PURCHASE, New York,
October 17, 2016 /PRNewswire/ --
- Plans to continue transforming its product portfolio
by offering healthier food and beverage choices,
reduce its environmental impact and empower people around the
world
- At least two-thirds of PepsiCo beverages
expected to contain 100 calories or
fewer from added sugar per 12-oz
serving by 2025, with increased focus on zero- and
lower-calorie products
- Targeting 15% improvement in water efficiency of
its direct agricultural supply chain in high
water-risk areas by 2025 - saving the
equivalent of total water used in PepsiCo's
manufacturing operations
- Seeking 20% reduction in greenhouse gas
emissions across the company's
value chain, including its agricultural
supply, by 2030
- In partnership with PepsiCo Foundation, plans to
invest $100 million
supporting initiatives to benefit at least
12.5 million women and girls around the world
PepsiCo, Inc. (NYSE: PEP) today announced an ambitious global
sustainability agenda designed to foster continued business growth
in a way that responds to changing consumer and societal needs. The
company's efforts, which focus on creating a healthier relationship
between people and food, include specific 2025 goals to continue
transforming PepsiCo's food and beverage product portfolio,
contribute to a more sustainable global food system and help make
local communities more prosperous.
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These new initiatives continue PepsiCo's decade-long commitment
to delivering Performance with Purpose, a pioneering vision
launched in 2006 rooted in the fundamental belief that business
success is inextricably linked to the sustainability of the world
we share.
"To succeed in today's 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," said PepsiCo Chairman
and CEO Indra Nooyi. "The first ten
years of PepsiCo's 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."
"PepsiCo's journey is far from complete, and our new goals are
designed to build on our progress and broaden our efforts," Nooyi
continued. "We 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 - as
well as a responsibility - to not only make a profit, but to do so
in a way that makes a difference in the world."
Three Pillars of Sustainable Growth
PepsiCo's Performance with Purpose agenda for the coming
decade is focused on three core priorities:
- Helping to improve health and well-being through the products
it sells.
- Protecting our planet.
- Empowering people around the world.
Across its business and in partnership with others, PepsiCo is
taking a holistic approach to achieving progress in all three
areas. The company's plans have been informed by current scientific
research, consumer expectations and dialogue with key stakeholders,
as well as by the United Nations' 2030 Agenda for Sustainable
Development.
In pursuing these goals, the company's 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.
"During the past decade, PepsiCo has become a role model for
global companies by demonstrating that aligning business and
societal interests is a recipe for strong financial results," said
Bill George, senior fellow,
Harvard Business School. "PepsiCo's
example is a positive reminder that the world's top-performing
companies are increasingly measured by more than short-term
financial returns. They can and must be forces for good in the
world, and those that embrace this mindset will be best positioned
to deliver for both shareholders and society."
Products
PepsiCo's 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.
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.
The company has set the following goals 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.
- The 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's portfolio. Everyday Nutrition products
include those that deliver whole grains, fruits and vegetables,
dairy, protein and hydration.
- It will provide access to at least three billion servings of
nutritious foods and beverages to underserved communities and
consumers.
The 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.
Planet
PepsiCo's ambition is to reduce the
environmental footprint of the food system through operational
efficiencies and mobilization of its suppliers and business
partners.
The company supports the Paris Climate Agreement and is focused
on reducing its environmental impact while growing its business. It
will continue improving the efficiency of its manufacturing and
distribution operations while also broadly extending its
environmental stewardship efforts across its global value
chain.
As 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.
"The planet is facing unprecedented challenges that require us
to make transformational changes to the way we grow the economy,
feed the world and provide dignified employment," said Dr.
Andrew Steer, president and CEO,
World Resources Institute. "I welcome the breadth of PepsiCo's
approach and I urge the company to continue leading on these
important issues. PepsiCo's actions demonstrate how business can
serve as an agent of change and enable the type of solutions needed
for us to thrive in a resource-constrained world."
Specifically, 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.
- 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.
- Replenish 100% of the water it consumes in its manufacturing
operations within high-water-risk areas, ensuring that the water is
replenished in the same watershed from which it was
extracted.
- With the PepsiCo Foundation and its partners, work to provide
access to safe water to a total of 25 million people in the world's
highest water-risk areas by 2025, a continuation of efforts that
began in 2006.
- Reduce absolute greenhouse gas emissions across the company's
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.
- Sustainably source both direct and major non-direct
agricultural raw materials by 2020 and 2025, respectively. Building
on its earlier goal, PepsiCo also intends to invest in the
necessary measures to complete its plans to sustainably source 100%
of the palm oil and cane sugar it purchases by 2020.
- Achieve zero waste to landfill across its direct operations by
2025.
- Reduce the food waste it generates in its direct operations by
50% by 2025.
- Design 100% of its packaging to be recoverable or recyclable by
2025, while partnering to increase packaging recovery and recycling
rates.
People
PepsiCo's ambition is to empower people and
social development across its operations, supply chain and
communities.
Building 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's supply chain. In addition, the company is pursuing new
initiatives to promote diversity in its global workforce, support
the advancement of women, and spur social and economic development
in communities around the world.
"Thousands of farmers and communities around the world benefit
from PepsiCo's sustainable sourcing practices," said Paul Rice, President & CEO, Fair Trade
USA. "Beyond improving the
livelihoods of families and contributing to positive social
outcomes, sustainable sourcing is increasingly important to a
growing number of consumers who want to shop their values through
Fair Trade Certified products."
Specifically, PepsiCo 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's SFI is focused on promoting
environmentally responsible agricultural practices, improving crop
yields and growers' livelihoods, and respecting human
rights.
- Extend the principles of the company's Supplier Code of Conduct
to all franchisees and joint venture partners. These principles
already apply to PepsiCo's direct suppliers.
- 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.
- Continue developing a diverse, inclusive and engaged workforce
that reflects the communities where it does business. These efforts
include a continued focus on achieving gender parity in PepsiCo's
management roles and pay equity for women.
PepsiCo's Product, Planet and People goals are more fully
discussed in the company's 2015 Sustainability Report, available at
http://www.pepsico.com/purpose.
About PepsiCo
PepsiCo products are enjoyed by consumers one billion times a
day in more than 200 countries and territories around the world.
PepsiCo generated more than $63
billion in net revenue in 2015, driven by a complementary
food and beverage portfolio that includes Frito-Lay, Gatorade,
Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio
includes a wide range of enjoyable foods and beverages, including
22 brands that generate more than $1
billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose - our
fundamental belief that the success of our company is inextricably
linked to the sustainability of the world around. We believe that
continuously improving the products we sell, operating responsibly
to protect our planet and empowering people around the world is
what enables PepsiCo to run a successful global company that
creates long-term value for society and our shareholders. For more
information, visit http://www.pepsico.com.
Cautionary Statement
This communication contains statements reflecting our views
about our future performance that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are generally
identified through the inclusion of words such as "aim," "believe,"
"estimate," "expect," "goal," "intend," "may," "plan," "target" and
"will" or similar statements or variations of such terms and other
similar expressions. Forward-looking statements are generally
identified through the inclusion of words such as "aim," "believe,"
"estimate," "expect," "goal," "intend," "may," "plan," "target" and
"will" or similar statements or variations of such terms and other
similar expressions. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ
materially from those predicted in such statements, including
changes in demand for PepsiCo's products, changes in the legal and
regulatory environment, regulatory initiatives, including the
imposition by any jurisdiction (within or outside the U.S.) of a
new or increased taxes or other measures that impact PepsiCo's
products and the timing thereof, PepsiCo's ability to compete
effectively, PepsiCo's ability to achieve its goals with respect to
products, people and planet, unfavorable economic conditions in the
countries in which PepsiCo operates, and the other factors
discussed in the risk factors section of PepsiCo's most recent
annual report on Form 10-K and subsequent reports on Forms 10-Q and
8-K. Investors are cautioned not to place undue reliance on any
such forward-looking statements, which speak only as of the date
they are made. PepsiCo undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE PepsiCo