Innovative Business Models in Ocean-Bound Plastic Recycling.

This article analyzes innovative business models of firms aiming to reduce ocean-bound plastic (OBP) pollution through a triple-bottom-line (TBL) objective that balances profit, environmental impact, and social impact. It examines three models where a firm partners with a local plastic recycling supply chain in low- and middle-income coastal countries to sell (a) plastic offsets, (b) segregated recycled plastic, or (c) both combined. The study incorporates the principle of additionality—ensuring that plastic offsets correspond only to plastic recycled beyond baseline levels—and finds that while all models generate positive social and environmental impacts, additionality can paradoxically reduce these impacts in some cases, especially when the offset market is large. Numerical results calibrated with real data indicate that selling both plastic offsets and segregated plastic (the combined model) yields the highest overall TBL value, and that firms pursuing a TBL objective can substantially increase social and environmental benefits with only a modest reduction in profit compared to profit-maximizing firms. The findings provide insights for designing sustainable and financially viable business strategies to tackle ocean plastic pollution.