· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on ESG Dive or enjoy below:
🗞️ Driving the news: PepsiCo has released its first progress report since revamping its packaging sustainability targets in May 2025
• The company exceeded its annual goal by reducing virgin plastic use by 5% in 2024—more than double its 2% target
• However, progress toward long-term recycled content goals remains modest, with only 15% recycled plastic used in packaging, far from its 2035 target of 40%
🔭 The context: PepsiCo launched its “pep+” sustainability platform in 2021, but after falling short of earlier goals—such as a planned 50% recycled content by 2030—the company restructured its targets in 2025
• Among key changes: abandoning the absolute 20% virgin plastic reduction goal by 2030 in favour of incremental annual cuts
• It also discontinued its formal reuse goal but continues to explore pilot programs and invest in reusable packaging technologies, including SodaStream and refillable bottle initiatives
🌍 Why it matters for the planet: Plastic packaging accounts for a significant share of emissions and waste in the consumer goods sector
• PepsiCo’s renewed focus on gradual reductions and material reinvention reflects broader challenges in scaling circular packaging systems globally
• While its latest reduction in virgin plastic use is a positive step, slower progress on recycled content highlights the market and infrastructure constraints hindering deeper transformation
• The phase-out of formal reuse targets also raises questions about the sector’s commitment to upstream waste prevention
⏭️ What's next: PepsiCo will maintain its 2% annual virgin plastic reduction target through 2030, with further updates expected in next year’s ESG report
• The company is also expanding pilot projects such as California’s Petaluma Reusable Cup Project and continuing to scale at-home systems like SodaStream
• Broader industry shifts—including regulatory action on extended producer responsibility (EPR) and recycled content mandates—may accelerate or challenge PepsiCo’s path to its 2035 targets
💬 One quote: “We’ve learned a lot, and the world has changed a lot, and so we wanted to incorporate those learnings and those external realities.” – Jim Andrew, Chief Sustainability Officer, PepsiCo
📈 One stat: PepsiCo achieved 15% recycled plastic content in packaging in 2024, up from 10% in 2023 and 7% in 2022—on the path to a 40% target by 2035
See on illuminem's Data Hub™ the sustainability performance of PepsiCo and its peers Coca-Cola, and Diageo
Click for more news covering the latest on corporate sustainability
