Windmills powering Tropicana production, electric trucks delivering Cheetos, crops fertilized with Walkers potato peels: At PepsiCo, the pursuit of transformative ideas like these are stepping up the company’s fight against climate change in a very big way. By walking the talk, the company has announced a new climate plan that will reduce absolute GHG emissions by more than 40% by 2030 across the entire value chain – exactly double of the company’s 2015 baseline. The company is further aiming to achieve net-zero emissions by 2040.
When achieved, the company will be able to reduce 26 million metric tons of emission, which is the equivalent of taking more than five million cars off the road for a year.
In 2020, PepsiCo already 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 severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it,” says PepsiCo Chairman and CEO Ramon Laguarta. Moving up the company’s timeline is crucial, considering the dire consequences of waiting. “There is simply no other option but immediate and aggressive action,” Laguarta says.
The exercise of measuring the carbon footprint has informed the company in its strategy for emissions reductions across the value chain. The current and future efforts put by the company is to reduce mainly the Scope 3 emissions which consist of three largest drivers:
As agriculture accounting for 34% of PepsiCo’s GHG emissions, the company’s push for sustainable agriculture and regenerative practices leads to better yields, improved soil health, lower deforestation, and productivity for farmers, and also lead to GHG emission reductions.
In order to reduce packaging emissions, the company will continue to reduce the use of virgin plastic and increase the recycled content in its packaging,
Third-party transportation and distribution.
With impleading zero and near-zero emission technologies, utilizing electric and natural gas power in warehousing, transportation, and distribution facilities.
Look at the company’s sites around the world, some of the important work is already evident. More than 400 solar panels help power the Quaker plant in Rotterdam, Netherlands. Recently, PepsiCo spent nearly $100 million to add a 681-panel solar array at an R&D facility in New York and has other solar resources at Frito-Lay facilities in California and Arizona, as well as its beverage facilities in the same states. Installation of a single windmill at the Tropicana plant in Zeebrugge, Belgium which generates approximately 40% of that site’s total electricity consumption.
This clearly depicts that more and more of the company’s direct global electricity needs are met through renewable sources.
Of course, a company the size of PepsiCo can have a significant impact — with opportunities at every point to reduce and remove greenhouse gas emissions. Hence, PepsiCo is aggressively moving towards being the Global Leader in Convenient Foods and Beverages by Winning with Purpose. “Winning with Purpose” reflects the company’s ambition to win sustainably in the marketplace and embed purpose into all aspects of the business.