Coca-Cola’s sustainability setbacks: 4 Tech-driven lessons for smarter logistics

Coca-Cola, a global leader in the beverage industry, once held ambitious sustainability promises. Goals such as reducing virgin plastic use by 50% and achieving 100% reusable packaging captured headlines in 2020 and 2022. Yet, fast forward to 2024, Coca-Cola has backtracked, revising goals and facing public backlash.

 

For university students and young professionals eager to learn about supply chains, logistics, and sustainability, this case offers crucial lessons. From slow progress to the need for technology-driven solutions, Coca-Cola's experience sheds light on why sustainability plans fail—and how technology can ensure they succeed.

 

Coca-Cola's Ambitious Commitments to Sustainability

 

Coca-Cola’s commitments reflected growing pressure from consumers and environmental groups:

• 2020: Reduce plastic use by 50% by 2030.
• 2022: Commit to 100% recycled packaging by 2025.
• 2024: Revised targets:
  • Use 35–40% recycled material by 2035.
  • Collect 70–75% of bottles and cans globally by 2035.

 

The shift sparked criticisms. Activists accused Coca-Cola of "watering down" its promises, while some investors raised concerns about the company’s ability to align sustainability with growth.

 

What Went Wrong? Key Setbacks

 

Coca-Cola’s struggles provide insights into common pitfalls businesses face when tackling sustainability:

 

Unrealistic Targets

• Large-scale goals, like cutting virgin plastic use by 50%, sound inspiring but require structural changes in operations, supply chains, and packaging systems.
• Without technological solutions to optimize waste and reduce costs, progress stalls.

 

Lack of Infrastructure

• Global recycling systems are insufficient to support Coca-Cola’s goals.
• For example, only 14% of plastic packaging is collected and successfully recycled worldwide.

 

Complex Supply Chains

Coca-Cola operates in 200+ countries. Managing vast logistics and ensuring accountability is nearly impossible without visibility and automation tools.

 

Consumer Behavior

While Coca-Cola encourages recycling, many consumers lack access to convenient systems for bottle collection and reuse.

 

How Technology Can Solve Sustainability Challenges

 

The setbacks Coca-Cola faces highlight one critical need: businesses must embrace technology to meet sustainability goals.

 

1. AI-Powered Forecasting

Artificial Intelligence (AI) helps businesses optimize supply chains by predicting demand and resource usage.

• Example: AI can reduce logistics inefficiencies by 20–30%, saving costs and cutting waste.
• For companies like Coca-Cola, AI can forecast plastic demand, enabling better material management and recycling.

 

2. Internet of Things (IoT)

IoT uses smart sensors to track packaging materials, inventory, and shipments in real time.

• Benefits:
  • Monitor bottle usage and collection rates.
  • Identify bottlenecks in recycling processes.
• IoT-powered logistics can ensure materials are used efficiently, reducing waste at every stage.

 

3. Blockchain for Transparency

Blockchain technology records every step of a product’s lifecycle, ensuring traceability and accountability.

• For Coca-Cola, blockchain can provide consumers with proof of recycled materials and highlight areas for improvement.
• By ensuring transparent supply chains, brands build trust and credibility.

 

4. Warehouse Management Systems (WMS)

Modern WMS solutions streamline storage, inventory, and material flows, reducing unnecessary waste.

• Coca-Cola could use these systems to automate distribution centers and improve bottle collection processes.

 

Key Takeaways

 

1. Goals Must Be Data-Driven

Ambition is great, but realistic goals backed by data are better. Businesses must track real progress, not just announce promises.

 

2. Technology Enables Efficiency

• AI, IoT, and WMS systems improve visibility, efficiency, and accountability across the supply chain.
• Companies can monitor sustainability metrics in real time and take action before setbacks occur.

 

3. Transparency Builds Trust

Businesses need tools like blockchain to prove they’re walking the talk. Clear communication builds trust with environmentally conscious consumers.