€678 billion of investor capital is at risk because of the European plastic industry’s current business model, says a new Planet Tracker report. According to the think tank’s analysis, the industry’s inability to compete globally means it is “primed for disruption” and transition towards more sustainable business models, which it described as “the most viable route” to avoid stranded assets. The EU’s plastic sector recorded zero growth from 2010 to 2019, according to Planet Tracker, despite global gains in plastic production. Financial backing for the 87 companies responsible for 75% of plastic production across the EU, is covered by 40 banks, brokers, insurers and investment managers, it said. In the last five years, just nine resolutions have been raised at AGMs to introduce new policies, “reflecting the current level of ambivalence” on the need for change. In Planet Tracker’s analysis of 990 corporate loans issued to major plastics manufacturers, it found just three were linked to decreasing plastic pollution. The report called on investors to “probe” executives on how they assess the impact of headwinds and plan to increase future returns.
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