Packaging

2/1/23, 12:24 PM Packaging
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Packaging
Why it matters
To PepsiCo:
PepsiCo relies on diverse packaging solutions to safely deliver products to our
customers and consumers. Building a sustainable business is at the core of our
strategy and we continue innovating to secure our long-term success.
PepsiCo's sustainable packaging vision is to build a world where packaging
never becomes waste.
To the World:
When packaging is disposed of incorrectly after use, it may end up as waste in
the marine environment or on land. This urgent global issue requires a
systemic shift to more circular solutions for consumer packaging through
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multi-stakeholder collaboration and active partnerships across the entire

packaging value chain.
Approach
Packaging plays an essential role in safely delivering our products to customers and
consumers. PepsiCo designs our packaging materials to balance several critical
criteria, including compliance with food safety regulations, maintaining freshness
and quality of the product, environmental sustainability, affordability, and consumer
preferences, including convenience. Our sustainable packaging efforts support our
pep+ (PepsiCo Positive) ambition in two ways: we are striving to build a Positive
Value Chain by contributing to a more circular, inclusive and sustainable supply
chain for our packaging; and we are also continuing to evolve our portfolio of
convenient foods and beverage products by providing Positive Choices for our
consumers with innovative packaging technologies and business models.
We recognize and share the concern that packaging, when disposed of incorrectly
after a product has been consumed, may end up as waste in the marine environment
or on land. Our vision is A World Where Packaging Never Becomes Waste. As we
pursue it, we are working on a broad set of initiatives to introduce more sustainable
packaging; develop appropriate end-of-life solutions; improve the carbon footprint
of our packaging, as well as other environmental impacts; and strive for protection
of human rights especially in the informal recycling sector.
Packaging plays a key role in our overall sustainability agenda with strategic
oversight provided by PepsiCo’s executive leadership and input from a multi-
functional group of senior experts from Public Policy and Government Affairs,
Research and Development (R&D), Supply Chain, and the Office of Sustainability,
among others. Our dedicated cross-functional team monitors and evaluates
packaging issues on an ongoing basis, including progress against our goals. The
following goals make up our pep+ sustainable and innovative packaging solution
agendas:
By 2025:
Design 100% of our packaging to be recyclable, compostable,
biodegradable, or reusable
Invest to help increase recycling rates in key markets
By 2030:
Cut virgin plastic from non-renewable sources per serving across our global
1
beverages and convenient foods portfolio by 50% through:
Scaling new business models that avoid or minimize single-use
packaging materials (e.g., models that reuse, refill, prepare at home,
utilize concentrates like powders, drops, etc.)
Doubling the percentage of all beverage servings sold
through reusable models from 10% to 20%
Reducing our absolute tonnage of virgin plastic from non-renewable
sources by 20%, including by:
Using market-leading bio-based and renewable materials
Using 50% recycled content in our plastic packaging
Developing and deploying disruptive sustainable packaging
materials and new models for convenient foods and beverages (e.g.
SodaStream, powders, bio-based materials, reusable or low/no
package models)
We aim to advance these goals by fostering cross-industry and public-private

partnerships; advocating for improved recycling, composting, and broader waste
management infrastructure and regulatory reform; supporting the advancement of
new materials, enhanced recycling technologies, and alternative delivery models;
collaborating with suppliers and partners; and helping to increase consumer
education and acceptance. We recognize that we face technical and regulatory
challenges in achieving these goals—and we may encounter additional new or
unanticipated obstacles—but we are committed to moving forward with innovative
packaging design solutions as we strive to achieve our packaging goals.
In the interest of transparency, PepsiCo is committed to publicly disclosing key

packaging metrics and progressing towards our goals. In addition to the information
below and our ESG Summary, we report annually through the Ellen MacArthur
Foundation’s (EMF) New Plastics Economy Global Commitment Progress Reports. We
also included key highlights in the company’s 2021 Annual Report to Shareholders.
Constructive policy engagement and advocacy
PepsiCo recognizes the need for public private partnerships to improve waste
management while promoting the efficient use of valuable resources. In addition to
the broad set of actions and investments we are making on sustainable packaging,
we believe it is critical for PepsiCo and other industry members to engage
proactively and constructively in policy discussions. We actively support policy

proposals that are broad based, deliver positive environmental outcomes, provide
incentives for sustainability, and allow us to contribute to the design and
implementation of the programs.
We actively support different policies used to promote a more sustainable, circular

economy for packaging, including well designed Extended Producer Responsibility
(EPR) programs that leverage industry leadership. EPR, if properly designed and
funded, can provide meaningful support for recycling, particularly when the right
conditions are in place for a given market. PepsiCo has extensive experience
participating in EPR programs in different parts of the world, and we use our
experience and insights to deliver constructive recommendations when such
programs are being pursued or developed.
Our vision, A World Where Packaging Never Becomes Waste, demands action and
investment from all stakeholders—citizens, local, state, and national governments,
and participants across the industry supply chain. Our view is that EPR programs
function best when input, cooperation, and funding come from all of these key
stakeholders.
We actively engage with industry to develop useful guidance on best in class

designs of effective EPR programs, such as the guidance put forward by the
Consumer Goods Forum Coalition of Action on Plastic Waste. We also collaborate
with a broad range of key stakeholders around the world, including NGOs and other
industry actors, to promote a better understanding of where and how EPR may work
best.
To accelerate the creation of a common global policy framework that can bring
about change at scale, PepsiCo supports a business call for a United Nations treaty
to address plastic pollution globally, based on a circular economy approach.
Our sustainable packaging vision
We use a variety of packaging materials and, as part of our Sustainable from the
Start program, emphasize sustainability in all of our packaging. We also recognize
that plastic packaging in particular has caused significant concern among
stakeholders.
PepsiCo’s sustainable packaging vision is to build a world where packaging never

becomes waste. Our strategy is based on three inter-connected pillars: reduce,
recycle, and reinvent. Through each of these three pillars, PepsiCo strives to lead
change through active partnerships and stakeholder engagement.
Reduce the plastic that we use

Reducing packaging supports our climate ambition and decreases the amount of
plastic we put on the market. We estimate that our efforts to reduce packaging
could eliminate more than 400,000 metric tons of virgin material by 2030. In pursuit
of this goal, we will utilize several levers including designing packaging to minimize
the use of materials, switching to alternative, environmentally friendly materials, and
working to reinvent packaging to reduce the need for single use plastics through
reusable or low/no package models. For example, to reduce plastics across primary,
secondary and tertiary packaging, we have made progress in light-weighting our
bottles, reducing thickness of our films, and cutting down on shipping and other
packaging materials. Our R&D teams are developing new technology in an effort to
pre-settle our snacks products in order to use a smaller bag for the same amount of
product, further reducing our use of plastic.
Recycle: support a circular economy for plastic

We recognize that, while we cannot change recycling and recovery rates around the
world on our own, we have a role to play in supporting recycling systems through
our investments and partnerships. For example, together with peer companies,
through the American Beverage Association, non-profit partners WWF and The
Recycling Partnership, and local governments, we launched an initiative called Every
Bottle Back to invest in recycling infrastructure upgrades, expand access to
recycling and support community education efforts in the United States.
Increasing collection and recycling rates supports a circular economy by promoting

the recovery of the materials we put into market, preserving their value, and aiming
to prevent the materials from ending up as litter or in landfills. We seek to improve
collection and recycling infrastructure through policy and programs as well as
consumer education and engagement. PepsiCo has endorsed the Consumer Goods
Forum EPR position paper to support constructive policy engagement to improve
recycling infrastructure across the globe. Throughout all of these efforts we are
striving to promote a safe and inclusive waste management system for those
working informally in the sector.
Demand for recycled materials is important to increase material value and create a
pull in the market to further increase supply. This is why PepsiCo is seeking to
increase the amount of recycled content in our packaging by identifying new
sources for recycled PET (rPET), the main plastic used to make beverage bottles, and
investing in new technologies. This will be explored through contracts and
investments in mechanically recycled PET supply, the main source of rPET. We also
plan to invest in new technologies in advanced recycling which would break down
plastic waste to a molecular level and then re-form it into new polymers, enabling us
to use non-bottle feedstock which would otherwise go to landfill, and bringing near
virgin-quality performance properties to recycled plastic.
Reinvent: improve the packaging and plastic that we use

PepsiCo’s reinvention efforts focus on improving the environmental impact of our
packaging by developing plastics from non-food, plant-based sources and exploring
biodegradable or compostable options.
PepsiCo is a member of several consortia and partnerships to develop innovative

packaging solutions. These include the NaturALL Bottle Alliance, a research
consortium to accelerate the development of packaging made with sustainable and
renewable resources, and Danimer Scientific who we are working with to develop
biodegradable film resins to be used for next-generation snacks packaging.
Reuse: scale reuse models

We’re also reinventing our offerings to deliver high-quality beverages and
convenient foods through reusable packaging and innovative reuse models that
eliminate the need for single-use plastic. In December 2022, we announced a new
goal to double the percentage of all beverage servings sold through reusable
packaging solutions and delivery models that can help us reduce our use of virgin
plastic per serving, decouple business growth from virgin plastic use, and, over
time, decrease GHG emissions.
Our reuse strategy was developed by a cross-functional team to maximize

sustainability impact while working to grow our business in exciting new areas. We
are leveraging expertise from across the business, including representatives from
our global and sector Sustainability Offices, Design, R&D, Procurement, Corporate
Affairs, Food Service, Marketing, and beyond. Additionally, we’re leaning on outside
expertise and best practices, including the EMF's reuse framework. We're also
engaging through industry and multi-stakeholder coalitions such as the World
Economic Forum's Consumers Beyond Waste initiative on the topic of reuse
measurement and exploring other partnerships to scale reuse models. Together, we
are striving to develop reuse and refill models that will inspire consumers and drive
business growth.
We will pursue four approaches to scale our reuse business including expanding
SodaStream both at home and in workplaces through SodaStream Professional;
building out our refillable plastic and glass bottle offerings in partnership with
PepsiCo bottlers; growing our fountain drinks business with reusable cups; and
accelerating growth in powders and concentrates.
Our early forays into reusable packaging have shown us that we need different
solutions for different markets and consumption occasions, and that leveraging
technology to create a seamless consumer experience is critical to success. For
example, over the years we have gained insights into the successful operations and
scale of our refillable bottle business that can help us identify the right market
characteristics to introduce or scale refillable models. These include:
using one bottle design to increase the uptake by different brands within the
portfolio;
improving technologies to reduce water usage and efficiency;
increasing consumer uptake by communicating sustainability benefits of
refillables; and
utilizing a deposit to encourage the return of bottles.
In the future, partnerships to share logistics and cleaning facilities could aid in scale
and uptake of these types of reuse systems. Insights from our experiences with
refillables can help inform how to scale reuse models in a given market. Knowing
which market factors to consider, including consumer uptake and behavior,
geographical layout, and existing technologies will guide where and how to scale
reuse models.
Relying on our past experiences and learnings from multi-stakeholder coalitions, we

are working to develop localized playbooks for different reuse models to help our
markets and sectors deploy reusable and refillable packaging in ways that will be
most appropriate to their local environment.
Progress
In 2021, we used approximately 2.5 million metric tons of plastic to package
products throughout our convenient food and beverage portfolio, including primary,
secondary, and tertiary packaging.
Progress and Challenges
Progress
PepsiCo Europe announced plans to eliminate virgin fossil-based
plastic in all its crisp and chip bags by 2030, which is expected to
reduce GHG emissions from film packaging for food by up to 40%.
We continue to improve recycling infrastructure, committing an
additional $50 million in investments to key partners in 2021-22.
PepsiCo joined with leading non-profit organizations to call for a
United Nations treaty to address plastic pollution globally.
Challenges
Since 2020, COVID-19 has presented several challenges that our
business continues to navigate, including disruption of recycling
collection and broader system economics as well as heightened
concerns around the safety of post-consumer materials and reuse
systems such as refillable bottles.
Inadequate infrastructure makes collection and recycling of

packaging difficult and increases the likelihood of packaging
leaking into the environment.
Limited supply of high-quality recycled materials makes it difficult
to meet our demand for recycled packaging.
Reduce the plastic that we use
In 2021, we reduced the virgin plastic footprint of our convenient food and beverage
portfolio by 5% per serving against a 2020 baseline.
In 2020, PepsiCo joined with Pulpex to attempt to develop and scale the world’s first
recyclable paper bottle, initially developed by Diageo and Pilot Lite. We also phased
out plastic packaging from for our bubly brand and piloted molded pulp fiber and
paperboard replacements for our plastic 6-pack carriers in the U.S. Lessons from
these pilots continue to inform initiatives in other regions.
Recycle: Support a circular plastic economy for plastics

In 2021, 87% of our packaging worldwide was fully capable of being recycled,
compostable, biodegradable, or reusable. While we phase out materials that are
challenging in the recycling process, such as non-recyclable labels, we continue
searching for solutions to improve the recyclability of flexible snacks packaging and
to increase consumer access to recycling for materials like shrink wrap, which
present a challenge to PepsiCo and the industry overall.
In early 2022, PepsiCo Europe announced that by 2030, it aims to eliminate virgin
fossil-based plastic in all its crisp and chip bags, reducing GHG emissions from film
packaging for food by up to 40%. This ambition will apply to brands including
Walkers, Doritos, and Lay’s and is expected to be delivered by using 100% recycled
or renewable plastic in its packets.
We expect the recycled content in the packs will be derived from previously used
plastic and the renewable content will come from by-products of plants such as
used cooking oil or waste from paper pulp. PepsiCo estimates it could achieve up to
40% greenhouse gas emissions reduction 2 per ton of packaging material by
switching to virgin fossil-free material.
In 2020, our investment partner, Circulate Capital Ocean Fund, invested US$19
million in four leading companies in India that are using technology and innovation
to scale and transform India’s waste management and recycling value chain. We also
introduced a consumer awareness campaign in Latin America in partnership with
National Geographic called Planet Love, to educate and inspire audiences to
contribute to a more sustainable world by starting with the responsible use and
disposal of plastic.
In late 2021, we invested $15 million in the Closed Loop Partners’ (CLP) Leadership
Fund, a private equity fund focused on strengthening recycling infrastructure and
building circular supply chains, and in early 2022, invested $35 million to help
create the Closed Loop Local Recycling Fund, to advance new small-scale, modular
recycling systems in communities across the U.S. We are also a founding partner of
CLP’s Composting Consortium, a founding member of the Closed Loop
Infrastructure Fund, and are invested in the CLP Beverage Fund through the
American Beverage Association's Every Bottle Back Initiative.
Across our global company-owned and franchise beverage operations in 2021,

PepsiCo used 6% recycled plastic in its plastic packaging globally, supported by 19%
recycled content in Europe and 8% in North America.
In 10 European markets, Pepsi-branded3 products are expected to switch to 100%

rPET bottles by the end of 2022. Moving to rPET bottles is estimated to reduce GHG
emissions by roughly 30% per bottle. In the U.S., we sell LIFEWTR in 100% rPET
bottles, and Pepsi Zero Sugar will begin to be sold in 100% rPET bottles by the end
of 2022 and all Pepsi-branded products in the U.S. are anticipated to be converted to
100% rPET bottles by 2030.
In 2021 and 2022, we launched 100% rPET beverage products in Australia, New
Zealand, Vietnam and Argentina. We are transitioning several brands to 100% rPET
across 22 global markets.
Reinvent: Improve packaging and plastics

PepsiCo is continuing to grow our portfolio of Beyond the Bottle beverages. In 2020,
the SodaStream brand expanded to release SodaStream Professional, a mobile-
enabled platform that allows people to customize their water away-from-home,
including offices, colleges and airports, with reusable bottles. We are bringing this
model to additional markets by the end of 2022. SodaStream plans to switch all its
flavors from virgin plastic to alternative materials including metal and rPET, which is
expected to eliminate the need for nearly 200 million virgin plastic bottles by 2025,
in addition to the more than 200 billion plastic bottles the brand is expected to help
consumers avoid by 2030. In 2021 and early 2022, SodaStream launched a line of
do-it-yourself syrups in Canada and California, including flavored syrups for Pepsi,
Diet Pepsi, Pepsi Zero Sugar, 7UP, and 7UP Zero.
In our convenient foods business, we are striving to reinvent our snacks packaging
to go Beyond Film. In partnership with UK retailer Asda, we launched a trial with
Quaker Oats to reduce plastics and explore refillable options in their Sustainability
Stores. Additionally, we are joining the Loop reuse pilot at Tesco with Quaker Oats,
and we continue to participate in customer dispenser pilots in France with our
Bénénuts product. We are also planning a return-and-reuse pilot in the Netherlands
featuring both breakfast and snack products. Learnings from these pilots will inform
future innovation.
Reuse: scale reuse models

We currently offer reuse models in more than 80 markets, including: SodaStream,
SodaStream Professional, fountain beverages, returnable glass and plastic bottles,
and concentrates and powders. Currently, 10% of our beverage servings are already
in reusable packaging. Reusable models span many of our brands, including Pepsi
brands, Gatorade, and Propel.
In 2022, we joined the Closed Loop Partners NextGen Consortium in the United
States, working collaboratively with stakeholders across the value chain to design
and test new models to enable the scale up of reusable cups, a critical component
of supporting a reuse infrastructure alongside beverage fountains.
Strategic Partnerships
To build a circular economy for packaging, it is important that all actors in the
packaging value chain, including packaging producers, retail and sales outlets,
waste management and recycling industries, governments, and consumers, work
together to collectively achieve the transition. To this end, PepsiCo engages in a
variety of programs and initiatives that bring stakeholders together to create broad
solutions in order to shift the whole system in a more sustainable direction. Due to
the breadth of our global, regional, and local partnerships, we cannot list every
initiative in all markets and focus here on a representative sample of our work and
commitment to collaboration.
What's Next?
In 2022, PepsiCo is looking to further several key initiatives as we work towards a
Positive Value Chain and help consumers make Positive Choices:
We will continue to accelerate investments in recycling infrastructure and

explore partnerships to empower waste collectors in those markets.
We are continuing to develop the supply chain to bring compostable,
renewable, bio- and paper-based materials, and reusable packaging
solutions to scale.
We will continue to work to scale our reuse portfolio with models designed
to help us reduce our use of virgin plastic per serving, decouple business
growth from virgin plastic use, and, over time, decrease GHG emissions.
Consumer trials of 100% recyclable or renewable packaging will begin in
European markets in 2022 in line with the new goal of eliminating virgin
fossil-based plastic in crisp and chip bags in those markets by 2030. For
example, pilots will start with renewable plastic in a Lay’s range in France in
the first half of the year. Later in the year, a range from the Walkers brand in
the UK will trial recycled content.
We will continue to build coalitions and collaborate in support of smart
policies that enable the circular use of materials and to build partnerships to
empower our consumers to make sustainable choices through education.
1
Against a 2020 baseline.
2
Based on a Cradle to Grave Lifecycle Assessment provided by Franklin Associates, A Division of ERG, using cut
off methodology, a mix of data provided by suppliers and industry, and an estimated 2030 end of life scenario.
This Assessment includes carbon storage credits, waste-to-energy electricity production credits, and avoided
legacy waste treatment credits.
3
Includes Pepsi, Pepsi MAX, Pepsi MAX Lime, Pepsi MAX without caffeine, Pepsi Light, and Pepsi Light without
caffeine.
Related Topics
Climate Change, Deforestation, Green Bond, Sustainable Product

Design, Sustainable Sourcing, Waste
Downloads
Packaging Partnerships and Engagement
Global Policy on Sustainable Packaging
PepsiCo’s Work to Improve Recycling in the U.S.
PepsiCo 2022 Green Bond Report
Disclosures
GRI 301-1
GRI 301-2
SASB FB-PF-NB-410a.1
SASB FB-PF-NB-410a.2
SDG 12
SDG 13
SDG 17
Last Updated
January 10, 2023
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2/1/23, 12:24 PM Packaging

Who We Are Our Impact Our Brands Our Stories Investors

ESG Topics A-Z

multi-stakeholder collaboration and active partnerships across the entire

Invest to help increase recycling rates in key markets

We aim to advance these goals by fostering cross-industry and public-private

In the interest of transparency, PepsiCo is committed to publicly disclosing key

Constructive policy engagement and advocacy

proactively and constructively in policy discussions. We actively support policy

We actively support different policies used to promote a more sustainable, circular

We actively engage with industry to develop useful guidance on best in class

Our sustainable packaging vision

PepsiCo’s sustainable packaging vision is to build a world where packaging never

Reduce the plastic that we use

Recycle: support a circular economy for plastic

Increasing collection and recycling rates supports a circular economy by promoting

Reinvent: improve the packaging and plastic that we use

PepsiCo is a member of several consortia and partnerships to develop innovative

Reuse: scale reuse models

Our reuse strategy was developed by a cross-functional team to maximize

Relying on our past experiences and learnings from multi-stakeholder coalitions, we

Progress and Challenges

Inadequate infrastructure makes collection and recycling of

Reduce the plastic that we use

Recycle: Support a circular plastic economy for plastics

Across our global company-owned and franchise beverage operations in 2021,

In 10 European markets, Pepsi-branded3 products are expected to switch to 100%

Reinvent: Improve packaging and plastics

Reuse: scale reuse models

We will continue to accelerate investments in recycling infrastructure and

Climate Change, Deforestation, Green Bond, Sustainable Product

Global Policy on Sustainable Packaging

PepsiCo’s Work to Improve Recycling in the U.S.

PepsiCo 2022 Green Bond Report

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