Disappointingly, international negotiations on a legally binding treaty addressing plastic pollution failed to reach an agreement yesterday. However, some nations argued the proposals were not ambitious enough, sparking hope that a stronger and more impactful version of the treaty could emerge. This means the world will need to wait another year for the next chance to take collective action against this escalating global crisis.
See also: Global Plastics Treaty: What to expect from INC-5
Currently, 462 million tonnes of plastic are being produced every year, with plastic pollution set to triple by 2040 at its current rate. Alarmingly, reports of plastic particles being found in human placentas, lungs, blood and, most recently, brain matter are causing widespread concern on the implications of uncontrolled plastic pollution.
On average, a person unknowingly consumes around five grams of plastic every week — equivalent to the weight of a credit card — primarily through contaminated water, food, and air. Adding to the crisis, more than 4,200 “highly hazardous” chemicals have been identified in plastic products, highlighting the widespread risks.
Despite these dangers, only 9% of plastic waste is recycled, leaving the vast majority to accumulate in landfills, waterways, and ecosystems. Each year, it is estimated that up to 14 million tonnes of plastic waste enter our oceans every year.
The Treaty aims
The Treaty addresses plastic use in all stages of its life, from chemical and material stage, to product, and finally, end-of life, meaning there could be implications for companies and countries around the world.
There are four key areas of the treaty:
- Achieving sustainable consumption and production for primary plastic polymers, and the elimination of certain chemicals and polymers
- Improved product design and waste management
- Encouraging public-private partnerships
- Promotion of decent work throughout plastic lifecycles
The group also aim to provide finance and expert guidance to support countries in applying these principles.
The Treaty aspires to follow in the footsteps of other successful international agreements, like the Montreal Protocol which phased out more than 99% of ozone depleting substances.
A level playing field
A global treaty could establish a high common standard on plastic consumption, creating a level playing field that supports countries and companies in reducing waste while maintaining competitiveness.
The EU has already begun to introduce stringent regulations, such as the Packaging and Packaging Waste Directive, which aims to ban certain single use plastics by 2030.
Companies with flexible and dynamic design processes that can integrate principles like circularity and reusability are likely to fair much better than those dependant on single use plastics or have high waste generation.
See also: Five funds supporting reduction in plastics
Stock winners and losers
By Hargreaves Lansdown’s head of equity research Derren Nathan:
Coca Cola is a prime example of why more transparency is needed. On the one hand it’s claimed some solid progress against its goals for 100% of its packaging to be recyclable globally by 2025 and to use at least 50% recycled material in its packaging by 2030. On the other Break Free From Plastic has voted it the world’s worst plastic polluter for six years in a row. The truth is probably somewhere in the middle but without clear reporting standards it’s hard to be sure.
Other companies have the potential to create value out of tighter regulation and increasingly responsible consumer preferences. Bunzl is a key partner to the catering industry and is focused on helping customers transition to a circular economy. Already 55% of its total packaging sales come from alternative materials. Its Verive range of reusable items such as burger boxes, cups and lids are designed for multiple re-use. Bunzl also provides a full wash and return facility to support the product and generate a recurring income stream, so a potential win for both shareholders and the environment.
