180 financial institutions managing $17.2 trillion back plastic treaty

A coalition of 180 financial institutions managing $17.2 trillion in assets signed the Finance Statement on Plastic Pollution, urging governments to adopt a binding global treaty addressing the full lifecycle of plastic. The mobilisation signals investor expectations on plastic-lifecycle risk that Indian manufacturers and ESG-rated firms should anticipate.

Marking World Environment Day, a coalition of 180 financial institutions collectively managing $17.2 trillion in assets signed the Finance Statement on Plastic Pollution, urging governments to adopt a binding global agreement addressing the full lifecycle of plastic. The statement calls for binding country obligations, science-based policy decisions, and a globally coherent framework guiding financial flows, ahead of negotiations reconvening in two months. Microplastics have been found in 99% of seafood and in human breast milk, with plastic waste expected to nearly triple by 2060 to one billion tons annually.

The mobilisation affects banks, insurers, and asset managers operating under frameworks such as the Principles for Responsible Banking and the Principles for Sustainable Insurance, as well as the agriculture and construction sectors flagged as major polluters. Eric Usher, Head of UNEP FI, stressed redirecting capital toward financing solutions. UNEP FI published Navigating Pollution: A Blueprint for the Banking Sector in December 2024, outlining pollution's economic costs, financial risks, and market opportunities in cleaner, more resource-efficient investments for institutions managing exposure.

Financial institutions are urged to act now to mitigate risks, enhance client performance, and fulfil existing commitments under responsible banking and insurance principles. UNEP FI is set to release sector-specific guidance for agriculture and construction next month, offering practical tools for banks supporting clients toward sustainable practices. Stakeholders should monitor the upcoming treaty negotiations in two months and the UN Ocean Conference in Nice, France, which keeps marine plastic pollution, with 11 million tons entering aquatic ecosystems annually, on the international agenda.

Key figure — Coalition backing: 180 financial institutions managing $17.2 trillion in assets