PepsiCo’s net-zero supply chain target provides blueprint for industry, says GlobalData

15th January 2021 By: Tasneem Bulbulia - Creamer Media Reporter

Following food company PepsiCo’s announcement on January 14 of a plan to achieve net-zero emissions across its supply chain by 2040, data analytics and consulting company GlobalData has indicated that net-zero supply chains are the future of fast-moving consumer goods (FMCG), as 84% of consumers globally show an interest in sustainable production.

“Introducing an initiative to achieve net-zero emissions is an ambitious target for any player of this size in the FMCG industry. Meeting the goal would not only aid in the battle against climate change, but also closely align with consumer demands on a global scale,” says GlobalData consumer analyst Ramsey Baghdadi.

According to GlobalData’s Recovery Survey, published on December 9, 2020, 44% of respondents claimed that their choices were often/always influenced by how ethical and environment-friendly the product was.

“Consumer demand for more sustainable products will continue to be a core strategy in the FMCG industry, especially following Covid-19.

“According to the same survey, over four out of five (84%) of global respondents claimed that ethical or sustainable production methods are as important or more important than before the pandemic. It is, therefore, vital that brands follow PepsiCo’s example and commit to a zero-emission strategy to meet consumer expectations,” Baghdadi indicates.

He notes that, if PepsiCo achieves this ambitious goal, it will cause a challenge for its largest competitor, Coca-Cola, which also announced an ambitious goal to reduce emissions – but not to the same scale.

“As consumers pay more attention to the supply chain process, this zero-emissions strategy will prove to be a pivotal moment for PepsiCo [in the] long term,” acclaims Baghdadi.