Food and beverage giant PepsiCo and agricultural and industrial chemicals company Fertiberia announced the signing of a multi-year agreement aimed at scaling the use of low-carbon, green hydrogen-based fertilizers across PepsiCo’s European agricultural supply chain. Globally, fertilizers account for approximately 2% of greenhouse gas emissions. PepsiCo said that fertilizer production and use currently represents around […]
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PepsiCo to Deploy Green Hydrogen-Based Fertilizer to Decarbonize European Food Supply Chain - ESG Today
Abatify Summary
Nature & Climate Perspective
**The transition to green hydrogen-based fertilizers significantly mitigates the upstream greenhouse gas intensity of agricultural ecosystems by eliminating fossil-fuel-derived ammonia. **
- Reduces the carbon intensity of potato cultivation, directly lowering the Scope 3 footprint of primary agricultural production without altering land-use patterns.
- Optimizes nitrogen application through 'Impact' plant nutrition, which potentially reduces nitrous oxide (N2O) emissions, a GHG nearly 300 times more potent than CO2.
- Promotes long-term environmental stability by decoupling food production from the environmental degradation associated with natural gas extraction and the Haber-Bosch process.
Market & Policy Outlook
**This partnership exemplifies a shift toward physical abatement of Scope 3 emissions in alignment with SBTi FLAG guidance, prioritizing supply chain intervention over external carbon offsets. **
- Strengthens corporate compliance with the EU's Farm to Fork strategy and the Corporate Sustainability Reporting Directive (CSRD) by providing granular, primary-source data on decarbonization.
- Creates a price signal for green hydrogen in the industrial sector, fostering financial liquidity for hydrogen-based technologies that currently struggle with 'green premiums.'
- Aligns with ICVCM Core Carbon Principles regarding 'Additionality' and 'Robust Quantification' by proving that corporate investment can drive the adoption of nascent, high-cost decarbonization technologies.
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