PepsiCo will double the scope of its climate goal, targeting a reduction of absolute greenhouse gas emissions (GHG) across its value chain by more than 40 per cent by 2030.

In addition, the company has pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement.

Specifically, PepsiCo plans to reduce absolute GHG emissions across its direct operations (Scope 1 and 2) by 75 per cent and its indirect value chain (Scope 3) by 40 per cent by 2030 (2015 baseline). This action is expected to result in the reduction of more than 26 million metric tons of GHG emissions.

"The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it," said PepsiCo chairman and CEO Ramon Laguarta. "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 action plan is centred around both mitigations, reducing GHG emissions to decarbonise its operations and supply chain, and resilience, reducing vulnerabilities to the impacts of climate change by continuing to incorporate climate risk into business continuity plans. These emissions targets align to the 1.5C pledge and has been approved by the Science Based Targets initiative.

Last year PepsiCo met its target to source 100 per cent renewable electricity in the US and set a new target to source 100 per cent renewable electricity across all of its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040.

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