Exxon pushes back after California AG alleges deceit over plastics recycling

Exxon Mobil (NYSE:XOM) says California Attorney General Rob Bonta’s lawsuit accusing the company of lying about plastics recycling is frivolous, appears politically motivated, and risks backfiring on recycling efforts.

The AG says Exxon (XOM) – the world’s largest producer of single-use plastic – is misleading the public about how much it actually recycles, but the company says if it does not continue to invest in its recycling program, it would need to use more oil and gas to make new plastic to meet society’s demand for containers, packaging and other products.

“The irony of all this is Bonta is apparently for bigger landfills,” Karen McKee, head of Exxon’s (XOM) refining and chemicals business, told The Wall Street Journal. “He’s actually for more oil and gas extraction.”

In the lawsuit filed last month, Bonta alleged Exxon (XOM) has polluted the state and violated California’s nuisance laws, as well as laws prohibiting state water pollution, false advertising and unfair competition.

A key to the dispute is that Exxon’s (XOM) definition of recycling is different from that of the U.S. Environmental Protection Agency, which does not recognize advanced recycling as recycling, but rather as a type of incineration, making it subject to federal clean air rules.