FMCG Giants Coca-Cola and Unilever Linked to Texas Fracking Probe
Major consumer goods companies including Coca-Cola, Unilever, and PepsiCo are facing scrutiny after a recent investigation linked dozens of plastic packaging brands to pollution from fracking operations in Texas. The probe highlights growing concerns around the upstream environmental impact of plastic packaging, a core component of FMCG supply chains.
The investigation, conducted by Unearthed – Greenpeace’s investigative journalism unit – traced the supply chain of polyethylene, a common plastic resin used in packaging. It found that plastic pellets used by well-known FMCG brands originated from facilities dependent on fracked gas extracted in West Texas’s Permian Basin. Crucially, some of these petrochemical plants—such as those operated by ExxonMobil and Shell—have been cited for violating pollution limits or exceeding permitted emissions levels.
Of the nearly 8 million tonnes of ethane-based polyethylene exported from the US in 2021 and 2022, roughly 80% was shipped from facilities in Texas and Louisiana. The report notes that these exports are primarily destined for packaging manufacturers supplying multinational brands, making FMCG companies the end-users of materials tied to significant environmental impacts.
For FMCG producers, the findings raise pressing ESG concerns, particularly as consumer and regulatory pressure mounts for companies to monitor not just their direct operations, but their entire supply chains. In a sustainability-driven market, the reliance on virgin plastic derived from fossil fuels poses both reputational and financial risks.
Both Coca-Cola and Unilever have previously committed to sustainability goals, including major pledges to increase recycled content and reduce plastic use. Coca-Cola, for instance, has a target to use 50% recycled content in its packaging by 2030, while Unilever has said it will halve its use of virgin plastic by 2025. However, the Unearthed findings suggest a gap between stated ambitions and on-the-ground sourcing practices.
The spotlight on raw material sourcing underscores a broader shift in the FMCG sector, where transparency and traceability are becoming competitive differentiators. Brands seeking to future-proof their operations may face mounting pressure to move beyond downstream recycling commitments and tackle sustainability at the raw material level.