PepsiCo anticipates falling short of sustainability goals

In its 2023 ESG summary overview, PepsiCo, the American multinational food, snack, and beverage corporation headquartered in Harrison, New York, revealed that it has projected to fall 2 per cent short of its ambitious target of designing 100 per cent of its packaging for recyclability, compostability, biodegradability, or reusability by 2025. The company attributes this shortfall to a unique set of challenges.

Despite the setback, PepsiCo has made some progress in reducing its environmental footprint. Compared to its 2020 baseline, the company reported a 1 per cent reduction in the use of virgin plastic from non-renewable sources per serving across its global beverages and convenience foods portfolio. However, the absolute tonnage of virgin plastic derived from non-renewable resources increased from -11 per cent in 2022 to -6 per cent in 2023.

As part of its goal to incorporate 50 per cent recycled content into its plastic packaging by 2030, PepsiCo utilised 10 per cent recycled content across its portfolio last year. The report highlights that more than 30 markets sold at least one PepsiCo product packaged in 100 per cent recycled PET (rPET), excluding caps and labels.

In addition, PepsiCo claims to have sold 10 per cent of its beverage servings in reusable models. This includes its SodaStream platform, fountain beverages delivered in reusable containers, returnable glass, and plastic bottles, and concentrates and powders sold to consumers. This progress keeps the company on track to reach its 20 per cent target for reusable servings by 2030.

PepsiCo's unwavering commitment to sustainability is evident in its continued progress towards its goals despite the hurdles it faces.

In April 2023, PepsiCo unveiled a robust sustainability initiative, pep+ Partners for Tomorrow, significantly ramping up its commitment to aluminium recycling. This platform introduces various programs to facilitate consumer recycling of aluminium, plastic, and glass containers and promotes reusable aluminium cups. PepsiCo aims to empower its customers with effective solutions to enhance sustainability efforts, ensuring easier and more accessible recycling practices.

Pepsico's ESG report states, "While achieving our packaging goals comes with a unique set of challenges to overcome, we continued to work toward our ambitions in 2023.”

"Given those challenges, we currently project that, by 2025, we will have designed 98 per cent of our packaging to be RCBR and that 92 per cent of our packaging will be overall RCBR—that is, both designed to be RCBR and RCBR based on the availability of end-of-life solutions."

"This current projection has us short of our 100 per cent goal, but we continue with our ambition to innovate, invest and partner to progress further."

PepsiCo made headlines by initiating the first North American rollout of a paper-based alternative to plastic rings for all beverage multipacks in 2023. Additionally, PepsiCo has set ambitious sustainability goals, aiming for 100 per cent of its packaging to be recyclable, compostable, biodegradable, or reusable (RCBR) by 2025. By 2023, they had achieved 89 per cent, but reaching their target within two years appears challenging given current progress.