PepsiCo Sparks Innovation in Regenerative Agriculture

Around the world, PepsiCo products are consumed more than one billion times per day.

From the sugar in a bottle of Pepsi to the chickpeas in a packet of Crispy Bacon Wotsits, ingredients need to be grown and cared for by farmers. 

Crop production for human food makes up 21% of global food production emissions, an industry that accounts for more than a quarter of global greenhouse gas (GHG) emissions alone.

PepsiCo Positive (pep+) is the company’s sustainability strategy, centred around the goal to reach net zero emissions by 2040. 

“It's our vision to deliver a more sustainable, people-centric future, driving growth and value, for everyone,” says Ramon Laguarta, Chairman and CEO at PepsiCo. 

“It's not just a business strategy – it's a transformative journey across our operations, from production to marketing to distribution.”

PepsiCo’s sustainability strategy

The pep+ strategy is based on three pillars:

• 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 are good for them and the planet

Ramon explains: “We are dependent on the earth, relying on its resources to grow crops and produce the foods, snacks and drinks that bring joy and smiles to millions of people every day. 

“pep+ is our strategy to nurture the soil, air, and water that sustain us, positioning our company for future success and seeking to positively impact the communities we touch around the world, today and for future generations.”

The environmental impact of nitrogen in agriculture 

Nitrogen fertilisers are a widely used alternative to naturally produced nitrogen.

These fertilisers transformed the modern world so dramatically that the inventors were awarded Nobel Prizes. 

Currently, the production of ammonia for fertilisers consumes more than 1% of the world’s energy each year and the production and use of fertilisers accounts for 5% of global GHG emissions. 

By using regenerative agriculture practices, such as careful crop and soil management, farmers’ reliance on nitrogen fertilisers decreases. 

This can help to reduce the environmental impact whilst still producing enough food for the world’s growing population. 

PepsiCo’s regenerative agriculture 

Around the world, more than 35 crops and ingredients are grown for PepsiCo products.

The company aims to source crops and key ingredients in ways that strengthen farming communities and accelerate regenerative agriculture by 2030.

One of these goals is to spread the adoption of regenerative agriculture practices across seven million acres of land around the world.

The company also aims to sustainably source 100% of key ingredients, expanding to not only include its own grower-sourced crops but also crops from third parties.

Jim Andrew, Executive Vice President and Chief Sustainability Officer at PepsiCo, says: “Farming is very complex. When I get out onto a field and meet with farmers, I'm always reminded of the many different challenges they juggle every day, all so that we have food on our tables. 

“And we need them to be successful despite difficult and unpredictable conditions, so they have the resources, and interest, to keep farming for generations to come!”

In 2023 the company doubled its global regenerative farming footprint to more than 1.8 million acres.

In a partnership with AgMission, PepsiCo has awarded US$6.7m in grants to fund inventive projects exploring regenerative agriculture in Canada, Australia and Mexico. 

Ceejay Girard, Senior Manager, Sustainable Agriculture at PepsiCo, explains: “We want the crops and ingredients needed to make our foods to be grown in ways that help create the best outcome for the farmer, their land, their community and the climate.”

In Australia, the Cool Soil Initiative has received funding to help show farmers their emissions and how they could improve using data to engage with more than 300 farmers.

Another project funded in Mexico focusses on planting new crops over the residue of harvested ones and rotating crops to preserve nutrients in the soil, reducing carbon emissions. 

The grants are also supporting ‘cover cropping’ in Canada, where two crops are planted on top of each other so one can stay in the fields and replenish nutrients in the soil. 

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