The scale of plastic pollution is staggering, over 500 million tons of plastic are produced annually, much of which ends up polluting our ecosystems, harming wildlife, and even entering our bodies. Recent studies have even found plastic particles in human blood and brain tissue. Despite this, banks continue to finance companies responsible for the unchecked production of plastics.
The Plastic Banks Tracker, a collaboration between Profundo, BankTrack, and the Plastic Soup Foundation, shines a light on the role that banks play in financing the global plastics supply chain. From polymer producers to retailers and waste management companies, the entire plastics lifecycle is reliant on bank funding. However, very few banks have developed comprehensive policies to reduce or eliminate their financing of the plastics industry.
Banks Ignoring the Plastics Crisis
The research evaluated 20 of the world’s largest banks, all of which are deeply involved in the plastics supply chain. The findings are clear: none of these banks are leaders in addressing the plastics crisis. Although some banks have made progress in policies related to climate, nature, and health, these measures largely ignore the specific impact of plastics.
Among the banks assessed, only two—Germany’s ProCredit and Dutch banking group ING—showed progress in acknowledging the issue and demonstrating some level of commitment. ProCredit was classified as a moderate achiever, while ING was labeled a follower. Unfortunately, the remaining 18 banks, including major institutions like Mitsubishi UFJ, Barclays, and BNP Paribas, are categorized as laggards. These banks may have policies on climate and biodiversity, but without recognizing the plastics problem, these policies are unlikely to be effectively enforced in their dealings with plastic-related companies.
Three Key Steps for Banks
To properly manage the financing of companies involved in the plastics industry, banks must take three critical steps:
- Acknowledgment: Banks need to recognize their role in contributing to the plastics problem and the environmental and health impacts it causes.
- Commitment: Banks should commit to becoming part of the solution by developing strong policies to guide their financing decisions, prioritizing the reduction of plastic production and encouraging sustainable alternatives
- Implementation: Finally, banks must implement these policies by screening their clients, engaging with companies to encourage sustainable practices, and providing favorable financing for businesses that reduce, reuse, and recycle plastics.
A Call for Urgent Action
“The research reveals there is a total lack of urgency in the banking sector to deal with the current global plastic crisis. As the financiers of this system banks can play a crucial role in changing the direction of plastic production,” says Maria Westerbos, Director of Plastic Soup Foundation.
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