PepsiCo Abandons Reuse Goal, Backtracking from a Circular Future
PRESS STATEMENT FOR IMMEDIATE RELEASE
PepsiCo Abandons Reuse Goal, Backtracking from a Circular Future
MEDIA CONTACT: Ryon Harms, ryon@asyousow.org, (310) 730-9407
EL CERRITO, CA—May 23, 2025— Yesterday, PepsiCo abandoned a commitment it made to shareholders for 20% of all beverage servings to be delivered in reusable or refillable packaging and diminished a second commitment to reduce its use of virgin plastic by 20%. Both commitments were made following the filing and subsequent withdrawal of shareholder proposals by As You Sow.
The company abandoned the reuse goal altogether and weakened the virgin plastics reduction goal without specifically stating why, citing vague “external factors” and “systemic barriers.”
“In the absence of a credible explanation, this appears to be an opportunistic move, in a deregulating political environment, to abandon the hard work necessary to seriously tackle growing plastic pollution through reusables,” said Conrad MacKerron, Senior Vice President of As You Sow. “Shareholders expect companies to keep their commitments regardless of which way the political winds are blowing. Politics eventually change direction and companies that abandon their goals can easily fall behind on crucial commitments aimed at stemming plastic pollution.”
“As You Sow is deeply disappointed in this unexpected action by PepsiCo,” said Kelly McBee, circular economy manager at As You Sow. “The move appears counterintuitive to the company's previous leadership in tackling plastic pollution and its PEP+ program to operate within planetary boundaries.”
The groundbreaking study Breaking the Plastic Wave concluded that recycling alone is insufficient to address plastic pollution—instead, it must be coupled with reductions in use, materials redesign, and substitution through reusables. PepsiCo’s decision to abandon reuse targets and scale back plastic reduction efforts calls into question whether the company is heeding the call to invest in a future of circular packaging--which conserves resources and reduces waste--or if it is instead embracing the wasteful status quo of take-make-waste.
Global governments are rapidly adopting policies holding corporations like PepsiCo financially accountable for packaging at its end-of-life, a policy known as extended producer responsibility (EPR.) In the U.S., seven producer responsibility laws for packaging have been enacted since 2021. These policies are designed to financially incentivize reusable and refillable packaging – making PepsiCo’s de-prioritization of these packaging formats increasingly out of step with evolving regulatory and market expectations. Furthermore, the forthcoming international adoption of a Global Plastics Treaty is expected to similarly emphasize plastic reduction and reusable alternatives, making it imperative that PepsiCo follow through on its goals.
PepsiCo’s move follows similar action by The Coca-Cola Company six months ago, resulting in no portfolio-wide reuse goal among any of the largest 225 consumer-facing corporations with business operations in North America, according to As You Sow’s research report Plastic Promises Scorecard. The absence of reuse goals among leading corporations signals a dangerous retreat from circular economy principles—and threatens to derail corporate progress on plastic pollution just as momentum is building.
“We call on PepsiCo and its peer companies to uphold their responsibility to significantly reduce plastic pollution and contribute to the development of a circular economy for packaging–not only when it’s politically convenient, but especially when leadership is needed. Transformative change demands vision and resilience.” said MacKerron.
About As You Sow
As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility. Its focus areas include climate change, ocean plastics, toxins in the food system, the Rights of Nature, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.