Coca-Cola, the company behind some of the world's most popular beverages, is taking significant steps to redefine its sustainability strategy as it gears up for the future. With the release of new environmental goals aimed at 2035, the beverage giant finds itself facing scrutiny from environmental groups and the public. These newly established objectives mark a pivotal moment for the company, as they shift from earlier commitments and attempt to recalibrate their approach to corporate responsibility.
Recently, Coca-Cola announced its updated sustainability targets, which aim to address key areas like packaging, carbon emissions, and water stewardship. While the company has retained some ambitious goals, others have been altered or entirely removed, prompting concerns about its dedication to sustainable practices.
One major shift is Coca-Cola’s commitment to achieving net-zero carbon emissions by 2050, with its European branch targeting 2040. These updates represent a significant modification from earlier commitments. Previously, Coca-Cola aimed to cut absolute carbon emissions by 25% from 2015 levels by 2030. The original goal was recognized as being aligned with the global aim of limiting warming to 2 degrees Celsius, adhering to guidelines set forth by the Science-Based Targets initiative (SBTi).
Under the revised scheme, Coca-Cola no longer specifies absolute reductions but instead emphasizes the need to decrease Scope 1, 2, and 3 emissions—a shift to align with maintaining global temperature increases to 1.5 degrees Celsius, with 2019 as the new baseline. Critics are already questioning if this change is genuinely aligned with meaningful climate action, particularly as the 2015 Paris Agreement urged for strict reductions to mitigate climate change.
Coca-Cola’s recently published environmental update claims the company has made strides under its previous targets, boasting of an 8% reduction in absolute emissions compared to the 2015 benchmark and improved renewable energy use, which increased by 24% from 2022 to 2023. It’s clear eradication efforts are still underway, but questions remain about the validity of the new emission benchmarks.
Packaging remains another pillar of Coca-Cola's environmental strategy. The company reported generating nearly 6 million tonnes of packaging waste last year, including billions of bottles and cans—a monumental figure considering the global discourse around single-use plastics. Previously, Coca-Cola’s ambitious "World Without Waste" initiative pledged to make all of its packaging recyclable by 2025, commit to using 50% recycled content by 2030, and to collect one bottle for every one sold by the same year.
Progress has been made, with Coca-Cola indicating its packaging is now 90% recyclable. Nonetheless, the company has cut back on its recycled content target, lowering the original goal of 50% to 35% to 40% by 2035. The collection goal has also been adjusted downward from 100% to 70%-75%. Abandoning the refillable packaging plan shows Coca-Cola is prioritizing areas where they already have infrastructure rather than striving to innovate new systems.
The updates extend to Coca-Cola's water stewardship commitments as well. The company has reiterated its focus on returning over 100% of the water used across its global operations, but it has now opted to address water resources at high-risk locations only and has broadened this determination to cover more than 200 sites by 2035. The intent is clear—Coca-Cola is acknowledging the environmental challenges posed by water scarcity but faces criticism for the lack of specificity compared to their previous targets.
Meanwhile, Coca-Cola has also revised its agricultural sourcing goals, removing its commitment to 100% sustainable sourcing for priority ingredients, though it continues to engage with suppliers to advance these practices.
This recalibration of Coca-Cola’s sustainability ambitions can be seen as part of broader trends within the corporate world—companies striving to balance ambitious environmental goals with practical, sometimes economic, limitations. Bea Perez, Coca-Cola's Executive Vice President, acknowledged the complexity of sustainability work during the announcement of their new goals, indicating the company's need for efficient resource allocation moving forward.
Across the market, notable changes are occurring as companies adapt to consumer demand for sustainability and the pressure for responsible corporate governance. Coca-Cola is not alone. Other corporations are re-evaluing sustainability initiatives, evaluated against their operational capabilities and market pressures.
For example, Saint-Gobain, through its building materials subsidiary CertainTeed, announced impressive results, achieving 49 percent reduction of landfill waste at their Shreveport location. This milestone is attributed to new recycling efforts aimed at segregated waste management. The company has set ambitious targets, including zero waste-to-landfill across all locations, signifying their commitment to sustainable construction practices.
Saint-Gobain’s efforts are part of sweeping movements across various sectors aimed at reducing environmental impacts. Besides substantial waste reduction, they have introduced various innovative products, including wallboard lines with 60% less embodied carbon, and have revamped operational practices to save energy and water—costs attributable to legacy manufacturing processes.
Then there's the Allcargo Group, which recently released its Environmental, Social, and Governance (ESG) report, spotlighting the aim of achieving carbon neutrality by 2040. Their commitments extend to the adoption of renewable energy, the introduction of electric fleets, and innovations focusing on sustainable ocean freight practices. This echoes Coca-Cola's announcements, emphasizing the growing trend toward comprehensive sustainability strategies, especially for companies operating on global platforms.
Allcargo has committed to installing solar power at numerous facilities and optimizing logistics to minimize emissions through digital enhancements and alternative fuels. Their ambitious outlook aligns seamlessly with broader initiatives aimed at shaping sustainable practices across sectors and industries.
Lastly, Pregis, well-known for its protective packaging and flexible solutions, has matched its electricity consumption with wind power at six of its facilities. This initiative, executed before the 2040 net-zero pledge, greatly reduces its carbon emissions and exemplifies the growing industry trend toward green energy solutions. Their commitment includes enhancing energy efficiency, increasing on-site solar installations, and innovatively developing sustainable products.
This growing combination of corporate sustainability efforts seems to indicate one clear message—the pressure is on for firms across various industries to rethink and often recalibrate their environmental goals. Whether through innovative technology, substantial investment, or active engagement with customers, these companies are recognizing the need for balancing economic growth with environmental accountability.
The trend is amplified by investor demand for greater transparency and accountability around emissions. The UN-convened Net-Zero Asset Owner Alliance recently called for mandatory disclosures of Scope 3 emissions, recognizing they can comprise over 70% of total emissions and are often unreported. Major investment groups are increasingly vocal about the necessity for comprehensive disclosures to assure meaningful progress against climate change, seeking to eradicate data discrepancies hindering effective practices.
The upcoming years will undoubtedly see companies, like Coca-Cola, intensify their efforts—but whether these will result in substantial, credible progress or fall short under public scrutiny remains to be seen. The path forward will require collaboration, innovation, and perhaps most critically, accountability as consumer expectations rise and regulatory pressures increase.
Corporate sustainability is no longer just about numbers, but rather about commitments translating to transformative actions. Companies across industries must navigate this space with discernment, lest they face backlash as clocks tick down toward ambitious goals.