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.

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.

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.

Major fashion brands and retailers are facing significant water-related risks, a new report from Planet Tracker reveals. With water stress on the rise in key manufacturing regions, this report urges companies and investors to prioritise water risk management for long-term sustainability. Financial institutions engage with companies to disclose water usage and risks while supporting strategies to mitigate these risks.

Planet Tracker’s interactive dashboard allows the user to evaluate the level of water stress a brand’s apparel suppliers face. This is possible based on present data and a forecast for 2050.

London 25 March 2024 – Planet Tracker has released a groundbreaking report uncovering the significant water-related risks faced by major fashion brands and retailers, including Adidas (ADS.GR), Gap (GPS.US), H&M (HMB.SS), Inditex (ITX.SM), Levi Strauss (LEVI.US), Nike (NKE.US), PVH Corp (PVH.US), Ralph Lauren (RL.US) and VF Corp (VFC.US).

Planet Tracker analysis of Bayer filings and presentations (e.g. annual reports, earnings calls, shareholder meetings) demonstrates that mentions of litigation have risen since 2020, notably in the annual report. On earnings calls, where analysts are given an opportunity to question the management team, it is also being raised. This hints that the ongoing threat from litigation is seen as of significance to the financial market valuations.

London 7 March 2024 – Betting on resource extraction over nature preservation is a financial mistake, according to Planet Tracker’s latest report, “How to Lose Half a Trillion”.

Mining the deep sea would be an ecological disaster that could cause over USD 500 billion in value destruction. The negative impact on the deep sea’s ecosystem services could lead to natural capital destruction of at least USD 465 billion, predominantly through habitat destruction.