PepsiCo has announced a comprehensive reset of its sustainability targets, pushing back its net-zero emissions goal by 10 years while expanding regenerative agriculture commitments and refocusing packaging initiatives on key markets. The revisions to the company’s pep+ (PepsiCo Positive) strategy come nearly four years after its initial launch and reflect what the company describes as learnings from progress to date and external market realities.
The most significant change involves the company’s climate timeline, with PepsiCo now targeting net-zero emissions by 2050 instead of its previous 2040 goal. The company has updated its Scope 1, 2, and 3 targets to align with a 1.5°C trajectory, following Science Based Target Initiative (SBTi) sectoral guidance on Forests, Land, and Agriculture (FLAG) and Energy and Industry (E&I) emissions.
“As circumstances evolve, PepsiCo continually adapts how we source ingredients; make, move, and sell our products; and inspire people through our brands,” said PepsiCo Chairman and Chief Executive Officer Ramon Laguarta. “Our goals must evolve with us to keep our ambition and to deliver on our long-term vision.”
Regenerative agriculture target expanded significantly
In contrast to the climate goal extension, PepsiCo has increased its regenerative agriculture ambitions, expanding from 7 million acres to 10 million acres by 2030. The company reports it has already delivered approximately 3.5 million acres against this newly released goal as of 2024.
The expanded agriculture target includes specific objectives for nature and aims to promote healthier soil, reduce agricultural emissions, enhance biodiversity and watershed health, and improve living standards for farmers and farming communities.
PepsiCo packaging goals refocused amid infrastructure challenges
PepsiCo has reset its packaging strategy to concentrate on key markets where it believes efforts can achieve the most positive impact. The company is sunsetting its reuse target while continuing to work on designing packaging to be reusable, recyclable or compostable.
The packaging goal revisions acknowledge external infrastructure limitations that have constrained progress. PepsiCo noted that India only passed laws allowing recycled PET (rPET) for beverage packaging in 2023, with food packaging added this year, while China does not allow rPET inclusion in food-grade packaging.
“We know it’s important that we continue to be transparent about our progress – both our successes and the challenges – and the dynamic realities that our company and the broader industry face today,” said Jim Andrew, PepsiCo Executive Vice President and Chief Sustainability Officer.
Water goals maintained with refined focus
After meeting its goal of 25% improvement in operational water-use efficiency in high-risk watersheds and exceeding its 15% improvement target in agricultural water-use efficiency two years early, PepsiCo has refreshed its water strategy. The company maintains its goal to become net water positive by 2030 while refining its focus on high-risk areas.
Strategic recalibration reflects market realities
The goal revisions reflect what PepsiCo characterizes as external factors and systemic barriers that have limited progress, including lagging recycling infrastructure, electric grid modernization delays, electric vehicle charging infrastructure limitations, and varying government policy approaches.
PepsiCo emphasized that the revised targets remain ambitious and account for business growth while positioning the company for long-term sustainable development. The company’s Positive Choices goals, which target reductions in saturated fat, sugar, and sodium content while delivering more diverse ingredients, remain unchanged.
The revised sustainability framework comes as food and beverage companies face increasing pressure from investors, regulators, and consumers to demonstrate measurable progress on environmental commitments. PepsiCo’s decision to extend its net-zero timeline while expanding other targets reflects the complex balance companies must strike between ambitious sustainability goals and operational realities.
The company stated it will continue to provide transparent reporting on progress in its 2024 ESG Summary, scheduled for release later this year, maintaining its commitment to detailed performance tracking across all sustainability initiatives.
For more information on the goal changes, click here.
