PepsiCo has openly acknowledged the challenges it faces in achieving its 2025 sustainability targets, particularly concerning packaging. In their 2023 ESG report, the company revealed it's unlikely to achieve the goal of making 100% of its packaging recyclable, compostable, biodegradable, or reusable by 2025. Instead, PepsiCo now projects reaching 98% by 2030, with 92% of its packaging intended to be recyclable, compostable, biodegradable, or reusable based on current end-of-life solutions.

"This current projection falls short of our 100% goal, but we remain committed to innovating, investing, and forming partnerships to progress further," stated the report.

In 2023, PepsiCo's packaging composition comprised 34% fiber, 31% PET, 10% glass, 8% aluminum, and 5% flexible plastic films, with an additional 12% falling under an "other" category. The company used approximately 2.6 million metric tons of plastic in its packaging, reflecting a 6% increase in the use of virgin plastic. PepsiCo aims to reduce its use of virgin plastic by 20% by 2030.

PepsiCo is among several CPG companies, including Colgate-Palmolive and Unilever, that have acknowledged potential shortfalls in meeting 2025 sustainability targets. Colgate-Palmolive noted in its recent ESG report a similar challenge in achieving full recyclability, reusability, or compostability of packaging by 2025, reaching 89.5% by the end of 2023. Concurrently, Unilever has adjusted its plastic packaging targets due to progress discrepancies.

Additionally, on a legal front, the city of Baltimore has filed a lawsuit against PepsiCo, The Coca-Cola Co., and others, attributing them with substantial roles in aggravating the plastic pollution crisis. This follows a lawsuit initiated by the New York attorney general against PepsiCo in November, accusing the company of harming the environment and public with its single-use plastic packaging.