PepsiCo and Talus: A Partnership to Cut Fertiliser Emissions

PepsiCo has agreed to work with Talus on reducing emissions from fertiliser manufacturing in agricultural supply chains worldwide.

The initial agreement covers PepsiCo's Europe, Sub-Saharan Africa, Asia Pacific and Global Teams.

The collaboration will expand to the US and the proposed Blue Earth project in Minnesota.

Emissions from fertiliser manufacturing

Fertiliser production ranks among the most emissions-intensive operations in global food systems. The largest impact occurs upstream of direct supplier relationships.

"Decarbonising fertiliser is important to advancing climate progress at scale, but it should be done in a way that works for farmers," says Margaret Henry, Vice President of Sustainable and Regenerative Agriculture at PepsiCo.

According to the University of Cambridge, the production and application of fertilisers accounts for 2.6 gigatonnes of CO₂e annually. This exceeds combined emissions from aviation and shipping. For businesses with agricultural supply chains, this represents a substantial source of Scope 3 emissions.

The emissions are embedded in production processes. The Haber-Bosch process forms the basis of nearly all synthetic fertiliser production and uses natural gas as both energy source and feedstock. Steam methane reforming releases substantial CO₂.

Sustainability leaders won’t want to miss Sustainability LIVE: The Leadership Summit at London Climate Action Week, taking place at Code Node on 25 June 2026.

Register now for this exclusive invite-only event. 

According to Nature's scientific reports, production alone accounts for 38.8% of total synthetic nitrogen fertiliser emissions across the supply chain. The EU's Carbon Border Adjustment Mechanism will require importers to account for emissions embedded in fertilisers when it takes full effect in 2026. This could indicate that supply chain emissions transparency is becoming mandatory.

Low-carbon fertiliser trials

PepsiCo will combine physical low-carbon fertiliser pilots with market-based mechanisms intended to deliver auditable emissions reductions while maintaining affordability for farmers.

"This agreement helps create a strong demand signal for low-emissions ammonia while supporting both more stable input economics for growers and the long-term transition of the fertiliser market," adds Margaret.

PepsiCo will secure verified low-emissions ammonia environmental attributes through a book-and-claim model with Talus. The environmental attribute is tracked separately from the physical fertiliser flow.

"This global collaboration is a prime example of how credible market-based mechanisms can help build supply chain reliability, lower fertiliser costs for local farmers and accelerate investment in low emissions fertiliser production," says Hiro Iwanaga, CEO at Talus.

"With PepsiCo's leadership, we will work together to help derisk new capacity while supporting more resilient and sustainable food systems," Hiro adds.

Environmental attribute certificate infrastructure

S3 Markets will provide the Environmental Attribute Certificates (EACs) lifecycle management infrastructure alongside Talus. This covers issuance, tracking and retirement of what the parties believe to be the world's first tokenised ammonia fertiliser EACs from Talus's Boone project in Iowa.

"This collaboration helps demonstrate how trusted market infrastructure can support credible book-and-claim systems for low-carbon commodities," says Saman Baghestani, CEO of S3 Markets.

"By enabling secure and auditable EAC lifecycle management, we can help innovative producers like Talus and forward-looking buyers like PepsiCo to participate with confidence as these markets develop," Saman adds.

Distributed production model benefits

Talus's distributed production model could strengthen fertiliser supply chain resilience by enabling local, on-site generation of ammonia closer to where it is used.

Reducing reliance on centralised global supply chains could help mitigate geopolitical, logistical and price volatility risks.

This approach could also improve access to fertiliser supply in both developed and emerging markets.

Localised production lowers transportation emissions and costs. "By supporting initiatives like Talus, PepsiCo aims to advance lower-carbon, locally produced fertiliser solutions that can help strengthen supply chain resilience and deliver climate benefits for agriculture," says Margaret.