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PepsiCo Pioneers Sustainable Water Technologies

Date: 18 July 2011

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8 pages, 4 figures

EXECUTIVE SUMMARY

This report provides CSOs and VPs of sustainability with an independent analysis of PepsiCo’s sustainability strategy. To understand how firms exposed to water risk are defining their sustainability programme, Verdantix selected PepsiCo, a $57.8 billion global food and beverage firm, for a case study. We interviewed senior members of PepsiCo’s sustainability team and analysed data from corporate sustainability reports and submissions to the Carbon Disclosure Project. Verdantix analysis finds that PepsiCo’s sustainability strategy not only prioritizes water conservation, but also sets targets on GHG emissions intensity, sustainable packaging and waste. PepsiCo has also incorporated detailed sustainability criteria into the capital expenditure filter that is applied to expenditure requests over $5 million. PepsiCo UK & Ireland’s ambitious Path to Zero programme is a chance for the firm to stake out a leading position in the industry, but PepsiCo needs to identify greater commercial benefits to justify the business case for sustainability transformation.

TABLE OF CONTENTS

PEPSICO PIONEERS SUSTAINABLE WATER TECHNOLOGIES
PepsiCo Outlines Ambitious Sustainability Targets
PepsiCo’s Sustainability Initiatives Focus on Water And Innovation
PepsiCo Needs To Identify How To Achieve Transformational Change

TABLE OF FIGURES

Figure 1. Intensity-Based Targets Focus On Water, Energy And Waste Efficiency
Figure 2.
PepsiCo’s Sustainability Initiatives Aim For Brand Enhancement
Figure 3.
GHG Intensity Contracted While Absolute GHG Emissions Increased
Figure 4.
Water Intensity Decreased By 6.4% CAGR Between 2006 And 2009

ORGANIZATIONS MENTIONED

Coca-Cola, Frito-Lay, Lebedyansky, PAS, PBG, PepsiCo, PepsiCo UK & Ireland, Quakers Oats, Red Sky, Tropicana, Unilever, Walkers, Wal-Mart