Approach

Climate change is already disrupting the food system, and we are focused on taking actions that seek to mitigate and adapt to its effects. We not only have an interest in reducing greenhouse gas (GHG) emissions for the benefit of society — it’s also crucial to the viability of our business, as we are already experiencing the impacts of climate change within our supply chain. 

PepsiCo's Climate Strategy

Our climate strategy is centered around two pillars:

• Mitigation: Reducing GHG emissions with the aim to decarbonize our operations and supply chain; and
• Adaptation: Reducing vulnerabilities to the impacts of climate change by continuing to incorporate climate risk and opportunities in our business continuity plans and risk management processes.

Our strategy is supported by our Climate Transition Plan (CTP),¹ which outlines in detail the actions we believe will enable us to meet our climate mitigation ambitions, including in:

• Our direct operations: We are taking action in an effort to reduce our emissions in many of our company-owned and -controlled operations across the world.
• Our value chain: Outside our direct control, we strive to help reduce climate impact in our value chain, prioritizing decarbonization in agricultural sourcing, packaging and third-party transportation and distribution.
• Wider society: We believe that effectively addressing climate change requires coordinated and collective action. We seek to work beyond our operations to promote actions that support progress.

Additionally, our CTP acknowledges our reliance on key external enablers and catalysts, including:

• Decarbonization and modernization of electrical grids;
• Government policy that incentivizes and/or mandates climate action;
• Standardized regulatory frameworks for disclosure and clarity in GHG emissions accounting;
• Technology innovation and commercialization;
• Advances in technology and infrastructure to enable packaging circularity;
• Market development for supply of affordable, low-carbon fuels; and
• Increased availability of capital from public, philanthropic and financial sectors to support decarbonization.

Our strategy endeavors to use scalable solutions that are available today, but also acknowledges that achieving net-zero emissions by 2050 will likely require new technologies and mechanisms. To this end, we continue to invest in promising solutions.

The challenges in this journey are significant and complex, and we have work to do to achieve our vision. When we set our pep+ climate goals in 2021, the political and regulatory landscape looked very different than it does today. Many expected developments — stronger policy support, increased investments and regulatory action to drive change — didn’t materialize, and business growth introduces new challenges to emissions reductions. But, we remain focused on trying to drive change through our pep+ (PepsiCo Positive) agenda and striving to reduce the linkage between our business and emissions growth.

We believe long-term transformation requires agility to identify what’s working, what isn’t, and adjust our approach to focus on areas where we believe we can have the greatest impact. We regularly review our sustainability goals and initiatives and consider changes that are from time to time warranted, including in the context of new developments, such as business growth, necessary investments relating to our initiatives and steps necessary to maintain Science Based Target Initiative (SBTi) alignment (which advises that targets are reviewed and, if necessary, recalculated and revalidated every five years at a minimum), as well as external developments. As a result of these reviews, we updated our climate ambitions in 2025.

PepsiCo’s refined climate goals, validated by SBTi, were shaped by its own learnings and the latest science. PepsiCo’s previous total Scope 3 target was aligned to well-below 2°C, and aimed to achieve net-zero emissions by 2040. In refining its climate ambitions, PepsiCo plans to continue to meet SBTi standards through absolute emissions reductions within its value chain while reserving the use of beyond value chain carbon removal credits until 2050. 

Targets

We aim to achieve net-zero emissions by 2050 or sooner, and our targets have been officially validated by the SBTi. In our path to net-zero, we also aim to achieve by 2030: 

• A 50% reduction in Scope 1 and 2 emissions;²
• A 30% reduction in Scope 3 Forest, Land and Agriculture (FLAG) emissions;³ and
• A 42% reduction in Scope 3 Energy and Industry (E&I) emissions.⁴

All 2030 climate goals are measured against a 2022 baseline. These goals reflect SBTi’s sectoral guidance on FLAG and E&I emissions and are aligned to a 1.5oC trajectory by 2050.

Our strategy to achieve our 2030 emission reduction goals does not include the purchase of beyond value chain carbon credits — we do purchase various credits, such as certificates or market instruments, generated from emission reduction projects within our value chain. We plan to achieve our 2050 net-zero goal by pursuing significant emission reductions within our value chain first, then balancing residual emissions with limited use of high-quality carbon removal credits generated beyond our value chain.

We recognize that the effects of climate change are often felt most acutely by the most vulnerable in society. As we work to build resilience for our business and supply chain, we also strive to support a Just Transition for these vulnerable groups, maximizing the social and economic opportunities stemming from our Climate Transition Plan, while minimizing and carefully managing the risks. As an example, our water replenishment work in high water-risk watersheds helps to support a secure water supply for communities in areas where climate change puts water availability at risk. This includes projects in South Africa, India, Pakistan, Mexico and the western U.S.

Risk management and scenario analysis

Climate change is already producing environmental impacts including temperature extremes, adverse weather events, droughts and coastal flooding. Without significant intervention, these are only expected to increase in severity and frequency. While climate change represents a risk to our business, there is also opportunity to drive resilience in the face of these events. We regularly assess the various risks and opportunities associated with the impacts from climate change that our business faces. This helps PepsiCo to safeguard against vulnerabilities and to work toward driving systemic change.

Informing our adaptation work is our Integrated Risk Management Framework, a process that identifies, assesses, prioritizes, manages and monitors the risks affecting the Company across its operations — including climate change. Climate risks are considered by both the PepsiCo Board of Directors, including its Sustainability and Public Policy Committee and the PepsiCo Risk Committee.

In line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), in 2024 we updated our climate scenario analysis to identify climate-related risks and opportunities. The analysis focused on key areas of PepsiCo’s operations that are critical to our business and helped us understand how the business could be affected under various emissions scenarios. The results help us to:

• Identify our hotspot areas in terms of potential climate impacts — both physical (e.g., heatwaves, water stress, etc.) and transitional (e.g., carbon price, failure to adopt circularity in packaging, etc.).
• View our business within low and high emissions scenarios:
  • For transition risk analysis, we analyzed our business under two scenarios — aligned with the Paris Agreement (warming only 1.5°C above pre-industrial levels) and a business-as-usual scenario, where emissions are expected to grow until 2080, leading to 3°C of warming by the end of the century.
  • For physical risks, which cover a variety of climate hazards, we conducted our scenario analysis for low emissions (SSP 1-2.6) and high emissions (SSP 5-8.5) scenarios.
• Understand the evolution of risks we face by analyzing these scenarios across different time horizons.
• Understand the various opportunities that could arise and give PepsiCo a competitive advantage as our business transitions to a low carbon world. 
• Strengthen our resiliency planning (e.g., incorporating climate risk into our capital allocation decisions).

We plan to update our analysis with updated internal information and methodologies every 2-3 years based on business needs and regulatory requirements.

Governance

At PepsiCo, our sustainability approach is integrated with — not separate from — our business. Our governance reflects this, with a structure that combines Board and senior leadership oversight with the subject matter and localized expertise that informs our strategy and how we execute it.

The Board plays an essential role in determining our strategic priorities and considers sustainability issues (e.g., climate change) as an integral part of its business oversight. To this end, the Board established a Sustainability and Public Policy Committee to assist in providing more focused oversight on key policies and programs and regularly receives updates from senior management on related risks.

At one level below the Board, the Sustainability Committee of the PepsiCo Executive Committee (PEC) has direct oversight of the sustainability and climate agenda, including strategic decisions and performance management. The Committee meets regularly to review progress against goals; progress against broader environmental risk mitigation (such as our efforts to mitigate the impacts of climate change); and to ensure that we are adapting our sustainability strategy to changes in science, stakeholder expectations and marketplace conditions. Additionally, strategy and progress against our sustainability goals are reviewed during bi-monthly meetings, which provide opportunities for our senior leadership to align on major strategic issues relating to sustainability, including climate change, and keep sustainability in focus among competing priorities.

The PepsiCo Risk Committee (PRC) of the PEC, which includes PepsiCo’s Chairman and CEO, works to identify, assess, prioritize and address our top strategic, operating and business risks. The PRC is also responsible for reporting progress on our risk mitigation efforts to the Board, including climate-related risks.

PepsiCo's Global Sustainability Office, led by the company’s Chief Sustainability Officer, is charged with coordinating and informing the company’s sustainability agenda. Serving as the central connection point, the Sustainability Office works closely with leaders from across the business to drive continued progress against our climate change agenda and embed sustainability into our long-term strategic planning.

At the region level, sustainability teams within our business lead the execution of our pep+ strategy for their region. Region-led sustainability teams also respond to sustainability issues unique to their geography, address regional and local challenges and support best-practice sharing across other regions.

For more information about our governance practices, see Sustainability governance.

Resource allocation

Meeting our climate ambitions will require investment, not only of employees’ time and capability, but also of financial resources to support scalable solutions and catalyze new technologies. Each year, a cross-functional team comprised of climate subject matter experts, as well as the sustainability strategy and strategic investments teams comes together in an effort to identify solutions to help them achieve our climate goals, and to ensure these are funded. We use a variety of mechanisms to drive climate investments, including: 

• The Climate Outcomes Fund targets investments that aim to reduce our Scope 1 and Scope 3 greenhouse gas emissions footprint.
• Green bonds help to fund projects in decarbonization, sustainable packaging, water and regenerative agriculture to advance critical steps in our sustainability journey.
• The Positive Agriculture Outcomes (PAO) Accelerator offers PepsiCo market teams co-investment designed to "de-risk" promising initiatives while accelerating the development of innovative technologies and approaches that could help scale the adoption of regenerative agriculture practices and other Positive Agriculture ambitions.
• Our Positive Packaging Outcomes Fund funds projects that aim to improve the lifetime footprint of our packaging, from reuse models to collection systems.
• The pep+ Real Estate Fund is used by offices and operations to implement sustainable solutions like recycling centers and compost programs.

For more information on our efforts to finance sustainability efforts, including climate mitigation and adaptation projects, see our annual Green Bond Report.

PepsiCo and climate policy advocacy

We believe industry and governments should take science-based action to keep global temperature increases to well-below 2°C or 1.5°C above pre-industrial levels, as described by the Special Report on Global Warming of 1.5°C of the Intergovernmental Panel on Climate Change.

To combat climate change, emitters need effective and widely-adopted climate policy that creates clear price signals and incentives to accelerate sustainable technology, regenerative agriculture and needed innovation. PepsiCo has an extensive public record of supporting climate policy through actions including:

• Signing the American Business Act on Climate Pledge
• Signing the We Are Still In declaration in support of the Paris Agreement
• Becoming a founding member of the U.S. Climate Leadership Council
• Endorsing the World Economic Forum’s Alliance of CEO Climate Leaders statements on climate policy
• Endorsing the We Mean Business climate action letter to the G20
• Signing the Global Renewables Alliance letter calling for a target at COP28 to triple renewable energy capacity by 2030

PepsiCo's vision is to support a sustainable environment and economy through meaningful climate action, and we call on governments around the world and all climate action advocates, including businesses and trade associations, to work constructively and with urgency to raise the bar on national climate policy. For more on our policy engagement, see Public policy engagement, political activities and contributions guidelines.

Measuring our impact

We complete an annual corporate greenhouse gas inventory to evaluate the global GHG footprint of our operations (Scopes 1 and 2) and value chains (Scope 3 FLAG and Scope 3 E&I). In 2024, PepsiCo’s total GHG emissions across Scopes 1, 2 and 3 were 53 million metric tons. Consistent with previous years, the majority of our GHG footprint comes from our value chain, or Scope 3 emissions. Scope 3 E&I emissions represent 70% of our overall emissions and Scope 3 FLAG Emissions make up another 24%. In line with the Greenhouse Gas Protocol (GHG Protocol), we exclude certain Scope 3 categories and activities from our annual emissions inventory. See Calculation methodology for more details. 

Our inventory follows leading industry guidance established by the GHG Protocol. Our Scope 3 FLAG and E&I emissions inventories include emissions from all relevant Scope 3 categories, in line with guidance from the GHG Protocol. We use the inventory results to try to identify emissions hotspots and to develop and prioritize actions that aim to reduce emissions across our value chain. 

Emissions inventories have also been used to establish PepsiCo’s global climate ambitions. Consistent with requirements from the SBTi, our near-term pep+ climate targets exclude certain categories and activities of our Scope 3 FLAG and E&I inventories. Exclusions cover small categories where we have low control or influence. For detail on the inclusions and exclusions for progress reported against our climate goals, see Calculation methodology.

Scope 1 and 2 emissions

Our Resource Conservation (ReCon) program is a comprehensive, global platform of resources, tools and programs aiming to improve energy and water efficiency and reduce waste in manufacturing and warehousing operations. Through a combination of training and technology, ReCon seeks to identify opportunities to reduce fuel and electricity consumption with a focus on deploying energy efficient utility and process equipment, while driving behavioral improvements through training operators.

Additionally, continued developments in fleet technology, including aerodynamics, more efficient powertrains and GPS/telematics can further drive fleet fuel efficiency. We are further improving the GHG intensity of our manufacturing and fleet operations through the use of alternative and renewable fuels, such as renewable compressed natural gas and biomass from sustainable sources, as well as transitioning to zero-emissions vehicles supported by renewable electricity purchased or generated on-site. See Fleet decarbonization for more on those efforts.

We are working on transitioning to 100% renewable electricity globally across our company-owned operations by 2030. We plan to use a combination of tactics as we strive toward this goal. Where feasible, we will install renewable energy on-site or purchase renewable energy through Power Purchase Agreements (PPAs) or with unbundled Energy Attribute Certificates (EACs). For more on our approach and progress, see Renewable energy.

Across our operations, we have outlined a set of principles, Sustainable Operations from the Start (SOftS), that provide a framework for manufacturing and distribution sites as well as the expansion of existing operations to be funded, scoped and activated with net-zero emissions and net water positive outcomes in mind. SOftS requires new operations within PepsiCo to have zero incremental manufacturing emissions at the start-up stage.

Scope 3 emissions

In line with sectoral guidance from the SBTi, we manage our Scope 3 emissions in two categories: Forest, Land and Agriculture (FLAG) and Energy and Industry (E&I).

Forest, Land and Agriculture (FLAG) emissions

FLAG emissions in our value chain arise from upstream land-related activities within agriculture and packaging procured by PepsiCo, our key franchise bottlers and our contract manufacturers. Emissions from agriculture purchased goods made up nearly all of our total FLAG emissions in 2024  — approximately 94 percent. Our agriculture climate strategy intersects with our Positive Agriculture goals. We continue to collaborate with farmers to drive the adoption of regenerative agriculture. These practices, including planting cover crops and adopting low- or no-till techniques, may help to reduce on-farm GHG emissions and improve the resilience and sustainability of our crop supply. Additionally, we work closely with farmers to identify improvements in operational efficiencies. 

Energy and Industry (E&I) emissions 

E&I emissions arise from all other relevant Scope 3 categories as outlined in our Calculation methodology, including certain purchased goods and services, ingredient processing, packaging and contract manufacturing. Our efforts to reduce E&I emissions focus on agricultural ingredient processing, packaging and third-party transportation and distribution. Striving toward our net-zero goal requires continued collaboration within our upstream and downstream value chain from whom these emissions originate.

In agricultural ingredient processing where our agriculture E&I emissions originate, we are engaging our key agricultural suppliers in an effort to increase the use of renewable electricity and fuels to reduce the GHG footprint of ingredient processing.

To reduce packaging impact, in our key packaging markets, we aim to incorporate more recycled content in our primary packaging and strive to make our primary and secondary packaging recyclable, reusable or compostable. We are also reducing the weight of packaging material, introducing alternative materials and exploring alternative business models that can eliminate or significantly reduce packaging. Furthermore, we are engaging our key packaging suppliers aiming to accelerate the adoption of clean energy solutions to reduce the GHG emissions of packaging materials.

Within third-party transportation and distribution, we aim to improve the efficiency and carbon intensity of the fleet that moves our products. By mapping and quantifying our baseline emissions from third-party carriers and engaging with our third-party carriers, the U.S. EPA's Smartway program and industry alliances like the Smart Freight Buyers Alliance, we are identifying opportunities for improvement within our carrier base. These include working with our carriers to adopt efficiency measures, use sustainable biofuels and transition to zero-emissions vehicles such as electric vans and trucks.

Underpinning our focus areas across Scope 3 E&I is supplier engagement, because a portion of our Scope 3 emissions lie within our direct tier 1 suppliers' operations.⁵ At our 2023 annual global Supplier Summit, we laid out four climate-related expectations and asked our top 200 suppliers⁶ to:

1. Set and commit to a Science Based Target (SBT);
2. Share an SBT-aligned decarbonization plan and annual progress;
3. Report Scope 1 & 2 emissions; and
4. For agricultural suppliers, collaborate with PepsiCo to roll out regenerative agriculture practices.

When these suppliers track and measure their GHG impacts, we benefit from more precise emissions calculations; and as they begin work to improve their emissions footprints through operational efficiencies and renewable energy use, we anticipate a reduction of our Scope 3 emissions. 

Our strategy for supplier engagement is a continuous improvement process based on three key elements: aligning with suppliers on priorities, building capabilities and supporting meaningful climate actions. PepsiCo engages select highly mature suppliers one-on-one at the leadership level to align on priorities and collaborative initiatives. We also work closely with certain tier 1 suppliers⁵ to address the further upstream emissions, whether on-farm or in raw material extraction. We expect these types of collaborations to lead to a reduction in Scope 3 emissions for PepsiCo and our suppliers.

Beyond our Scope 3 focus areas, we are also striving to address emissions through additional initiatives:

• Engaging third parties, including our franchise bottlers, non-controlled joint ventures, contract manufacturers and co-packers, in an effort to bring them along on our climate action journey. Improving their operational efficiency will help reduce PepsiCo’s Scope 3 emissions.
• Continuing Sustainable from the Start, an environmental sustainability impact assessment program for our product development process. The program includes a toolkit and business processes that aim to build the capability within our various functions involved in product innovation to help them understand the environmental and climate impacts of product design and make sustainable choices. In doing so, they are supporting our strategic, long-term vision to decouple our business from fossil fuels. To learn more, see Sustainable product design.
  

Note on methodology

Tracking, calculating and reporting the greenhouse gas emissions for a company of PepsiCo’s size is complex. Emissions, and Scope 3 emissions in particular, are calculated with the aid of estimates, regional or country-specific emissions factors developed through life-cycle assessment methodologies and modeling. Our annual reporting relies on many external rules, standards and data sets — developed by GHG accounting experts. We aim to use the best available methodologies and continually refine our approach to calculating our emissions. For detail, see Calculation methodology and ESG data governance. PepsiCo’s GHG footprint is subject to change as a result of major updates to our operational footprint, particularly when the company completes acquisitions or divestitures, or when improved data, methodologies or emissions factors become available.

pep+ in context: Climate

Progress toward our net-zero ambition will require unlocks across key internal and external factors.

Progress

Decarbonizing our value chain is a complex effort requiring a multi-pronged approach and the commitment of stakeholders as diverse as suppliers, regulators, customers and consumers. We know that our efforts do not occur in a vacuum — they rely on the developments of the wider systems in which we operate. Key areas, such as modernization of electrical grids and development of affordable renewable fuel supply, will influence our progress as we work towards decarbonization. We’ve learned a lot as we’ve tested technologies and we aim to continue to implement scalable solutions that are available today, while also investing in new promising technologies.

Delivering our products requires certain key inputs and activities whose emissions we cannot always control or even influence. This includes the crops that make up our products, the packaging that holds them and parts of the transportation system that delivers them to our customers. We know that turning the tide will take diligence and time, but we are laying the foundation by investing in climate action and building resilience in our own operations and beyond. Though progress has not always been fast, we are seeing movement in these hard-to-move spaces.

Between fuel consumption and electricity use in our company-owned operations, we used approximately 77 million gigajoules of energy, or approximately 58 million gigajoules of energy excluding our fleet fuel use. Progress towards our climate and renewable electricity goals is being achieved in part by building on-site solar and wind installations at our plants and distribution centers, coordinated by local and segment teams. We also execute Power Purchase Agreements (PPAs), which finance the development of new renewable electricity projects such as solar and wind farms, and purchase energy attribute certificates (EACs), known as renewable energy certificates (RECs) in the U.S. EACs and RECs from existing wind or solar farms are certified by independent third parties that support existing electricity generation from renewable sources before being included in our portfolio of renewable electricity. Unbundled RECs enable companies to support the renewable energy market and renewable energy generation, and their use is a common first step in the renewable electricity journey. We anticipate increasingly transitioning to longer-term renewable electricity solutions such as PPAs and on-site generation over time. 

Our emissions intensity for in-scope emissions (calculated as million MT GHG emissions per $ billion net revenue) was 0.45 in 2024, down from 0.54 in 2022.⁷

Scope 1

In 2024, PepsiCo’s Scope 1 GHG emissions were 3.3 million metric tons, down 5% from our 2022 baseline. We are undertaking various initiatives in an effort to sustain this progress.

We are in the early stages of piloting plant electrification projects, which will be powered by renewable electricity in an effort to continue reducing our Scope 1 emissions. In Poland, we’re transforming one of our snack production plants to eliminate the need for natural gas over time. Traditionally used as a heat source for ovens and the drying process, natural gas is being replaced in production lines by electrification, with electricity supplied from a new on-site solar photovoltaic farm. This transformation is planned to be operational by the end of 2025 and is expected to reduce over 1,100 MT of CO₂e a year. For more information on our progress with regard to sustainable fuel use in our operations, see Renewable energy.

We have also made significant improvements in fleet GHG intensity over the years. This was achieved by diversifying the types of fuels we use, improving fuel economy, right-sizing vehicles and transitioning to zero-emissions vehicles. For more on our industry-leading efforts to reduce emissions from transportation and distribution, see Fleet decarbonization.

Scope 2

In 2024, PepsiCo’s Scope 2 (market-based) GHG emissions were approximately 170,000 MT, down 77% from our 2022 baseline. This progress was driven significantly by meeting 89% (approximately 3,900 GWh) of the company’s direct global electricity needs with renewable electricity, including through the use of PPAs and EACs. 

After transitioning our U.S. direct operations to sourcing 100% renewable electricity (including credits) in 2020, we set our sights more broadly and by the end of 2024, 39 countries in PepsiCo’s operations consumed 100% renewable electricity, including on-site solar, off-site power purchase agreements and renewable energy credits, for both manufacturing and non-manufacturing facilities. Our Skelmersdale, U.K. factory installed a new wind turbine that can power up to 55% of the electricity needed to make Walkers crisps at the plant in 2024. For more information on our progress adopting renewable electricity, see Renewable energy.

Our SOftS principles continued to guide our Scope 1 and Scope 2 ambitions for new facilities in the PepsiCo network. In 2024, we broke ground on a new factory in Kazakhstan that, when operational in 2026, is designed to recover heat from cooking processes, use water optimization systems for treatment and collect rainwater for irrigating the factory’s green spaces, among others. In addition to the operational impact reduction projects, we’re also aiming to locally source 100% of potatoes for the facility by 2033 — reducing the Scope 3 upstream transportation and distribution emissions associated with the products made at the factory.

In total, our Scope 1 and 2 emissions were down 18% from our 2022 baseline.⁷ 

Scope 3

In 2024, our in-scope Scope 3 E&I emissions were 26 million metric tons, down approximately 12% against our 2022 baseline.⁷ In-scope Scope 3 FLAG emissions, down 7% against our 2022 baseline,⁷ were 12 million metric tons of CO₂e. Across Scope 3 E&I and FLAG emissions combined, in-scope agricultural GHG emissions are down 8% when compared to our 2022 baseline and 5% against prior year. 

Like many large, global organizations, reducing Scope 3 emissions is the biggest challenge we face in advancing progress toward our 2050 net-zero goal. Given the indirect nature of these emissions, quantifying and managing them is difficult and requires strategic collaboration and engagement. 

We work with stakeholders throughout our value chain — including suppliers, contract manufacturers, franchise bottlers and customers — with the aim to help them improve the sustainability of their operations.  

A point of light in our Scope 3 emissions efforts is our continued progress with vending and cooling equipment in retail, in respect of which we reduced GHG emissions by 80% in 2024 compared to our 2022 baseline. Our progress is in part because we continue to replace current models with more energy-efficient ones and migrate into hydrofluorocarbon (HFC)-free refrigerants, all compliant with the latest standards of DOE2017 and e-star3. PepsiCo Europe phased out all D Energy Class coolers from its portfolio in 2024, and has migrated to B and C Energy Class coolers — which are more energy efficient. In addition, since 2023, we are purchasing renewable electricity, in the form of Energy Attribute Certificates (EACs) from existing renewable generation assets like wind and solar, for the estimated electricity consumption by our equipment in North America and certain markets in Europe.  

Our pep+ Positive Agriculture and Positive Value Chain ambitions are mutually beneficial — regenerative, restorative and protective practices can also help us reduce our GHG emissions. We helped spread the adoption of regenerative agriculture, restorative or protective practices across more than 3.5 million acres as of the end of 2024.⁷ We supported approximately 20,000 farmers to plant cover crops and implement other regenerative practices, resulting in an approximately 1.6 million metric ton net reduction in on-farm GHG emissions, including soil carbon sequestration, in 2024.⁸ While we are pursuing our ambitious goal of rolling out regenerative agriculture, restorative, and protective practices, we are working to measure and include in progress calculations sequestered carbon from these efforts in line with the GHG Protocol’s Land Sector and Removals Guidance and Standard, which is expected to be finalized by end of 2025.

Together with Yara, we announced a new program in Europe aimed at providing farmers with crop nutrition programs designed to help decarbonize the food value chain. PepsiCo and Yara signed an agreement to work with approximately 1,000 farms, covering a total of around 128,000 hectares across the European Union and the U.K. to adopt low-carbon fertilizers and precision farming technologies in an effort to reduce the impact of crop production, focusing primarily on potatoes. Yara will deliver up to 165,000 tons of fertilizer per year to farmers in our supply network, covering around 25% of these farmers’ crop fertilizer needs in Europe by 2030. These fertilizers will be mostly Yara Climate Choice fertilizers, which include low-carbon footprint fertilizers produced from either renewable ammonia or low-carbon ammonia.

In the early stages of this program, provided fertilizers will also include nitrate-based mineral fertilizers produced using natural gas, which have a carbon footprint that is around 50% lower than most non-EU fertilizers due to the use of catalyst technology. 

In 2023, we supported the development of the Climate Resilience Platform (CRP) — lead by the Alliance of Bioversity International and the International Center for Tropical Agriculture. This tool, part of our broader value-chain engagement toolkit, helps translate climate research into actionable insights for companies to support a resilient agricultural supply chain and farming system for climate change adaptation. Recognized by Fast Company in 2024 as a “Next big thing in tech” for its contributions to food and agriculture, the CRP tool aims to help boost yields and reduce environmental impact.

Similar to our work in agriculture, our in-scope packaging emissions were down 11% from our 2022 baseline and 5% compared to prior year. Our sustainable packaging vision includes a focus on developing and deploying sustainable packaging materials and new models that we expect will reduce our reliance on single-use plastics and packaging in our key packaging markets. We anticipate that progress made on this goal will have the additional benefit of reducing our Scope 3 emissions from packaging. For specific details on our packaging goals and more information on our journey, see Packaging.

Third-party logistics remain a key area of focus for GHG reductions. Fleet technology, vehicle development — particularly for low- or zero-emission Class 8 vehicles — and alternative fuel availability are not yet at the scale needed for our logistics providers to adopt. To combat this, we work to put the right financing mechanisms in place between PepsiCo and our carriers. Some will spend their own capital on electric vehicles and charging infrastructure; in these instances, PepsiCo contracts are an important source of financing. In other cases, PepsiCo may provide charging infrastructure or enter into deals with third-party providers of electric vehicles and infrastructure.

Since 2023, all U.S. carriers have been required to be U.S. EPA SmartWay certified to be eligible to participate in PepsiCo transportation bidding processes. The program provides resources for third-party carriers to learn how to improve their efficiency and report their fleet carbon intensity each year.

Where feasible, we also increase the number of shipments on intermodal methods — primarily rail, supplemented by truck — which generally reduces emissions compared to using trucks only.

Engaging our value chain in our climate ambitions is integral to our Scope 3 emissions action plan. Setting clear and consistent expectations with our suppliers helps lay the foundation for successful collective action.

In 2024, 62% of our top GHG-emitting suppliers⁶ had committed to set or have already set science-based targets.

In 2023, we launched a supplier survey which allows us to monitor, report and track progress. The survey positions them on a “Leader Ladder” with five categories: initiating, engaging, progressing, accelerating or leader. Understanding and meeting our suppliers where they are can provide us with greater insight and the ability to create deeper engagement and collaborative opportunities. In 2023, 21% of suppliers were in the Initiating phase of their sustainability journey and 15% were already in the Accelerating phase. In 2024, suppliers continued to advance progress with 10% in the first stage of the journey and 18% achieving Leader status position of the Leader Ladder.   

In 2024, we launched the Climate Collaboration Group (CCG) which brings together 18 of PepsiCo’s leading suppliers on climate action. The purpose of the group is to identify shared climate issues where collaboration could be a significant financial unlock and speed transformation. 

Internal carbon pricing

In 2021, we launched an internal carbon price through our Business Travel Inset Program (B-TIP), which is helping us balance out the carbon ‘cost’ of our business air travel. With B-TIP, we have added a carbon fee to the cost of each flight undertaken by employees for business travel. Collected fees, borne by the traveling employee’s region, business unit or function, are then reinvested into regenerative agriculture projects that aim to reduce carbon emissions. In addition, we have been continuously refining the tools and metrics that PepsiCo uses to evaluate and justify investments like our Green Bond and sustainable CAPEX — including a cost-of-carbon calculator. 

PepsiCo continues to be recognized for its climate strategy. From 2017-2024, we received an A- or better on our annual CDP Climate Change submission. In 2021, PepsiCo received the inaugural Terra Carta Seal from His Majesty King Charles III in his former role as The Prince of Wales, which recognizes organizations that have made a serious commitment to a future that is more sustainable. 

Strategic collaboration

While we strive to reduce our own impact, we believe that effectively addressing climate change also requires a collective response. To this end, we engage regularly with industry, non-governmental organizations and other stakeholders to promote actions that help protect the climate. Across all of our third-party engagements, we focus our work on designing, launching and scaling holistic solutions to complex challenges, investing alongside key stakeholders across all levels and leveraging external technical and financial resources in an effort to deliver outcomes that reduce climate risk, increase resilience and drive mitigation and long-term sustainability. For more detail on a selection of these collaborations, see Climate collaboration and engagement.

What's next?

Striving toward our climate goals is a key priority under pep+. To this end, we expect to focus on the following priorities in the coming year:

• Renewable energy within our operations;
• Scaling up regenerative practices across our agricultural supply chain;
• Supplier engagement and collaborations within our agricultural and packaging supply chains;
• Material reduction and recycled content in our packaging;
• Opportunities to decarbonize transportation and distribution; and
• Engagement with third-party manufacturers on operational efficiencies and renewable energy.