The Coca-Cola Company | Interfaith Center on Corporate Responsibility

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<strong>Company:</strong>
<p>The Coca-Cola Company</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Environment </p>
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<strong>Focus Area:</strong>
<p>GHG Reduction and Targets, Plastics Pollution, Sustainability Reporting, GHG Emphasis, Water </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>WHEREAS</strong>: Public sustainability reporting enables investors to make better informed decisions through a deeper understanding of enterprise risks and how companies manage them to deliver stable, long-term financial returns. Reporting is most useful when it aligns with recognized disclosure frameworks, thereby enhancing consistency, comparability, and relevance.<br><br>As the largest beverage company in the world, Coca-Cola’s operations both significantly impact and rely on the environment and ecosystem services. The company released sustainability reports in accordance with the GRI standards from 2019-2023. Its 2022 sustainability report identified Packaging and Circularity, Water Stewardship, and Climate Change as priority topics based on importance to stakeholders and impact on the company.1<br><br>Subsequent to 2023, the company has released Environmental Updates but not full sustainability reports.2 These updates lack decision-useful information on initiatives and outcomes related to those priority environmental topics. The sustainability section of Coca-Cola’s website does not include this missing information, and the reporting is not prepared in accordance with recognized reporting frameworks.<br><br>• Packaging: Reusable packaging is considered by experts to be one of the most effective way to reduce plastic pollution and an important sales strategy.3 Coca-Cola’s previous reporting included information on how the company was investing in refillable packaging.4 Its recent reporting omits these disclosures.<br>• Water stewardship: The Company’s recent reports also fail to disclose information about water use from its 200 high-risk locations or report progress towards its water management goal for these locations.<br>• Climate change: Coca-Cola previously disclosed a short-term, SBTi-verified GHG emissions reduction goal, its plans to reduce its emissions and progress against the old goal. Its current reporting does not provide this disclosure for its new goal to reduce emissions in line with a 1.5-degree trajectory by 2035.</p>
<p>By comparison, Coca-Cola’s peers disclose sustainability reports according to external standards.5,6,7,8 In their sustainability reporting, PepsiCo and Nestlé disclose details on how they will achieve their GHG reduction goals and progress against these goals. PepsiCo, Nestlé and KDP all provide quantitative disclosure on water use in high water-risk areas.<br><br><strong>RESOLVED</strong>: Shareholders request that Coca-Cola issue a report, at reasonable cost and omitting proprietary information, describing whether, and how, it will increase the inclusion of updated information in its sustainability disclosures that better demonstrate the effectiveness of company strategies in mitigating priority sustainability risks for the company, including mitigating risks to the business and improving environmental outcomes of its efforts.<br><br><strong>Supporting Statement</strong>: Proponents suggest, at management’s discretion, that the report:<br>• Be prepared in accordance with a recognized framework<br>• Include a materiality assessment to ensure that reporting covers issues that are material to its business.</p>
<p>1 https://www.coca-colacompany.com/content/dam/company/us/en/reports/coca-cola-business-sustainability-report-2022.pdf<br>2 https://www.coca-colacompany.com/content/dam/company/us/en/reports/2024-environmental-update/2024-environmental-update.pdf<br>3 https://www.weforum.org/stories/2025/01/tipping-point-year-for-reusable-packaging-systems/#:~:text=According%20to%20the%20United%20Nations,into%20the%20environment%20by%202040<br>4 https://www.coca-colacompany.com/content/dam/company/us/en/reports/coca-cola-business-sustainability-report-2022.pdf<br>5 https://keurigdrpepper.com/wp-content/uploads/2025/06/2024-impact-report.pdf<br>6 https://www.nestle.com/sites/default/files/2025-02/non-financial-statement-2024.pdf#page=154<br>7 https://www.nestle.com/sites/default/files/2025-02/creating-shared-value-nestle-2024.pdf<br>8 https://edge.sitecorecloud.io/pepsico-5v9wci20/media/Files/esg-topics/2024-esg-summary-esg-performance-metrics.pdf</p>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Giovanna Eichner</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Green Century Capital Management, Inc.</span></div>
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<strong>Focus Area:</strong>
<p>Human Capital Risk Management </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>WHEREAS: </strong>Equity-based policies and programs that promote diversity, equity and inclusion (DEI) strengthen workforce effectiveness and corporate performance. Evidence shows that transparent disclosure of diversity policies and quantitative outcomes mitigates material risk to brand value and financial performance: </p>

Companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax.[1]
Organizations that lead with inclusion are eight times more likely to have better business outcomes.” [2]
80% of workers prefer to work for a company that values DEI.[3]
A recent study of EEO-1 forms found a “positive association between diverse representation in management and positive financial performance.”[4]

<p>Coca-Cola Co. is lagging behind peers on diversity and inclusion disclosure. Coca-Cola earned a 13% score on As You Sow’s Racial Justice Scorecard, compared with PepsiCo’s 21% and Starbucks’s 27%.[5] The Company’s low score reflects minimal transparency on workforce data and diversity-related policies and practices. </p>
<p>Coca-Cola’s 2024 Annual Report states that “we strive to cultivate diversity in our workforce and believe teammates with different backgrounds, experiences and viewpoints bring value to our organization.[6] </p>
<p>Despite the company’s public statement about its willingness to cultivate diversity, the company’s weak diversity and inclusion disclosures reduce clarity on whether our company actually attracts and retains diverse talent critical to long-term success. The company can demonstrate ongoing success and performance in this area by increasing transparency around its diversity and inclusion policies and practices. The failure to disclose this information raises material and unacknowledged risk of reduced brand value and financial performance.</p>
<p><strong>BE IT RESOLVED: </strong>Shareholders request that Coca-Cola issue a public report, at reasonable cost and omitting proprietary information, on the extent of the Company’s current diversity, equity, and inclusion efforts.</p>
<p>[1] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/delivering-through-diversity </p>
<p>[2] https://www.ceoaction.com/purpose/</p>
<p>[3] https://www.cnbc.com/2021/04/30/diversity-equity-and-inclusion-are-important-to-workers-survey-shows.html</p>
<p>[4] https://www.asyousow.org/report-page/workplace-diversity-and-financial-performance </p>
<p>[5] https://www.asyousow.org/reports/racial-justice-june2024 </p>
<p>[6] https://investor.cokeconsolidated.com/static-files/57814901-7685-4e3c-851f-63f56335da7f, p.22</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Olivia Knight</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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<strong>Focus Area:</strong>
<p>Chemicals/Toxins, Obesity </p>
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<strong>Status:</strong>
<p>Filed</p>
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<p><strong>RESOLVED</strong>: Shareholders request that The Coca-Cola Company (“Coca-Cola”), at reasonable cost and omitting proprietary information, report to shareholders on the processes and policies, above and beyond legal compliance, to assess and manage risks and/or hazards to human health, the company’s reputation and its financial position associated with chemicals and additives in its food and beverage products.</p>
<p><br><strong>SUPPORTING STATEMENT:</strong></p>
<p>Weak federal regulations concerning Generally Recognized as Safe (GRAS) substances enable the food industry to self-regulate and determine whether an ingredient is GRAS without notifying the Food and Drug Administration (FDA) of the company’s determination or the research underlying its determination that the substance is safe.1 According to a 2022 analysis, nearly 99 percent of all food chemicals introduced since 2000 were approved by the food and chemical industry, not the FDA.2</p>
<p>The Coca-Cola Company publicly states, “We use additives in some of our drinks, including Coca-Cola Classic, to give them flavour and colour and increase their appeal. Only additives that are known and proven to be safe make it into our drinks…Additives are not necessarily artificial. Additives including citric acid, ascorbic acid and cochineal are all found in nature.”3 Coca-Cola’s Quality & Food Safety Policy states that they, “Identify, evaluate and proactively address quality and food safety risks and emerging trends.”4</p>
<p>However, there is no further disclosure regarding this process and Coca-Cola does not disclose the underlying safety and hazard assessment data for their ingredients.</p>
<p>Additionally, there have been several instances where Coca-Cola has reactively responded to ingredient safety concerns, raising questions for investors about the Company’s ability to effectively and proactively manage these risks.</p>
<p>For example, Coca-Cola committed to remove brominated vegetable oil in 2014, despite the chemical’s ban in several European countries since the 1970s due to its health harms.5 Furthermore, an external assessment has identified synthetic dyes in 22 percent of Coca-Cola’s products, and the Company has no commitment to phase these out.6 These dyes have been associated with neurobehavioral issues in children, including hyperactivity7 and adverse behavioral outcomes.8</p>
<p>Consumers are increasingly concerned about the ingredients in the products they purchase, as demonstrated by litigation claiming that the flavoring in some of Coca-Cola’s beverage products are made from synthetic substances, rather than natural ingredients.9 In response to litigation, Coca-Cola reformulated some of their products in 2007 to remove benzene, a known carcinogen.10</p>
<p>States are seeking to address the GRAS regulatory loophole by banning food chemicals that pose potential harm to human health. As of 2025, 20 states have introduced and/or passed legislation targeting food chemicals.11 The federal government is also advocating for the food industry to reduce health-harming substances in their products.12</p>
<p>The lack of transparency regarding Coca-Cola’s risk assessment and management approach, combined with growing regulatory pressures, litigation, and consumer demand for ingredient information, creates risks for shareholders and our Company.</p>
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<p>1 https://ajph.aphapublications.org/doi/full/10.2105/AJPH.2024.307755?role=tab</p>
<p>2 https://www.ewg.org/news-insights/news/2022/04/ewg-analysis-almost-all-new-food-chemicals-greenlighted-industry-not-fda</p>
<p>3 https://www.coca-cola.com/hk/en/about-us/faq/are-there-any-additives-in-cocacola</p>
<p>4 https://www.coca-colacompany.com/policies-and-practices/quality-and-food-safety-policy</p>
<p>5 https://www.chemistryworld.com/news/fda-bans-use-of-brominated-vegetable-oil-in-food-and-drink/4019765.article</p>
<p>6 https://infogram.com/synthetic-dyes-corporate-commitment-tracker-1h0n25owglewl4p</p>
<p>7 https://www.sciencedirect.com/science/article/pii/S2772529424001255</p>
<p>8 https://oehha.ca.gov/risk-assessment/press-release/report-links-synthetic-food-dyes-hyperactivity-and-other-neurobehavioral-effects-children</p>
<p>9 https://www.kazlg.com/nationwide-class-action-against-coca-cola/</p>
<p>10 https://www.beveragedaily.com/Article/2007/05/15/coca-cola-settles-in-benzene-lawsuit/?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright</p>
<p>11 https://www.ewg.org/news-insights/news/2025/10/interactive-map-tracking-state-food-chemical-regulation-us</p>
<p>12 https://www.whitehouse.gov/wp-content/uploads/2025/05/MAHA-Report-The-White-House.pdf</p>

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<div class=”views-field views-field-nothing”><span class=”field-content”> Laura Krausa</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>CommonSpirit Health</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Sr. Susan Mika</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Congregation of Benedictine Sisters, Boerne TX</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Barbara McCracken</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Benedictine Sisters of Mount St. Scholastica</span></div>
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<strong>Company:</strong>
<p>The Coca-Cola Company</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Lobbying & Political Contributions </p>
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<strong>Focus Area:</strong>
<p>Political Contributions / Lobbying / Bribery, Sexual Orientation Discrimination </p>
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<strong>Status:</strong>
<p>Filed</p>
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<p>WHEREAS: On September 13, 2024, Coca-Cola’s CEO, Director of Corporate Governance, VP & Head of Investor Relations, and Associate General Counsel & Corporate Secretary received a letter signed by investors with over $63 billion in assets.1 The letter inquired as to why Coca-Cola was sponsoring a conference featuring keynote speaker Chris Rufo, a high-profile, right-wing radical activist who has been leading attacks against marginalized communities, first by weaponizing a distorted version of “critical race theory” and then by linking LGBTQ-inclusive education practices to pedophilic “grooming.”2</p>
<p>Shareholders want to be confident that our Board of Directors and executives are focused on ensuring that our brand will attract the best and brightest employees, the most loyal customers, and long-term shareholders. The decision to sponsor the CanadaStrong and Free event on September 21, 2024, featuring Chris Rufo associates our brand with divisiveness, homophobia, hate speech, and far-right radical activism. These associations diminish our brand equity and goodwill, alienate many of our customers, and harm our ability to retain top talent.</p>
<p>Coca-Cola’s DEI webpage is titled: “Creating a culture of diversity, equity and inclusion.”It continues, “Diversity, equity and inclusion are at the heart of our values and our growth strategy and play an important part in our company’s success. We leverage the remarkable diversity of people across the world to achieve our purpose of refreshing the world and making a difference. Our aspiration is not only to mirror the diversity of thecommunities where we operate, but also to lead and advocate for a better sharedfuture.”3</p>
<p>The sponsorship of this conference, with Chris Rufo as a keynote speaker, is fundamentally misaligned with the Company’s stated goals and values related to diversity, inclusion, and civil rights.</p>
<p>The end result of our Company’s logo on Canada Strong’s website is that we have seen media coverage calling out Coca-Cola’s hypocrisy including stories in Forbes, Popular Information, as well as a video posted on X that asks, “Why is Coca-Cola associating itself with divisiveness and homophobia?”4 The video contrasts Chris Rufo’s racist statements with Coca-Cola’s declaration that: “We do not tolerate racism or discrimination of any kind. Coca-Cola has always stood for optimism, diversity and inclusion.” The video ends by asking Coca-Cola to choose “Harmony” over “Harm.”5</p>
<p>BE IT RESOLVED: Shareholders request that theCoca-Cola Board of Directors prepare and publish a report at least six months prior to the next Annual General Meeting, at reasonable expense, analyzing the negative impacts to our brand image, culture, customer base, and shareholder value of associating our brand with politically divisive events that contravene our publicly stated goals and public commitments.</p>
<p>SUPPORTING STATEMENT: Shareholders recommend, at Board and management discretion, that the report outline policies that can be put in place to avoid such risks in the future.</p>
<p>1 https://www.asyousow.org/press-releases/2024/9/13/coca-cola-mastercard-meta-and-doordashs-sponsorship-of-conference</p>
<p>2 https://www.asyousow.org/press-releases/2024/9/13/coca-cola-mastercard-meta-and-doordashs-sponsorship-of-conference</p>
<p>3 https://www.coca-colacompany.com/social/diversity-and-inclusion</p>
<p>4 https://www.forbes.com/sites/michaelposner/2024/09/12/why-us-corporations-need-to-promote-greater-workplace-diversity/;https://popular.info/p/major-corporations-sponsor-anti-woke</p>
<p>5 https://x.com/ccbecker271/status/1834674684010303832</p>
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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Andrew Behar</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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Resolution Details

Company:

The Coca-Cola Company

Year:

2025

Issue Area:

Health, Inclusiveness

Focus Area:

Obesity, Racial Justice

Status:

Filed

Resolution Text

The Access to Nutrition Initiative US Index 2022 ranked Coca-Cola last among eleven of the largest US food and beverage companies in delivering healthy, affordable products, noting that it was the only company in the Index without a nutrient profiling system.

The World Health Organization recommended “against the use of non-sugar sweeteners (NSS) to control body weight or reduce the risk of noncommunicable diseases,” and a 2022 meta-analysis found no associated long-term weight reduction benefits. The International Agency for Research on Cancer classified NSS Aspartame – used in some Coca-Cola products – as “possibly carcinogenic to humans.” A BMJ study found an increased risk of cardiovascular diseases, warning that NSS should not be used as a sugar replacement. A 2022 study identified issues with memory in adults, associated with NSS consumption in youth, even at FDA-approved levels.

Recent research found that prolonged NSS intake is associated with insulin resistance and glucose intolerance. NSS is up to 20,000 times sweeter than sugar. This intense increase in sweetness has been found to decrease palatability in less sweet food, like fruits, while increasing a drive to choose sweet food over other more nutritious options.

Some South American countries require warning labels on products containing NSS. Mexico requires warnings about NSS consumption in children, banning health-related claims and preventing child-focused marketing. South Africa is poised to implement regulations requiring NSS warning labels in 2025.

Coca-Cola states that 19 of its top 20 brands are NSS beverages, deemed safe according to testing done by “globally recognized food safety authorities.” Governing food authorities are often decades behind in reviewing products. The FDA last reviewed/approved Aspartame in 1996 and Ace-K in 2003, both of which are in Coke Zero and whose combination has been found to increase DNA damaging activity.

As the Company moves to more NSS beverage options, youth, Black and Hispanic populations continue to be a focus, most recently with a Sprite Zero campaign that appeals to communities of color and Gen Z., Trading a portfolio of sugary beverages for one of NSS products, and intentionally targeting associated advertising at populations more vulnerable to adverse health outcomes, warrants a robust review of impartial science.

Resolution Details

Company:

The Coca-Cola Company

Year:

2024

Issue Area:

Human Rights & Worker Rights, Inclusiveness

Focus Area:

Race Discrimination, Sexual Misconduct

Status:

Filed

Resolution Text

RESOLVED Shareholders request the Board of Directors oversee the preparation of an annual public report describing and quantifying the effectiveness and outcomes of Coca-Cola Consolidated’s efforts to prevent harassment and discrimination against its protected classes of employees. At its discretion, the Board may wish to consider including disclosures such as the:

total number and aggregate dollar amount of disputes settled by the company related to abuse, harassment, or discrimination in the previous three years;
total number of pending harassment or discrimination complaints the company is seeking to resolve through internal processes, arbitration, or litigation;
retention rates of employees who raise harassment or discrimination concerns, relative to total workforce retention;
aggregate dollar amount associated with the enforcement of arbitration clauses;
number of enforceable contracts for current or past employees which include concealment clauses, such as non-disclosure agreements or arbitration requirements, that restrict discussions of harassment or discrimination; and
aggregate dollar amount associated with such agreements containing concealment clauses.

This report should not include the names of accusers or details of their settlements without their consent and should be prepared at a reasonable cost and omit any information that is proprietary, privileged, or violative of contractual obligations.

SUPPORTING STATEMENT
Numerous studies have pointed to the benefits of a diverse workforce. Their findings include:

BlackRock found that companies with more gender-balanced workforces meaningfully outperformed their peers between 2013 and 2022.[1]
Companies with the strongest executive ethnic diversity were 33 percent more likely to have financial returns above their industry medians than those in the bottom quartile for executive ethnic diversity. [2]
A review of the workforce diversity of over 1,500 companies found a positive relationship between manager diversity and several financial performance indicators, including return on equity and return on invested capital.[3]

Findings from The Wall Street Journal, Harvard Business Review, Credit Suisse, and others have also pointed to the benefits of a diverse workforce.[4]

Coca-Cola Consolidated has approximately 17,000 employees[5], but limited public reporting that would allow investors to assess the health of its workplace culture.

It is unknown to what extent Coca-Cola Consolidated uses non-disclosure agreements and mandatory arbitration, which conceal from external audiences internal culture challenges. Given this, the extent to which harassment and discrimination exist within the company is unknown.

There have been several high-profile derivative suits settled, including at Twentieth Century Fox, Wynn Resorts, and Alphabet, alleging boards breached their duties by failing to protect employees from discrimination and harassment, injuring the companies and their shareholders.

Civil rights violations within the workplace can result in substantial costs to companies, including fines and penalties, legal costs, costs related to absenteeism, reduced productivity, challenges recruiting, and distraction of leadership. A company’s failure to properly manage its workforce can have significant ramifications, jeopardizing relationships with customers and other partners.

A public report such as the one requested would assist shareholders in assessing whether the Company is improving its workforce management.

[1] https://www.ft.com/content/f8b902b9-ca9a-42db-a3cd-97fe2cc13863

[2] https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/delivering-through-diversity

[3] https://www.asyousow.org/reports/2023-capturing-the-diversity-benefit

[4] https://www.asyousow.org/report-pages/workplace-diversity-and-financial-performance

[5] https://stockanalysis.com/stocks/coke/employees/

Resolution Details

Company:

The Coca-Cola Company

Year:

2024

Issue Area:

Food Justice, Health

Focus Area:

Obesity

Status:

Challenged

Resolution Text

RESOLVED: Shareholders request that The Coca-Cola Company (“Coca-Cola” or the “Company”) adopt an enterprise-wide policy to move toward more healthy products, to be defined in the discretion of the Company and beyond sugar reduction. The policy should include an assessment of the current healthiness of its portfolio, targets with timelines and metrics for measuring implementation and disclosure.

SUPPORTING STATEMENT: Coca-Cola is evolving towards a ‘Total Beverage Company’ with over 200 brands and a global reach1 . Coca-Cola identifies “Health & Nutrition” as a “Priority Topic”2 . Coca-Cola has addressed this topic until now solely by focusing on sugar and calorie reduction. This is insufficient because:

● Leading government-endorsed Nutrient Profiling Models (NPM), such as Health Star Rating and Nutriscore, show that the amount of other substances such as fiber, protein, fat, salt and micronutrients are crucial to the healthiness of food and beverage products3 4 . Only focusing on sugar and calorie reduction does not address the nutritional risks and opportunities for all its products and all the markets in which Coca-Cola is active.

● An increasing number of companies map their product portfolio and inform investors regarding the healthiness of their products. The Access to Nutrition US Index 2022 showed that the number of companies using a NPM rose from 6 in 2018 to 10 out of 11 in 2022, including peers such as Pepsico and Unilever5,6 . In this index, only Coca-Cola has not adopted a NPM. Therefore shareholders cannot assess if the Company is adapting to potential regulation, the impact of weight-loss medicines and changing consumer preferences.

● The Access to Nutrition Index advised Coca-Cola to:

o “formally adopt (in a public document or policy) a nutrition strategy covering all forms of malnutrition and groups affected and to more explicitly include nutritionrelated Key Performance Indicators (KPIs) in its sustainability agenda”.

o “independently verify the proportion of the company’s global portfolio consisting of low- or no-sugar beverages and preferably the overall proportion of ‘healthy’ products. To report on the latter, the company is advised to formally adopt a Nutrient Profiling Model (NPM) to define ‘healthy’, or publicly align the number of low- or no-sugar beverages with external benchmarks to ensure these products support healthy diets as much as possible.”7

In its 2021 Proxy Statement, Coca-Cola recognizes the importance of this Index and its findings, stating that “Part of the value of the Access to Nutrition Foundation findings in the Global Index is that the Company now has a benchmark and improved awareness of where it stands compared to other manufacturers in the food and beverage industry8 ”.

Our proposal aims to support, evolve and create accountability regarding the strategy of Coca-Cola to be a “Total Beverage Company”.

1 Vision :: The Coca-Cola Company (KO)
2 https://www.coca-colacompany.com/content/dam/company/us/en/reports/coca-cola-businesssustainability-report-2022.pdf#page=34
3 Health Star Rating – Health Star Rating
4 IARC_Evidence_Summary_Brief_2.pdf (who.int)
5 Unilever Portfolio Assessment Against
6 Nutrient Profiling Models 2022 6 pepsico-nutrition-criteria.pdf
7 Coca-Cola – Access to Nutrition
8 0001206774-22-000669.pdf (coca-colacompany.com)

Resolution Details

Company:

The Coca-Cola Company

Year:

2024

Issue Area:

Food Justice, Health, Inclusiveness

Focus Area:

Obesity, Racial Justice

Status:

Filed

Resolution Text

RESOLVED,

Shareholders of The Coca-Cola Company (“Coca-Cola” or the “Company”) request the Board of Directors issue a third party assessment by November 1, 2024, at reasonable expense and excluding proprietary information, on the Company’s efforts to assess and mitigate potential health harms associated with the use of non-sugar sweeteners (“NSS”).

The report should cover how the Company evaluates potential health impacts of NSS in its products, including the safety authorities relied upon for NSS guidance, and the Company’s affiliation with and/or financial support of researchers or research institutions, international agencies, or reporting/regulatory bodies studying or making health or safety recommendations about NSS.

WHEREAS,
The Access to Nutrition Initiative US Index 2022 ranked Coca-Cola last among eleven of the largest US food and beverage companies in delivering healthy, affordable food and beverages, noting that it was the only company in the Index without a nutrient profiling system.

The World Health Organization recently recommended “against the use of non-sugar sweeteners (NSS) to control body weight or reduce the risk of noncommunicable diseases (NCDs).” Based on a 2022 meta-analysis, no long-term benefits in reducing body fat were identified; findings suggested that long-term use of NSS “increased risk of type 2 diabetes, cardiovascular diseases, and mortality in adults.”2

The International Agency for Research on Cancer classified NSS Aspartame – used in some Coca-Cola products – as “possibly carcinogenic to humans,” and a BMJ study found an increased risk of cardiovascular diseases, warning that NSS products “should not be considered a healthy and safe alternative to sugar.” A 2021 study noted that the combination of Aspartame and sweetener acesulfame-K (both products in Coke Zero) has been shown to increase DNA damaging activity.

Coca-Cola states that 19 of its top 20 brands are NSS beverages, deemed safe by the Company according to testing done by “globally recognized food safety authorities.” Concerns arise from media reports linking findings from the Joint Expert Committee on Food Additives, which recently reaffirmed safe limits for the use of aspartame, with the International Life Sciences Institute, which has been characterized as a Coca-Cola front group.

A 2018 Rudd Center for Food Policy and Obesity study found that Coca-Cola disproportionately targeted US teens and Hispanic and Black youth with sugary beverage marketing. The Company has since increased sales of no- and low-calorie options,6 focusing new marketing strategies for the products on communities of color. Another study found a correlation between carbonated soft drink advertising and consumption, regardless of whether marketing was focused on NSS or sugar-sweetened beverages. Thus, the Company may ultimately be expanding a portfolio of harmful products, intentionally targeting populations that consistently have poorer health outcomes than non-Hispanic whites. Considering Coca-Cola’s social impact tagline, “People Matter,” it is in the Company’s best interest to create healthy products and promote them equitably.

1 https://accesstonutrition.org/index/us-index-2022/

2 https://www.who.int/news/item/15-05-2023-who-advises-not-to-use-non-sugar-sweeteners-for-weight-control-in-newly-released-guideline

3 https://www.iarc.who.int/news-events/aspartame-hazard-and-risk-assessment-results-released/

4 https://www.bmj.com/content/378/bmj-2022-071204

5 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8227014/#

6 https://www.coca-colacompany.com/content/dam/company/us/en/reports/coca-cola-business-sustainability-report-2022.pdf

7 https://usrtk.org/sweeteners/coca-cola-front-group-who-review-of-aspartame/

8 https://usrtk.org/pesticides/ilsi-is-a-food-industry-lobby-group/

9 https://media.ruddcenter.uconn.edu/PDFs/Sugary_Drink_FACTS_Full%20Report.pdf

10 https://www.ispot.tv/ad/boX_/coca-cola-zero-sugar-dr-j-in-my-head

11 https://uconnruddcenter.org/wp-content/uploads/sites/2909/2021/03/andreyeva-et-al-3.11.pdf

Resolution Details

Company:

The Coca-Cola Company

Year:

2023

Issue Area:

Lobbying & Political Contributions

Focus Area:

Political Contributions / Lobbying / Bribery

Status:

Vote

Vote Percentage:

29.10%

Resolution Text

Whereas:

Coca-Cola Company has stated “[t]here is overwhelming evidence that achieving equality and empowerment for women has broad ripple effects that are good for society.”

Criteria for political contributions to candidates from the Coca-Cola PAC include the recipient’s “support for workforce equality and inclusion” and demonstration of “a strong record for environmental sustainability.”

However, several of Coca-Cola’s politically focused expenditures in the U.S. appear to be misaligned with these stated criteria and other organizational values otherwise conveyed through its activities and statements:

In 2021, Coca-Cola faced boycotts and social media censure when it was perceived as being supportive of legislation in Georgia restricting voting rights. This perception was linked to Coca-Cola’s donations to 29 co-sponsors of the legislation (https://bit.ly/3G1prgc). CEO James Quincey later stated that Coca-Cola viewed voting as a “foundational right,” yet the Company donated to state officials who voted for laws restricting access to voting in the 2022 election cycle (https://bit.ly/3Tog6lQ).
Coca-Cola committed to recover for recycling all the bottles it sells and to use 50% recycled content by 2030. Yet, the company has spent millions of dollars to oppose passage of container deposit laws, which have proven to significantly increase recycling rates.
In the 2020-22 election cycles, the Proponent estimates that Coca-Cola has given more than $1.8 million to politicians and political organizations seeking to limit access to reproductive health care.
Following the storming of the U.S. Capitol, Coca-Cola stated, “We are all stunned by the unlawful and violent events that unfolded in Washington, D.C.,” and declared a pause in political giving of unknown duration. Yet Coke subsequently donated to federal lawmakers who opposed creating a Congressional January 6th investigation.

The Company and its investors would benefit by strengthening its policies and reporting systems to avoid future missteps in corporate electioneering and political spending that contrast with its stated diversity and environmental policies. Such an approach is likely to reduce risk to Coca-Cola’s brand and reputation.

Resolved: Shareholders request that Coca-Cola publish a report, at reasonable expense, analyzing the congruency of its political and electioneering expenditures in the U.S. during the preceding year against its publicly stated company values and policies, listing and explaining any instances of incongruent expenditures, and stating whether the Company plans to make changes in contributions or communications to candidates as a result of the identified incongruencies.

Supporting Statement:

The proponents recommend, at Board discretion, that such report also include management’s analysis of risks to our Company’s brand, reputation, or shareholder value of expenditures in conflict with the Company’s publicly stated values. “Expenditures for electioneering communications” means spending directly, or through a third party, at any time during the year, on printed, internet, or broadcast communications, which are reasonably susceptible to interpretation as being in support of or in opposition to a specific candidate.

Resolution Details

Company:

The Coca-Cola Company

Year:

2023

Issue Area:

Health, Inclusiveness

Focus Area:

Obesity, Racial Justice

Status:

Vote

Vote Percentage:

16.50%

The Coca-Cola Company Racial Equity Audit – Proxy Exempt Solicitation

o43231px14a6g.pdf

Resolution Text

RESOLVED, shareholders request that The Coca-Cola Company (“Coca-Cola”) conduct and publish a third-party audit (within a reasonable time, at a reasonable cost, and excluding confidential/proprietary information) to review its corporate policies, practices, products, and services, above and beyond legal and regulatory matters, and assess their impact on nonwhite stakeholders. Input from stakeholders, including civil rights organizations, employees, and customers, should be considered in determining the specific matters to be assessed, and the audit should include recommendations for preventing and mitigating adverse impacts. Pay equity analysis by race, which Coca-Cola will analyze in a separate study, need not be included in the audit. A report on the audit, prepared at reasonable cost and omitting confidential/proprietary information, should be published on the Company’s website.

SUPPORTING STATEMENT

The racial justice movement, coupled with the disproportionate impacts of COVID-19 on communities of color, have amplified calls for institutions to advance racial equity. Racial inequity, including racist and discriminatory policies and practices, may present significant legal, financial, and reputational business risks. In response to George Floyd’s murder, Coca-Cola’s CEO said: “as a company that believes diversity and inclusion are among our greatest strengths, we must put our resources and energy toward helping end the cycle of systemic racism.”1

Research has found that the most racially diverse and inclusive companies are more likely to outperform less diverse peers in terms of profitability.2 While Coca-Cola has recently announced a Racial Equity Action Plan,3 there are concerns around workforce commitments to racial equity that have reversed previously positive trends. Between 2010 and 2020, the proportion of Coca-Cola’s executives that were Black was nearly halved, from 15% to 8%, and the Company’s Black salaried staff also slipped by 5%.4

Additionally, Coca-Cola’s Racial Equity Action Plan does not address potential racial equity issues in its products, and some of Coca-Cola’s advertising and marketing practices have faced backlash from stakeholders. The Company’s most recent make-your-own label promotion prevented users from creating “Black Lives Matter” labels, while allowing the printing of “White Lives Matter” labels.5

A 2018 study from the Rudd Center for Food Policy and Obesity found that Coca-Cola has increased its sugary drink advertising spending by 81% since 2013, disproportionately targeting Hispanic and Black communities.6 It found that Black children and teens were exposed to twice as many advertisements than white youth.7 Increasing rates of diet-related diseases, disproportionately impacting Black and Hispanic teens, have intensified calls for healthier products and more robust responsible marketing practices.8

A racial equity audit is an important step in establishing a transparent system of accountability. An audit conducted by a third party has the additional advantage of providing objectivity, assurance and specialized expertise beyond what would be possible with an internal analysis.

1 https://www.coca-colacompany.com/news/where-we-stand-on-social-justice

2 https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters

3 https://www.coca-colacompany.com/social-impact/diversity-and-inclusion/racial-equity/our-plan

4 https://www.wsj.com/articles/coke-resets-goal-of-boosting-black-employees-after-20-year-effort-loses-ground-11608139999

5 https://edition.cnn.com/2021/06/23/business/coke-label-fail/index.html

6 https://media.ruddcenter.uconn.edu/PDFs/Sugary_Drink_FACTS_Full%20Report.pdf

7 https://www.fastcompany.com/90520068/obesity-researchers-say-coke-and-pepsi-should-stop-targeting-communities-of-color- with-ads

8 https://www.aappublications.org/news/2021/01/01/briefs-obesity010121

Enhance Sustainability Disclosures

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