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Mark Pettigrew Pepsico Profiting from Sustainability Conference York Dec 2014

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Conference Presentation at Profiting from Sustainability in York (UK) Dec 2014

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Mark Pettigrew Pepsico Profiting from Sustainability Conference York Dec 2014

  1. 1. EUROPE Purpose fuelled Performance Mark Pettigrew, Agricultural Sustainability Manager Europe York 2014 CONFIDENTIAL
  2. 2. PepsiCo – a business based on agriculture PepsiCo depends on sustainable agriculture Over 1 million tonnes of potatoes 32,500 HA Over 120,000 tonnes of oats 20,000 HA Over 70,000 tonnes of corn 9,000 HA Over 7,000 tonnes of peanuts 1,800 HA Over 30,000 tonnes of apples 1,000 HA • High quality crops are essential for our business • Severe weather conditions due to climate change are impacting the security of our supplies • The sourcing of ingredients is dependent on the availability of natural resources such as water PepsiCo Confidential 1
  3. 3. 2 9% reduction in carbon 14.1% less energy (manufacturing) 10.4% reduction water usage 0% waste to landfill Lightening our impact
  4. 4. Sustainable agriculture 3
  5. 5. Our engagement is based on four key platforms PepsiCo Confidential 4 New varieties • Better yields • Better quality Precision Agronomy Modified Agronomy Low Carbon Farming • More efficient use of resources • Accurate prediction of crop availability • Use of organic fertilizers • Use of innovative irrigation systems • Collaborative ICT projects to measure, monitor and reduce GHG emissions
  6. 6. Low Carbon Farming - UK • 2010 Baseline – *123 kg CO2e / tonne • 2013 Crop – *81 kg CO2e / tonne 130 120 110 100 90 80 70 60 50 40 30 20 10 0 2010 2013 Emissions (kg CO2e/t) Source Verified reduction from 2010 Total CFT return 34% Fertiliser manufacture 19% Storage energy 8% Fertiliser application 5% Other 2% Green energy tariff 7% “50 in 5” / icrop
  7. 7. Transport 1% Grading, cooling, and storage 17% Residue management 3% Low Carbon Farming Seed production Background soil N2O 5% 8% Fertiliser induced field emissions 22% Irrigation energy 1% Field Energy Use (excluding irrigation) 15% Crop protection products 10% Fertiliser manufacture 18% Optimise •Soil Testing •Variety Specific Agronomy •Response Curves Abated •Big Impact •Available •Practical Organic •Holland •Big Impact •Naturalis •Needs Validation Advantaged •Greater accuracy •Conventional & Organic •Precision Agriculture •Sensors / satellite Fertiliser – Strategy Best way to lower carbon footprint •Reduce Co2 footprint •Help reduce global warming •Resource depletion •Reduce Supply Risk •Lower costs
  8. 8. We cannot achieve sustainable agriculture alone Partnership is key to delivering sustainable agriculture Farmers Industry Civil Society Consumers Policymakers PepsiCo Confidential 7 Drip Irrigation trials Others NGOs Scientific community Using online data Satellite images Fertiliser trials
  9. 9. Policy-making can encourage sustainable agriculture PepsiCo’s policy considerations • Food sustainability needs to start at farm level to achieve an overall sustainability of the entire food chain • To achieve a sustainable food chain, all actors need to be engaged • Innovation is key to achieving sustainable food production • Limiting food waste is an important part to achieving food security • Discuss what producing more with less can mean for the entire food supply chain • PepsiCo supports EU policies that encourage sustainable farming PepsiCo Confidential 8
  10. 10. PepsiCo Confidential 9 Thank you!

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