Plastic pollution could give rise to substantial liability claims against corporations, a new study finds

Increasing scientific evidence of plastic’s harmful impacts could result in significant liability claims against the petrochemical industry, as the social impacts are forecast to exceed $100 billion per annum.
Published
November 4, 2022

Scientific research enabling quantification of the impact of plastic on society

A new UN-backed report by the Minderoo Foundation has found that petrochemical companies could soon find themselves liable for billions of dollars as the societal cost of plastic pollution is increasingly being understood and quantified. Minderoo Foundation, a philanthropic organisation, has argued that the improved body of scientific research exploring how plastic pollution enters the food chain, ultimately harming animal and human health, will lead to backlash and, ultimately, legal action against producers. They suggest this will be coupled with data on the emissions generated throughout the plastics life-cycle, which is also rapidly expanding and improving.

“This report builds on the already compelling evidence that plastic pollution inflicts unacceptable damage on our health — and on that of our children. The industries that are causing this damage are currently acting as free-riders on you, me, all of us, and all our offspring. Priced in, such costs and the price of plastics would multiply some tenfold what it is today. The bill, inevitably, is coming due. Courts, regulators and lawmakers are now paying attention.” - Dr Andrew Forrest, Chairman, Minderoo Foundation.[i]

The research expects that between now and 2030, the social costs from all forms of plastic pollution will extend into hundreds of billions of dollars per annum, largely driven by impacts on human health. For context, the report notes that the global plastics industry was worth $600 billion in 2021. Further, between now and 2030, it forecasts the US to see corporate liabilities reach $20 billion.

Dr Andrew Forrest argued: “For plastics producers, and above all their shareholders and insurers, now is the time to be asking yourself hard questions. What liabilities have your historical emissions left you exposed to?  Are you doing enough to eliminate them in the future?  What will your personal liability be for only looking at your profit and loss statement?” He added: “The question is no longer, are you a good plastics industry director? It is what are you doing to help society reduce then eliminate the burden of ubiquitous and toxic plastic pollution, while you profit from its harm?”[ii]

The Minderoo Foundation expect near term claims to relate to human exposure to additive chemicals, as Forbes note: “In particular, the report says there is “robust scientific consensus” on how additives like certain phthalates, bisphenols and flame retardants are linked with significant health problems, like infertility, type II diabetes and obesity.”[iii] The study also expects claims relating to environmental damage, as well as human exposure to micro and nanoplastics (MNOs). They state that legal action is already building against plastics companies and their directors due to “greenwashing” activities.

Plastics industry urged to take immediate action

There is urgency around tackling the environmental impact of plastics. Plastic waste production has doubled in the past 20 years, and yet at present, just 9% is currently recycled successfully, as the OECD reported in March this year:

“Only 9% of plastic waste is recycled (15% is collected for recycling but 40% of that is disposed of as residues). Another 19% is incinerated, 50% ends up in landfill and 22% evades waste management systems and goes into uncontrolled dumpsites, is burned in open pits or ends up in terrestrial or aquatic environments, especially in poorer countries.”[iv]

A further report by the OECD in June predicts global plastic waste to triple between now and 2060, projecting that global plastics consumption will rise from 460 million tonnes (Mt) in 2019 to 1,231 Mt in 2060 should the world fail to introduce “bold new policies”. It also estimates that nearly two-thirds of plastic waste in 2060 will be from short-lived items such as packaging, low-cost products and textiles.

Minderoo Foundation’s new research calls for immediate action, in the first instance urging investors to demand better environmental and risk-related data from companies in the plastic value chain. It also encourages insurers to account for and better understand exposures to plastic risks and the most appropriate ways to mitigate them.

The research also suggests action on a legally binding global treaty on plastics to recognise and address the cost, prevention, mitigation, and distribution of the harms associated with plastics pollution. It also recognises that further scientific investigation of the material will likely see additional social, health, and environmental issues discovered and feels this must be accounted for. As we noted in March, The UN is currently working on a treaty to end plastic pollution, with broad terms agreed upon at UNEA 5. By the close of the event, it was decided that an intergovernmental committee would be created to negotiate a new legally binding treaty on plastic reduction by 2024.  “The agreement will reflect ‘diverse alternatives’ to address the full lifecycle of plastics, the design of reusable and recyclable materials, and the need for more international collaboration in support of technology, capacity building, and scientific cooperation.”[v]

References

[i] The-Price-of-Plastic-Pollution.pdf (minderoo.org)

[ii] Ibid

[iii] Plastic Pollution Could Trigger Legal Claims Worth Billions Of Dollars, Warns Report (forbes.com)

[iv] Ibid

[v] At UNEA 5 the UN Environmental Program Seeks to Lead the Fight Against Plastic Pollution | Zero Carbon Academy

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Lauren Foye
Head of Reports

Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”

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