Abstract

The case describes PepsiCo’s sustainability related initiatives that encompassed its operations, products, and supply chain partners. PepsiCo’s sustainability strategy targeted every stage of the value chain. The case first touches upon the early initiative taken by the company in 2006 through the establishment of its ‘Performance with Purpose’ program. It also mentions the company’s ambitious commitments to science-based climate goals made in 2016. The case then describes the initiatives including PepsiCo’s Sustainable Farming Program and its Water Strategy, Renewable Electricity, and Recyclable Packaging initiatives. The case then focuses on PepsiCo’s renewed pledge and its recent initiatives Pep Positive, “Sustainable from the Start” program for Supply Chain Partners, and the PepsiCo Supplier Code of Conduct. Amid these developments, it remained to be seen whether PepsiCo had put in place the key components essential to build a successful roadmap to achieve its climate change targets.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Recognize the need for a long-term vision for sustainability initiatives
• Examine how FMCG companies integrate sustainability into their business practices
• Design a road map for a large scale sustainability initiative in an FMCG company
• Recognize the challenges FMCG companies face in mobilizing suppliers on climate change action

Keywords

Sustainable Business Practices; Sustainability; Sustainable Supply Chain; Supplier Management; Climate Change; ESG; Supplier Code of Conduct; Sustainable Packaging; Sustainable Manufacturing; Supplier Partnerships; UN Sustainable Development Goals