Virgin Islands Takes On Coke and Pepsi Over Plastic Waste

The U.S. Virgin Islands has launched a groundbreaking environmental lawsuit targeting Coca-Cola and PepsiCo, accusing these beverage giants of contributing massively to plastic pollution and engaging in misleading greenwashing marketing practices. This lawsuit highlights the growing concern over plastic waste in the Caribbean and the urgent need for corporate environmental accountability.

Plastic Pollution Crisis in the Virgin Islands

The lawsuit reveals a severe plastic pollution problem that threatens the Virgin Islands’ environment and economy. Single-use plastic containers from these companies make up a staggering 34% of the waste at St. Thomas’s overflowing Bovoni Landfill. This plastic pollution crisis is putting the islands’ vital tourism industry at risk, which accounts for about 60% of the local GDP. Marine ecosystems are also suffering, with 86% of coral reefs contaminated by microplastics — a critical issue for marine life and biodiversity in the region. Meanwhile, taxpayers are burdened with cleanup costs totaling $17.3 million annually, highlighting the need for extended producer responsibility and effective plastic waste management.

Greenwashing and Misleading Recycling Claims

One of the lawsuit’s main allegations centers on “systematic greenwashing” by Coca-Cola and PepsiCo. Both companies promoted their packaging as “100% recyclable” despite internal reports acknowledging the Virgin Islands lack proper recycling infrastructure to support these claims. Public sustainability commitments from both corporations fall short of reality:

• Coca-Cola used only 13.6% recycled plastic in 2022, missing its 25% target.
  
  

• PepsiCo used just 6.3% recycled plastic, far below its 20% goal.
  
  

Additionally, PepsiCo’s substantial lobbying efforts — including more than $3.8 million contributed to groups opposing Caribbean plastic regulations — contrast sharply with their “Clean Beaches” marketing campaigns. Internal documents also suggest the companies deliberately targeted environmentally-conscious consumers with misleading sustainability messaging despite the realities of their supply chains.

What Does This Lawsuit Mean for Corporate Environmental Accountability?

The Virgin Islands is seeking over $1 billion in damages, but the broader implications of this case could reshape environmental enforcement and green marketing worldwide. According to former FTC Commissioner Eleanor Phillips, the lawsuit could establish new legal standards for greenwashing claims, requiring companies to consider local recycling capabilities rather than just mainland U.S. conditions. This may drive a shift toward:

• Enforcing extended producer responsibility, holding companies accountable for the entire lifecycle of their packaging.
  
  

• Revolutionizing marketing practices to ensure environmental claims reflect actual regional infrastructure.
  
  

• Setting a precedent for aggressive government-led action against greenwashing in island nations and other territories.
  
  
  

Why This Lawsuit Matters to Businesses and Consumers

This lawsuit sends a clear message that vague or generic green claims will no longer suffice, especially in areas lacking adequate recycling systems. For marketing teams, this means aligning sustainability messaging with real-world practices and infrastructure. Companies must improve cross-departmental collaboration between marketing, legal, and supply chain functions to avoid misleading claims that can trigger legal and reputational risks.

At the same time, regulators are becoming more proactive, signaling a shift from consumer-driven complaints to formal enforcement actions against deceptive environmental marketing. Maya Hernandez, a sustainability expert, notes, “We’re witnessing the collapse of the ‘say-do gap’ in sustainability marketing. Companies can no longer separate their environmental messaging from their actual supply chain practices.”

Conclusion

The Virgin Islands’ lawsuit against Coca-Cola and PepsiCo represents a major test of corporate environmental accountability in the beverage industry and beyond. It challenges companies to be transparent and responsible in their sustainability efforts, especially in regions vulnerable to plastic pollution. For stakeholders, this case underscores the importance of realistic, infrastructure-aware green marketing and the growing power of regulatory bodies to hold corporations accountable.