Minderoo Foundation, Australia
https://cdn.minderoo.org/content/uploads/2021/05/27094234/20211105-Plastic-Waste-Makers-Index.pdf

Close to 85 percent of all single-use plastics is produced from just five polymers - PP, PET, LLDPE, HDPE, and LDPE.

THE FIVE MAJOR FINDINGS OF OUR REPORT

  1. In 2019, just 20 polymer producers accounted for more than half of all single-use plastic waste generated globally – and the top 100 accounted for 90 percent.

ExxonMobil (/ˈeksɒn/in the US /ˈesəʊ/in the UK) and Dow – both based in the USA – and China-based Sinopec top the list, with these three companies together accounting for 16 percent of global single-use plastic waste. Of approximately 300 polymer producers operating globally, a small fraction hold the fate of the world’s plastics crisis in their hands: their choice to continue to produce virgin polymers, rather than recycled polymers, will have massive repercussions on how much waste is collected, is managed and leaks into the environment.

  1. Major global investors and banks are enabling the single-use plastics crisis.
  2. There has been a collective industry failure to transition away from fossil-fuel-based feedstocks.
  3. Planned expansion of virgin polymer production capacity threatens to overwhelm hopes of a circular plastics economy.
  4. Single-use plastic waste is an entrenched geopolitical problem.

Recommendations

POLYMER PRODUCERS

Polymer producers represent an extraordinary leverage opportunity in the fight against plastic pollution, as the “gatekeepers” of plastic production – particularly because they are relatively few in number. As policymakers and investors recognise this fact, the disruptions and risks facing these companies will only grow. Polymer producers wishing to maintain a competitive advantage should:

  • Disclose levels of virgin versus recycled polymer production and their associated single-use plastic waste “footprint”.
  • Quit paying lip service to sustainability and seize the opportunity to re-tool.
    Set real, quantifiable /‘kwɑntə,faɪəbl/ and time-bound commitments to reduce reliance on fossil fuel feedstocks and shift to circular recycled polymers.
  • Commit to using circularity measurement and reporting tools.
    One example is the Circulytics initiative from the Ellen MacArthur Foundation, which supports a company’s transition towards the circular economy, and reveals the extent to which a company has achieved circularity across its entire operations.

POLICYMAKERS

Solving the single-use plastic problem will take more than the actions of progressive polymer producers or the influence of capital markets. It will also require policymakers to display great political will and practical action. Policymakers should:

  • Target policies at polymer producers.
    With the knowledge of which companies are at the source of the single-use plastic waste crisis, policymakers can now draft effective regulatory responses, such as policies that require recycled polymer production from plastic waste feedstocks, and therefore incentivise greater waste collection; or economic incentives that accelerate the transition from virgin to recycled polymers, such as a levy on virgin production.
  • Accelerate a global treaty on plastic pollution.
    A Montreal Protocol or Paris Agreement-style treaty may be the only way to bring an end to plastic pollution worldwide. The treaty must address the problem at its source, with targets for the phasing out of fossil-fuel-based polymers and encouraging the development of a circular plastics economy.
  • Require full disclosure from producers and users of single-use plastics in order to better monitor the supply chain.
    Insist on “single-use plastic footprint” being a mandatory reporting metric – as per the equivalents that are rapidly becoming mandatory in carbon accounting.

INVESTORS AND BANKS

Institutional asset managers and global banks are providing billions of dollars to companies that produce polymers from fossil fuels – as much as 100 times more than they provide to companies trying to shift to a circular economy. This asymmetry urgently needs to be reversed. Investors and banks should:

  • Disclose the level of lending and investment in virgin versus recycled polymer production and the associated generation of single-use plastic waste.
    Shareholders and customers have a right to know if their money is being invested or lent to entities whose products have negative impacts on people and the planet – a measure of single-use plastic waste must be included in annual environmental, social and governance reporting.
  • Commit to funding a circular plastics economy
    Adopt policies and targets that shift capital away from virgin polymer production and towards companies using recycled plastic waste as feedstock. Phase out entirely investing in and financing new virgin single-use plastic capacity.
  • Use measures of circularity to inform capital allocation decisions and shareholder action.
    Active fund managers should be using circularity as a screening criterion for investments in polymer producers. Passive fund managers can use the same tools to take action at shareholder meetings and exert influence over boards and management. Banks should link lending to circular business outcomes.

OTHER COMPANIES IN THE SUPPLY CHAIN

  • Convert voluntary commitments to use more recycled single-use plastics into firm market signals.
    Long-term forward contracts for recycled polymers and products will create the stability needed for investment in recycling infrastructure. Contracts should also account for the full cost of collecting, sorting and recycling waste, and accept the price premium over virgin polymer and plastics.
  • Design for recyclability.
    Users of plastic have a responsibility to ensure their products are easy to recycle. This means phasing out many hard-to-recycle multi-material single-use plastics, as well as the use of problematic performance- or appearance-enhancing additives. Creating common standards for recycled material quality, specifications and authentication will also improve the efficiency of waste management and recycling systems.
  • Reducing unnecessary single-use plastics.
    This is perhaps the most significant means to reduce single-use plastic waste in the short-term. Opportunities include: redesigning packaging and single-use products to use lower volumes of plastic; scaling innovative re-use models; and using substitute materials.
  • Design for recyclability.
    Users of plastic have a responsibility to ensure their products are easy to recycle. This means phasing out many hard-to-recycle multi-material single-use plastics, as well as the use of problematic performance- or appearance-enhancing additives. Creating common standards for recycled material quality, specifications and authentication will also improve the efficiency of waste management and recycling systems.
  • Reducing unnecessary single-use plastics.
    This is perhaps the most significant means to reduce single-use plastic waste in the short-term. Opportunities include: redesigning packaging and single-use products to use lower volumes of plastic; scaling innovative re-use models; and using substitute materials.