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PepsiCo Turns to Waste-Based Thermoplastic for a Sustainable Supply Chain

(Credit: PepsiCo)

PepsiCo is expanding its use of UBQ across its supply chain with the launch of eco-friendly Lay’s display stands throughout Europe. The stands are manufactured by UBQ Materials, a climate tech developer of advanced materials made from waste.

Following PepsiCo’s successful pilot incorporating UBQ to reduce the carbon footprint of shipping pallets, the company is deepening its collaboration with UBQ in additional categories across the supply chain. The new Lay’s Chips displays will be made in part with UBQ substituting conventional oil-based plastics.

UBQ is a bio-based thermoplastic, made from 100% unsorted household waste, including all organics. Use of the product diverts waste from landfills and incineration, preventing emissions from being released into the environment. The company claims that for every ton of UBQ produced, up to 12 tons of CO?eq are prevented from polluting the environment.

Beyond the new product extension, PepsiCo has also expanded on the initial logistics pilot, ordering 30 thousand more shipping pallets made with UBQ. These pallets also feature recycled PP resin and recycled BOPP – the plastic film used in the company’s snack packaging – to complete the circular economy cycle.

PepsiCo’s technology venture arm, Pepsi Labs, identified UBQ Materials as an anchor solution supporting PepsiCo Positive (pep+) transformation, which places sustainability and human capital at the center of how it will create growth and value.

Following a round of investment led by TPG Climate Rise, UBQ Materials is expanding globally with a large-scale facility and state of the art lab in Bergen Op Zoom, Netherlands, enabling the advanced materials company to further localize waste to production cycles across Europe.

Along with five other solutions innovators, UBQ Materials was recently selected to advance PepsiCo’s sustainability agenda, as the company works to reduce Scope 1 and 2 emissions by 75 percent by 2030, a goal which is on track according to PepsiCo’s ESG Summary released earlier this month.

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