Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

First Sentier Investors

  •   20 January 2022
  •      
  •   

First Sentier MUFG Sustainable Investment Institute publishes research on microfibre pollution causes, effects and required interventions

20 January 2022 - The First Sentier MUFG Sustainable Investment Institute, a joint venture initiative between First Sentier Investors and Mitsubishi UFJ Trust and Banking Corporation, has published new research on the growing issue of microfibre pollution.

Microfibres are tiny particles shedded from textiles and clothing that are released into wastewater and the air, much of which ultimately reach the world’s oceans. An estimated 5.6 million metric tonnes - equivalent to the approximate weight of the world’s population of humpback and blue whales combined - of synthetic microfibres were already in the environment by 20151. A further 0.5-4.3 million metric tonnes2 of synthetic and natural microfibres could be entering the environment each year. Since global textile production and consumption is likely to continue to expand, annual microfibre release – if left unaddressed – could increase by 54% by 20303.

The institute’s latest paper, Microfibres: the invisible pollution from textiles, looks at the sources and scale of microfibre pollution, its pathways into the environment, and how its accumulation can affect the environment and human health. Their microscopic size means microfibres can be easily ingested by even the smallest of organisms, which has been found to cause serious damage in small marine organisms at the foundation of the food chain. When microfibres are ingested and move up the food chain, they can eventually contaminate human food. The report also outlines actions that policymakers, textile and clothing manufacturers, retailers, and investors can take to address microfibre pollution.

Velina Karadzhova, head of the First Sentier MUFG Sustainable Investment Institute, said: “Although microfibres are already prevalent in our air, land and sea, interventions can be taken along a product’s life cycle to address microfibre pollution. Our aim with this research is to highlight this important issue and outline specific policy, industry and engagement actions that should be taken to prevent microfibres from entering the environment in the first place – the most efficient method of addressing the problem.”

This report builds on the institute’s inaugural report on the wider issue of microplastic pollution and its effect on environmental and human health. Synthetic microfibres are the largest proportion – an estimated 35% - of microplastics pollution that reaches the ocean annually. The microplastics study outlined regulatory, behavioural and operational actions that should be taken to remove this pollution and stop more from entering the environment.

First Sentier and MUFG jointly launched the institute in May 2021 to help increase understanding of how investment behaviour and decisions can contribute to better outcomes for the environment and society. The institute will develop and publish macro-level research on emerging sustainability and sustainable investment topics that have yet to receive the attention needed to achieve large-scale change. Since sustainability factors increasingly affect the performance of companies, sectors, and economies, the aim of the research is to enhance awareness of sustainable investment, report on trends and best practice, and promote a greater understanding of how such issues can affect long-term investment performance.

 

  •   20 January 2022
  •      
  •   
banner

Most viewed in recent weeks

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

Meg on SMSFs: Last word on Div 296 for a while

The best way to deal with the incoming Division 296 tax on superannuation is likely doing nothing. Earnings will be taxed regardless of where the money sits, so here are some important considerations.

The 5% deposit scheme is bad for homeowners and Australia

An ‘affordability’ scheme making the county more vulnerable to economic shocks and contributing to the deteriorating financial situation of everyday Australians.

Latest Updates

Investment strategies

The thin line between investing and gambling

Prediction markets are blurring the line between investing and speculation and savvy investors can profit from this trend by heeding the advice of famed investor, Benjamin Graham.

Strategy

The refinery problem: A different kind of energy crisis in 2026

The Strait of Hormuz closure due to US-Iran conflict severely disrupted global energy supply chains. While various emergency measures mitigated the crude impact, the refined product market faces unprecedented stress.

Gold

Are we running out of gold?

Geopolitical instability and challenges with new gold discoveries mean we may be approaching a structural shortage of mineable gold, but what does this mean for gold's overall long-term availability?

Investment strategies

ETF investors adding to portfolios during recent volatility

In the face of recent market volatility investors continue to add to their ETF portfolios with these ETFs getting notable inflows, indicating that long-term fundamentals remain solid.

Strategy

Policy setting in democracies

Democracies aren’t a given, and policymakers need to be mindful not to alienate communities and instead be more aligned with mainstream ideas and attitudes. 

Investment strategies

Take my money and lie to me… again

As private funds increasingly show signs of cracking and buckling under a complete lack of liquidity, the salespeople do their best to keep the cash pouring in from new investors. 

Economy

Australia was once a world leader in innovation, now the system is ‘broken’

Ambitious Australia joins a long line of reports examining research and development, finding Australia has fallen behind its peers on many fronts. It urges bold reform to address declining productivity and research spending.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.