Why Walmart, Nestlé, Mars & More Have Left US Plastics Pact

The US Plastics Pact has witnessed a mass exodus of some of its most prominent members, including Walmart, Mondelēz, Mars, Nestlé and L'Oréal USA.

The pact is one of the world’s largest frameworks for addressing the problem of plastic waste, with a specific focus on the fast-moving consumer goods industry.

The departure of several high-profile companies represents a hammer blow to the pact’s aims, raising questions about the corporate world’s commitment to packaging sustainability.

The series of exits, as reported by Packaging Dive, come as the US Plastics Pact is set to transition from its original 2025 targets to more ambitious goals extending to 2030.

This follows PepsiCo’s revisions to its sustainability goals, which included changes to its goals on plastic reuse.

Challenging targets prove elusive

The coalition launched in 2020 as part of the Ellen MacArthur Foundation's global network, initially attracting around 60 participating companies, a number that rose to more than 125.

By 2023, its member companies had achieved mixed results against their commitments.

Half of the plastic packaging placed on the market by participants was reusable, recyclable or compostable, whilst recycled or biobased content averaged just 11% across packaging portfolios.

Companies had previously acknowledged the difficulty of meeting their sustainability pledges.

Who has pulled out of the pact?

Mars reported in 2024 that whilst making "good progress" on goals aligned with the Ellen MacArthur Foundation's global commitment, the company was "unlikely to fully meet them by the end of 2025" partly because "the design and infrastructure changes needed are taking longer than we anticipated".

“The initial targets set by the US Plastics Pact for 2025 were ambitious, aiming for 100% reusable, recyclable or compostable packaging and an average of 30% recycled content,” Robert Little, Sustainability Strategy Lead at Google, said on LinkedIn.

“While progress has been made, the recent departures and PepsiCo’s recalibrated targets highlight inherent systemic challenges.”

Walmart similarly expressed scepticism about achieving its targets.

"While we have made significant progress towards our ambitious 2025 goals for recycled content, virgin plastic reduction and packaging recyclability, we expect to fall short of achieving these goals by 2025," the company stated in a February 2025 update.

The retailer says it remains engaged with alternative industry coalitions, including co-founding the EPR Leadership Forum alongside several other former Plastics Pact members.

A number of non-profit organisations have also withdrawn from the initiative.

Heidi Sanborn, Executive Director of the National Stewardship Action Council, explained her organisation was not seeing benefits proportionate to time invested.

Additionally, the Pact began requiring NSAC to pay for participation, which had not previously been a condition, Heidi said.

New commitments

Despite the exits, some companies have deepened their involvement through a new "activator accelerators" programme.

This category includes Aldi, Kraft Heinz and more than a dozen other participants who have committed to remain active through 2030.

The Plastics Pact's updated targets for 2030 include eliminating problematic materials, achieving 30% recycled content and reducing virgin plastic use by 30%.

Eric Downing, the group's Director of Marketing & Communications, confirmed that most activators renew membership annually.

Industry transformation continues

The Ellen MacArthur Foundation reported in 2024 that plastics pacts globally had increased recycled content in packaging by 44% over six years.

The initiatives also eliminated 360,000 tonnes of problematic and unnecessary plastics across participating companies.

However, the recent departures suggest that voluntary corporate commitments face significant implementation challenges as deadlines approach.

Work on the 2030 targets will begin on 1st January 2026, potentially without some of the industry's largest players.

As for the future of the US Plastics Pact and its cohort of companies – that remains to be seen. With renegotiations still ongoing for the Global Plastics Treaty, the road ahead for plastic policy is up in the air.

Robert believes that it may be time to reconsider the way that frameworks enforce targets.

“One might argue that this reinforces the idea that true systemic change often requires a blend of collaborative frameworks and independent, innovative approaches tailored to specific business models and regional realities, rather than a one-size-fits-all commitment,” he said. 

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