PepsiCo Inc revealed plans to more than double its science-based climate goal. Plans target a reduction of absolute greenhouse gas (GHG) emissions across its value chain by more than 40% by 2030, and to achieve net-zero emissions by 2040, a decade earlier than called for in the Paris Agreement. Specifically, PepsiCo projects to reduce absolute GHG emissions across its direct operations (Scope 1 and 2) 75% and its indirect value chain (Scope 3) 40% by 2030 (2015 baseline). The beverage giant said action is expected to result in the reduction of more than 26 million metric tons of GHG emissions or the equivalent of taking more than 5 million cars off the road for a full year.
PepsiCo’s action plan is centered around both mitigation, reducing GHG emissions to decarbonize its operations and supply chain, and resilience, reducing vulnerabilities to the impacts of climate change by continuing to incorporate climate risk into business continuity plans. With agriculture accounting for approximately one quarter of worldwide GHG emissions and one-third of PepsiCo’s emissions, PepsiCo will further scale sustainable agriculture and regenerative practices that help lead to emissions reduction and sequestration, as well as improved soil health and biodiversity, decreased deforestation and increased productivity for farmers. This includes expanding the company’s global network of Demonstration Farms, which provide localized training and tools to implement sustainable practices and improve livelihoods. PepsiCo will lower GHG emissions impact with a continued drive to reduce virgin plastic use and increase recycled content in its packaging.
“There is no vaccine for climate change. But our planet is in crisis,” said Silviu Popovici, CEO of 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.” PepsiCo’s announcement aligns to the UN’s Business Ambition for 1.5°C pledge and has been approved by the Science Based Targets initiative as the most ambitious goal possible through their process. “We congratulate PepsiCo on setting an emissions reduction target consistent with limiting warming to 1.5°C, the most ambitious goal of the Paris Agreement,” said Nate Aden, Senior Associate at World Resources Institute, one of the Science-Based Targets initiative partners.
