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Pepsico Doubles Down on Climate Goal And Pledges Net-Zero Emissions By 2040

Pepsico Doubles Down on Climate Goal And Pledges Net-Zero Emissions By 2040

Accelerates efforts to build a more resilient and sustainable food system, reducing absolute GHG emissions more than 40% by 2030 across entire value chain

In Europe, PepsiCo will focus on:

  • Driving sustainable agriculture including scaling low emission fertilizer and precision agriculture technology to produce higher yields
  • Accelerating the transition to renewable electricity and adoption of low or zero emission fuel transport for its entire value chain
  • Reducing virgin plastic and increasing use of recycled content in packaging
  • Product design aimed at mitigating the environmental impact of its brands

[14 January 2021] PepsiCo, Inc. (NASDAQ:PEP) today announced plans to more than double its science-based climate goal, targeting an absolute 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.

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 action is expected to result in the reduction of more than 26 million metric tons of GHG emissions or the equivalent of taking more than five million cars off the road for a full year.

“The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it,” said PepsiCo Chairman and CEO Ramon Laguarta. “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 -- 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.   In Europe, PepsiCo has already reduced its total emissions by 6% since 2015, in line with global reductions, and its new comprehensive emissions reduction plan will focus on priority areas such as agriculture, packaging, distribution and operations.

“There is no vaccine for climate change.  But our planet is in crisis,” said Silviu Popovici, Chief Executive Officer, PepsiCo Europe.  “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.”

The path to 40% absolute emissions reduction in Europe will focus on the following:

  • With agriculture accounting for approximately one quarter of worldwide GHG emissions and one third of PepsiCo’s emissions, PepsiCo will further scale 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. This includes expanding the company’s global network of Demonstration Farms, to help implement sustainable practices and improve livelihoods. In Europe, PepsiCo will also roll out a technology to produce a low emission fertiliser, made from potato waste at its Walkers and Lays factories, as well as further leverage precision agriculture technology in its Quaker oat and Lay’s potato crops.  The company will also drive a switch to renewable energy with farmers and suppliers of its agricultural ingredients.
  • PepsiCo will lower GHG emissions impact with 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.
  • Through the implementation and upgrading of environmentally sustainable manufacturing, warehousing, transportation and distribution sites, the company aims to maximize efficiency in its supply chain, while also adopting zero- and near-zero-emission technologies. From Lay’s to Pepsi MAX and Quaker to Tropicana, more and more PepsiCo brands are being made using electricity from renewable sources. 12 countries in PepsiCo’s Europe sector already source 100% renewable electricity and have renewable energy sources installed on-site at 13 facilities in the region such as windmills, solar, photovoltaic panels or biomass generators.  PepsiCo will also work with its suppliers to transition to low and zero emissions fuel in its logistics while also expanding its use of AI technology to enable better route planning to reduce emissions in distribution.
  • PepsiCo is 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. Additionally, two internal carbon pricing programs, one aimed at eliminating the carbon impact of employee business air travel and another at building carbon impact into carrier selection for third party logistics will help further reinforce climate considerations in PepsiCo’s business decisions.

As part of an ongoing commitment to use PepsiCo’s scale and reach to influence the broader food system, PepsiCo is engaged in multiple coalitions aimed at driving action on climate change, including the One Trillion Trees initiative, The Climate Group’s RE100 and We Are Still In.

PepsiCo’s announcement today 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.

"We congratulate PepsiCo on setting an emissions reduction target consistent with limiting warming to 1.5°C, the most ambitious goal of the Paris Agreement," said Nate Aden, Senior Associate at World Resources Institute, one of the Science Based Targets initiative partners. "Companies have a vital role to play in driving down global emissions, and it is encouraging to see major players, such as PepsiCo, taking ambitious action."

For more on our collaborative work to address climate change, visit our ESG Topics Climate page.

About PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business.  For more information, visit www.pepsico.com.

About PepsiCo in Ukraine

PepsiСo is one of the leaders in the Ukrainian market of food and beverages, presented by Sandora and Wimm-Bill-Dann Ukraine companies. The company occupies a leading position in the market of juices and juice products, which is represented by the brands Sandora®, Sadochok®, Sandorik®. The brand portfolio also includes Pepsi®, 7UP®, Mirinda®, Lipton Ice Tea®, mineral water Aqua Mineral®. In the market of snacks the company is represented by the brands Lay's® and Hrusteam®. PepsiСo in Ukraine also has confident position in the market of dairy products with the brands Chudo®, Slovyanochka®, Mashenka® and baby food with the brand Agusha®. Additional information about PepsiСo in Ukraine is available at www.pepsico.ua

Cautionary Statement

This release contains statements reflecting our views about our future performance that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as "aim," "anticipate," "believe," "drive," "estimate," "expect," "goal," "intend," "may," "plan," "project," "strategy," "target" and "will" or similar statements or variations of such terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such statements, including the impact of the spread of COVID-19; future changes in demand for PepsiCo's products, as a result of changes in consumer preferences or otherwise; changes in laws related to the use or disposal of plastics or other packaging of PepsiCo's products; changes in, or failure to comply with, applicable laws and regulations; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of labeling or warning requirements on PepsiCo's products; PepsiCo's ability to compete effectively; political conditions, civil unrest or other developments and risks in the markets where PepsiCo's products are made, manufactured, distributed or sold; the ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption; increased costs, disruption of supply or shortages of raw materials and other supplies; water scarcity; business disruptions; damage to PepsiCo's reputation or brand image; loss of, or a significant reduction in sales to, any key customer; disruption to the retail landscape, including rapid growth in the e-commerce channel and hard discounters; climate change, or legal, regulatory or market measures to address climate change; and other factors that may adversely affect the price of PepsiCo's publicly traded securities and financial performance. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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