Tuesday 20 September 2022

PepsiCo and ADM to cut carbon through regenerative agriculture

Food and beverage company PepsiCo and agriculture giant Archer Daniels Midland Co (ADM) have partnered to reduce carbon through regenerative agricultural practices.

The two companies plan to closely collaborate on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains, expecting to reach up to two million acres by 2030.

Their efforts could eliminate around 1.4 million metric tons of greenhouse gases – equivalent to the amount of electricity used to power 275,000 homes annually – at the farm level.

The partnership will initially target corn, soy and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska, with the opportunity for future expansion.

The initiative supports PepsiCo's ambition to expand regenerative practices across seven million acres of land by the end of the decade – an area approximately equivalent to its entire agricultural footprint – and reach net zero emissions by 2040.

Jim Andrew, Chief Sustainability Officer, PepsiCo said: “Building a better food system is essential to the future health of the earth and all of us.

“At its core, PepsiCo is an agricultural company, working to spread regenerative agriculture practices that restore the earth and reduce carbon emissions to seven million acres by 2030. This partnership with ADM marks a sea change in how PepsiCo engages with strategic partners and is expected to help us reach almost one-third of that goal. By enabling greater collaboration through strategic partnerships like this one, we can strengthen the livelihoods and resilience of the farmers we work with, while building a more sustainable future together.”

ADM has also set a target to reduce absolute greenhouse gas emissions by 25%, energy intensity by 10%, water intensity by 10% and achieve a 90% landfill diversion rate by 2035, against a 2019 baseline.