PepsiCo, one of the largest food and beverage companies in the world, operates across the globe. Its brands and products include Pepsi, Lay’s, Quaker Oats, Doritos, and more, generating net sales of billions of dollars. In 2007, PepsiCo’s global net revenue reached $39.47 billion, which grew to nearly $92 billion in 2023. As a member of the S&P 500, PepsiCo owns over 100 brands, and consumers from more than 200 countries and regions use its products more than a billion times a day.
As a multinational corporation, PepsiCo’s influence extends beyond products and markets to its environmental and social impact. As a member of RE100 (the international renewable energy initiative), PepsiCo plans to achieve 100% renewable energy use by 2030. Jim Andrew, PepsiCo’s Executive Vice President and a key figure in the company’s sustainability strategy, is leading the company toward global sustainability goals. Under his leadership, PepsiCo launched the “PepsiCo Positive (pep+)” transformation strategy:
“‘pep+’ is not just a sustainability strategy; it is actually a strategic business transformation. Through ‘pep+’, we aim to not only enhance our environmental impact but also reshape how we interact with consumers, partners, and society at large. This is a comprehensive plan, from reducing our carbon footprint and promoting sustainable agriculture to designing healthier products. We are committed to creating a future that benefits both the planet and humanity.”
Collaborating with 2,000 Suppliers to Reduce Carbon Emissions and Achieve Systemic Reform
PepsiCo faces significant challenges in reducing Scope 3 emissions, which account for approximately 94% of the company’s total greenhouse gas emissions. These emissions span across various sectors such as transportation, packaging, and agriculture, and involve complex and diverse supply chain activities. To tackle this challenge, PepsiCo began collaborating with approximately 2,000 suppliers starting in 2021 to drive carbon reduction efforts and pursue systemic reform.
“Reducing Scope 3 emissions is no easy task. Our goal is to ensure that every part of our supply chain transforms towards sustainability,” says PepsiCo. The company set clear requirements for its suppliers and partners, including the establishment of science-based targets (SBT), the development of detailed decarbonization plans, and the regular reporting of annual progress.
These measures go beyond simple data sharing—they represent a deep structural transformation within the supply chain. Suppliers’ Scope 1 and Scope 2 emissions data directly impact PepsiCo’s Scope 3 emissions, so suppliers must provide accurate emissions data that complies with international standards. “We not only require our suppliers to reduce emissions but also aim to help them improve data transparency and management capabilities through collaboration.”
To further support its partners’ decarbonization efforts, PepsiCo has designed tailored support programs for different types of suppliers, offering technical guidance, financial assistance, and tools for carbon reduction. “We know that the process of reducing emissions is long and difficult, but it is a commitment we must make, as we want to set an example for global businesses and showcase a true path to sustainable development.”
This strategy not only enhances the effectiveness of PepsiCo’s carbon emission control but also deepens the company’s collaboration with its suppliers, creating a value chain ecosystem centered around sustainability goals. As these partnerships evolve, PepsiCo is moving towards a more environmentally friendly future, offering a practical example for global companies to achieve carbon neutrality.
The Regenerative Agriculture Revolution: Supporting the Future of Food Companies
As a key strategy to address climate change and agricultural sustainability challenges, regenerative agriculture has become a core component of PepsiCo’s sustainability efforts. Jim Andrew notes that PepsiCo has set clear requirements for agricultural suppliers, demanding that they not only explain the regenerative agriculture practices currently being implemented but also demonstrate how these practices contribute to environmental restoration and long-term ecological balance. “Last year, our regenerative agriculture footprint increased by 100%, reaching 1.8 million acres globally,” he said. This achievement marks a significant step forward in PepsiCo’s efforts to reduce carbon emissions, improve soil health, and enhance the stability of agricultural ecosystems.
Regenerative agriculture is not merely an environmental measure; it is essential to ensure the stability and sustainability of the entire agricultural supply chain. It also addresses several challenges facing the global food system today, such as land degradation, the threat of climate change to crop yields, and the instability of farmers’ livelihoods. According to PepsiCo’s official data, more than 90% of the agricultural products it sources come from growers who meet sustainable procurement standards, which are based on PepsiCo’s Sustainable Farming Program (SFP) and include independent verification of environmental, social, and economic principles.
In practice, PepsiCo actively invests in innovative technologies to help farmers better adapt to climate change. “We developed an internet-based tool in Thailand and Vietnam that combines crop research with climate forecasting models. This technology provides farmers with precise planting recommendations, helping them increase crop yields even under extreme weather conditions.” These technologies not only improve agricultural productivity but also bring significant economic benefits to local farmers. According to PepsiCo’s statistics, the income of farmers participating in the program has increased by 32% over the past two years, significantly improving their living standards and resilience to risks.
Jim Andrew is satisfied with these results, stating that this is exactly the outcome PepsiCo aims to achieve. “The implementation of regenerative agriculture is not only about protecting the environment but also about building a sustainable food production system to ensure that billions of people in the future will have access to stable food supplies.” The success of regenerative agriculture demonstrates that environmental protection and economic development are not mutually exclusive but can be achieved through systemic innovation that benefits both.
In addition to technological innovation and sustainable procurement, PepsiCo has also made regenerative agriculture a core issue in its collaborations with global stakeholders. Through partnerships with local governments, non-governmental organizations, and agricultural research institutions, PepsiCo is building a regenerative agriculture ecosystem that covers the entire production, distribution, and sales process, ensuring the resilience and reliability of the future food supply chain.
Reflection on the Environment: Visionary and Diverse Investments
PepsiCo, through its comprehensive sustainability strategy, demonstrates its leadership in global environmental issues, particularly in the sustainable development of its Lay’s potato chip business. This reflects the company’s long-term vision and diversified investments. “Our goal is to collaborate with multiple stakeholders to drive systemic transformation, which requires full support from governments, NGOs, and industry partners,” said Jim Andrew, emphasizing that this is not just a corporate initiative, but a collective effort to address global environmental challenges.
To achieve its sustainability goals, PepsiCo has launched several concrete measures. First, the company focuses on innovation in agriculture to help farmers improve their resilience to climate change. For example, PepsiCo uses advanced agricultural technologies and data tools to assist farmers in optimizing crop management, including the use of precision irrigation systems to reduce water waste, and the adoption of regenerative agriculture techniques that protect soil health while increasing carbon sequestration capacity. These actions not only enable farmers to more effectively respond to extreme climate challenges but also increase crop yields and quality, creating a win-win situation for both the environment and the economy.
In the transportation sector, PepsiCo has increased its investment in low-emission and zero-emission vehicles, becoming one of the leaders in green logistics. The company was one of the earliest customers of Tesla’s Semi electric trucks and is also testing biofuel vehicles to achieve significant reductions in carbon emissions in logistics and transportation. In addition, PepsiCo collaborates with transportation partners to develop charging infrastructure to ensure the operational efficiency of electric vehicles, while exploring ways to further green its logistics network.
In terms of factory operations, PepsiCo has shown its innovative capabilities in resource management through significant investments in water reuse technologies. “Our factories operate for hundreds of days without relying on municipal water supply because we’ve optimized our internal water recycling systems,” said the company. This includes technologies like rainwater collection, wastewater treatment and reuse, and efficient water-saving equipment, ensuring minimal reliance on natural water resources during production processes.
In packaging, PepsiCo is actively developing packaging materials that align with the principles of a circular economy. These materials are not only fully recyclable but also compostable, aimed at reducing the environmental impact of packaging waste. “We are committed to ensuring that every step of the process, from design to recycling, minimizes the environmental impact of our packaging,” said the company. This systematic approach not only aligns with PepsiCo’s internal sustainability goals but also meets the global consumer demand for green products.
Through these multi-faceted efforts, PepsiCo has implemented environmentally friendly innovations in agriculture, transportation, manufacturing, and packaging. These initiatives reflect the company’s profound reflection on global environmental challenges and its visionary, diversified investment strategy, providing valuable experience and a model for global enterprises on the path to sustainable development.
Jim Andrew: Not Satisfied with the Status Quo, Boldly Challenging Established Systems
Facing the challenges ahead, Jim Andrew states, “This requires systemic change.” This means that the path to sustainability is not solely reliant on technological innovations or isolated measures, but requires a complete overhaul of the entire operating model. For instance, even if PepsiCo buys all the electric trucks it needs, without a comprehensive charging infrastructure, it will not realize its full potential. Therefore, true transformation needs to cover a full range of systemic reforms, from logistics infrastructure to energy supply.
Under Jim Andrew’s leadership, PepsiCo is turning its grand vision for sustainability into a series of concrete and impactful actions. These actions span across various areas, including supply chain management, agricultural practices, manufacturing operations, and packaging design. For example, the company is not only investing in carbon-reduction technologies but is also promoting regenerative agriculture, establishing circular economy models, and fostering close collaboration with global partners to achieve significant reductions in Scope 3 emissions. These efforts are not only accelerating PepsiCo’s own sustainable transformation but are also setting an industry benchmark.
As global environmental and social challenges continue to intensify, PepsiCo proves through its actions that large multinational companies can play a leadership role in sustainability, sparking collective industry action, and making a profound contribution to the future of humanity and the planet:
“The future belongs to those who are willing to take action. Our goal is to make PepsiCo a catalyst for change, creating a more sustainable world through our products, strategies, and collaborations. This is not only a commitment to PepsiCo but also to society and future generations.”
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