Climate Change Data

PepsiCo, Inc.

Climate Impact & Sustainability Data (2018)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% in seven European manufacturing operations
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Next Generation Agriculture
  • Positive Water Impact
  • Circular Future for Packaging
  • Improved Choices Across Our Portfolio
  • Climate Change Mitigation
  • People & Prosperity

Environmental Achievements

  • Reduced Scope 3 GHG emissions by approximately 2.2 million metric tonnes (2015 baseline). This represents approximately 7% progress toward our 2030 target to reduce absolute GHG emissions in our value chain.
  • Improved operational water-use efficiency by 5% compared to 2015.
  • 51% of direct farmer-sourced agricultural raw materials sustainably sourced through the Sustainable Farming Program (SFP).

Social Achievements

  • Provided safe water access to over six million people in 2018.
  • 40% of global manager positions held by women.
  • Invested $27.3 million since 2016 to support initiatives benefiting women in communities where we operate.

Governance Achievements

  • Established a Public Policy and Sustainability Committee within the Board of Directors in 2017.
  • Integrated sustainability into business strategy and processes, with senior leadership directly overseeing the sustainability agenda.

Climate Goals & Targets

Long-term Goals:
  • Reduce absolute GHG emissions across PepsiCo’s value chain by 20% by 2030 (2015 baseline).
Medium-term Goals:
  • Improve water-use efficiency by 15% in agricultural supply chain (corn and potatoes) by 2025.
  • Improve operational water-use efficiency by 25% by 2025.
  • Replenish 100% of water consumed in manufacturing operations in high water-risk areas by 2025.
  • Design 100% of packaging to be recyclable, compostable, or biodegradable by 2025.
  • Increase recycled content in plastics packaging to 25% by 2025.
  • Reduce 35% of virgin plastic content across beverage portfolio by 2025.
  • Reduce added sugars: ≥ 67% of beverage portfolio will have ≤100 Calories from added sugars per 12-ounce serving by 2025.
  • Reduce saturated fat: ≥ 75% of foods portfolio will not exceed 1.1 grams of saturated fat per 100 Calories by 2025.
  • Reduce sodium: ≥ 75% of foods portfolio will not exceed 1.3 milligrams of sodium per Calorie by 2025.
Short-term Goals:
  • Achieve 100% sustainably sourced priority raw materials (potato, whole corn, oats, oranges, palm oil, and sugar cane) by 2020.

Environmental Challenges

  • Water scarcity in some regions.
  • Global plastic waste and pollution.
  • Climate change impacts on the food system.
  • Insufficient supply of recycled material.
Mitigation Strategies
  • Replenishing water used in manufacturing in high water-risk areas.
  • Reducing virgin plastic content in beverage brands by 35% by 2025.
  • Reducing absolute GHG emissions across the value chain by 20% by 2030.
  • Investing in and increasing the use of recycled content in packaging.
  • Developing alternative packaging materials.

Supply Chain Management

Supplier Audits: More than 960 on-site audits conducted or recognized with first-tier suppliers in 2018.

Responsible Procurement
  • Sustainable Sourcing Program (SSP) for business-critical first-tier suppliers.
  • Supplier Code of Conduct (SCoC) training for direct third-party suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Water scarcity
  • Soil quality loss
Transition Risks
  • Changes in laws related to plastics or other packaging
  • Changes in applicable laws and regulations
  • Increased taxes on products
  • Labeling or warning requirements
Opportunities
  • Developing climate-friendly agricultural practices
  • Reducing carbon-intensive virgin plastic use
  • Reinventing packaging materials and systems

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

PepsiCo's sustainability priorities are aligned with the UN Sustainable Development Goals.

Sustainable Products & Innovation

  • LIFEWTR (using 100% rPET in the U.S. by 2020)
  • bubly (packaged in aluminum by 2020)
  • Naked juices and smoothies (using 100% rPET bottles in the U.S.)
  • Tropicana (using 50% rPET bottles in Western Europe, aiming for 100% by 2025)

Awards & Recognition

  • Not disclosed