PepsiCo sources 80% of agricultural raw materials sustainably

posted by Charlie Hart
22 June 2020

Nearly 80% of PepsiCo's farmer-sourced agricultural raw materials were verified as sustainably sourced in 2019.

In its 2019 Sustainability report, PepsiCo said 82% of its palm oil and 86% of its sugar cane were also sourced sustainably. 

It aims to meet its goal to reach 100% of raw materials, such as potatoes, whole corn, oranges, and oats, to be sustainably sourced by the end of 2020. 

PepsiCo added it is working with farmers to improve livelihoods and worker rights and raise standards for efficient resource use and environmental consciousness. 

It has worked with local and smallholder farmers to test locally-relevant, sustainable approaches to water use and soil health, such as drip irrigation and drone imaging for pest management.

The report also outlined the progress PepsiCo is making in priority areas such as agriculture, water, climate, packaging, and people.

It revealed that PepsiCo had reduced its greenhouse gas emissions by 6% across its global value chain in 2019. Around 88% of its packaging is recyclable, compostable or biodegradable, making progress towards meeting its goal of 100% by 2025. 

Ramon Laguarta, PepsiCo CEO, said: “Today's global environmental and societal pressures are bringing into sharp focus the need for systemic change. These challenges not only require deeper commitment from the private sector, they also require demonstrated and sustained action. 

“As a global food and beverage leader, we have a responsibility to use our scale and influence to help tackle long-term challenges, including addressing the threats to our food system, which have been further strained by the unfolding pandemic. From how we grow food and make products, to inspiring positive change – we are committed to help build a better future for people and the planet.”

Meanwhile, a global study has found that consumers are four times more likely to purchase products from a brand they perceive to have a strong purpose.

The study, conducted by communications agency Zeno, found respondents ranked “fair treatment of employees” as the number one element of a purposeful brand in North America and Europe. In Asia, consumers rated making “products and services that reflect the needs of people today” as the top element of a purposeful brand.

Around 94% of global consumers said it was important that companies they engage with had a strong purpose, but only 37% believed companies today actually did.

Alison DaSilva, MD, purpose and impact at Zeno Group, said: “The data proves that consumers expect companies to have a more meaningful reason for being and are making decisions about what to buy and where to work with an eye toward supporting those that share their values.

“Yet, companies are leaving equity and opportunity on the table as the majority of consumers do not believe companies today have a clear and strong purpose. It has never been more important for companies to not only articulate their purpose but to consistently demonstrate that purpose in how they operate, support issues and engage with all stakeholders.”

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