A new report published by research network portfolio.earth has calculated that banks have provided $1.7 trillion (€1.39 trillion) in financing to 40 companies involved in the plastics supply chain without imposing compulsory measures to combat plastic pollution accumulating in the rivers and oceans.
Plastic pollution in Ghana. Credit: Muntaka Chasant / Wikimedia
Plastic pollution in Ghana. Credit: Muntaka Chasant / Wikimedia
With banks in Europe and the US increasingly spurning fossil fuel projects, campaigners are urging lenders to take a similar approach to plastics and make loans conditional on increased recycling measures.
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“What the financial sector needs now is someone to step forward and say ‘okay, we’re going to take a look at plastics,’ and then others will follow,” said Robin Smale, director of Vivid Economics, a consultancy which audited the report.
The report, entitled 'Bankrolling Extinction', named Bank of America Corp, Citigroup Inc and JPMorgan Chase & Co as the three largest financial backers of plastics respectively between January 2015 and September 2019.
The report found that each of the three banks provided between $144 billion (€117.5 billion) and $172 billion (€140.3 billion) in loans and other forms of financing to a range of companies including producers of chemicals, packaging and drinks manufacturers.
In Europe, the largest financiers of plastics were named as Barclays and HSBC, providing $118 billion (€96.3 billion) and $96 billion (€78.3 billion) respectively.
Public awareness over plastic pollution has risen sharply in recent years, with highly publicised incidents of plastic contamination appearing in previously untouched environments from the Arctic to the ocean floor.
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The report shows that, of the 20 global banks providing the majority of the plastics manufacturing industry's financing, not one had brought in criteria for due diligence or exclusion.
Banks have the power to reduce the impact of plastic pollution by making financing contingent on strict and ambitious reuse and recycling schemes, as well as by lobbying governments to lend their support to such measures, the report said.
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