Coca-Cola (KO) is drawing backlash from environmental groups after the beverage giant said it will scale back its sustainability goals, according to CNN. The company now aims to use 35%-40% recycled material in packaging by 2035, down from its earlier target of 50% by 2030. It also revised its recycling goal of collecting the equivalent of every bottle it produces by 2030. Instead, it plans to collect 70%-75% of the bottles and cans produced annually, with no set timeline. Coca-Cola cited “identified challenges” and the need for resource efficiency in its decision.
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Environmental groups have criticized the move by calling it “short-sighted” and accusing the company of greenwashing, which is when a firm markets itself as environmentally friendly, but its actual practices don’t align with those claims. Oceana condemned Coca-Cola’s reduced goals and argued that they won’t significantly curb plastic use.
In addition, Break Free from Plastic, which named Coca-Cola the top plastic polluter for the sixth year in 2023, called the revised targets a step backward in addressing the global plastic crisis. While Coca-Cola recently introduced bottles made from 100% recycled plastic in the U.S., which it claims will cut 83 million pounds of plastic from its supply chain, critics remain skeptical. This is because Coca-Cola bottles are frequently found as waste in public spaces all over the world.
What Is the Future Price of KO Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on KO stock based on 11 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 9% rally in its share price over the past year, the average KO price target of $75.33 per share implies 21.52% upside potential.
