Plastic treaty failure will turn spotlight on business. The collapse of three years of negotiations to establish a global treaty limiting plastic pollution will put more pressure on companies to reassess their single plastic use.
It comes as 170 countries fail to reach an agreement at a UN summit last week, despite projections that plastic production is set to triple by 2060.
The treaty also aimed to target waste management, harmful chemicals, single-use plastics and funding mechanisms for developing countries.
Following a lack of a global agreement responsibility to manage the plastic crisis will fall back onto individual countries and companies without global agreement.
Joshua Sherrard-Bewhay, ESG analyst, Hargreaves Lansdown explained the individual companies may face pressure to be more transparent over their plastic use.
He said: “After three years of talks, countries have not been able to agree on the provisions of a binding global treaty that reduces plastic consumption.
“The treaty aimed to set legally binding caps on plastic production, improve waste management, recycling and product design, remove hazardous chemicals from plastics, and create funding mechanisms to support developing countries.
“While the adoption of the Paris Agreement a decade ago showed that international cooperation and consensus was possible on sustainability issues, today’s political climate suggests responsibility will fall onto individual countries and companies.”
In terms of the effect on companies Sherrard-Bewhay continued: “Companies in the oil and gas sector will have been especially interested in the outcome, as upstream production was in scope of the treaty. Equally, consumer goods and staples, as well as many other producers of products, are likely to view this as a signal that policy is not likely to change any time soon.
“It is reported that 56 companies are responsible for 50% of the world’s plastic pollution. Investors that wish to encourage positive action on plastic should look beyond companies that only have recycling schemes and towards those that focus on phasing out single use and virgin plastics. Engaging with companies to provide transparent reporting and progress on reduction plans will be key to encouraging progress.”
Experts said the key divide, and the fundamental point over which the countries could not agree, was whether any treaty should tackle plastics at source – by reducing production – or focus on managing the pollution that comes from it.
A powerful group of nations believed better waste collection and recycling infrastructure was at the heart of any workable solution.
Speaking at the start of the meeting Rob Opsomer, executive lead for Plastics and Finance at the Ellen MacArthur Foundation, said the world needed to act.
