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.”
📝New Report: Our analysis reveals that @PepsiCo could be exposed to $4.4 billion of climate-related risk per year, by the end of the decade, on its current #emissions trajectory https://t.co/m1ec9PfOJb #ScienceBasedTargets pic.twitter.com/foiKBO1PT8
— Planet Tracker (@planet_tracker) March 1, 2023
