Investors are calling on governments to “turn the tide” on single-use plastics by mandating voluntary disclosure.
An agreement on mandatory reporting on plastic production, import and export should be adopted by member states this week at the International Negotiating Committee (INC-3) on a global treaty on plastic pollution, the non-profit disclosure platform CDP said. ESG.
Negotiators are meeting in Nairobi, Kenya, for the third round of talks – scheduled for November 13 to 19 – to forge a legally binding global instrument to end plastic pollution.
Humanity produces approx 430 million tons plastic per year, two-thirds of which quickly becomes waste. Much of it ends up polluting the land, sea and air as it increasingly enters the human food chain.
At INC-3, negotiators discuss a initial zero design agreed In June at INC-2 in Pariswhere more than 165 countries supported its development.
Plastic Disclosure Requirements
Speak with ESGOliver Tanqueray, Associate Director, Ocean Health at CDP, said he was pleased to see in the zero draft that there is an option for “cross-cutting and reasonably comprehensive disclosure requirements” on the production, import and export of plastic polymers and products.
“We encourage Member States to support this,” he said, adding that the CDP had amendments it would like to see in this regard, including disclosure that applies to all actors in a company’s supply chain.
“It is important for investors and policymakers to have transparency across the supply chain,” he said.
“We advocate including plastic-related risks, opportunities, dependencies and impacts as we believe these are important components of high-quality disclosure.”
Tanqueray, who is on the ground in Nairobi for the talks, added that she would also like to see national reporting requirements on plastics reflect the requirements of companies.
“Currently there is a difference in the ‘zero draft’ between what countries are expected to report compared to companies, and it is important that they match each other to build a comprehensive, comparative data set to track financial flows away from sources of plastic pollution and waste,” he noted.
More than 3,000 companies with a market capitalization of more than $31 trillion have made public information about their production and use of plastics through the CDP platform for the first time this year.
While Tanqueray acknowledged that this figure represents a “very high disclosure rate” for the first year, he admitted that there are limits to what can be achieved through voluntary disclosure.
“That is why we are here to ask for mandatory corporate disclosure,” he said.
In response, the CDP has led an initiative open letter to governments of 48 financial institutions totaling $3.5 trillion, requesting that mandatory plastics disclosures by companies be included as part of the Global Plastics Treaty.
Meanwhile, an international coalition of nearly 30 institutional investors with $10 trillion in assets under management, led by the Dutch Association of Sustainable Investors (VBDO). called up governments for strong action in the fight against single-use plastics.
Tessa Younger, Stewardship Lead Environment at CCLA Investment Management, a signatory of the letter, said: ‘It is now abundantly clear that we will not be able to turn the tide on the climate, pollution and social impacts of growing amounts of plastic. produced without action being taken at source. We therefore emphasize the importance of including upstream measures to combat plastic pollution in the Treaty to reduce plastic pollution at source and achieve climate goals.”
According to to ReutersThere are currently tough negotiations over whether to limit the amount of plastic produced or just focus on waste management, with the European Union and others wanting a strong treaty with ‘binding provisions’ on reducing new plastic polymers derived from petrochemicals and problematic plastics, such as PVC. Petrochemical exporters, such as Saudi Arabia, on the other hand, want plastic use to continue and are calling for the treaty to focus on recycling and reusing plastic.