PepsiCo Inc. has unveiled plans to more than double its science-based climate goal, targeting a reduction of greenhouse gas (GHG) emissions across its value chain by more than 40% by 2030. In addition, the company has pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement.
PepsiCo’s sustainability strategy, informed by science-based measures and cost-benefit analysis, focuses on the areas where it can have the most impact while creating scalable models and partnerships for accelerated progress across the full value chain. The company’s emissions target aligns to the Business Ambition for 1.5°C pledge and has been approved by the Science Based Targets initiative as the most ambitious designation available through their process. PepsiCo plans to reduce absolute GHG emissions across its direct operations by 75% and its indirect value chain by 40% by 2030 (2015 baseline).
“The severe impacts from climate change are worsening and we must accelerate the urgent systemic changes needed to address it,” says Ramon Laguarta, chairman and CEO of PepsiCo. “Climate action is core to our business as a global food and beverage provider 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 – there is simply no other option but immediate and aggressive action.”
PepsiCo’s action plan is centered around both mitigation, reducing GHG emissions to decarbonize its operations and supply chain, and resilience, reducing vulnerabilities to the impacts of climate change by continuing to incorporate climate risk into business continuity plans. With operations in more than 200 countries and territories around the world, and approximately 260,000 employees, the company’s emissions reduction plan will be comprehensive across priority areas such as agriculture, packaging, distribution and operations.
Through the implementation and upgrading of environmentally sustainable manufacturing, warehousing, transportation and distribution sites, similar to the Frito-Lay North America facility in Modesto, Calif., the company aims to maximize efficiency in its supply chain, while also adopting zero- and near-zero-emission technologies.
In 2020, PepsiCo met its target to source 100% renewable electricity in the U.S. and set a new target to source 100% renewable electricity across all of its company-owned and controlled operations globally by 2030 – and across its entire franchise and third-party operations by 2040. The company has finalized agreements with renewable energy company Ørsted for two new wind projects in Texas and Nebraska that will address nearly a quarter of PepsiCo’s total U.S. electricity needs.