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November 29, 2000
Investors Aim to Bottle Pepsi and Coke Waste
by Mark Thomsen
Shareholder resolution will push for the adoption of comprehensive plastic recycling strategies at
two of the nation's largest soft drink makers.
SocialFunds.com --
Social investor groups announced today the filing of a shareholder resolution with PepsiCo
Incorporated and The Coca-Cola Company, respectively. The resolution calls for the establishment
corporate plans for recycling plastic bottles that contain the companies' drink products.
 The popularity of plastic beverage
containers with consumers has lead to a mounting waste disposal problem. An estimated 75 billion
Pepsi and Coke plastic bottles have been landfilled, incinerated or littered on U.S. highways and
beaches over the last 10 years, according to the Container Recycling Institute and the GrassRoots
Recycling Network.
There are a few reasons why increased recycling is a sensible solution.
"Making plastic soda bottles from petroleum takes four times more energy than making bottles from
recycled plastic and wastes precious barrels of oil. As bottles are wasted, industry churns our
more plastics, creating more toxic pollutants in the process," said Bill Sheehan, network
coordinator for the GrassRoots Recycling Network.
Investors filing the resolution include
Walden Asset Management, Trillium Asset Management, Domini Social Investments, As You Sow
Foundation, and Atlanta shareholder Lewis Regenstein. Barring subsequent pledges from the companies
to act on the issue, the resolution will be presented at their next respective shareholder
meetings, both of which will probably be held in the spring of 2001.
Pepsi and Coca-Cola
are being asked to include 25 percent recycled plastic in their bottles and formulate plans for
increasing overall beverage container recycling rates to 80 percent in the U.S.
Both
companies actually announced intentions to use 25 percent recycled plastic in soda bottles sold in
the U.S. on the same day in December 1990. These announcements came as both companies were
expanding plastic bottle use. By 1994, each company had given up using recycled plastic.
"Investor groups recognize that refundable deposits on beverage containers work. The 10 states
with bottle bills have an average 80 percent beverage container recycling rate, which is two to
three times higher than in states without deposits," said Pat Franklin, executive director of the
Container Recycling Institute. "These shareholder resolutions challenge Coke and Pepsi to stop
opposing bottle bills or develop an alternative that produces the same results as in deposit
states."
The Container Recycling Institute states that plastic bottle waste doubled
between 1994 and 1998. Currently two of every three plastic bottles, which translates to a
staggering 45 million containers per day, become waste or litter.
After prodding from
advocacy groups and talks with social investors, Coke agreed to begin recycling 2.5 percent of
their bottles again. Pepsi still uses no recycled plastic in their bottles.
"The companies
have the technology to use 25 percent recycled plastic in plastic bottles. At their bottling
facilities in Australia, New Zealand, Switzerland and Sweden, Coke uses at least 25 percent
recycled-content plastic," said Ken Scott, Research Analyst for Walden Asset Management. "They
should do the same here."
Last August, Coke CEO Douglas Daft wrote in a company
environmental publication, "long-term success depends on quenching the thirst of consumers each day
in an environmentally sound and sustainable way." In light of the attitude toward recycling, such a
statement has as much substance as the fizz from their soda products. Pepsi and Coke would do well
to heed this shareholder request, because this issue will not disappear.
©
SRI World Group, Inc. All Rights Reserved.
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