PepsiCo has published its 2020 Sustainability Report, outlining how it has advanced its social and sustainability agenda across its supply chain during a tumultuous year.
“We are working to transform the way we create shared value by operating within planetary boundaries and inspiring positive change for the planet and people,” PepsiCo chairman and CEO Ramon Laguarta said.
“This will make us a better company, with purpose more deeply integrated into our business strategy. It will also make us faster and stronger, enabling accelerated growth and continued investment in our people, business and communities. And we hope it will make us an example, for our partners and our peers.”
PepsiCo’s sustainability approach targets every stage of its value chain in several key focus areas, including:
- Rethinking the growth and sourcing of crops, with highlights including:
- Sustainably sourcing 100 per cent of its direct commodities in 28 countries, with nearly 87 per cent of direct commodities sustainably sourced globally as of 2020.
- Announcing a new Positive Agriculture ambition aiming to spread regenerative practices across 7 million acres, improve the livelihoods of over 250,000 people in its agricultural supply chain and sustainably source 100 per cent of its key ingredients, including key crops from third parties, by 2030.
- Doing business in a sustainable and inclusive way, with highlights including:
- Reducing absolute GHG emissions across our value chain by 5 per cent as of 2020, versus a 2015 baseline.
- Improving operational water-use efficiency by 15 per cent in high water-risk areas as of 2020, versus a 2015 baseline.
- Continuing to reduce packaging becoming waste, offering products made from 100 per cent rPET in 22 markets worldwide.
- Working with The PepsiCo Foundation to invest more than $71 million globally in COVID-19 relief and provide over 145 million meals to those impacted by the pandemic.
- Transitioning to 100 per cent renewable electricity globally, after achieving 100 per cent renewable electricity for its US direct operations in 2020. By the end of 2021, 15 countries in PepsiCo’s direct operations are expected to be fully sourcing renewable electricity.
- Focusing on its climate goal by reducing absolute greenhouse gas emissions across its value chain by more than 40 per cent by 2030, pledging to reach net-zero emissions across its global operations by 2040.
- Advancing its $570+ million Racial Equality Journey to elevate diverse voices among supply chain partners and communities, helping to break down longstanding racial barriers.
- Encouraging consumers’ positive choices for themselves and the planet, with highlights including:
- Building on progress in reducing added sugars, sodium and saturated fats across its portfolio. As of 2020:
- 48 per cent of the PepsiCo beverage portfolio has 100 calories or less from added sugars per 12oz serving, an improvement of 8 percentage points over the past three years (goal is 67 per cent by 2025).
- 64 per cent of PepsiCo’s foods portfolio contains 1.3mg or less of sodium per calorie, an improvement of 8 percentage points over the past three years (goal is 75 per cent by 2025).
- 71 per cent of PepsiCo’s foods portfolio contains 1.1g or less of saturated fat per 100 calories, an improvement of 10 percentage points over the past three years (goal is 75 per cent by 2025).
- Embracing platforms like SodaStream and SodaStream Professional that offer convenient, sustainable options, without single-use packaging.
- Expanding its portfolio to meet evolving consumer preferences, with options like Off The Eaten Path, bare, Hilo Life, Driftwell and bubly.
“2020 was a year of challenges and a year of change,” PepsiCo chief sustainability officer Jim Andrew said.
“The challenges created by the COVID-19 pandemic impacted every corner of the globe and highlighted the urgent need to partner and drive change toward a more sustainable and resilient food system.
“I’m proud that PepsiCo rose to the challenge in 2020, and there’s no slowing down PepsiCo’s ambition to drive a positive impact on our planet and the communities we serve.”
To view the PepsiCo 2020 Sustainability Report, click here.