Plastic Pollution Could Trigger $20B in Payouts

Litigation could cost the plastics industry and its insurers $20 billion in the US over the next eight years, according to a report backed by the United Nations and an Australian billionaire.

Companies including petrochemical and consumer goods firms may be liable for the cost of cleaning up plastic pollution, while emerging legal pathways to claim for the harm to society threaten to add to their corporate liabilities. Beyond 2030, legal claims ‘could be an order of magnitude larger.’

The report from Australian mining tycoon Andrew Forrest’s nonprofit, Minderoo Foundation, is the first time lawyers and data analysts have modeled how the cost of plastic-related pollution translates into the likely compensation payouts.

The research is supported by the United Nations Environment Programme’s Finance Initiative, a collaboration between the UN and the finance industry.

An industry trade group, the Plastics Industry Association, responded to the report by arguing that the material outperforms alternatives in cost and sustainability, and litigation could derail cleanup efforts.