PepsiCo Faces Environmental Lawsuit Over Single-Use Plastic Pollution
PepsiCo is under legal fire from environmental advocacy group Earth Island Institute, which has filed a lawsuit accusing the beverage and snack multinational of contributing significantly to plastic pollution in California’s waterways. The case, filed in the Superior Court of San Mateo County, alleges PepsiCo’s single-use plastic packaging is a major source of contamination in rivers, creeks, and the ocean.
According to Earth Island, waste linked to PepsiCo’s brands has been consistently identified during litter clean-up efforts in the state. The plaintiff argues that the company is not only responsible for the production of this waste, but also for misleading the public about the recyclability of its plastic packaging and its overall environmental impact. The group seeks compensation for the costs associated with plastic waste cleanup and mitigation, along with stronger accountability and transparency measures.
PepsiCo, which owns global brands including Lay’s, Gatorade, and Pepsi, has pledged to make 100% of its packaging recyclable, compostable, biodegradable, or reusable by 2025. Yet campaigners argue that progress has been slow, and single-use plastics remain prevalent across the company’s product range.
The legal action reflects a growing trend in environmental accountability within the FMCG sector. Companies are facing increased scrutiny from regulators, investors, and consumers over sustainability commitments and plastic usage. Notably, Earth Island’s lawsuit previously targeted other large multinationals including Coca-Cola, Nestlé, and Procter & Gamble in a 2020 case; that lawsuit was dismissed, but the organization views the new action against PepsiCo as an opportunity to establish corporate liability in California under public nuisance law.
This case underscores the mounting pressure on CPG brands to shift away from fossil fuel-based packaging and to proactively invest in circular packaging systems. As legislation tightens and ESG expectations grow, the outcome of this case could signal broader implications for packaging strategies, supply chain practices, and brand reputation management across the industry.