RBC GAM takes a look at the risks and investment opportunities surrounding global plastics pollution and the growth of sustainable packaging.

In 1869, the first synthetic plastic was made. Its inventor was motivated by the promise of US$10,000 (CAD$13,360) for the creation of a substitute for ivory. Ironically, as demand for ivory was devastating the world's population of wild elephants, plastic was praised for its ability to “protect the natural world from the destructive forces of human need." Plastics have since become ubiquitous in our society. But they are certainly no longer praised for their effect on the natural world.

The growing impact of plastics pollution

Plastic has significantly contributed to the planet's environmental degradation for two main reasons:

the single-use nature of many plastic products

the amount of time it takes for plastic products to break down

Recycling, although beneficial, offers an imperfect solution. Despite recycling efforts, most plastics end up in landfills or in the environment. In fact, of the estimated nine billion tons of plastic that have ever been produced, only nine percent has been recycled.

 

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