Managing plastic waste is a pressing environmental challenge and offers an opportunity to advance a circular economy. The Institute for Sustainable Investing leads Morgan Stanley’s efforts, working with clients and partners to help shift the global economy away from single-use plastic.
In 2019, we announced our Plastic Waste Resolution to help facilitate the prevention, reduction and removal of 50 million metric tons of discarded plastic from rivers, oceans, landscapes and landfills by 2030. This commitment includes relevant transactions that we facilitate for clients, partnerships with universities, nonprofits that advance the circular economy, capacity-building initiatives that are focused on supporting innovations across the plastics value chain and the elimination of single-use plastic from our firmwide operations by 2024.
Our Plastic Waste Reduction Progress
As of year-end 2022, our estimates suggest that we will have supported the prevention, removal or reduction of nearly 14 million metric tons of plastic waste from entering the environment and landfills by 2030. We incorporate relevant transactions and operational activities in calculating our progress.
Goal: 50M Metric Tons by 2030
As of year-end 2022, our estimates suggest that we will have supported the prevention, removal or reduction of nearly 14 million metric tons of plastic waste from entering the environment and landfills by 2030. We incorporate relevant transactions and operational activities in calculating our progress.
Transactions Helping Tackle Plastic Waste
Since the launch of our Plastic Waste Resolution in 2019, the firm’s Investment Management, Investment Banking and Global Capital Markets teams have helped companies finance plastic waste reduction and recycling.
Reducing Virgin Plastic Waste in Packaging
In 2022, we served as bookrunner for PepsiCo’s $1.25 billion 10-year green bond. PepsiCo’s Green Bond Framework includes circular economy and virgin plastic waste reduction under its environmental categories, in line with PepsiCo’s goal to use 50% recycled plastic content in its packaging by 2030.
Reinforcing the Circular Waste Economy
In 2022, we provided investment to Recykal, a circular economy-focused company that digitizes the supply chain for waste and connects waste generators directly with waste processors and recyclers. At the time of investment, the company had channeled more than 100,000 metric tons of dry waste back into the circular economy and away from landfills and water bodies.
Increasing Use of Post-Consumer Recycled Content in Packaging
In 2021, we served as joint bookrunner for Natura & Co.’s $1 billion sustainability-linked bond with performance targets tied to increased use of post-consumer recycled packaging and greenhouse gas emissions. Natura & Co. is one of the largest Latin American personal care cosmetics groups with brands including Avon, The Body Shop and Natura Cosméticos.
Supporting Tire Recycling
In 2021, we served as lead arranger for Liberty Tire’s $410 million green term loan. The company recycles used car tires. The proceeds financed projects including the sourcing, sorting, processing and distribution of used tires into multiple end-use markets that diverted the used tires from otherwise being sent to landfills.
Expanding the Second-Hand Clothing Marketplace
In 2021, we served as joint underwriter for thredUP’s initial public offering, which raised $193 million at a $1.6 billion valuation. Proceeds supported the expansion of thredUP’s clothing resale business, diverting synthetic materials from entering landfills.
For more detailed information about our Plastic Waste Resolution efforts, including work within our firmwide operations, partnerships and capacity building, see the firm’s most recent ESG Report.
To read more about our progress from previous years, see our 2020 and 2021 updates.
