Recycle Bottles
WHEREAS Coca-Cola Company has repeatedly emphasized its commitment to environmental leadership. However, the majority of Coca-Cola beverage containers in the U.S. continues to be landfilled, incinerated or littered, thereby contributing to environmental pollution, and reducing the U.S. supply of recycled plastic.
Coca-Cola Company has made substantial progress toward its goal to incorporate 10% recycled content resin into its plastic beverage containers in North America by year-end 2005. In addition, Coca-Cola Company has joined with its beverage industry peers to form the Beverage Packaging Environmental Council (BPEC) in order to study declining beverage container recovery rates. However, Coca-Cola Company and BPEC have resisted adopting a publicly stated, quantitative goal to increase beverage container recovery rates.
We believe both recycled content and container recovery goals are essential to an effective recycling strategy.
Unfortunately, the U.S. recycling rates for beverage containers have declined significantly in recent years. The Container Recycling Institute (CRI) estimates that the recovery rate for PET plastic beverage containers declined from 37% in 1995 to 20% in 2004, the most recent year for which data is available. CRI also reports, based on data from the Aluminum Association and the U.S. Department of Commerce, that the aluminum can recycling rate fell from 65% in 1992 to 45% in 2004.
Beverage container recycling rates of 70% and higher are being achieved in 11 U.S. states with container deposit legislation (or bottle bills). Significant container recovery rates are possible, as evidenced in these 11 states, and in countries like Norway and Sweden where companies have achieved beverage container recovery rates of more than 80%. On average, the U.S. states with beverage container deposit systems recover three times as many beverage containers as do states without deposits.
Nevertheless, Coca-Cola and other members of the American Beverage Association actively oppose container deposit systems without putting forth a solution capable of achieving comparable recovery rates.
BE IT RESOLVED THAT Shareowners of Coca-Cola Company request that the board of directors review the efficacy of its container recycling program and prepare a report to shareholders, by September 1, 2006, on a recycling strategy that includes a publicly stated, quantitative goal for enhanced rates of beverage container recovery in the U.S. The report, to be prepared at reasonable cost, may omit confidential information.
Supporting Statement
We believe the requested report is in the best interest of Coca-Cola Company and its shareholders. Leadership in this area may protect the Coca-Cola brands and improve the company's reputation. We anticipate the report will detail the means and feasibility of achieving, as soon as practicable, a quantitative, beverage container recovery goal. The report should:
- include a cost-benefit analysis of the different container recovery options available, such as curbside and drop-off recycling, drop-off programs, container deposit systems, and voluntary company and industry programs;
- explain Coca-Cola Company's position on container deposit systems; and
- explain Coca-Cola's efforts to work with peers to establish industry-wide container recycling goals.
|
