PepsiCo Announces $160m Sustainable Kazakhstan Factory
PepsiCo products are consumed more than one billion times a day, and crop production for human food makes up 21% of global food production emissions.
Food production as a whole accounts for more than a quarter of global greenhouse gas (GHG) emissions through agriculture, processing, packaging and transportation.
The company has been making strides towards sustainability with its PepsiCo Positive (pep+) ESG strategy, aiming to reach net zero emissions by 2040.
Jim Andrew, Chief Sustainability Officer at PepsiCo says: “Across the globe, we are deploying a range of solutions to decarbonize our business and help us move a step closer to becoming net zero by 2040.
“That’s not a simple task, particularly for some of our sites that have been operating for decades.”
PepsiCo’s new facility in Kazakhstan
PepsiCo is investing US$160m to open a new snacks manufacturing facility in 2026 which will adhere to ‘sustainable operations from start’ (SOFS) principles.
The plant is set to become the largest of its kind in Central Asia, projected to produce 21,000 tonnes of salty snacks in 2027 including Lay’s potato chips.
To meet its SOFS goals, the facility will recuperate heat emissions to warm buildings and collect rainwater for reuse.
During construction up to 1,000 people will be employed, and once the plant is operational it will create around 350 jobs.
Locally sourced ingredients
Perhaps most importantly, PepsiCo aims to locally source 100% of potatoes for the facility by 2033.
PepsiCo Europe’s Chief Sustainability Officer Archana Jagannathan says sourcing local potatoes “really matters – by localising our production we can significantly reduce GHG emissions.”
Using potatoes grown locally to the plant means the ‘food miles’ of snacks produced will be lower as crops don’t have to travel long distances to be processed.
Farmers growing potatoes locally don’t have to worry about how their crops will hold up in long distance transport.
It will also aid the local economy and give local communities and farmers more opportunities.
PepsiCo’s potato breeds
Growing potatoes takes a lot of resources and can be unsustainable.
Two of the primary sustainability challenges of growing crops are water and land use.
According to the United Nations, the average supply of water per person will drop by a third in the next two decades and agriculture consumes around 70% of freshwater.
Around 80% of global deforestation is a result of agricultural production, clearing land to grow food.
These sustainability issues are a huge part of how – and why – PepsiCo breeds and chooses the right potatoes.
Potatoes are able to grow on less land and in harsher conditions than most crops and create less waste, with 85% of the plant being edible versus around 50% for cereals.
Climate change also impacts crop growth as warmer temperatures change the speed at which plants grow and severe weather like flooding can drown crops and erode the soil they grow in.
PepsiCo’s potato breeding aims to try and combat these issues, making potatoes that require less land and water and are more resistant to the conditions brought by climate change.
PepsiCo Positive ESG efforts
The pep+ strategy seems to be making a difference – the company has reached its 2025 water efficiency goal ahead of schedule and announced a further US$216m investment in regenerative agriculture.
- Positive agriculture - sourcing crops and ingredients in ways that restore the earth and strengthen farming communities
- Positive value chain - building a circular and inclusive value chain
- Positive choices - inspiring people to make choices that make more smiles for them and the planet
Looking past production, PepsiCo is using biofuel and electric powered vehicles where possible to transport its products.
The company also announced it will deliver 20% of its beverages through reusable packaging models by 2030.
It has recently introduced nutrition goals to reduce sodium and deliver more diverse ingredients in its convenient foods portfolio.
As part of this, PepsiCo released a new range of crisps in the UK – Wotsits and Monster Munch made of chickpeas.
The crisps come in the flavours BBQ Sauce, Cheese Toastie and Crispy Bacon and provide a source of fibre.
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