How fast will they turn green?
Today's Fun Fact
One of every four drinks consumed in America today is a soft drink.
Here's what you need to know before the US markets open.
What to expect in today's market 🕒
Campbell Soup Company Earnings (CPB)
Gamestop Corp. Earnings (GME)
Thor Industries Inc. Earnings (THO)
United Natural Food Inc. Earnings (UNFI)
PepsiCo: Go Green!
PepsiCo (PEP) has been working hard to advance sustainability programmes that "feel true" to its brands and customers, including sports collaborations that simultaneously benefit people and the environment. The company is deemed to be a market leader in the environmental, social, and governance (ESG) space.
Goals!
The company introduced PepsiCo Positive, a strategic sustainability and governance plan centred on three pillars: agriculture, value chain, and choices; the consumer packaged goods firm expanded that commitment in 2021. The business, which has been featured on the list every year since 2009, was also named second on 3BL Media's 2022 list of the 100 Best Corporate Citizens.
PepsiCo Positive seeks to promote growth both within the company and across the consumer packaged goods (CPG) sector. The company has also set high sustainability targets, aiming to achieve net-zero emissions by 2040 and 100% recyclable, reuse, compostable, and biodegradable packaging by 2025.
As investors, suppliers, stakeholders, and clients demand more sustainability pledges; the company is increasing its ESG commitment. Due to droughts and rising temperatures, the CPG industry is also under pressure. Governance is essential to this because it makes sure businesses are accountable by requiring them to set goals, monitor performance, and report to stakeholders.
What has been achieved so far?
To create a more sustainable food system, PepsiCo issued a $1 billion green bond in 2019 with an emphasis on better packaging, supply chain decarbonization, and water sustainability. PepsiCo distributed $858 million of the bond by the year 2020, which has reduced greenhouse gas emissions, water use, and energy efficiency.
The company achieved 100% renewable electricity across its US operations in 2020, which happens to be the company’s largest market, and PepsiCo further aims to spread it to 15 other nations. PepsiCo started the Racial Equity Journey in 2020 with a goal of investing $570 million over the following five years to support Black and Hispanic communities and businesses. PepsiCo also made a commitment to boost opportunities for women in the workforce by committing $100 million through 2025.
PepsiCo has also pledged to increase the percentage of drinks in reusable packaging from the current 10% to 20% by the end of the decade. Early this week, the company received the delivery of electric Semi trucks from Tesla. PepsiCo stated on its website that the business "placed an initial reservation for 100 all-electric Class 8 tractors from Tesla" as the company "continuously examines innovative technologies that will position us for the future."
As of yesterday, the company is reportedly eliminating staff at its headquarters, indicating that cost-cutting measures go beyond the internet and media industries. Pricing helped offset volume declines in several areas, particularly Frito-Lay North America, which led to revenue for the third quarter increasing by 9% and leading the company to hike its forecast for the year on the performance.
With the newer generation wanting to associate with brands that have solid sustainability measures, PepsiCo seems to be one such brand. However, at the end of the day, the company’s performance is what’s going to drive its shares.
Market Reaction
PEP ended at $181.63, down 0.81%.
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