PepsiCo – Kyla Aiuto – 2020

Goals

PepsiCo has a climate goal aligned with the Science-Based Targets Initiative (SBTi) and is eager to engage with its suppliers as supply chain emissions (Scope 3) forms a considerable share of PepsiCo’s footprint. To better understand where to begin on this journey, PepsiCo enlisted EDF Climate Corps fellow Kyla Aiuto to determine which suppliers to prioritize and how to strategically collaborate on climate initiatives with internal and external stakeholders.

Solutions

Using various raw data extracts from the CDP Supply Chain program, internal procurement data, and other resources, Aiuto cleaned and consolidated PepsiCo’s supplier emissions data to determine the carbon intensity of commodities and materials purchased annually. In addition, she analyzed the total volume of energy consumed by PepsiCo’s suppliers across geographies, comparing these figures to the average volume of renewable energy procured in each region by peer organizations and industry-leading RE100 companies. Lastly, Aiuto built a model and data visualization that assessed the company’s highest emitting suppliers in relation to the maturity of those suppliers’ climate strategies. Aiuto’s analysis allowed PepsiCo to identify value chain hotspots and to nominate a group of high-impact suppliers for individualized supplier engagement and support.

Impact

Climate action is central to PepsiCo’s global corporate strategy, and since Scope 3 emissions make up over 90% of the company’s emissions profile, supplier engagement is a critical component of achieving the company’s climate goals. Aiuto’s project gives PepsiCo a comprehensive understanding of where to start on its climate-related supplier engagement journey, using data-driven insights to collaborate effectively among internal teams and suppliers.