. ............................................................. 70 University of Ghana http://ugspace.ug.edu.gh x Table 17: Respondents who understand or do not the details of NPMP ..................... 74 Table 18: Identification of useful waste/by-product from other enterprises or not and whether enterprises were willing to pay for or not pay for waste/by-product ............ 76 Table 19: Cross tabulation between enterprises that have identified useful waste/by- product from other enterprises and those already engaged in the use by-product from other enterprises ................................................................................................................ 76 Table 20: Summary table of achievements, opportunities and challenges of Industrial Ecology in Relation To Selected SDG Indicators ........................................................... 83 Table 21: Summary of key findings to specific objectives ............................................. 95 University of Ghana http://ugspace.ug.edu.gh xi LIST OF ABBREVIATIONS AMA Accra Metropolitan Assembly C2C Cradle To Cradle CEP Corporate Environmental practices CER Corporate Environmental Responsibility ECBAS University of Ghana Ethics Committee of College Of Basic And Applied Sciences EMAS Eco-Management and Audit Scheme EMS Environmental Management System EPA Environmental Protection Agency GSS Ghana Statistical Service IESS Institute for Environment and Sanitation Studies LCA Lifecycle Assessment MESTI Ministry of Environment, Science Technology and Innovation. MMDAs Metropolitan, Municipal and District Assemblies NADMO National Disaster Management Organisation NPMP National Plastic Management Policy PDCA Plan, Do, Check, Act PET Polyethylene Terephthalate SDGs Sustainable Development Goals SMEs Small and Medium Enterprises SPSS Statistical Package for Social Sciences USEPA United States Environmental Protection Agency University of Ghana http://ugspace.ug.edu.gh xii ABSTRACT The purpose of this study is to assess corporate environmental practices being implemented by plastic producing enterprises in Accra, Ghana. The study explores existing environmental practices at the enterprise level, examines the level of compliance with environmental regulations by plastic producing enterprises, examines perception of plastic producing enterprises on the influence of growing activism against plastic pollution from the public on their strategies and the opportunities and challenges of using industrial ecology to achieve sustainable plastic production and consumption in relation to sustainable development goal 12 (responsible production and consumption). The study employed methodological triangulation on data obtained from 18 plastic-producing enterprises within the Accra and Tema Metropolis in Ghana through questionnairre survey and informal interviews. Data was analysed quantitatively and supported with qualitative data. It was revealed that enterprises engage in environmental practices such as recycling, adoption of sustainable technology and environmental management systems (EMS), use of recycled materials, and energy efficiency. Compliance with environmental regulation was found to be high amongst enterprises with 17 of 18 enterprises having met regulatory requirements and therefore certified by the regulatory body (EPA). Further, enterprises did not perceive reduced sales and profits over the last 10 years though raw materials were perceived to have become more expensive due to scarcity of resources from the natural environment. Firms also professed to putting in measures to improve their reputation in the face of the public as a result of public activisms on plastic pollution. Additionally, existing national plastic management policy (NPMP), recycling, sustainability reporting and education and awareness provides opportunity for industrial ecology to be used to achieve sustainable plastic waste management, though some challenges in these areas persist. Ecosystem principles of roundput, was being implemented by majority of enterprises through engagement in recycling and locality principle was being implemented by a few enterprises. Situating the study within the institutional theory, enterprises had normative, regulatory and cognitive reasons for engaging in environmental practices. Whereas based on the natural resource-based view (NRBV), enterprises derived competitive advantage in the form of improved efficiency and reduced cost of production, differentiation benefit and access to international markets, which were achieved through the product stewardship, pollution prevention and sustainable development practices being accomplished by enterprises. University of Ghana http://ugspace.ug.edu.gh 1 CHAPTER ONE INTRODUCTION 1.1 Background As countries develop and industrialize, there is dependence on the environment for resources for industrial activities, which also come along with waste and these have adverse impacts on the environment. Evidence of resource depletion and environmental change is unequivocal. However, long-established management objectives of industries have concentrated on economic benefits; viewing environmental and social issues as having less significant financial benefit (Pereira et al. 2013). Industrial activities have had both positive and negative impacts, bringing with it economic growth, as well as environmental destruction and social injustice (The World Bank Group et al, 2017; Sullivan et al. 2018). Conventional position of businesses regarding resource availability and waste disposal as inexhaustible has shifted to market approval as necessity for survival. Industrial businesses, in the need to safeguard their businesses and to gain positive corporate image from the growing global environmental movements seeking sustainable development have developed sustainability practices to address environmental concerns. As such, sustainability practices such as industrial symbiosis, life cycle assessment, cradle to cradle and sustainability reporting have been adopted and implemented by some companies worldwide for profit, to boost their corporate image and to achieve societal confidence (Tilling & Tilt, 2010). Industrial ecology; a module of eco-industrial parks is an approach that is being adopted to solve issues of environmental deterioration resulting from industrial activities. Graedel & Allenby (2010) describes industrial ecology as “an approach to the design of industrial products and processes that evaluates such activities through the dual perspectives of product competitiveness and environmental interactions”. Industrial ecology aims at University of Ghana http://ugspace.ug.edu.gh 2 achieving both economic and environmental benefits, and can be operated at three levels; firm-level, between firm level and regional/global level as described by Graedel and Lifset (2002) in Figure 1. From figure 1 sustainability can be practiced through industrial ecology, which can be manifested at 3 levels; firm level, between firm level and at the regional/global level. According to Graedel and Lifset (2002), industrial ecologists seek to avoid and/or minimize environmental impacts by incorporating environmental aspects into product and process design, usually at the firm level. Pollution prevention, green accounting and eco-efficiency (material and energy efficiency) are industrial ecology aspects practiced at the firm level. Industrial ecology can also be manifested between firm level through eco-industrial parks Sustainability Industrial ecology Firm level • Design for environment • Pollution prevention • Eco-efficiency • Green accounting Between firms • Eco-industrial parks (industrial symbiosis) • Product life cycle • Industrial sector initiatives Regional/Global • Budgets and cycle • Material and energy flow studies (MFA) • Dematerialization and Decarbonisation Figure 1: The element of industrial ecology seen as operating at different levels Source: Graedel and Lifset (2002) University of Ghana http://ugspace.ug.edu.gh 3 where industries located in close proximity to one another engage in material and energy exchanges termed as industrial symbiosis (Chertow et al. 2004). This is exemplified in the world-famous Kalundborg design; Denmark, where existing co-located industries developed interdependence and common belief (Valentine, 2016), leading to technological, economic and environmental success offering great relevance to the world (Gulipac, 2016). Industrial sector initiatives such as managerial and policy settings are also tenets of industrial ecology practiced between firms. Budgets and cycle, material and energy flow studies (MFA), dematerialization and decarbonisation are elements of industrial ecology manifested at the regional /global level. Mimicking nature, industrial ecology seeks to close the loop by reducing waste and using waste as a resource. It avoids a linear system where there is dependence on natural resources and waste produced are disposed and not recycled or re-used. As such through industrial ecology, waste and carbon footprint, as well demand on natural resources are reduced. The reuse of by-products by industries reduces the amount of materials that goes to waste, as other industries serve as sink that absorb these by-products. This reduces the amount of materials that end up in the environment and their subsequent environmental impacts such as plastic pollution. Global plastics production has quadrupled over the past four decades (Zheng & Sangwon 2019) and is expected to grow by 30% in the next five (5) years (Charles et al., 2021). Plastic production comes with it plastic waste, liquid waste, chemical waste and emission of greenhouse gases (GHGs). The growing demand for plastics due the convenience in its use has created a plastic pollution problem raising global concerns, hence, there is the need to stream it back into production to reduce its presence in the environment and its impacts. In Africa, sustainability practices such as industrial ecology has not gained much prominence, as the citizenry are now becoming more cognisant of the idea of University of Ghana http://ugspace.ug.edu.gh 4 environmentalism, though certain industrial ecology principles are being implemented informally; since exchange of materials among industries has been in existence for long (Desrochers, 2001). In Ghana, industrial ecology is still an emerging field, though there are few informal exchanges of materials among industries, this is not fully developed to close the loop (Nukpezah et al., 2019). The industrial areas in Accra and Tema are characterized by industries located close to one another, however the degree of exchanges at the firm and between firms have not been documented. It is therefore necessary to assess the firm-level industrial ecology and corporate environmental practices as a first step towards a deeper understanding of the adoption of industrial ecology among industries in Ghana. This will provide opportunity for the country to identify the potential for solving environmental issues it is being confronted with such as plastic pollution through industrial symbiosis; a component of industrial ecology The plastic manufacturing industry in Ghana is characterised by enterprises producing an array of plastic products including packaging, single –use and multiple use plastic products. Injection moulding and blowing technologies are usually used in production with input materials usually imported and few enterprises using recycled materials. In Accra, composition of plastic waste in solid waste increased from According to Fobil (2000), the constitution of plastic waste in solid waste in Ghana increased from 1.4% in 1979 to 5% in 1996/97 to 8% in 1999/2000, reaching about 501,875 tons of plastic waste generated in the country annually (Kortei & Quansah, 2016) Accra is an industrious city consisting of many plastic producing enterprises, whose adoption of industrial ecology principles may contribute to addressing the plastic waste problem the country currently faces; firstly by re-using/recycling plastic waste realised at University of Ghana http://ugspace.ug.edu.gh 5 the firm and putting in place measures to accommodate more plastic waste realised by industries in close proximity and then at the post-consumer level. The production and consumption of plastics come with it plastic waste both at the industrial level and the post- consumer level which may be recycled or re-used for production. A sustainable approach to tackling plastic waste is necessary in order to safeguard the ability of future generations to be able to have access to this illustrious material. The 12th goal, of the Sustainable Development Goals (SDGs), that is sustainable production and consumption provides prospects to achieving other goals such as climate action (SDG 13), decent work and economic growth (SDG 8), affordable and clean energy (SDG 7), industry, innovation and infrastructure (SDG 9) and no poverty (SDG 1). 1.2 Problem Statement Industry related environmental policy in Ghana can be said to be inadequate. Historically, Ghana’s industrial strategies have focussed more on economic benefits than social and environmental benefits. The pre-economic recovery programme between 1965 and 1983 concentrated on solving balance of payment deficits, while Industrial policies between 1984 and 2000 focussed on privatizing the industrial sector and after the 2000s industrial policies focused on job creation and poverty reduction (Ackah et al., 2016). The development of industrial parks in Ghana focused on privatising the manufacturing sector as such most of the industries are private owned micro and small firms with their own internal processes and little or no interactions amongst one another. As these industries focus on economic benefits, there is the possibility of the incidence of non-compliance to environmental regulations which is affecting Ghana’s ability to meet the sustainable development goal concerned with responsible production (SDG 12). The study will therefore find out whether plastic produing enterprises comply with environmental regulations and how their activities can help meet SDG 12. University of Ghana http://ugspace.ug.edu.gh 6 Plastic littering has been a major cause of concern for public sanitation situation in the country. Plastics are largely non-biodegradable hence, its presence in the environment has impacts on the physical environment; both marine and terrestrial. It is common to see drains being filled with plastic. It is estimated that about 4 to 12 million metric tons (Mt) of plastic waste entered the marine environment in 2010 alone (Jambeck et al., 2015). The transport of plastics into the ocean poses threats to marine ecosystem such as ingestion of plastics and suffocation to marine animals. Improper disposal of plastic waste such as burning causes the release of dioxins and carbons which contribute to the global warming and climate change (Asante & Amuakwa-Mensah, 2015). Irresponsible production and consumption of plastic materials therefore is a bane to achieving proper sanitation, cleaner environment and sustainability as such efforts need to be put in place to solve, and solutions can be started from its source; plastic industry. 1.4 Justification of Study Industries tend to make lots of strides in the economic and social aspects of sustainability without giving much substance to the environmental aspect of sustainability. It is evidenced that many companies compete with one another in terms of profitability and involvement in corporate social responsibilities without much recourse to environmentalism. Some forms of environmental practices do take place within industries, however, not much studies have been done on it especially in the plastic industry. This study will therefore bring to fore existing corporate environmental practices amongst plastic producing enterprises in Accra, Ghana, and how they can be sustainable. Although some studies have been done to establish the benefits of corporate environmental practices especially in developed countries, studies on corporate environmental practices in University of Ghana http://ugspace.ug.edu.gh 7 Ghana is inadequate, more so, are not based on industrial ecology which this study seeks to contribute to. The study is also necessary as it seeks to explore industrial ecology as a viable solution to the plastic waste menace within the country as other options, which focus on solving plastic pollution at end of life have not achieved the desired results; while the entire citizenry are being affected by the plastic waste problem. The study will therefore look at how plastic waste problem in the country can be solved beginning at the source; by identifying the role of the plastic manufacturing industry. With increasing environmental concerns and the need to achieve the SDGs, understanding the need for corporate environmental practices towards industrial ecology especially in Ghana will be beneficial to Ghana’s ability to attain the SDG12 targets and its rippling effects, as it seeks to explore industrial ecology as a tool for sustainable development. This goal also makes it possible to provide a sustainable approach to the production and consumption of plastics. The study will therefore look at the opportunities and challenges of industrial ecology towards sustainable plastic production in relation to SDG 12 Also the data collected through this research will have the potential to inform policy formulation and implementation, and will have the potential to support Ghana’s policy on circular plastic economy. 1.3 Research Objectives Main Objective • To examine corporate environmental practices that align with industrial ecology principles in the Greater Accra region of Ghana University of Ghana http://ugspace.ug.edu.gh 8 Specific Objectives 1. To determine firm-level environmental practices among plastic producing enterprises. 2. To assess level of compliance to environmental regulations by plastic producing enterprises 3. To examine the perception of plastic producing enterprises on the influence of activisms around plastic pollution on their activities. 4. To identify opportunities and challenges of using industrial ecology to achieve sustainable plastic production and consumption in relation to sustainable development goal 12 (responsible production and consumption). University of Ghana http://ugspace.ug.edu.gh 9 CHAPTER TWO LITERATURE REVIEW 2.1 Corporate Environmental Practices There is no consensus regarding a standard label for pro-environmental practices implemented amongst industries. While Sroufe et al., (2001) have labelled pro- environmental practices as environmental management practices (EMP), Banerjee (2002), mentions corporate environmentalism and Sindhi and Niraj (2012) have called it corporate environmental responsibility (CER). To this end, there is no standard definition for corporate environmental practices. While Banerjee (2002) defines “corporate environmentalism as the organization-wide recognition of the legitimacy and importance of the biophysical environment in the formulation of organizational strategy, and the integration of environmental issues into the strategic planning process”, Sindhi & Niraj (2012) define “corporate environmental responsibility as the precautions and policies organizations adopt to reduce and prevent hazards to the environment along with stakeholder participation to induce transparency”. These authors therefore recognise the importance of the environment to internal operations and externally through stakeholder involvement. Corporate environmental practices, as used by Kim (2018), with the fundamental idea that to improve both environmental and economic performance has gained popularity as businesses are putting in efforts to gain societal confidence. The business community came under immense pressure during the 1960s, when Rachael Carson published the book silent springs. This sparked interest in the academic field resulting in publications such as “Limits to Growth” and “The Global Report 2000”; which indicated the need for environmental action by industries, (Tibbs, 1992). This awakened environmental consciousness among industries though there were opposing views expressed in publications such as “A University of Ghana http://ugspace.ug.edu.gh 10 Resourceful Earth (1984)” which contested the finiteness of the earth’s resources. Banerjee (2002) opines that, amplified awareness of environmental issues by governments, policy makers, advocacy groups, business firms, and the public all over the world, over the last few decades has resulted in the development of policies, agreements and conventions to address these environmental concerns hence the idea of sustainable development. Long-established management objectives of industries have concentrated on economic benefits; viewing environmental and social issues as having less significant financial benefit (Pereira et al. 2013). Sullivan et al., (2018) observes that firms have traditionally regarded financial stance as superior as opposed to sustainability practices. Ingley (2008) relates that there has been heightened concerns about the environmental and social consequences of business activities leading to the demand for their sustainability information. Also, Deegan et al. (2002), recognises the importance of societal acceptability to the survival of any organisation. In a similar vein, Tilling & Tilt (2010) put forward that sustainability reporting is basically to achieve societal confidence. Hence industrial firms in their need to gain social legitimacy, have adopted environmental practices although the motivation to adopting environmental practices have differed; some are only reactive while others are proactive. 2.1.1 Reactive and proactive corporate environmental practices. Baneerjee (2001) notes that environmental practices among firms is said to be reactive when they simply abide by existing regulations, however, if firms go further to introduce environmental initiative then they are said to be proactive. Firms that are reactive tend to restrict themselves to regulatory compliance such as pollution and waste reduction (Macedo, 2016). While being proactive goes beyond compliance it serves as an opportunity to minimize regulatory compliance costs, as well as respond to stakeholders, enhance revenues University of Ghana http://ugspace.ug.edu.gh 11 and improve competitive advantage (Esty and Winston, 2006; Nakao et al., 2007; Berry and Rondinelli, 1998). Firms that are proactive incorporate environmental issues in their overall business strategy and invest in innovation for product design and processes (Walls et al. 2011). According to Berry and Rondinelli, (1998), firms have evolved from being in a stage of crisis by attempting to control damage resulting from their activities, through to being reactive, where they struggled to comply with rapidly changing government environmental regulations, and are now proactive in responding to environmental concerns by to anticipating environmental impacts of their operations, taking measures to address them and finding positive ways of taking advantage of resulting business opportunities. However Macedo (2016), suggests that firms at an early stage were reactive, by being regulation compliant, then evolved to being preventive that is being efficient in the use of resources through reuse and recycling and are now proactive; by making environmental issues inclusive in the firms` business strategy. Adding that firms may go beyond the firm to involve actors within their supply chain in environmental issues by adopting processes such as life-cycle assessment, Eco design and industrial symbiosis. Therefore firms that advance from being reactive to being proactive are able to meet regulatory requirement and are presented with opportunities to improve their reputation and make profit. The use of recycled for example, presents an opportunity for firms to reduce the cost of their input materials as recycled materials comes at a cheaper cost than raw virgin materials. The consequent result being cost advantage or improved revenue. 2.1.2 Benefits of corporate environmental practices Margolis and Walsh, (2003), Orlitzky et al., (2003) and Albertini, (2013) found environmental performance and financial performance positively related. Further Albertini, (2013) used a minimal confidence interval (0.08-0.09) in his study, hence showing a strong relationship between corporate environmental practices and financial performance. Barnett University of Ghana http://ugspace.ug.edu.gh 12 (2007), also finds that there are financial benefits of engaging in environmental practices which offset the costs involved in the long run. Claver et al. (2007) also established a positive relationship between environmental strategy and competitive advantage. Competitive advantage can manifest in two forms; cost advantage and differentiation advantage (Hart, 1995). Hart (1995) further states that cost advantage arise from efficiency in production while differentiation advantage results from product design and developing environmentally friendly products. Differentiation advantage creates the potential to increase product selling prices which results in higher revenue (Reinhardt, 1999 cited in Albertini, 2013), and additional sales received due to a good environmental reputation (Sindhi & Kumar 2012). Morales-Raya et al., (2019) concludes that both low and high external visibility such as the development of beneficial products and services, and environmental management systems, contributes to favourable environmental reputation, which has been found to be beneficial in terms of increased sales and revenue. Stafford (2007) states that self-regulatory firms in terms of environmental management were able to reduce their attention from regulation enforcement agencies, thereby reducing environmental and legal risks which could come as costs to the firm. Therefore, the adoption of corporate environmental practices by firms helps firms to improve their reputation and revenue by differentiating them from other firms that do not adopt corporate environmental practices, and also gives them a competitive advantage through reduced production costs and increased product selling prices. These benefits further act as a motivating force for organizations to pursue pro-environmental strategies. Thus, it becomes a two-way process. University of Ghana http://ugspace.ug.edu.gh 13 2.1.3 Motivation and barriers of corporate environmental practices Industries have different motivation for adopting environmental practices. Studies have found several factors that influence the adoption of corporate environmental practices. The most common being regulatory pressures, market or stakeholder pressures, competitive pressure, self-regulation, and organisational structure. Sindhi & Kumar (2012) categorises these factors into internal factors and external factors; classifying self-regulation, market pressures, stakeholder pressure and regulatory framework as external factors and internal factors as the features of the organisation. Bansal and Roth (2000) identify competitive advantage, legitimation, and ecological responsibility as the three main motivation factors for the adoption of environmental practices. The motivation may stem from the desire to increase competitive advantage and its consequent profitability, or the desire to improve their reputation and be noticed as legitimate or the need to indeed protect the environment (Walker et. al., 2014). While some industries adopt environmental practices due to the benefits they derive from them, others adopt corporate environmental practices due to their inclination towards environmental protection. Walker et al., (2014) found a positive relationship between environmental proactivity and environmental responsibility. Halkos and Evangelinos (2002), for example, purport that firms that implement environmental management system (EMS) had managers who were abreast with the benefits and effects of adopting and not adopting it. This goes to suggest that firms whose management do not know the importance of EMS will be a barrier to its implementation. Lee et al., (2018) inter alia, identifies sufficient organizational capabilities in terms of asset and human resources relevant for the implementation of environmental practices Walker et al., (2014) also found a positive relationship between environmental proactivity and regulatory compliance which is consistent to the findings of Sharma and Henriques, University of Ghana http://ugspace.ug.edu.gh 14 (2005) and Jones (2010). This is accurate for developed countries which have well established regulatory and enforcement regimes; unlike developing countries where enforcement of mechanisms are poor (Nwabuzor 2005). Costs of compliance could be a barrier to implementing corporate environmental practices (CEP); especially for firms with little investment capacity (Sindhi & Kumar 2012), nonetheless, positive incentives such as tax breaks and investment subsidy could prompt greater compliance (Priyadarshini and Gupta, 2003). Studies have found different relationships between competitive advantage and environmental practices. Ervin et al., (2013) finds a significant positive relationship between corporate environmental practices and competitive advantage, similar to Claver et al., (2007) and Hart (1995) who also suggested that the enforcement of corporate environmental practices resulted in competitive advantage. Walker et al., (2014) on the other hand, found a non-significant correlation between competitive advantage and environmental proactivity. This notwithstanding, many business leaders are appreciating the importance of environmental responsibility to their international competitive advantage hence are being proactive by integrating environmental concerns into their corporate strategy (Berry & Rondinelli, 1998). Freeman (1984) defines stakeholders as "any group or individual who can affect or is affected by the achievement of the organization's objectives". Ye and Zhang (2011) and Li and Zhang (2010) conjecture that stakeholder pressures are rife in developed economies than in developing markets, where the idea environmentalism is still daunting. In their study Walker et al., (2014) also establish that the role of stakeholder pressure in driving corporate environmental practices was not significant. This contrasts the position of Lee et al., (2018) that stakeholder pressures from governmental and non-governmental organisations have significant impact in the adoption of corporate environmental practices University of Ghana http://ugspace.ug.edu.gh 15 by firms. Remarkably, Walker et al., (2014) conducted their study in China; a developing country while Lee et al., (2018) conducted their study in South Korea; a developed country. This goes to support the position of Ye and Zhang (2011) and Li and Zhang (2010) that stakeholder pressures are stronger in developed economies than in developing economies. The adoption of environmental practices by companies due to stakeholder pressure could be to gain legitimacy from stakeholders as mentioned by Bansal and Roth (2000) that legitimacy is a motivation factor in the adoption of corporate environmental practices. The characteristics of an organisation can also be a motivation or a barrier to the adoption of corporate environmental practices. A firm`s features such as size, internal revenue, position within the value chain, difficulties in modifying non-environmentally friendly practices, a lack of environmental awareness among organizational member and age (Sindhi and Kumar, 2012; Ervin et al., 2013 ; Delgado-Ceballos et al., 2012) can enhance or bar the adoption of corporate environmental practices. For example in their study of antecedents of adopting corporate environmental responsibility and green practices amongst logistics companies in South Korea, Lee et al., (2018) concluded that the availability of internal organisational resources and the quality of human resources facilitated the adoption of corporate environmental practices and green practices amongst logistics companies in South Korea. Therefore the lack of financial capital could be a barrier to the adoption of corporate environmental practices especially because they require upfront payments (Berry and Rondinelli, 1998; Ervin et al., 2013) which is often lacking amongst small businesses who would instead invest in their primary business activities than environmental practices. In essence, motivation to adopt environmental practices differ by organisations. To gain reward or avoid punishment for regulatory compliance is a motivating factor for the adoption of corporate environmental practices. Also some industries adopt environmental practices due to the benefits they derive from them, while others adopt corporate University of Ghana http://ugspace.ug.edu.gh 16 environmental practices due to their disposition towards environmental protection. However, financial constraints, inadequate knowledge of management on environmental practices, amongst others can restrain the adoption of environmental practices by firms. 2.1.4 Forms of corporate environmental practices Firms manifest corporate environmental practices in many ways, from material efficiency to energy efficiency. To operationalize the definition of corporate environmental practices, Chrun, Dolˇ and Prakash (2016), identifies five (5) mandatory principles for which a firm can be referred to as “green”. These principles are outlined as follows. • Compliance with Legal/regulatory requirement, • environmental management system (EMS), • Proactive in the use of environmental strategy rather than end-of-pipe strategy. • Conduct life cycle assessment • Material and energy efficiency through use of renewable energy and biodegradable material, recycle, as well as reduce waste emission of greenhouse gases (GHG) and toxic substances throughout their production process and management of waste in an environmentally friendly manner. Compliance with legal/regulatory requirement Compliance with legal regulatory requirement as an environmental practice is recognised by Chrun, Dolˇ and Prakash (2016) as an environmental practice that requires that firms meet all environmental regulations and have no pending environmental lawsuit. However, environmental regulation can be at the corporate level or at the governmental level. Karassin and Bar-Haim (2019) concludes that generally, regulation positively influences corporate environmental performance. Though corporative regulator had the strongest positive effect on corporate environmental practices (CEP) in their study, coercive regulatory practices University of Ghana http://ugspace.ug.edu.gh 17 reduce the internal motivation for compliance and does not encourage environmental proactivity, yet the firms may be incentivised by the avoidance of punitive measures. Walker et al., (2008) notes that, fines may not be punitive enough for SMEs as they may be less expensive than the cost to implement and maintain environmental practices and therefore suggests a more collaborative approach such as tax incentives for small and medium enterprise participation in environmental practices. In their study on corporate environmental management initiatives in Ghana, Nukpezah, and odoom (2017) found that enterprises engage in pollution control and resource conservation, through conservation and efficiency of energy use, reuse and recycling of process water, meeting EPA standards, emission /effluent control and monitoring, waste separation at source, replacement of obsolete machinery and use of alternate source of technology. Nukpezah, and odoom (2017) further found that enterprises were less committed to making voluntary investments in pollution control than meeting regulatory requirements. In essence regulatory compliance can be said to be an environmental practice if it influences overall environmental performance, but its usefulness can be optimised through collaboration between firms and regulatory institutions as punishment may retard or reinforce non- compliance. Regulatory compliance can be a motivating factor in the adoption of environmental practices and result in the benefit of reduced attention from regulation enforcement agencies, thereby reducing environmental and legal risk. Though a coercive factor, compliance with regulations can be a self-motivating environmental practice that can improve reputation and revenue of firms as firms avoid environmental and legal costs when they comply with regulatory requirement. University of Ghana http://ugspace.ug.edu.gh 18 2.1.4.1 Environmental management system (EMS) According to the USEPA (2021), an “environmental management systems is a set of processes and practices that enable an organisation to reduce its environmental impacts and increase its operating efficiency". Walker et al (2008) reports that well-known environmental management systems such as ISO 14001 and Eco-Management and Audit Scheme (EMAS) are typically designed for large business not small business as the implementation and maintenance of these systems are expensive. Citing a European study, Walker et al., (2008) notes that the limitation to the implementation and maintenance of EMS amongst small and medium enterprises (SMEs) was more of a problem of inadequate human resource rather than financial constraint. The implementation of EMS is done in stages of a phase of planning, doing, checking, and acting, usually known as the PDCA cycle. Having an environmental management system (EMS) is therefore an environmental practice industry can monitor and resolve environmental impacts of their activities. However, EMS are largely designed for large industries and costly making it challenging for smaller businesses to adopt. 2.1.4.2 Proactive in the use of environmental strategy rather than end-of-pipe strategy. In describing the evolution of environmental strategies, Macedo (2016) operationalizes reactive, preventive and proactive strategies using certain environmental practices. Similar to, Chrun, Dolˇ and Prakash (2016), Macedo (2016) describes compliance to environmental regulation, avoiding end-of-pipe technology, use of lifecycle assessment, energy and material efficiency as environmental practices and categorises them into reactive, preventive and proactive strategies as they evolve, but maintains that the evolution of environmental University of Ghana http://ugspace.ug.edu.gh 19 strategies may not be consecutive but certain practices of one strategy may be employed simultaneously with practices of other strategies. Proactivity in the use of environmental strategy therefore involves envisaging the environmental impacts of business operations, addressing them and going further to take advantage of the problem (Berry and Rondinelli, 1998). For example, enterprises can solve waste problem by recycling which provides an added advantage of reusing the waste as a resource. 2.1.4.3 Life cycle assessment (LCA)/ Cradle to Cradle (C2C) Life Cycle Assessment “involves the evaluation of the environmental impacts of a product system through all stages of its life cycle. It is about going beyond the traditional focus on production site and manufacturing processes, in order to include the environmental, social, and economic impact of a product over its entire life cycle” (Koroneos et al., 2013). Hertwich (2005) maintains that LCA is important for sustainable consumption and production. Life cycle assessment starts from extraction of raw materials, manufacturing, transportation and distribution, product use and end of life. The end of life of a product can either be disposal or recycling/reuse which gives rise to the terms “cradle to grave” and “cradle to cradle”. Koroneos et al., (2013) relates that the “terms of “life cycle analysis”, “life cycle approach”, “cradle to grave analysis” or “Eco balance”, stand for a rapidly emerging family of tools and techniques designed to help in environmental management and, longer term, in sustainable development”. Cradle to cradle manufacturing takes the whole lifecycle of an item into account, including source and end-of-life disposal, emphasizing reintegration of products into the manufacturing processes. It suggests that industry must protect and enrich ecosystems and nature’s biological metabolism. Describing it as the next industrial revolution, McDonough University of Ghana http://ugspace.ug.edu.gh 20 & Braungart (2002) and Braungart et al., (2007) suggest that industry needs a new model that effectively and flawlessly addresses issues associated with over-consumption and waste. Aiming at zero-emission and zero environmental impacts, and guided by three principles, the concept helps to manage waste in order to close the loop by using waste as a resource. C2C advocates total biological design or total technical design so that waste can either be total biological nutrients that can be fed back into ecological systems, (Bjørn & Strandesen 2011), or technical products that are incorporated into industrial or mechanical recycling. Hence, to achieve an effective closed loop, biological nutrients and technical nutrients should not be mixed when designing a product so as to ensure total recycling; biologically or technically (Bjørn & Strandesen, 2011). Cradle to cradle design also advocates the use of renewable energy. Since mechanical recycling processes consume lots of energy, the use of renewable energies such as solar and wind is encouraged as they have less environmental impacts. The third principle of cradle to cradle; the celebration of diversity considers how products are made and also how they are used over time, as such there is the need to design products using local materials and in accordance to local conditions and diversifying the energy production. Therefore Life Cycle Assessment (LCA) and cradle to cradle are environmental practices industries use to assess the environmental impacts of their products at the end of its life so as to find measures to tackle these impacts. 2.1.4.5 Biodegradable materials and recycling The use of biodegradable materials and recycling can be considered as environmental practices. In relation to plastics, Akinlabi et al (2018) defines biodegradable plastics as “plastics that degrade into methane (CH4), carbon dioxide (CO2), water (H2O), and biomass University of Ghana http://ugspace.ug.edu.gh 21 in a defined timescale and in defined environments – soil and marine environments, anaerobic digestion, and composting – through biological action”. Clark (2015) maintains that landfills are and will continue to provide the main avenue for plastic disposal as such designing it for environment in the form of biodegradable plastics provides a viable option to tackle waste plastic waste, as its by-products of methane can be taken advantage of and used to generate clean energy. Adding that landfills need to be properly managed between a 2-50 year period and biodegradable should also be designed as such to be able to collect by-products of methane within this period. However, Akinlabi et al (2018), notes that landfilling is the least desirable option for plastic disposal, placing Municipal and domestic composting as the most preferred choice for end-of-life disposal. The production and use of biodegradable plastics is however still at its lowest stage but is however growing at rapid rate. Based on their market data, European Bio plastics (2016) projected a 50% increase in the medium term in the amount of bio plastics produced to about 6.1 million tonnes in 2021 from about 4.2 million tonnes in 2016. Clark (2015) suggests that manufacturers whose products usually ends up in landfills at the end of their lifecycles should integrate landfill biodegradable plastics products in their product design. This will provide the maximum environmental benefit upon disposal rather than environmental damage derived from the use of traditional synthetic plastics. Also recycling provides an environmentally friendly option for keeping materials out of landfills. Recycling: an environmental practice that industries can adopt, involves making materials new and putting them back to use (Al-shuaibi, 2014). According to Al-shuaibi (2014), recycling provides environmental benefit in the form of reduction of greenhouse gases which is a positive impact on climate change. Plastic recycling has gained prominence as the most viable option to the management of plastic waste. “In any conversation related to University of Ghana http://ugspace.ug.edu.gh 22 plastics and sustainability, recycling is an inevitable topic” (Clark 2015). Recycling offers the benefit of reducing energy consumption, oil usage and emissions of greenhouse gases associated with production from virgin raw materials. Hopewell et al., (2009) finds that recycling brings a net environmental benefit in terms of reduced energy consumption and landfill disposal. In an LCA study on Polyethylene Terephthalate (PET) bottle (WRAP 2008), it was found that a 100 per cent use of recycled PET instead of 100 per cent use of virgin PET would reduce the full life-cycle emissions to 327 g CO2 per bottle from 446 g CO2. Recycling also provides economic benefits in the form of job creation. Conversely, Clark (2015) asserts that recycling has negative economic and environmental impacts as it is more costly in terms of time, money, and energy than discarding waste into landfills. These resources are spent during collecting and processing recycled goods, educational and marketing costs, and subsidies. Adding that plastics, are more expensive and time consuming to recycle than to produce from raw materials. Clark (2015) further mentions that plastics recycling has by-products containing contaminated wastewater and air emissions which if not managed properly may affect humans health, and can also damage nearby biomes and percolate into groundwater when mixed with rain water as many additives such as colorants, flame retardants, lubricants, and ultraviolet stabilizers are used in processing and manufacturing plastics In addition, D’Ambrières (2019) opines that there are various impediments to the practice of recycling at various stages of a plastic lifecycle as such to achieve a sustainable recycling sector there should be a comprehensive approach to tackling these impediments. Hence all stakeholders from manufacturers that produce plastic products, petrochemical companies that produce raw plastic, retailers, consumers, waste managers, city authorities, governments, regulators and NGOs should be involved. Adding that during various stages University of Ghana http://ugspace.ug.edu.gh 23 of a plastic life cycle; from product design, waste management and consumption of plastic products, there exist barriers to the realisation of recycling. Essentially, firms may practice environmentalism by designing their products for the environment through the use of biodegradable materials for production in order to reduce the presence of synthetic materials in the environment. For example, the production of biodegradable plastics are being encouraged to confront the problem of plastic waste in the environment. Also recycling is an environmental practice that helps to reduce the environmental impacts of production which otherwise would have occurred if virgin input materials are used. This notwithstanding recycling has some challenges. Plastic recycling for example has challenges at its various stages and therefore needs a comprehensive approach to resolve it. 2.1.4.6 Sustainable technology Fu et al., (2018) recognises the adoption of sustainable technology as an environmental practice and further distinguish it as an “effective means to achieve sustainable development”. Fu et al., (2018), finds that, market pressures, price, coercive pressure, technology capability, internal support, adoption experience, certified systems, and cooperation are regarded as vital in the adoption of sustainable technology. Huang et al., (2009) establish that pressure from market stakeholders, shows a positive effect on the sustainable technology adoption degree. Triguero et al., (2015), and Triguero et al., (2013), show that customer demand for green products has a positive effect on sustainable technology adoption, measured by whether the company introduced clean technology or recycling technology. However, Arvanitis and Ley, (2013) found no significant impact of customer demand on the adoption of energy-saving technologies, material/fuel substitution or recycling technologies (Leenders and Chandra, 2013). University of Ghana http://ugspace.ug.edu.gh 24 In essence, plastic producing enterprises may be motivated internally or externally to engage in corporate environmental practices in the forms of compliance with legal/regulatory requirement, adoption of environmental management system (EMS), and ensuring material and energy efficiency. These practices may be reactive or proactive and can lead to certain benefits such as reducing environmental and legal risks which could come as costs to the enterprises, improving their financial performance and offer them competitive advantage. Competitive advantage can come in the form of cost advantage where the use of by-products will reduce cost of production or differentiation advantage where enterprises can sell themselves to the public as caring for the environment. 2.2 Industrial Ecology According to White (1994), “Industrial ecology is the study of the flows of materials and energy in industrial and consumer activities, of the effects of those flows on the environment, and of the influences of economic, political, regulatory, and social factors on the flow, use, and transformation of resources”. Industrial ecology (IE) can also be defined as “an approach to the design of industrial products and processes that evaluates such activities through the dual perspectives of product competitiveness and environmental interactions” (Graedel & Allenby, 2010). Munholfen et al., (2004) enlists five (5) components of industrial ecology as “dematerialisation, industrial metabolism, life cycle assessment, eco-design and eco-industrial parks”. The component of eco-industrial parks brings to fore the idea of industrial symbiosis which is described by Chertow et al. (2004) “as the exchange of material and energy streams among industries in relative proximity to one another”. However, Ehrenfeld (1994) lists seven components of Industrial Ecology as “improving metabolic pathways for materials use and industrial processes, creating loop- closing industrial practices, dematerializing industrial output, systematizing patterns of University of Ghana http://ugspace.ug.edu.gh 25 energy use, balancing industrial input and output to natural ecosystem capacity, aligning policy to conform with long term industrial system evolution and creating new action- coordinating structures, communicative linkages, and information”. Though the components of industrial ecology as described by both authors slightly differ, both emphasize dematerialization and industrial metabolism or closing the loop, thus both look at how industrial processes can mimic nature. Industrial ecology therefore aims at achieving both economic and environmental benefits. National Academy of Engineering (1994) views industrial ecology as the integration of environmental concerns into economic issues. The need for sustainability can therefore be achieved through industrial ecology, which can be operated at three levels; firm-level, between firm and regional/global level as described by Graedel and Lifset (2002) in figure 1. According to Korhonen (2001), industrial ecology can provide a model for which industrial systems can imitate natural ecosystems using four ecosystem principles of roundput, diversity, locality and gradual change. The roundput principle of ecosystems involves the utilisation of residual energy (recycling), which occurs through flows in food chains with the only driver of the system being the input from the (infinite) solar energy. The roundput ecosystem principle can therefore be translated into recycling of waste and energy efficiency or use of use of renewable resources in industrial systems which falls within the components of IE described by Munholfen et al., (2004) and Ehrenfeld (1994) as dematerialisation. Also the principle of diversity involves variety in species and organisms which provides basis of survival of species. This principle when applied to industrial systems by the presence various cooperation systems can expedite symbiotic co-dependence and aid the development of systems where the industrial bodies can use each other’s waste materials University of Ghana http://ugspace.ug.edu.gh 26 and energy. This emphasises industrial symbiosis as described by Chertow et al., (2004) and the industrial metabolism enlisted by Munholfen et al., (2004). The locality principle of ecosystems involves adapting to and interacting with the local environments. This principle when applied to industrial systems will involve the use local renewables and local waste material and energy sources. This can be observed in industrial symbiosis component of industrial ecology where corporation is amongst industries in close proximity. The principle of gradual change can manifest in industrial ecosystem by the gradual development of the system diversity; as seen in how evolution takes place in ecosystems through reproduction. Reproduction is important in natural ecosystems to avoid extinction of species. Hence the use of renewable natural resources in industrial systems is important to ensure the sustainability of such resources. Gradual development of system diversity in industrial systems is express expressed by Ehrenfeld (1994) as creating loop-closing industrial practices component of industrial ecology. In essence, industrial ecology involves mimicking of ecosystems with industrial systems, which can be expressed in four ecosystem principles of roundput, diversity, locality, and gradual change. These principles when applied in industrial systems means industries will have to recycle waste, use renewable energy, corporate and use by-products from one another and use local renewable resources. 2.3 Environmental Related Regulatory and Policy Framework on Industrial Activities Environmental policy can be said to be procedures put in place by government to assess, evaluate and control hazards related to humans or ecosystems through regulations, economic incentives and/or training, education and awareness of existing environmental standards Ayee (1998). The Ghana environmental protection agency (EPA) is mandated by law under University of Ghana http://ugspace.ug.edu.gh 27 Act 490 to regulate and implement government`s policies on the environment and also seek solutions to global environmental issues (Gemadzie & Agyekum, 2016). Therefore the environmental aspect of industrial activities in Ghana is regulated by the environmental protection agency. The Ghana National Environmental action plan (NEAP) set up in 1988, implemented in 1991 and revised in 2013, seeks to achieve sustainable development in Ghana by addressing concerns in various sectors including manufacturing/industry through the provision of sectorial environmental policies and strategies (EPA, 2017) A number of policy and regulatory frameworks exist that can initiate and advance the idea of sustainable industrial development in Ghana. The 2010 industrial policy and the industrial Sector Support Programme (GoG, 2011) outlines several provisions government promise to put in place for sustainable industrial development in Ghana. Governments pledge towards sustainable industrial development includes the provision of land for industrial development only, put in place measures to ensure energy and water efficiency, encourage the development of voluntary standards through liaison between Ghana Standards Authority (GSA) and industry actors, strengthen capacity of regulatory bodies to enforce environmental regulations as well as effectively monitor manufacturing processes, and encourage the development and implementation of self -regulatory measures on environmental management by industries (PAGE 2015). PAGE (2015) further outlines government’s pledge to cleaner production as supporting the efficient use of raw materials, energy and water in industry, aiding the adoption of cleaner production technologies and processes. These provisions intend to support sustainable industrial development by supporting cleaner production, energy and material efficiency and accelerating the adoption of voluntary international environmental standards such as ISO. However the extent of implementation of these provisions is yet to be ascertained. University of Ghana http://ugspace.ug.edu.gh 28 In 2019, government launched the national plastic management policy (NPMP) as part of its partnership with the global plastic action partnership (GPAP) to address the overwhelming plastic pollution in the country (MESTI, 2019).The ministry of environment, technology and innovation (MESTI) emphasizes that “ the policy lays a foundation to enable the creation of an entirely new industry for redesigning, recovering, and recycling plastics, preventing pollution, of our environment, and communities and creating many new jobs in the green economy” (MESTI, 2019). The policy aims at achieving a circular plastic economy through education and awareness towards a behavioural change of plastic management amongst individuals and businesses as well as providing resources for sustainable plastic management within communities and corporations (MESTI, 2019). In essence, government over the years have developed policies and made commitments to protecting the environment and minimize the environmental impacts of industrial activities; giving EPA the mandate. However, the level of implementation of the objectives of these policies is unreliable. One of the latest action of government on protecting the environment from plastic pollution is the adoption of national plastic management policy (NPMP) as part of the global plastic action partnership (GPAP); which aims at solving plastic pollution through circular economy principles. The adoption of industrial ecology by enterprises can facilitate the implementation of this policy as their tenets are similar. 2.4 Plastic Waste in Ghana The convenience in usage and low cost of plastic has made the material the mainstay in recent years (Ellen MacArthur Foundation, 2017). With an advantage in functionality and cost, the product has revolutionized activities in various sectors of the economy from food storage, health, and energy production (Harris, 2018). This advantage has resulted in a rapid increase in plastic use and an ensuing increased plastic waste generated in the last 60 years. Geyer et al., (2017), alludes to the fact that the component of plastic waste in municipal University of Ghana http://ugspace.ug.edu.gh 29 solid waste increased by approximately 10% between 1960 and 2005, while Lebreton and Andrady (2019) project an increase from 155 to 265 million Mt per year globally, by 2060 if the current trends remain unchanged. Plastic waste generation in Ghana has shown an increasing trend. According to Fobil (2000), plastic waste constituted 8% of solid waste in Ghana in 1999/2000 an increment from 1.4% in 1979 and 5% in 1996/97 analysed by Schweizer & Annoh (1996) and Archer et al., (1997) respectively and reached about 501,875 tons of plastic waste generated in the country annually by 2016 (Kortei and Quansah, 2016). Most plastic manufacturing enterprises in Ghana are producers of packaging, single –use and multiple use plastic products from the use of virgin raw materials imported into the country, though a few enterprises use recycled material. Injection moulding and blowing technologies are usually used for production. Plastic waste impacts both terrestrial and marine or aquatic ecosystems. According to De Souza Machado et al., (2017), plastics sometimes disintegrates into microplastics and that interact with microorganisms, affecting their health and functioning. This consequently leads to effects on flora and fauna. Microplastics are also carried into food which is toxic to human and animal health. Adding that hormonal effects in vertebrates and invertebrates could be realized from chemicals released from plastic breakdown. Plastic littering in Ghana has been a major cause of concern for public sanitation situation in the country. The cause of major floods in Ghana has been attributed to plastic littering which blocks drains and obstruct the flow of water during rainfall. Fisher folks in areas such as Ga King Shorna and Mensah Guinea have complained about low harvest due to increased plastic waste at sea which destroy their nets (www.myjoyonline.com, 2016). University of Ghana http://ugspace.ug.edu.gh 30 In Ghana however, a ban on single-use plastics was proposed by the government to take effect in November, 2015 but was met with stiff opposition from plastic producers and importers. A major section of the populace also opposed it due to their reliance on plastic packaging. Kwadzo (2020) reports that the Minister of Environment, Science, Technology and innovation; Professor Kwabena Frimpong-Boateng has stated the contribution of plastics to the economy and the reliance of Ghanaians on packaged water are factors that hinders the ban of plastics in Ghana currently. Plastic recycling is therefore being encouraged to manage the plastic waste situation in the country. However, recycling is still on the lower side as Linnenkoper reports that 6% of the 1.7 million tons of plastic waste generated in the country annually is recycled (Linnenkoper, 2019). The 3Rs (reduce, reuse and recycle) approach to waste management has been encouraged worldwide. Defined by United States Environmental Protection Agency (USEPA, 2017) as “the separation and collection of materials that otherwise would be considered waste, the processing and remanufacturing of these items into new products to complete the cycle”. By this definition recycling is an approach to incorporating waste into the circular economy which is in line with cradle to cradle principle of using waste as resource. Bio- plastics and bio-degradable plastics provides prospects for sustainable plastic production. In essence though plastics are convenient and cheaper to acquire, indiscriminate production, use and disposal could be harmful to the terrestrial, aquatic and human health and there is a need for a sustainable approach to managing plastic waste, which could be achieved using industrial ecology principles such as recycling. 2.5 Industrial Ecology and Sustainable Development Goals The global social, economic, and ecological systems are interconnected such that they requires an integrated approach to managing them. The sustainable development goals is University of Ghana http://ugspace.ug.edu.gh 31 based on a triple (3) bottom line; social, economic and environmental, providing a benchmark to which businesses, private and public institutions can adopt into their developmental strategies. Industrial ecology provides a holistic approach to managing economic systems such that it has rippling effects on social and ecological systems. Huber (2000) classifies recommendations of various institutions including the United Nations (UN) towards achieving sustainability into three broad categories, namely; sufficiency, efficiency and consistency. He explains that the sufficiency strategy emphasizes conservation, whereas efficiency strategy seeks to achieve maximum value with minimum resources through technological and infrastructural improvement. Adding that the consistency strategy of sustainable development renders a leeway for true industrial ecology through the “innovation of new technologies, products, and material flows in order to change the qualities of the industrial metabolism”. Loop closing strategies have therefore been looked upon to provide prospects for sustainable development, hence approaches such as zero waste, circular economy and industrial ecology have been linked to sustainable development. Schroeder et al., (2018) identifies potential contribution of circular economy (CE) practices to achieving a significant number of sustainable development goals (SDG) targets; showing significant relationships between circular economy practices and the targets of SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG8 (Decent Work and Economic Growth), SDG12 (Responsible Consumption and Production), and SDG 15 (Life on Land). As circular economy practices aims at closing the loop, so does industrial ecology practices as seen in the components enlisted by Ehrenfeld (1994) and Munholfen et al., (2004) in section 2.2, and the principles of ecosystem that can be adopted by industrial systems indicated by Korhonen (2001), as such IE can contribute to the achievement of a number of the sustainable development goals (SDG). Also Sullivan et al., (2018), finds significant relationship between industrial ecology and SDG 7 University of Ghana http://ugspace.ug.edu.gh 32 (Affordable and Clean Energy), SDG 9 (innovation and infrastructure), SDG12 (Responsible Consumption and Production) and SDG13 (climate action). Inference can therefore be made that SDG12 (Responsible Consumption and Production), has a higher probability of being achieved through circularity practices whether circular economy or industrial ecology. Therefore enterprises aiming to achieve SDG 12 can aid in achieving certain aspects of other goals of the SDGs. The concept of “sustainable consumption and production” (SCP) has been critical for policy –makers in solving the challenges of sustainable development since the early 1990s (Pogutz & Micale 2011). It has been the focus of governments, businesses and civil societies towards the achievement of sustainable development. In 2005, a group of academics explained that “sustainable consumption focuses on formulating equitable strategies that foster the highest quality of life, the efficient use of natural resources, and the effective satisfaction of human needs while simultaneously promoting equitable social development, economic competitiveness, and technological innovation” (Tukker et al. 2006). Whereas sustainable production focuses on innovation in the design of products and its processes while considering the full life cycle of products or processes (UNEP 2009). In an effort to achieve sustainable development the European Union endorsed the Sustainable Consumption and Production Action Plan, in 2008. Some scholars maintain that increased resource productivity through cleaner technological innovations can be beneficial to both the firms and the environment (Lovins et al., 1999). In relating sustainable consumption and production to the widely held IPAT (impact = population * affluence* technology) equation, Pogutz and Micale (2011) establish that sustainable consumption and production can and has been widely achieved through technological advancement which is the option that can be controlled by governments and businesses as population and affluence can hardly be managed by policy makers. Sustainable production and consumption has been a critical part University of Ghana http://ugspace.ug.edu.gh 33 of policy making in for years and therefore targeting problems of plastic pollution through sustainable production and consumption of the material can help solve the plastic pollution problem. Nonetheless, the challenges of sustainable development persist till date, indicating that both production and consumption patterns should be totally closed rather than shifting to green consumption which is basically a shift in the type of products being consumed and not necessarily a loop closing feature. Loop closing strategies such as industrial ecology can be explored to solve the major challenge of sustainable development; sustainable production and consumption. As such the adoption of industrial ecology; a loop-closing strategy in the production and consumption of plastic will be essential for sustainability. 2.6 Theoretical Frameworks Underpinning the Study 2.6.1 Institutional Theory The institutional theory and the natural resource-based view are ideal in explaining the factors that influence the adoption of corporate environmental practices and its benefits, though this study does not emphasize between firm exchanges. The institutional theory has evolved over time; from realist institutionalism to social institutionalism and attempts to explain a balanced combination of legitimacy with the principles of institutional modification. The theory posits “that an organization does not choose an alternative action based on the rational calculation, but rather is a passive being who accepts what is defined as desirable and legitimate in a given institutional environment” (Jo et al., 2020) and essentially, tries to explain the factors that causes an institution to adopt certain practices. One of its major proponents, Scott; outlines three (3) pillars on which the theory is premised. Scott (2001), suggests that the three pillars on which the institutional theory is based on, are regulatory, normative and cognitive. University of Ghana http://ugspace.ug.edu.gh 34 The regulative pillar of the institutional theory has to do with external bodies of power such as the national legal actions (Meyer, 2006), who have the ability to set rules, ensure compliance and reward or punish compliers and perpetrators of the set rules or laws (Oh & Ryu, 2019). These bodies of power therefore compel institutions to adopt certain practices they deem appropriate. Saeed et al., (2018) finds that institutions adopt environmental practices to derive rewards or to offset punishment for non-compliance to government laws and regulations; as such coercive pressures have a significant direct impact on firms` environmental behaviours. The normative pillar leans towards acceptance from society or interest groups such as pressure groups and nongovernmental organizations and in recent times, clients (local and international). Thus firms that have international clients or markets may adopt environmental practices due to high demand and willingness to pay for environmentally friendly goods which may even transcend demanding environmentally- friendly products from their supply chain (Earnhart, et al., 2014). The third pillar which is the cognitive pillar has to do with the institutions belief system born out of its association and interaction with other organisations within its domain which guides its decision to adopt certain practices. As such industries may adopt environmental practices only because their compatriots and/or competitors are adopting these strategies. Alexiou & Wiggins (2019) recognises that the cognitive pillar is necessary in determining the regulatory and normative pillars to work with. Similarly, Debroux (2010) states that “When normative expectations and attitudes are largely diffused in society, they are gradually internalized by individuals and become accepted as the norms to which everybody is encouraged to conform”. University of Ghana http://ugspace.ug.edu.gh 35 The institutional theory; with its tenets have been found useful in a number of studies in the fields of sustainability science, business, agriculture, etc. In business, Debroux (2010) adopted the theory in his book, “Female Entrepreneurship in East and South-East Asia: Opportunities and challenges”, where the institutional theory was used to study the legitimacy of entrepreneurship in Asia in the section, “the rising tide of entrepreneurship”. Juárez-Luis et al., (2018) used the theory in their study, “Institutional Pressures and Green Practices in Small Agricultural Businesses in Mexico: The Mediating Effect of Farmers’ Environmental Concern”. In this study, the institutional theory was used to “explore the intervening role of farmers’ environmental concern in the relationship between institutional pressures and green practices” (Juárez-Luis et al., 2018). And in sustainability studies the institutional theory was used “as a lens to understand the factors that legitimize the adoption of renewable energy activities in an oil and gas company” by Jaber & Oftedal (2020), in their article titled “Legitimacy for Sustainability: A Case of a Strategy Change for An Oil and Gas Company”. It is therefore expected that plastic producing enterprises will adopt corporate environmental practices due to either regulative forces, normative forces or cognitive forces. This may be due to the nature of regulative regimes within the country, the growing agitation on environmental plastic pollution by the citizens and civil society groups and demand from international markets or the increasing sophistication of the plastic producing enterprises as well as keen competition within the plastic industry. 2.6.2 Natural Resource-Based Theory The natural resource-based theory is another theory that will be used in this study. The natural resource-based theory was developed by Hart (1995), following his realisation of an omission in the resource- based theory which is the natural environment. To address this omission, Hart developed the natural resource-based theory in his book, ‘a natural resource- University of Ghana http://ugspace.ug.edu.gh 36 based view of the firm’ to incorporate the biophysical environment into business strategy arguing that capabilities rooted in environmentally sustainable economic activities will enable the realisation of a sustainable competitive advantage. The resource-based theory is grounded on the premise that there exists a relationship among a firm`s resources, capabilities, and competitive advantage. Hart and Dowell (2011) describe the resource of a firm as its asset including physical, social and financial asset, while the firms` capability refers to the forte of the firm to perform its functions drawing strength from its resources and experience. A combination of the firms’ resources and capability gives rise to a competitive advantage. The theory maintains that the resources have to be unique devoid of possibility of being imitated by other competitors in order to create a sustained competitive advantage. In this regard, the resource of the firm should be tacit, scarce and non-substitutable in order to create value (Hart & Dowell 2011) either through cost advantage or differentiation advantage. It is not conclusive that the availability of resources will result in competitive advantage but that the effective utilization of the right resources is crucial to achieving competitive benefit, as pointed by Yu, et al., (2017), and Hitt, et al., (2016). Hart (1995) therefore situates the natural resource-based theory within three strategic capabilities namely; pollution prevention, product stewardship and sustainable development which act together with the firms resources to attain competitive advantage and sustainability benefit. With Pollution prevention, environmental sustainability is sought through the prevention of waste and emission at the initial stages. This leads to environmental sustainability in terms of reduced waste and emission to the environment and also results in a competitive University of Ghana http://ugspace.ug.edu.gh 37 advantage in terms of reduced or no cost of disposal of waste, simplified internal operations and reduced cost of compliance and liability (Hart & Dowell, 2011; Christmann, 2000). Product stewardship has to do with the integration of environmental sustainability in the design and production process of products. This therefore leads to sustainability benefit in terms of conservation, recyclability and avoidance of waste throughout a products’ lifecycle (Mcdougall et al., 2019, Miemczyk, Johnsen, & Howard, 2016). Competitive advantage is achieved through product differentiation and strategic pre-emption (Hart & Dowell, 2011). The third strategy, which is sustainable development is where the firm tries to achieve a triple bottom line in terms of economic, social and environmental sustainability, by being environmentally sustainable while providing economic benefits to societies affected by its activities. According to Hart (1995), “commitment to sustainable development might raise a firm's expectations for future performance relative to competitors, reflected by such measures as price earnings or market-to-book ratio” Competitive advantage is therefore achieved through exposure to new markets and price advantage. The natural resource based view (NRBV) theory has been applied in a number of studies in the fields of sports, business management and corporate environmental studies. McDougall et al., (2014), studied the relationship between NRBV and sustainable supply chain management and innovation within UK food companies in their article “A Dynamic Natural- Resource-Based Framework for Innovative Sustainable Operations”. This study found a relationship between the NRBV, sustainable supply chain management and innovation. Applying the NRBV theory to the present study, it is expected that the incorporation of environmental concerns into firms` strategy either through capability of the firm to practice pollution prevention, product stewardship or sustainable development will have some impact on the firm in terms of resulting in some form of competitive advantage such as University of Ghana http://ugspace.ug.edu.gh 38 improved efficiency and reduced cost of production, differentiation benefit and access to international markets. This could be achieved due to increased awareness on the effects of the consumption of plastic products and the concerns raised on plastic pollution to the environment. In essence concerns raised about plastic pollution can lead to firms practicing environmental responsibility which will eventually result in some form of competitive advantage. University of Ghana http://ugspace.ug.edu.gh 39 2.7 Conceptual Framework of Corporate Environmental Practices of Plastic Producing Enterprises Towards Industrial Ecology and Plastic Waste Reduction In Relation To SDG 12 Figure 2 shows the motivating factors for the adoption of corporate environmental practices by plastic producing enterprises, its benefits and how it aligns with industrial ecology and plastic waste management while contributing to SDG12 University of Ghana http://ugspace.ug.edu.gh 40 Figure 2: Conceptual framework showing the motivation and benefits of corporate environmental practices of plastic manufacturing enterprises towards industrial ecology and plastic waste r