PepsiCo APAC has announced a new collaboration with Envision Energy that aims to reduce emissions associated with fertiliser production, highlighting the growing role of low carbon ammonia in the transition towards more sustainable agricultural supply chains. The agreement demonstrates how organisations are beginning to tackle one of the most challenging sources of Scope 3 emissions by focusing on the materials and inputs that sit upstream of their operations.
Under the agreement, Envision will provide PepsiCo APAC with Environmental Attribute Certificates (EACs) linked to low carbon ammonia produced at its Chifeng Net Zero Industrial Park in China between 2026 and 2030. Rather than physically transporting the ammonia, the partnership uses a Book and Claim model, allowing the environmental benefits of verified low carbon production to be transferred independently of the product itself. The certificates are managed through S3 Markets, providing an auditable system for tracking and retiring the associated emissions reductions.
While ammonia is best known as a key ingredient in nitrogen fertilisers, its production remains highly carbon intensive, traditionally relying on coal or natural gas. As agriculture and food manufacturers seek to reduce emissions across their value chains, attention is increasingly turning towards lower carbon alternatives that can be integrated without disrupting existing farming practices.
The partnership reflects a broader shift in how businesses are approaching supply chain decarbonisation. Rather than waiting for entirely new infrastructure or global supply networks to mature, organisations are beginning to explore market based mechanisms that enable emissions reductions today while supporting the long term development of low carbon technologies.
Book and Claim systems have already gained traction in sectors such as sustainable aviation fuel, where physical supply remains limited. Applying the same principle to green ammonia could help accelerate investment in lower carbon fertiliser production by creating demand before dedicated distribution networks are established. If adopted more widely, similar approaches could support decarbonisation across a range of hard to abate industries where supply chains remain complex and geographically dispersed.
For logistics and supply chain professionals, the announcement reinforces the importance of looking beyond transport emissions alone. Achieving meaningful reductions in Scope 3 emissions increasingly requires collaboration across the entire value chain, from raw material production through to manufacturing, distribution and end use. As businesses face growing expectations around transparent carbon reporting, partnerships that connect producers, manufacturers and customers will become an increasingly important part of delivering credible decarbonisation strategies.
At Shape Tomorrow, we believe the future of sustainable logistics depends on collaboration across supply chains, practical innovation and the willingness to explore new approaches to reducing emissions. Partnerships such as this demonstrate how businesses are finding new ways to address complex sustainability challenges while laying the foundations for long term change.
Conversations like these are happening every day through the SLL Britehub community, where logistics, procurement and sustainability professionals come together to share insights, explore emerging technologies and collaborate on the challenges shaping the future of supply chains. Join the growing community now: SLL Community Portal | Sustainable Logistics Network