Plastic phase-out: Which companies will be most affected?
The use of plastics has come under intense scrutiny in recent months, with the UK Government announcing a consultation on banning plastic straws and cotton buds on 18 April.
Prompted by headlines such as “More plastic than fish in the oceans by 2050” and “UN commits to stop ocean plastic waste”, consumers and regulators have turned their attention to an issue that has escaped mainstream focus until recently.
Plastics concerns are well past a tipping point of public concern and regulatory action, write Schroders’ Sustainable Investment Analysts Seema Suchak and Elly Irving.
Public and policymaker interest in plastic waste at historical highs
Plastics manufacturers most at risk
The impacts to date have been relatively modest and focused on narrow areas. While individual plastic products have found themselves in the limelight, the issue spreads much further than carrier bags, micro beads or straws.
We apply a broader lens to the wider plastics landscape, assessing the areas of consumer packaging likely to face the most pressure, the companies that supply those products and the raw materials they contain.
While consumer companies have been most visibly affected by the increased attention, the impacts elsewhere in plastics value chains – among packaging companies and raw material suppliers – are likely to be more intense and disruptive.
We have looked through that value chain to assess potential risks, the companies exposed to them and the steps some leaders are taking. We expect the biggest impacts to be felt by manufacturers of plastic packaging.
To read Seema and Elly's full report on plastics, please click here.
To view Seema's video talking about plastics across the value chain, please click here.
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Notes to Editors
Important Information: The views and opinions contained herein are those of Schroders’ Seema Suchak and Elly Irving, Schroders Sustainable Investment Analysts, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. The opinions in this document include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.