Investors call for corporate and government action on toxic chemicals

A coalition of investors has urged chemical companies to address the systemic risks posed by pollution, biodiversity loss, and climate change, with governments also being asked to step up on hazardous chemicals.

More than 40 investors with over $4trn (€3.4trn) in assets under management have signed a statement arguing for more action from the chemical sector, which they said is not transitioning fast enough to protect vital ecosystems.

Signatories include AP2, AP3, Caisse des Dépôts et Consignations, SVVK-ASIR, Achmea Investment Management, Swedbank Robur and Impax Asset Management.

The call from investors, coordinated by responsible investment NGO ShareAction, comes as stakeholders this week gather in Uruguay for the next phase in the Global Framework on Chemicals, where the goal is to strengthen action to tackle the crisis of pollution from chemicals and waste.

Julie Gorte, senior vice president, sustainable investing, at Impax Asset Management, said: “This statement on the importance of tackling pollution and biodiversity loss has never been more welcome. If we want to avoid a planetary catastrophe, we must all act to achieve a circular economy and eliminate the pollution that is one of the major drivers of biodiversity loss.”

The investor statement directed to the chemicals industry outlines recommendations on what constitutes best practice for identifying, disclosing and addressing the risks that chemical companies’ product portfolios pose to biodiversity via pollution.

Investors have also put their name to a policy-focused statement that emphasises the crucial role that regulation plays in enabling the transition of the chemicals industry to safe and sustainable products. They outline recommendations for governments around the world to strengthen and harmonise global policy frameworks on chemicals to support this transition.

Yesterday UK politicians gathered for a hearing about synthetic substances known as “forever chemicals” and approaches to regulating them. The EU is currently seeking to regulate PFAS as an entire class of chemicals and allow them to be used only when proven essential.

Air pollution

Investors also have air pollution on their minds. Last week, investors coordinated by ShareAction issued a public statement urging companies to take stronger action on air pollution, warning that corporate air pollution is hugely underestimated in financial risk assessments and corporate sustainability strategies.

The NGO is working closely with CCLA as the charity-focused asset manager has an air pollution-focused initiative of its own. 

Signatories of the air pollution statement include Achmea, NEST and Ethos Foundation.

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