As the deadline for many corporate sustainability commitments approaches in 2025, companies are facing the need to revisit and adjust their goals. While some companies make these changes quietly, PepsiCo has taken a more transparent approach by publicly discussing the reasons behind its recent revamp of sustainability targets in packaging, emissions, and other areas. Chief Sustainability Officer Jim Andrew has shed light on the decision-making process that led to the company’s decision to sunset certain goals.
Contrary to what some critics may believe, these changes do not indicate a decrease in PepsiCo’s commitment to sustainability. Instead, the company is evolving its strategy to adapt to the changing times, as explained by Andrew. Since the launch of the PepsiCo Positive (pep+) sustainability program in 2021, the company has gained valuable insights and observed significant changes in the world, prompting a reevaluation of its goals.
Andrew outlined three key principles underlying Pepsi’s sustainability goals revamp: transparency, pragmatism, and a focus on areas where the company can make the most impact. He emphasized the importance of staying grounded in scientific facts and incorporating learnings from both internal and external sources to drive sustainable growth.
However, the shift in sustainability goals has not been without its challenges. Environmental and advocacy groups such as Oceana and As You Sow have expressed disappointment with what they perceive as Pepsi’s retreat from environmental commitments, such as phasing out reusable packaging and reducing virgin plastic use by 20%. Despite the criticism, Andrew reiterated Pepsi’s commitment to transparency and engagement while acknowledging the complexities involved in achieving sustainability goals.
In a discussion with Packaging Dive, Andrew delved into the factors that influenced PepsiCo’s goal-setting process and shared valuable insights gained along the way.
PACKAGING DIVE: PepsiCo recently reset its sustainability goals to align with the 1.5 degrees Celsius trajectory. Can you elaborate on the decision-making process behind this change?
JIM ANDREW: Our climate goals are now fully aligned with the 1.5 degrees Celsius trajectory, which was not the case previously. We have made significant progress in reducing scope 1 and 2 emissions since our baseline year in 2015. However, progress on scope 3 emissions, particularly in FLAG (forest, land, and agriculture emissions) and E&I (energy and industry emissions), has been slower due to the systemic changes required across our global operations.
Aligning our goals with the 1.5 degrees Celsius trajectory is crucial for ensuring that we contribute to the goals outlined in the Paris Agreement. Achieving net zero emissions by 2050 remains a key priority for us, and we are working towards this ambitious target by addressing challenges at both the company and industry levels.
External factors, such as regulatory constraints in countries like India and China regarding the use of recycled PET in food-grade packaging, have also influenced our strategy. The stringent requirements for food contact packaging pose additional challenges, and the varying regulations at the state, municipal, and international levels add complexity to our sustainability efforts.
For example, recent changes in India’s laws allowing the use of rPET in beverage and food packaging have opened up new opportunities for us. However, challenges persist in regions like China, where restrictions on rPET usage in food-grade packaging remain in place. Navigating these diverse regulatory landscapes requires a pragmatic and adaptive approach to achieve our sustainability goals.
Ultimately, we are committed to driving positive change while remaining responsive to external forces and evolving our strategies to overcome challenges in the pursuit of a more sustainable future.
In today’s world, the conversation around sustainability and environmental impact is more prevalent than ever before. Companies, NGOs, governments, and consumers are all taking a closer look at how their actions affect the planet and what steps can be taken to mitigate any negative consequences. One company that has been at the forefront of these discussions is PepsiCo, a global leader in the food and beverage industry.
When it comes to sustainability, PepsiCo has set ambitious goals to reduce its environmental footprint and promote more sustainable practices. One of the key areas of focus for the company is packaging. With brands like Lay’s chips and a wide range of beverage products, PepsiCo has a significant impact on the amount of packaging waste generated each year.
One of the challenges PepsiCo has faced is in setting clear and measurable goals for packaging reuse. While the company initially set quantitative targets for reuse, they quickly realized that measuring progress in this area was more complex than anticipated. With multiple regulatory frameworks and competing definitions of reuse, tracking progress towards specific goals became difficult.
As a result, PepsiCo made the decision to sunset its quantitative reuse goal and instead focus on a broader goal of promoting packaging that is reusable, compostable, or recyclable (RCR). This more holistic approach allows PepsiCo to track progress in a more meaningful way and align with broader sustainability objectives.
In addition to packaging, PepsiCo has also made significant strides in promoting regenerative agriculture practices. By working with farmers around the world to adopt sustainable farming techniques, the company aims to improve soil health, conserve water, and protect biodiversity. These efforts align with PepsiCo’s overall sustainability goals and help the company build a stronger, more resilient business for the future.
When it comes to shaping their sustainability strategy, PepsiCo takes into account a wide range of influences, including policymakers, consumers, and even competitors. By staying informed of industry trends and best practices, PepsiCo can ensure that its sustainability efforts remain at the forefront of innovation and progress.
Ultimately, PepsiCo’s commitment to sustainability extends across all aspects of its business, from packaging to agriculture. By setting ambitious goals, collaborating with stakeholders, and staying adaptable in the face of challenges, PepsiCo is leading the way towards a more sustainable future for the food and beverage industry. In the realm of sustainability, the utilization of recycled materials and recycling systems is crucial for reducing environmental impact. Despite the challenges in many regions with limited policies and infrastructure, progress has been made in increasing the use of recycled content in our North American operations since 2020.
A significant portion of our products are packaged in flexible film, presenting a complex system that requires a comprehensive overhaul from collection to material processing. This comprehensive transformation involves collaboration among industry stakeholders, NGOs, and material suppliers to develop solutions that ensure food safety, freshness, and quality. Unlike the well-established recycling systems for bottles and cans, the ecosystem for flexible film packaging is still in its early stages of development. Nevertheless, we are dedicated to improving both systems through extensive research and investment.
By prioritizing sustainability and innovation, we aim to enhance the efficiency and effectiveness of recycling processes while reducing our environmental footprint. Our commitment to advancing these initiatives underscores our dedication to fostering a more sustainable future for generations to come.