PepsiCo’s Sustainability: Regeneration, Circularity & Energy
In the US, 38 million plastic bottles end up in landfills each year with 73% of beach litter consisting of plastic bottles globally.
Global beverage company PepsiCo emphasises the importance of sustainable, regenerative and circular practices.
As PepsiCo reflects on last year's strong performance across Europe, it strives to focus on growth and sustainability.
PepsiCo’s sustainability
PepsiCo has recently stated that its Scope 1 and 2 emissions have been reduced by 13% and Scope 1, 2 and 3 by 5% over the past year.
The company has decreased its virgin plastic use from non-renewable sources by 4% per year.
Guiding PepsiCo is the company’s vision to be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive).
pep+ is PepsiCo’s strategic end-to-end transformation that puts sustainability at the center of how the company will create value and growth by operating within planetary boundaries and inspiring positive change for the planet and people.
Linked to PepsiCo’s sustainability is its pep+ REnew collaboration, a first value chain partner initiative of its kind.
The partnership between PepsiCo and Partners for Tomorrow provides renewable electricity as part of PepsiCo’s goal to achieve net zero emissions by 2040.
Pep+ REnew is designed with two goals:
- Educate PepsiCo's value chain partners about their renewable electricity choices.
- Quicken the transition to renewable electricity through aggregate power purchase agreements (PPAs) and other renewable electricity procurement options.
Todd Squarek, Senior Vice President, Chief Sustainability Officer for PepsiCo Beverages North America explains: "PepsiCo has a long history of working together with our partners to advance shared sustainability goals. The Partners for Tomorrow platform aims to scale those solutions to foster the most effective partnerships and longstanding impact.
"With this platform we're leveraging the shared scale of PepsiCo's and our customers' businesses to maximise impact, drive progress toward our pep+ goals and benefit both our businesses, the planet and the communities we serve."
PepsiCo’s regenerative agriculture
PepsiCo is committed to providing sustainable solutions across all of its sectors.
In 2022, the company successfully reduced carbon emissions from agriculture by 330,000 tonnes as well as provided safe water access to an additional 12 million people – bringing the total to 91 million since 2006.
Additionally, PepsiCo has doubled its global regenerative farming footprint to cover 1.8 million acres, with 90% of its grower-sourced crops now classified as sustainably sourced.
As part of its efforts to decarbonise crop production, PepsiCo partnered with Yara International to help farmers transition to low-carbon fertilizers and precision farming tools.
The company also achieved a 25% improvement in water-use efficiency at high water-risk, company-owned locations—reaching this milestone two years ahead of its original target, using a 2015 baseline.
To advance regenerative agriculture, PepsiCo launched the sow+ Agriculture (Sow Positive Agriculture) program, designed to enable customers to invest in converting agricultural land to regenerative farming practices.
Through direct investments, farmers receive loans and grants to help transition to methods that improve soil health, reduce erosion, and enhance water quality.
The program also serves as a platform for industry leaders to discuss trends, opportunities, and risks associated with regenerative farming.
Recently, PepsiCo announced long-term, strategic partnerships with Practical Farmers of Iowa, Soil and Water Outcomes Fund and the IL Corn Growers Association to accelerate the adoption of regenerative agriculture across the United States.
These collaborations are expected to support the transition of more than three million acres to regenerative practices and contribute to an estimated three million metric tons of greenhouse gas emission reductions and removals by 2030.
Renewable energy and circularity
PepsiCo continues to advance its sustainability initiatives through strategic investments and partnerships across its operations.
The company has increased its use of renewable energy to reduce emissions at its facilities and has begun work on its first decarbonised beverage facility in the Basque Country, Spain.
In packaging circularity, PepsiCo partnered with GreenDotGroup to integrate more recycled content into its snack packaging.
Additionally, 89% of its packaging is now designed to be recyclable, compostable, biodegradable or reusable (RCBR).
PepsiCo also sold 10% of beverage servings in reusable models and incorporated 10% recycled content in plastic packaging, progressing toward its goal of 50% recycled content by 2030.
PepsiCo has also focused on community engagement, with 39 Green Teams actively driving sustainability efforts in locations across Europe.
To address sustainability challenges, PepsiCo is piloting reusable cup solutions in select markets to support its goal of delivering 20% of all beverage servings through reusable models by 2030.
One recent initiative includes a reusable cup pilot launched alongside the Oak View Group at the CFG Bank Arena in Baltimore, Maryland, where gamification strategies incentivise attendees to return their cups after use.
Other notable reusable initiatives include:
- Branded aluminum collector cups, developed in partnership with a leading convenience retailer.
- SodaStream's university campus pilot, which provided in-home SodaStream units for dorm rooms alongside reusable bottles that could be refilled at designated campus locations.
While challenges remain, PepsiCo continues to innovate and expand its sustainability efforts, working toward its long-term environmental goals.
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