PepsiCo has today confirmed that it intends to lower greenhouse gas (GHG) emissions across its value chain by at least 20 percent by 2030. Between 2006 and 2015, it claims to have achieved an 18 percent improvement in the energy efficiency of its legacy operations. It also extended its use of renewable energy and introduced fuel-efficient vehicles, as well as vending machines and coolers free of hydrofluorocarbons.
The new climate goal takes into account PepsiCo's direct operations, owned-fleet fuel use and purchased electricity, which account for approximately 7% of the company's total carbon footprint. Importantly, however, the goal also includes the 93% of PepsiCo's carbon footprint that emanates from sources outside PepsiCo direct operations, such as farming, packaging, third-party transportation and consumer use of its products. The emission reduction has given a stamp of approval by the Science Based Targets Initiative, a consortium of environmental groups like the World Resources Institute, the World Wide Fund for Nature and the UN Global Compact.
PepsiCo will work to reduce its GHG emissions by:Increasing energy efficiency and transitioning to renewables in its manufacturing operations where feasible; Working with suppliers to reduce their GHG impacts; Exploring less GHG-intensive packaging materials; and Helping direct farmers in an effort reduce GHG emissions in the field through global programs such as the PepsiCo Sustainable Farming Initiative.
"The Paris Climate Agreement that entered into force in April 2016 set out the obligation for collective action to limit the impact of climate change," said Dr. Mehmood Khan, PepsiCo Vice Chairman and Chief Scientific Officer, Global Research and DevelopmentGlobal Research and Development. "We believe combating climate change is critical to the future of our company, our customers, consumers and our world. Our new target represents a meaningful and measurable contribution to meeting the two degree global goal. Such rigor is now a requirement of any responsible business."