IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i4p2171-d749126.html
   My bibliography  Save this article

Carbon Management behind the Ambitious Pledge of Net Zero Carbon Emission—A Case Study of PepsiCo

Author

Listed:
  • Duan Qian

    (School of Earth and Environmental Sciences, The University of Queensland, St Lucia, QLD 4072, Australia)

  • Paul Dargusch

    (School of Earth and Environmental Sciences, The University of Queensland, St Lucia, QLD 4072, Australia)

  • Genia Hill

    (School of Earth and Environmental Sciences, The University of Queensland, St Lucia, QLD 4072, Australia)

Abstract

Since the industrial revolution, greenhouse gas emissions caused by human activities have posed an unprecedented global challenge to social development and impact on the natural environment. With the growing awareness of environmental protection and the promotion of international cooperation mechanisms, there is a global consensus to control greenhouse gases. In order to avoid irreversible and catastrophic climate change, there is an urgent need for more companies to take action and make credible commitments to combat climate change and carbon reduction goals aligned with the Paris Agreement and the UN Sustainable Development Goals. As one of the largest and most influential international food and beverage companies with a range of well-known brands, PepsiCo has made ambitious commitments to science-based climate goals, including reducing GHG emissions from its direct operations by 75% against the 2015 baseline and reducing GHG emissions across its indirect value chain by 40% by 2030, as well as setting an ambitious new target to achieve net-zero emissions by 2040. PepsiCo has incorporated carbon reduction and climate strategies in all focus areas across its value chain, accelerating its work on broadening the scale of sustainable agriculture and regenerative farming practice; reducing plastic use and increasing the use of recycle and renewable materials as well as adopting low-carbon alternatives; developing efficient and alternative solutions in transportation and distribution; shifting to renewable electricity and fuels in manufacturing and fleet. Up to 2021, PepsiCo has achieved a 23% of the absolute emissions target of reducing Scope 1 and Scope 2 emissions and 7.9% of the absolute emissions target of reducing Scope 3 emissions. This research aims to evaluate the performance of PepsiCo on achieving their carbon reduction targets based on the analysis of the reported carbon estimates and reduction strategies, and also provides future strategic suggestions and guidance by adopting case study analysis. Although PepsiCo has reported great progress in reducing carbon emissions, further efforts are needed to achieve these goals.

Suggested Citation

  • Duan Qian & Paul Dargusch & Genia Hill, 2022. "Carbon Management behind the Ambitious Pledge of Net Zero Carbon Emission—A Case Study of PepsiCo," Sustainability, MDPI, vol. 14(4), pages 1-12, February.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2171-:d:749126
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/4/2171/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/4/2171/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Samira Demaria & Sandra Rigot, 2021. "Corporate environmental reporting: Are French firms compliant with the Task Force on Climate Financial Disclosures' recommendations?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 721-738, January.
    2. Joeri Rogelj & Oliver Geden & Annette Cowie & Andy Reisinger, 2021. "Net-zero emissions targets are vague: three ways to fix," Nature, Nature, vol. 591(7850), pages 365-368, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hemmings, Peter & Mulheron, Michael & Murphy, Richard J. & Prescott, Matt, 2023. "Investigating the robustness of UK airport net zero plans," Journal of Air Transport Management, Elsevier, vol. 113(C).
    2. Henn, Daniel & Humphreys, James & Duffy, Colm & Gibbons, James & Styles, David, 2023. "Improved representation of cattle herd dynamics for bio-physical modelling of pathways to a climate neutral land sector," Agricultural Systems, Elsevier, vol. 212(C).
    3. Wang, Juan & Zheng, Junjun & Yu, Liukai & Goh, Mark & Tang, Yunying & Huang, Yongchao, 2023. "Distributed Reputation-Distance iterative auction system for Peer-To-Peer power trading," Applied Energy, Elsevier, vol. 345(C).
    4. Wang, Mengmeng & Liu, Kang & Dutta, Shanta & Alessi, Daniel S. & Rinklebe, Jörg & Ok, Yong Sik & Tsang, Daniel C.W., 2022. "Recycling of lithium iron phosphate batteries: Status, technologies, challenges, and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 163(C).
    5. Paola Vola & Lorenzo Gelmini, 2022. "Climate change skills for the new CFOs. A preliminary analysis on TCFD by Italian listed companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 189-209.
    6. Udeke Huiskamp & Bauke ten Brinke & Gert Jan Kramer, 2022. "The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1763-1775, May.
    7. Iker Larrea & Jose Manuel Correa & Rafaella López & Lidia Giménez & Kepa Solaun, 2022. "A Multicriteria Methodology to Evaluate Climate Neutrality Claims—A Case Study with Spanish Firms," Sustainability, MDPI, vol. 14(7), pages 1-13, April.
    8. Jeanne, Amar & Demaria, Samira & Rigot, Sandra, 2023. "What are the drivers of corporates' climate transparency? Evidence from the S&P 1200 index," Ecological Economics, Elsevier, vol. 213(C).
    9. Wu, F. & Wang, S.Y. & Zhou, P., 2023. "Marginal abatement cost of carbon dioxide emissions: The role of abatement options," European Journal of Operational Research, Elsevier, vol. 310(2), pages 891-901.
    10. Julia Bettina Leicht & Maximilian Leicht, 2022. "Changes in the climate-related disclosure of German listed companies during the first years of the new reporting standard," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    11. Ruiqin Mou & Tao Ma, 2023. "A Study on the Quality and Determinants of Climate Information Disclosure of A-Share-Listed Banks," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    12. Umer Zaman, 2023. "Seizing Momentum on Climate Action: Nexus between Net-Zero Commitment Concern, Destination Competitiveness, Influencer Marketing, and Regenerative Tourism Intention," Sustainability, MDPI, vol. 15(6), pages 1-19, March.
    13. Xu, Jiuping & Tang, Min & Liu, Tingting & Fan, Lurong, 2024. "Technological paradigm-based development strategy towards natural gas hydrate technology," Energy, Elsevier, vol. 289(C).
    14. Jane Loveday & Gregory M. Morrison & David A. Martin, 2022. "Identifying Knowledge and Process Gaps from a Systematic Literature Review of Net-Zero Definitions," Sustainability, MDPI, vol. 14(5), pages 1-37, March.
    15. Comello, Stephen & Reichelstein, Julia & Reichelstein, Stefan, 2023. "Corporate carbon reporting: Improving transparency and accountability," ZEW Discussion Papers 23-026, ZEW - Leibniz Centre for European Economic Research.
    16. David Coen & Kyle Herman & Tom Pegram, 2022. "Are corporate climate efforts genuine? An empirical analysis of the climate ‘talk–walk’ hypothesis," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3040-3059, November.
    17. Yang Liu & Ling Tang, 2024. "Environmental Penalties, Internal and External Governance, and Green Innovation: Does the Deterrence Effect Work?," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    18. Sonja Simon & Mengzhu Xiao & Carina Harpprecht & Shima Sasanpour & Hedda Gardian & Thomas Pregger, 2022. "A Pathway for the German Energy Sector Compatible with a 1.5 °C Carbon Budget," Sustainability, MDPI, vol. 14(2), pages 1-26, January.
    19. Callan Harker & Maureen Hassall & Paul Lant & Nikodem Rybak & Paul Dargusch, 2022. "What Can Machine Learning Teach Us about Australian Climate Risk Disclosures?," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    20. Salvatore Principale & Simone Pizzi, 2023. "The Determinants of TCFD Reporting: A Focus on the Italian Context," Administrative Sciences, MDPI, vol. 13(2), pages 1-12, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2171-:d:749126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.