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Refined sustainability goals propel PepsiCo’s progress

Refined sustainability goals propel PepsiCo’s progress
PHOTO COURTESY OF PEPSICO
BY: Maddie Lambert

Maddie Lambert

PURCHASE, NY — With the global spotlight turned on sustainability, PepsiCo announced a restructuring of its business goals to further align resources and build on the company’s overall progress.

In doing so, PepsiCo refined its climate, packaging, agriculture and water goals to build a stronger, more resilient business that can drive — and sustain — scalable environmental impact. The updated goals build on nearly four years of progress since the launch of the PepsiCo Positive (pep+) business strategy, which embeds sustainability into the company’s core operations.

Since pep+’s launch in 2021, PepsiCo has made significant progress on regenerative agriculture and water stewardship. The company has also made positive strides on its climate change and packaging goals.

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“As circumstances evolve, PepsiCo continually adapts how we source ingredients; make, move and sell our products; and inspire people through our brands,” said Ramon Laguarta, PepsiCo’s CEO. “This journey is underpinned by pep+, which is an investment in building a stronger and more resilient business — today and in the future — and guides our actions to help create a more resilient, more sustainable food system. Our goals must evolve with us to keep our ambition and to deliver on our long-term vision.”

The company remains optimistic with its sustainability targets by being pragmatic about where efforts have been limited by external factors and systemic barriers — such as the growth of the business and lagging infrastructure — and evolving with the latest science.

PepsiCo’s revised goals reflect the company’s understanding of which areas require accelerated impact and which ones will take more time, based on global enablers such as recycling and reuse infrastructure, electric grid modernization, electric vehicle charging infrastructure and varying government approaches.

“We are focused on doing the work that can both strengthen our business resilience and support a positive impact for the planet, all while remaining agile in our approach.” — Jim Andrew | chief sustainability officer | PepsiCo

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“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,” said Jim Andrew, EVP and chief sustainability officer of PepsiCo. “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, all while remaining agile in our approach, applying learnings across our operations, and sharing them with others to help create a more sustainable food system.”

The updated goals are outlined below.

Agriculture

PepsiCo has increased its regenerative agriculture goal to drive the adoption of regenerative, restorative or protective practices across 10 million acres by 2030. This expands on the original 7-million-acre regenerative agriculture goal. As of 2024, PepsiCo has already delivered approximately 3.5 million acres.

Climate

The company has updated its Scope 1, 2, and 3 targets and fully aligned them to a 34.7°F trajectory by 2050, reflecting SBTi sectoral guidance on Forests, Land, and Agriculture (FLAG), as well as Energy and Industry emissions, and now aims to achieve net-zero emissions by 2050. PepsiCo’s revised climate goals, validated by SBTi, were shaped by the latest science and the company’s learnings.

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Packaging

PepsiCo is updating its packaging goals to focus on key markets to make the most positive impact and better account for external factors outside of the company’s control. By reducing its use of virgin plastic and improving the design of its packaging, it plans to focus on investments in the packaging lifecycle. The refined packaging goals will require investment, innovation, and cross-sector collaboration to drive systemic change and support the business.

Water

PepsiCo has refreshed its water goals based on progress and learnings to date after meeting the goal of a 25% improvement in operational water-use efficiency in high-risk watersheds and exceeding the goal of 15% improvement in agricultural water-use efficiency two years early. The company is also refining its focus on high-risk areas and maintaining its goal to become net water positive by 2030.

“We will continue to embed sustainability into our company in ways that aim to enhance the strength, adaptability and future growth of our business,” Andrew added.

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