PepsiCo`s Sustainability Strategy to Build a Positive Value Chain
Case Code: BSTR656 Case Length: 14 Pages Period: 2016-2022 Pub Date: 2023 Teaching Note: Available |
Price: Rs.400 Organization : PepsiCo Inc. Industry : Food & Beverage Countries : United States Themes: Sustainability, Socially-responsible, Business Practices,Supply Chain Management,Environmental Sustainability |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Pepsico’s Sustainability Commitments
PepsiCo Chairman and CEO Ramon Laguarta (Ramon) stated, “Climate action is core to our business as a global food and beverage leader and propels our PepsiCo Positive journey to deliver positive outcomes for the planet and people. Our ambitious climate goal will guide us on the steep but critical path forward – there is simply no other option but immediate and aggressive action.”..
Pepsico’s Operational Sustainability Initiatives
PepsiCo aimed to empower people and focus on social development across its operations, supply chain, and communities. Building on its support for the UN Guiding Principles on Business and Human rights, PepsiCo broadened its efforts to respect human rights across the company’s supply chain. Besides, the company pursued new initiatives to promote diversity in its global workforce, support the advancement of women, and spur social..
Pepsico’s New Pledges
In January 2021, the company announced that it planned to more than double its science-based climate goal, targeting a reduction of absolute GHG emissions across its value chain by more than 40% by 2030. In addition, the company pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement..
Pepsico’s Supply Chain Sustainability Initiatives
Though manufacturers and retailers called the shots in the food and beverage sector, even major companies could not simply command suppliers to cut resource use. They needed to persuade the suppliers to address environmental impacts, a process that took time. Despite the challenges, food and drink companies decided to take steps to engage with suppliers. It started with identifying what their environmental issues were and whereabouts in the supply chain they occurred..
Future Outlook
PepsiCo had incorporated carbon reduction and climate strategies in all focus areas across its value chain, accelerating its work on broadening the scale of sustainable agriculture and regenerative farming practice.
Exhibits
Exhibit I: PepsiCo’s products
Exhibit II: PepsiCo’s Performance Agenda, 2025
Exhibit III:
CDP Supply Chain Report
Exhibit IV: Pepsico’s Supply Chain Code of Conduct (SCoC)
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