Omar Khalid
The world is grappling with a plastic pollution crisis, and it is now clear that a small group of companies and banks are behind the production of most single-use plastics. A recent report found that just 20 companies are responsible for over half of the world's single-use plastic waste, with ExxonMobil topping the list, contributing 5.9 million tonnes of plastic waste globally. These companies have long known that recycling would not be effective on a large scale but have continued to push it as a solution to avoid regulations and maintain demand for their products.
| Characteristics | Values |
|---|---|
| Number of companies responsible for more than half of the plastic thrown away globally | 20 |
| Company that tops the list | ExxonMobil |
| Amount of plastic waste contributed by ExxonMobil | 5.9 million tonnes |
| Companies that follow closely behind ExxonMobil | Dow, Sinopec, Indorama Ventures, Saudi Aramco, PetroChina, LyondellBasell, Reliance Industries, Braskem, Alpek SA de CV, Borealis, Lotte Chemical, INEOS, Total, Jiangsu Hailun Petrochemical, Far Eastern New Century, Formosa Plastics Corporation, China Energy Investment Group, PTT, China Resources |
| Number of companies responsible for 90% of global single-use plastic production | 100 |
| Percentage of commercial finance funding for single-use plastic production that comes from 20 global banks | 60% |
| Amount of loans from these institutions since 2011 | US$30 billion |
| Institutions that have provided loans | Barclays, HSBC, Bank of America |
| Number of asset managers that hold over US$300 billion worth of shares in the parent companies of single-use plastic polymer producers | 20 |
| Amount directly linked to single-use polymer production | US$10 billion |
| Leading asset managers | Vanguard Group, BlackRock, Capital Group |
| Companies that have promoted false solutions to the plastic pollution crisis | Nestlé, Unilever, Coca-Cola, PepsiCo |
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What You'll Learn
A small group of companies are responsible for most throwaway plastic
A small group of companies and banks are responsible for most of the throwaway plastic that ends up as waste worldwide. According to a report by Australia's Minderoo Foundation, just 20 companies produce over 50% of all single-use plastic waste globally. The top 100 companies account for more than 90% of this waste. ExxonMobil tops the list, contributing 5.9 million tonnes of plastic waste globally, closely followed by the US chemicals company Dow and China's Sinopec.
The report also highlights the role of global banks in financing the plastic waste crisis. Close to 60% of the commercial finance for single-use plastic production comes from just 20 global banks, including Barclays, HSBC, and Bank of America. These banks have provided $30 billion in loans to the sector since 2011. Twenty asset managers hold over $300 billion worth of shares in the parent companies of single-use plastic polymer producers.
The plastic pollution crisis has devastating ecological, social, and environmental consequences. The United Nations is working on a legally binding agreement to address the problem, and U.N. member states are meeting to develop a legally binding instrument on plastic pollution.
While some companies have signaled their intent to make plastic packaging more recyclable, reusable, or compostable, they continue to invest in single-use plastic packaging. Greenpeace USA warns consumers to be skeptical of so-called solutions, such as switching to paper or bioplastics, as these do not address the core issue of single-use packaging.
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ExxonMobil is the biggest polluter
A small group of companies and banks are responsible for the production of most single-use plastics, and ExxonMobil tops the list as the biggest polluter. ExxonMobil is an American multinational oil and gas company that has released more than 40 billion metric tons of carbon dioxide equivalent since 1965. In 2023, the company's equity-based greenhouse gas emissions totaled 111 million metric tons of carbon dioxide, making it one of the largest contributors to global greenhouse gas emissions.
ExxonMobil's Baton Rouge refinery in Louisiana is the top polluter among its facilities, averaging 138 pounds of emissions per hour. This is eight times more than the average rate of similar-sized refineries. The company's three largest refineries, two in Texas and one in Louisiana, are the top three emitters of small particulate matter in the United States. These refineries' emissions have harmful health impacts, including damaging the heart, lungs, and nervous system. Poor and minority communities, often located near industrial sites, bear the brunt of these health consequences.
ExxonMobil's plastic waste production is also significant. The company contributes 5.9 million tonnes to global plastic waste, making it the largest producer of single-use plastic among the top 20 companies responsible for over half of the world's throwaway plastic waste.
ExxonMobil's actions have drawn criticism from climate activists and scientists. Despite the company's claims of investing billions to reduce emissions, its failure to implement emissions-reducing technology at its refineries, particularly the Baton Rouge plant, has been highlighted. The company's high pollution levels persist due to an EPA exemption for plants constructed before 1976, allowing Louisiana regulators to set higher pollution thresholds.
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Banks are funding plastic production
A recent study reveals that only 20 companies are responsible for producing over 50% of the single-use "throwaway" plastic that ends up as waste worldwide. ExxonMobil, Dow, and Sinopec are the top three contributors to global plastic waste. The report also identifies 17 other companies that are among the biggest producers of single-use plastic.
However, it's not just these companies that are responsible for the plastic waste crisis. The financing of single-use plastics involves lending and investment by major banks and institutional asset managers. Close to 60% of the commercial finance funding of single-use plastic production comes from just 20 global banks. These include Barclays, HSBC, and Bank of America, which have collectively lent $30 billion to the sector since 2011. Twenty asset managers, including Vanguard Group, BlackRock, and Capital Group, hold over $300 billion worth of shares in the parent companies of single-use plastic polymer producers.
The banks' role in funding plastic production has been criticised for a lack of urgency in addressing the global plastic crisis. Maria Westerbos, Director of the Plastic Soup Foundation, stated that "banks can play a crucial role in changing the direction of plastic production." The banking sector has been criticised for its lack of policies to deal with the risks associated with financing companies in the plastic supply chain, including the detrimental impact of plastic on climate, nature, and human health.
It is important to note that consumer pressure is key in driving a transition towards a circular economy based on recycled materials. However, real action is needed from companies, investors, and governments to address the plastic waste crisis effectively.
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Petrochemical companies are the source of the crisis
The plastic waste crisis is a critical global issue with devastating ecological, social, and environmental consequences. While consumer goods companies have been the focus of responsibility for their use of non-recyclable and mismanaged single-use plastics, the source of the crisis lies upstream with petrochemical companies.
Petrochemical companies are at the heart of the intertwined global crises relating to plastics, climate, and toxic emissions. The industry's reliance on fossil fuels as feedstock and energy sources has resulted in the overproduction of plastics and toxic emissions. In 2021, the world generated 139 million metric tons of single-use plastic waste, a significant increase from previous years. This waste ends up in our oceans, injuring and killing marine life, spreading toxins, and posing threats to human health.
A recent study revealed that just 20 companies, led by ExxonMobil, are responsible for over half of the global single-use plastic waste. These companies, including Dow, Sinopec, Indorama Ventures, and Saudi Aramco, produce massive quantities of plastic that contribute to the waste crisis. The petrochemical industry has responded to market warning signs by directing attention toward behavior change from end-users, rather than addressing the root cause of the problem.
The industry also faces a financial crisis, with structural oversupply, collapsing profit margins, and fierce global competition driving its long-term decline. Despite these warning signs, governments continue to provide substantial subsidies, with an estimated $43 billion spent by the top 15 producing countries in 2024. This support sustains an outdated model built on environmental harm, overproduction, and externalized costs.
To address the plastic waste crisis, petrochemical companies must move towards circular-economy-based alternatives. This includes transitioning from virgin polymers derived from fossil fuels to recycled materials. Additionally, investors should scrutinize the high-demand growth assumptions for plastics and other petroleum-based products, as the proposed expansion of plastic production raises red flags.
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Consumers need to pressure companies to reduce single-use plastic
The problem is not just the production of single-use plastics but also the throwaway culture that surrounds them. Companies prioritize convenience and cheap, flashy packaging over durability and long-term sustainability. As a result, we are accumulating waste at an alarming rate. The world doubled its plastic production between 2000 and 2019, and by 2040, plastic production and use are expected to increase by 70% compared to 2020 levels. This waste often ends up in our oceans, with an estimated 75-199 million tons of plastic waste currently polluting the marine environment.
Consumers can play a crucial role in pushing for change. We can support local plastic bans, contact our government representatives, and raise awareness through social media and conversations with our neighbors. We can also let companies know that we care about packaging by calling or writing to them and asking them to switch to reusable, recyclable, or recycled-content packaging. Individual actions, such as avoiding bottled water, using reusable bags, and cooking at home instead of ordering takeout, can add up to collective shifts that make a significant impact.
However, the real action needs to come from the companies, investors, and governments responsible for enabling this waste generation. They must break the pattern of inaction and disclose their data on single-use plastic production. Policies and government frameworks, such as the global plastics treaty under development, can spur action from private industry. For example, bottle bill laws can increase corporate responsibility for waste while providing monetary incentives for consumers to recycle. By combining consumer pressure with industry and government action, we can effectively address the single-use plastic crisis.
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Frequently asked questions
A small handful of companies and banks are behind the production of most single-use plastics. Twenty companies are responsible for producing over 50% of the throwaway single-use plastic that ends up as waste worldwide.
ExxonMobil tops the list, contributing 5.9 million tonnes to global plastic waste, followed by the US chemicals company Dow and China's Sinopec.
Other companies include Indorama Ventures, Saudi Aramco, PetroChina, LyondellBasell, Reliance Industries, Braskem, Alpek SA de CV, Borealis, and Lotte Chemical.
In 2019, more than 130 million metric tons of single-use plastics were thrown away, with most of that waste burned, buried in landfills, or dumped directly into the ocean or onto land.
To reduce plastic waste, we need to move towards a circular economy based on recycled materials rather than virgin polymers from fossil fuels. Consumer pressure is key, but companies, investors, and governments must also take action.
