My research idea focuses on examining the relationship between implementing ESG (Environmental, Social, and Governance) practicesspecifically through the use of biodegradable packaging in the FMCG (Fast-Moving Consumer Goods) industryand its impact on business sustainability. It is widely known that FMCG companies produce around 400 million tonnes of plastic waste annually, much of which is made up of single-use plastics supplied to meet the demands of a rapidly growing global population (Raha & Shil, 2024). This contributes significantly to environmental degradation, especially since most plastic waste is non-recyclable (Source: Greenpeace), and its decomposition can take between 20 and 450 years depending on the type of plastic (Source: WWF Australia).

This issue motivates my research, as several global FMCG companies have already started transitioning to biodegradable packaging. I aim to investigate how this shiftpart of a broader ESG strategyimpacts shareholder confidence and overall financial performance.

As anexplanatory research, the anlysisaimsto understand the phenomena and the underlying reasons behind corporate behavior (Adams et al., 2014). The main objective is to inspire other FMCG companies to adopt eco-friendly packaging as part of their corporate responsibility in addressing global climate change. Given the rising importance of ESG disclosures in annual reports, this research is timely and relevant.In addition, this will apply aqualitative research approach based on several theoretical frameworks, including stakeholder and shareholder theories, Porter's Value Chain analysis, Barney's VRIO framework, and consumer behavior models.

Provide a short academic and concise feedback on this research idea of a student:

The study will analyze multiple FMCG companies that have adopted biodegradable packaging as part of their environmental ESG initiatives. While biodegradable materials are reportedly 20 -30%more expensive than conventional plastics (PlanetPristine), this cost increase can be offset by the enhanced trust and loyalty of consumers and investors. I will assess the outcomes of this sustainable packaging implementation by examining revenue, net earnings, and stock value as indicators of market trust and long-term business sustainability.

In conclusion, this research aims to explore how implementing biodegradable packaging as part of ESG practices can enhance sustainability in FMCG businesses, balancing environmental responsibility with financial performance and inspiring broader adoption across the industry amid global climate challenges