$10trn coalition urges plastic crisis action
May 10, 2023
An investor coalition overseeing $10trn in assets has called for urgent action from the consumer goods and grocery retail sector to address the plastic crisis.
In a joint statement, 185 investment firms, including Aviva Investors and AXA Investment Managers, urged companies like Nestlé and Unilever to reduce plastic waste.
Companies must reduce their dependence on single-use plastics due to the serious and growing threat plastics pose to the environment and public health, according to the coalition.
The coalition called on companies to establish a clear plan of action to reduce material consumption and upscale reusable packaging systems.
Retailers have also been urged to ensure the production and consumption of plastics is aligned with the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework.
The joint statement from the group said: “It is clear that drastically reducing production and consumption of plastics is the priority action needed to address the plastics crisis. This includes upscaling of reuse systems.”
Companies must reduce plastic waste to protect the environment and human life from the detrimental impact of plastics, according to the coalition.
The statement reported plastic imposes an estimated externality cost on society of $250bn per year arising from greenhouse gas emissions, ocean pollution and collection costs.
Scientists have also warned that the intensive production and use of plastics is causing untold damage to the health of people and the planet.
Companies would also benefit from addressing the plastic crisis because companies on the value chain are exposed to significant plastic-related risks.
These risks including regulatory risks arising from bans, taxation and extended producer responsibility costs as well as reputational risks and increased raw material costs.
The joint statement added: “We are concerned that companies that do not proactively address these risks with actions aimed at reducing their dependence on single-use plastics may face higher costs or lose business opportunity, therefore putting long-term value creation and investment returns at risk.”
The coalition supports the European Commission’s proposals for the revision of the Packaging and Packaging Waste Regulation, which seeks to address overpackaging and scale up reuse systems.
However, recent lobbying efforts have already succeeded in lowering the targets and weakening the measures of the regulation.
Last Updated: 10 May 2023