The Global Framework on Chemicals – For a Planet Free of Harm from Chemicals and Waste (GFC) was adopted in September 2023 at the fifth International Conference on Chemicals Management (ICCM5) in Bonn, Germany.
The Framework establishes a global, voluntary, multi-stakeholder approach to promoting the sound management of chemicals and waste throughout their life cycle. It sets out five strategic objectives and 28 targets aimed at preventing or minimizing harm to human health and the environment, strengthening governance, improving access to information, and accelerating the transition towards safer and more sustainable alternatives.
The GFC calls on the finance sector, to incorporate strategies and policies supporting the sound management of chemicals and waste into financial approaches.
The GFC complements other international environmental commitments, including the Kunming-Montreal Global Biodiversity Framework (GBF), whose Target 7 aims to reduce pollution risks and impacts on biodiversity and ecosystems by 2030.
Why the GFC matters for financial institutions
Chemical pollution poses significant risks to human health, biodiversity and ecosystems, with implications for businesses and financial institutions. These include physical, transition, regulatory and reputational risks that can affect financial portfolios and investments.
Financial institutions have an important role to play in addressing these challenges by integrating chemical pollution considerations into their risk management, financing and investment activities. By supporting clients and businesses in adopting resource-efficient and low-pollution practices, financial institutions can help reduce harmful chemical use, promote sustainable alternatives and accelerate the transition towards a pollution-free economy.
The GFC explicitly recognizes the role of the private sector, including financial institutions, in advancing the sound management of chemicals and waste. In particular:
- Target D3 calls for the private sector, including the finance sector, to incorporate strategies and policies supporting the sound management of chemicals and waste into financial approaches and business models, and to apply internationally recognized or equivalent reporting standards by 2030.
- Target E3 emphasizes the need to mobilize adequate, predictable and sustainable financial resources from all sources, including by leveraging private finance and promoting innovative and blended-finance mechanisms.
UNEP FI’s role in advancing the GFC
UNEP FI is the convenor of the GFC Private Sector Financing and Investment Workstream under the GFC Implementation Programme. Through this role, UNEP FI supports financial-sector engagement in the implementation of the Framework, including by promoting the integration of chemical pollution considerations into financial strategies, risk management and investment decisions.
UNEP FI leads the private finance component of the Global Environment Facility’s Financing Agrochemical Reduction and Management (FARM) Programme, which aims to reduce reliance on harmful pesticides and agricultural plastics by redirecting public and private finance towards safer, more sustainable agricultural practices. This work aligns with GFC Target A7, which calls for the phase-out of highly hazardous pesticides (HHPs) in agriculture by 2035 where risks remain unmanaged and safer, affordable alternatives are available.