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Are net-zero supply chains the future of FMCG?

18 January 2021

Following the recent announcement that PepsiCo is aiming to achieve net-zero emissions across its supply chain by 2040, Ramsey Baghdadi, consumer analyst at GlobalData, offers his thoughts. 

Introducing an initiative to achieve net-zero emissions is an ambitious target for any player of this size in the FMCG industry. Meeting the goal would not only aid in the battle against climate change, but also closely align with consumer demands on a global scale. According to GlobalData’s Recovery Survey (published In December 2020), 44% of respondents claimed that their choices were often/always influenced by how ethical and environmentally-friendly the product was.

Consumer demand for more sustainable products will continue to be a core strategy in the FMCG industry, especially following COVID-19. According to the same survey, 84% of global respondents claimed that ethical or sustainable production methods are as important or more important than before the pandemic. It is, therefore, vital that other brands follow PepsiCo’s example and commit to a zero-emission strategy to meet consumer expectations 

If PepsiCo achieves this ambitious goal, it will cause a challenge for its largest competitor, Coca-Cola, which also announced an ambitious goal to reduce emissions - but not to the same scale. As consumers pay more attention to the supply chain process, this zero-emissions strategy will prove to be a pivotal moment for PepsiCo long-term.


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