PepsiCo adopts science-based GHG reduction goal - Smart Energy Decisions

Commercial, GHG Emissions, Industrial, Sourcing Renewables  -  May 22, 2017 - By Amy Poszywak

PepsiCo adopts science-based GHG reduction goal

PepsiCo has joined a growing list of U.S. corporations that are linking their greenhouse gas emissions reduction targets with climate science. 

The food, snack and beverage giant said May 22 that its GHG emission reduction targets have been verified and approved by the Science Based Targets initiative as being in line with what climate science says is necessary to keep global warming below two degrees Celsius. PepsiCo is one of just 10 Fortune 500 companies that have had their goals verified by the group, though 12 more have committed to doing so within the next two years, according to a recent report

PepsiCo will work to reduce absolute GHG emissions across its value chain by at least 20% by 2030, according to a news release.

Under its "Performance with Purpose" vision, PepsiCo says it has already had significant success in limiting its GHG emissions. Between 2006 and 2015, the company achieved an 18% improvement in the energy efficiency of its legacy operations, according to a May 12 news release. It also extended its use of renewable energy and introduced fuel-efficient vehicles, as well as vending machines and coolers free of hydrofluorocarbons.

Set in 2016 as part its broader "2025 Agenda," PepsiCo's new climate goal takes into account the company's direct operations, owned-fleet fuel use and purchased electricity, which account for approximately 7% of the company's total carbon footprint. The goal also includes the 93% of PepsiCo's carbon footprint that emanates from sources outside PepsiCo direct operations, such as farming, packaging, third-party transportation and consumer use of its products, according to the release.

A total of 44 companies worldwide have had their climate targets validated by the Science Based Targets initiative, which is partnership between CDP, the World Resources Institute, the World Wide Fund for Nature and the UN Global Compact, with more than 200 more companies awaiting validation. 

"The Paris Climate Agreement that entered into force in April 2016 set out the obligation for collective action to limit the impact of climate change," said Dr. Mehmood Khan, PepsiCo vice chairman and chief scientific officer, global research and development. "We believe combating climate change is critical to the future of our company, our customers, consumers and our world. Our new target represents a meaningful and measurable contribution to meeting the two-degree global goal. Such rigor is now a requirement of any responsible business."

PepsiCo said in its May 12 announcement that it will work to reduce its GHG emissions by:

  • Increasing energy efficiency and transitioning to renewables in its manufacturing operations where feasible;
  • Working with suppliers to reduce their GHG impacts;
  • Exploring less GHG-intensive packaging materials; and
    Helping direct farmers in an effort reduce GHG emissions in the field through global programs such as the PepsiCo Sustainable Farming Initiative.

Additionally, PepsiCo had previously joined the Business Renewables Center at the Rocky Mountain Institute and signed on to the Renewable Energy Buyers Principles, which were developed by leading NGOs and set out the future purchasing expectations of large companies regarding renewable energy in the United States. 

Keywords: PepsiCo

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