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PepsiCo CEO says sustainability debate must be reframed
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Wednesday, 28 January, 2026, 08 : 00 AM [IST]
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Davos, Switzerland
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PepsiCo chairman and chief executive officer Ramon Laguarta called for a fundamental shift in how corporations frame sustainability discussions during a panel at the World Economic Forum’s annual meeting in Davos, saying the focus should move beyond pitting sustainability against profitability to thinking in terms of short-term versus long-term cost and risk.
Laguarta emphasised that the sustainability debate must evolve to recognise that long-term business growth depends on maintaining natural resources rather than depleting them, framing environmental stewardship as integral to future profitability rather than an expense.
Laguarta pointed to PepsiCo’s PepsiCo Positive (pep+) program — the company’s holistic sustainability strategy introduced in 2021 — as an example of how environmental goals can be integrated into business operations with clear pillars, governance mechanisms and measurable targets. He noted that the company has recently reset parts of that strategy to better align with global realities, including revising its net-zero target date from 2040 to 2050 and updating baseline emission years.
The CEO acknowledged that PepsiCo’s 2023 sustainability report revealed the company was unlikely to meet its original 2025 goals, prompting a recalibration of its approach that now includes updated 2030 emission reduction targets and differentiated tracking of scope 3 emissions across energy, industry and agricultural categories.
Laguarta also underscored the need to scale sustainable agriculture, stressing greater collaboration between public and private sectors to support farmers in adopting more regenerative practices that improve soil health, conserve water and reduce input usage. “This is not about everyone doing the little thing,” he said, urging collective action and accountability to address complex sustainability challenges at scale.
His comments align with broader themes emerging at Davos this year, where global leaders have highlighted sustainability as both a strategic risk and growth opportunity for corporations navigating environmental and economic pressures.
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