PepsiCo`s Sustainability Strategy to Build a Positive Value Chain

PepsiCo`s Sustainability Strategy to Build a Positive Value Chain
Case Code: BSTR656
Case Length: 14 Pages
Period: 2016-2022
Pub Date: 2023
Teaching Note: Available
Price: Rs.400
Organization : PepsiCo Inc.
Industry : Food & Beverage
Countries : United States
Themes: Sustainability, Socially-responsible, Business Practices,Supply Chain Management,Environmental Sustainability
PepsiCo`s Sustainability Strategy to Build a Positive Value Chain
Abstract Case Intro 1 Case Intro 2 Excerpts


The case describes PepsiCo’s sustainability related initiatives that encompassed its operations, products, and supply chain partners. PepsiCo’s sustainability strategy targeted every stage of the value chain.

The case first touches upon the early initiative taken by the company in 2006 through the establishment of its ‘Performance with Purpose’ program. It also mentions the company’s ambitious commitments to science-based climate goals made in 2016. The case then describes the initiatives including PepsiCo’s Sustainable Farming Program and its Water Strategy, Renewable Electricity, and Recyclable Packaging initiatives. The case then focuses on PepsiCo’s renewed pledge and its recent initiatives Pep Positive, “Sustainable from the Start” program for Supply Chain Partners, and the PepsiCo Supplier Code of Conduct. Amid these developments, it remained to be seen whether PepsiCo had put in place the key components essential to build a successful roadmap to achieve its climate change targets.


The case is structured to achieve the following teaching objectives:

  • Recognize the need for a long-term vision for sustainability initiatives.
  • Examine how FMCG companies integrate sustainability into their business practices.
  • Design a road map for a large scale sustainability initiative in an FMCG company.
  • Recognize the challenges FMCG companies face in mobilizing suppliers on climate change action.



Sustainable Business Practices; Sustainability; Sustainable Supply Chain; Supplier Management; Climate Change; ESG; Supplier Code of Conduct; Sustainable Packaging; Sustainable Manufacturing; Supplier Partnerships; UN Sustainable Development Goals

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