Thursday, October 27, 2016

PepsiCo announces 2025 global sustainability agenda - takes steps toward environmental, health and social priorities

PepsiCo Inc has announced an ambitious global sustainability agenda designed to foster continued business growth by taking important steps to address environmental, health and social priorities all around the world. According to an announcement of the company here on Wednesday, the company's efforts, which focus on creating a healthier relationship between people and food, include specific 2025 goals to continue transforming PepsiCo's food and beverage product portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.


In this context, PepsiCo Chairman and CEO Indra Nooyi said that "to succeed in today's volatile and changing world, corporations must do three things exceedingly well: focus on delivering strong financial performance, do it in a way that is sustainable over time and be responsive to the needs of society."

She said that "the first ten years of PepsiCo's performance with purpose journey have demonstrated what is possible when a company does well by also doing good. We have created significant shareholder value, while taking important steps to address environmental, health and social priorities all around the world." "PepsiCo's journey is far from complete, and our new goals are designed to build on our progress and broaden our efforts," Nooyi continued. "We have mapped our plans against the United Nations Sustainable Development Goals, and we believe the steps we are taking will help lift PepsiCo to even greater heights in the years ahead. Companies like PepsiCo have a tremendous opportunity - as well as a responsibility - to not only make a profit, but to do so in a way that makes a difference in the world."

PepsiCo's Performance with Purpose agenda for the coming decade is focused on three core priorities ie helping to improve health and well-being through the products it sells; protecting our planet and empowering people around the world.

Across its business and in partnership with others, PepsiCo is taking a holistic approach to achieving progress in all three areas. The company's plans have been informed by current scientific research, consumer expectations and dialogue with key stakeholders, as well as by the United Nations' 2030 Agenda for Sustainable Development. In pursuing these goals, the company's actions will be consistent with responsible capital allocation, commitment to its financial targets and the creation of shareholder value. The company believes that achieving these goals will enhance its long-term financial performance and returns.

In the field of products, PepsiCo's ambition is to enable better nutrition at scale by continuing to develop a broader portfolio of food and beverage choices and increasing access to great-tasting, nutritious options. Informed by the latest dietary guidelines of the World Health Organization and other authorities, the company will continue to refine its food and beverage choices to meet changing consumer needs by reducing added sugars, saturated fat and sodium levels in its product portfolio.

Under the company's new goals set for 2025, at least two-thirds of its global beverage portfolio volume will have 100 calories or fewer from added sugars per 12-oz serving. At least three-quarters of its global foods portfolio volume will not exceed 1.1 grams of saturated fat per 100 calories. At least three-quarters of its global foods portfolio volume will not exceed 1.3 milligrams of sodium per calorie. The company also reaffirms its commitment to deliver on its global labeling and responsible advertising to children policies. PepsiCo has and will continue to support industry actions in these areas.

The second area where initiatives have been taken is related to our Planet. PepsiCo's ambition is to reduce the environmental footprint of the food system through operational efficiencies and mobilization of its suppliers and business partners. As part of its focus on protecting the planet, PepsiCo will work to achieve positive water impact; significantly lower its carbon emissions, with significant efforts to reduce emissions related to agriculture and packaging; promote sustainable sourcing of crops; and reduce waste.

Specifically, PepsiCo plans to improve the water-use efficiency of its direct agricultural supply chain by 15 percent in high-water-risk sourcing areas by 2025. These savings equate to the same approximate volume of water used in PepsiCo manufacturing operations. It plans to improve the water use efficiency of its direct manufacturing operations by 25 percent by 2025. This is in addition to the 25 percent improvement in water-use efficiency the company has achieved since 2006 and will include a focus on high-water-risk areas.

With the PepsiCo Foundation and its partners, work to provide access to safe water to a total of 25 million people in the world's highest water-risk areas by 2025, a continuation of efforts that began in 2006. It will reduce absolute greenhouse gas emissions across the company's value chain by at least 20 percent by 2030, with a focus on collaborating with suppliers, business partners and customers to reduce emissions related to agriculture, packaging and transportation.

It will achieve zero waste to landfill across its direct operations by 2025 and reduce the food waste it generates in its direct operations by 50% by 2025. It will design 100 percent of its packaging to be recoverable or recyclable by 2025, while partnering to increase packaging recovery and recycling rates. On the people end the company said that PepsiCo's ambition is to empower people and social development across its operations, supply chain and communities.

PepsiCo plans to expand its Sustainable Farming Initiative (SFI) to approximately 7 million acres by 2025, covering crops that collectively comprise approximately three-quarters of its agricultural-based spend. It will extend the principles of the company's Supplier Code of Conduct to all franchisees and joint venture partners. These principles already apply to PepsiCo's direct suppliers. The company plans to invest $100 million in partnership with the PepsiCo Foundation to support initiatives to benefit 12.5 million women and girls around the world by 2025. PepsiCo's Product, Planet and People goals are more fully discussed in the company's 2015 Sustainability Report, available at www. pepsico.com/purpose.-PR


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