|
Coke sells more than 100 million plastic bottles and aluminum cans
of beverages every day in the United States. An estimated two-thirds
of the used plastic bottles and nearly one-half of the cans are not
recycled. This is an enormous waste of raw materials. The recovery rate
for PET plastic bottles, the company’s most profitable and fastest-growing
beverage bottle, dropped by half in the last five years.
For more than two years, a coalition of concerned shareholders has
asked Coca-Cola to set goals for recycled content and for container
recovery. We are pleased with the progress made to date on recycled
content but are concerned with the lack of substantive, public goals
for container recovery. Thus, our resolution asks the company to study
the feasibility of setting a recycling goal we believe is readily achievable—a
container recovery rate of 80 percent. Please note we are asking
only for a study, not a policy change. "Regrettably, Coca-Cola
withdrew in February 2002 from the follow-up process to achieve consensus
on a recovery program, calling into question its commitment to setting
container recovery goals." please add " Click
here for a summary of the report and link to the full text."
Goals are an essential element of every business activity. Without
goals, Coke would founder. And so will recycling efforts. Setting substantive
container recovery goals will help to reverse the decline in national
recycling rates, protect Coke’s brand value, reduce risk by diversifying
container feedstock sources, and allow Coke to gain competitive “first-mover”
advantage. (See accompanying
fact sheet).
Container recovery is affordable, and cost-effective solutions are
available. We were encouraged when Coca-Cola recently took part in a
Multi-Stakeholder Recovery Project, a collaborative study with environmentalists
and other businesses to document the costs and benefits of alternative
recovery programs. Coke committed to also participate in a follow-up
process to try to achieve consensus on a container recovery program.
Regrettably, Coca-Cola withdrew in February 2002 from the follow-up
process to achieve consensus on a recovery program, calling into question
its commitment to setting container recovery goals.
We are pleased that Coca-Cola maintains a leading market share of the
soft drink business. But with this leadership comes responsibility.
Coca-Cola has not acted decisively to address its responsibility for
the solid waste crisis created by its products. The company needs to
recognize the value inherent in its used beverage containers. It is
throwing away potential revenue.
Background
|
