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PepsiCo: The journey of building a circular and inclusive value chain

In 2021, PepsiCo officially launched its holistic business strategy transformation with sustainability at its core—the "Pep+ Plan." This initiative encompasses more sustainable sourcing of raw materials, manufacturing, and product sales, with the aim of inspiring consumers through iconic brands to contribute to green development.

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PepsiCo is one of the first multinational companies to enter China, with a presence in the country for over 40 years. The products of PepsiCo are widely loved by billions of Chinese consumers. Key brands operated in the Greater China region include Pepsi-Cola, Mirinda, 7UP, Tropicana, Gatorade, Aquafina, Lay's, Quaker, Doritos, Cheetos, and Nut Harvest, among others.

Business Pain Points

  • Positive Agriculture: PepsiCo's goal is to achieve 100% sustainable sourcing of key crops and raw materials by 2030. This includes not only directly sourced crops like potatoes and oats but also third-party key crops such as plant oils and grains.

  • Positive Value Chain: PepsiCo announced its goal to achieve net-zero emissions across the entire value chain by 2040, a decade ahead of the timeline set by the Paris Agreement. By 2030, PepsiCo plans to reduce its greenhouse gas emissions, based on a 2015 baseline, by 75% for Scope 1 and 2 and 40% for Scope 3, doubling the previous targets.

  • Positive Products: PepsiCo aims to promote the Pep+ Plan through its brands and actions, including initiatives like promoting circularity in product packaging. In April 2022, PepsiCo launched its first bottle-label-free product in China, delivering a low-carbon message of "No Label, Shared Environmental Protection" for the brand.

Integrated Solution

PepsiCo is committed to establishing a circular and inclusive value chain to accelerate the systemic changes needed to address significant global environmental challenges. With the assistance of CarbonNewture, PepsiCo is taking proactive measures to reduce the climate-related impacts throughout the upstream and downstream supply chain. Focused on addressing climate challenges, PepsiCo aims to achieve net-zero emissions by 2040. As of 2021, emissions for Scope 1 and Scope 2 have already seen a 25% reduction from the 2015 baseline. Furthermore, renewable resources in PepsiCo's global direct operations now meet over 70% of the electricity demand.

CarbonNewture is driving progress in PepsiCo's carbon reduction efforts across Scope 1, 2, and 3 emissions by providing a digital solution for carbon emissions. This solution supports PepsiCo in achieving its mid-term goals, including reducing absolute greenhouse gas emissions across the entire value chain by over 40% before 2030. This reduction includes a 75% decrease in emissions from PepsiCo's direct operations. CarbonNewture also aids PepsiCo in purchasing and retiring renewable certificates, contributing to the overall solution and advancing PepsiCo toward its established targets.

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