Questions raised on AYS assessment of container recycling

By Editorial Staff, Resource Recycling

Questions are being raised about a new report released by shareholder advocacy group As You Sow, which says several major U.S. beverage companies would throw their support behind laws that would make them, and other producers, financially responsible for collecting and recycling their discarded packaging.

"Waste & Opportunity: U.S. Beverage Container Recycling Scorecard and Report, 2011" is the third such survey released by the organization since 2006. It discusses efforts by several companies to promote extended producer responsibility mandates while also taking steps to use more recycled content in their packaging that. AYS hopes that if companies can be persuaded to take these steps it will reverse declining bottle and can recycling rates.

The survey assigned Nestle Waters North America the highest ranking (B-) based on key performance areas in packaging, followed closely by PepsiCo and Red Bull. The report also praised Nestle Waters for publicly supporting EPR laws in the U.S., similar to those in place in Canada and Europe. Companies that didn't respond to the survey were scored based on publicly-available information.

But some in the recycling industry are questioning the conclusions drawn by the survey.

"Why did all of the beverage companies get a higher grade in this report than the last one, when recycling rates have hardly increased?" asked Susan Collins of the Container Recycling Institute.

Even AYS admits that since it released its 2008 report, "there have not been significant increases in recycled content" for beverage bottlers. The most recent report notes that companies that are not primarily in the beverage business are the ones making significant commitments to using increased recycled content. Specifically, Whole Foods Market has reached a goal of 35 percent recycled content in its 20 ounce PET and 12 ounce HDPE bottles by 2011, with a future goal of 75 percent.

Collins also questioned why the report did not include harsher criticism of the beverage companies' longstanding opposition to container deposit legislation and why many of these same firms were suddenly embracing extended producer responsibility.

In order to build strong support for EPR legislation and other measures aimed at increasing beverage container recycling rates, AYS is asking the beverage industry to better engage and integrate with related industries such as makers of consumer packaged goods and grocer retailers who produce private labels. Additionally, AYS is calling on beverage companies to better design packaging for recycling while using life-cycle assessment data to guide decisions on reducing the environmental impact of how they package their products.

This year's report was sent out to 45 companies and included, in addition to beverage companies, grocery manufacturers, fast food chains, private label beverage brands and other businesses. According to the report, PepsiCo continues to have the highest use of recycled PET, with 10 percent across all product lines, and a stated commitment to maintain and increase this percentage. Another key finding was Coca-Cola being unable to meet a commitment to use 10 percent PET across it product lines in 2010. 

"Coke has never made good on its promises of using more recycled content," continued Collins. "Pepsi has made good on its pledge of 10 percent recycled content and has a product line that is actually sourced from 100 percent recycled content. Why are they not the highest grade?"

In the past, AYS has filed shareholder resolutions, getting Coca-Cola to agree to recycle 50 percent of its own PET, glass bottles and aluminum cans by 2015. Nestle Waters North America also agreed to an industry recycling goal of 60 percent of PET bottles by 2018. AYS additionally got a commitment from PepsiCo to recycle 50 percent of PET, glass bottles and aluminum cans by 2018. However, shareholder resolutions are voluntary commitments and there are no penalties for failing to reach the pledged targets.

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