California Sues Exxon Mobil Over Plastic Pollution

By Valerie Volcovici

NEW YORK (Reuters) – California and several environmental groups have filed a lawsuit against Exxon Mobil (NYSE:XOM), accusing the oil giant of a long-term effort that has significantly contributed to global plastic waste pollution.

At a Climate Week event in New York City, California Attorney General Rob Bonta announced that the state initiated legal action against Exxon after a nearly two-year investigation found evidence that Exxon deliberately misled the public regarding the limitations of recycling.

“Today’s lawsuit offers the clearest picture of ExxonMobil’s long history of deception, and we are urging the court to hold ExxonMobil fully responsible for its part in creating and worsening the plastics pollution crisis through its misleading practices,” Bonta stated.

This investigation follows California’s previous inquiries into the oil industry’s alleged misinformation about climate change, another area the state is pursuing through lawsuits. California has maintained a contentious relationship with the oil industry for years.

Once a major supplier of crude oil, California’s oil production has seen a consistent decline over the past four decades, with industry representatives citing a challenging regulatory environment for investment.

In contrast, Exxon rival Chevron Corp (NYSE:CVX), critical of California’s policies, plans to relocate its headquarters to Texas, a state perceived as more favorable to the oil industry.

A coalition of environmental organizations, including the Sierra Club, has also filed a related lawsuit in San Francisco, leveling similar allegations against Exxon.

Bonta’s office focused specifically on Exxon’s promotion of its “advanced recycling” technology aimed at converting difficult-to-recycle plastics into fuel using pyrolysis. He noted slow progress in this technology as further evidence of Exxon’s ongoing deceit. The attorney general seeks to establish an abatement fund and civil penalties to address the damage caused by plastics pollution in California.

In a defense, Exxon contended that advanced recycling and similar initiatives are effective, accusing California of failing to rectify issues within its recycling system. “Instead of suing us, they could have collaborated with us to address the issue and prevent plastic from ending up in landfills,” stated Lauren Kight, an Exxon spokesperson.

Kight mentioned that Exxon has recycled over 60 million pounds of plastic waste into usable raw materials, minimizing landfill deposits through advanced recycling methods.

Legal Challenges Ahead

Notre Dame Law School Professor Bruce Huber, who specializes in environmental law, indicated that California might face a challenging legal battle with its lawsuit. “The primary claim hinges on public nuisance law, which is often vague. It may prove difficult for the court to provide relief without inviting numerous similar claims,” Huber noted.

According to a report by the Minderoo Foundation, Exxon is the world’s leading producer of resins used for single-use plastics. Previous Reuters reporting has highlighted significant challenges faced by advanced recycling initiatives that the plastics sector endorses as a solution for environmental issues.

California’s lawsuit coincides with upcoming global negotiations for a plastic treaty set to occur in Busan, South Korea, later this year, amidst divisions over whether the treaty should impose caps on plastic production—a stance opposed by Exxon and the global petrochemical sector. Recently, the U.S. supported a treaty focused on reducing global plastic production.

Environmental advocacy groups have welcomed the lawsuit. Christy Leavitt, Oceana’s plastics campaign director, emphasized that California’s legal action will “hold the industry accountable and challenge the misleading narrative regarding plastics recycling that hinders effective solutions.”