PepsiCo has revised several of its environmental goals, delaying its net-zero emissions target by ten years and scaling back commitments related to packaging and emissions. Originally aiming for net-zero emissions by 2040, the company now plans to achieve this by 2050, citing external constraints such as underdeveloped recycling infrastructure, limited policy support, and internal factors including business growth.
According to Jim Andrew, Chief Sustainability Officer at PepsiCo, when the company established its climate ambitions in 2020, it expected more supportive policies and investments, many of which have not materialized. “The world was a very different place,” he stated, referencing slower-than-expected advancements in areas like electric vehicle infrastructure and grid modernization.
As part of the adjustments, PepsiCo has lowered its goal for using recycled plastic in primary packaging from 50% by 2030 to 40% by 2035. Simultaneously, it dropped its previous target of delivering 20% of all beverage servings through reusable packaging by 2030. The goal to design 100% of its packaging to be recyclable, compostable, biodegradable, or reusable by 2025 has been revised to 97% by 2030 in key markets.
In addition, the company is moving away from its earlier ambition to reduce virgin plastic from non-renewable sources by 20% by 2030. Instead, it now aims for a year-over-year reduction of 2% in absolute virgin plastic usage. The limitations of global regulations, such as China’s prohibition on food-grade recycled PET, have been cited as complicating factors.
On the emissions front, PepsiCo has scaled back its Scope 1 and 2 emissions target to a 50% reduction by 2030 (vs. 2022), down from a previously stated 75% (vs. 2015). For Scope 3 emissions, which stem from the broader supply chain, the company is now targeting a 42% reduction in energy and industrial emissions and a 30% reduction in forest, land, and agriculture emissions—both measured against 2022 baselines. Previously, it aimed for a 40% reduction across Scope 3 by 2030 using a 2015 baseline.
While many of these targets were pulled back, PepsiCo expanded its commitment to regenerative agriculture. It now plans to implement such practices across 10 million acres globally by 2030, up from its prior goal of 7 million acres. So far, about 3.5 million acres have been transitioned.
Despite the revisions, Ramon Laguarta, Chairman and CEO of PepsiCo, emphasized the company’s ongoing commitment to sustainability. In its inaugural climate transition plan, the company underscored its alignment with the Paris Agreement and intent to limit global warming to 1.5°C. Laguarta also acknowledged that climate change is already affecting agriculture, supply chains, and communities worldwide.
However, critics argue that these rollbacks undermine genuine environmental progress. Matt Littlejohn of Oceana criticized PepsiCo’s abandonment of reusable packaging goals, saying such decisions hurt ocean ecosystems and dismiss viable alternatives like refillable glass bottles.
Despite challenges like tariff-related supply chain costs—exacerbated by the production of soda concentrate in Ireland—PepsiCo continues to explore alternatives in aluminum, glass, and paper packaging. Its recent acquisition of Poppi, a Gen Z-favored prebiotic soda brand, also reflects its intent to grow sustainably amid complex trade dynamics (inside.beer, 18.3.2025).
