Part of a Climate Innovation Network series profiling the firms making real climate progress.
The global push towards decarbonization was first characterized by ambitious net zero targets that left many people scratching their heads as to how they would be achieved. However, a new, second stage of decarbonization – characterized by transformative changes across business operations and industries – has highlighted firms’ ability to reach these once-inconceivable targets. Here, we’ve profiled an organization that expects one of its manufacturing plants to be net zero by 2025.
Who:
PepsiCo, a multinational food and beverage corporation know for brands such as Pepsi, Gatorade and Quaker Oats.
What particular challenges do they face?
In 2022, PepsiCo’s GHG emissions amounted to 61 million metric tonnes; the food and beverage giant has set a firm-wide goal of reaching net zero by 2040. Of its 2022 emissions, 7% accounted for Scope 1 and 2 emissions. To reach its net zero goal, PepsiCo must address these emissions to begin decarbonizing its operations.
What did they do?
In May 2024, PepsiCo announced that its Northern Spain plant will be net zero by next year (2025) – the site has already achieved a 75% reduction in GHG emissions.
How did they do it?
To achieve its goal, PepsiCo has invested:
- €27 million over the past five years to decarbonize the operation. This contributed towards new packaging equipment that groups cans using cardboard, closer warehousing to avoid transportation emissions and improved efficiencies in the manufacturing process.
- €5 million in an electrification project. The plant has been using renewable energy since 2015, and the natural gas used for heating will be replaced by electric energy to reach the goal of 100% electrification of the facility following a two-year pilot programme. PepsiCo estimates that this will eliminate almost 2,000 tonnes of CO2 annually.
It is unclear the role, if any, carbon offsetting will play in making this site net zero.
Where you can find out more:
To read more about the initiative, see PepsiCo’s climate action strategy, and for information on how AI can help to decarbonize business operations, read Verdantix Market Insight: Nine Ways AI Will Drive Decarbonization.
