What are the key takeaways for financial institutions from the fourth negotiating round of the global plastic treaty? There are five key considerations: the scope of the treaty remains contentious; chemicals of concern will be discussed in the intersessional meetings; plastic production limits will not be discussed until late November; industry wants to avoid a producer pays approach to financing the plastic pollution clean-up; a record turnout of attendees.

Petrochemical companies are a major contributor to plastic production, increasing the threat of plastic pollution, climate change, biodiversity loss and human health impacts.

The chemical industry, generating USD 5.7 trillion in annual revenues (2022) and directly employing over 15 million people, plays a pivotal role in the global economy. Its products are integral to various sectors, making chemical components essential for 96% of all manufactured goods.

Planet Tracker’s report, Tomorrow’s Chemistry, presents a comparative analysis of the Climate Transition Assessments (CTAs) of seven leading chemical companies, Air Liquide (AI), BASF (BAS), Bayer (BAY), Dow (DOW), Incitec Pivot (IPL), LyondellBasell (LYB), and Toray Industries (3402), shedding light on their commitments, strategies and readiness to align with the Paris Agreement and achieve Net Zero emissions by 2050.

Ahead of Earth Day on April 22, S&P Global explores how plastic impacts human health and the environment, how companies and investors are approaching the topic, and what to expect from international plastic treaty negotiations starting April 23.

As the fourth negotiating round of the global plastic treaty approaches, what should financial institutions be looking out for? There are five main considerations: are upstream petrochemical producers in scope; Will hazardous chemicals be called out; Will there be product restrictions? Who will finance the transition? Will the final treaty text be mandatory or voluntary? The implications for the financial markets could be significant.

The US Environmental Protection Agency (EPA) issued its Final Rule for Synthetic Organic Chemical Manufacturing Plants & Polymers & Resins. The aim of this rule is to reduce cancer and serious health effects from toxic air pollutants and smog-forming compounds. This is relevant to financial markets which are seeing externalities being converted into internal costs for corporates. Financial models may need reassessing.

Listen to Planet Tracker’s Filippo Grassi on the #FixedOnESGPodcast for a conversation on measuring and investing in nature and biodiversity with Alistair Shepheard-Walwyn, ESG Specialist.

In this episode of Unplugged, Robin Millington, CEO of Planet Tracker, addresses the urgency of environmental challenges and the need for action.

Legislative time is running short before the European Parliamentary elections on 6-9 June 2024. Corporates and investors should watch this pre-election period with considerable interest. European legislators are working on a range of regulations to finalise their adoption at the final Parliament Plenary sessions this month. These range from nature restoration and anti-greenwashing requirements, to waste & packaging and supply chain due diligence controls.