· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: PepsiCo has announced a significant revision of its climate and packaging targets, including delaying its net-zero emissions goal from 2040 to 2050
• The company is reducing its target for recycled plastic use in primary packaging from 50% by 2030 to 40% by 2035
• These changes reflect both internal growth pressures and external systemic challenges, such as stagnant recycling infrastructure and lack of regulatory support
🔭 The context: Initially set in 2020, PepsiCo's climate commitments were shaped by expectations of stronger policy momentum and technological advancements
• However, evolving political and economic conditions — including limited progress in electric grid upgrades and recycling systems — have constrained implementation
• Similar to Coca-Cola's recent climate retreat, this move reflects broader industry struggles with scaling sustainability amid rising operational complexity and trade policy headwinds
🌍 Why it matters for the planet: PepsiCo’s changes could affect momentum in corporate sustainability, particularly in fast-moving consumer goods
• The rollback signals how even well-resourced multinationals face difficulties aligning business expansion with sustainability targets
• It also raises concerns over the reliability of voluntary climate pledges and the pace of progress toward circular economy models — especially in the absence of robust global infrastructure and regulation
⏭️ What's next: PepsiCo has issued an inaugural climate transition plan, outlining its revised targets and strategy review mechanisms
• The company is set to maintain a Scope 3 emissions reduction target aligned with the Paris Agreement, and expand regenerative agriculture efforts to 10 million acres by 2030
• Investors and regulators will closely monitor its implementation and transparency going forward
💬 One quote: “Our vision hasn’t changed, our objectives haven’t changed, what we’re trying to do hasn’t changed,” — Jim Andrew, PepsiCo’s Chief Sustainability Officer, affirming the company’s continued commitment despite altered timelines
📈 One stat: PepsiCo now aims to reduce its Scope 1 and 2 greenhouse gas emissions by 50% by 2030, down from its original 75% reduction target
See on illuminem's Data Hub™ the sustainability performance of PepsiCo and its peers Coca-Cola, and Nestlé
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