The fight to end plastic pollution is gaining momentum as the deadline for a UN-led international treaty approaches. The United Nations Environment Program (UNEP) held its fourth session in Ottawa, Canada, to work on a legally binding treaty that aims to limit the growth of plastic pollution. This session followed meetings in Uruguay, France, and Kenya, with the final drafting set to take place in Busan, South Korea. Progress has been made, but more work is needed to address this pressing issue.
Plastic pollution has had a devastating impact on biodiversity and human health, with the production and use of plastics since 1950 resulting in approximately five billion tons of plastic waste. The Plastic Soup Foundation warns that this number could reach five billion tons by 2050 unless significant action is taken. The majority of plastics produced each year are for single-use purposes, contributing to environmental degradation over centuries. Microplastics and nanoplastics further exacerbate the problem, posing health risks to both humans and animals in various habitats.
Despite the urgent need for action on plastic pollution, media coverage of the INC-4 session in the United States has been limited. The United States has been criticized for its reluctance to commit to aggressive cuts, possibly due to the influence of the oil and gas industry, which relies on petrochemical revenue. Pressure is mounting on the Biden Administration to take more decisive action, as other nations’ delegations have been more vocal in their support for change.
Investors in the plastics industry are facing increasing risks, as demand for plastics is projected to quadruple by 2050. While awareness of the environmental and health impacts of plastic pollution is growing, investors may not fully understand how these risks affect their investments. The Climate Disclosure Project (CDP) facilitated the disclosure of plastic-related risks by companies representing over $31 trillion in market capitalization. Financial institutions with assets over $3.5 trillion also called for mandatory corporate disclosure in the international plastic treaty negotiations.
However, voluntary disclosures may not be enough to drive meaningful change. Mandatory disclosure requirements with teeth could help investors assess the regulatory risks associated with the plastics industry. The introduction of regulatory pressure and a focus on the materiality of these risks could shift investment patterns and future demand in the plastics industry. The implementation of a binding treaty, coupled with stringent disclosure protocols, could potentially change the trajectory of investments in the plastics sector and pave the way for a more sustainable future. Time will tell if these measures will be implemented effectively to address the growing crisis of plastic pollution.
