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A coalition of asset managers is demanding the phaseout of hazardous “without end” chemical substances, the newest transfer by institutional buyers to increase their efforts to deal with environmental dangers past local weather change to biodiversity and human well being considerations.
Broadly utilized in meals packaging, cookware, clothes and carpets, without end chemical substances are a gaggle of greater than 9,000 compounds that don’t break down within the surroundings and are related to human well being issues together with cancers and reproductive abnormalities.
Also referred to as PFAS (perfluoroalkyl and polyfluoroalkyl substances), without end chemical substances have been discovered within the blood of 97 per cent of Individuals, in line with the US authorities.
Aviva Traders and Storebrand Asset Administration have co-ordinated the marketing campaign by 47 institutional buyers with $8tn in mixed belongings. It’s concentrating on 54 chemical substances corporations together with DuPont, 3M, Dow, Eastman Chemical, Air Liquide, Akzo Nobel, BASF, Bayer and Solvay.
The buyers need producers to ascertain a world register of PFAS and particulars of the manufacturing volumes of every of the hazardous substances. Whereas knowledge on the manufacturing and sale of PFAS are printed within the EU and US, this isn’t required elsewhere on this planet.
Simply 4 of the 54 corporations — Indorama in Thailand, Saudi Arabia’s Sabic, Yara of Norway and Belgium’s Solvay — have a public technique to part out hazardous chemical substances, in line with ChemSec, an unbiased non-profit consultancy partly funded by the Swedish authorities.
“Most corporations are taking little or no motion to part out hazardous chemical substances regardless of the dangers to public well being and the surroundings,” stated Sonja Haider, a senior adviser at ChemSec. “They’re turning a blind eye to an unfolding air pollution disaster.”
Eugenie Mathieu, senior ESG analyst at Aviva Traders, stated the dearth of transparency and accountability relating to PFAS was akin to the denials of hurt to people made by tobacco corporations because the Fifties.
“It is extremely tough for customers to keep away from publicity to those dangerous substances and it is important for chemical corporations to be extra clear,” she stated. “Shareholders have very restricted visibility of the potential liabilities arising from without end chemical substances, which is a priority given the expansion within the variety of PFAS lawsuits.”
Victoria Lidén, sustainability analyst at Storebrand Asset Administration, stated it will increase considerations about PFAS at board stage, help shareholder resolutions and vote towards the election of administrators if engagement efforts proved unproductive.
“There has already been an affect on the share costs of chemical corporations due to the reputational and litigation dangers related to PFAS,” Lidén stated. “Firms have already needed to make vital provisions on their stability sheets and these PFAS liabilities may turn into large sooner or later.”
California’s attorney-general, Rob Bonta, alleged in a lawsuit final month that 18 chemical corporations knew in regards to the risks related to PFAS and hid the dangers in lots of circumstances. The lawsuit claims that PFAS have leached into no less than 146 public water programs, serving an estimated 16mn Californians.
“We now have the proof to point out that [PFAS] have harmed untold numbers of Californians,” stated Bonta.
The American Chemistry Council, a commerce affiliation representing producers, stated its members have been “devoted to the accountable manufacturing, use and disposal of PFAS”.
It added: “We proceed to work with [the US government] in direction of sturdy, science-based insurance policies which are protecting of human well being and the surroundings whereas offering for the continued use of this essential chemistry.”
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