Can Regenerative Farming Really Reshape Global Food Systems?

PepsiCo sets out its 2024 environmental, social and governance (ESG) update with a clear focus on overhauling its food systems, aiming to support both global nutrition and long-term sustainability.

The company outlines actions tied to regenerative farming, circular packaging and product reformulation, as part of its pep+ strategy, aimed at transforming how it operates.

Food production plays a critical role in global health and economic stability, but its complexity brings wide-reaching environmental impacts.

The World Economic Forum estimates that US$300bn is needed to reshape the global food industry to align with climate goals outlined in the Paris Agreement.

PepsiCo uses its global scale to influence this shift, with its ESG progress showing how it is navigating both practical and systemic challenges.

Scaling regenerative farming with global suppliers

PepsiCo puts regenerative agriculture at the core of its farming practices.

In 2024, the company supported the adoption of these methods across 3.5 million acres, partnering with growers to move away from conventional farming methods.

It sustainably sourced nearly 70% of its key ingredients, making progress toward its 2030 commitments.

The company works with suppliers on practices such as planting cover crops and reducing tillage, both of which protect and improve soil health. It also encourages crop diversity and livestock integration.

These steps are essential to maintaining long-term agricultural productivity while cutting environmental damage.

PepsiCo also takes aim at water use, supporting farmers with watershed initiatives in high-risk areas.

The company replenishes 75% of the water it uses in such regions and provides targeted training, tools and partnerships to support this work.

According to PepsiCo, its regenerative agriculture strategy is built on three pillars: providing financial support to farmers, engaging directly with communities and offering tools that help scale sustainable practices.

This includes a multi-year partnership with Practical Farmers of Iowa, alongside US$6.7m in funding for innovation in farming and access to crop nutrition programmes.

Anne Tse, CEO of APAC Foods at PepsiCo, says: “We’ve expanded regenerative practices across millions of acres, strengthened our approach to water stewardship, advanced sustainable packaging and accelerated climate action. 

“Alongside these efforts, we’ve refined our goals to reflect today’s realities while keeping our long-term ambition firmly in view.”

Reformulating products for better nutrition

PepsiCo is also making changes to its product portfolio, targeting added sugar, sodium and saturated fats. In 2024, it reports reductions across key product categories:

• 67% of beverages now contain reduced added sugar

• 77% of convenient food products keep sodium under 1.3mg per calorie

• 81% of products stay below 1.1g of saturated fat per 100 calories

To meet these targets, the company reformulates existing products and develops new ones. PepsiCo brings together nutrition scientists, seasoning experts and chefs to maintain flavour while reducing content levels that are associated with poor health outcomes.

The company distributes 69 billion portions of diverse ingredients globally each year through its convenient foods business. These include products enriched with functional ingredients, supporting better daily choices for consumers.

Anne says: “At the heart of pep+ is also the transformation of our portfolio. We’re bringing consumers products that reduce added sugars, sodium and saturated fats, while expanding choices with functional benefits and diverse ingredients. 

“This shift is resonating strongly in markets across the globe, underscoring the role our brands can play in supporting better choices every day.”

Investing in circular packaging and sustainable design

Packaging remains a critical focus for PepsiCo’s circularity targets. In 2024, the company reported a 93% increase in packaging that is reusable, recyclable or compostable.

It also cut virgin plastic use by 5% in absolute tonnage year over year.

To reduce plastic usage, the company adopts lighter materials and pre-settles food, enabling smaller containers without reducing product volume.

These packaging design adjustments lower resource demand across its portfolio.

PepsiCo also adapts packaging to suit regional recycling infrastructure.

In Pakistan, the company changed its Mountain Dew bottle from dark green to light green to meet recycling standards.

In China, it swapped whole-bottle labels for partial wraps on Pepsi bottles.

Taiwan became the first market to offer 100% rPET (recycled polyethene terephthalate) bottles for carbonated drinks.

Alongside packaging redesign, PepsiCo supports initiatives like Thailand’s Extended Producer Responsibility (EPR) programme, which targets flexible packaging collection and recycling.

The company also pilots artificial intelligence to improve waste sorting, helping users identify the correct bins based on materials.

Jim Andrew, Executive Vice President and Chief Sustainability Officer at PepsiCo, says: "Our progress in 2024 shows that when we embed sustainability into the heart of our company, we not only help strengthen our communities and our planet, we also make our business more resilient."