GHG Emissions, Sourcing Renewables, Wind - January 14, 2021
PepsiCo pledges net-zero emissions by 2040
PepsiCo announced plans on Jan. 14 to more than double its science-based climate goal, reducing absolute greenhouse gas (GHG) emissions and achieving net-zero emissions by 2040.
The company plans to reduce emissions across its direct operations (Scope 1 and 2) by 75% and its indirect value chain (Scope 3) by 40% by 2030, lowering emissions by more than 26 million metric tons.
"The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it," PepsiCo chairman and CEO Ramon Laguarta, said in a statement. "Climate action is core to our business as a global food and beverage leader and propels our PepsiCo Positive journey to deliver positive outcomes for the planet and people. Our ambitious climate goal will guide us on the steep but critical path forward. There is simply no other option but immediate and aggressive action."
PepsiCo is implementing business processes that enable GHG emissions mitigation, such as its "Sustainable from the Start" program, which puts environmental impact decision-making at the heart of product design. Additionally, two internal carbon pricing programs, one aimed at eliminating the carbon impact of employee business air travel and another at building carbon impact into carrier selection for third party logistics in North America, will help further reinforce climate considerations in PepsiCo's business decisions.
More and more PepsiCo brands are manufactured using electricity from a mix of renewable energy sources. In 2020, PepsiCo met its target to source 100% renewable electricity in the U.S. and set a new target to source 100% renewable electricity across all of its company-owned and controlled operations globally by 2030, and across its entire franchise and third-party operations by 2040.
PepsiCo is also expected to achieve 100% renewable electricity in Mexico and Australia in 2021, which will address approximately 60% of its direct global electricity needs through renewable sources. The company continues to support the growth of new renewable energy generation capacity through power purchase agreements. It has finalized two new wind projects in Texas and Nebraska that will address nearly a quarter of PepsiCo's total U.S. electricity needs.