PepsiCo Joins Ceres Network of Companies
PepsiCo, one of the world’s largest food and beverage companies, has been approved as a member of Ceres’ corporate network. As a Ceres member, PepsiCo will be among the more than 25 Fortune 500 companies that have joined Ceres, a leading coalition of investors, environmental groups and public interest organizations working with companies to address sustainability challenges such as global climate change.
“To address the tough environmental and social issues facing global corporations today, we need to hear from a diverse group of stakeholders who challenge us to innovate and operate in a sustainable manner,” says Indra Nooyi, PepsiCo Chairman and Chief Executive Officer. “No one has access to such a vast network of valuable, independent input as Ceres and we are very pleased to be a part of this network.”
Nooyi launched PepsiCo’s “Performance with Purpose” initiative in 2006, designed to drive the company’s sustainability efforts in three core areas – products, environment and people. With this framework in place, the company has made a range of commitments, including reducing water consumption by 20%, fuel consumption by 25% and electricity consumption by 20% per unit of production by 2015, as compared to 2006. PepsiCo is also looking down its supply chain to understand the climate change impact of products from field to fork. For example, the company is assessing and publishing the carbon footprint of its Tropicana and Walker’s products.
PepsiCo’s Frito-Lay division has announced that it will introduce the first fully compostable snack chip bag made from plant-based materials in 2010. Frito-Lay’s SunChips brand took the first step towards this transformational packaging goal by introducing 10 ½ oz size snack bags that contain an outer layer of packaging made with a compostable, plant-based renewable material, polylactic acid (PLA).
And in China, PepsiCo is partnering with the local farmers to convert desert land in inner Mongolia into potato farms by installing water-conserving pivot irrigators and soil-conserving crops. The result is a rotation of commercially viable crops with an initial water savings of 50%.
To propel these initiatives, PepsiCo has integrated these priorities into and with PepsiCo management. Environmental performance is led by the Environmental Sustainability Leadership Team and is made up of senior executives from across the company. The team reports to the CEO, the PepsiCo Executive Committee, and the Board of Directors.
“PepsiCo has come to realize that being a leader in social responsibility is not only good for the environment and communities around the world, but it’s good for business,” says Ceres President Mindy Lubber. “Ceres is excited to begin our work with what promises to be a sector-changing company.”
Companies that join Ceres must make continuous strides in improving their sustainability performance and reporting practices by engaging with investors, environmental groups, and other stakeholders.
Founded in 1989, Ceres is a leading network of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges. Ceres also directs the Investor Network on Climate Risk (www.incr.com), comprised of over 75 institutional investors who collectively manage nearly $7 trillion in assets. For more information, visit www.ceres.org.
PepsiCo (NYSE: PEP) is one of the world’s largest food and beverage companies, with 2008 annual revenues of more than $43 billion. The company operates in approximately 200 countries, and employs approximately 198,000 people worldwide. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales. PepsiCo’s commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, reducing the company’s impact on the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive culture that recruits and retains world-class talent. PepsiCo is listed on the Dow Jones World and North America Sustainability Index. For more information, please visitwww.pepsico.com.