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PepsiCo's sustainable supply chain goals

PepsiCo has announced details of its global sustainability plans – and the supply chain will be playing a key role. Here we take a look at five o...

Lucy Dixon
|Oct 18|magazine5 min read

PepsiCo has announced details of its global sustainability plans – and the supply chain will be playing a key role.

Here we take a look at five of the supply chain and procurement goals:

  • PepsiCo will continue to work on the efficiency of its manufacturing and distribution operations while also broadly extending its environmental stewardship efforts across its global value chain.
  • It will sustainably source both direct and major non-direct agricultural raw materials by 2020 and 2025, respectively.
  • Building on its earlier goal, PepsiCo also intends to invest in the necessary measures to sustainably source 100 percent of the palm oil and cane sugar it purchases by 2020.
  • Building on its support for the United Nations Guiding Principles on Business and Human rights, PepsiCo is significantly broadening its focus on respecting human rights across the company's supply chain.
  • It will extend the principles of its Supplier Code of Conduct to all franchisees and joint venture partners. These principles already apply to PepsiCo's direct suppliers.

PepsiCo Chairman and CEO Indra Nooyi said:

"To succeed in today's volatile and changing world, corporations must do three things exceedingly well: focus on delivering strong financial performance, do it in a way that is sustainable over time and be responsive to the needs of society. The first ten years of PepsiCo's Performance with Purpose journey have demonstrated what is possible when a company does well by also doing good. We have created significant shareholder value, while taking important steps to address environmental, health and social priorities all around the world.

"PepsiCo's journey is far from complete, and our new goals are designed to build on our progress and broaden our efforts. We have mapped our plans against the United Nations Sustainable Development Goals, and we believe the steps we are taking will help lift PepsiCo to even greater heights in the years ahead. Companies like PepsiCo have a tremendous opportunity – as well as a responsibility – to not only make a profit, but to do so in a way that makes a difference in the world.”