A group of 185 investors with over $10 trillion in assets has called for urgent action to reduce single-use plastic packaging among intensive users in the fast-moving consumer goods (FMCG) and grocery retail sectors. The investors referred to the severe environmental, climate, biodiversity, human rights, and public health threats posed by the entire plastics lifecycle (FPF reported). Due to these impacts, they expressed concern over the financial risks to companies and investors, including regulatory, reputational, and raw material cost risks.
Despite commitments by companies to reduce plastic use, the Ellen MacArthur Foundation’s 2022 Progress Report revealed that many are not on track to meet their 2025 target for reusable, recyclable, and compostable packaging (FPF reported). The investors’ statement highlighted that “actions taken by companies to date have failed to have impact on the scale and at the rate required.” Further emphasizing that companies “must set a clear vision to drastically reduce consumption of single-use plastic packaging in absolute terms.”
Investors are calling for companies to publicly support the European Union’s Packaging and Packaging Waste Regulation’s (PPWR’s) ambitions. Accordingly, the investors “expect companies… to refrain from lobbying to reduce this ambition and to ensure that industry associations to which they are a member act in accordance with this position.” Additionally, they call for companies to establish clear plans for reducing material consumption, prioritize the elimination of single-use packaging, upscale reusable packaging systems, and address toxicity in their value chains.
In counterpoint, McDonald’s and several other FMCG-related companies have been campaigning against the reuse targets of the PPWR reform. According to an article in DeSmog, “McDonald’s is responsible for over a billion kilos of packaging every year.” Continuing, “[f]ast food giants and packaging firms are opposed to the proposed EU law, campaigners and academics suggest, because it would likely require significant investment and infrastructure upgrades, as well as shifts in company packaging, branding and marketing.” The reuse targets as originally written by the European Commission would ban single-use packaging when dining in and increase reusables for takeaway food to 10%, both by 2030 (FPF reported). Though those goals may become weakened during negotiation (FPF reported).
Concerning hazardous chemicals in food packaging, the investors specifically recommended adhering to the Understanding Packaging (UP) Scorecard list of chemicals of concern. This list was developed based on research and information from civil society and industry associations, including the Food Packaging Forum and includes over 650 chemicals organized into three tiers by level of concern.
References
Investors (May 3, 2023). “Investors call for urgent action to reduce plastics from intensive users of plastic packaging.” VBDO (pdf).
VBDO (May 4, 2023). “Investors with US$10 trillion AuM call on corporates to drastically ramp up action on plastics.”
Claire Carlile (May 8, 2023). “McDonald’s leads lobbying offensive against laws to reduce packaging waste in Europe.” DeSmog
Read more
Darrel Moore (May 5, 2023). “Investors call on corporates to ‘drastically ramp up action’ to address ‘plastics crisis’.” Circular
Packaging Europe (May 5, 2023). “Investors call upon corporations to cut down on plastics and chemicals and uplift reduction policies.”
As part of an experiment with newly available tools, this article was written with assistance from ChatGPT. The author reviewed, edited, added to, and revised the language to suit the style and form of the Food Packaging Forum.
