PepsiCo moves its sustainability goal posts

PepsiCo. Inc. is cutting some key environmental goals related to plastic packaging and extending its timeline to achieve those new targets.

The Purchase, N.Y.-based beverage and snack food giant is replacing a previous goal of using 50 percent recycled content in plastic packaging by 2030 to with a new target of "40 percent or greater recycled content in our plastic packaging by 2035 or sooner," the company said.

Pepsi uses both rigid packaging for beverage containers and flexible packaging for snack foods marketed by the company's Frito-Lay division.

Plastics packaging is not the sole focus of the change as Pepsi gives itself a bit of breathing room related to paper cartons and aluminum cans.

Pepsi now seeks to have 97 percent or more of its packaging "by design" be reusable, recyclable or compostable by 2030, a goal that covers "primary and secondary packaging in our key packaging markets." That's down from a previous goal of designing 100 percent of packaging to be recyclable, compostable, biodegradable, or reusable (RCBR) by 2025.

The company is also eliminating another plastics-related goal completely. A previous goal sought to "cut virgin plastic from nonrenewable sources per serving across our global beverages and convenient foods portfolio by 50 percent by 2030 (vs. 2020 baseline)," the company said. Instead, Pepsi will now focus on "absolute tonnage virgin plastic reduction."

Pepsi also once sought to cut single-use packaging by having 20 percent of the company's beverage servings be delivered by 2030 through what the company calls reusable models, a category that includes reusable and refillable containers as well as at-home systems and concentrates. That goal has been completely eliminated. Instead, the company will track reusability through the reusable, recyclable and compostable goal.

In 2018, Pepsi acquired the SodaStream brand for $3.2 billion, a system that allows consumers to make carbonated drinks at home using concentrated syrups and carbon dioxide containers. Pepsi's reusable category also includes fountain beverages served in reusable containers, returnable plastic and glass bottles and concentrates and powders available to consumers.

Pepsi previously sought to reduce the absolute amount of virgin plastic derived from nonrenewable sources by 20 percent by 2030 when compared to 2020 numbers.

Now the firm seeks to "achieve an average of 2 percent year-over-year reduction in our absolute tonnage of virgin plastics through 2030" for "primary plastic packaging in key packaging markets."

Primary packaging directly holds a product — think a soda bottle or chip bag, in Pepsi's case. Secondary packaging can be plastic shrink wrap around a 12-pack of soda, for example.

Introducing this new goal to cover "key packaging markets," in Pepsi's words, eliminates a portion of the of the company's overall packaging footprint. Pepsi said the scope of key packaging markets represents more than 80 percent of the firm's global plastic packaging footprint by weight.

Changes to Pepsi's packaging goals come as part of a larger overhaul of the company's sustainability goals revealed May 22.

"The revised goals on climate, packaging, agriculture and water also reflect PepsiCo's understanding of where it can accelerate impact — striving for greater return on its investments — and where progress will take more time, based on the realities of key global enablers such as recycling and reuse infrastructure," the company said. "These refined goals reflect transparency about challenges."

Jim Andrew is chief sustainability officer at PepsiCo.

"We know it's important that we continue to be transparent about our progress — both our successes and the challenges — and the dynamic realities that our company and the broader industry face today," he said in a statement. "Our sustainability journey will not always be linear."