(Thursday 26th June) Today, more than 44 investors with over $4 trillion in assets under management are calling on chemical companies to phase out highly hazardous chemicals and transition to safer alternatives to protect biodiversity and human health.
In a joint statement, investors warn that the chemical sector is not transitioning fast enough to protect vital ecosystems, saying companies are not robustly mapping their dependencies and impacts on nature or taking advantage of the strong market potential for sustainable and safer alternatives to hazardous chemicals. Signatories include Caisse des Dépôts et Consignations, SVVK-ASIR, Achmea Investment Management, BNP Paribas Asset Management, Swedbank Robur and Impax Asset Management.
The call from investors, coordinated by responsible investment NGO ShareAction, Achmea Investment Management, ChemSec, Erste Asset Management, IEHN of Clean Production Action, Planet Tracker and Mercy Investment Services, comes as stakeholders 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.
Alexandra Pinzon, Head of Biodiversity at ShareAction, said: “Chemical companies have a huge role to play in curbing pollution, which would help address the interlinked crises of biodiversity loss and climate change. The majority of manufactured products, from fertilisers and paints to makeup and clothes, rely on chemicals, but the toxicity and pollution associated with these chemicals is wreaking havoc on ecosystems and damaging human health.
“Today, responsible investors have made it clear that the chemical sector must align with global efforts to address the impacts of nature loss by transitioning away from highly hazardous chemicals. They want to see chemical companies develop robust biodiversity strategies and strengthen their disclosures to mitigate the financial risks associated with chemical pollution and continued destruction of nature.”
The signatories are urging companies, including agrochemical producers, to commit to aligning their business strategies and political activities with the globally agreed-upon frameworks including the Kunming-Montreal Global Biodiversity Framework and the Global Framework on Chemicals – For a Planet Free of Harm from Chemicals and Waste. This includes enhancing their biodiversity disclosures and developing robust biodiversity strategies to transition their product portfolios to safe and sustainable solutions.
They argue that failing to address chemical pollution exposes companies and their investors to financial risks. Increased public awareness and scientific understanding of the long-term health and environmental consequences of chemicals has already led to a rise in litigation and regulation.
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.”
Arthur van Mansvelt, Senior engagement specialist at Achmea Investment Management, said: “This statement shows investors are deeply concerned that the chemical sector is not sufficiently mitigating the risks related to biodiversity loss from pollution. To remain a solid investment, the sector must do more to reduce their harm to nature and align their product portfolios with the goals of the Global Biodiversity Framework.”
In a separate policy-focused statement, more than 41 investors with over $3.9 trillion in assets under management emphasise the crucial role that regulation plays in enabling the transition of the chemical 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.
Notes to editors
The statement directed towards the chemical industry can be read in full here. The full list of investor signatories is the following: Achmea Investment Management, Adasina Social Capital, Adrian Dominican Sisters - Portfolio Advisory Board, AEGON Asset Management UK, AEGON Investment Management BV, Æquo Shareholder Engagement Services, AP2, AP3, BNP Paribas Asset Management, Caisse des Dépôts et Consignations, Congregation of St. Joseph, Crédit Mutuel Asset Management, Daughters of Charity - Province of St. Louise, Domini Impact Investments LLC, Ecofi Investissements, Erste Asset Management GmbH, Etica Funds - Responsible Investments, Folksam, Första AP-fonden (AP1), Handelsbanken Fonder, Huisarts & Pensioen, Impax Asset Management, IRCANTEC, LBP AM, Luzerner Kantonalbank, Maryknoll Sisters, Mercy Investment Services Inc, Mirova, NN Group, Osmosis Investment Management, Pensioenfonds Vervoer, Pensionskasse Basel-Stadt (Pension fund of Basel-City), PFA Pension, Pictet Group, Radicant, Rathbones Group, Regnan, Socially Responsible Investment Coalition, Storebrand AM, SVVK-ASIR, Swedbank Robur Fonder AB, The Committee on Mission Responsibility Through Investment of the Presbyterian Church (U.S.A.), Trinity Health, Trusteam Finance.
This statement outlines recommendations on what constitutes best practice for identifying, disclosing and addressing the risks that chemical companies’ product portfolios pose to biodiversity via pollution. It does not intend to address the full spectrum of drivers of biodiversity loss associated with the chemical industry, focusing instead on pollution and biodiversity loss, specifically concerning Target 7 of the Global Biodiversity Framework and the Global Framework on Chemicals, particularly Target A7.
The statement directed towards policymakers can be read in full here. The full list of investor signatories for this statement is the following: Achmea Investment Management, Adrian Dominican Sisters - Portfolio Advisory Board, AEGON Asset Management UK, AEGON Investment Management BV, Æquo Shareholder Engagement Services, AP2, AP3, BNP Paribas Asset Management, Caisse des Dépôts et Consignations, Congregation of St. Joseph, Crédit Mutuel Asset Management, Daughters of Charity - Province of St. Louise, Domini Impact Investments LLC, Ecofi Investissements, Erste Asset Management GmbH, Etica Funds - Responsible Investments, Folksam, Handelsbanken Fonder, Huisarts & Pensioen, Impax Asset Management, IRCANTEC, Luzerner Kantonalbank, Maryknoll Sisters, Mercy Investment Services Inc, NN Group, Osmosis Investment Management, Parnassus Investments, Pensioenfonds Vervoer, Pensionskasse Basel-Stadt (Pension fund of Basel-City), PFA Pension, Pictet Group, Radicant, Rathbones Group, Regnan, Socially Responsible Investment Coalition, Storebrand AM, SVVK-ASIR, Swedbank Robur Fonder AB, The Committee on Mission Responsibility Through Investment of the Presbyterian Church (U.S.A.), Trinity Health, Trusteam Finance.
- According to scientists, the planetary boundaries for chemical pollution have already been crossed, meaning that current levels of chemicals and plastics threaten the planet’s ability to sustain life.
- More than 11,500 animal species are impacted by pollution, according to the Red List compiled by the International Union for Conservation of Nature.
