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How sustainable is Pepsi ?

Pepsi & sustainability


Pepsi
First milestones, should be better Click here for score rapport: 4 out of 24

Sustainability summary

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, New York, United States
Sector: Soda
Categories : Cola
Free Tags: PepsiCo

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Pepsi sustainability score report

Last edited: 29 September 2018 by Daantje
Last reviewed: 29 September 2018 by Mario

Questions about Climate Change/ Carbon Emissions

2 out of 6
1. Is there a policy for the brand (company) to minimize, reduce or compensate carbon emissions? Pepsico (brand owner of Pepsi) implements several measures to reduce greenhouse gas emissions, such as the implementation of energy efficiency measures (see link, page 19). Source
2. Has the brand (company) already reduced or compensated the carbon footprint of its own operations by at least 10% in the last 5 years? PepsiCo decreased its total climate footprint from 5,855,000 metric tons of CO2e in 2014 to 5,448,468 metric tons of CO2e in 2017, which represents a decrease of around 7% (see link, page 59, and link at Climate Question 3). 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. 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’ carbon emissions by at least 20% within the next 5 years? PepsiCo has set a target to reduce 20% of its greenhouse gas emissions by 2030 compared to base year 2018. Source
6. Does the brand (company) have a policy and reports on tangible results to reduce / compensate carbon emissions generated from the production chain (Scope 3)? PepsiCo mentions the target to reduce carbon emissions in the supply chain. In addition PepsiCo publishes concrete outcomes, which include greenhouse gas emission measurements (see link, pages 15-16, 61-68). Source

Questions about Environmental Policy

1 out of 12
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 mentions the target to source all cane sugar sustainably but does not refer to a time frame. Sustainability information should be easily accessible for consumers to make responsible choices (see link, page 20). Source
2. Does the brand use environmentally certified sugar for its products for at least 50% of its volume? PepsiCo reports that 34% of cane sugar where sourced sustainably by 2017. Respective environmental standards are not specified however (see link, page 20). Source
3. Does the brand use environmentally certified raw materials (such as fruit, coffee or tea) for its products? PepsiCo mentions the promotion of more sustainable farming worldwide through its Sustainable Agriculture Policy, but does not specify this for raw materials relevant for Pepsi, such as coffee. Source
4. Does the brand use environmentally certified raw materials (including sugar) for its products only? See remark for environmental policy question 1 & 3. Source
5. Does the brand (company) publish the water footprint of its 'own operations'? PepsiCo publishes the water footprint of its 'own operations', which was at around 93434 megatliters per year in 2017 (see link, pages 7-8). Source
6. Has the brand (company) reduced its water use per litre of produced beverage by 10% in the past 5 years? PepsiCo mentions a reduction of 5.6% since base year 2015 (see link, page 47). Source
7. Has the brand achieved an average level of water use below 2,5 litres per litre of soda produced? PepsiCo does not communicate clear enough information about its consumption per unit of product. Source
8. Does the brand have clear objectives to minimize the environmental impact of packaging, by reducing, re-using and recycling, and does the brand annually report on these results? PepsiCo implements several measures related to more sustainable packaging, but does not publish the annual packaging volumes/weights per material type (see link, page 19, 22). Source
9. Does the brand uses at least 10% of recycled plastics in its newly produced plastic bottles? PepsiCo mentions a use of 9% of recycled PET in the US and 16% in Europe in 2017, but does not specify what percentage this is of its plastic use worldwide. Sustainability information should be easily accessible for consumers to make responsible choices. Source
10. Does the brand use at least 50% of recycled plastics in its newly produced plastic bottles? See remark for environmental policy question 9. Source
11. Does the brand only use recycled plastics in its newly produced plastic bottles? See remark for environmental policy question 9. Source
12. 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 implements several measures to reduce its waste material footprint. But, concrete aggregate results regarding its waste materials footprint are not made public (see link, page 3). Source

Questions about Labour Conditions/ Fair Trade

1 out of 6
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? All standards are mentioned in PepsiCo's Code of Conduct (see link, pages 10-14, and link for next question). 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? 1. Not specified; 2. Yes, covered; 3. No, only compliance with all applicable local and national wages; 4. This right shall be respected, but no specification for situations where these rights are restricted under law. 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? PepsiCo does not communicate clear enough, whether sugar is sourced from an socially certified sources (see link, page 20). 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? PepsiCo mentions the promotion of more sustainable farming worldwide through its Sustainable Agriculture Policy, but does not specify this for raw materials relevant for Pepsi, such as coffee. Source
5. Are all purchased ingredients (including sugar) 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 labor conditions policy question 3 & 4. Source
6. 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. Source