As plastics liability emerges as a growing area of risk, businesses, insurers, and regulators are increasingly focused on the implications of plastics across their entire lifecycle.
Natasha Lioubimova, legal director at Clyde & Co., describes a landscape where risk management is becoming essential at every stage, from production to disposal.
“Plastics are then used across a wide range of industries, including consumer goods, packaging, textiles, electronics, and construction. The disposal phase includes recycling, incineration, landfilling, and, in many cases, mismanagement,” she says.
Risks are present throughout this process. Lioubimova points out that emissions and chemical spills during production can affect workers and local communities. In the use phase, micro- and nanoplastics are released through everyday activities such as tyre wear and textile washing.
“During production, emissions and chemical spills can harm workers and nearby communities. In the use phase, micro- and nanoplastics are released through everyday activities such as tire wear, textile washing, and marine operations. Disposal is equally problematic, with mismanaged waste leading to widespread environmental contamination and health hazards,” she says.
Scientific research has linked certain chemical additives in plastics to health concerns, including endocrine disruption and reproductive harm. Lioubimova highlights that “research has linked chemical additives like bisphenols, phthalates, and flame retardants to serious health issues, including endocrine disruption, reproductive harm, and cognitive disorders.”
The scale of the plastics problem is considerable. According to Lioubimova, “approximately 400 million tonnes of plastic are produced annually, yet only 9% is recycled. The remainder is either incinerated, landfilled, or mismanaged, contributing significantly to environmental degradation.”
Research conducted by the Minderoo Foundation, Boston College, and Clyde & Co. has found that the global costs of harms caused by certain chemicals exceed $100 billion annually. Lioubimova notes that while some harms are well-established, others – particularly those related to microplastics – are still emerging but may prove significant.
“Microplastics may severely impact wastewater treatment systems and ecosystem services. Some harms, such as those affecting marine natural capital, remain under-researched but could have profound long-term consequences,” she says.
From a legal perspective, plastics liability can arise through multiple pathways, including health risks, environmental harm, economic damage, and corporate wrongs. Lioubimova notes that plastics-related claims may arise through several pathways.
“Health risks involve individuals exposed to harmful chemicals through their work, consumer products, or environmental factors. Harm to nature includes environmental contamination and biodiversity loss. Economic harm encompasses damage to infrastructure, such as water treatment plants. Corporate wrongs involve greenwashing, shareholder claims, and failures to mitigate known risks,” she says
Communities near landfills contaminated by microplastics may attempt public liability claims, though establishing a valid class and linking exposure to harm remains difficult. Environmental liability claims may also be brought against polluters, including municipal entities and manufacturers, by regulators, NGOs, and the public.
“The potential for plastics-related claims is growing. The potential severity of claims is expected to be high, particularly if legal standards shift or scientific consensus strengthens. The exception is harm to nature, which is seen as having moderate severity due to its typically localized impact,” she says.
NGO activism is on the rise, with lawsuits being brought against major corporations for failing to manage plastic risks. Regulators are using environmental laws to demand remediation and impose restrictions, while international negotiations are underway to establish a legally binding plastics treaty covering the entire lifecycle of plastics.
“The potential for plastics-related claims is growing,” she says. “If we return to the claim pathways discussed above, most of those pathways are only expected to result in moderate claims activity due to the challenges of proving causation. However, the potential severity of claims is expected to be high, particularly if legal standards shift or scientific consensus strengthens. The exception is harm to nature, which is seen as having moderate severity due to its typically localised impact.”
As scientific understanding evolves and legal frameworks adapt, the potential for large-scale litigation and regulatory action is expected to increase.
“Stakeholders are encouraged to monitor developments closely, support transparency, and prepare for a future where plastics-related liabilities may become as prominent as those related to asbestos or climate change,” she says.
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