Corporations being held responsible Source: Globescan 2007 Average of 25 companies Operational Responsibilities Citizenship Responsibilities
Our Sustainability Vision <ul><li>“ Performance with Purpose is at the foundation of every aspect of our business. Indeed, financial achievement can and must go hand-in-hand with sustainability. We integrate a commitment to human, environmental and talent sustainability into all of our operations. Doing so creates a blueprint for PepsiCo to develop, manufacture and sell our products in a sustainable way, gives us a competitive advantage in markets all over the world, which in turn drives long-term growth.” </li></ul>PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today.
Delivering Performance with Purpose Attract, retain and develop world-class talent Be responsible stewards of our planet’s resources Nourish consumers with a range of products
PepsiCo intends to nourish our Consumers Reformulate to improve nutritional profile <ul><li>Offer a variety of great-tasting foods and beverages </li></ul>Launch healthier, nutritious foods and beverages Act as a responsible company to help address obesity
PepsiCo: Portfolio Transformation Sunbites baked wheat snacks (Spain, Portugal) PepsiCo merges with Quaker and Gatorade Frito-Lay removes trans fats (US) Quaker Oats with Omega-3 (Mexico) Sun Chips baked apple chips (Mexico) Walkers Crisps reduces saturated fats (UK) Flat Earth Crisps (US) PureVia all-natural, zero calorie sweetener, (Latin America) Tropicana light orange juice (US) H 2 Oh! (South America) True North all-natural nut snacks (US) Tropicana Smoothie (UK) Quaker High-Fiber cookie (Mexico) Cheetos Whoosh made whole grains and vegetables (India) PepsiCo acquires Stacy’s Pita Chips and Naked Juice (US) Frito-Lay converts to sunflower oil (US) Frito-Lay 100-calorie packaging (US) PepsiCo acquires Lebedyansky Juices (Russia) Quaker High Fiber Instant Oatmeal (US) Quaker Weight Control Instant Oatmeal (US) G2 low calorie electrolyte beverage (US) Elma Sensações Ao Forno baked chips (Brazil) Quaker Chewy 90-calorie granola bars (US) Tropicana with Omega 3s (US) Propel vitamin-enhanced fitness water (US) PepsiCo acquires Duyvis Nuts (Belgium, Netherlands) PepsiCo acquires Sandora Juices (Ukraine) PepsiCo has a long history of launching new products to meet consumer needs for healthier lifestyles. Tropicana introduced the first ready-to-serve, not-from-concentrate orange juice in 1954. Diet Pepsi with zero calories was launched in 1964 and Gatorade , the first commercially available sports drink, was created in 1965 . 2008 2007 2006 2005 2004 2003 2002 2001
Product mix moves to healthier options North America International Healthier Options Reformulated Treats Treats
<ul><li>Engaging in Responsible Marketing and Advertising </li></ul><ul><li>We understand the importance of being a responsible marketer. We believe that industry-wide voluntary action continues to be the best way to address our responsibilities. </li></ul><ul><ul><li>Support International Council of Beverages Associations’ (ICBA) guidelines on marketing to kids </li></ul></ul><ul><ul><li>Founding member of Children’s Food and Beverage Advertising Initiative (US) </li></ul></ul><ul><ul><li>Alliance for a Healthier Generation </li></ul></ul><ul><li>Helping Consumers Make Better Choices with Nutrition Labeling </li></ul><ul><li>We care about the health of the consumers. We want them to enjoy our products and we want to help them make the healthful food choice the easier choice. </li></ul><ul><ul><li>Smart Spot label (US, Canada) </li></ul></ul><ul><ul><li>Founding member of the Keystone Food & Nutrition Roundtable </li></ul></ul><ul><ul><li>GDA labeling in the European Union </li></ul></ul><ul><ul><li>Back-panel ingredient information available globally </li></ul></ul><ul><li>Promoting Active, Healthy Lifestyles </li></ul><ul><li>We support programs that use simple steps to encourage people to get active: </li></ul><ul><ul><li>YMCA (US) </li></ul></ul><ul><ul><li>Balance First (Canada) </li></ul></ul><ul><ul><li>Keep Fit! (Poland) </li></ul></ul><ul><ul><li>Vive Saludable Escuelas (Mexico) </li></ul></ul><ul><ul><li>Get Active (Poland) </li></ul></ul><ul><li>Partnering for Change </li></ul><ul><li>We proactively lead and engage in private-public partnerships with key external experts and stakeholders in the global health policy and science/nutrition communities to help improve diets and deliver substantial improvements in our products. </li></ul><ul><ul><li>Global Alliance for Improved Nutrition (GAIN) </li></ul></ul><ul><ul><li>World Health Organization’s “Global Commitment to Action on the Global Strategy on Diet, Physical Activity and Health” </li></ul></ul><ul><ul><li>The Diet and Health Research Industry Club (DRINC) </li></ul></ul><ul><ul><li>Oxford Health Alliance </li></ul></ul><ul><ul><li>Wellcome </li></ul></ul><ul><ul><li>Pan American Health Organization </li></ul></ul>Act as a responsible company
PepsiCo: Environmental Sustainability Journey 1999 2002 2004 2006 2001 2003 2005 PepsiCo formalizes sustainability initiative Environmental Task Force formed to share best practices Established a goal of 10% PETrecycled content in plastic bottles in the US. Voluntarily adopted Global Reporting Initiative guidelines Sustainability Vision defined Awarded LEED Gold Level Certification for Frito-Lay “Green” DC Admitted to Dow Jones Sustainability World Index 2007-2008 PepsiCo Awarded Energy Star Partner of the Year SunChips made with help of solar energy 2008 2007 Launched Global Sustainable Packaging Policy 2008 Walkers was the first major food brand in the world to display a carbon footprint/ reduction logo on its packs.
PepsiCo sustainability journey PepsiCo’s Three Focus Areas Water Energy Packaging & Solid Waste
2015 PepsiCo targets Per unit of production compared to 2006 Water Consumption Electricity Consumption Fuel Consumption -20% -20% -25%
Our approach Reducing water usage through conservation, reuse, and replenishment Conservation : PepsiCo uses inventive techniques, including water recycling for plant maintenance, waste water irrigation, and air rinsing of beverage bottles Innovation : Working proactively to improve water supplies in water scarce communities Water Reducing, recycling, and reusing packaging and solid waste Conservation : PepsiCo is activating our Global Sustainable Packaging Policy Innovation : Light-weighting in beverage containers saves more than 60 million pounds of plastic a year Packaging & Solid Waste Reducing greenhouse gas emissions through energy conservation and use of clean energy sources Conservation : PepsiCo continually improves processes to reduce energy use Innovation : Actively engaged in renewable energy projects Energy
Water conservation Recovery captures 85%+ of the water from the PC fryer Installed Reverse Osmosis Water Recovery Systems to save more than 280 million gallons annually Gatorade Waterless Bottle Rinsing to achieve 20% reduction in water consumption Gatorade Waterless Rinsing Reducing Our Water Usage PBG RO Water Recovery FLNA Potato Chip Fryer Nearly 1.5 billion gallons saved in 2007!
Energy 600,000 Gallons of fuel conserved annually Zero Net GHG Emissions Innovative uses of Solar Energy 15 Facilities to Date DCs Purchasing “Non-Peak” Electricity Recapturing >12MM BTUs and 2,000 gallons / hr. All future constructions built to LEED Standards 2x Thermal Efficiency Turning waste into energy Methane Gas from Landfills On-Site Power Co-Generation “ Green Design” for Buildings Waste Heat for Water Warming Distribution Centers with Solar Power Daylighting Warehouses Plants with Solar Panels Bio Boilers Hybrid Corporate Fleet Conversion
Packaging & equipment sustainability Light-Weighting and Finish Several million pounds reduction in PET Source Reduction Design for Recycle PVC Elimination Bio-polymer Technology Significant corrugate reduction in primary and secondary packaging Weight reduction for 500ML bottles 5 million+ trees saved per year 10% Recycled PET & 40-50% Recycled Aluminum Eliminating dyes and finishes that contaminate recycling stream Plastic & Film from Renewable Sources Feasibility testing on packaging across PepsiCo Eliminating PVC from tamper bands Quaker Standard Oatmeal has eliminated the PVC band on the 18oz. tube and replaced it with biodegradable material, eliminating 87.5 tons of PVC a year Energy Reduction Significant energy reduction in equipment 47% energy reduction in 2007 coolers and 55% in vending
<ul><li>Innovation : designing packages to be 100% recyclable </li></ul><ul><li>Activation : working with partners to help communities make recycling more convenient for consumers </li></ul><ul><li>Motivation : encouraging consumers to recycle using the marketing voices of our brands </li></ul>Pepsi is committed to recycling Pepsi supports comprehensive curbside programs as the most effective way to address solid waste in the U.S.
Pepsi marketing raises awareness about recycling “ Have We Met Before” Recycling factoids appeared on 7 billion Pepsi and Diet Pepsi cans during 2008 “ Clean Up with Pepsi Sweeps” Consumers earned points in Pepsi’s national rewards program by taking a quiz and pledging to recycle more “ Return the Warmth” Pepsi joined with national retailer for 3rd annual bottle collection drive with the goal of recycling 80 million plastic bottles. Local Pepsi bottlers continue to support recycling in their communities Grass Roots Programs National Programs
PepsiCo select recognitions Keep America Beautiful's Vision for America Award Named to CRO Magazine's "100 Best Corporate Citizens“ in 2007 Named as Best Water-Saving Company in China by China Beverage Industry Association
PepsiCo creates winning culture for talent <ul><li>Developing Talent </li></ul><ul><ul><li>Sustaining competitive advantage by attracting, developing, and nurturing top talent </li></ul></ul><ul><ul><li>Meet needs of multicultural, multigenerational global workforce </li></ul></ul><ul><li>Expanding opportunities through Diversity and Inclusion </li></ul><ul><ul><li>Associates are recognized for contributions </li></ul></ul><ul><ul><li>Respect for employees’ work/life preferences </li></ul></ul><ul><ul><li>Associates valued for unique differences they bring to the workplace </li></ul></ul><ul><li>Providing a Safe and Healthy Work Environment </li></ul><ul><ul><li>PepsiCo serves as chief partner in the global program of the World Health Organization / World Economic Forum “Workplace Wellness” Unit </li></ul></ul><ul><ul><li>Workplace Human Rights policy </li></ul></ul><ul><ul><li>HIV/ AIDS policy </li></ul></ul>
PepsiCo honored for diversity and inclusion Top 20 places to work for multicultural women 2007 Award winner Named among 'Best Companies for Asian Pacific Americans' in 2008 2007 Company of the Year Among 15 Best in Marketing Diversity 2007 Top 20 Best Companies for Leaders PepsiCo Brazil, Columbia, Gamesa-Quaker, and Sabritas Recognized