Leading FMCG Brands Linked to Texas Fracking Probe Over Plastic Supply Chain
Major global FMCG players including Coca-Cola and Unilever are among dozens of companies connected to a fracking site in Texas that has come under investigation for environmental violations. The site, run by petrochemical company Targa Resources, has allegedly skirted significant environmental regulations while producing plastic feedstock used by consumer goods manufacturers worldwide.
According to a joint investigation by SourceMaterial and Unearthed, a Greenpeace investigative platform, Targa Resources’ natural gas processing plant in Mont Belvieu, Texas, is supplying ethane — a key plastic building block — to facilities owned by Gulf Coast Growth Ventures (a joint venture between ExxonMobil and SABIC) and Formosa Plastics. The fossil fuel-based ethane is then transformed into polyethylene and polypropylene, widely used in FMCG packaging.
A total of 56 multinational companies, including Nestlé, PepsiCo, and Procter & Gamble, source at least some of their plastic packaging from these GDP-scale polymer producers. While these FMCG giants have committed to reducing plastic waste and carbon emissions, these findings raise critical questions about upstream supply chain sustainability and transparency.
Environmental reports claim Targa Resources has been fined at least 20 times over the past 10 years for regulatory breaches, mostly air quality violations. The facility has also faced accusations of underreporting emissions. These issues have reignited scrutiny toward the link between plastic packaging and fossil fuel extraction — a connection growing stronger as oil and gas companies double down on petrochemicals to hedge against waning fuel demand.
From a market standpoint, the investigation highlights an increasingly precarious balance for FMCG brands between meeting ambitious sustainability targets and maintaining cost-effective, mass-scale packaging supply. Polyethylene and polypropylene remain central to global consumer goods logistics, but reputational risks and regulatory pressure are mounting.
Analysts suggest the report could accelerate demand for alternative materials, including bio-based plastics and reuse-focused models, as industry leaders attempt to decouple brand reputation from fossil fuel-derived packaging. With extended producer responsibility schemes expanding globally and demand for ESG accountability intensifying, FMCG stakeholders must reassess not only the recyclability of packaging but the full lifecycle impact of its production.