A new report suggests that leading plastics companies, both those involved in upstream and downstream activities, are failing to recognise risks to their businesses, such as plastic pollution and low levels of recycling and circularity, in published documents.

The report, Exposing Plastic Risk, published by UK-based think-tank, Planet Tracker (London; www.planet-tracker.org), revealed that the vast majority (83%) of more than 8,000 documents, filings, and transcripts from executives from across the plastics value chain it had studied did not mention any of the risks facing the sector.

Planet Tracker said that although its report had found that the amount of relevant plastic risk disclosures from firms including Saudi Aramco (Dhahran, Saudi Arabia; www.saudiaramco.com) and ExxonMobil (Houston, Texas, USA; www.exxonmobil.com) had increased five-fold in the past five years, with a marked increase in what it called “high quality” disclosures, the disclosures in transcripts have dropped since 2020, “suggesting management rarely discussed plastic-related risks, and/or participants expressed little interest in probing this line of questioning when given the opportunity”. 

The think-tank said that as plastic pollution and its environmental impacts were globally recognised, “this oversight could have severe financial and reputational consequences”.

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The majority of all plastic risk disclosures focused on circularity (73%), while issues around feedstock and pollution featured in only 6% of disclosures in the FMCG sector, despite reports that pollution from the sector caused USD 350 mn (EUR 318 mn). References to microplastics, toxins, refillable, bioplastic, and biodegradable “rarely appeared”, the report added.

Planet Tracker did highlight that a select group of companies were more forthcoming about plastic risks, with Unilever (London; www.unilever.co.uk) as a stand-out, followed by Borealis (Vienna; www.borealisgroup.com) and Berry Global (Evansville, Indiana, USA; www.berryglobal.com).

Thalia Bofiliou, Planet Tracker’s senior investment analyst covering plastics, said, “The plastics industry today faces one of the longest lists of risks of any sector, which should be on the mind of every executive and every financier. 

“Plastic companies across the value chain are displaying a dangerous complacency to very real, and very material, risks. We call for the capital markets to consider these factors in their investments, and push for more concrete change, challenging assumptions and raising these issues with management frequently.”