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How sustainable is Lay's ?

Lay's & sustainability


Lay's
First milestones, should be better Click here for score rapport: 4 out of 17

Sustainability summary

Lay's has achieved the D label. According to us, Lay's is on its way towards sustainability, but more improvement is needed. In order to improve the score, we would love to see that Lay's, or brand owner PepsiCo, reports more concrete achievements and goals.

Brand owner: PepsiCo
Head office: Purchase, NY, USA
Sector: Chips crisps
Categories : 
Free Tags: PepsiCo

What's your sustainability news about Lay's?

Lay's sustainability score report

Last edited: 21 December 2015 by Berber
Last reviewed: 21 December 2015 by Mario

Questions about Climate Change/ Carbon Emissions

1 out of 6
1. Is there a policy for the brand (company) to minimize, reduce or compensate carbon emissions? PepsiCo (Lay's brand owner) has taken several policy measures to reduce carbon emissions, like increasing the efficiency of the fleet and improving the distribution and logistics functions. Source
2. Has the brand (company) disclosed the annual absolute carbon footprint of its 'own operations' (Scope 1 & 2) and has the brand already reduced or compensated 10% of these emissions in the last 5 years? PepsiCo increased its total climate footprint from 5,832,000 metric tons of CO2e in 2012 to 5,885,000 metric tons of CO2e in 2014, which represents an increase of around 0,9% (see link, page 59). Source
3. Is at least 10% of the brand (company) consumption of energy derived from renewable sources? PepsiCo reports on the use of renewable energy, but it is not clear about the total percentage share of its energy use renewable energy represents (see link, pages 58-61). Source
4. Is at least 25% of the brand (company) consumption of energy derived from renewable sources? See remark for carbon emissions policy question 3. Source
5. 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 doesn't give a specific target or time period for its absolute emissions (see link, page 58). Source
6. 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 implements measures to reduce greenhouse gas emissions in the production chain that is beyond own operations, but doesn't provide comprehensive enough information on results achieved (see link, page 61). Source

Questions about Environmental Policy

2 out of 7
1. Does the brand (company) use environmentally certified potatoes and/or corn for at least 5% of its volume? PepsiCo (brand owner) initiated several programs for sustainable farming (e.g. SFI). But, it remains unclear how this program relatse to independent environmental certification standards for potatoes such as EU organic, USDA or Rainforest Alliance for Lay's products (see link, page 64-68). Source
2. Does the brand (company) use organic or otherwise environmentally certified potatoes and/or corn for at least 50% of its volume? See remark for environmental policy question 1. Source
3. Does the brand (company) use environmentally certified potatoes and/or corn for its entire volume? See remark for environmental policy question 1. Source
4. Does the brand (company) use environmentally certified oil in its products and in the case of palm oil use, does the brand source sustainable palm oil for all its palm oil containing products only? PepsiCo aims to purchase 100% RSPO certified palm oil exclusively for their products by 2016. Until then PepsiCo makes sure to seek suppliers that operate 'responsibly and in a sustainable manner.' But, its unclear if all Frito-Lay chips are made without palm oil and whether the used oils are from environmentally friendly sources (see link, page 67-68). Source
5. Does the brand (company) purchase its other ingredients (such as salt, pepper and flavors) from environmentally certified sources? PepsiCo doesn't communicate any information about use of organic certified salt, peper and flavors for Lay's' products. Source
6. Does the brand (company) have clear objectives to minimize the environmental impact of its shipping packaging and carrier bags, by reducing, re-using, recycling and responsible sourcing of packaging materials, and does the brand annually report on these results? PepsiCo implements several measures to improve its packaging, such as reducing seal size and right‐ sizing a number of primary packaging for Frito‐Lay North America products. Aggregate results regarding its consumer packaging materials footprint are made public (see link, pages 69-73). Source
7. Does the brand (company) have clear objectives to minimize waste, by reducing, re-using and recycling, and does the brand annually report the results? PepsiCo has a policy to reduce the generation of waste in all forms, eliminating waste disposed of in landfills or dumps, and reusing or recycling waste for beneficial use, where feasible, whenever the generation of waste cannot be avoided. Aggregate results regarding its waste materials footprint are made public (see link, page 69-73). Source

Questions about Labour Conditions/ Fair Trade

1 out of 4
1. Does the brand (company) have a policy to provide for fair labor conditions for all own employees, those of its suppliers and for farmers in low wage countries, that include at least 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 and for its suppliers that includes all these standards (see link, page 10-14). 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? The Code of Conduct doesn't specifically mention these labor conditions. Source
3. Does the brand (company) annually report on the results of its labor conditions policy? PepsiCo doesn't publicly report outcomes or results of its policies to improve labor conditions. Source
4. Does the brand (company) have a published list of (corn and/or potatoes and oil) suppliers and factories that have collectively contributed to more than 90% of the purchase volume? PepsiCo doesn't provide a published list of its suppliers on its website. Source