We Americans are generally not very good at recycling. We just throw things that look like plastic in the trash with the best of intentions and then let things take their course. In our defense, what is and isn’t recyclable varies by municipality, and what is accepted is a closely guarded secret that requires a high level of government security clearance to access. And on top of that, some things that claim to be recyclable may not be.
An example is K-Cups. Keurig’s single-use coffee pods previously claimed they were recyclable. The U.S. Securities and Exchange Commission (SEC) disagrees and imposed a fine of $1.5 million on the company for this reason.
As reported ESG todayThe charges and civil penalty stem from Keurig’s 2019 and 2020 annual reports to the SEC, which stated that its K-Cups “can be effectively recycled,” but also failed to mention that two of America’s largest recycling companies “expressed significant concerns” about them. The two companies questioned the “commercial feasibility” of curbside recycling of the pods and said they would not accept them.
The Securities and Exchange Commission (SEC) ultimately found that the environmental claims were misleading and, according to research by a Keurig subsidiary, were a “significant factor” in consumers’ decision to purchase Keurig.
Public companies must ensure that the reports they file with the SEC are complete and right. When a company addresses an issue in its annual report, it is required to provide the information necessary for investors to have a complete picture of the issue so that investors can make informed investment decisions.
Keurig must now pay a $1.5 million civil penalty “without admitting or denying the Commission’s findings.”
In case you needed it, here’s another sign you should stop drinking pods. Sure, they’re convenient, but the coffee is generally low quality, and the sustainability claims are questionable at best. And with the plethora of SCA-approved automatic coffee machines on the market these days, it’s just so basic to make really high-quality coffee. There’s really no excuse, especially now that the K-Cup’s dishonest sustainability claims have been called into question.
