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How sustainable is Pepsi ?

Pepsi & sustainability


Pepsi

7 out of 23

Sustainability summary

Based on our sustainability criteria, Pepsi has achieved the D-label. Pepsi scores poorly because the brand only shares a few concrete achievements on sustainability in its report. The company is working on using more recycled plastic for the bottles, programs for sustainable farming and using renewable energy in its production plants. We would love to see that Pepsi would become more concrete on the accomplishments and goals of such efforts.

Brand owner: PepsiCo
Head office: Purchase, United States
Sector: Soda
Categories : 
Free Tags: Cola

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Pepsi sustainability score report

Last edited: 18 June 2012 by Mario
Last reviewed: 12 June 2012 by Imke

Questions about Climate Change/ Carbon Emissions

4 out of 7
1. Is there a policy for the brand (company) to minimize, reduce or compensate carbon emissions? PepsiCo (brand owner of Pepsi) has taken several policy measures to reduce carbon emissions, like using renewable energy in its production plants and improving efficiency of its machines and production methods. Source
2. Has the brand (company) disclosed the annual absolute carbon footprint of its 'own operations' (Scope 1 & 2)? PepsiCo's carbon footprint for 2010 was 6.048.000 metric tons CO2 (see "Environmental Sustainability") and includes the Legacies Food and Beverages, M&A. Source
3. Has the brand (company) already reduced or compensated its absolute 'own operations' (scope 1 & 2) carbon footprint by at least 10% in the last 5 years? PepsiCo's carbon footprint increased by over 25% from 4.490.000 metric tons CO2 in 2009 to 6.048.000 metric tons of CO2 in 2010 (see "Environmental Sustainability"). Source
4. Has the brand (company) set a target to reduce its absolute ‘own operations’ (scope 1 & 2) carbon footprint by at least 20% within the next 5 years? PepsiCo states that it plans to reduce its own operations carbon footprint, but it does not give a specific target or time period. Source
5. Does the brand (company) also have a policy to reduce/compensate carbon emissions generated from the product supply chain that is beyond own operations (Scope 3)? PepsiCo initiated several promising programs for sustainable farming, in the UK and other countries, which include working with farmers to reduce direct and indirect greenhouse gas emissions, by, for example, using low carbon fertilizer (see p. 2-4). Source
6. Does the brand (company) use energy derived from renewable sources? PepsiCo states that its total renewable energy consumption for India operations is 20% and that it uses wind and solar energy from its manufacturing plants. However, it is not clear what percentage on total this represents. Source
7. Is at least 20% of the brand's (company's) total consumption of energy derived from renewable sources? See remark for carbon emissions policy question 6. Source

Questions about Environmental Policy

3 out of 11
1. Does the brand have the objective to only source sustainable sugarbeet/sugarcane or maize (for fructose syrup) for all its sugar containing products by 2020 at the latest, and does the brand already purchase sugar from environmentally certified sources? PepsiCo initiated several promising programs for sustainable farming, in the UK and other countries. However, it is unclear what the (expected) performances are, e.g. which part of the purchasing volumes for which commodities are covered, and how the programs relate to independent certifications and sustainable farming standards. Source
2. Does the brand use environmentally certified sugar for its products for at least 50% of its volume? See remark for environmental policy question 1. Source
3. Does the brand use environmentally certified raw materials (such as fruit, coffee or tea) for its products? See remark for environmental policy question 1. Source
4. Has the brand (company) reduced the weight of its packaging and does the brand have targets to further reduce this? PepsiCo plans to reduce the weight of its packaging by 350 million pounds and has already made reductions on some product packaging. Source
5. Does the brand use recycled or renewable plastics in its newly produced plastic bottles? PepsiCo (brandowner) mentions that for some bottles (though not Pepsi) it uses a certain percentage of recycled PET, but does not communicate what percentage on total this represents. Source
6. Does the brand uses at least 10% of recycled or renewable plastics in its newly produced plastic bottles? See remark for environmental policy question 5. Source
7. Does the brand uses at least 25% of recycled or renewable plastics in its newly produced plastic bottles? See remark for environmental policy question 5. Source
8. Does the brand use at least 50% of recycled or renewable plastics in its newly produced plastic bottles? See remark for environmental policy question 5. Source
9. Does the brand (company) publish the water footprint of its 'own operations'? PepsiCo publishes its global water footprint (see page 5). Source
10. Has the brand (company) reduced its water use per liter of produced beverage by 10% in the past 5 years? Pepsi has reduced its beverage water use intensity by 16% between 2006 and 2009 (see p. 6), but does not specify this for soda or Pepsi. Source
11. Has the brand achieved an average level of water use below 2,5 litres per litre of soda produced? Pepsi does not communicate its average level of water use per litre of soda on its website. Source

Questions about Labour Conditions/ Fair Trade

0 out of 5
1. Does the brand (company) have a policy to provide for fair labor conditions that applies to ALL own employees and those of its suppliers (including bottling companies) in low wage countries, which includes the following standards: No forced or slave labor, no child labor, no discrimination of any kind and a safe and hygienic workplace? PepsiCo has a Code of Conduct for its own employees (see link) and for its suppliers (see link in Labor Conditions question 2) that includes all these standards. However, PepsiCo only states that it "expects its suppliers to adhere", suppliers are not obliged. Source
2. Does the brand (company) have a policy to provide for fair labor conditions in low wage countries: 1) a formal employment relationship; 2) a maximum working week of 60 hours including paid overtime; 3) a living wage; and 4) to form and join labor unions and bargain collectively; and in those situations where these rights are restricted under law, to develop parallel means? See remark for labour conditions policy question 1. Source
3. Does the brand (company) purchase sugar from sources (plantations) that are certified to e.g. have no child labor and no forced labor, and provide a better living standard for the farmers and workers who produce the sugar? While PepsiCo (brandowner) says that its supplier code of conduct also counts for the suppliers of these suppliers, it can be assumed that it also counts for plantations. However, this is not specifically mentioned and no certification is mentioned either. The agricultural policy of PepsiCo (see link) also does not mention any certifications. Source
4. Does the brand (company) purchase other ingredients (such as fruit, coffee beans, tea) from sources (plantations) that are certified to e.g. have no child labor and no forced labor, and provide a better living standard for the farmers and workers who produce these additional ingredients? See remark for labour conditions policy question 3. Source
5. Does the brand (company) maintain a published list of suppliers (sugar and fruit) and factories (including bottling companies), that have collectively contributed to more than 90% of the purchase volume? PepsiCo does not provide a significant list of direct suppliers on its website. Source