SEC Approves As You Sow Shareholder Proposal on Flexible Plastics at PepsiCo
cent piece indicates a growing recognition of the economic risks associated with plastic pollution,” noted Conrad MacKerron, Senior Vice President at As You Sow. “Pepsi must take immediate action to phase out flexible plastics that are not recyclable in the United States, either by transitioning to truly recyclable materials or expanding the use of reusable packaging.”
This recent ruling by the SEC represents a significant win for As You Sow, as it marks the second time one of their Circular Economy proposals addressing plastic pollution has withstood a challenge. Despite facing stricter regulatory guidance from the new administration, the proposal will now proceed to a shareholder vote at Pepsi’s upcoming annual general meeting in May 2025.
While PepsiCo has made public commitments to sustainable packaging, data shows that over 18% of their packaging still consists of non-recyclable flexible plastics, particularly within their Frito Lay snack division. Flexible packaging, which includes various types of single and multi-material films, is a rapidly growing sector within the industry and a major contributor to the global plastic pollution crisis.
Furthermore, PepsiCo is falling short of its 2025 targets for reusable and recyclable packaging, as well as overall plastic reduction. Since 2020, the company has actually increased its plastic usage by more than 5%, highlighting the urgent need for action in addressing these issues. By phasing out non-recyclable flexible plastics and shifting towards more sustainable alternatives, PepsiCo can make significant strides in reducing its environmental impact and mitigating plastic pollution.
As You Sow, a prominent advocate for shareholder rights in corporate responsibility for the past three decades, focuses on a wide range of environmental and social issues, including climate change, ocean plastics, toxic substances in the food supply, racial justice, and workplace diversity. Their ongoing efforts to hold corporations accountable for their impact on the environment and society serve as a critical driver of change in the business world.
The SEC’s decision in support of As You Sow’s proposal at PepsiCo represents a key step towards achieving greater accountability and transparency in corporate sustainability practices. By raising awareness of the economic risks associated with plastic pollution and advocating for concrete actions to address these challenges, As You Sow is driving meaningful change in the industry. As shareholders prepare to vote on the proposal in May, the outcome will signal the next chapter in PepsiCo’s journey towards more sustainable and responsible packaging practices.
