PepsiCo’s 2025 Sustainability Agenda Focuses on Products, Planet and People
(3BL Media/Justmeans) – Helping to create a healthier relationship between people and food includes protecting the environment and finding sustainable ways to produce more food. As the world’s population grows, the demand for water and energy is also on the rise and the planet’s resources are under increasing stress. In this situation, companies cannot afford to follow business as usual, and must align their corporate strategy with the UN’s Sustainable Development Goals (SDGs).
In keeping with its long-term commitment to do business in a way that is sensitive to the needs of the planet, PepsiCo has announced an ambitious global sustainability agenda with specific 2025 goals. The company aims to continue transforming its food and beverage portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.
According to 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. The company has created significant shareholder value, while mapping its plans against the UN SDGs and taking important steps to address environmental, health and social priorities worldwide.
Pillars of Sustainable Growth
PepsiCo’s Performance with Purpose agenda for the coming decade is focused on three core priorities:
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.
- 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 aims to:
- Improve the water-use efficiency of its direct agricultural supply chain by 15% in high-water-risk sourcing areas by 2025.
- Improve the water use efficiency of its direct manufacturing operations by 25% by 2025.
- 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.
- Reduce absolute GHG emissions across the company’s value chain by at least 20% by 2030.
- Sustainably source both direct and major non-direct agricultural raw materials by 2020 and 2025, respectively.
- 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.
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.
- Extend the principles of the company’s Supplier Code of Conduct to all franchisees and joint venture partners.
- 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.
According to Bill George, senior fellow, Harvard Business School, 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. PepsiCo's example is a positive reminder that the world’s top-performing companies are increasingly measured by more than short-term financial returns.
Source and Image: PepsiCo