PepsiCo, Inc. introduced pep+ (pep Positive), a strategic end-to-end transformation with sustainability at the center of how the company will create growth and value by operating within planetary boundaries and inspiring positive change for the planet and people. pep+ will guide how PepsiCo will transform its business operations: from sourcing ingredients and making and selling its products in a more sustainable way, to leveraging its more than one billion connections with consumers each day to take sustainability mainstream and engage people to make choices that are better for themselves and the planet.

“pep+ is the future of our company – a fundamental transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center. It reflects a new business reality, where consumers are becoming more interested in the future of the planet and society,” said Ramon Laguarta, PepsiCo’s Chairman and CEO. “pep+ will change our brands and how they win in the market. For example, imagine Lay’s will start with a potato grown sustainably on a regenerative field, and then be cooked and delivered from a Net-Zero and Net Water Positive supply chain, sold in a bio-compostable bag, with the lowest sodium levels in the market. That’s a positive choice. That’s the best tasting, #1 potato chip of the future. That’s how pep+ will be better for people, for the planet, and for our business. Now, imagine the scale and impact when applied to all 23 of our billion-dollar brands.”

pep+ drives action and progress across three key pillars, bringing together a number of industry-leading 2030 goals under a comprehensive framework:

Positive Agriculture: PepsiCo is working to spread regenerative practices to restore the Earth across land equal to the company’s entire agricultural footprint (approximately 7 million acres), sustainably source key crops and ingredients, and improve the livelihoods of more than 250,000 people in its agricultural supply chain.

Positive Value Chain: PepsiCo will help build a circular and inclusive value chain through actions to:

• Achieve Net-Zero emissions by 2040;
• Become Net Water Positive by 2030; and
• Introduce more sustainable packaging into the value chain.

• PepsiCo announced new goals to cut virgin plastic per serving by 50 % across its global food & beverage portfolio by 2030¹, using 50 % recycled content in its plastic packaging and scaling the SodaStream business globally, an innovative platform that almost entirely eliminates the need for beverage packaging, among other levers.

• The company will also progress its more than $570 million diversity, equity and inclusion journey; and
• introduced a new global workforce volunteering program, One Smile at a Time, to encourage, support and empower each one of its 291,000 employees to make positive impacts in their local communities.

Positive Choices: PepsiCo continues to evolve its portfolio of food & beverage products so that they are better for the planet and people, including by:

• Incorporating more diverse ingredients in both new and existing food products that are better for the planet and/or deliver nutritional benefits, prioritizing chickpeas, plant-based proteins and whole grains;
• Expanding its position in the nuts & seeds category, where PepsiCo is already the global branded leader, including leadership positions in Mexico, China and several Western European markets;
• Accelerating its reduction of added sugars and sodium through the use of science-based targets across its portfolio and cooking its food offerings with healthier oils; and
• Continuing to scale new business models that require little or no single-use packaging, including its global SodaStream business – an icon of a Positive Choice and the largest sparkling water brand in the world by volume. SodaStream, already sold in more than 40 countries, is bringing PepsiCo flavor options like Pepsi Zero Sugar, Lipton and bubly to 23 markets, and its new SodaStream Professional platform will expand into functional beverages and reach more than 10 additional markets by the end of 2022, part of the brand’s effort to help consumers avoid more than 200 billion plastic bottles by 2030.

“pep+ directly links the future of our business with the future of our planet, for the benefit of both – from how we source ingredients and make and sell our products; to how we inspire consumers through our iconic brands to make better choices for themselves and the planet; to how we support communities and improve livelihoods throughout our supply chain,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “Take SodaStream, for example. By rapidly expanding the SodaStream ecosystem, we are meeting the needs of consumers at home, away from home, and on-the-go. At the same time, we are also offering consumers positive choices that use less plastic, create fewer emissions, and are better for people. pep+ is our roadmap to create the food and drinks people love in a way that helps build the sustainable future we all must have.”

The company’s brands across its food & beverage portfolio are accelerating their efforts to realize PepsiCo’s sustainable packaging vision and leveraging their influence to educate consumers on recycling and the planetary impacts of their choices.

11 European markets are moving key Pepsi-branded² products to 100 % rPET bottles by 2022. PepsiCo estimates that shifting to a 100 % rPET bottle will lower GHG emissions by approximately 30 % per bottle.

In the U.S., all Pepsi-branded products will be converted to 100 % rPET bottles by 2030, with Pepsi Zero Sugar beginning to be sold in 100 % rPET bottles by 2022. The brand is celebrating this important move to sustainable packaging with a new consumer-centric platform leveraging fall football and driving recycling awareness, education and advocacy, which are critical because rPET availability depends on consumers’ commitment to recycling.

PepsiCo has been investing in breakthrough food packaging technology and is now introducing a fully compostable bag made with plant-based materials. Starting with Off The Eaten Path, one of Frito-Lay’s plant-based brands, this industrially compostable packaging will be available to consumers in the U.S. at Whole Foods stores beginning this month. Notably, the company also announced today that it is willing to work with other companies to license the same technology at no cost given the importance of creating a circular food packaging system.

To learn more about the pep+ agenda, please visit www.pepsico.com/pepsicopositive.

¹Against 2020 baseline.
²Includes Pepsi, Pepsi MAX, Pepsi MAX Lime, Pepsi MAX without caffeine, Pepsi Light, Pepsi Light without caffeine.

Coca-Cola European Partners (CCEP) is set to accelerate the decarbonisation of its business by reducing absolute greenhouse gas (GHG) emissions across its entire value chain – including scope 1, 2 and 3 emissions – by 30 % by 2030 (vs 2019)^* and setting a path to become a Net Zero business by 2040, in alignment with a 1.5˚C pathway and the Paris Climate Agreement.

CCEP will reduce GHG emissions across all five areas of its value chain – ingredients, packaging, operations, transportation and refrigeration. Crucially, there is a significant focus on reducing scope 3 emissions via a commitment to support strategic suppliers to set their own science-based carbon reduction targets and use 100 % renewable electricity.

CCEP’s immediate action plan is supported by a three-year €250m investment which will provide targeted financial support to decarbonise its business. This includes sustainable packaging initiatives, such as the progression of its 100 % rPET roadmap and investing in the scaling of depolymerisation technology, which will help accelerate the delivery of its longer-term net-zero objectives.

The ambition is underpinned by the inclusion of a GHG emissions reduction target in CCEP’s long term management incentive plan (LTIP) – 15 % of the LTIP awarded in 2020 will be based on the extent to which CCEP reduces GHG emissions over the next three years.

It builds on work undertaken over the last decade to reduce GHG emissions across CCEP’s entire value chain by 30.5 % (vs 2010) as part of This is Forward, its joint sustainability plan with Coca-Cola in Western Europe. CCEP’s 2030 GHG reduction commitment has been approved by the Science-Based Targets initiative (SBTi) as being in line with a 1.5˚C reduction pathway as recommended by the Intergovernmental Panel on Climate Change (IPCC).

As part of its journey to Net Zero, CCEP will invest in projects which remove carbon from the atmosphere or verified carbon offset projects. However it will focus on reducing emissions as far as possible and will only offset where essential and where it can’t reduce emissions any further.

^{*This includes a commitment to reduce Scope 1 and 2 GHG emissions by 47 % and Scope 3 emissions 29 % by 2030 from a 2019 base year.}

A study released this week illustrates how the European soft drinks industry is rooted in the European economy and boosts progress throughout its value chain. The sector generates € 185 billion revenue – equivalent to 1.24 % of EU GDP, indirectly supports 1.7 million jobs and delivers almost € 30 billion in tax contributions to EU member states.

The industry supports a local value-chain of suppliers, distributors and retailers with a revenue that is 2.5 times greater than that which it receives itself. It contributes revenue, jobs and investment from the agricultural sector where it sources ingredients including fruit, berries and sugar beet; to the packaging and raw materials industries; through to the transport and distribution sectors and finally to the supermarkets, shops, bars and restaurants across the continent where its products are sold.

The study was undertaken by leading drinks industry analysts Global Data to mark UNESDA’s 60th anniversary and is based on 2016 data.

You can access the full report here: www.unesda.eu