160 global financial institutions and two industry stakeholders have signed a statement calling on governments to negotiate an “ambitious treaty” to end plastic pollution ahead of negotiations taking place at the fourth meeting of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) next week.
Signatories representing $15.5trn in combined assets – including AXA Investment Managers, Fidelity International, ING and First Sentier Investors – have asked for the treaty to be supported by binding rules and obligations for governments to address the full life cycle of plastic, for it to be based on a scientific approach and for it to create the framework to align all economic participants with its objectives.
Furthermore, signatories stressed the need for the treaty to include harmonised targets across the plastics value chain and to ensure companies assess and disclose plastic-related risks and opportunities. They also noted the importance of promoting an enabling policy environment for the transition to a sustainable and equitable economy that addresses plastic pollution, suggesting initiatives such as extended producer responsibility schemes.
The statement was drafted by non-governmental organisations such as Finance for Biodiversity, Principles for Responsible Investment and the United Nations Environment Programme Finance Initiative (UNEP FI).
“Redirecting both private and public financial flows towards the treaty’s objectives will be crucial to meeting the plastic pollution challenge head-on,” said UNEP FI head, Eric Usher.
“We ask member states to take note of the call from a significant segment of the global finance industry to create a historic environmental treaty that takes into account the commercial challenges and the risks and opportunities associated with financing the solutions to this global pollution issue.”
According to the World Economic Forum’s The New Plastics Economy – Rethinking the Future of Plastics report, plastic pollution is closely linked with the triple planetary crisis of climate change, biodiversity loss and pollution. Plastic is projected to account for 15% of greenhouse gas emissions by 2050 if no action is taken, and plastic pollution is clearly identified as an important issue in the seventh target of the Global Biodiversity Framework, which has the aim of “preventing, reducing and working towards eliminating plastic pollution”.
Signatories of the Finance Statement on Plastic Pollution come from all regions, including a strong voice from OECD countries, and, notably, 15 signatures from Asian financial institutions, including from India, Indonesia, Singapore, Japan and Republic of Korea, where the next and final round of negotiation will take place before the end of 2024.
David Atkin, CEO at Principles for Responsible Investment, added: “We know climate and nature issues are intrinsically linked – with both representing significant systemic risks to industry, and therefore to investors and their holdings. Climate change, biodiversity loss, plastic pollution and other issues cannot be tackled in isolation, but require systemic responses.
“With this announcement, investors are signalling their desire for governments to establish a clear, robust policy mandate to tackle the issue of plastic pollution, in keeping with efforts on climate and biodiversity. This mandate should call for an end to plastic pollution and be based on a scientific approach which orients all economic actors towards its objectives.”
This story first appeared in our sister publication, PA future.