The FINANCIAL — In observance of the upcoming 17 th anniversary of World Water Day on March 22, PepsiCo has reaffirmed its commitment to responsible water stewardship though an ambitious agenda of global initiatives.
These programs are part of the company's Performance with Purpose vision: delivering shareholder value while leaving a positive imprint on society.
“Water is critical to life, and essential to our business,” said PepsiCo Chairman and CEO Indra Nooyi. “We recognize the impact of our business on each community in which we operate, and likewise the impact of our communities on our business. We mark World Water Day, mindful of our collective responsibility to find even more ways to protect and ensure this limited resource.”
PepsiCo focuses its efforts in two main areas. First, the company continues to use water more efficiently within its own operations, by adopting innovative new technologies, continually improving its production processes and raising awareness among associates and partners. Second, PepsiCo is committed to increasing access to clean water around the world, working with communities as well as nonprofit, academic, scientific and industry organizations.
Key aspects of this work:
PepsiCo's sustainability goals include reducing water consumption per unit of production by 20% by 2015 as compared to 2006 consumption. Across the world, PepsiCo has saved nearly 1.5 billion gallons of water in 2007 compared to 2006.
New technology , information sharing and employee initiatives are at the core of efforts to drive down water consumption and increase re-use. In the U.S. , air-rinse and dry-lube technology to clean newly manufactured bottles is saving almost 150 million gallons of water per year in Gatorade manufacturing facilities across the country. Comprehensive “water mapping” at manufacturing facilities has helped pinpoint areas for manufacturing process innovation. In the U.K, PepsiCo's Walkers unit has reduced the amount of water used per kilogram of crisps by 42 percent between 2001 and 2007.
Working with NorthStar Asset Management, Inc., a PepsiCo shareholder and wealth management firm specializing in socially responsible investing, and Boston Common Asset Management, PepsiCo recently set written guidelines for its global operations in support of the Human Right to Water, as defined by the United Nations. They outline a commitment to supporting individuals' right to access sufficient clean water in the communities where PepsiCo operates, and to advocating this right more broadly through strategic approaches across the enterprise. “This policy is a crucial first step,” said Julie Goodridge, CEO of NorthStar Asset Management. “Access to safe, sufficient clean water is a human right and we commend PepsiCo for becoming the first publicly-traded multinational corporation to commit to a policy on the Human Right to Water. Among other things, this policy illustrates PepsiCo's commitment to an individual's right to water and describes the company's intention to preserve water integrity and involve community members in the plans to develop water resources.”
The PepsiCo Foundation has committed to investing nearly $16 million to bring safe water to those in need in India and other emerging markets. This includes work with nonprofit organizations that are pioneering ways to dramatically increase access to clean water.
PepsiCo's joins with other industry leaders in supporting policy initiatives, such as the United Nations CEO Water Mandate, that advocate stronger action on global water issues. This month, it signed the Declaration on U.S. Policy and the Global Challenge of Water, which calls for stronger efforts to address water as one of the most important strategic challenges of our time.