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Fostering Sustainability in the Supply Chain: Lessons from PepsiCo’s Net-Zero Journey

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Setting a net-zero goal is just the beginning of a company’s climate strategy, with the real challenge lying in reducing greenhouse gas emissions in their supply chain, known as “Scope 3” emissions. While these emissions are beyond a company’s direct control, stakeholder expectations and reporting frameworks require large corporations to engage their partners in sustainability efforts. PepsiCo, with its roots in agriculture, recognises the impact of climate change on crops and farmers and has embarked on a net-zero journey. They incentivize emissions reductions for top executives and are working on quantifying Scope 3 emissions. The success of such efforts depends on three key elements: setting clear expectations, understanding the economics of emissions reduction, and enabling partners with guidance, resources, and investments. Ultimately, building a sustainable value chain is vital for meeting sustainability goals, enhancing resilience, and improving business performance.

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