HomeMy WebLinkAboutAgenda - 04-17-2001-5c
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~~ ~ ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 17, 2001
Action Agenda
Item No. .5 - G
SUBJECT: Endorsement of Letters to Soft Drink Manufacturers Urging More Recycling of
Their Containers
DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y/N) NO No
ATTACHMENT(S):
Letter from GrassRoots Recycling .INFORMATION CONTACT:
Network Describing the Campaign. Blair Pollock, Solid Waste Programs
Draft Letter to Soft Drink Companies Manager, 968-2800, x161
Proposed Resolution Endorsing Grass
Roots Recycling Network Letters TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968501
Durham fi88-7331
Mebane 336-227-2031
PURPOSE: To consider adopting a resolution that would endorse the campaign by the
GrassRoots Recycling Network to encourage increase container recycling on the part of the soft
drink manufacturers.
BACKGROUND: The markets for plastic PET (polyethylene terephthalate), used
predominantly in soft drink bottles, have been flat to declining in the past four years. With the
current economic downturn, the markets are likely to soften still further. At the same time, PET
bottles are increasing their market share of all containers at the expense of aluminum and
glass. Further, the amount of bottled beverages being consumed outside the home is
constantly increasing. These factors combine to lower recycling rates and decrease any
revenues that Orange County may receive from recycling.
If the major users of PET plastic bottles increased their recycled content, market prices for PET
scrap would be strengthened through increased demand for this plastic. If these companies
also invested mare in overall improvements to the recycling rate, which is falling for both cans
and plastic bottles, then they would be acting responsibly in the communities in which they sell
their products. Now their contributions to improving recycling are small.
Shareholder meetings for Coca Cola and Pepsi Cola are being held on April 18 and May 2,
respectively. The GrassRoots Recycling Network is leading an effort, supported by many solid
waste management professionals across the Triangle J Council of Governments region, to gain
endorsements for letters that would be presented to the companies' boards ofdirectors-asking
them to increase soft drink bottle recycled content. The proposed resolution drafted by staff
would signal Orange County's support for the requested action on the part of the soft drink
manufacturers.
FINANCIAL IMPACT: Adoption ofi the resolution has no direct financial impact on Orange
County. If the bottlers followed through, there would be a positive impact on the price ofi PET
with some accompanying increase in recycling revenue likely. However, there might also be
increased expenses resulting from a likely increase in bottle volume at our drop off and curbside
programs.
RECOMMENDATION(S): The Manager recommends that the Board adopt the attached
resolution endorsing the letter from the GrassRoots Recycling Network urging soft drink
manufacturers to increase their recycling commitments.
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ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION ENDORSING GRASSROOTS RECYCLING NETWORK LETTERS
TO SOFT DRINK MANUFACTURERS URGING THEM TO INCREASE RECYCLED
CONTENT AND THE RATE OF RECYCLING OF THEIR CANS AND BOTTLES
Whereas, Orange County has a commitment to achieving a waste reduction rate of 61 % per
capita by 2006; and
Whereas, recycling as a means of waste reduction can be achieved only when there are sound
markets for the materials collected for diversion; and
Whereas, industry has a significant role to play in determining the demands for use of the
recyclable materials; and
Whereas, industry also shapes the demand for product and the types of containers it is
packaged in;
Now, be it therefore resolved, that the Orange County Board of Commissioners endorses the
attached GrassRoots Recycling Network letters urging soft drink manufacturers to increase the
recycled content of their plastic containers to 25% post-consumer waste and increase the rate
of container recycling to 80%.
This, the 17t" day of April, 2001.
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RECEIVED VIA EMAIL on April 1, 2p01:
Orange County Solid Waste Management Dept.
I want to update you on exciting progress in the GrassRoots Recycling Network's
campaign to get Coca-Cola to take responsibility for its beverage container waste. I also
want to invite your organization or business to sign onto new letters to both Coca-Cola
and PepsiCo.
I am writing to you because your organization has supported the Coke campaign in the
past -either as an endorser of the Coke Take It Back campaign in 1999, as a co-signer of
the letter to Cake in April 2000, ar as a financial supporter of GRRN.
First the update: We think major positive developments are possible shortly - if we keep
the pressure on. With support from numerous local, regional and national organizations
(like ecopledge.com on college campuses) over four years, the Coke campaign got the
attention of businesses and investors:
^ Recycling businesses have formed an alliance with GRRN and other environmental
groups to double the national recycling rate for beverage containers (see
_www.grrn.org/bear/bear.html).-- Several socially responsible investors filed
shareholder resolutions with both Coke and Pepsi to get those companies to commit
to achieving an 80 Jo recycling rate for all containers and 25% recycled plastic in
bottles within 5 years (www.~g/sharehalders/cake.htrnll.
^
-- On April 2nd we are running an ad in the Wall Street Journal asking Coke shareholders
to vote for the Coke recycling resolution (www.grrn.or~/,meda/index.html).
Now to the sign-on letter: We are gathering co-signers for letters to be delivered to the
Coke annual meeting in Delaware an April 18th, and to the Pepsi annual meeting in
Dallas on May 2nd. We'd like to get a broad spectrum of interested organizations .
(national, state, and community), businesses and government officials to sign on. We'd
also like to get individual shareholders to sign, but that isn't necessary -please forward
this if you know someone. -
I have included the Coke letter below; the Pepsi letter.is similar (to save electrons I have
not included it here, but you can view bath letters at
www.grrn.org/shareholders/colce_html).
ACTION: If your organization or business will sign on one or both letters, please email
me back with:
Organization name:
Contact person's name:
Title:
City:
State:
Phone:
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Email:
Cosign Coke letter?
Co-sign Pepsi letter?
Please forward this to friends in other organizations concerned about corporate
responsibility for waste. (Individuals can participate by writing Cake and Pepsi CEOs at
www. rrn.or /shareholders/coke.html .
Thanks for your support and hard work. If the owner of the world's best know name
brand is made to take responsibility for its waste, imagine the message that will send to
other corporations!
Best regards,
Bill Sheehan, Ph.D. Network Coordinator
GrassRoots Recycling Network
P.O. Box 49283. Athens GA 30604-9283
Tel: 706-613-7121. Fax: 706.613-7123
zezowasteCa7grrn.arg h,ttp://www_grrn.org
Dear Coca•Cala Board Member:
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On 18 April, The Coca-Cola Company will be holding its annual shareholders meeting and
considering a proposal urging the adoption of recycling initiatives. We respectfully ask
that you to give this proposal your full consideration, for it would truly benefit the
company. Exciting new things are happening at Coca Cola, and we hope that one of
these will be to bring the company into a position of undisputed environmental leadership
within the beverage industry in a very visible way.
Coca-Cola's recent decision to demonstrate environmental responsibility in the areas of
vending machine refrigerants and effluent discharges from bottling facilities is an
encouraging signal that the company is becoming more aware of how serious these
issues are. But it seems to us inconsistent to undertake such helpful measures while still
strongly opposing other environmentally beneficial policies, such as deposit systems and
closed loop recycling.
As proud Coke stock holders and concerned. citizen, we think it is of the utmost
importance that Coke be a leader specifically in promoting recycling and sustainable
packaging practices. We can think of nothing that would do more to capture the public's
imagination, appeal to young people, and give Coke an advantage over competitors than
an environmental initiative that was sincere, effective, and powerful. The environmental
community would like for Coca•Cala to make a firm commitment to establish a system
that achieves an 80/p collection rate over five years, an easily achievable goal that is
already being met in the ten U.S. states with container deposits. As you may know,
collection rates for both plastic and aluminum have been declining for six years, to the
point where the collection rate for all containers (plastic, aluminum and glass) is less
than 35 /o in non-bottle bill states, and a shocking 10% for plastic beverage containers in
non bottle bill states.
Coke can also easily introduce on a nationwide basis a minimum 25% recycled plastic in PET
beverage bottles, the level currently being achieved in Chairman Douglas Daft's native
Australia.
If both of these initiatives are undertaken together, existing industries can utilize as
feedstocks all collected plastic, glass and aluminum without market disruption. The
impact on employment, tax revenues and wealth creation could be substantial and
significant. And Coke could rightly take credit for this monumental achievement.
We hope that Coca-Cola will make a public, commitment to achieve 25°Ja plastic recycled
content and 80% collection for all containers in five years. But we also need to hear
details of how goals will be achieved, resources committed, and progress benchmarked.
Eleven years ago, Coke made certain promises that were never fulfilled, and this time
specific timeframes should be included.
It is 'also important that Coke reverse its refusal to address the issue of aluminum can
waste, which has an even greater negative impact than plastic. Indeed, each can has an
energy content of a third of a can of gasoline; industry-wide, 45 billion of these cans were
landfilled in the United States last year!
We understand many stakeholders are involved in both increasing collection and recycled
plastic content, But as the leader in this industry, Coke as an opportunity to use its
enormous influence to shape a system that can achieve these goals.
An additional concern we have is Coke's continued support of and active involvement in
organizations fighting such initiatives, including Keep America Beautiful, National Soft
Drink Association, and the company's own Civic Action Network. Each of these groups is
widely (and we believe justifiably) seen as having an anti-environmental mission, and are
working to oppose laws and regulations to protect the environment, especially bottle
deposits.
We are also distressed to see inaccurate information on these issues being repeated in
Coke's latest proxy statement opposing the shareholder proposal. We believe it will be
counter-productive for Coke to undertake a less than fully effective recycling effort, since
much of its impact would be negated by criticism from the environmental community,
which should be enthusiastic partners and cheerleaders in this undertaking.
Yes, recycling works. It's the Real Thing!
To undertake these initiatives would be a bold move. But Coke did not become one of the
world's most highly respected companies, with the world's mast widely recognized brand
name, by being timid. As the legendary Roberto Goizueta observed in his next-to-last
Annual Report, quoting the German poet Goethe, "...Boldness has a genius, power, and
magic in it. Begin it now."
We frequently read that the investment community is looking to Coke's current
management for bold action. Some believe PepsiCo has seized the initiative on fronts
such as 'New Age' and healthy beverages that appeal to young people. A rapid .and
strong commitment by Coke to these pro-environmental policies could create a huge
impact, and demonstrate that the company has the boldness and foresight to grasp the
baton of leadership and carry it to victory. As the GrassRaots Recycling Network
observes, "The eyes of the world are on Coke, and many businesses will follow its lead."
We hope you will consider the recycling proposal and irect Coca Cola management to
come up wifih exciting, innovative, conscientious policies that will benefit our company,
our community, and our habitat on which we are all ultimately dependent.
P
Sincerely yours,
Coca-Cola Shareholders
and -
Concerned Organizations
Dea PepsiCo Board Member:
On May 2, PepsiCo, Inc. will be holding its annual shareholders' meeting
and considering a proposal urging the adoption of recycling initiatives.
We respectfully ask that you to give this proposal your full consideration,
far it would truly benefit the company.
Exciting new things are happening at PepsiCo, and we hope that one of
these will be to bring the company into a position of environmental
leadership within the beverage industry in a very visible way.
._$
As proud PepsiCo shareholders and concerned citizens, we think it is of
the utmost importance that PepsiCo be a leader specifically in promoting recycling and
sustainable packaging practices. We can think of nothing that would do more to capture the
public's imagination, appeal to young people, and give PepsiCo an advantage
over competitors than an environmental initiative that was sincere, effective, and powerful.
The environmental community would like PepsiCo to make a firm commitment to establish a
system that achieves an 80% collection rate over five years,, an easily achievable goal that is
already being met in the .ten U.S. states with container deposit systems.
As you may know, collection rates for both plastic and aluminum have been declining far six
years, to the point.where the collection rate for all containers (plastic, aluminum and glass) is
less than 35% in non-battle bill states, and a shocking 10% for plastic beverage containers in
non-bottle bill states.
PepsiCo can also easily introduce on a nationwide basis a minimum 25% recycled plastic in
PET beverage bottles, the level currently being used in most bottles of Gatorade.
If both of these initiatives are undertaken together, existing industries can utilize as feedstocks
all collected plastic, glass and aluminum without market disruption. The impact on employment,
tax revenues and wealth creation could be substantial and significant. And Pepsi could
rightly take credit for this monumental achievement.
We hope that PepsiCo will make a public commitment to achieve 25% plastic recycled content
and 80% collection for all containers in five years. But we also need to hear details of how the
goals will. be achieved, resources to be committed, and benchmarks of progress. We
have heard commitments before that turned out to be empty promises.
It is also important that PepsiCo reverse its refusal to address the issue of aluminum can
waste, which has an even greater negative impact than plastic. Indeed, each can has an
energy content of a third of a can of gasoline; industry-wide, 45 billion of these cans were
landfilled in the United States last yearl
We understand there are many stakeholders involved in both increasing collection and
recycled plastic content. But as a leader in this industry, Pepsi has an opportunity to use its
enormous influence to shape a system that can achieve these goals.
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An additional concern we have is PepsiCo`s continued support of and active involvement in
organizations fighting such initiatives, including Keep America Beautifiul and the National Soft
Drink Association. These groups are widely (and we believe justifiably) seen as having an
anti-environmental mission, and are working to oppose laws and regulations to protect the
environment, especially bottle deposits.
Moreover, we are concerned that the Coca-Cola Company, PepsiCo's main competitor, has
already set goals for container recycling and recycled content plastic. In addition, while Coca-
Cola uses recycled content plastic in at least five countries, it's our understanding that
PepsiCo does not use recycled content plastic anywhere.
The investment community is looking to PepsiCo's current management far bold action. Some
believe PepsiCo has seized the initiative on fronts such as 'New Age' and healthy beverages
that appeal to young people. A rapid and strong commitment by PepsiCo to these pro-
environmental policies could create a huge impact, and demonstrate that the company
has the boldness and foresight to grasp the baton of leadership and carry it to victory.
We hope you will consider the recycling proposal and direct PepsiCo management to come up
with exciting, innovative, conscientious policies that will benefit our company, our community,
and our habitat on which we are all ultimately dependent.
Sincerely yours,
PepsiCo Shareholders
and
Concerned Organizations