PepsiCo turns to HVO Diesel to Cut Scope 3 GHGs

HVO fuel is being used to transport Walkers to UK retailers. (Credit: PepsiCo)
PepsiCo using hydrotreated vegetable oil diesel to transport goods, including Walkers snacks, as it seeks to reduce Scope 3 supply chain emissions

Across all industries, companies are tirelessly striving to run their operations more sustainably.

A key aspect of this effort is adapting vehicle fleets to reduce greenhouse gas (GHG) emissions, contributing to a more eco-friendly society.

Food and drink giant PepsiCo is a significant player in this field. The organisation is expanding its use of hydrotreated vegetable oil (HVO) diesel throughout its supply chain, including in the transportation of Walkers, the UK's most popular crisps.​​​​​​​

In partnership with Stobart, PepsiCo is deploying HVO-powered trucks to transport Walkers products from its Leicester distribution centre in the East Midland to retailers nationwide.

It's estimated the programme will save an additional 13,000 tonnes in GHG emissions by the end of 2024, compared to conventional diesel.

“Scaling up our use of HVO-powered trucks to transport our Walkers crisps all over the country is a significant further step in our decarbonisation journey,” says Simon Devaney, Sustainability Director at PepsiCo UK & Ireland.

“By continuing to invest in green logistics initiatives with trusted partners, we’re moving even closer to our goal of net zero by 2040.”

PepsiCo's commitment to net zero

As certified by Zemo Partnership, every kilometre powered by HVO generates 85% less GHG emissions compared to conventional diesel.

This means that, throughout the remainder of this year, Walkers crisps will be transported using five million litres of HVO, fuelling more than 11 million miles of HGV journeys in the UK.

The initiative is part of a series of green efforts by PepsiCo to expand HVO fuel use across the organisation. In the UK, HVO has already replaced diesel for trucks between the Quaker Oats mill in Cupar, Scotland and Walkers’ base in Leicester, and on routes between various farms and Leicester.

Currently, 40% of the transportation used to make and deliver Walkers crisps is powered by low-carbon HVO. This year, PepsiCo’s total miles running on HVO fuel will equate to 14 million this year, saving more than 16,000 tonnes in GHG emissions.​​​​​​​

PepsiCo Positive, the company’s transformation programme, aims for net-zero emissions by 2040.

It also supports the decarbonisation goals of its partner, Stobart, which is working towards hitting its own science-based targets.

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“This important initiative will help Stobart and PepsiCo jointly decarbonise their supply chains by more than 13,000 tonnes of carbon this year alone,” adds David Pickering, CEO at Stobart.

“We’re now actively working on further initiatives with PepsiCo to continue accelerating our decarbonisation journey.”

Industry-wide HVO adoption

PepsiCo stands alongside numerous other companies embarking on the transition to HVO adoption.

Among them is logistics heavyweight XPO, which has made strides integrating HVO and electric vehicles into its 4PL and transport control tower operations.

An initial trial phase spanned almost 3,000 miles across the UK and Ireland, yielding a significant reduction of more than 4,000 kilograms of CO2 emissions. This marks a notable step towards a more sustainable logistics sector.

Additionally, PostNL, in tandem with its international arm, Spring, has emerged as a key player in advancing HVO usage for international road transport within Europe.

Its collaboration with partners is set to introduce approximately four million litres of HVO100 into Europe's diesel network for road transport. This initiative is projected to curtail carbon emissions by an impressive 12 kilotonnes annually, contributing substantially to environmental preservation efforts across the continent.
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