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.
Source : https://www.pepsico.com/esg-topics/climate-change