For corporations like PepsiCo, most greenhouse gas (GHG) emissions originate in the supply chain, which is challenging to manage. PepsiCo believes three elements — expectations, economics, and enablement — are essential for effective supply-chain engagement and action. Clear expectations guide supplier partners, while understanding the economic realities aids in creating profitable GHG reductions. Lastly, enabling suppliers through support and resources can facilitate a smoother transition towards shared net-zero goals. PepsiCo’s plan reflects these principles, forging a path toward a sustainable and resilient future.
In our value chain, with more than 100,000 suppliers of varying sizes and capabilities, a one-size-fits-all approach will not achieve the needed impact towards net zero.
Convert PepsiCo’s portion of electrical load to renewable electricity, where available, by the end of 2023. This is a big shift for some of our suppliers’ operations. In some cases, this is not just about investment but also about making changes in the way they operate. More than ever, supplier relationships need to move from transactional to partnership. That’s where companies can use their scale and knowledge to help suppliers’ transition – acting as partners and providing support along the way.
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