a.s.r. premieres measurement method for plastic impact in investments

The approach makes it possible to provide an indication of the plastic impact of companies and portfolios, including potential effects on the environment and health, based on available data and assumptions. Over the past few months, a.s.r. tested the methodology as the first financial institution in a pilot, mapping, among other things, plastic pollution and associated health risks. The pilot has provided insight into which companies within the investment portfolio may have a significant negative impact on plastic pollution.

Marjolein Meulensteen, portfolio manager responsible investments at a.s.r. asset management: ‘With this methodology, we make a blind spot in the financial sector visible. The impact of plastic pollution on the environment and health often remains underexposed. Investors gain greater insight into potential plastic impact and associated risks, which can support them in their investment decisions.’

The methodology translates existing insights on ‘financed emissions’ into plastic pollution. As data availability is still limited, the model combines company-specific and sector-specific data to estimate potential impact. ‘In order to translate the logic of financed emissions to plastic pollution, it was necessary to develop entirely new data layers. The result is a methodology that is transparent, reproducible and directly applicable, also for other financial institutions, with the aim of offering the most transparent and reproducible approach possible,’ says Riccardo De Gennaro, PhD, data specialist at Earth Action and developer of the methodology. 

For the collaborating parties, plastic pollution is no longer solely an environmental issue; it is a financial and systemic risk. Methodologies such as this can contribute to further transparency and decision-making regarding plastic impact in portfolios. According to Plastic Soup Foundation, the development of this methodology is urgently needed. ‘Plastic pollution is also a health issue. It is essential that financial institutions translate this into concrete action,’ says Maria Westerbos, founder and director of Plastic Soup Foundation.

The methodology will be officially launched today at a.s.r.’s head office in Utrecht. In addition, the involved parties will publish a paper providing further explanation. Later this year, the methodology will be made accessible to other parties via the Plastic Footprinting Network database.