Dive Brief:
- PepsiCo announced last week it had achieved two key water sustainability targets in line with its ambition to become net water positive or replenish more water than it consumes by 2030, as well as its broader ESG goals.
- The global food and beverage company said it reached a goal to completely replenish all the water it used at company-owned facilities located in high-risk watersheds. For every liter of water used at these sites, Pepsi invested the equivalent amount or more back into the local watersheds through a combination of water infrastructure initiatives, nature-based conservation and wetland projects and on-farm irrigation efficiency programs, according to the March 19 press release.
- Pepsi said it had also adopted the Alliance for Water Stewardship Standard across all company-owned manufacturing sites in high water-risk areas. The standard provides businesses a voluntary framework to measure, manage and improve their water use and impact to allow businesses and organizations to better understand their water footprint.
Dive Insight:
Pepsi announced it hit both of these targets, which were set to be achieved by the end of 2025, on Thursday, a few days ahead of World Water Day on March 22.
The company — which houses brands like Lay’s, Doritos, Cheetos, Mountain Dew, Aquafina and its own namesake Pepsi — said its over 60 active projects helped restore nearly 29 billion liters of water back into local watersheds last year. These include stewardship programs in Colorado, the Dominican Republic, Egypt, Spain and Türkiye.
“Water is foundational to our business and the communities where we operate,” PepsiCo Chief Sustainability Officer Jim Andrew said in the release. “Reaching these goals shows what is possible when business strategy, local expertise, and global partnerships come together.”
Pepsi was one of 14 companies — including LVMH, Unilever and Microsoft — that were considered to be “on track” for making progress on water sustainability targets, according to a recent report from environmental nonprofit Ceres which analyzed corporate water stewardship practices.
Last year, the company reset its sustainability strategy, which included adjusting its net-zero target date from 2040 to 2050 and using 2022 as its baseline emissions year, rather than 2015.
The reset came after Pepsi’s 2023 sustainability report flagged that the company was unlikely to meet its 2025 sustainability targets. This recalibration also included updated packaging sustainability targets and setting new 2030 emissions reduction goals.
