PepsiCo, ADM Partner to Reduce Carbon Intensity by Supporting Regenerative Agriculture Practices
Revolutionary strategic partnership between two global companies, with footprints extending from the farm gate to iconic foods and beverages, provides opportunity to scale regenerative agriculture
ADM, a global leader in sustainable agriculture and nutrition, and PepsiCo announced a groundbreaking 7.5-year strategic commercial agreement to closely collaborate on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains. The strategic partnership is expected to reach up to 2 million acres by 2030, and represents an effort by two global companies that share ambitious carbon reduction goals. The companies’ capabilities span the food and agriculture value chains, creating a unique, large-scale platform to support farmers’ transition to regenerative agriculture, while building their resilience to climate change.
The long-term agreement will initially enroll corn, soy and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska, with the opportunity for future expansion, to increase visibility across the value chain and integrate a range of multi-year farmer-first regenerative agriculture initiatives, including cover crops, reduced tillage, nutrient management, diverse rotations, and responsible pesticide use. The companies plan to share resources and collaborate to create value throughout the supply chain by providing participants with technical and financial assistance, offering access to peer regenerative farming networks, hosting educational field days, and tracking results using trusted, third-party measurement systems.
Reaching the strategic partnership’s goals could eliminate 1.4 million metric tons of greenhouse gasses – equivalent to the amount of electricity used to power 275,000 homes per year – at the farm level, while creating meaningful shared value directly for farmers.
pep+ is PepsiCo’s strategic, end-to-end business transformation with sustainability and human capital at the center of how the company will create growth and value. As part of those ambitions, the company is working to spread regenerative practices across 7 million acres of land by 2030 — an area approximately equal to its entire agricultural footprint – and striving to achieve net-zero emissions by 2040.
ADM’s Strive 35 sustainability goals include reducing absolute greenhouse gas emissions by 25%, energy intensity by 15%, water intensity by 10%, and achieving a 90% landfill diversion rate by 2035 against a 2019 baseline. In 2021, ADM additionally committed to a new, aggressive environmental goal to reduce Scope 3 greenhouse gas emissions 25% by 2035 while accelerating its target date to achieve a completely deforestation-free supply chain from 2030 to 2025. The company has also committed to work with the Science Based Targets Initiative with the aim of obtaining approval of its climate targets and alignment with ambitious global goals to limit rising temperatures to 1.5 degrees Celsius.
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