PepsiCo and the

importance of
Biodiversity
Anna Bohsali, Emma Cotter, Lydia Roe,
Tom McCaffrey
What is
Biodiversity?
•Biodiversity refers to the
variety of living species on Earth

•There is variation between

species and amongst a same
species

•8.7 million species on earth

amongst which 1.2 million have
been discovered (from which
most are insects)
 The importance of Biodiversity
• Biodiversity has an intrinsic value through:

- Interspecific biodiversity supports the ecosystem as a whole

- Intraspecific biodiversity (genetic diversity) prevents the extinction of

species by allowing them to adapt to changes in their environment

• … and an extrinsic value (to humans, businesses, and commerce)

though:

-Ecosystem services ($$$): Crops for food (corn, palm),

pharmaceuticals, construction (wood).

-Spiritual happiness and satisfaction

-Recreation and tourism (fishing, safaris, nature tours)

-Information (human curiosities, problem solving through biomimicry)

• Bottom line: the more diverse an ecosystem is, the more stable and
productive it is, and the more the natural systems can be capitalized
on
 Factors Driving
Biodiversity Loss
• A large range of PepsiCo’s products rely on ecosystem
services and will be affected by the factors driving
biodiversity loss.
• Habitat Loss
Ie. Deforestation, death of coral reefs
• Invasive Species
Ie. Spotted Lanternfly invading NE U.S. from China
• Overexploitation
ie. Unsustainable farming practices that exploit the land
and kill soil microorganisms, negatively impacting fertility
and crop productivity
• Pollution
Ie. Fertilizer runoff into streams causing fish kills
• Climate Change
Ie. Natural disasters, some crops not surviving changing
temperatures
PepsiCo’s Inputs
• Raw materials from farms
• Millions of regenerative farming
• 28.1 billion liters of water
• >11,000 Olympic swimming pools
• Only 5% plastics recycled
• Recycling Partnership
PepsiCo’s
Impact
• Food market = leading cause
of biodiversity loss
• Second largest company
• 2019 Carbon Footprint =
57 million metric tons
• $70 billion worldwide 
• Snack market 4%
• Food market 0.48%
• 22 popular brands
• Pepsi (+ Diet), Mt. Dew,
Lay’s, Gatorade,
Tropicana, etc.
 • In 2019, PepsiCo committed to being carbon neutral by 2040

Keys for Potential • Plan to cut GHG by 40% by 2030 by optimizing soil health, recycling,
and renewable energy

Positive Impact
• Regenerative Agriculture
• KEY  to fighting the climate crisis

• Sustainably Sourcing
• Nearly 80% farmer-sourced agriculture raw materials were verified to
be sustainably sourced

• Reducing plastic use

• Use new ways to use recycled plastics or new green materials for
packaging
• 56 gigatons of carbon between now and 2050 just for plastic
production
• Bioplastics

• Clean & Renewable Energy

• Shifting to 100% renewable electricity through a variety of diverse
PepsiCo's Potential Impact
with other Companies
• Joint solutions
• Need a focus on how to remove CO2 from the
atmosphere, not just reduce it
• 95% of carbon causing climate change is already
in the atmosphere
• AirCarbon
• A new technology that allows sequestered carbon to
be made into bioplastic
• Currently being used to make furniture at IKEA
• Could be used to create packaging for PepsiCo that
removes CO2 from the atmosphere during
production
• Carbon Sequestering Concrete
• Can permanently sequester CO2
• Can be used to offset emissions that are unable to be
mitigated elsewhere
Results of
Impacts
• Decrease in GHG emission
• Increased yields
• Increased biodiversity
• Drought-resistant soil
• Restoring damaged ecosystems
• Rebuilding habitats
• Improved nutrition
• Increased carbon sequestration
• Improved water quality and availability
• Improved air quality
• Improved living and working conditions
• Improved physical and mental health
• Decreased plastic use and plastic pollution
• Increased pressure on other companies and
their consumers
• Increased pressure for governmental change
Risks of Lower Biodiversity
The majority of risks center around the agricultural crops that are grown
to make PepsiCo products.

Food plants, pollination, pest control, nutrient provision, genetic

diversity, and disease prevention and control all rely on biodiversity

Without biodiversity all of these processes are at risk

If the processes above fail due to a lack of biodiversity the cost to

PepsiCo could be enormous

For instance, if a lack of biodiversity kill bees off, PepsiCo might have to
artificially pollinate their crops or genetically engineer specialty crops
Company Risks & Mitigation
Strategies
According to a study from 2017 Australia is among the
world's worst when it comes to biodiversity conservation
According to PepsiCo Australia's own website they have a
large network of local growers
Due to this PepsiCo's growers in this region are likely at the
most risk from the negative effects of biodiversity loss
An economic benefit of this would be a more stable
supply chain
Relying on natural pest control instead of pesticides
could be one mitigation strategy to preserve biodiversity
Thank You.
Works Cited
• Conway, Jan. (2021). “PepsiCo Statistics & Facts.” Statista. 12/7/21.
https://www.statista.com/topics/1503/pepsico/#dossierKeyfigures 
• Cooper, Ben. (2021). Biodiversity loss – why food companies should say something.” Just Food. 12/8/21.
https://www.just-food.com/features/biodiversity-loss-why-food-companies-should-say-something/ 
• “ESG Topics A-Z.” (2021). PepsiCo. 12/7/21. https://www.pepsico.com/esg-topics-a-z
• “Food.” (2021) Statista. 12/7/21. https://www.statista.com/outlook/cmo/food/worldwide  
• “Biodiversity”. National Geographic 12/5/21. https://www.nationalgeographic.org/encyclopedia/biodiversity/
• “Primary Drivers of Biodiversity Loss”. Encyclopedia Britannica. https://www.nationalgeographic.org/encyclopedia/biodiversity/
• “Economic Benefits of Biodiversity”. WeConservePA.
•  https://conservationtools.org/guides/95-economic-benefits-of-biodiversity
• https://theconversation.com/australia-among-the-worlds-worst-on-biodiversity-conservation-86685
• https://www.pepsico.com.au/sustainability/sustainable-food-system
• Regenerative Agriculture
• Carbon Neutral by 2040 - is it enough?
• https://www.newlight.com/aircarbon