Case Study

Formosa Penalized Over Plastic Pellets, But Real Risk Is in Shift to New Materials

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Colorful River Aerial Taken In Southern Iceland

About this Case Study

A case study of the legal and reputational risks faced by Formosa Plastics as a result of the excessive discharge of plastic pellets into waterways. The case study explores the financial implications for the company and the growing concern about plastic pollution.

Key outcomes

  • Formosa Plastics was penalised by the USA court for violating its discharge permit conditions, specifically for discharging plastic pellets from its Texas facilities into a nearby estuary.
  • The penalties incurred USD 50 million in settlement and the suspension of a USD 9.4 billion plant construction.
  • The citizen lawsuit demonstrates the increasing scrutiny of plastic pollution from stakeholders and regulators.
Download Case Study (Formosa Penalized Over Plastic Pellets, But Real Risk Is in Shift to New Materials)

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