PEPSICO RELEASES 2023 ESG SUMMARY HIGHLIGHTING PEPSICO POSITIVE (pep+) RESULTS

Rhea-AI Summary

PepsiCo has released its 2023 ESG Summary, showcasing progress and challenges within its pep+ initiative aimed at enhancing long-term business performance and value.

Key achievements include:

• A 13% reduction in Scope 1 and 2 emissions, and a 5% reduction in total Scope 1, 2, and 3 emissions.
• A 4% decrease in virgin plastic use from non-renewable sources.
• Doubling its global regenerative farming footprint to over 1.8 million acres.
• A 25% improvement in water-use efficiency at high-risk locations compared to a 2015 baseline, achieving this goal two years early.
• Helping over 10 million people gain access to safe water.
• Introducing new goals to reduce sodium and deliver diverse ingredients, with 36% of foods meeting sodium targets and 75 billion portions of diverse ingredients supplied.

Despite these successes, challenges remain, particularly in packaging. The complete ESG Reporting Suite is available for further details.

Positive

• 13% reduction in Scope 1 and 2 emissions.
• 5% reduction in total Scope 1, 2, and 3 emissions.
• 4% decrease in virgin plastic use.
• Doubled regenerative farming footprint to 1.8 million acres.
• 25% improvement in water-use efficiency at high-risk locations, achieving the goal two years early.
• Over 10 million people gained access to safe water.
• 36% of foods volume met new sodium reduction targets.
• Supplied 75 billion portions of diverse ingredients.

Negative

• Continuous challenges in achieving packaging goals.

PURCHASE, N.Y., June 20, 2024 /PRNewswire/ -- Today, PepsiCo has published its 2023 progress report on Environmental, Social and Governance (ESG) results. The 2023 ESG Reporting Suite includes the ESG Summary, ESG Topics A-Z and the ESG Data Hub, providing a detailed update on pep+, our global transformation program that seeks to drive long-term business performance and value.

In 2023, PepsiCo achieved some goals ahead of schedule, introduced new ones and made strong progress on others, while certain goals, including with respect to packaging, continue to present challenges. Through a wide range of innovation, strategic investment, ground-breaking partnerships and the multitude of actions pursued by our 318,000 global associates, the company:

• Reduced Scope 1 and 2 emissions by 13% and total Scope 1, 2 and 3 emissions by 5% year over year¹;
• Reduced our use of virgin plastic derived from non-renewable sources by 4% year over year²;
• Doubled our global regenerative farming footprint to more than 1.8 million acres³;
• Recorded a 25% improvement in water-use efficiency at high water-risk company-owned locations when compared to a 2015 baseline—reaching this goal two years ahead of schedule⁴;
• Helped more than 10 million people gain access to safe water, bringing the total to more than 91 million since 2006⁵; and
• Introduced two new goals to reduce sodium and deliver diverse ingredients—36%^6,7 of our foods volume was at or below these new sodium targets and we delivered 75 billion^7,8 portions of diverse ingredients.

"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," said Jim Andrew, Chief Sustainability Officer at PepsiCo. "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."

This year's digital summary and all associated downloadable assets are available here. Please refer to PepsiCo's complete ESG Reporting Suite assets for a full overview of PepsiCo's 2023 pep+ results.

About PepsiCo 
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo (NASDAQ: PEP) generated more than $91 billion in net revenue in 2023, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

PepsiCoMediaRelations@pepsico.com 

Cautionary Statement

This release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are identified through the inclusion of words such as "aim," "anticipate," "believe," "estimate," "expect," "future," "goal," "intend," "may," "plan," "position," "seek," "should," "strategy," "target," "will" or similar statements or variations of such words and other similar expressions.  Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: the risks associated with the deadly conflict in Ukraine; future demand for PepsiCo's products; damage to PepsiCo's reputation or brand image; product recalls or other issues or concerns with respect to product quality and safety; PepsiCo's ability to compete effectively; PepsiCo's ability to attract, develop and maintain a highly skilled and diverse workforce or effectively manage changes in our workforce; water scarcity; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo's manufacturing operations or supply chain, including continued increased commodity, packaging, transportation, labor and other input costs; political, social or geopolitical conditions in the markets where PepsiCo's products are made, manufactured, distributed or sold; PepsiCo's ability to grow its business in developing and emerging markets; changes in economic conditions in the countries in which PepsiCo operates; future cyber incidents and other disruptions to our information systems; failure to successfully complete or manage strategic transactions; PepsiCo's reliance on third-party service providers and enterprise-wide systems; climate change or measures to address climate change and other sustainability matters; strikes or work stoppages; failure to realize benefits from PepsiCo's productivity initiatives; deterioration in estimates and underlying assumptions regarding future performance of our business or investments that can result in impairment charges; fluctuations or other changes in exchange rates; any downgrade or potential downgrade of PepsiCo's credit ratings; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of limitations on the marketing or sale of PepsiCo's products; changes in laws and regulations related to the use or disposal of plastics or other packaging materials; failure to comply with personal data protection and privacy laws; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; failure to adequately protect PepsiCo's intellectual property rights or infringement on intellectual property rights of others; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations.

For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

¹ Reduced Scope 1 and 2 emissions by 33% and total Scope 1, 2 and 3 emissions by 4% measured versus a 2015 baseline.  In 2023, approximately 80% of the Company's direct global electricity needs were met with renewable electricity mechanisms, including on-site solar, off-site power purchase agreements and renewable energy credits
² Absolute tonnage of virgin plastic derived from non-renewable sources increased by 6% measured versus a 2020 baseline
³ PepsiCo considers an acre as delivering regenerative impact when the adoption of regenerative agriculture practices results in quantified improvements across at least two of the environmental outcome areas, with a strong preference for removing or reducing GHG emissions to be one impact area. Refer to PepsiCo's Regenerative Agriculture Practice Bank for a comprehensive listing of practices directly or indirectly linked to the five impact areas. Regenerative acres reported represent the annual count in each year presented based on actions undertaken since 2021
⁴ Measured versus a 2015 baseline. Goal reflects the exclusion of third-party facilities. Between 2006–2015, water-use efficiency improved by 26% in global legacy operations at the date of target setting. World Resource Institute's Aqueduct water stress assessment tool is used to reconfirm high water-risk areas every three years
⁵ Metric counts the cumulative number of people provided with access to safe water since 2006
⁶ Our global results are based on our Top 23 convenient foods markets. Refer to the Sodium ESG A-Z topics page for complete list of food categories
⁷ As of 2023, our Top 23 convenient foods markets represented 84% of our global convenient foods portfolio volume. Results reflect the exclusion of Be & Cheery portfolio and the exclusion of dairy and baby food categories in Russia and Ukraine
⁸ Our global results are based on our Top 23 convenient foods markets

 

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SOURCE PepsiCo, Inc.

FAQ

What achievements did PepsiCo report in its 2023 ESG Summary?

PepsiCo reported a 13% reduction in Scope 1 and 2 emissions, a 5% reduction in total Scope 1, 2, and 3 emissions, a 4% decrease in virgin plastic use, doubling its regenerative farming footprint to over 1.8 million acres, a 25% improvement in water-use efficiency at high-risk locations, and over 10 million people gaining access to safe water.

What new goals has PepsiCo introduced in its 2023 ESG Summary?

PepsiCo introduced new goals to reduce sodium and deliver diverse ingredients, achieving 36% of food volume at or below new sodium targets and supplying 75 billion portions of diverse ingredients.

What challenges did PepsiCo face according to its 2023 ESG Summary?

PepsiCo continues to face challenges in meeting its packaging goals despite other achievements.

How much has PepsiCo improved its water-use efficiency?

PepsiCo achieved a 25% improvement in water-use efficiency at high-risk locations compared to a 2015 baseline, reaching this goal two years ahead of schedule.

How did PepsiCo's emissions change according to the 2023 ESG Summary?

PepsiCo reduced its Scope 1 and 2 emissions by 13% and its total Scope 1, 2, and 3 emissions by 5% year over year.