PURCHASE, N.Y., Jan. 14, 2021 /PRNewswire/ -- PepsiCo, Inc.
(NASDAQ:PEP) today announced plans to more than double its
science-based climate goal, targeting a reduction of absolute
greenhouse gas (GHG) emissions across its value chain by more
than 40% by 2030. In addition, the company has pledged to achieve
net-zero emissions by 2040, one decade earlier than called for in
the Paris Agreement.
Specifically, PepsiCo plans to reduce absolute GHG emissions
across its direct operations (Scope 1 and 2) by 75% and its
indirect value chain (Scope 3) by 40% by 2030 (2015 baseline). This
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 five million cars off the road for a full year.
"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."
PepsiCo's sustainability strategy, informed by leading
science-based measures and cost-benefit analysis, focuses on the
areas where it can have the most impact, while creating scalable
models and partnerships for accelerated progress across the full
value chain. The company's emissions target aligns to the Business
Ambition for 1.5°C pledge and has been approved by the Science
Based Targets initiative as the most ambitious designation
available 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.
"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."
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 operations in more than 200
countries and territories around the world and approximately
260,000 employees, the company's emissions reduction plan will be
comprehensive across priority areas such as agriculture, packaging,
distribution and operations.
- 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.
- Through the implementation and upgrading of environmentally
sustainable manufacturing, warehousing, transportation and
distribution sites, similar to the Frito-Lay North America
facility in Modesto, Calif., the
company aims to maximize efficiency in its supply chain, while also
adopting zero- and near-zero-emission technologies.
- PepsiCo is implementing innovative business
processes that enable GHG emissions mitigation, such as its
"Sustainable from the Start" program, which puts environmental
impact decision-making at the heart of product design.
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 in North America,
will help further reinforce climate considerations in PepsiCo's
business decisions.
- From Lay's to Pepsi and Quaker to Tropicana, more and more
PepsiCo brands are being made using electricity from a mix of
renewable energy sources.
-
- In 2020, PepsiCo met its target to source 100%
renewable electricity in the U.S. and set a new
target to source 100% renewable electricity across all of its
company owned and controlled operations globally by 2030 and across
its entire franchise and third-party operations by 2040.
- PepsiCo is also expected to achieve 100% renewable electricity
in Mexico and Australia in 2021, which will bring the total
number of countries fully sourcing renewable energy in PepsiCo's
direct operations to 15 and address approximately 60% of its
direct global electricity needs through renewable sources. Twelve
countries in PepsiCo's Europe
sector already source 100% renewable electricity.
- PepsiCo continues to support the growth of new renewable energy
generation capacity through power purchase agreements. The company
has finalized agreements with renewable energy company Ørsted for
two new wind projects in Texas and Nebraska that will address nearly a quarter of
PepsiCo's total U.S. electricity needs.
"Our climate ambition is at the very heart of accelerating our
global sustainability progress, and we are using our scale and
reach to build a more sustainable and regenerative global food
system," said Jim Andrew, Chief
Sustainability Officer, PepsiCo. "It's long overdue that companies
move beyond just minimizing their environmental impact, they must
actively work to improve and regenerate the planet."
PepsiCo was recently named to CDP's Climate A List and is also
engaged in multiple partnerships and coalitions aimed at driving
action on climate change, including the One Trillion Trees
initiative, The Climate Group's RE100, Renewable Energy Buyers
Alliance, We Are Still In and the U.S. Climate Leadership Council.
For more on our collaborative work to address climate change, visit
our ESG Topics Climate page.
For More Information:
pepsicomediarelations@pepsico.com
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion
times a day in more than 200 countries and territories around the
world. PepsiCo generated more
than $67 billion in net revenue in 2019, driven by a
complementary food and beverage portfolio that includes Frito-Lay,
Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages,
including 23 brands that generate more than $1
billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Convenient Foods and Beverages by Winning with Purpose. "Winning
with Purpose" reflects our ambition to win sustainably in the
marketplace and embed purpose into all aspects of the
business. For more information,
visit www.pepsico.com.
Cautionary Statement
This release contains statements reflecting our views about our
future performance that constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are generally identified
through the inclusion of words such as "aim," "anticipate,"
"believe," "drive," "estimate," "expect," "goal," "intend," "may,"
"plan," "project," "strategy," "target" and "will" or similar
statements or variations of such terms and other similar
expressions. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results to differ
materially from those predicted in such statements, including the
impact of the spread of COVID-19; future changes in demand for
PepsiCo's products, as a result of changes in consumer preferences
or otherwise; changes in laws related to the use or disposal of
plastics or other packaging of PepsiCo's products; changes in, or
failure to comply with, applicable laws and regulations; imposition
or proposed imposition of new or increased taxes aimed at PepsiCo's
products; imposition of labeling or warning requirements on
PepsiCo's products; PepsiCo's ability to compete effectively;
political conditions, civil unrest or other developments and risks
in the markets where PepsiCo's products are made, manufactured,
distributed or sold; the ability to protect information systems
against, or effectively respond to, a cybersecurity incident or
other disruption; increased costs, disruption of supply or
shortages of raw materials and other supplies; water scarcity;
business disruptions; damage to PepsiCo's reputation or brand
image; loss of, or a significant reduction in sales to, any key
customer; disruption to the retail landscape, including rapid
growth in the e-commerce channel and hard discounters; climate
change, or legal, regulatory or market measures to address climate
change; and other factors that may adversely affect the price of
PepsiCo's publicly traded securities and financial performance. For
additional information on these and other factors that could cause
PepsiCo's actual results to materially differ from those set forth
herein, please see PepsiCo's filings with the Securities and
Exchange Commission, including its most recent annual report on
Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors
are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they
are made. PepsiCo undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE PepsiCo, Inc.