How PepsiCo and XPO Are Cutting CO₂ Emissions With EV Trucks
PepsiCo has partnered with XPO Logistics to decarbonise its UK supply chain, targeting more than one million kilometres of emissions-reduced freight transport per year.
The collaboration covers the brand’s primary distribution centres in Leicester, Lutterworth, Coventry and Warrington, with XPO taking on core transport operations across England and Wales.
PepsiCo’s portfolio includes both global and local names, with brands such as Pepsi MAX, Doritos, 7UP Zero Sugar and Quaker Oats alongside UK favourites like Walkers, Wotsits, Monster Munch and Pipers.
These products reach British consumers more than one billion times a day, but each item must first travel through an extensive supply chain.
The shift to lower-emissions freight aims to transform this logistics footprint without disrupting daily demand.
Electric trucks take the lead in emissions reduction
Central to the agreement is XPO’s deployment of electric heavy goods vehicles (HGVs).
The logistics firm is rolling out a fleet of Mercedes-Benz eActros trucks to manage PepsiCo’s freight needs across its UK network.
Powered entirely by batteries rather than diesel, these vehicles will move more than one million kilometres of goods per year, reducing CO₂ emissions by more than 1,200 tonnes annually.
The introduction of electric vehicles is part of a wider shift toward more sustainable logistics operations.
While the transport sector faces mounting pressure to cut emissions, practical implementation often lags behind targets.
XPO’s approach combines fleet electrification with live data analysis and scenario planning to offer PepsiCo more control over its emissions output.
To support this, XPO has introduced a proprietary CO₂ Reporting Dashboard.
This digital tool applies AI and live data to monitor emissions, enabling real-time operational changes.
The system allows PepsiCo to adjust delivery patterns, evaluate performance and stay aligned with sustainability goals while ensuring efficiency across its logistics network.
"Sustainability is in our DNA. We are proud to partner with PepsiCo on this journey, combining investment in electric mobility with advanced technology and operational excellence," says Dan Myers, Managing Director for the UK and Ireland at XPO Logistics.
"Our shared ambition goes beyond compliance — it’s about transformation. I believe this is just the beginning of what we can achieve together.”
Aligned strategies support long-term sustainability goals
This latest logistics move feeds directly into PepsiCo’s PepsiCo Positive” (pep+) programme.
First launched in 2021, the strategy ties together all aspects of the company’s operations, from sourcing and production to packaging and distribution, with a commitment to sustainability and human wellbeing.
By working with XPO, PepsiCo aims to deliver business value while respecting environmental constraints, without compromising on reliability or product availability.
“XPO Logistics has shown itself to be the ideal partner to help advance our PepsiCo Positive ambition," explains Andrew Smethurst, UK Logistics Director at PepsiCo.
"From their industry-leading sustainability credentials to a strong safety culture and transparent operational model, their team has consistently delivered innovation and value.
"This new partnership will play a vital role in further reducing our logistics emissions as we move iconic products like Walkers crisps and Doritos to our customers across the UK.”
The electric trucks themselves are supplied by Daimler Truck UK, which manufactures the eActros 600.
These long-range battery trucks are purpose-built for commercial use, capable of replacing diesel models on demanding freight routes.
Daimler views the agreement as a strong endorsement of its vehicle capabilities.
“We are very proud to strengthen our partnership further with XPO Logistics with this order of our award-winning eActros 600s for the PepsiCo partnership," comments Heiko Selzam, Managing Director at Daimler Truck UK.
"This commitment underscores the recognition of both companies of the critical role these vehicles will play in achieving their sustainability goals.
"Following extensive collaboration, this order firmly establishes the eActros 600 as a leading solution in the electric truck market.
"We are looking forward to seeing these trucks operational from 1 August.”
Electric freight and environmental alignment
While many companies talk about emissions targets, PepsiCo and XPO are placing those aims into action across core business operations.
By combining electric mobility, data-led reporting and a shared strategy, the two firms are restructuring logistics at scale.
This move not only reduces CO₂ but keeps snacks and drinks moving efficiently across the country.
With 206 sites in 14 countries, 20,000 vehicles and a million square metres of warehouse capacity, XPO is well positioned to support PepsiCo’s UK decarbonisation goals.
The company’s larger group, listed on the New York Stock Exchange, moves more than eight million tonnes of freight annually across 606 sites in North America.
In the UK, this partnership marks a shift in how major FMCG (fast-moving consumer goods) brands can reduce their logistics emissions without losing reach or reliability.
By rethinking freight, both companies hope to move further, cleaner and smarter.
