PepsiCo and Yara Expand Low-Carbon Fertilisers

Pilot projects show emissions cuts of up to 40% as food groups seek to curb supply chain footprint

2 Mar 2026

PepsiCo and fertiliser producer Yara are expanding a partnership to scale the use of lower-carbon fertilisers and digital crop tools, as large food companies seek to reduce emissions in their agricultural supply chains.

The initiative focuses on nitrogen fertiliser, whose production and use account for a significant share of global greenhouse gas emissions. The companies are deploying fertilisers manufactured using cleaner energy and carbon capture technologies, alongside digital platforms designed to optimise nutrient application and limit waste.

PepsiCo said the programme supports its target of reaching net zero emissions by 2040 under its “pep+” strategy. Agriculture represents a substantial part of the group’s carbon footprint, particularly in potato farming for its snack brands.

Pilot projects in potato production systems in parts of Europe have delivered emissions reductions of between 20 and 40 per cent per tonne in selected regions, while maintaining crop yields. The figures relate to specific trials rather than global averages, highlighting both the potential impact and the need for broader rollout.

Following the European pilots, similar programmes are under way in parts of Latin America. The companies describe the expansion as phased, with adjustments for regional growing conditions and local farming practices, rather than a single global deployment.

For Yara, the partnership forms part of a wider strategy to cut emissions from fertiliser production and promote what it describes as climate-smart agriculture. The group has invested in lower-emission manufacturing processes and digital agronomy tools, aiming to shift fertiliser from a standard commodity input to a product differentiated by its carbon footprint.

The collaboration comes as multinational food and drink companies incorporate climate targets into procurement standards. Analysts say such requirements are pushing suppliers to provide measurable emissions reductions across the value chain.

Lower-carbon fertilisers remain more costly than conventional alternatives, and scaling production will require continued investment. However, with regulatory pressure increasing and corporate climate pledges tightening, demand for lower-emission agricultural inputs is expected to grow.