Financial think tank Planet Tracker’s analysis of this CA100+ company reveals that PepsiCo could be exposed to USD 4.4 billion of climate-related risk per year, by the end of the decade, on its current emissions trajectory.

Surprisingly, the food and beverage giant fails to disclose the material financial impact associated with potential Carbon Pricing Mechanisms (CPMs) linked to its Scope 3 emissions, despite these accounting for more than 90% of the company’s overall emissions by 2030.

The report also reveals that unless future emissions are mitigated, PepsiCo will miss its Science-Based targets (SBTs) by 58%. Under the Science-Based Targets initiative’s framework, the company is committed to ambitious goals including reaching net zero by 2040, a decade before the Paris Agreement deadline, and align with a 1.5°C pathway by 2030.

The company’s greenhouse gas emissions, according to Planet Tracker’s research, grew historically (2019 to 2021) at an average annual rate of 7.2%, while the company’s revenue increased at a compound annual growth rate of 8. 8%.

Taking this efficiency improvement into consideration and assuming a long term revenue growth of 4.8%, Scope 1, 2 and 3 emissions would decline by 14% compared to their 2021 level, while the SBT recommends a 45% reduction versus the 2021 baseline. This implies , the company aligns with a 2°C pathway by 2030.