A coalition of investors is calling on chemical companies to phase out highly hazardous chemicals and transition to safer alternatives.
The group of 43 investors, with four trillion dollars in assets under management, warned that the sector is not acting fast enough to protect vital ecosystems and human health.
In a statement released on Thursday, they urged companies, including agrochemical producers, to commit to aligning their business and political strategies with globally agreed targets.
This includes the UN Kunming-Montreal Global Biodiversity Framework and Global Framework on Chemicals, which focus on protecting nature and tackling environmental harm caused by chemicals and waste.
The investors say companies must enhance their sharing of information on how their business impacts biodiversity as well as develop strategies to transition to making products that are safe and sustainable.
Failing to address chemical pollution exposes companies and their investors to financial risks, they argued.
The group highlighted how increased public awareness and scientific understanding of the long-term health and environmental consequences of chemicals has led to a rise in litigation and regulation.
The statement has been co-ordinated by responsible investment group ShareAction, Achmea Investment Management, ChemSec, Erste Asset Management, IEHN of Clean Production Action, Planet Tracker and Mercy Investment Services.
Signatories include BNP Paribas Asset Management, Rathbones Group, Caisse des Depots et Consignations, SVVK-ASIR, Swedbank Robur and Impax Asset Management.
It comes as Government officials, business leaders, scientists and campaigners gather in Uruguay this week for discussions on the next phase in the UN Global Framework on Chemicals.
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 make-up and clothes, rely on chemicals, but the toxicity and pollution associated with these chemicals is wreaking havoc on ecosystems and damaging human health.”
Julie Gorte, senior vice president for 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 chemicals sector is not sufficiently mitigating the risks related to biodiversity loss from pollution.”
In a separate policy-focused statement, more than 40 investors with nearly four trillion dollars in assets under management also highlighted the crucial role that regulation plays in enabling the transition of the chemicals industry to safe and sustainable products.
The group outlined recommendations for governments around the world to strengthen and harmonise global policy frameworks on chemicals to support this transition.
