PepsiCo recently released its 2023 Environmental, Social, and Governance (ESG) progress report, offering a comprehensive update on the company’s global transformation initiative, pep+. This initiative aims to enhance long-term business performance and value through sustainable practices. The 2023 ESG Reporting Suite, which includes the ESG Summary, ESG Topics A-Z, and the ESG Data Hub, showcases PepsiCo’s commitment to environmental, social, and governance goals.
Key Achievements in 2023
PepsiCo achieved several milestones in 2023, surpassing some goals ahead of schedule while making significant progress on others. Key highlights include:
- Emission Reductions:
A 13% reduction in Scope 1 and 2 emissions year-over-year.
A 5% reduction in total Scope 1, 2, and 3 emissions year-over-year. - Plastic Use:
A 4% reduction in the use of virgin plastic derived from non-renewable sources year-over-year. - Regenerative Farming:
Doubling its global regenerative farming footprint to over 1.8 million acres. - Water-Use Efficiency:
Achieving a 25% improvement in water-use efficiency at high water-risk company-owned locations compared to a 2015 baseline, two years ahead of schedule.
Helping more than 10 million people gain access to safe water, bringing the total to over 91 million since 2006. - Nutritional Goals:
Introducing new goals to reduce sodium and deliver diverse ingredients.
Achieving 36% of its foods volume at or below new sodium targets.
Delivering 75 billion portions of diverse ingredients.
Strategic Investments and Partnerships
PepsiCo’s progress is attributed to a combination of innovative practices, strategic investments, and ground-breaking partnerships. With a workforce of 318,000 global associates, the company has been able to implement a variety of initiatives aimed at reducing its environmental footprint.
Jim Andrew, Chief Sustainability Officer at PepsiCo, emphasized the importance of these efforts: “Three years into our pep+ journey, it’s clear the focus we have driven throughout the business is working in many areas. Our use of virgin plastics is down year-over-year and our total Scope 1, 2, and 3 emissions are down compared to 2022, as well as versus our 2015 baseline. This is all to be celebrated. However, the road ahead will continue to present challenges. We continue assessing where to devote time and resources to deliver meaningful impact and ensure we are focusing our efforts. Building strong and strategic partnerships with other scale players and adopting and scaling breakthrough technologies are central to our strategy.”
Ongoing Challenges
Despite these successes, PepsiCo acknowledges that certain areas, particularly packaging, remain challenging. The company is continuously exploring new solutions to reduce its environmental impact and enhance sustainability in packaging.
PepsiCo’s 2023 ESG report underscores the company’s dedication to sustainability and its progress towards achieving its pep+ goals. While celebrating its accomplishments, PepsiCo remains committed to overcoming challenges and driving further innovation in its sustainability efforts.
