· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Coca-Cola, Pepsi, and Kraft Heinz defended their sustainable packaging strategies during recent annual meetings amid intensifying pressure from activist shareholders
• While reaffirming commitments to reduce plastic waste, the companies have scaled back several headline targets
• Coca-Cola, for example, quietly dropped its goal for 25% reusable packaging by 2030 and delayed its target of 50% recycled material to 35–40% by 2035
🔭 The context: The beverage and snack industries face mounting regulatory and reputational pressures linked to plastic pollution
• Activist investors, including As You Sow, are urging greater transparency and action, especially as global plastic waste is projected to triple by 2060
• Meanwhile, legislative developments such as France’s and Portugal’s reusable packaging mandates and pending international regulations — including the UN plastics treaty — are raising the stakes for corporate accountability
🌍 Why it matters for the planet: Plastic production is a major source of greenhouse gas emissions and plastic waste continues to damage ecosystems and public health
• Voluntary corporate targets are faltering just as the global policy landscape tightens
• Weakening ambitions undermines credibility and risks leaving major FMCG companies out of step with consumer expectations and evolving regulations, especially in Europe
⏭️ What's next: Investor advocacy groups will likely intensify scrutiny ahead of international negotiations in Geneva this August on a global plastics treaty
• Regulatory compliance costs, particularly in the EU, are expected to rise, and firms failing to adapt may face legal challenges, as seen in lawsuits filed against Coca-Cola and Pepsi for alleged greenwashing
• Companies may need to re-align strategies or risk policy and reputational backlash
💬 One quote: “Single-use plastics are cheap, that’s ultimately the reason,” — Angeli Patel of UC Berkeley, calling for more honest corporate communication on shifting environmental priorities
📈 One stat: If beverage companies increase reusable packaging by just 10% by 2030, it could eliminate over 1 trillion single-use plastic bottles and cups, according to Oceana
See on illuminem's Data Hub™ the sustainability performance of Coca-Cola and its peers Pepsi, and Kraft Heinz
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