Search this website. You can use fund codes to locate specific funds

Investor expectations for global plastics challenges

EOS publishes new Investor Expectations for Global Plastics Challenges

Fast reading

  • Companies reliant on the take-make-waste model will face substantial commercial risks in coming years

  • In 2020 and beyond, we are amplifying our engagement in the chemicals, consumer goods and retail sectors

  • Our report concludes with a series of questions that investors can put to companies

Investors are concerned that a failure to account for the negative impacts of plastic has resulted in numerous interlinked challenges – from acute environmental pollution and potential human health impacts, to substantial greenhouse gas emissions across plastics value chains. We believe that the linear, take-make-waste model for plastics has become unacceptable and companies reliant on this model will face substantial new commercial risks in coming years.

We expect companies to move from treating plastic as an externalised risk, to developing strategies that consider it as a resource requiring responsible management and value preservation – in partnership with suppliers, customers, processors and regulators.

Our engagement activity focuses on businesses engaged in the manufacturing of chemicals for plastics, and the design, marketing and retailing of consumer goods. In 2020 and beyond, we are amplifying our engagement in the chemicals, consumer goods and retail sectors by setting objectives for high-risk companies and targeting outcomes that address opportunities and risks.

We take a bespoke approach to each company exposed to plastics value chains, which takes the maturity of the company into account. Our approach considers all the elements relating to a sustainable plastics strategy, including the management, governance and disclosure.

For each sector in this report, we believe companies should be on a journey of change. This report concludes with a series of questions that investors can ask companies at each point on this journey. Without a cogent, disclosed journey on the sustainability of plastics and packaging, we believe many companies will face significant scrutiny from investors and stakeholders.

Related Insights

Shouting, but barely heard
Many frontline workers lack a voice and have been disproportionately impacted by the pandemic.
From farm to fork - key challenges for global food systems
Animal agriculture plays an outsized role when it comes to contributing to the climate crisis, as well as other environmental and social issues.
Flexible and vulnerable - the gig worker's dilemma
The pandemic has highlighted society’s dependency on the gig economy to provide essential services, and the exacerbated risks associated with precarious work.
Key issues for Japan’s 2021 voting season
We have stepped up our voting recommendations at Japanese companies, particularly on gender diversity and climate change.
Novartis case study
Novartis has increased its board gender diversity, appointed its first new auditor since 1940 and shown leadership on artificial intelligence.
How the pandemic is widening racial and ethnic inequities
The pandemic widened pre-existing racial and ethnic disparities and will continue to exacerbate those inequities unless more is done.

EOS Client Service and Business Development

Amy D’Eugenio,
Head of Client Service and Business Development, EOS