Fleet decarbonization

Why it matters

Approach

Strategy

We distribute our products through a complex network of company-owned and third-party fleet operations. Our approach varies by country, with company-owned vehicles representing most of our fleet in North America. We work with transportation providers and vehicle manufacturers to show the viability of a sustainable future that uses zero- and near-zero emission technologies at scale. Key aspects of our strategy include:

• Efficiency: Given the complexity of our fleet operations, optimizing truck, route and scheduling efficiency can significantly impact the emissions from transporting our products.
• Cleaner fuel sources: Today’s zero-emission vehicles are not always feasible for PepsiCo’s logistics needs. As we test new technologies, we also explore the use of lower-emission fuels. These fuels, such as renewable natural gas and hydrotreated vegetable oil, typically produce lower tailpipe emissions than traditional fleet fuels.
• Decarbonization: In both its on-road and on-site fleet, PepsiCo continues to expand the use of zero-emission vehicles. We continue to upgrade our fleet to incorporate advancements in sustainable technology and reduce environmental impact, while also offering employees on-the-job training to maintain and operate new high-tech equipment. Combined, these decarbonization updates help us to reduce our emissions in our operations and our value chain and serve as a testing ground to identify solutions that can be scaled across PepsiCo.
• Third-party transport: We continue to develop and share best practices with third parties to encourage them to do the same.

For specific actions recently undertaken, see Actions, below.

Metrics & targets

While not specifically included in the scope of our pep+ (PepsiCo Positive) ambitions, fleet decarbonization contributes significantly to our Positive Value Chain climate efforts. We track the below metrics for our company-owned fleet to help us measure progress.

Actions

Efficiency

We use technology like Advanced Driver Assist Systems (ADAS), advanced aerodynamic devices and smarter routing programs to encourage fuel conservation. PepsiCo also trains drivers to use gentler acceleration and to avoid unnecessary braking and idling.

PepsiCo continues to optimize and right-size delivery vehicles for its North American beverages division through load optimization, route optimization and driver efficiency improvements. Load optimization can reduce the number of vehicles on the road, miles driven and ultimately fuel used. The combined effect of these efficiency improvements help to improve miles per gallon (MPG) performance and reduce miles traveled.

PepsiCo’s North American foods division introduced tractors with liftable tandem axles that deploy or lift the second axle based on load weight. This technology reduces rolling resistance, tire wear and brake wear and is also expected to improve MPG performance.

Cleaner fuel sources

In 2025, 89% of compressed natural gas (CNG) purchased for our North American foods fleet was from renewable sources. We are establishing fueling contracts to help ensure that more future fleet natural gas will be from renewable sources.

Decarbonization

In 2025, PepsiCo Beverages U.S. completed the full deployment of 50 Class 8 electric semi-trucks at our manufacturing and distribution site in Fresno, California. This marks the largest electric Class 8 deployment in our fleet and supports our Scope 1 reduction efforts. We also continued to expand our electric vehicle charging infrastructure across the U.S. which supports our fleet of electric vehicles and further helps us reduce our Scope 1 emissions.

Outside of the U.S., PepsiCo continued to progress in our decarbonization journey. We deployed 72 electric vehicles in Guatemala which will help reduce our greenhouse gas emissions. In Mexico, PepsiCo has deployed over 1,000 Ford E-Transit electric vans, with more than 300 deployed at PepsiCo’s Sabritas 100% electric powered distribution center in Tlalpizahuac, Mexico City, now the largest of its kind in Latin America. In Brazil, we successfully retrofitted a portion of our diesel-powered fleet of trucks to CNG which is a cleaner burning fuel.

Third-party transport

Beyond our direct operations, PepsiCo continued to work with our logistics partners to further reduce our environmental footprint. In 2025, PepsiCo partnered with XPO Logistics to deliver a variety of products from our four main UK distribution centers using electric vehicles. This helps us reduce our greenhouse gas emissions and helps to progress our climate ambitions.

Challenges

System solutions needed to scale decarbonization of transport include cost-competitive Class 8 EV trucks, charging infrastructure and market development for sustainable biofuels. While progress has been made, these system developments must move faster.

Strategic collaboration

We engage in and support multi‑stakeholder alternative energy initiatives and are an original signatory of the Sustainable Fuel Buyers’ Principles. These Principles encourage accelerated adoption of sustainable low‑carbon fuel and related technologies.

In the U.S., PepsiCo is a certified member of the U.S. Environmental Protection Agency’s SmartWay initiative, formed to improve fuel efficiency and the environmental performance of goods-movement supply chains.

In 2024, we joined forces with Terrawatt and Smart Freight Centre, a shippier-carrier coalition, to pilot heavy-duty EV charging along the first ever electrified highway corridor between Los Angeles, California and El Paso, Texas. By identifying key learnings and developing the wider ecosystem around electric trucks, the pilot aims to attract additional shippers and carriers to scale their electrification efforts and encourages technology providers to accelerate turn-key solutions for electric transport.

We’ve also joined WBCSD Zero Electric Vehicle Emerging Markets Initiative (ZEV-EMI). This initiative, launched at COP27 and joined by PepsiCo in 2023, brings together companies striving to transition toward zero-emission vehicles. This group of companies engages with policymakers, NGOs and industry to try to create the enabling conditions for accelerated adoption of these kinds of vehicles within emerging economies such as India.

Additionally, we work with the Sustainable Freight Buyers’ Alliance (SFBA) to standardize sustainable freight procurement guidelines and grow freight decarbonization solutions and related procurement practices. SFBA is led by the Smart Freight Centre with support from Business Social Responsibility, WEF, We Mean Business Coalition, and Mission Possible Partnership; PepsiCo joined this coalition in 2022.

What's next?

We expect to continue our transition to a cleaner, advanced, more efficient fleet increasingly powered by renewable sources. We plan to continue our investments and initiatives that focus on:

• Connectivity: Utilizing data and technologies that improve efficiency;
• Electrification: Increasingly deploying electric vehicles to reduce emissions; and
• Transformation: Focusing on beginning to build an efficient fleet charging network including the addition of new chargers.

¹Renewable fuels procured for our fleet include both physical offtake of renewable fuels and credited use through book and claim programs. Fuel includes renewable electricity used for our North American fleet, some of which was procured through Power Purchase Agreements or Energy Attribute Certificates