Plas%c pollu%on is a global systemic risk. Only 9% of plas%c waste globally is recycled1
and 95% of plas%c packaging is disposed of a>er one use, cos%ng the economy up to $120
billion annually.
2 The limits of plas%c recycling coupled with es%mates that plas%c consump%on
will double by 20403 indicate that to sufficiently mi%gate plas%cs-related risks, plas%c reduc%on
is key.
A prior sustainable packaging proposal at Starbucks received 44% support in 2019. Starbucks
has since set goals to reduce 50% of waste sent to landfills and achieve 100% reusable,
recyclable or compostable packaging by 2030.
4 However, Starbucks reported a 13% increase in
waste sent to landfills in FY23,
5 its plas%c food service items cannot be claimed as recyclable
under the U.S. Federal Trade Commission (FTC) Green Guides,
6 and its plas%c packaging
recyclability claims are now illegal under California’s SB343.
7
Insufficient ac%on to address plas%c-related risks exposes Starbucks to material financial risk:
• Regulatory risk: Regulatory developments such as extended producer responsibility
laws8 could cost companies up to $100 billion annually should governments require
them to cover the waste management costs of their packaging.9 Six states are
considering legisla%on similar to California’s SB343 that would prohibit claims of
recyclability on items that are not widely recycled.10
• Legal risk: Plas%c food packaging distributed by companies including Starbucks has low
acceptance rates for recycling,
11 rendering Starbucks’ plas%c packaging recyclable
labeling misleading under the FTC Green Guides and illegal in California. Addi%onally, the
California State A_orney General is inves%ga%ng the use of recyclable labels and recently
filed a lawsuit against Exxon for making misleading claims about plas%c recyclability.
12
• Reputa4onal risk: Recent research indicates that consumers’ demands for sustainability
and trustworthiness are increasing,
13 while mul%ple inves%ga%ons into claims of plas%crecyclability reveal that most plas%c packaging ends up in landfills.
1415 Inves%ga%ons into
Starbucks’ plas%cs recyclability claims could incur nega%ve media a_en%on and heighten
reputa%onal risk.
Other food and beverage companies have demonstrated superior plas%c risk mi%ga%on
strategies: Coca-Cola aims to sell 25% of beverages in reusable/returnable containers by 203016
and Mondelez will remove misleading recycling labels by 2025.
17 Starbucks could mi%gate
plas%cs-related risks by priori%zing plas%c reduc%on, reuse programs, and materials that are
feasibly recycled