PepsiCo APAC Partners with Envision for Low-Carbon Fertilizer Credits

The partnership targets the fertilizer industry, a sector traditionally reliant on carbon-intensive ammonia production from coal and natural gas. Under the deal, Envision will supply certificates generated by its Chifeng Net Zero Industrial Park—the world's largest green hydrogen project—through 2030. These attributes are expected to represent a reduction of approximately 5,000 tonnes of CO2 equivalent, aiding PepsiCo’s goal of achieving net-zero emissions by 2050.

To bridge the gap between production and demand, the companies are utilizing a Book & Claim model, similar to systems currently employed in sustainable aviation fuel markets. This approach allows PepsiCo to claim the environmental benefits of low-carbon ammonia produced in Chifeng without the cost or carbon footprint associated with long-distance physical transport. The S3 Markets registry manages the chain of custody, ensuring that each certificate is backed by verified production and audit trails.

Fred Li, Supply Chain Senior Vice President at PepsiCo APAC & Greater China, noted that fertilizer emissions remain a fragmented and difficult challenge to tackle within food value chains. By leveraging these digital certificates, the company can address upstream agricultural inputs while maintaining its current procurement arrangements. Envision Energy views the deal as a template for future commodity-linked markets, where environmental attributes provide a flexible, cost-effective pathway for downstream brands to decarbonize their operations.