Shareholders who have pressured Coca-Cola Co. and PepsiCo Inc. in recent years to use recycled content in their PET bottles and boost container recycling rates are trying again.
The shareholders, including Walden Asset Management in Boston, As You Sow Foundation in San Francisco and Domini Social Investments in New York, said they are disturbed by falling container recycling rates. They filed resolutions with the companies and their two largest bottling organizations between Nov. 1 and Nov. 26 asking them to develop a plan to reverse the decline.
This year's effort, however, takes a different tack than previous years. Ken Scott, portfolio manager with Walden, said it no longer asks for recycled content in PET bottles because the companies have made progress. And Scott said the resolution no longer specifies a specific goal for recycling, but instead leaves it to the companies to set a target.
Coke and Pepsi could dispute the resolutions, however. Last year's resolutions at both soft drink companies did not get enough shareholder support to return this year, and the companies could challenge them on those grounds.
This year's resolution also targets Coca-Cola Enterprises Inc. and PepsiAmericas Inc., the bottling organizations of the firms.