What is New in PepsiCo’s ‘Refined’ Sustainability Strategy?

PepsiCo has announced a major update to its PepsiCo Positive (pep+) strategy, refining key climate, packaging, agriculture and water goals to be “more resilient”.

Overall, the company’s update to its pep+ strategy will lead to a “more sustainable food system” according to Ramon Laguarta, Chairman and Chief Executive Officer at PepsiCo.

The huge update is set to further align with core business priorities and accelerate the company’s progress towards long-term sustainability. 

A more focused, scalable strategy

The updated goals, published nearly four years after the launch of pep+ in 2021, aim to streamline efforts while staying ambitious. 

"This journey is underpinned by pep+, which is an investment in building a stronger and more resilient business, today and in the future, and guides our actions to help create a more resilient, more sustainable food system,” explains Ramon.

“Our goals must evolve with us to keep our ambition and to deliver on our long-term vision.

"As circumstances evolve, PepsiCo continually adapts how we source ingredients; make, move, and sell our products; and inspire people through our brands.

"Our sustainability ambitions must evolve too – but our commitment remains the same."

The revisions are informed by learnings to date and designed to ensure that PepsiCo’s sustainability targets remain actionable and achievable. 

They also reflect a pragmatic response to systemic barriers, such as limited infrastructure for recycling and electric vehicles, fluctuating government regulations, and challenges in global supply chains.

Expanding and aligning for the climate

Among the most significant changes is PepsiCo’s expanded ambition for regenerative agriculture.

The company now aims to implement regenerative, restorative or protective practices across 10 million acres by 2030 – up from its previous goal of seven million acres. 

So far the company has already reached 3.5 million acres, including farms like one in Iowa where cover crops and no-till methods are being deployed to support soil health.

Regenerative agriculture is positioned as a powerful tool for driving biodiversity, reducing emissions, enhancing watershed health and improving farmer livelihoods. 

PepsiCo’s updated target also includes more defined objectives for nature-based outcomes.

PepsiCo’s Climate Transition Plan outlines updated targets for Scope 1, 2 and 3 emissions, aligning to the 1.5°C trajectory and aiming for net zero emissions by 2050. 

The company’s previous Scope 3 target was set at below 2°C by 2030, with a 2040 net zero ambition. 

These targets have been validated by the Science Based Targets initiative (SBTi) and reflect guidance on Forests, Land and Agriculture (FLAG) as well as Energy and Industry (E&I) emissions.

This shift brings the business in line with the latest climate science and sectoral expectations.

Realigning for impact

PepsiCo has updated its packaging strategy to focus efforts in key markets where the potential for impact is highest. 

This includes continued reductions in virgin plastic use, better packaging design and improvements across the packaging lifecycle. 

“It’s great to see PepsiCo confirming and clarifying realistic sustainability goals, aligning with cross-sector standards like Science Based Targets Network (SBTN),” wrote the Global Impact Coalition on LinkedIn. 

“To advance on your packaging targets, we invite you to join leading global plastics producers and waste managers to tackle challenges with recycling and securing sustainable biobased feedstock.”

While the company has sunset its formal reuse target, it remains committed to designing packaging that is reusable, recyclable or compostable.

The revised strategy recognises geographic and regulatory constraints. 

For example, India only passed laws allowing rPET for beverage packaging in 2023, with food packaging added this year, while China does not allow rPET inclusion in food-grade packaging.

PepsiCo has retained its 2030 net water positive goal but sharpened its focus on high-risk areas. 

After meeting its target of a 25% operational water-use efficiency improvement in high-risk watersheds, and exceeding its 15% agricultural efficiency goal two years early, the company is doubling down where it can drive the most value.

"Our sustainability journey will not always be linear, but we are focused on doing the work that can both strengthen our business resilience and support a positive impact for the planet,” says Jim Andrew, Executive Vice President and Chief Sustainability Officer at PepsiCo.

“All while remaining agile in our approach, applying learnings across our operations and sharing them with others to help create a more sustainable food system."

While some goals have been adjusted to match global progress and market realities, PepsiCo has maintained its Positive Choices nutrition targets and continues to evolve its product portfolio to meet changing consumer and commercial needs.

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE. 

Discover all our upcoming events and secure your tickets today.

Sustainability Magazine is a BizClik brand