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PepsiCo doubles its climate goal and pledges net-zero emissions by 2040

Today PepsiCo has announced that it is doubling down on its climate goaltargeting an absolute reduction of greenhouse gas (GHG) emissions across its value chain by more than 40% by 2030. As well as this, PepsiCo is also pledging net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement.

Specifically, PepsiCo plans to reduce absolute GHG emissions across its direct operations (Scope 1 and 2) by 75% and its indirect value chain (Scope 3) by 40% by 2030 (2015 baseline).  This is expected to result in the reduction of more than 26 million metric tons of GHG emissions.

A significant focus for PepsiCo will be maximizing efficiency in its supply chain through the implementation and upgrading of environmentally sustainable manufacturing, warehousing, transportation and distribution sites, while also adopting zero- and near-zero-emission technologies. PepsiCo recognises that many of its customers have also set ambitious climate goals, and also share some greenhouse gas footprint so by working with customers there will also be the opportunity to offer consumers more sustainable, lower carbon product options.

Its new comprehensive emissions reduction plan will also focus on:

  • Further scaling sustainable agriculture and regenerative practices that help lead to emissions reduction and sequestration, as well as improved soil health and biodiversity, decreased deforestation, and increased productivity for farmers. As well as leveraging precision agriculture technology and driving a switch to renewable energy with farmers and suppliers.
  • A continued drive to reduce virgin plastic use and increase recycled content in its packaging. This includes recent announcements in Europe to move Pepsi in nine European markets into 100% recycle plastic (rPET) bottles by 2022.
  • Implementing innovative business processes that enable GHG emissions mitigation, such as its “Sustainable from the Start” program, which puts environmental impact decision-making at the heart of product design.

Speaking of the announcement, Silviu Popovici, Chief Executive Officer, PepsiCo Europe said: “There is no vaccine for climate change.  But our planet is in crisis. PepsiCo’s new climate goal will double our efforts on emission reductions. This impacts both our company-owned businesses but also includes our suppliers and bottlers.  Simply put, we all have to do more.”

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