PepsiCo unveiled an ambitious global sustainability agenda, which includes specific 2025 goals to continue transforming the company’s food and beverage product portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.
These new initiatives continue PepsiCo’s decade-long commitment to delivering Performance with Purpose, a pioneering vision launched in 2006 rooted in the fundamental belief that business success is inextricably linked to the sustainability of the world.
Across its business and in partnership with others, PepsiCo is taking a holistic approach to achieving progress in three areas: helping to improve the health and well-being of consumers through its products; protecting the planet, and empowering people around the world.
The Chairman and CEO of PepsiCo, Indra Nooyi believed, “To succeed in today’s volatile and changing world, corporations must do three things exceedingly well: focus on delivering strong financial performance, do it in a way that is sustainable over time and is responsive to the needs of society.”
She added, “The first ten years of PepsiCo’s Performance with Purpose journey have demonstrated what is possible when a company does well by also doing well. We have created significant shareholder value while taking important steps to address environmental, health and social priorities all around the world.”
“PepsiCo’s journey is far from complete, and our new goals are designed to build on our progress and broaden our efforts,” Nooyi continued. “We have mapped our plans against the United Nations Sustainable Development Goals, and we believe the steps we are taking will help lift PepsiCo to even greater heights in the years ahead. Companies like PepsiCo have a tremendous opportunity as well as a responsibility to not only makes a profit but to do so in a way that makes a difference in the world.”
The company’s plans have been informed by current scientific research, consumer expectations and dialogue with the major stakeholders, as well as by the United Nations’ 2030 Agenda for Sustainable Development.
PepsiCo’s ambition is to enable better nutrition at scale by continuing to develop a broader portfolio of food and beverage choices and increasing access to great-tasting, nutritious options.
Informed by the latest dietary guidelines of the World Health Organization and other authorities, the company will continue to refine its food and beverage choices to meet changing consumer needs by reducing added sugars, saturated fat and sodium levels in its product portfolio.
The company sets following new goals for 2025:
- At least two-thirds of its global beverage portfolio volume will have 100 calories or fewer from added sugars per 12-oz serving.
- At least three-quarters of its global foods portfolio volume will not exceed 1.1 grams of saturated fat per 100 calories.
- At least three-quarters of its global foods portfolio volume will not exceed 1.3 milligrams of sodium per calorie.
- The rate of sales growth of what the company refers to as Everyday Nutrition products will outpace the rate of sales growth in the balance of PepsiCo’s portfolio. Everyday Nutrition products include those that deliver whole grains, fruits and vegetables, dairy, protein and hydration.
- It will provide access to at least three billion servings of nutritious foods and beverages to under-served communities and consumers.
The company also reaffirms its commitment to deliver on its Global Labelling and Responsible Advertising to Children Policies. PepsiCo has and will continue to support industry actions in these areas.
The second area where initiatives have been taken is related to our Planet. PepsiCo’s ambition is to reduce the environmental footprint of the food system through operational efficiencies and mobilisation of its suppliers and business partners.
As part of its focus on protecting the planet, PepsiCo will work to achieve positive water impact; significantly lower its carbon emissions, with significant efforts to reduce emissions related to agriculture and packaging; promote sustainable sourcing of crops; and reduce waste.
Specifically, PepsiCo plans to:
- Improve the water-use efficiency of its direct agricultural supply chain by 15% in high-water-risk sourcing areas by 2025. These savings equate to the same approximate volume of water used in PepsiCo manufacturing operations
- Improve the water use efficiency of its direct manufacturing operations by 25% by 2025. This is in addition to the 25% improvement in water-use efficiency the company has achieved since 2006 and will include a focus on high-water-risk areas.
- Work to provide access to safe water to a total of 25 million people in the world’s highest water-risk areas by 2025, a continuation of efforts that began in 2006.
- Reduce absolute greenhouse gas emissions across the company’s value chain by at least 20% by 2030, with a focus on collaborating with suppliers, business partners and customers to reduce emissions related to agriculture, packaging and transportation.
- Achieve zero waste to landfill across its direct operations by 2025 and reduce the food waste it generates in its direct operations by 50% by 2025.
- Design 100% of its packaging to be recoverable or recyclable by 2025, while partnering to increase packaging recovery and recycling rates.
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On the people end the company said that PepsiCo’s ambition is to empower people and social development across its operations, supply chain and communities.
Building on its support for the United Nations Guiding Principles on Business and Human rights, PepsiCo is significantly broadening its focus on respecting human rights across the company’s supply chain.
Precisely, PepsiCo plans to:
- Expand Sustainable Farming Initiative (SFI) to approximately 7 million acres by 2025, covering crops that collectively comprise approximately three-quarters of its agricultural-based spend. PepsiCo’s SFI is focused on promoting environmentally responsible agricultural practices, improving crop yields and growers’ livelihoods, and respecting human rights.
- Extend the principles of the company’s Supplier Code of Conduct to all franchisees and joint venture partners. These principles already apply to PepsiCo’s direct suppliers.
- Invest $100 million in partnership with the PepsiCo Foundation to support initiatives to benefit 12.5 million women and girls around the world by 2025.