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PACKAGING

Our wide portfolio of products requires an equally wide range of packaging materials, and we’re committed to enabling circular solutions. From removing material in packaging and using more recycled content, to designing all our packaging to be recyclable or compostable, we are on a mission to eliminate packaging waste.

Packaging Goals

100%

Convert 100% of packaging to be recyclable or compostable by 2025

30%

Use 30% post-consumer recycled content across our packaging portfolio by 2025

25%

Use 25% post-consumer recycled content across our plastic packaging portfolio by 2025

20%

Achieve 20% virgin plastic reduction across our plastic packaging portfolio by 2025

Sustainable Design

We are continually innovating our packaging designs and processes to reduce our total material usage and incorporate materials that are accepted for recycling and highly valued by end-markets. For example, all of our K-Cup® pods are now made with recyclable plastic, an important milestone we achieved at the end of 2020. In addition, we are committed to increasing our use of post-consumer recycled content in our packaging. Our Core Hydration, 16 oz. Snapple and 500 mL Aguafiel brands are transitioning to bottles made of 100% recycled (rPET) plastic, which is expected to eliminate approximately 47.5 million pounds of virgin plastic used by KDP annually.

Driving Circularity for Plastics

Improving packaging solutions for product quality, consumer use, recoverability and reuse requires collaboration of all players along the value chain. Using our strength in forming partnerships, we collaborate closely with a number of stakeholders – including industry groups, NGOs and investment firms – to move our commitments beyond independent ambitions to collective action. In 2020, we co-founded and became the largest funder of The Recycling Partnership’s Polypropylene Recycling Coalition. The goal of the Polypropylene Recycling Coalition is to increase curbside access for polypropylene, ensure recyclers can successfully sort for it in their facilities and maintain vibrant and robust end-markets to supply this highly valuable recycled material in the U.S. In addition, we co-founded the Every Bottle Back initiative with industry peers, a collective under the leadership of the American Beverage Association, aimed at reducing the beverage industry’s plastic footprint. This $100 million industry-funded investment will be triple matched with additional grant and investment dollars and used to increase and optimize recycling access, education and infrastructure for beverage bottle recycling in the U.S.

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CLIMATE

We’ve set climate targets across our value chain that will reduce our greenhouse gas emissions while building climate resiliency. The goals are approved by the Science Based Targets initiative and align with the reductions required to meet the Paris Agreement goal of keeping global warming well below 2 degrees Celsius.

Energy & Emissions Goals

100%

Obtain 100% of electricity from renewable sources by 2025

30%

Reduce Scope 1 and 2 emissions by 30% by 2030

15%

Reduce Scope 3 emissions in select categories by 15% by 2030

50%

Engage bottlers and select suppliers representing 50% of our Scope 3 emissions to set science-based emissions targets by 2024

Driving Down Fleet Emissions

With thousands of vehicles in our North American transportation fleet, we have an unrivaled distribution network designed to deliver beverages to consumers anytime, anywhere they need them. This is a critical component of our business—and a critical area for reducing our emissions. From replacing older vehicles with newer, more efficient ones, to making our routing more efficient for reduced mileage, we’re committed to lessening our impact while serving our customers. As an example, in Mexico, we converted 90% of our car fleet to liquefied petroleum gas in 2019. This change in fuel type resulted in an estimated 23% reduction in greenhouse gases and 85% reduction in carbon monoxide for this fleet.

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WATER

Water is a vital natural resource and fundamental to our beverages. Because it’s the primary ingredient in most of our beverages, we have a great responsibility to be strategic in how we use it, recognizing it is a shared resource. That’s why we strive for water efficiency in our operations while implementing community water stewardship and restoration projects.

Water Goals

100%

Partner with our highest water-risk operating communities to replenish 100% of water used for our beverages in those communities by 2025

20%

Improve our water use efficiency by 20% by 2025

Restoring Watersheds in Texas

Through our multi-year partnership with The Nature Conservancy (TNC), we teamed up in 2020 to invest in the Trinity River watershed, the largest river basin whose watershed area is entirely within the state of Texas and the third largest river in Texas by average flow volume. Through this investment, TNC Texas successfully executed a model environmental water transaction, securing a water lease agreement for 444 million liters of water to restore environmental flows during critical drought periods for the benefit of fish and wildlife habitat. Looking forward, TNC is using the data and tools developed in 2020 to scale-up the capacity and support for environmental water transaction and flow restoration in the Trinity and San Jacinto basins and beyond.

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WASTE

We’re finding new ways to use fewer resources across our business through comprehensive waste management within our production network and corporate facilities. We continually rethink how we dispose of waste, aiming to reduce, reuse, and recycle 100% of our operational waste.

Waste Goal

Zero

Send zero waste to landfill across our operations by 2025

Reducing Waste From the Ground Up

Three of our newest facilities in the U.S. were designed with a strong focus on sustainability. These include our new co-headquarters at The Star in Frisco, Texas, a K-Cup pod manufacturing facility in Spartanburg, South Carolina, and a cold beverage manufacturing facility in Allentown, Pennsylvania. Our new co-headquarters in Frisco, Texas, is pursuing LEED certification. Not only will it have features like receptacles and signage to reduce waste, but recycled content will be incorporated into the furniture, design elements, and other features throughout the complex. Our Spartanburg facility is equipped with a “sustainability room” that moves all waste from the facility to be recycled, reused, repurposed or converted to energy. With this and many other sustainable features, it was named the Largest Industrial Manufacturing Facility certified under LEEDv4 BD+C in North America in July 2020. Our Allentown facility was named Food Engineering magazine’s 2021 Plant of the Year in part due to innovative design solutions that support the Company’s sustainability commitments.

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