Investors urge chemical companies to stop producing PFAS

A large group of institutional investors have urged chemical companies to stop producing PFAS, describing the carcinogenic substances as “the new asbestos.” In a letter to the CEOs of the world’s 50 largest chemical companies, they warned that PFAS users and manufacturers face “deep liability and insurance risks” that could significantly harm the companies' “long-term value.”

The letter was written by the Investor Initiative on Hazardous Chemicals (IIHC), a group of institutional investors with over 10 trillion dollars in assets under their management. The group includes Allianz Investment Management and Storebrand Asset Management, among many others.

The investors urged the chemical sector to find safer alternatives for the dangerous PFAS and be transparent about their plans to scale down and stop their use. That’s not only good for the environment and public health but also for the companies themselves, they said.

IIHC compared PFAS to asbestos. “For decades, asbestos was known as the magic mineral, despite early health concerns that eventually led to lawsuits and numerous bankruptcies that continue to this day,” the investors said. “PFAS hazards were also recognized early, but production today is at an all-time high.”

There’s already a flood of PFAS-related injury lawsuits in the United States, and some are popping up in Europe, the investors warned. In the Netherlands, cases are ongoing against 3M and Chemours, for example. The first bankruptcy happened this year, and more are expected to follow, they said. The United States and the European Union are already working on banning PFAS. It’s time for the chemical sector to move on.