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PepsiCo Puts Profits at Risk Over Diluted Transition Plan

Analysis from financial think tank Planet Tracker has found that food and beverage giant PepsiCo’s climate transition plan fails to align with its 1.5°C pathway by 2030 – putting its operating profits at high risk. Based on the findings, PepsiCo is exposed to a potential financial risk of US$4.4 billion per year, by the end of the decade, or 42% of its three-year annual operating profit. According to the company’s current emissions trajectory and sparse data reporting, the plan aligns the business with a 2°C warming scenario by 2030 and is on path to miss targets set by the Science-Based Targets initiative by 58%. “The potential climate-related financial risk PepsiCo is exposed to is too high to ignore. Expected Carbon Pricing Mechanisms could reduce its annual operating profit by 26% by the end of the decade, with an additional 16% reduction coming from physical risk,” Ion Visinovschi, Research Analyst at Planet Tracker, said. “Investors and lenders should demand a credible climate transition plan where the risk of its main source of emissions is publicly quantified and the expected mitigation quantities and required investment for the mitigation is fully disclosed.”

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