Sustainability Report Comparison

Coca-Cola and PepsiCo

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Coca-Cola's 2022 Business & Sustainability Report
The Coca-Cola Company, a widely known brand with global recognition, is not simply
a large producer of sweetened drinks. Established in 1886, Coca-Cola has expanded into a
global conglomerate with an extensive range of beverages. In addition to its financial
success, the corporation is increasingly prioritizing sustainability, as seen by its extensive
sustainability program. Their annual Business & Sustainability Report illuminates their
endeavors to tackle environmental and social issues. Coca-Cola endeavors to generate a
favorable influence across its operations by engaging in responsible sourcing, community
development, water conservation, and waste reduction. These endeavors are unified under
its sustainability program.

1. Commitment to a Circular Economy for Packaging

Coca-Cola outlines its ambitious goals to achieve 100% recyclable packaging
globally by 2025, use at least 50% recycled material in their packaging by 2030, and
collect and recycle a bottle or can for each one they sell by 2030.
2. Progress in Water Stewardship
The report of 2022 Coca-Cola's success in exceeding their 2020 water usage ratio
goal. Their "Reduce, Recycle, Replenish" strategy has reduced water usage per liter
of beverage produced by 32.4% since 2010, with a water replenishment ratio
exceeding 150%.
3. Science-Based Climate Action Goals
Coca-Cola has commitment to reducing their environmental impact. This includes
their science-based target to cut absolute greenhouse gas emissions by 25% by
2030 (compared to 2015 levels) and their ambition to achieve net-zero carbon
emissions by 2050.
4. Transparency in Data and Context
The Coca-Cola Company emphasizes transparency in data and context within its
Sustainability Reports, particularly the 2022 edition. This transparency allows
stakeholders to assess their progress on sustainability goals and hold them
accountable. The Coca-Cola Company uses clear and concise data visualizations
such as charts, graphs, and tables.
5. Responsible Marketing and Innovation
 Coca-Cola efforts to promote responsible marketing practices and develop beverage
choices that cater to consumer health and wellness preferences, potentially including
reduced sugar options and clear labeling.
6. Collaboration for a Sustainable Future

The Coca-Cola Company recognizes that achieving a sustainable future

requires collaboration across various stakeholders. Their Sustainability
Reports highlight their commitment to working with partners and organizations
to create a healthy and debris-free environment. The "Our Planet Matters"
section outlines Coca-Cola's purpose and core focus areas in sustainability
(Water Stewardship, Sustainable Packaging, etc.).
PepsiCo's 2022 Business & Sustainability Report

The Pepsi Company is a global leader not just in beverages, but also in the realm of
convenient snack foods. Founded in 1893, PepsiCo has grown into a multinational
powerhouse with a vast and recognizable portfolio of brands. Beyond its commercial
success, PepsiCo places a growing emphasis on sustainability, evident in its comprehensive
stewardship programs. Their annual Sustainability Report sheds light on their efforts to
address environmental and social concerns. From responsible agriculture and water
conservation to community development and healthy product options, PepsiCo strives to
create a positive impact throughout its vast operations. Here are six potential strengths of their
most recent report (likely the 2022 ESG Summary):

1. pep+ Sustainability Framework

This framework outlines PepsiCo's comprehensive approach to sustainability,
encompassing "Positive Agriculture," "Positive Value Chain," and "Positive Choices" .
It provides a clear structure for their sustainability goals.
2. Ambitious Climate Goals
PepsiCo has commitment to achieving net-zero emissions by 2040, a decade earlier
than the Paris Agreement. Additionally, it might showcase their significantly
increased interim goals for reducing greenhouse gas emissions.
3. Focus on Regenerative Agriculture
PepsiCo efforts to promote regenerative farming practices across millions of acres,
aiming to improve soil health, reduce greenhouse gas emissions, and enhance water
use efficiency.
4. Transparency in Reporting
PepsiCo has commitment to clear and accessible reporting. Their website offers
options to download a customized ESG report or explore specific topics in detail.
5. Progress on Sustainable Packaging
PepsiCo shows advancements towards a circular economy for packaging.

 100% Recyclable Packaging: PepsiCo has a goal to make all their plastic
beverage packaging globally 100% recyclable by 2025.
 Increased Recycled Content: They are committed to using at least 50%
recycled content in their plastic packaging by 2030.
  Reduced Packaging Waste: They aim to collect and recycle a bottle or can for
each one they sell by 2030.

Specific Initiatives:

 Transitioning to rPET: PepsiCo has been transitioning its beverage bottles to

100% recycled polyethylene terephthalate (rPET) in many markets.
 Compostable Snack Packaging: They have introduced fully compostable snack
bags for some brands, like Off The Eaten Path.
 Partnership and Innovation: PepsiCo collaborates with partners and invests in
research to develop innovative and sustainable packaging solutions.

6. Investment in Research and Development

PepsiCo recognizes R&D as a key driver of its sustainability goals. Their focus is on
developing innovative food and beverage products that are:

o Sustainable throughout the life cycle

o Made with responsible sourcing practices
o Cater to growing consumer preferences for healthier options.

Examples of R&D Initiatives:

 Regenerative Agriculture: PepsiCo invests in R&D to develop and promote

regenerative agriculture practices that improve soil health, reduce greenhouse
gas emissions, and enhance water use efficiency.
 Plant-Based Innovation: Their R&D efforts focus on creating delicious and
nutritious plant-based alternatives to traditional meat and dairy products,
appealing to a growing consumer demand.
 Packaging Solutions: As mentioned previously, PepsiCo invests in R&D for
innovative and sustainable packaging solutions like rPET bottles and
compostable packaging materials.
Comparison between Coca-Cola and PepsiCo
This page compares and contrasts Coca-Cola and PepsiCo's sustainability reports across
three dimensions: Business Ethics, Social Responsibility, and Environmental Sustainability.
It then assigns grades to each company's performance.
Dimensions Similarities
Business  Both Coca-Cola and
Ethics PepsiCo emphasize
transparency in
reporting their
sustainability efforts.
 Both companies have
commitments to
responsible marketing
practices, including
clear labeling and
promoting consumer
health and wellness
preferences.
Social
Responsibility Both companies emphasize
their commitment to
community development
and creating a positive
impact across their
operations.
Environmental
Sustainability Both companies have
commitments to reducing
their environmental impact,
including goals related to
greenhouse gas emissions
reduction and sustainable
packaging.
Differences
 Coca-Cola's report highlights its
commitment to achieving 100%
recyclable packaging globally by 2025
and using at least 50% recycled
material in packaging by 2030.
PepsiCo also emphasizes sustainable
packaging but focuses more on specific
initiatives such as transitioning to 100%
recyclable packaging by 2025 and
introducing compostable snack
packaging.
 PepsiCo's report mentions its "pep+
Sustainability Framework," which
outlines its comprehensive approach to
sustainability, including Positive
Agriculture and Positive Value Chain.
Coca-Cola's report does not mention a
similar framework.
Coca-Cola's report emphasizes
responsible sourcing and its efforts in
water stewardship, while PepsiCo's
report highlights its focus on
regenerative agriculture and promoting
farming practices that improve soil
health and reduce greenhouse gas
emissions.
 Coca-Cola outlines its goals for
achieving 100% recyclable packaging
globally by 2025, while PepsiCo
provides more detailed information
about its initiatives, such as
transitioning to rPET bottles and
introducing compostable snack
packaging.
 Coca-Cola's report highlights its
success in reducing water usage per
liter of beverage produced and its
water replenishment efforts, whereas
PepsiCo's report focuses more on
regenerative agriculture and improving
soil health.
Grading

Coca Cola PepsiCo

Dimensions
Grade Comments Grade Comments
Needs Needs
improvement in improvement in
Business Ethics B B+
lobbying labor practices
transparency transparency
Strong Strong focus on
community healthy products
Social efforts, but could and community
B+ A-
Responsibility improve health investment
& wellness
aspects
Progressing in Ambitious
water and climate goals
packaging, but and focus on
Environmental lacks ambition in regenerative
B A
Sustainability emissions agriculture
reduction
compared to
PepsiCo
Overall B A-

Justification
 Coca-Cola receives a B for its environmental performance due to its less ambitious
emissions reduction goals compared to PepsiCo. While Coca-Cola shows progress
in water use and packaging, it falls behind in setting aggressive climate targets.
 PepsiCo receives a higher grade in environmental sustainability due to its
commitment to achieving net-zero emissions by 2040 and its focus on regenerative
agriculture.
Overall, both companies demonstrate significant efforts towards sustainability. Coca-
Cola excels in water stewardship and social responsibility in some areas. PepsiCo sets a
higher bar in terms of climate goals and agricultural practices.
References
 PepsiCo Sustainability Report 2022.
https://pepsico.com/our-impact/sustainability/report-downloads
 CocaCola Sustainability Report 2022.
https://www.coca-colacompany.com/reports/business-and-sustainability-report