PepsiCo has released its first progress report on revamped packaging targets, showing early gains in cutting plastic use and advancing recycling goals.
The company said it reduced virgin plastic use by 5% in 2024, more than double its annual target of 2%, according to its 2024 ESG (Environmental, Social and Governance) report released Thursday. This marks the first update since PepsiCo reset its sustainability goals in May under its pep+ (PepsiCo Positive) program.
Packaging remains a central pillar of the strategy, built around “reduce, recycle and reinvent.” While PepsiCo discontinued its earlier aim of cutting 20% of virgin plastic by 2030, it now targets steady annual reductions of 2% through the end of the decade.
Progress was also reported on recycled content: the company achieved 15% recycled plastic use in 2024, moving closer to its new goal of 40% by 2035. This follows an increase from 7% in 2022 to 10% in 2023.
PepsiCo also advanced efforts in reusable, recyclable and compostable packaging, reaching 93% coverage in key markets by 2024, against a new 2030 target of 97%. Initiatives included changing Mountain Dew bottle colors in Pakistan for better recyclability, rolling out partial-wrap labels for Pepsi Black in China, and launching the first 100% recycled PET 7UP bottle in Taiwan.
On emissions, PepsiCo reported 18% progress toward halving its scope 1 and 2 emissions by 2030, and 12% progress toward reducing scope 3 emissions by 42%.
The company acknowledged missing earlier targets, including its 2025 goal for 100% recyclable, compostable or reusable packaging, and a now-discontinued target to deliver 20% of beverages in reusable packaging by 2030. However, PepsiCo emphasized transparency in updating goals to align with “external realities” and consumer demand shifts.