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


Pepsico’s Sustainability Commitments

PepsiCo Chairman and CEO Ramon Laguarta (Ramon) stated, “Climate action is core to our business as a global food and beverage leader and propels our PepsiCo Positive journey to deliver positive outcomes for the planet and people. Our ambitious climate goal will guide us on the steep but critical path forward – there is simply no other option but immediate and aggressive action.”..

Pepsico’s Operational Sustainability Initiatives

PepsiCo aimed to empower people and focus on social development across its operations, supply chain, and communities. Building on its support for the UN Guiding Principles on Business and Human rights, PepsiCo broadened its efforts to respect human rights across the company’s supply chain. Besides, the company pursued new initiatives to promote diversity in its global workforce, support the advancement of women, and spur social..

Pepsico’s New Pledges

In January 2021, the company announced that it planned to more than double its science-based climate goal, targeting a reduction of absolute GHG emissions across its value chain by more than 40% by 2030. In addition, the company pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement..

Pepsico’s Supply Chain Sustainability Initiatives

Though manufacturers and retailers called the shots in the food and beverage sector, even major companies could not simply command suppliers to cut resource use. They needed to persuade the suppliers to address environmental impacts, a process that took time. Despite the challenges, food and drink companies decided to take steps to engage with suppliers. It started with identifying what their environmental issues were and whereabouts in the supply chain they occurred..

Future Outlook

PepsiCo had incorporated carbon reduction and climate strategies in all focus areas across its value chain, accelerating its work on broadening the scale of sustainable agriculture and regenerative farming practice.


Exhibit I: PepsiCo’s products
Exhibit II: PepsiCo’s Performance Agenda, 2025
Exhibit III: CDP Supply Chain Report
Exhibit IV: Pepsico’s Supply Chain Code of Conduct (SCoC)

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