Investors back calls to regulate plastic industry ahead of UN meeting
Ahead of the fourth session of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) in Canada next week, 160 financial institutions globally, managing assets totaling $15.5trn, have endorsed the UN's Finance Statement on Plastic Pollution.
The collective, spanning 29 countries, calls for a robust international treaty to combat plastic pollution, aligning the financial sector’s interests with environmental initiatives. Its backers include four of the Swedish AP funds, Cardano, Canadian CDPQ and the Swiss Ethos Foundation.
On the asset management side, firms like Intesa Sanpaolo, ING, and AXA Investment Managers, alongside North American firms such as Fidelity International and Manulife Investment Management, and institutions from emerging markets like Bancolombia and Khumo Capital have backed the initiative.
Representatives from various regions, including OECD countries and 15 signatures from major Asian financial institutions from countries such as India, Indonesia, Singapore, Japan, and South Korea, have signed the statement.
The Finance Statement advocates for a treaty underpinned by binding governmental rules and a comprehensive approach to the entire lifecycle of plastics. The signatories aim to influence the forthcoming negotiations by pushing for a framework that integrates scientific principles and aligns economic activities with environmental goals. The treaty is expected to include harmonised targets across the plastics value chain and require companies to assess and disclose risks and opportunities related to plastic pollution.
Eric Usher, head of UNEP FI, highlighted the finance sector's role in addressing environmental challenges, emphasising the need for both private and public financial flows to align with the treaty’s objectives to effectively tackle plastic pollution.
The statement also underscores the interconnectedness of plastic pollution with broader environmental crises, such as climate change and biodiversity loss, advocating for a unified approach to these global challenges. It calls for systemic changes and policies that enable a transition to a sustainable and equitable economy, such as extended producer responsibility (EPR) schemes.
David Atkin, CEO at the Principles for Responsible Investment, noted the intrinsic link between environmental issues like climate change, biodiversity loss, and plastic pollution, and the systemic risks they pose. He stressed the importance of a comprehensive policy framework that addresses these interconnected challenges.
As stakeholders prepare for the negotiations in Canada, the financial sector’s engagement in this initiative reflects a significant shift towards integrating sustainability into financial strategies.
