European PepsiCo’s Advantages: Quicker, more efficient, and more robust in support of the EU Green Deal. Bella Brown October 1, 2023 There has been a lot of talk in recent months about the EU Green Deal and its significance, as well as its future direction. Some reports have indicated that business groups are opposing the Green Deal in an effort to weaken or stop it. With this in mind, I want to confirm that PepsiCo fully endorses the overall goals of the EU Green Deal and believes that it is still just as important and relevant as ever. We hope that the new Parliament and Commission from 2024 to 2029 will continue to create strong policies that support sustainability and tackle climate change. I would like to verify that PepsiCo is fully in favor of the main goals of the EU Green Deal. We require those policies in order to be precise. We must have fresh laws. Without the appropriate policy structure, PepsiCo will face challenges in meeting the ambitious goals we established two years ago with PepsiCo Positive (pep+). Our pep+ framework guides our efforts to align our company’s actions with environmental and social priorities, in line with the principles of the Green Deal. The development of pep+ was prompted by the acknowledgement of two undeniable truths. As a company of our size, we have the potential to make a significant impact and it is our duty to do so. With a presence in over 200 markets and sourcing more than 30 crops from 2.8 million hectares across 60 countries, as well as interacting with over one billion consumers daily, we are not insignificant. Our actions have the power to create change. By prioritizing both people and the planet, we can not only expand our business, but also cultivate stronger, more devoted relationships with our customers and establish a stronger presence in our communities. However, what exactly is pep+ and what significance does it hold for EU policymakers? The focus of pep+ revolves around three key areas where we believe we can make a significant impact: the value chain, agriculture, and consumer decisions. Each of these fundamental pillars contains ambitious objectives that aim to greatly contribute to the overall objectives of the EU Green Deal. pep+ is based around the three areas where we think we can create tangible change: value chain, agriculture and consumer choices. The Positive Value Chain is strongly connected to the Net-Zero Industry Act and the Circular Economy Action Plan. It focuses on the production, transportation, and delivery of our products. PepsiCo has set a goal to reach net-zero emissions by 2040. We have increased our target for reducing emissions from our direct operations (Scope 1 and 2) to 75 percent and from our value chain (Scope 3) to 40 percent by 2030. Our strategy for 2030 does not involve buying carbon offsets, but instead prioritizes reducing emissions within our operations, investing in renewable energy, and utilizing new technologies to address the issue of climate change. In the past, product packaging has been linked to a large amount of carbon emissions. To address this issue, we have made several promises to move towards a circular economy for packaging. These promises include taking steps to ensure that all chip packets are made from 100 percent recycled or renewable plastic by 2030 and working towards eliminating the use of new fossil-based plastic. Additionally, we have already achieved our goal of transitioning our Pepsi brand to 100 percent recycled plastic bottles (rPET) in nine EU markets in the past year. This change is estimated to reduce greenhouse gas emissions per bottle by 40 percent. Furthermore, our aim is to shift consumer behavior by providing packaging options that minimize or eliminate the need for single-use packaging. This is exemplified through our SodaStream business. PepsiCo has made a pledge to have 20% of beverage servings distributed through reusable methods by 2030. Currently, 12 million Europeans are utilizing SodaStream in their households and we urge EU policymakers to recognize at-home refilling systems as a form of reuse according to the PPWR standards. The second foundation, Favorable Farming, is in agreement with the European Union’s strategies for Soil, Biodiversity, and Carbon Farming. We have a goal to promote the use of regenerative methods on 800,000 hectares of land under the management of our European farmers, and to ethically obtain all of our key ingredients by 2030. This is necessary because our current food production methods are not environmentally sustainable and could lead to climate instability, as well as harm to biodiversity and soil quality for future generations. Carbon farming is a promising approach to support the European Commission’s Green Deal and Farm to Fork goals. The task of reducing carbon emissions in the agri-food industry is a significant endeavor. As part of PepsiCo’s pledge to achieve net-zero, we are working with our farming partners to implement carbon farming methods that can help decrease and eliminate carbon in the environment. Lastly, Positive Choices involves creating a collection of healthier alternatives, promoting a better way of living, and supporting the Commission’s goal of sustainable food systems. We are continuously improving our range of products by adding a variety of ingredients that are environmentally sustainable and offer nutritional advantages. Our focus is on using chickpeas, plant-based proteins, and whole grains, while also expanding our offerings in nuts and seeds where we are already the top company worldwide. Additionally, we have made strides in reducing the amount of added sugars and salt in our products. Our aim is to encourage favorable results through our brands and their efforts, such as providing consumers with clear environmental labeling on important products. We hope that Europe’s dedication and determination towards the Green Deal remains steadfast. The European Union has presented a challenge and a plan to achieve it. Despite expected political shifts in Europe, we remain optimistic that the EU’s commitment to the Green Deal will remain steadfast. As a multinational corporation with strong ties to Europe, we are committed to aiding Europe in reaching our mutual goals efficiently and effectively.