PepsiCo’s Sustainability Goals: Decarbonising for the Future

At Sustainability LIVE: Climate Week NYC, Jim Andrew outlined PepsiCo’s approach to tackling climate change.

Speaking to moderator Scott Birch, he shared the company’s achievements in cutting carbon emissions and how it is driving change across its global operations.

A central theme of the discussion was the need for systemic collaboration, highlighting how policy, partnerships and innovation are essential for real progress.

Jim pointed to several milestones PepsiCo has achieved. The company has made significant headway in reducing direct emissions (Scope 1 and 2) and is also targeting emissions across its entire value chain (Scope 3).

He explained that addressing climate change requires large-scale coordination not just within PepsiCo but across industries and governments.

Cutting Scope 1 and 2 emissions: Infrastructure and electrification

PepsiCo has reduced its Scope 1 and 2 emissions – those generated by its own operations – by 33% since 2015, including a 13% drop in 2022 alone.

Jim attributed these gains to programmes like ‘Sustainable Operations from the Start,’ which ensures new facilities are built with energy efficiency and renewable energy as priorities.

He cited a US$320m facility in Poland as a prime example. The site uses rooftop solar panels, off-site renewable energy, and electrification to operate sustainably.

“These facilities have 30- to 50-year lifespans,” he said, stressing the need for long-term investments in green infrastructure.

PepsiCo is also making strides in fleet electrification. In 2022, it added 700 electric vehicles (EVs), including Tesla class-eight electric semi-trucks. Yet, Jim acknowledged the systemic obstacles slowing broader EV adoption, such as outdated charging infrastructure.

“The transition to EVs is crucial, but without an updated electric grid and charging infrastructure, progress is limited,” he noted.

Scope 3 emissions: Collaboration with suppliers

Scope 3 emissions, which account for 94% of PepsiCo’s carbon footprint, are the emissions generated across the company’s supply chain. Addressing this challenge involves working closely with suppliers, a process Jim described as central to PepsiCo’s climate strategy.

The company has set clear sustainability benchmarks for its top 2,000 suppliers, requiring them to adopt science-based targets and submit decarbonisation plans. For agricultural suppliers, the focus includes promoting regenerative agriculture, a practice aimed at improving soil health and storing carbon.

Jim explained that collaboration is crucial, saying: “We’re looking for partners who are aligned with our goals.”

Incentives are a key part of PepsiCo’s strategy, as shown by a seven-year partnership with ADM, one of its main agricultural suppliers, to co-invest in sustainability efforts. In Brazil and Mexico, financial incentives provide quicker access to capital for suppliers meeting sustainability benchmarks.

“There’s a perception that sustainability always costs more, but we’ve found that it doesn’t have to,” Jim said, challenging the assumption that green initiatives must come with high costs.

Advocating for systemic change 

Jim stressed the importance of broader, system-wide changes. He described climate change as “the largest change management effort society has ever faced.” Systemic transformation, he explained, requires collaboration across sectors such as agriculture, energy, and transport.

Using EVs as an example, Jim said that, while PepsiCo is ready to embrace electrification, policy gaps and infrastructure shortfalls make it challenging. He called for stronger government policies to address these issues, emphasising that “system change requires policy, technology and incentives.”

PepsiCo’s role in the Clean Energy Buyers Alliance (CEBA) reflects its commitment to systemic action. Through this coalition, the company has worked to expand renewable energy access globally.

For instance, a recent partnership with the Vietnamese government has made renewable energy power purchase agreements (PPAs) available, speeding up adoption in the region. “This is a significant step forward,” Jim remarked.

Embedding sustainability into company culture

PepsiCo also prioritises internal engagement, ensuring its 318,000 employees are part of its sustainability mission.

Programmes like ‘Recon’ encourage employees to suggest localised improvements, while more than 200 ‘green teams’ worldwide actively contribute to sustainability efforts.

Additionally, its Travel Impact Programme discourages unnecessary flights by levying a charge on air travel and reinvesting the funds in agricultural projects. “It’s a small initiative, but it encourages everyone to think about their impact,” Jim said.

Looking ahead

Despite PepsiCo's progress, Jim acknowledged that Scope 3 emissions remain a challenge.

“What keeps me up at night is Scope 3,” he admitted, explaining that continued innovation and partnerships are essential to meeting targets. PepsiCo is exploring collaborations outside its traditional supply chain, including solutions from the pharmaceutical industry and advanced agricultural practices.

Jim emphasised that systemic change requires constant effort and collaboration across industries and governments.

“Systemic change is a journey,” he concluded. Reflecting on PepsiCo’s commitment, he added: “Moving fast and at scale is what we need to drive real change.”

Essential diary dates for 2025…

Discover the essential diary dates for Procurement Magazine and Supply Chain Digital, as well as its sister publications, Manufacturing Digital and Sustainability Magazine.

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2025 diary dates: 

• Sustainability LIVE: Malta | 20 February 
• Sustainability LIVE: Net Zero | 5-6 March 
• Procurement & Supply Chain LIVE: Sustainability | 5-6 March
• Sustainability LIVE Singapore | 18 March 
• Sustainability LIVE Dubai | 22 April 
• Sustainability LIVE Chicago | 4-5 June 
• Sustainability LIVE: London Climate Action Week | 25 June
• Sustainability LIVE London | 9-10 September 
• Sustainability & ESG Awards | 10 September 
• Sustainability LIVE: DE&I | 11 November

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