Written by Aliyah Assegaf
30 September 2024
Growing concerns over plastic pollution and its harmful environmental impact have prompted investors to demand action from the petrochemical industry. Planet Tracker, along with over 70 investors, is urging these companies to address climate risks and adopt more sustainable practices. As plastic production is projected to triple by 2060, the industry faces increasing pressure to reduce its environmental footprint. Here are some key points to consider:
Investor Initiative: Over 70 investors, led by Planet Tracker, are calling on the petrochemical industry to address climate-related risks and plastic pollution.
Plastic Production Expansion: The expansion of plastic production without addressing waste management or lifecycle impacts on the climate, environment, and public health is a growing concern.
OECD Projections: By 2060, plastic production could triple, with 88% coming from virgin plastics, leading to greater environmental leakage.
Sector Risk Management: There are concerns that the petrochemical sector is not doing enough to address the risks associated with plastic pollution.
Investor Demands: These investors are calling for better transparency in plastic production and its impacts, including:
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Sustainable production methods
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Elimination of hazardous chemicals in plastics
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Strong governance on environmental sustainability with incentives for management
Signatories: Legal & General Investment Management (LGIM), ABRDN, WHEB Asset Management, and Rockefeller Asset Management.
Plastics' Impact and Solutions: Seb Beloe of WHEB Asset Management emphasizes that, as a major contributor to the climate and biodiversity crises, with a significant impact on human health, the plastics industry holds a critical position to be part of the solution.
Call for a Plastics Treaty: The investors urge the petrochemical industry to support a robust, legally binding international treaty to end plastic pollution, aiming for UN ratification by the end of the year.
Treaty Development Challenges: Progress has been mixed, with disputes over specifics, as nations remain divided on whether the treaty should set a single global deadline or allow each government to set its own targets
This call for a robust international treaty is a critical step toward addressing the global plastic crisis. While progress has been mixed, the urgency of the situation demands decisive action. By supporting a binding treaty and adopting sustainable practices, the petrochemical industry can play a pivotal role in mitigating plastic pollution and securing a sustainable future for generations to come.