Carbon Management behind the Ambitious Pledge of Net Zero Carbon Emission—A Case Study of PepsiCo

Abstract

Since the industrial revolution, greenhouse gas emissions caused by human activities have posed an unprecedented global challenge to social development and impact on the natural environment. With the growing awareness of environmental protection and the promotion of international cooperation mechanisms, there is a global consensus to control greenhouse gases. In order to avoid irreversible and catastrophic climate change, there is an urgent need for more companies to take action and make credible commitments to combat climate change and carbon reduction goals aligned with the Paris Agreement and the UN Sustainable Development Goals. As one of the largest and most influential international food and beverage companies with a range of well-known brands, PepsiCo has made ambitious commitments to science-based climate goals, including reducing GHG emissions from its direct operations by 75% against the 2015 baseline and reducing GHG emissions across its indirect value chain by 40% by 2030, as well as setting an ambitious new target to achieve net-zero emissions by 2040. PepsiCo has incorporated carbon reduction and climate strategies in all focus areas across its value chain, accelerating its work on broadening the scale of sustainable agriculture and regenerative farming practice; reducing plastic use and increasing the use of recycle and renewable materials as well as adopting low-carbon alternatives; developing efficient and alternative solutions in transportation and distribution; shifting to renewable electricity and fuels in manufacturing and fleet. Up to 2021, PepsiCo has achieved a 23% of the absolute emissions target of reducing Scope 1 and Scope 2 emissions and 7.9% of the absolute emissions target of reducing Scope 3 emissions. This research aims to evaluate the performance of PepsiCo on achieving their carbon reduction targets based on the analysis of the reported carbon estimates and reduction strategies, and also provides future strategic suggestions and guidance by adopting case study analysis. Although PepsiCo has reported great progress in reducing carbon emissions, further efforts are needed to achieve these goals.