PepsiCo Steps Up ESG Focus in India Across Water, Farming and Packaging
PepsiCo’s 2025 ESG update highlights its sustainability initiatives in India across regenerative agriculture, water conservation, circular packaging, cleaner mobility and nutrition. The company works with around 36,000 farmers, has expanded digital farming and micro-irrigation, reduced water use at Pune, increased recycled packaging and shifted more of its portfolio towards low- and zero-sugar beverages.
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PepsiCo has reported progress on its environmental, social and governance (ESG) agenda, with its India operations focusing on regenerative agriculture, water conservation, circular packaging, cleaner transportation and nutrition as part of its broader PepsiCo Positive (pep+) strategy.
In its 2025 ESG Performance Update, the company said regenerative, restorative and protective farming practices have been expanded to 4.7 million acres across more than 60 countries. Globally, PepsiCo has also achieved 100% water replenishment at company-owned facilities in high-water-risk areas and reduced virgin plastic use in primary packaging by 6%.
In India, PepsiCo said its food value chain initiatives cover farmers, natural resources, manufacturing, packaging, logistics and consumers. The company works with approximately 36,000 farmers across 14 states and sources 100% of its chip-grade potatoes locally.
Technology is being used to improve farm productivity and resource efficiency. Under its Mitti Didi initiative, farmers receive soil-health diagnostics and real-time farming insights, while the Lay’s Smart Farms programme, developed with Cropin, covers more than 18,000 mapped acres and provides insights to over 7,000 farmers.
PepsiCo said micro-irrigation has reached 100% adoption across potato farms in key sourcing regions, covering more than 2,300 acres in Uttar Pradesh.
Water conservation is another major focus. The company said its Sustainable Water Resource Development and Management programme replenishes more than 100% of the water used at manufacturing facilities located in high-water-risk areas. At its Pune facility, water utilisation has been reduced by more than 90%. Globally, PepsiCo said it has replenished 23 billion litres of water into local ecosystems since 2010 and reached around 97 million people with safe water access.
On packaging, PepsiCo India said it complies with Extended Producer Responsibility requirements for its foods and beverage businesses. It is adopting mono-material and polyolefin-based structures for food packaging and has moved to 100% recycled PET (rPET) bottles for select beverage products.
The company said biomass accounts for 97% of its fuel mix in India. It is also expanding electric mobility through the Kosi–Pataudi EV Green Corridor, operated in partnership with Kalyani Powertrain Limited and Vayudoot Road Carriers. The corridor currently uses 13 32-foot electric container trucks, covering around 600,000 electric kilometres annually.
PepsiCo India has also retrofitted more than 800 vehicles, including distributor-linked last-mile delivery vehicles, as part of its cleaner mobility initiatives.
On nutrition, the company said more than 50% of its beverage portfolio by volume in India is now low- or zero-sugar. It is also expanding offerings such as baked snack variants and millet-based products.
PepsiCo Chief Sustainability Officer Jim Andrew said the company was integrating sustainability into its operations, innovation and growth strategy. PepsiCo India Chief Corporate Affairs Officer and Sustainability Head Yashika Singh said the company views the resilience of farmers, communities, natural resources and consumers as interconnected with business resilience.
