The PRI (UN Principles for Responsible Investment) have published new guidance for investors on how to engage with companies on plastic waste and pollution. With expert contribution from the Foundation, the Investor Engagement Guides set out how investors can address the challenge of plastic waste and pollution by engaging with companies along the plastics value chain, and assessing their circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. performance.
The guidance is the first comprehensive and practical framework for investors to mitigate risks related to investments in plastic packaging, and focuses on four key sectors across the plastics value chain:
petrochemicals
containers and packaging producers
fast-moving consumer goods (FMCGs)
waste management
Innovation, customer preferences, and stricter legislation are rapidly transforming the plastics sector and creating opportunities and risks for investors. By engaging with large users, producers, and recyclers of plastic packaging and asking them to take action on their portfolio, investors have an opportunity to address plastic waste and pollution. Using the New Plastics Economy Global Commitment as a framework, the guides will increase pressure on businesses to adopt circular economy principles, set ambitious time-bound targets, and report transparently on progress towards a circular economy for plastic.
