How Sustainability is Elevating PepsiCo's Procurement

PepsiCo's 2024 ESG Summary emphasises the company's commitment to long-term sustainability through its pep+ goals, which have a significant impact on procurement strategies.

By focusing on nutritional values and sustainability, the summary outlines PepsiCo's endeavours to embed transparency in their operational and procurement processes.

Enhancing sustainable procurement practices

Refinement of PepsiCo’s sustainability goals in May 2025 has aligned the company’s procurement operations with the latest scientific insights. This ensures that procurement processes contribute positively to both the environment and business objectives. The company has prioritised its pep+ pillars to guide procurement decisions:

• Positive agriculture
• Positive value chain
• Positive choices

These pillars direct sourcing and procurement activities by focusing on specific areas such as agriculture, water, packaging, climate and nutrition.

PepsiCo states it is committed to “innovating, scaling solutions and sharing results to continue driving meaningful changes.” PepsiCo's procurement strategy is not just a component of its sustainability initiatives; it is central to their corporate transformation efforts.

"pep+ is not a sustainability strategy. It's an ongoing transformation that powers our whole business, from innovation to production, marketing to distribution," says Ramon Laguarta, PepsiCo's Chairman and Chief Executive Officer.

Advancements in sustainable operations

The 2024 ESG summary details significant enhancements in PepsiCo's procurement and supply chain strategies, highlighting projects in regenerative agriculture and the achievement of nutritional milestones.

These efforts are reflected in the procurement of raw materials and packaging solutions.

"Our progress in 2024 shows that when we embed sustainability into the heart of our company, we help strengthen our communities and our planet and we also make our business more resilient," says Jim Andrew, PepsiCo's Executive Vice President and Chief Sustainability Officer.

The procurement approach has notably impacted key areas:

• Increased implementation of regenerative practices across 3.5 million acres, marking a step towards the 10-million-acre target by 2030.
• Sourcing 89% of electricity from renewable sources for company-owned operations.
• Reduction in Scope 1 and 2 greenhouse gas emissions by 18%.
• A 5% decrease in virgin plastic in key packaging markets, advancing packaging sustainability.

Collaborative efforts in sustainable procurement

PepsiCo acknowledges that its sustainability journey, particularly in procurement, demands continuous collaboration.

"The world needs more collaboration and engagement from business, governments and civil society to overcome obstacles and drive sustainable changes at scale," adds Andrew.

By engaging in collaborative efforts, the procurement sector within PepsiCo is poised to lead advancements in sustainable supply chains.

The emphasis on sustainable procurement shows in PepsiCo's approach to sourcing.

The company's work towards reducing reliance on virgin materials and incorporating recyclable components illustrates their commitment to setting a new standard in procurement practices.

By embedding these sustainable practices throughout its procurement and supply chain operations, PepsiCo not only works towards its ESG goals but also strengthens resilience against global supply challenges, setting a precedent for peers in various industries.