Setting a net-zero goal is just the start of a climate strategy. The pressure is now on to deliver substantive progress. For many companies, the vast bulk of greenhouse gas (GHG) emissions lie outside the walls of their businesses in their supply chain – called “Scope 3” emissions. Having visibility to, quantifying, and ultimately managing these emissions is difficult. While these impacts lie outside of a company’s direct control, stakeholder expectations, reporting frameworks and business demands require large corporations to activate their partners and deliver progress.
Inside PepsiCo’s Effort to Reach Net Zero Emissions
A collaborative relationship with supply-chain partners is the foundation for success.
September 07, 2023
Andriy Onufriyenko/Getty Images
Summary.
For corporations like PepsiCo, most greenhouse gas (GHG) emissions originate in the supply chain, which is challenging to manage. PepsiCo believes three elements — expectations, economics, and enablement — are essential for effective supply-chain engagement and action. Clear expectations guide supplier partners, while understanding the economic realities aids in creating profitable GHG reductions. Lastly, enabling suppliers through support and resources can facilitate a smoother transition towards shared net-zero goals. PepsiCo’s plan reflects these principles, forging a path toward a sustainable and resilient future.