According to the United Nations Environment Programme (UNEP), a drastic reduction in avoidable, unnecessary and problematic plastic is crucial to addressing the global pollution crisis.
While the OECD has called for limiting demand, the U.S. National Academies of Sciences, Engineering and Medicine (NAS) has suggested a national cap on virgin plastic production.
There is growing recognition around the world that the current rate of expansion of virgin plastic production is unsustainable, that recycling improvements alone are insufficient, and that it is critical to reduce absolute demand, particularly for single-use plastics (SUP) and virgin plastic.
From Exxon Mobil Corporation‘s perspective, commitments in line with these recommendations can have a significant impact on demand for its products.
Governments around the world are beginning to enact strict bans on single-use plastics and to reduce the use of plastic packaging.
Last year, the United Nations Environment Assembly approved a process to create the world’s first legally binding global plastics treaty by 2024.
In the United States, state governments are also beginning to mandate reductions in the use of virgin and SUP packaging.
For example, in 2022, California passed the first U.S. law mandating a specific cut in the use of plastic packaging: 25% over 10 years.
Global crisis
In addition, major consumer brands, some of which are likely users of ExxonMobil’s resin products, are also calling for a reduction in the production of certain types of plastics.
The Business Coalition for a Global Plastics Treaty has stated that the top priority of a global plastics treaty should be «reducing the production and use of plastics…with a focus on virgin plastic from fossil fuels.»
Coalition members include many of the world’s largest SUP users, such as Coca-Cola, Nestlé, Mars, PepsiCo, Unilever, Walmart and petrochemical company Borealis.
The coalition also includes investors with $5.5 trillion in assets under management, including ASN Bank, BNP Paribas Asset Management, Fidelity International and Robeco.
