Gulfood Manufacturing 2015, Dubai

PepsiCo: ‘Is sustainability mainstream or faddish?’

By Jenny Eagle contact

- Last updated on GMT

PepsiCo: ‘Is sustainability mainstream or faddish?’

Related tags: Sustainable palm oil, Agriculture, Pepsico

PepsiCo will highlight its sustainability progress across its most significant areas: water, packaging, waste, energy and agriculture at Gulfood Manufacturing 2015, in Dubai, this week (October 27).

Edgar Valladares, director, Environmental Sustainability, PepsiCo Asia, Middle East and North Africa will ask the audience if sustainability is now mainstream or is it ‘still faddish’ (fashionable).

Water & carbon footprint levels for Walkers crisps

Capture

In his discussion, ‘Redefining sustainability of industrial facilities through efficiency’ he will highlight efforts whereby the company has reduced its water use per unit of production in legacy operations by 23% since 2006, exceeding its target of a 20% reduction by the end of 2015.

It is on track with its Roundtable on Sustainable Palm Oil (RSPO) suppliers to achieve 100% traceability to the mill level by 2016.

And it will reduce its water and carbon footprint levels to grow potatoes for Walkers crisps, by half at the end of 2015.

In its 2014 Sustainability Report​, the company says it relies on water; to grow raw materials for its products, to enable its manufacturing processes, and to serve as the key ingredient for most of its beverages.

It launched a global water strategy in 2009 and today this is implemented through watershed management, conserving water within its operations, reducing water use across its agricultural supply chain and helping to provide access to safe water within communities.

7% of waste to landfill

By the end of 2014, we reduced our water use per unit of production in legacy operations by 23% since 2006, exceeding our target of a 20% reduction by the end of 2015 and delivering cost savings of approximately $17m in 2014. Through the PepsiCo Foundation, we also met our 2015 goal of partnering to provide access to safe water to 6 million people a year early​,” said Indra Nooyi, chairman/CEO, PepsiCo in the report.

Factbox

Water:​ During 2014, PepsiCo and other companies endorsing the UN Global Compact CEO Water Mandate developed a guide for aligning corporate water stewardship with the corporate responsibility to respect the human right to water and sanitation.

Supply chain:​ In 2014, it continued to work with farmers to develop effective water management plans for addressing water risk and share best practice water-efficient drip irrigation methods.

Operations:​ During 2014, it decreased absolute water use by approximately 1bn litres and realized approximately $17m in cost savings.

Watersheds:​ In 2014, PepsiCo India worked with five townships to identify water-saving programs, including check dams, traditional wells and recharge ponds, benefiting the livelihoods of more than 50,000 people

Communities:​ In 2014, the PepsiCo Foundation worked with its partners to help local communities in Mexico, Brazil, Jordan, China, Colombia and India better manage and efficiently use water.

In 2014, the company sent approximately 7% of its waste to landfill (93% diverted), which surpassed its goal of recycling and reusing 90% of its waste, and resulted in estimated savings of $3.5m compared to 2009.

It has also made progress in holding GHG emissions for legacy Operations flat against a 2008 baseline despite production volume growth.

Through best practice programs like ReCon and pursuit of greener fleet initiatives, it has improved the energy efficiency of its legacy operations by nearly 16% compared with its 2006 baseline.

While we remain committed to ongoing energy efficiency in our own operations, we know the biggest impact we can have on reducing GHG emissions is by continuing to work with suppliers along our value chain​,” added Nooyi.

SFI Guidelines

To set standards of sustainability performance for the agricultural products on which PepsiCo depends, we have developed a Sustainable Agriculture Policy, supported by our Sustainable Farming Initiative (SFI)​.

The SFI guides our suppliers in sustainable farming practices and provides them with resources, training and support to meet our social, economic and environmental standards​.”

In 2014, the SFI expanded its global coverage, with implementation across 11 countries, to nearly 600 growers of potatoes, corn and citrus (up from 500 in 2013), covering in excess of 450,000 acres of direct cropping land (compared to 360,000 in 2013).

It is also committed, through the RSPO, to purchase 100% RSPO-certified sustainable palm oil for its products by 2015 and working with its suppliers to achieve 100% traceability to the mill level by 2016.

It has been working with farmers in water-stressed areas of the UK to reduce the carbon footprint and water used to grow potatoes for its Walkers crisps by half over a five-year period. It is on target to reach its water and carbon footprint goals by the end of 2015.

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