PepsiCo has announced plans to more than double its science-based climate goal, targeting a reduction of absolute greenhouse gas (GHG) emissions across its value chain by more than 40% by 2030. In addition, the company has pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement.
Specifically, PepsiCo plans to reduce absolute GHG emissions across its direct operations (Scope 1 and 2) by 75% and its indirect value chain (Scope 3) by 40% by 2030 (2015 baseline). This action is expected to result in the reduction of more than 26 million metric tons of GHG emissions.
PepsiCo's sustainability strategy, informed by science-based measures and cost-benefit analysis, focuses on the areas where it can have the most impact, while creating scalable models and partnerships for accelerated progress across the full value chain. The company's emissions target aligns to the Business Ambition for 1.5°C pledge and has been approved by the Science Based Targets initiative as the most ambitious designation available through their process.
PepsiCo's action plan is centered around both mitigation, reducing GHG emissions to decarbonize its operations and supply chain, and resilience, reducing vulnerabilities to the impacts of climate change by continuing to incorporate climate risk into business continuity plans.
In 2020, PepsiCo met its target to source 100% renewable electricity in the US and set a new target to source 100% renewable electricity across all of its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040.
PepsiCo is also expected to achieve 100% renewable electricity in Mexico and Australia in 2021, which will bring the total number ofcountries fully sourcing renewable energy in PepsiCo's direct operations to 15 and address approximately 60% of its direct global electricity needs through renewable sources. Twelve countries in PepsiCo's Europe sector already source 100% renewable electricity.