Procurement Leaders Look on Amid Plastics Treaty Talks

The global issue of plastic pollution presents a unique challenge to procurement leaders worldwide.

As reported by the International Union for Conservation of Nature (IUCN), more than 460 million tonnes of plastic are produced annually, with an estimated 20 million tonnes polluting the environment.

The figures underscores the importance of negotiations like those at the United Nations’ INC-5.2. However, a draft text presented in Geneva has faced considerable rejection from nations and civil organisations alike, highlighting the complexity of reaching a consensus.

Understanding the importance of INC-5.2

The Intergovernmental Negotiating Committee (INC) was established to create the first binding treaty focused on eradicating plastic pollution.

At the heart of these discussions is an ambition to formulate a draft that is enforceable yet aspirational in curbing environmental damage.

A recent proposal surprised many by omitting an essential component: an article focusing on the reduction of plastic production.

Chris Jahn, President and CEO at the American Chemistry Council, highlighted that a successful agreement "must reflect those differences while keeping our shared goal in focus: keeping plastics in the economy and out of the environment". 

This sentiment resonates deeply with the procurement and supply chain sectors, which must remain aligned to sustainability targets while optimising economic interests.

Global reaction

Global voices stress the urgency of solidifying a binding agreement.

Organisations such as the Global Alliance for Incinerator Alternatives (GAIA) are pivotal, mobilising more than 1,000 grassroots entities across 90 countries to emphasise a lifecycle approach to plastics management. Yet, dissatisfaction among stakeholders is palpable.

Ana Le Rocha, Director of Global Plastics Policy at GAIA, expressed discontent, arguing: “This new text sends a clear message to the world: we do not care about your health.”

Concerns from influential figures cannot be overstated as they rally against diluted agreements. For procurement leaders, this raises the stakes significantly, with national directives potentially pivoting swiftly based on treaty outcomes.

Juan Carlos Monterrey Gómez, Vice President of the Bureau - Latin America & the Caribbean at UN Climate Change, urges a proactive approach: "The clock is ticking. Either our leaders meet this moment or our planet will drown in the brutal cost of inaction. No excuses. No delay.”

Meanwhile, Mohamed Kamal of the Greenish Foundation and other advocates demand more action.

Omissions from the draft

Despite strong backing, the following measures were cut from the Chair’s text:

• More than 100 countries supporting plastic production cuts
• More than 100 countries supporting binding product and harmful chemicals phaseouts
• Almost 130 countries supporting a dedicated article on health
• More than 150 countries that support a strong financial mechanism

This has led to pushback not just from NGOs but from the corporate sector too.

Chris Hogg of Nestlé noted, “Nestlé is one of more than 300 businesses and investors supporting the call for an ambitious and legally-binding treaty addressing the full lifecycle.

“We feel this is really important. It’s rare to see business and civil society so aligned on environmental issues, this is one of those moments." 

The procurement impact

For procurement professionals, the prospect of an ambitious treaty would ripple across the plastics supply chain.

Petrochemical giants like BASF, DOW, and LyondellBasell might face production limitations on virgin plastics. Companies in consumer goods and packaging, such as Nestlé and Coca-Cola, may need to escalate shifts toward sustainable packaging solutions.

Retailers and logistics partners might re-engineer supply chains to incorporate circular models. Chemical innovators could drive demand for alternatives to single-use plastics, opening new avenues for players like LG Chem. Additionally, financial institutions could realign capital streams to favor sustainable ventures, influencing entities such as Citibank and Wells Fargo.

Should the INC-5.2 discussions result in a less robust agreement, organisations might continue with minimal modifications, potentially escalating environmental costs.

Given The Organisation for Economic Co-operation and Development's warning of more than a billion tonnes of global plastic waste, this highlights the immense procurement challenge and opportunity in shaping sustainable futures.