Plastics companies are in line with the rest of the global chemical industry on a range of indicators for the production and management of toxic chemicals, according to the annual ChemScore ranking of the world’s largest public chemical companies.

But for five consecutive years, today’s data reveal, European plastics producers have lagged the rest of the world on their toxic footprint and shown zero improvement, while leading on innovation of safer and circular products. The dismal performance of Europe’s industrial giants is revealed as negotiations for a global treaty to cut plastic pollution begin today in Busan, South Korea.

Commenting on the data, the Financial Times reported today: “The EU consistently presents itself as an ambitious negotiator on climate and environmental matters. … But in Busan, the bloc’s industrial position might undermine that position.”

Sonja Haider, Head of Sustainable Finance at ChemSec, the chemicals watchdog behind the ranking, said: “European plastics companies are presenting themselves as investing in greener chemistry while doing little to lower their existing hazard profile.” 

More than 16,000 chemicals are present in modern plastics, over one-quarter of which are known to be hazardous to human health and the environment. The annual health-related costs of toxic chemicals in plastics are estimated to be more than $330 billion globally. 

“Hazardous substances can end up in the environment and human bodies, creating both biodiversity and human health risks and therefore exposing the producers to regulatory, litigation and reputational risks,” said Mariët Druif, Responsible Investment Officer for pensions manager Cardano. 

“This could be financially material for both the company and its investors, and so we believe it’s important that companies actively start reducing those risks. Identifying and phasing out of hazardous chemicals in plastic polymers, along with transparency about how plastic producers are doing this, will be critical”

Toxic portfolios

In this year’s ChemScore ranking, plastics companies based in Europe continue to make improvements to their overall score, while once again occupying last place for their portfolio of hazardous chemicals. Plastics producers in Asia and the Americas perform only marginally better in terms of their toxic portfolio. 

“The world produces far too much plastic, and far too much of it contains toxic chemicals,” said Anne-Sofie Bäckar, Executive Director at ChemSec. 

The ChemScore index reveals wide variations between individual companies, demonstrating that companies can successfully change their production practices.

Indorama Ventures, the Thailand-based plastics giant, has consistently placed among the top three chemicals companies globally for their management of toxic chemicals.

Yash Lohia, chair of Indorama’s ESG Council, said: “We place sustainability at the centre of everything we do, including how we develop our portfolio of sustainable products, our careful attention to minimizing hazardous chemicals in our processes, and investing in innovation to ensure our products meet increasing demand and industry standards for safer and greener products that take care of our environment and communities.”