Global drinks giant doubles interim emissions goal and pledges to become net zero emission business by 2040
PepsiCo has become the latest global brand to sign up to an ambitious net zero emissions target, pledging to fully decarbonise its business by 2040 and announcing it has strengthened its near-term emissions targets.
The drinks giant said it had more than doubled its science-based climate goal, and was now targeting an absolute reduction in greenhouse gas emissions across its value chain by more than 40 per cent by 2030.
Specifically, PepsiCo is now planning to reduce absolute emissions across its direct operations - known as Scope 1 and 2 emissions - by 75 per cent against a 2015 baseline by 2030, while also cutting its indirect value chain or Scope 3 emissions by 40 per cent by the same date. Delivering on the net targets is expected to result in the reduction of more than 26 million metric tons of greenhouse gas emissions or the equivalent of taking more than five million cars off the road for a full year.
The interim targets are also designed to put the company on track to meet a new net zero emissions goal for 2040, a full decade earlier than the global target drawn from the Paris Agreement.
"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."
The new plan will build on recent progress that has seen emissions from PepsiCo in Europe already fall six per cent since 2015, but meeting the new targets will require a rapid acceleration in decarbonisation efforts across the business.
The company said it would focus on both reducing emissions from its operations and supply chain and enhancing resilience to climate impacts. Priority areas for action are expected to include measures to curb emissions from agriculture, packaging, distribution, and operations.
"There is no vaccine for climate change, but our planet is in crisis," said Silviu Popovici, chief executive for 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."
Specific programmes that are due to be expanded as a result of the new targets include the company's global network of Demonstration Farms that work to implement sustainable practices; the roll out of a new low emission fertiliser made from potato waste at its Walkers and Lays factories; on-going efforts to reduce virgin plastic use and increase recycled content in its packaging; and the development of more environmentally sustainable, renewables-powered manufacturing, warehousing, transportation and distribution sites
PepsiCo said it would also work with its suppliers to transition to low and zero emissions fuel in its logistics while expanding its use of AI technology to enable better route planning to reduce emissions in distribution.
"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," the company said.
The new targets were welcomed by Nate Aden, senior associate at World Resources Institute, one of the partners of the Science Based Targets initiative, which provides independent validation to demonstrate that corporate emissions targets are in line with scientists' recommendations.
"We congratulate PepsiCo on setting an emissions reduction target consistent with limiting warming to 1.5C, the most ambitious goal of the Paris Agreement," he said. "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."