PepsiCo has pledged it will “achieve net-zero emissions” by 2040, with the company underlining the commitment covers all three scopes of emissions faced by business.
The Quaker cereal and Lay’s snacks owner has also laid down a target to cut “absolute greenhouse gas (GHG) emissions across its value chain” by more than 40% by 2030.
A previous goal set out by the US giant was to lower the absolute GHG emissions across its value chain by 20% by the same year.
PepsiCo said it will “accelerate efforts across priority areas” including agriculture, packaging, distribution and operations.
“The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it,” PepsiCo chairman and CEO Ramon Laguarta said. “Our ambitious climate goal will guide us on the steep but critical path forward – there is simply no other option but immediate and aggressive action.”
PepsiCo plans to reduce the absolute GHG emissions across its direct operations (so-called scope 1 and 2 emissions) by 75% by 2030, against a 2015 baseline. By the same year, the company wants to cut Scope 3 emissions – which includes all other indirect emissions that occur in a company's value chain – by 40%.
The company plans to increase its efforts in the areas of "sustainable agriculture and regenerative practices". In Europe, for example, PepsiCo will roll out technology to produce a low-emission fertiliser, made from potato waste at its Walkers and Lay's factories.
By the end of this year, the group wants its operations in 15 countries to be using renewable electricity only.