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

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Welcome to Firstlinks Edition 674 with weekend update

What begins as appetite, grows into excess and ultimately ends in spectacle. Millions of investors just discovered this the hard way.

  • 6 August 2026

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Latest Updates

Retirement

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

SMSF strategies

Who really loses from the SMSF borrowing ban?

The ban on borrowing to buy residential property inside a self-managed super fund was framed as closing a loophole for the wealthy. Yet ATO data suggests its effects may be felt more heavily on members with moderate balances.

Investment strategies

The investing rule that explains the next market crash

What if investment success depends less on picking the right assets and more on understanding the decisions of other investors? A principle borrowed from game theory offers a different perspective on markets.

Investment strategies

Gold: should you own the metal or the miners?

Gold is back in the headlines but investors may be asking the wrong question. Before deciding where prices are headed next, it's worth considering whether the investment you choose will deliver the outcome you're actually seeking.

Fixed interest

Global bonds markets are hiccupping

For decades, investors looked the other way as government debt ballooned. But a reckoning may be beginning. Bond markets are stirring and the consequences could reach far beyond markets into everyday life.

Property

Why investors are looking beyond traditional property sectors

A little-known corner of the property market may be quietly benefiting from powerful demographic and healthcare trends. Could this specialised sector offer investors something increasingly difficult to find: enduring demand?

Retirement

Retirement in reality - 6 months in

Is retirement really an identity crisis, or is something else at play? New insights challenge conventional thinking and reveal why some retirees struggle to fully embrace life after work.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 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.