The company is intensifying its efforts to build a sustainable food system and will reduce carbon dioxide emissions along the entire production chain by 40% by 2030.
In Europe, the company will focus on the following activities:
- Development of sustainable agriculture, including through the use of low-carbon fertilizers and precision farming technologies, allowing to increase yields with less consumption of natural resources
- Accelerating the transition to renewable energy sources and the introduction of transport with minimal or no carbon dioxide emissions
- Reducing primary plastic and increasing the content of recycled plastic in packaging
- Development of new products with minimal impact on the environment
January 14, 2021 - PepsiCo announced a plan to double its climate targets, focusing on reducing the greenhouse gases in its operations by 40% by 2030. The company is also committed to achieving zero greenhouse gas emissions by 2040, which is ten years ahead of the Paris Agreement targets.
The company plans to reduce carbon dioxide emissions from the manufacture of its products by 75%, and in other non-manufacturing processes by 40% by 2030 (compared to 2015). This step will reduce greenhouse emissions by more than 26 million tons, which is comparable to the disappearance of more than five million cars from the road for a whole year.
“The devastating effects of climate change are becoming more tangible, and we must step up our actions to confront this challenge,” said Ramon Laguarta, Chairman and CEO of PepsiCo. “Climate preservation is a key challenge for our company as a global leader in food and beverage production. It allows the company to develop sustainably and bring positive changes to the lives of people and the planet. The new ambitious goal is to move along a difficult path, but in a critical direction. And we see no other choice but to act immediately. "
In addition to reducing emissions, PepsiCo's action plan is focused on reducing business vulnerability to climate change by incorporating climate risks into business plans and procedures. In Europe, PepsiCo has already achieved a 6% reduction in greenhouse emissions since 2015 in line with global action. The new plan to reduce carbon dioxide will affect areas such as agriculture, packaging, manufacturing and distribution.
“There is no vaccine for climate change. But our planet is in crisis, ”says Silviu Popovic, CEO of PepsiCo Europe. “The new climate targets will double our efforts to reduce greenhouse emissions — not only for our business, but also for suppliers and partners. In short, we should all put in more effort. "
The road to reducing greenhouse emissions by 40% in Europe will be based on the following actions:
- With the agriculture industry accounting for roughly a quarter of the world's greenhouse gas emissions, as well as a third of PepsiCo's, we will continue to promote sustainable farming practices to reduce greenhouse emissions and improve soil quality, reduce deforestation and increase the productivity of our farms. This step will also include expanding the network of demonstration farms to introduce sustainable agricultural practices. In Europe, PepsiCo will continue to deploy technologies to create low-carbon fertilizers from potato waste from Walker and Lay's chip factories. PepsiCo will also facilitate the transition to renewable energy among its farmers and processors of agricultural raw materials.
- PepsiCo will reduce its greenhouse gas emissions by phasing out primary plastic and increasing the proportion of recycled materials in its packaging. So, the company previously announced the transfer of the Pepsi brand to 100% polyethylene terephthalate by 2022.
- PepsiCo is modernizing its manufacturing, warehouse, transportation and distribution facilities to improve the efficiency of its supply chain, and is introducing zero or near-zero emissions technologies. From Lay's to Pepsi MAX, Quaker to Tropicana, more and more PepsiCo brands are powered by renewable electricity. PepsiCo has already switched to 100% renewable electricity in twelve countries in the European sector, and renewable energy sources - windmills, solar or photovoltaic panels - are installed at 13 different sites in the region. PepsiCo will continue to work with suppliers to achieve zero emissions in logistics through the use of artificial intelligence technologies to optimize transport routes and reduce emissions from product distribution.
- PepsiCo implements innovative business processes to reduce greenhouse gas emissions. This includes the company's “Sustainable from the Start” program, which ensures that new products are developed with a minimum impact on the environment. In addition, internal programs will be deployed to reduce the carbon emissions associated with staff travel and the choice of logistics partners.
- In Russia, the company plans to switch to renewable energy sources by 2022. As part of the RusPRO PepsiCo association, Russia is working to expand the volume of processing packaging from products. In the dairy division, the company is developing a sustainable farming program that includes measures to reduce greenhouse emissions and improve animal health.
As part of its ongoing commitment to building a more sustainable food system, PepsiCo has joined climate coalitions such as the One Trillion Trees Initiative, The Climate Group's RE100 and We Are Still In.
The company's greenhouse emissions targets are in line with the Business Ambition for 1.5 ° C pledge signed by business leaders to curb global warming and have been endorsed by the Science Based Targets initiative.
“We congratulate PepsiCo on its decision to set itself the most ambitious greenhouse gas reduction targets under the Paris Agreement, which are also in line with the overall target of keeping global warming within 1.5 ° C,” said Nate Aden, World Resources Institute spokesman and one of the partners of the Science Based Targets initiative. "Companies have a key role to play in driving greenhouse gas emissions and it is very encouraging when big players like PepsiCo take decisive action."