Microplastic Pollution: the Causes, Consequences and Issues for Investors
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Microplastic pollution: the causes, consequences and issues for investors First Sentier MUFG Sustainable Investment Institute B Microplastics: The issue Contents About the institute 1 Setting the scene 4 The Microplastics Ecosystem 5 Microplastics: The issue 9 1. Introduction 11 2. Microplastics as hazards to environmental and human health 13 3. Sources of primary microplastics 15 3.1 Synthetic textiles 15 3.2 Vehicle tyres 15 3.3 Road markings 16 3.4 Personal care products and cosmetics 17 3.5 Plastic pellets 17 3.6 Marine coatings 17 3.7 Agricultural uses for primary microplastics 17 3.8 City dust 18 3.9 Other sources of primary microplastics 18 4. Sources of secondary microplastics 20 5. Channels for microplastics into the environment 21 6. Possible solutions and opportunities for action 23 6.1 Prevent microfibre shedding in textiles 23 6.2 Interception of microplastics using laundry filters 25 6.3 Regulation of automotive tyre abrasion rates 25 6.4 Regulation of the microplastic contents of personal care products and cosmetics 26 6.5 Reduction of number of pre-production pellets lost during industrial practices 26 6.6 Improving microplastic retention at WWTPs 27 6.7 Other measures to prevent primary microplastic pollution 28 6.8 Measures to reduce secondary microplastic pollution 28 6.9 Summary of possible actions 29 Agenda for Action 31 References 37 Endnotes 42 Appendices 45 Microplastics: The issue C About the Institute The First Sentier MUFG Sustainable Investment Institute (the Institute) aims to provide research on topics that can advance sustainable investing. The Institute is jointly supported by First Sentier Investors and Mitsubishi UFJ Trust and Banking Corporation, a consolidated subsidiary of MUFG. Microplastic Pollution: The Causes, Consequences and Issues Acknowledgements for Investors is the first report published by the Institute. The Institute would like to thank the authors of this publication, As investors, both First Sentier Investors and MUFG recognise Ella Harvey, Dr Rory Sullivan and Nicky Amos from Chronos our collective responsibility to society and that investment Sustainability. decisions should be made with consideration to our communities both now and in the future. We would also like to thank Dr Laura Foster from the Marine Conservation Society who contributed to the report. The Institute will commission research on Environmental, Societal and Governance issues, looking in detail at a specific topic from different viewpoints. The Institute recognises About Chronos Sustainability that investors are now looking in far greater depth, and with The Institute commissioned Chronos Sustainability to develop far greater focus, at issues relating to sustainability and this document. Chronos Sustainability was established in sustainable investing. These issues are often complex and 2017 with the objective of delivering transformative, systemic require deep analysis to break down the contributing factors. change in the social and environmental performance of key If as investors we can better understand these factors, we will industry sectors through expert analysis of complex systems be better placed to consider our investment decisions and and effective multi-stakeholder partnerships. Chronos works use our influence to drive positive change for the benefit of the extensively with global investors and global investor networks environment and society. to build their understanding of the investment implications of sustainability related issues, developing tools and strategies The Institute is jointly supported by First Sentier Investors to enable them to build sustainability into their investment (FSI) and Mitsubishi UFJ Trust and Banking Corporation, a research and engagement. For more information visit consolidated subsidiary of MUFG. Representatives of both www. chronossustainability.com and @ChronosSustain organisations will provide input to the activities of the Institute. An Academic Advisory Board has been established to advise the Institute on sustainability and sustainable investment research initiatives. The Academic Advisory Board comprises prominent leaders from academia, industry and non- governmental organisations in the fields of Responsible Investment, climate science and related ESG endeavours. The Board will provide independent oversight to ensure that research output meets the highest standards of academic rigour. www.firstsentier-mufg-sustainability.com www.mufg-firstsentier-sustainability.jp 1 About First Sentier Investors About MUFG First Sentier Investors (formerly First State Investments) is a Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the global asset management group focused on providing high world’s leading financial groups. Headquartered in Tokyo and quality, long-term investment capabilities to clients. We bring with over 360 years of history, MUFG has a global network together independent teams of active, specialist investors who with around 2,600 locations in more than 50 countries. The share a common commitment to responsible investment and Group has over 180,000 employees and offers services stewardship principles. These principles are integral to our including commercial banking, trust banking, securities, credit overall business management and the culture of the firm. cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial All our investment teams – whether in-house or individually group” through close collaboration among our operating branded – operate with discrete investment autonomy, companies and flexibly respond to all of the financial needs according to their investment philosophies. of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on https://www.firstsentierinvestors.com the Tokyo, Nagoya, and New York stock exchanges. https://www.mufg.jp/english Contact About the Trust Bank [email protected] Mitsubishi UFJ Trust and Banking Corporation, as a core member of MUFG, provides its customers with a wide range of comprehensive financial solutions leveraging unique and highly professional functions as a leading trust bank. Such financial solutions include real estate, stock transfer agency, asset management and investor services, and inheritance related services, in addition to banking operations. We aim to realize our vision to be the trust bank that creates “a safe and affluent society” and “a bright future with our customers together” by always supporting our customers’ and society’s challenges based on Trust, and thus created a new key concept: “Trust Drives Our Future”. First Sentier Investors was acquired by the Trust Bank in August 2019. https://www.tr.mufg.jp/english 2 3 Microplastics: The issue Setting the scene Plastic has become embedded in nearly every facet of daily life due to its versatility and low cost of production. However, plastic pollution is also a major and growing environmental concern, as plastics are both abundant and ubiquitous in the environment. The amount of plastic thought to enter the ocean every year exceeds 10 million tonnes, and approximately 1 million tonnes of this is classified as ‘primary’ microplastics. Primary microplastics refers to plastic pellets, fragments, and fibres that enter the environment less than 5mm in any dimension. The main sources of primary microplastics include vehicle tyres, synthetic textiles, paints, and personal care products. Plastics that enter the environment macro-sized but later degrade into micro-sized particles are referred to as ‘secondary’ microplastics, and also constitute a substantial portion of microplastic pollution. Microplastics pose an environmental hazard because their ingestion by marine organisms has been shown to negatively impact these organisms’ growth, development, and reproduction. This can, in turn, result in negative outcomes for human health. While there is growing understanding of the causes of microplastic pollution and of the solutions that might be adopted – in particular, the importance of preventing microplastics from entering the environment to begin with – microplastics have not received the same level of attention from policymakers, companies, or investors as have comparable issues such as marine macroplastic pollution and waste management. This report therefore has four objectives: 1. To raise awareness among policymakers, companies, and investors about the environmental and public health risks associated with microplastic pollution 2. To analyse the major sources of microplastic pollution, the channels by which they enter the environment, and the pathways of microplastics into animal and human diets 3. To identify potential actions to reduce the flow of microplastics into the environment 4. To consider the specific contributions that can be made by investors towards mitigating microplastic pollution Microplastics: The issue 4 The Microplastics Ecosystem The terrestrial origin of the vast majority of plastic means that terrestrial ecosystems and wastewater infrastructure are major pathways for microplastics into the marine environment. 5 Microplastics: The issue Microplastics: The issue 6 The Microplastics Ecosystem Pellet losses during Agriculture plastic manufacturing and industrial processes This diagram illustrates the main pathways for microplastics to enter terrestrial and Medical Abrasion of urban and applications transport infrastructure marine environments (including road markings) Erosion and abrasion of Personal