PepsiCo plans to spread regenerative farming practices across seven million acres, equal to the same size of land it uses to grow crops for the F&B giant’s products by 2030. 

This will see more initiatives like PepsiCo’s Walkers crisps using “circular potatoes” technology to turn the peelings into low-carbon, nutrient-rich fertilizer, coming online. The use of this fertilizer is expected to reduce Walkers’ carbon emissions from growing potatoes by 70 percent.

Investments in innovative and sustainable agriculture solutions are being driven by PepsiCo’s iconic brands, many of which have already embedded the company’s Positive Agriculture approach in their lifecycle.

Another good example is Quaker developing the “Opti-Oat” initiative, which uses over one million data points to guide farmers in how to grow the “perfect oat,” improving yields and creating a more sustainable source of oats.

“By focusing on regenerative agriculture practices at the local level to improve soil health, we can build a stronger foundation for our products and help make the entire food system more sustainable,” says Jim Andrew, PepsiCo’s chief sustainability officer.

“Today, we’re accelerating our Positive Agriculture agenda because we know we have to do even more to create truly systemic change.”

The circular farming practices are part of PepsiCo’s Positive Agriculture agenda, which focuses on soil health, sequestering carbon, enhancing watershed health, increasing biodiversity and improving farmer livelihoods. 

“Any plan to tackle the urgent challenges facing the global food system must address agriculture, the source of nourishment for billions of people and a key lever to address climate change and inequality,” says Ramon Laguarta, PepsiCo chairman and CEO. 

“A resilient food system is essential to our business. With our scale, we have an opportunity and responsibility to drive meaningful change.” 

The initiative’s efforts are estimated to lead to a net reduction of at least three million tons of greenhouse gases (GHG) emissions by 2030. 

“Working together, we can reduce our collective carbon footprint, feed a rapidly growing population, and provide meaningful economic opportunities for more people,” Laguarta adds.

Restoring the fields
Furthering nearly a decade of progress with its Sustainable Farming Program (SFP), PepsiCo will continue to collaborate with farmers across 60 countries to build resilience and restore ecosystems. 

In the US, for example, PepsiCo has worked with farmers to plant cover crops on over 85,000 acres and has seen up to a 38 percent net reduction in on-farm GHG emissions, including soil carbon sequestration.

Through efforts with partners, the company will expand regenerative agriculture programs to more than 500,000 acres of US farmland by the end of this year. 

PepsiCo will also continue to grow its global network of Demonstration Farms, which enable peer-to-peer learning and in 2020 grew to more than 350 farms with more than 80 percent adopting regenerative farming practices.
PepsiCo sources crops across 60 countries and supports over 100,000 jobs in the agricultural supply chain.

As of the end of 2020, PepsiCo reports that its direct-sourced crops are 100 percent sustainably sourced in 28 countries. The company says it has also achieved its goal to source 100 percent Bonsucro-certified sustainable cane sugar globally by 2020. 

The new ambition will focus on sustainably sourcing 100 percent of its key ingredients, expanding to include not only its direct-sourced crops (potatoes, whole corn, oats, and oranges), but also key crops from third parties, such as vegetable oils and grains. 

Globally, nearly 87 percent of direct crops are sustainably sourced through PepsiCo’s SFP. For example, 100 percent of the oranges purchased for Tropicana directly from Florida growers are sustainably sourced, as are 100 percent of the potatoes and oats for Lay’s and Quaker in North America, respectively.

Strides in palm oil sourcing
PepsiCo has achieved more than 99 percent physically certified palm oil by the Roundtable on Sustainable Palm Oil (RSPO). 

The company has a strict commitment to no deforestation, no development on peat, and no exploitation of indigenous people, workers and local communities, and recently published its strengthened Global Strategy on Sustainable Palm Oil, with an increased focus on landscape programs and transformation of the palm oil sector.

Measuring change
PepsiCo advocates for the establishment of industry-wide regenerative agriculture standards and measurement.  

In the absence of such standards, the company will measure progress toward its Positive Agriculture goals by tracking acres and people engaged in the initiative. 

PepsiCo is engaged with organizations like the World Wildlife Fund (WWF) to develop a method for setting science-based targets for water that consider the benefits of regenerative and resilient farming systems and practices on water quality and water quantity.

“Working across the supply chain is necessary if we are to transform the food system, reduce carbon emissions, support healthy watersheds, restore biodiversity and improve livelihoods,” says Sheila Bonini, senior vice president of private sector engagement at WWF.

Taking action
In addition to its work on the farm and in the field, PepsiCo is emphasizing sustainable snacks in its recent PLANeT partnership with Beyond Meat.

The F&B giant is also one of 40 industry players who helped collaborate and design SAI Platform’s Farm Sustainability Assessment (FSA), a sustainable farming tool.

This month, PepsiCo also the recently formed Supplier Leadership on Climate Transition, a coalition to mobilize suppliers to take climate action.