PepsiCo & Syngenta: Regenerative and Traceable Agriculture

Agriculture contributes to a lot of environmental challenges, from greenhouse gas emissions to biodiversity loss.

Tackling some of these challenges could be a big key to reducing Scope 3 emissions. 

PepsiCo has collaborated with Syngenta, a front-runner in agricultural technology and innovation, to implement Syngenta’s Sustainable Sourcing Programme.

This initiative enhances the traceability and adoption of regenerative agriculture across the food sector in a measurable and transparent manner.

It has delivered 4,000 tonnes of sunflower oil that was produced using verified regenerative practices in its first year to PepsiCo from farmers across La Pampa, Buenos Aires, Santa Fe and San Luis. 

Santiago Desmery, Oils Category Leader, PepsiCo Southern Cone and Brazil, says: “Companies have a great responsibility to care for and improve the way we produce food.

“At PepsiCo, everything we do is driven by sustainability at its core, within the framework of pep+, our global transformation strategy that aims to create and inspire positive change on the planet and in people.

“With this project, PepsiCo Southern Cone becomes the company's first region at LATAM level to have 100% regenerative agriculture in the sunflower it uses.”

Syngenta's Sustainable Sourcing programme

Syngenta’s Sustainable Sourcing programme aims to encourage farmers to adopt regenerative agriculture practices by providing both expert guidance and economic incentives.

The programme promises farmers a premium of between 1% and 2% above the domestic market price for their sunflower crops.

Farmers are supported to implement and monitor sustainable practices through this initiative, which incorporates strategies such as crop rotation, cover cropping, the use of biological inputs, efficient irrigation and developing habitats for pollinators.

The outcomes of these practices are certified by third-party entities, thus increasing the transparency and traceability within the supply chain.

The programme is expected to boost the hectares that implement these practices by at least 25% in its second stage. 

Mariale Álvarez, Head Sustainability & Corporate Affairs LATAM at Syngenta, explains: “At Syngenta, sustainability is embedded in the business.

“Regenerating soil and nature through practices that aim to leave the system better than we found it, is a commitment we assume every day.

“This time — together with a strategic partner like PepsiCo, with whom we share this same vision — we are taking this commitment one step further.

“Farmers who join our Sustainable Sourcing Programme receive an economic benefit by demonstrating the adoption of regenerative farming practices in their production process, which has a positive impact not only on the environment but also on their profitability.”

Digital tools for sustainable procurement

Digital tools can substantially enhance procurement processes by streamlining tasks such as contract management, supplier evaluation and risk management.

Advanced analytics and artificial intelligence (AI) are pivotal in enabling businesses to monitor supplier performance effectively, identify cost reductions and anticipate potential disruptions.

Syngenta's Cropwise digital platform allows farms to maintain compliance with practices by verifying and measuring their generative practices while executing consistent improvement plans.

The Agriculture Value Chain (AVC) programme will also carry out the commercialisation of sunflower grain.

This will support the exchange and export of oil.

Sustainable sourcing in the future

Syngenta’s Sustainable Sourcing Programme will leverage procurement to enhance sustainability as teams begin to play a larger role in meeting corporate ESG goals.

Sebastian Dicundo, President of Agribusiness Diorsem, explains the impact being a grower in the programme has had: “Being part of the Sustainable Sourcing programme means more than just improving soil health and producing more sustainably.

"The premium we receive for each ton of sunflower produced using regenerative practices is a real and tangible incentive.” 

Through initiatives like this one, farmers can also improve long-term relationships between buyers and suppliers by receiving rewards for sustainable practices. 

Procurement’s focus in the future could shift from buying commodities to sourcing verified outcomes such as increased biodiversity and reduced carbon emissions.

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