A group of 23 investors managing $4.1 trillion in assets is pressing the world’s biggest chemical companies to phase out production of hazardous substances that pose health and environmental risks, according to an article from U.S. News & World Report. The investors reportedly sent a letter to the world’s 50 biggest chemical producers calling for increased transparency around the number of substances “of high concern” they produce each year. Eugenie Mathieu, senior analyst at Aviva Investors, tells Reuters, "We believe sustainable management of chemicals is key to financial outperformance."
According to the article, the investors want to see chemical producers focus first on phasing out “persistent chemicals” like PFAS, given growing regulatory and legal concerns. They also want companies to establish plans for developing products that can be reused, as part of the “circular economy.” The letter reportedly states, "The chemical industry sits at the start of the supply chain so has a role to play in driving the circular economy forward," and cites examples such as using waste or bio-based material as feedstocks.
Read the entire article here.