Corporate Plastic Waste: A Troubling Environmental Concern

Plastic pollution is one of the greatest threats to our planet, and the plastic waste crisis is worsening. A small group of companies and banks are responsible for the production of most single-use plastics, which account for over a third of plastics produced annually. Twenty companies are responsible for producing over half of the world's single-use plastic waste, with ExxonMobil topping the list, contributing 5.9 million metric tons of waste in 2019. These companies are supported by a small number of financial backers, with nearly $30 billion of loans from 20 global banks, including Barclays, HSBC, and Bank of America. The plastic waste crisis is closely linked to the climate crisis, as most plastic is made from oil and gas, and by 2050, plastic is expected to account for 5-10% of greenhouse gas emissions.

Fossil fuel companies and their role in plastic production

Fossil fuel companies play a significant role in plastic production, which has become a critical environmental concern. Plastic pollution is one of the greatest threats facing our planet, and the plastic waste crisis is closely intertwined with the climate crisis. The production and consumption of plastic are becoming a significant driver of climate change, emitting greenhouse gases and other harmful toxins.

A study by the U.S. federal government found that 20 companies, including Exxon Mobil, Dow, and China's Sinopec, are responsible for half of the world's single-use plastic waste. These companies, backed by financial institutions, continue to expand the production of single-use plastics, despite their detrimental impact on the environment. Fossil fuel and petrochemical companies are relying on emerging economies in Asia and Africa to drive growth, as the developed world is already saturated with plastics.

Plastic has been described as the fossil fuel industry's "Plan B" as it seeks to maintain profit margins in a world transitioning to renewable energy. While the plastics industry is relatively small compared to oil and gas, it benefits from the influence of the fossil fuel lobby. Fossil fuel companies are investing in plastic production, expecting it to be a source of future revenue. However, legislative and corporate efforts to curb new plastic production may hinder their plans.

The externalities of plastic production are significant, including CO2 emissions, air pollution, waste management, and ocean cleanup. The impact of plastic waste is felt disproportionately by communities of color and low-income communities. To address the plastic waste crisis, intervention is needed from producers, governments, and the financial sector. Efforts such as the EU Directive on Single-Use Plastics aim to reduce virgin plastic production and promote recycled content, holding producers accountable for waste management and cleanup.

As the connection between plastic production and climate change becomes more apparent, policymakers must recognize that plastics are a form of fossil fuels. Climate mitigation policies must include measures to reduce reliance on single-use plastics and unnecessary plastic packaging. It is crucial to address the entire lifecycle of plastic, from production to disposal, to combat the growing plastic crisis effectively.

The top 20 companies producing 55% of plastic waste

According to a report by NPR, 20 companies are responsible for producing half of the world's single-use plastic waste. Exxon Mobil, a US oil and gas company, tops the list with 5.9 million metric tons of plastic waste in 2019. Dow and China's Sinopec closely follow, contributing 5.6 million and 5.3 million metric tons, respectively. Together, these three companies account for 16% of all waste from single-use plastics.

The report also highlights the disconnect between the promises made by these companies and their actual actions. While many have marketed their commitment to sustainability, they plan to increase virgin plastic production rather than reduce it. Only 2% of single-use plastics created in 2019 were made from recycled materials. Furthermore, the global capacity to produce virgin polymers for single-use plastics is expected to grow by more than 30%, and plastics could account for 5-10% of greenhouse gas emissions by 2050.

The plastic waste crisis is closely intertwined with the climate crisis, as most plastic is derived from oil and gas, especially fracked gas. The production and consumption of plastic are becoming significant drivers of climate change, emitting harmful toxins that disproportionately affect low-income communities and people of color.

To address the plastic waste crisis, real effort is needed to pressure these companies and their financial backers. Daily behavior changes are no longer sufficient to combat plastic pollution. Individuals can get involved by supporting sustainable policies, researching and supporting sustainable businesses, and participating in beach or park cleanups to collect and recycle discarded plastics.

The impact of plastic waste on the environment

Plastic pollution is one of the most critical threats to the planet, with the current outlook expected to worsen. The impact of plastic waste on the environment is far-reaching and devastating. As plastic does not biodegrade, it persists in the environment for hundreds of years, causing a range of issues.

One of the most visible impacts of plastic waste is on the oceans and marine life. Every year, about eight million tons of plastic waste escape into the oceans from coastal nations. Once at sea, larger pieces of plastic break down into microplastics, which are virtually impossible to recover. These microplastics have been found in every corner of the globe, from Mount Everest to the Mariana Trench, and are spread through the air and water systems, including drinking water. Marine wildlife is harmed by this plastic pollution, which they can ingest or become entangled in, leading to choking and other serious health issues.

Soil ecosystems are also negatively impacted by plastic waste. Effluent and sludge from wastewater treatment plants contain microplastics, which are then transferred to agricultural land, polluting the soil. This increase in plastic and microplastic pollution in soils affects plant growth and fertility and has adverse consequences on the microorganisms in the soil.

The production of plastic also contributes to the climate crisis. As plastic is made from fossil fuels, it generates a significant amount of greenhouse gas emissions. In 2019, plastics produced 1.8 billion metric tons of greenhouse gas emissions, contributing to 3.4% of the global total. By 2050, plastics are expected to account for 5-10% of global greenhouse gas emissions.

The impact of plastic waste on human health is also a growing concern. With the widespread presence of microplastics in the environment, these particles have been found in people's blood, lungs, and feces. The exact health implications of this are still being studied, but the potential harm is significant.

The role of banks in funding plastic production

Banks have been called out for their role in financing plastic pollution. A report by portfolio.earth, titled Bankrolling Plastics, reveals that banks have provided more than $1.7 trillion in funding to 40 companies with significant involvement in the global plastics supply chain. This includes companies in the polymer, packaging, fast-moving consumer goods, and retail industries. The report argues that banks are lending vast sums of capital without addressing the plastic pollution crisis, failing to introduce due diligence systems or financing exclusions for the plastics industry.

Since 2011, 20 of the world's largest banks, including Barclays, HSBC, and Bank of America, have donated nearly $30 billion to single-use plastic polymer production. These banks, along with top asset managers like Vanguard Group, BlackRock, and Capital Group, have come under scrutiny for their financial backing of companies contributing to plastic waste.

To reduce the demand for plastics, banks are encouraged to support industries in adopting alternatives to plastic packaging and components, as well as investing in new forms of logistics and deposit systems. By doing so, banks can play a pivotal role in mitigating the environmental and health impacts of plastic pollution, which affects biodiversity, climate, and communities worldwide.

The ineffectiveness of blaming consumers

While consumers are often blamed for the accelerating plastic crisis, this narrative overlooks the role of the plastic industry in perpetuating a broken system. The reality is that the mass production of plastic, a material that endangers communities and contaminates the climate, is unsustainable and unacceptable.

The plastic industry has a long history of deflecting attention from its own responsibilities by pointing fingers at consumer recycling habits. This tactic has successfully distracted the public from the real issues and solutions. For example, the recycling system in many countries is broken, with much of the waste placed in recycling bins not actually being recyclable. This was further exacerbated by China's "National Sword" policy in 2018, which banned waste imports and set strict standards for the plastic it would accept. As a result, the costs for dealing with plastic waste have fallen back on communities in the US.

Additionally, the plastic industry has a financial incentive to continue producing single-use plastics. Fossil fuel companies are expanding the production of single-use plastics, and it is estimated that by 2050, plastics could account for 5-10% of greenhouse gas emissions. The global capacity to produce virgin polymers for single-use plastics is expected to grow by more than 30%, and many of the top companies have plans to increase their production of virgin plastics, despite their marketing campaigns dedicated to sustainability.

To effectively address the plastic crisis, it is crucial to shift the narrative from consumer behaviour to producer responsibility. This includes holding plastic manufacturers accountable under producer responsibility laws, implementing Extended Producer Responsibility (EPR) policies, and enacting legislation to phase out harmful chemicals used in packaging plastics. Additionally, governments should consider taxes on virgin plastic to incentivize the use of alternative materials and create a market for effective plastic recycling. By focusing on these systemic solutions, we can move beyond the ineffective blame game and work towards a more sustainable future.

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