PepsiCo has committed to reaching net zero emissions by 2040.
The food and beverage giant has also pledged to cut greenhouse gas emissions across its entire value chain by more than 40% by 2030.
The commitment is predicted to lead to the reduction of more than 26 million tonnes of emissions, which is the equivalent of taking more than five million cars off the road for a full year.
The company also plans to roll out a technology to produce a low-emission fertiliser made from potato waste to minimise the carbon footprint of its potato chip brands.
PepsiCo has also pledged to accelerate the transition to renewable electricity, adopt sustainable transport fuels for its entire value chain and reduce the use of virgin plastic.
The company has already committed to switching Pepsi bottles into 100% recycled plastic in nine European markets by 2022.
PepsiCo Chairman and Chief Executive Officer Ramon Laguarta, said: “The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it.
“Climate action is core to our business as a global food and beverage leader and propels our PepsiCo Positive journey to deliver positive outcomes for the planet and people. Our ambitious climate goal will guide us on the steep but critical path forward — there is simply no other option but immediate and aggressive action.”