Investment warning plastic packaging

Amsterdam, 9 May 2018 – For years the plastic industry was considered a safe investment. Good returns were ensured, because worldwide demand for plastic was only increasing. That image is quickly turning around as a result of governments announcing measures against plastic packaging, since plastic is damaging to the (maritime) environment. Moody’s, the leading advice agency for investors, released the rapport Plastic Packaging last month. It states that all impending measures to limit plastic packaging will have direct detrimental consequences for this industry. The companies will become less creditworthy.

Around 3 percent of the world oil consumption is used to make plastic packaging. British Petroleum is already changing their policy. Steve Dale, chief economist at BP, says in an article dedicated to this subject on “We think we’re going to see increasing regulation against some types of petrochemical products, particularly single-use plastics. As a result of that, we have less growth in non-combusted oils than we otherwise would have done.”

Maria Westerbos, director of the Plastic Soup Foundation: “This is good news. The packaging industry is taking far too little initiative to take responsibility and reduce single-use plastic. Now that the market value of these companies is under pressure, we can expect to see this change.”