PepsiCo May Fail to Meet Sustainability Goals, ESG Report Reveals

In its 2023 ESG summary, PepsiCo estimates that it will miss its goal of designing 100% of its packaging to be recyclable, compostable, biodegradable or reusable by 2025 by 2% – attributing its doubts to “a unique set of challenges.”

Compared to a 2020 baseline, PepsiCo says it has reduced virgin plastic from non-renewable sources by 1% per serving across its global portfolio of convenient foods and beverages. Its absolute tonnage of virgin plastic from non-renewable resources would have fallen from -11% in 2022 to -6% in 2023.

In line with its goal to implement 50% recycled content in its plastic packaging by 2030, the company reportedly used 10% recycled content in its portfolio last year. More than 30 markets sold at least one PepsiCo product packaged in 100% rPET (excluding caps and labels), the report said.

PepsiCo says it has sold 10% of its beverage servings in reusable models, including its SodaStream platform, fountain drinks delivered in reusable containers, returnable glass and plastic bottles, and concentrates and powders sold to consumers . This keeps the company on track to meet its goal of 20% reused portions by 2030.

It is also believed to have become the first beverage company to announce the North American rollout of a paper replacement for plastic rings on all beverage multi-packs in 2023.

In another sustainability goal, PepsiCo aspires to design 100% of its packaging to be recyclable, compostable, biodegradable or reusable (RCBR) by 2025. By 2023, this percentage had reached 89% – and, at current pace, PepsiCo estimates that its objective will not be reached in two years.

“While achieving our packaging goals comes with a unique set of challenges, we have continued to work to realize our ambitions in 2023,” the report said. “Given these challenges, we currently project that by 2025 we will have designed 98% of our packaging to be RCBR and that 92% of our packaging will be RCBR overall, i.e. both designed to be RCBR and RCBR depending on availability. end-of-life solutions.

“Current projections leave us far from our 100% target, but we continue our ambition to innovate, invest and build partnerships to progress further. »

The news comes after Unilever downgraded its initial target of halving virgin plastic consumption by 2025; instead, it now plans to reduce its consumption by a third by 2026. Critics have accused the company of prioritizing financial performance over sustainable progress, with fears that 100,000 tonnes of fresh plastic can now be produced each year. However, others felt the decision was realistic.

In response, we spoke to Pablo Costa, Global Head of Packaging at Unilever. He told us the company is “doubling down rather than watering down” its efforts to reduce plastic pollution and is “more determined than ever” to find alternative solutions.

Similarly, Colgate-Palmolive believes that “industry-wide challenges” around flexible packaging will mean it will fail to meet its recyclability, reuse and compostability targets across its range packaging by 2025. Chairman and CEO Noel Wallace said that “while we have set clear targets in areas such as using less plastic and more recycled plastic and the need to make all our recyclable, reusable or compostable packaging. We also need to work with others to make systemic changes that no single company can achieve alone.

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