PepsiCo and Walmart announced a seven-year collaboration to invest $120 million in U.S. and Canadian farms to improve soil health and water quality.
The funds will go towards the establishment and scaling of financial, agronomic, and social programs.
They aim to enable and accelerate the adoption of regenerative agriculture practices on more than 2 million acres of farmland by 2030.
This will result in approximately 4 million metric tons of GHG emission reductions and removals – roughly equivalent to the amount of electricity required to power 778,300 homes for one year.[1]
PepsiCo and Walmart rely on farmers for essential ingredients in their products. With a North American supply chain involving critical crops like potatoes, oats, corn, wheat, soybean, and rice, sustainability varies across commodities, regions, and farms.
The collaboration between PepsiCo and Walmart offers a voluntary, flexible approach to regenerative agriculture, allowing farmers to participate and recognize the diversity of agriculture.
“Successful sustainability starts and ends with trust. At PepsiCo, we work very hard to earn the trust of the farmer so they understand that we are investing in their legacy and they can hand their farm down to the next generation,” said Jim Andrew, Chief Sustainability Officer, PepsiCo.
“Farmers know their business better than anyone else, and what we hear from them is that for regenerative agriculture to make business sense, three things need to happen. They need economic support, social and cultural support, and agronomic support. This strategic collaboration with Walmart will advance our shared goal to have farmers’ backs as they transform farming in a way that benefits the planet and people,” Jim added.
PepsiCo and Walmart are working together to support farming communities, improve soil and water health, and lower carbon emissions.
PepsiCo, the largest North American food and beverage company, prioritizes a resilient food system to achieve its pep+ goals.
These include adopting regenerative agriculture practices across 7 million acres by 2030, reducing absolute GHG emissions by 40% across the entire value chain by 2030, and aiming for net-zero emissions by 2040.
“This effort is a new model for PepsiCo, marking our first, large-scale strategic collaboration focused on sustainable agriculture with a retail partner,” said Steven Williams, Chief Executive Officer, PepsiCo Foods North America.
“Farmers are critical to our business, and many of the brands our consumers know and love rely on ingredients that we source straight from the farm. By joining forces with Walmart, we’ll be empowering farmers through education, upfront investment in outcomes, peer coaching, and cost-sharing – and hopefully inspiring others to join us,” added Steven.
This initiative illustrates how Walmart is prioritizing collaborations to accelerate regenerative practices adoption, aiming to protect 50 million acres of land and 1 million square miles of ocean by 2030 in collaboration with the Walmart Foundation.
“At Walmart, our sustainability strategy is built to make the everyday choice the sustainable choice for our customers,” said Jane Ewing, Senior Vice President for sustainability at Walmart.
“This collaboration with PepsiCo is a great example of how we are prioritizing the expansion of regenerative agricultural practices among farmers across North America so that we can continue to make quality products affordable and accessible for customers. This collaboration aims to help elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands,” she added.
References
- Walmart Inc., ‘PepsiCo and Walmart Aim to Support Regenerative Agriculture Across More than 2 Million Acres of Farmland’, 26 July 2023, https://corporate.walmart.com/newsroom/2023/07/26/pepsico-and-walmart-aim-to-support-regenerative-agriculture-across-more-than-2-million-acres-of-farmland[↩]
