Cracks in the Pact: Why Walmart, Nestlé & Mars Are Exiting the US Plastics Pact

🌱 The Green Brief - Issue No. 5

By Ishaan Khemani

🚨 What Just Happened?

• The US Plastics Pact, once a flagship initiative for tackling plastic waste, is now facing a credibility crisis. Major brands like Walmart, Nestlé, Mars, Mondelēz, L’Oréal USA, and others have withdrawn from the pact — just as it gears up for more ambitious 2030 goals.
• For a coalition that once represented the future of sustainable packaging in the U.S. , this is more than just bad PR. It’s a reality check.

🧭 What Was the US Plastics Pact?

Launched in 2020 as part of the Ellen MacArthur Foundation's global plastics network, the US Plastics Pact aimed to transform how plastic is produced, used, and reused — focusing especially on the fast-moving consumer goods (FMCG) industry.

Original 2025 Targets:

• 100% of plastic packaging to be reusable, recyclable, or compostable
• 30% average recycled content in packaging
• Complete elimination of problematic and unnecessary plastics

More than 125 companies and organizations joined — from global giants to local NGOs. It was seen as a bold, voluntary commitment to shift the needle on plastic pollution.

🏃 Why Are Companies Backing Out?

1. Ambitious Goals, Sluggish Results

Despite early enthusiasm, by 2023, the numbers told a different story:

• Only 50% of packaging was reusable, recyclable, or compostable
• Recycled or biobased content averaged just 11%

Companies like Mars admitted in 2024 that while progress had been made, meeting 2025 targets was unlikely due to slow infrastructure changes and design overhauls.

2. Cost and Supply Chain Pressures

• Recycled plastic is more expensive than virgin plastic in many cases
• Lack of advanced recycling infrastructure in the US
• Global inflation and supply chain volatility post-COVID further complicated implementation

3. Shifting Priorities & Internal Strategy Resets

• PepsiCo recalibrated its own plastic reuse goals earlier this year
• Walmart stated it will miss its 2025 targets but continues to support packaging reforms via new coalitions like the EPR Leadership Forum

4. Growing Discontent Among Non-profits

Even some NGOs and stewardship councils left. For example, Heidi Sanborn from the National Stewardship Action Council said her organization saw diminishing returns and was newly asked to pay to participate — a dealbreaker for many smaller groups.

💡 Why It Matters

This is not just about plastic straws or food wrappers.

The US Plastics Pact was one of the largest voluntary business-driven sustainability initiatives in America. Its weakening sends signals across three major fronts:

🏭 1. Corporate Accountability

Despite sustainability rhetoric, big companies often step back when faced with expensive or difficult changes — especially without legal pressure.

🏛 2. Policy Vacuum in the US

Unlike the EU, which enforces Extended Producer Responsibility (EPR), the US lacks binding nationwide rules on plastic packaging. This makes voluntary initiatives fragile and dependent on goodwill.

🌍 3. Implications for the Global Plastics Treaty

With the UN Global Plastics Treaty negotiations still ongoing, the exits could:

• Undermine global unity
• Embolden other countries/industries to push for weaker language
• Delay urgent systemic reforms

🏁 Who’s Still Committed?

Despite the setbacks, several companies are doubling down through a new “activator accelerators” program. These include:

• Aldi
• Kraft Heinz
• Over a dozen more brands who are committed till 2030

The updated 2030 goals include:

• 30% recycled content
• 30% virgin plastic reduction
• Elimination of problematic materials

🧩 So... What Needs to Change?

If we want real progress, here’s what experts and advocates suggest:

1. Mandatory Policies > Voluntary Pledges

• Implement national-level EPR laws
• Introduce tax incentives for using recycled content
• Ban specific single-use plastics where alternatives exist

2. Smarter Infrastructure Investments

• Build closed-loop recycling systems
• Support bioplastics innovation
• Fund startups offering plastic alternatives

3. Tailored, Regional Approaches

As Google’s Sustainability Lead Robert Little put it:

“True systemic change often requires a mix of collaborative frameworks and independent innovation — not a one-size-fits-all approach.”

🔮 What Comes Next?

• The US Plastics Pact’s 2030 phase begins on January 1st, 2026
• Will it gain momentum again? Or fade away?
• Much depends on regulatory action, corporate will, and global diplomacy around the upcoming Plastics Treaty

🧠 Final Thought

The exits from the US Plastics Pact aren’t just corporate reshuffling — they’re a reminder that sustainability without accountability often ends in stagnation.

The challenge now is to move beyond pledges and into policies — before the plastic crisis becomes unmanageable.

💌 That’s a Wrap!

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