PepsiCo takes “immediate and aggressive action” on climate goals

PepsiCo is doubling down on its sustainability goals and accelerating its efforts to build a more resilient and sustainable food system.

The business, which generated more than $67 billion in net revenue in 2019, aims to be the global leader in sustainability, with PepsiCo Chairman and CEO Ramon Laguarta saying, “there is simply no other option but immediate and aggressive action”.

To do this it is targeting a reduction of absolute greenhouse gas emissions (GHG) across its value chain by more than 40 per cent by 2030. Specifically, PepsiCo will reduce absolute GHG emissions across its direct operations by 75 per cent and its indirect value chain by 40 per cent.

The company has also pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement.

Speaking of PepsiCo’s climate goals, Laguarta said: “The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it.

“Climate action is core to our business as a global food and beverage leader and propels our PepsiCo Positive journey to deliver positive outcomes for the planet and people. Our ambitious climate goal will guide us on the steep but critical path forward.”

PepsiCo’s strategy is informed by leading science-based measures and focuses on the areas where it can have the most impact. It is centred around both mitigation and resilience by reducing GHG emissions and reducing vulnerabilities to the impacts of climate change by incorporating climate risk into business continuity plans.

In 2020, PepsiCo met its target of sourcing 100 per cent renewable electricity in the US and in 2021 it is expected to achieve 100 per cent renewable electricity in Mexico and Australia. This will bring the total number of countries fully sourcing renewable energy in PepsiCo’s direct operations to 15.

The business has set a goal of achieving 100 per cent renewable electricity across all its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040.

Jim Andrew, Chief Sustainability Officer, PepsiCo, says: “Our climate ambition is at the very heart of accelerating our global sustainability progress, and we are using our scale and reach to build a more sustainable and regenerative global food system.

“It’s long overdue that companies move beyond just minimising their environmental impact, they must actively work to improve and regenerate the planet.”

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