Waste is rapidly emerging as a critical concern for businesses, regulators and investors alike. With the anticipated finalization of a Global Plastics Treaty by the end of 2024, waste management is becoming central to the ESG agenda, reshaping corporate strategies and innovation. As we move closer to this regulatory milestone, the interplay between policy, market forces and corporate strategy offers risks and opportunities, underscoring the need for a circular approach to resource management.
In 2022, 175 nations adopted the UNEA Resolution1 to End Plastic Pollution, signaling a global push to curtail waste. The forthcoming treaty could reduce plastic pollution 80 percent by 2040 using existing technologies, according to the United Nations Environment Programme (UNEP). Parallel efforts, such as the EU’s Packaging Regulation2, target a 15 percent % reduction in packaging waste per capita by 2040 and 100 percent % recyclability by 2030. The US has expressed interest in joining this resolution, though this commitment may shift under president-elect Donald Trump. However, state-level action is likely to persist, with multiple states introducing extended producer-responsibility (EPR) laws3 that hold companies accountable for end-of-life management of their products. These initiatives reflect the urgency of transitioning away from a linear “take-make-waste” model to a circular economy that prioritizes waste reduction, reuse, and recycling.
These regulatory frameworks coincide with heightened investor scrutiny. On Bloomberg Intelligence’s podcast, ESG Currents, we recently discussed how investor coalitions such as Nature Action 100 are pressuring companies to address nature-related risks involving waste like microplastic pollution and hazardous chemical runoff. Featured guest Adam Kanzer, the head of Stewardship Americas at BNP Paribas Asset Management, detailed how corporate engagement and proxy voting can drive meaningful progress on these issues.