There has been much discussion over recent months concerning the EU Green Deal, its ongoing relevance, its direction. We have seen some reports which suggest that business lobbies against the Green Deal, with a view to seeing it diminished or halted. With that in mind, I want to confirm that PepsiCo strongly supports the broad thrust of the EU Green Deal, believes that the agenda remains as vital and valid as ever, and hopes that the incoming Parliament and Commission from 2024 to 2029 will continue to develop clear policies that promote sustainability and address climate change.
I want to confirm that PepsiCo strongly supports the broad thrust of the EU Green Deal.
To be clear — we need those policies. We need new legislation. Without the right policy framework, PepsiCo will struggle to achieve the ambitious targets that we set for ourselves two years ago with PepsiCo Positive (pep+).
pep+ is our blueprint for harmonizing our corporate activities with environmental and social imperatives and is closely tied to the principles of the Green Deal. The formulation of pep+ stems from the recognition of two indisputable realities.
The first, a company of our scale has a real opportunity to shift the needle. A responsibility. With operations in more than 200 markets, more than 30 crops sourced from over 2.8 million hectares in 60 different countries, and more than one billion interactions with consumers each day — we are not a drop in the ocean. When we act, we make a difference.
The second, by doing what’s right for people and the planet, we can grow our business: generating stronger, more loyal connections with our consumers; and building deeper roots in our communities.
But what is pep+ and why should EU policymakers care?
pep+ is based around the three areas where we think we can create tangible change: value chain, agriculture and consumer choices. Within each of these foundational pillars lie ambitious goals poised to make a substantial contribution to the overarching agenda of the EU Green Deal.
pep+ is based around the three areas where we think we can create tangible change: value chain, agriculture and consumer choices.
Positive Value Chain is closely aligned with the Net-Zero Industry Act and the Circular Economy Action Plan. It’s all about how we make, transport and deliver our products.
PepsiCo is committed to achieving net-zero emissions by 2040, and we have more than doubled our 2030 reduction goal to 75 percent for emissions from our direct operations (Scope 1 and 2) and to 40 percent for indirect emissions from our value chain (Scope 3). Our 2030 strategy does not include the purchase of carbon offsets but rather focuses on reducing emissions across our own operations, investing in renewable energy sources and embracing innovative technologies to combat climate change.
Product packaging has historically been associated with a substantial carbon footprint, prompting us to make a series of commitments toward a circular economy for packaging. These commitments encompass various initiatives, like ensuring that all chip packets come from 100 percent recycled or renewable plastic by 2030, with a simultaneous aim to eliminate the use of virgin fossil-based plastic. Furthermore, in the past year, we successfully transitioned our Pepsi brand to 100 percent recycled plastic bottles (rPET) in nine EU markets. This shift away from virgin materials is projected to yield reduction of approximately 40 percent in greenhouse gas emissions per bottle.
Beyond that, we’re trying to change consumer habits by offering packaging solutions that require little or no single-use packaging, for instance through our SodaStream business. PepsiCo has committed to have 20 percent of beverages servings delivered through reusable models by 2030. Today, 12 million Europeans are already using SodaStream at home and we are calling on EU policymakers to consider refill-at-home models as reuse under the PPWR.
The second pillar, Positive Agriculture, aligns with the EU’s Soil Strategy, Biodiversity Strategy and Carbon Farming Initiative.
Our aim is to spread regenerative practices across 800,000 hectares of land managed by our farmers in Europe and sustainably source 100 percent of our key ingredients by 2030. That’s because current food production systems are not sustainable if we want to prevent climate instability and ensure biodiversity and soil health for generations to come.
Carbon farming has the potential to be an effective tool to deliver the European Commission’s Green Deal and Farm to Fork objectives. The effort to decarbonize the agri-food value chain is a monumental undertaking. As part of PepsiCo’s net-zero commitment, we are assisting our farming partners in the reduction and removal of carbon through carbon farming practices.
And finally, Positive Choices means building a portfolio of more nutritious options, contributing toward a healthier lifestyle and aligning with part of the Commission’s vision for sustainable food systems.
We continue to evolve our portfolio of products by incorporating more diverse ingredients — better for the planet and delivering nutritional benefits — prioritizing chickpeas, plant-based proteins and whole grains. We’ve expanded in nuts and seeds, where we are already the global leader and accelerated our reduction of added sugars and salt.
In addition, our goal is to inspire positive outcomes through our brands and their actions, including empowering consumers with transparent environmental labelling on key products.
We sincerely hope that Europe’s ambition and drive vis a vis the Green Deal remains unchanged.
The EU laid down the challenge and a framework to make it happen. While the year ahead will doubtless see a great deal of political change in Europe, we sincerely hope that Europe’s ambition and drive vis a vis the Green Deal remains unchanged. As a global company with deep European roots, we are determined to help Europe reach our shared targets faster, better and stronger.