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

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Div 296 may mean your estate pays tax on assets your beneficiaries never receive

The new super tax, applying from 1 July, introduces more than just a higher rate on large balances. It brings into focus a misalignment between where wealth sits and where the tax on that wealth ultimately falls.

Do super funds need a massive wake up call?

UK retirement expert, Guy Opperman, believes super funds are failing at supporting members in deaccumulation. Here is what Australia should do about it. 

Latest Updates

Retirement

How inflation is quietly moving the goalposts on retirement

Inflation doesn’t just raise today’s bills - it quietly increases the amount needed to retire, while simultaneously making it harder to save. Three steps to take before June 30th to improve retirement outcomes.

Investment strategies

Three strategies for investing amid AI whiplash

AI fears have shifted from bubble talk to disruption anxiety, driving investors toward asset-heavy, 'AI-resistant' businesses while punishing many software and service firms. This environment may be ripe for stock pickers.

Investment strategies

Are private market assets the answer in an unstable world?

Private markets can offer diversification and return potential, but their opacity, scale and wide dispersion of outcomes make manager selection and due diligence critical for non‑institutional investors.

Property

Mispriced in plain sight: The case for Global REITs

Global REITs have fallen out of favour, trading at deep discounts after years of underperformance, despite resilient earnings and improving fundamentals.

Investment strategies

Survival is the only success

True financial success isn’t about how much you make, but whether you can sustain it — survival is the only win that matters.

Investment strategies

$42 billion too late

Why Australia's biggest energy bet may already be redundant while a less celebrated government program is exceeding expectations. 

Investment strategies

Do investors accept lower returns from assets that make them feel good?

Assets that deliver emotional satisfaction tend to offer lower financial returns, as investors accept an “emotional yield” in place of performance which shapes how investors approach ESG and unpopular assets.

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.