We’re taking action to address climate change and reducing greenhouse gas emissions across our value chain
2019 Sustainability Report: Focus Areas
Reducing greenhouse gas emissions
Climate change is one of the most pressing concerns facing our global food system. While the food system is currently responsible for around 30% of greenhouse gas (GHG) emissions, we believe it can become more carbon-efficient and resilient, and even has the potential to play a positive role in restoring the health of our climate.
As one of the world's leading food and beverage companies, we're committed to doing our part to curb climate change by reducing GHG emissions across our value chain. In 2015, we announced a goal to achieve a 20% reduction in absolute GHG emissions by 2030, but as the impact of climate change becomes ever more apparent, we must step up to be even more ambitious.1
Science guides our actions at PepsiCo, and the latest science calls on the global community to do more to slow and stop the rise in global temperatures.
In early 2020, we signed the UN’s Business Ambition for 1.5°C pledge, joining other leading companies in committing to set science-based emissions-reduction targets, across our entire value chain, aimed at limiting global warming to 1.5°C above pre-industrial levels, while also developing a long-term strategy for achieving net-zero emissions by 2050.
1 Against a 2015 baseline.
"WRI worked closely with PepsiCo to review how they account for their Scope 3 emissions to help inform their strategy for reducing greenhouse gas emissions across their value chain. As one of the world’s largest and most influential companies, PepsiCo’s commitment to reducing emissions in line with limiting global temperatures to 1.5oC signals their ambition and climate leadership and puts them on a path to accelerate emissions reductions."
Director of Private Sector Climate Mitigation
World Resources Institute (WRI)
Reducing our emissions
Emissions from direct operations (Scope 1 & 2) made up 9% of our footprint in 2019, while our value chain (Scope 3) accounted for 91%. Our current goal is to reduce absolute GHG emissions across our value chain by 20% by 20302 and we are accelerating our efforts to deliver against our recent pledge to help limit global warming within 1.5o C of pre-industrial levels.
Reducing GHG Emissions
From Seed to Shelf
See how we’re taking action across our entire value chain to reduce greenhouse gas emissions.
Our Sustainable Farming Program helps farmers reduce GHG-intensive fertilizer use and improve soil health to sequester more carbon.
Adopting the Renewable Energy Buyers Principles and transitioning to 100% Renewable Electricity in our U.S. direct operations, building on global progress.
Less Plastic Waste
Working to reduce the GHG emissions associated with our packaging
Reduce: working to reduce the plastic we use.
Recycle: supporting the development of a circular economy for plastic.
Reinvent: developing new solutions that don’t require the use of single-use plastics, and developing new, recyclable, lower-carbon packaging formats.
Alternative Fuels for Trucks
Diversifying the types of fuels used in our owned fleets - The Frito-Lay North America Compressed Natural Gas (CNG) fleet has driven over 287 million miles as of early 2020.
We also placed an initial reservation for 100 all-electric semi-trucks from Tesla.
More Efficient Coolers + Vending
Improving vending and cooler equipment by replacing less energy efficient models with more efficient units.
Sustainable from the Start
Our program helps ensure that each new product we develop has been designed with lifecycle carbon emissions in mind.
But we’re not stopping there. We have committed to set science-based reduction targets in line with limiting global warming to 1.5°C, while also developing a strategy for achieving net-zero emissions by 2050.
2 Against a 2015 baseline.
Making positive changes at the farm level, such as growing cover crops, can strengthen the soil’s natural recycling process and improve soil stability, reducing the need for fertilizers and limiting GHG emissions by capturing carbon. Cover crops also reduce soil erosion and nutrient loss between harvesting the main cash crop and re-seeding.
In partnership with 30 other conservation groups, agriculture technology companies, private foundations, and Federal agencies, PepsiCo is working directly with farmers in Illinois, U.S. to help them adopt conservation practices in a financially responsible way, using an approach we plan to lift and scale to other regions in the future. As part of this program, over half of the 63 farmers working with PepsiCo are growing cover crops on acres where cover crops were not grown before and the remaining program farmers have expanded their cover crop acreage.
"PepsiCo’s partnership and funding have made a real difference in Illinois farmers’ willingness to implement new practices, and these financial incentives allow farmers to offset some of the risks while making changes to their farm management practices."
Travis Deppe, member of Illinois Corn Growers Association’s Precision Conservation Management program
PepsiCo’s Sustainable from the Start program puts sustainability at the heart of product design, encouraging product development teams to make environmental impact an essential part of their decision making across the product lifecycle, from design, manufacturing, and packaging to transportation and delivery.
Throughout our global business, we’re rolling out innovative new tools to help our teams estimate the carbon and water footprint of products in development. Comparing this data to best practice benchmarks helps our product development teams make more informed decisions.
In 2020, we announced a transition to 100% renewable electricity across all U.S. direct operations, building on progress we have made globally. For example, nine countries in PepsiCo's European direct operations already generate 100% of their electricity demand from renewable sources and, in 2019, our PepsiCo Mexico Foods business met 65% of its electricity needs with wind energy.
The U.S. is PepsiCo’s largest market and accounts for nearly half of our total global electricity consumption. Our shift to renewable electricity is expected to deliver a 20% reduction in total global GHG emissions from direct operations (Scopes 1 and 2), relative to a 2015 baseline.
PepsiCo recently installed new solar rooftop panels on our New York global headquarters.
"We have entered a decade that will be critical for the future of our planet's health. PepsiCo is pursuing 100% renewable electricity in the U.S. because the severe threat that climate change poses to the world demands faster and bolder action from all of us."
Chairman and Chief Executive Officer, PepsiCo
Progress highlights in Europe:
PepsiCo’s Frito-Lay North America business aims to help reduce PepsiCo’s absolute GHG emissions by replacing its diesel-powered freight equipment with zero-emission and near-zero-emission technologies at its Modesto, California manufacturing site. The project will transform a 500,000 square-foot site into an industry-leading showcase for environmentally sustainable manufacturing, warehousing, and distribution.
Once implemented, the facility will have electric semis, trucks, tractors, and forklifts, in addition to 38 tractors powered by natural gas sourced from renewable resources. The site will also add to its infrastructure through solar power, onsite battery storage, electric vehicle charging stations for employees, and truck charging systems to power the new electric fleet.
1. EVSE: Electric Vehicle Supply Equipment
2. RNG: Renewable Natural Gas
3. ZE: Zero Emission
4. NZE: Net Zero Emission
Over the last decade, we have been leaders in significantly reducing the amount of PET in many of our beverage bottles, like those used for Gatorade. This reduces the volume of plastic as well as the total carbon impact of the packaging.
Increasing our use of rPET
Using Recycled PET (rPET) can reduce GHG emissions by 63% and total energy consumption by 79% compared to virgin PET. By increasing recycling rates to ensure there is more rPET supply and incorporating more rPET into our packaging, we can continue to reduce our carbon footprint. In Latin America, Europe, and North America, we have started moving toward 100% rPET packaging and we’re steadily increasing the rPET contents of packaging, achieving 4% in 2019, as we head toward our global goal of 25% recycled plastic content by 2025.
Partnering on innovative packaging solutions
Through the NaturALL Bottle Alliance, we are partnering with Origin Materials and peer companies to develop packaging that will reduce our carbon footprint, such as plant-based, 100% renewable plastic bottles. We aim for the bottles to be made from renewable feedstocks, like sustainably farmed trees, that are less carbon-intensive than oil-based PET and also avoid reducing food resources.
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