PepsiCo, Inc. (NYSE: PEP) 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.<\/p>\n
According to an announcement of the company on Monday 17th October, the company\u2019s efforts, which focus on creating a healthier relationship between people and food, include specific 2025 goals to continue transforming PepsiCo\u2019s food and beverage product portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.<\/p>\n
In this context, PepsiCo Chairman and CEO Indra Nooyi said that \u201cto succeed in today\u2019s 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\u201d.<\/p>\n
She said that \u201cthe first ten years of PepsiCo\u2019s 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.\u201d<\/p>\n
\u201cPepsiCo\u2019s journey is far from complete, and our new goals are designed to build on our progress and broaden our efforts,\u201d Nooyi continued. \u201cWe 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 \u2013 as well as a responsibility \u2013 to not only make a profit, but to do so in a way that makes a difference in the world.\u201d<\/p>\n
PepsiCo\u2019s Performance with Purpose agenda for the coming decade is focused on three core priorities i.e. helping to improve health and well-being through the products it sells; protecting our planet and empowering people around the world.<\/p>\n
\u00a0Across its business and in partnership with others, PepsiCo is taking a holistic approach to achieving progress in all three areas. The company\u2019s plans have been informed by current scientific research, consumer expectations and dialogue with key stakeholders, as well as by the United Nations\u2019 2030 Agenda for Sustainable Development.<\/p>\n
\u00a0In pursuing these goals, the company\u2019s 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.<\/p>\n
In the field of products, PepsiCo\u2019s 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.<\/p>\n
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.<\/p>\n
Under the company\u2019s 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.<\/p>\n
\u00a0The rate of sales growth of what the company refers to as Everyday Nutrition products will outpace the rate of sales growth in the balance of PepsiCo\u2019s portfolio. Everyday Nutrition products include those that deliver whole grains, fruits and vegetables, dairy, protein and hydration.<\/p>\n
\u00a0 It will provide access to at least three billion servings of nutritious foods and beverages to under-served communities and consumers.<\/p>\n
\u00a0The 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.<\/p>\n
\u00a0The second area where initiatives have been taken is related to our Planet. PepsiCo\u2019s ambition is to reduce the environmental footprint of the food system through operational efficiencies and mobilization of its suppliers and business partners.<\/p>\n
\u00a0As 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.<\/p>\n
\u00a0Specifically, PepsiCo plans to improve the water-use efficiency of its direct agricultural supply chain by 15% 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% by 2025. This is in addition to the 25% improvement in water-use efficiency the company has achieved since 2006 and will include a focus on high-water-risk areas.<\/p>\n
\u00a0With the PepsiCo Foundation and its partners, work to provide access to safe water to a total of 25 million people in the world\u2019s highest water-risk areas by 2025, a continuation of efforts that began in 2006.<\/p>\n
\u00a0It will reduce absolute greenhouse gas emissions across the company\u2019s value chain by at least 20% by 2030, with a focus on collaborating with suppliers, business partners and customers to reduce emissions related to agriculture, packaging and transportation.<\/p>\n
\u00a0It 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.<\/p>\n
\u00a0It will design 100% of its packaging to be recoverable or recyclable by 2025, while partnering to increase packaging recovery and recycling rates.<\/p>\n
\u00a0On the people end the company said that PepsiCo\u2019s ambition is to empower people and social development across its operations, supply chain and communities.<\/p>\n
\u00a0Building on its support for the United Nations Guiding Principles on Business and Human rights, PepsiCo is significantly broadening its focus on respecting human rights across the company\u2019s supply chain.<\/p>\n
\u00a0PepsiCo 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. PepsiCo\u2019s SFI is focused on promoting environmentally responsible agricultural practices, improving crop yields and growers\u2019 livelihoods, and respecting human rights.<\/p>\n
\u00a0 It will extend the principles of the company\u2019s Supplier Code of Conduct to all franchisees and joint venture partners. These principles already apply to PepsiCo\u2019s direct suppliers.<\/p>\n
\u00a0The 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.<\/p>\n