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The U.S. subsidiary of Formosa Plastics Corp (1301.TW) has agreed to pay $7.5 million and to cooperate with plaintiffs to settle an antitrust lawsuit alleging the company and others curbed the supply of a widely used chemical in a scheme to inflate prices. (Scarcella, August 16, 2023)

“When the government of Taiwan planned for the future of Taiwan several decades ago, it focused exclusively on industrially stimulating the economy. It has been promoting that kind of economic growth and development since the 1970s, making it appear as if industrial growth is the only factor to consider with regard to the country’s future. In the name of progress and economic revitalization, state-led industrialization walks hand in hand with private corporations. Together, they compete for the world’s largest petrochemical plants. The industrial development policy of Taiwan is one of the factors in the loss of Taiwan’s coastal wetlands, the subsiding of land from industrial water withdrawal and sand mining, and the increase of toxic air emissions, contaminated water, and toxic buildup of metals in soils (Wu and Wu 171–2). This “macroeconomy” policy ruins bioregions.” (Chang, 2023, p. 171)” 

The Taiwanese Formosa Plastics Corporation (FPC) is the tenth largest petrochemical company in the world. Focused primarily on the production of polyvinyl chloride (PCV) resins (Wu 2022), the FPC is the main subsidiary of the larger Formosa Plastics Group (FPG), a vertically integrated, global conglomerate that owns businesses in biotechnology, electronics, and logistics, among others (Wikipedia 2020). Formosa’s four main subsidiaries (all petrochemical companies) account for an estimated 10 percent of Taiwan’s gross domestic product (Wu 2022). The most important sites for production are Formosa plants in Yunlin County (Central Taiwan), Point Comfort (Texas), and Baton Rouge (Louisiana). Enabled by the shale gas boom discussed above, plants at all three sites are subject to ongoing expansions, including a proposed $200 million plant in Texas, and the $12 billion industrial complex in Louisiana. Formosa also operates a steel plant in Central Vietnam that is the focal point of much local and transnational activism.

Formosa’s current economic and cultural standing is deeply connected to Taiwan's history of industrialization. The Formosa Plastics Corporation and Group were founded by Wang Yung-ching and his brother Wang Yung-Tsai in Kaohsiung in 1954. Born under Japanese occupation, Wang Yung-ching made a living selling and delivering rice as a young boy, and later operated his own rice shop as a teenager. Eventually, Wang transitioned into the lumber business and benefited from market liberalization following the end of Japanese colonial rule (Lin 2016). However, since US military forces destroyed one of his mills during WWII, Wang received $800,000 from USAID, which he used as capital to found Formosa Plastics (Shah 2012). Until his death in 2008, Wang became one of Taiwan’s richest persons and remains widely known as the “god of management” (Huang 2008).

In Taiwan, conglomerates like the Formosa Plastics Group are called guanxiqiye (“related enterprises''), a colloquial term for tightly-controlled, family-owned businesses. According to anthropologist Ichiro Numazaki (1993), the expression emerged from 1970s business discourse and quickly became a self-identifying status symbol for many corporations (Numazaki 1993, 485). Numazaki argues that Chinese trading tradition (emphasizing partnerships) and Taiwan’s vexed relationship to Japan and China contributed to the rise of family-owned enterprises. Daughter Cher Wang has co-founded important businesses outside of the petrochemical sector, including consumer electronics company HTC. However, the Formosa family has also experienced a series of conflicts: in 1996, Wang Yung-Ching expelled his son Winston for extramarital affairs, who later became involved in ongoing efforts to disclose his father’s substantial tax evasion (Offshore Alert 2018). Today, the Formosa Group is in the process of transitioning key positions away from family members (Taipei Times 2021).

Formosa’s operations have further been shaped by Taiwanese politics and cross-strait relations with China. Considered a moderate liberalizer, Wang held close ties to Taiwan’s democratic party, but also continued to push for expansion in the Chinese mainland during his lifetime, often leading to conflicts between Taiwanese and Chinese administrations (Lin 2016, 81). In 1973, Wang’s plans to build a large petrochemical complex in Taiwan were halted by the authoritarian Kuomintang (KMT) government, but following the lifting of martial law in the mid-1980s, Formosa made a second attempt, suggesting to build the complex in the scenic Yilan County (Ho 2014). Rising concerns over petrochemical development and pollution, however, led to mass protests by local residents and fisher people, creating a landmark moment for Taiwan's larger democracy movement (Ho 2014). In face of this opposition, Wang arranged secret trips to mainland China, and later announced that the plant would be built on the island of Haitsang in Xiamen province. Yet, economic sanctions between China and Taiwan, combined with pressure by the nationalist KMT government, eventually led to construction of the vast petrochemical complex in the rural and impoverished Yunlin County in Central Taiwan (Lin 2016, 82).

Lee references work from two main sources: Jill Lindsey Harrison’s book, From the Inside Out: The Fight for Environmental Justice Within Government Agencies, and Ana Baptista’s Ph.D. dissertation, “Just Policies? A Multiple Case Study of State Environmental Justice Policies.” Harrison describes how EJ managers and staff undermine environmental issues resisting EJ integration. She argues this resistance is based on: “environmental protection is colorblind, bettering the environment overall means that the environment is improved for everyone, EPA is a science agency while EJ deals with social issues, and other “standard narratives” rooted generally in American normative societal values or in long-held premises that have shaped the environmental protection field for decades” (Lee, 2021). Baptista’s concept suggest EJ practice’s inactivity contributes to procedural injustice while also highlighting the importance of structural justice when dealing with environmental injustice as it is deeply rooted in racial discrimination and the perpetuating of racism through the skewed relationship between governmental entities and black communities. 

In addition to these references, Lee also highlights contributions from Rebert Bullard, who developed a public health model of prevention that focuses on community-outreach practices to address disproportionate impact. Ryan Holifield, who accentuated the difficulty for government agencies to define “disproportionate impacts” presenting another challenge in legally reinforcing the order. David Pellow, who highlighted the importance of critically looking at race and understanding how attributed meaning to concepts dealing with race change over time. 

In order to advance these referenced works, Lee argues that the best way to integrate earlier findings is by building the capacity of the EJ practitioner “to deploy the core theories that guide EJ practice.” In this instance, the ability to define and  contextualize the term “disproportionate impacts” is a crucial tool to ensure the Executive order becomes operational.       

Lee’s main argument is that disproportionate impacts are intertwined with the distribution of environmental and social impacts. He highlights structural and procedural issues with environmental agencies and the EPA, along with other issues of data injustice, where agencies were sometimes characterized as “black boxes,” closed off from population scrutiny and  from learning of the actual narratives in these communities. 

“Not only are we now able to construct inarguable empirical statements that are commensurate with the deep historical and systemic drivers of environmental racism and injustice, but mainstream leaders and the general public are finally listening. Indeed, new tools for operationalizing the consideration of disproportionate impacts are emerging, not the least of which is New Jersey’s recent landmark EJ legislation (S.232/A.B.2212). Hence, we can now discuss what some building blocks of a second generation of EJ practice may look like.”

Lee uses CalEPA’s Environmental Justice Advisory Committee definition and recognition of “cumulative effects,” or the public health effects of combined exposure of environmental pollutants and toxins with other stressors that impacts people of a lower socio-economic status in accordance with existing research. This led to the development of the CalEnviroScreen

The article focuses on creating definitions and clarifying concepts while analyzing the impact of a disproportionate distribution of resources in a way that clearly shows the link to systemic racism and the “inequitable distribution of environmental burdens and benefits” (Lee 2021). It develops a framework for integrating concepts of environmental injustice with environmental policy-making in an effort to overcome the inaction of environmental justice (EJ) practice to address the EJ Executive Order No. 12898 by President Clinton in 1994. A mandate that addressed “disproportionately high and adverse human health or environmental effects” of its operation population of lower socio-economic status. The issue being these agencies did not know how to define the term “disproportionate effect” leading to the immense challenge of holding agencies to an environmental justice standard. 

The article also discusses future EJ practice that addresses systemic racism using empirical data in the context of programmatic decision-making to visualize public health impacts which recognizes that as the demand of governmental regulation of “disproportionate impacts” increases the need for greater resources, scale of analysis, and level of quantification increases.

Lee contextualizes his argument in the era of March 2021 when discussing how current conditions are optimal for making progress in reference to the Black Lives Matter movement, which has uplifted black voices and brought visibility to black discrimination and the environmenatal, social, economic, health outcome, and cultural effects of systemic racism.

Lee uses “second-generation EJ mapping tools that have cumulative impacts as their core organizing principle,” this tool goes beyond demographic indicators, it spatially array the factors EJ researchers identified and contributors to the cumulative impacts affecting communities of colors. It was created by EJ researchers Manuel Pastor, Rachel Morello-Frosch, and James Sadd officially developing an EJ Screening Method (EJSM) - which laid the foundation for CalEnviroScreen. These tools are used to study cumulative effects, a combination of environmental pollutants and socio-economic factors that leave communities of people-of-color vulnerable to adverse health outcomes. Other modern technological and statistical tools include modern geographic information system (GIS) technology.

“Virtually all EJ practice has been con- fined to the procedural justice element, with EJ defined as solely consisting of more community involvement. This is inevitable if there is no understanding of the substantive core of such concerns speaking to the need for a systematic and rigorous way to operationalize the concept of dispro- portionate impacts.” (10209)
“The following is a first cut at a working definition of “disproportionate impacts”32: Disproportionate environmental and/or public health impacts are combinations of demonstrably greater pollu- tion burden and population vulnerability associated with socially and/or economically disadvantaged communities and populations. Disproportionate impacts may often reflect consistent patterns in the distribution of pollution and vulnerability, and are often a function of historical trends and policy decisions.” (10212)

“To be sure, anecdotal descriptions represent very compelling information, as countless community mem- bers testify at public hearings every day to express their concerns about their communities’ well-being. How- ever, we all know from bitter experience how they are often ignored, criticized, or marginalized. Having peer- reviewed, government-sanctioned, and quantitative data changed the terms of the conversation and went a long way toward ensuring that the data are taken seriously. It provided a basis by which we can define and discuss the concept of disproportionate impacts in analytically rigor- ous terms.” (10213)