When it comes to managing risk in convenience stores, there’s much to consider for operators, including plastic products and packaging, and the transition from single-use plastics to reusable alternatives, according to Brendan Collins, a partner on the environmental team in Ballard Spahr LLP’s Philadelphia offices, at CSP’s 2024 Risk Management and Captive Insurance Forum in Schaumburg, Illinois.
In his presentation Environmental and Plastics Regulations: Preparing for Sustainability Initiatives, Collins laid out the upcoming regulatory changes and issues of concern, including plastic pollution, microplastics and more.
“There is a renewed focus on plastics, especially on the state level,” Collins said.
Collins provided a specific example in his presentation of New York Attorney General Letitia James in November 2023 filing a lawsuit against beverage and food giant PepsiCo Inc. “The lawsuit alleges that PepsiCo substantially causes public harm in Buffalo, has failed to warn consumers about the potential health and environmental risks of its single-use plastic packaging, and misleads consumers and the public about its efforts to combat plastic pollution,” according to the attorney general’s office.
Collins said he believes at some point there will be resolution and that PepsiCo “will agree to do something” such as “use less plastic for their bottles” all of which Collins said in the c-store space could “come home to roost on your shelves and in your freezers where you are going to be storing those products.”
With new litigation from state attorney general offices beginning to increase regarding these issues, Collins offered opportunities convenience-store retailers can take advantage of to mitigate risk when it comes to sustainability measures and waste solutions.
Collins listed a variety of packaging and waste solutions, including commercially compostable packaging, recycling on-site, and car wash water recycling.
When it comes to building efficiency, Collins said “refrigeration and lighting make up more than 75% of electricity consumption in convenience stores and offer significant opportunities for saving energy and money.”
Looking to alternative fuel sources, Collins said “innovating to stay ahead” is important when it comes to environmental regulations.
He listed behind the meter solutions, including rooftop solar and battery storage as ways convenience stores can plan for the future. Another suggestion he discussed for operators of convenience stores is virtual power purchase agreements, which can serve larger corporate enterprise goals, aggregation of demand and other incentives.
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