Plastic Pollution Crisis Under Scrutiny in Geneva

Today’s ESG Updates

• UNEP Plastic Pollution Talks Open in Geneva: 179 countries begin crucial negotiations to finalize global agreement to curb plastic pollution.
• Shein Hit With €1 Million Fine in Italy For Greenwashing: The fast-fashion giant faces its second EU penalty for misleading sustainability claims and rising emissions.
• Trump Threatens India with Tariffs Over Russian Oil: U.S. President slams India’s oil trade with Russia, threatening steep tariff hikes if unchanged.
• South Africa’s New Emissions Law Includes Jail Time: Executives could face up to 10 years in prison under strict new carbon reporting rules.

Plastics crisis takes the stage at UNEP negotiation

Talks are expected to begin on Tuesday in Geneva, Switzerland, for the sixth and hopefully final round of global plastics treaty negotiations. According to the United Nations Environment Programme (UNEP), plastic pollution is expected to triple between now and 2060. From August 5 to 14, 179 countries are meeting to discuss plastic pollution under the guidance of the Intergovernmental Negotiating Committee (INC). The goal of the negotiation is to reach an agreement that will ”promote plastic circularity and prevent leakage of plastics in the environment.” UNEP Executive Director Inger Andersen said, “We will not recycle our way out of the plastic pollution crisis: we need a systemic transformation to achieve the transition to a circular economy.”

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Further reading: The final straw? Plastic pollution talks get underway in Geneva

Italy fines Shein €1 million for greenwashing

An Italian regulator has fined fast-fashion giant Shein €1 million. The antitrust agency AGCM released claims Monday that Shein has adopted a “misleading communication strategy.” Italy is the second European country to fine the Chinese company. Last month, France fined Shein €40 million for greenwashing and offering fake discounts. The Italian regulator claims that Shein’s “evoluSHEIN by design” and claim to use “green fibers” are vague and can be easily misinterpreted. They also pointed out that Shein’s carbon emissions increased from 2023 to 2024, which directly contradicted their claim of a 25% reduction by 2030. Corporations looking to avoid fines and achieve their 2030 targets should consider ESG solutions. 

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Further reading: Shein slapped with €1M greenwashing fine in Italy

Trump threatens to raise tariffs on India in response to Russian oil 

U.S. President Donald Trump threatened to impose penalties on India if they continue to purchase oil from Russia. He posted on his Truth Social account Monday, “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.” Trump, however, did not specify an actual number for a tariff increase. Last week, he announced that imported goods from India would face a 25% tariff. Officials from India have not responded.

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Further reading: Trump: will ‘substantially’ raise tariffs on goods from India over Russian oil purchases

Jail time possible under new South African emission laws

Executives in South Africa could face jail time under new emissions regulations expected to take effect next year. Under these new regulations, exceeding emission limits and failing to meet reporting requirements could lead to fines, higher taxes, and even imprisonment. Currently, South Africa’s carbon tax is set at 236 rand ($13) a ton. Under new regulations, any corporation emitting more than 30,000 tons of carbon dioxide will be subject to strict reporting requirements. Fines could range from 5 million rand (approximately $278,860) to 10 million rand (about $557,721), and failure to comply could result in up to 10 years in jail. Companies can ensure compliance with carbon emission reporting and other ESG practices with the help of ESG tools. 

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Further reading: South Africa Plans Jail Time, Fines Under New Emissions Rules

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Angela Compagnone