PepsiCo has extended its target for achieving net-zero emissions by a decade due to shifting external realities.
Now, the US food and beverage giant aims for net-zero emissions “by 2050 or sooner,” a significant change from its previous goal of 2040 against a 2015 baseline.
Furthermore, PepsiCo has revised specific emissions and packaging targets while also expanding its regenerative agriculture initiatives.
The maker of Pepsi Max and Lay’s joins other major FMCG companies in refining their ESG goals. This change comes on the heels of similar adjustments by The Coca-Cola Company and Unilever in the past year.
In a statement released on May 22, PepsiCo emphasized its commitment to enhancing business resilience while focusing on areas where it can make the most positive impact.
The company noted: “The company is remaining ambitious with its sustainability targets – and in the case of regenerative agriculture, setting an even more ambitious target – evolving with the latest science and being pragmatic about where efforts have been limited by external factors and systemic barriers, such as lagging infrastructure and business growth.”
PepsiCo’s Chief Sustainability Officer, Jim Andrew, remarked: “We know it’s important that we continue to be transparent about our progress – both our successes and the challenges – and the dynamic realities that our company and the broader industry face today.”
He added, “Our sustainability journey will not always be linear, but we are focused on doing the work that can both strengthen our business resilience and support a positive impact for the planet.”
PepsiCo has established specific targets for Scope 1, 2, and 3 emissions in alignment with its 2050 objective. The company stated that these goals “reflect sectoral guidance” from The Science Based Targets Initiative.
The owner of Quaker Oats aims to reduce its Scope 1 and 2 emissions by 50% by 2030, using a 2022 baseline; previously, the target was a 75% reduction by the same year, referencing a 2015 baseline.
When it comes to Scope 3 emissions—often the most challenging to address—PepsiCo outlined two categories based on SBTi recommendations: Energy and Industry (E&I) and Forests, Land, and Agriculture (FLAG).
The firm plans to achieve a 42% reduction in E&I emissions by 2030 compared to 2022 levels. This target has been revised from an earlier goal of a 40% reduction by 2030 using a 2015 baseline.
For FLAG emissions, PepsiCo has set a new baseline and aims to cut these emissions by 30% by 2030. Previously, it sought a 40% reduction by 2030 relative to 2015 levels.
On the packaging front, the owner of Gatorade and Walkers has announced adjustments to its plastic use. It has also withdrawn its target for reusable packaging.
PepsiCo intends to decrease its use of virgin plastic by 2% each year on average until 2030, revising its earlier goal of a 20% reduction from non-renewable sources by the same timeline.
The company now aims for a minimum of 40% recycled content “by 2035 or sooner,” revising its previous target of using 50% recycled materials by 2030.
PepsiCo initially aimed to deliver 20% of all beverage servings through reusable models by 2030, but this target has been removed.
Instead, the company will emphasize a broader goal for reusable, recyclable, or compostable (RRC) packaging by design. By 2030, PepsiCo aims for at least 97% of its packaging to meet RRC standards in its primary and secondary packaging across key markets.
Matt Littlejohn, Senior Vice President of Strategic Initiatives at ocean conservation organization Oceana, stated, “By killing its reuse goal, and other goals that would actually reduce plastic packaging, Pepsi is hurting our oceans and the environment. The best way for Pepsi to reduce plastic pollution is not by abandoning goals but by dramatically increasing the use of refillable bottles – which can be used up to 50 times if made of glass.”
PepsiCo has further broadened its regenerative agriculture goal, now targeting ten million acres by 2030, up from a previous aim of seven million acres.
The company reports that it has already implemented approximately 3.5 million acres of regenerative practices.
PepsiCo Chairman and CEO Ramon Laguarta concluded: “Our goals must evolve with us to keep our ambition and to deliver on our long-term vision.”
