California accuses Exxon of misleading the public about plastic recycling

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California has filed a lawsuit against ExxonMobil, claiming it falsely promoted the recyclability of plastic, becoming the first US state to try to hold an oil major accountable for plastic pollution.

The lawsuit alleges that Exxon, one of the world’s largest plastic producers, misled the public for half a century about the sustainability of its plastic products. The lawsuit seeks damages from the oil group for damages caused by the production of the plastic.

“For decades, ExxonMobil has misled the public into believing that recycling plastic could solve the plastic waste and pollution crisis, when they clearly knew it couldn’t,” said California Attorney General Rob Bonta. in a statement. “ExxonMobil lied to boost its record profits at the expense of our planet and possibly put our health at risk.”

Exxon did not immediately respond to a request for comment.

The allegations come as plastic plays an increasing role in supporting oil demand and as the UN prepares to negotiate in late November the world’s first binding agreement to reduce plastic pollution in South Korea, a which has been likened to the 2015 Paris climate agreement.

Global plastic consumption, the main driver of demand for petrochemicals, is expected to triple by 2060, according to the OECD, to 1.3 billion tonnes. China was the largest producer of plastics last year, narrowly edging out North America, according to S&P Global Commodity Insights.

The International Energy Agency names the petrochemicals sector as the “largest contributor” to oil demand growth for the next four years as the electrification of the power and transport sectors curbs the global thirst for crude. The plastics industry is expected to account for 10 percent of global emissions by mid-century, up from 5 percent in 2019, according to a report by Lawrence Berkeley National Laboratory.

The California lawsuit against Exxon follows its investigation into the fossil fuel and petrochemical sectors and their role in plastic pollution in 2022. A group of non-profits, including the Sierra Club and the Surfrider Foundation, filed a similar lawsuit on Monday , targeting Exxon for misleading claims about its plastics business.

State and local governments are stepping up efforts to hold companies accountable for plastic waste. Earlier this year, New York Attorney General Letitia James sued PepsiCo, demanding the food and beverage company reduce its plastic pollution and pay damages.

Developing countries, environmentalists and businesses have called for a cap on plastic production to be included in the final UN plastics treaty expected by the end of the year, arguing that relying on waste management solutions such as recycling , is inadequate.

Karen McKee, head of Exxon’s product solutions business, told the Financial Times earlier this year that an output cap would not solve the pollution problem and that UN negotiators needed to be “open-minded” about solutions.

Exxon produced 11.2 million metric tons of polyethylene last year and operates a chemical plastic recycling plant in Baytown, Texas.

About 10 percent of all plastic is recycled, according to the OECD, which estimates investment in recycling needs to reach $1 billion by 2040, up from less than $20 billion today.