Environmental performance leadership is the responsibility of PepsiCo’s executive supply-chain heads of our operations:
Frito-Lay North America, Quaker, Tropicana, Gatorade, Pepsi-Cola North America (including working with our bottlers) and PepsiCo International. These leaders head our Environmental Sustainability Leadership Team (ESLT), formed in 2007. The ESLT includes senior executives from all functions to make sure that environmental impacts are considered in all areas of the business.
The ESLT charter includes the following:
ōCreate and maintain PepsiCo’s environmental sustainability strategy.
ōDevelop, administer and maintain PepsiCo-wide policies on matters of environmental sustainability.
ōDevelop goals and timelines for PepsiCo environmental performance.
ōAssess the gaps and strengths of performance relative to our aspirations and external benchmarks.
ōProvide support to divisions in improving PepsiCo’s long-term environmental sustainability performance.
ōAdvise and inform the Chairman and CEO, the PepsiCo Executive Committee and the Board of Directors on matters of environmental sustainability.
The ESLT is supported by the Environmental Council (EC). The EC is made up of environmental experts from all areas of our business, including resource conservation program managers and environmental compliance managers.
The EC’s mission is to provide subject matter expertise within and across the divisions, and it supports the ESLT to ensure that we have a strategic environmental sustainability vision for PepsiCo; uniform system-wide metrics, standards, and practices;, sensible environmental goals; and accurate reporting to internal and external stakeholders. In addition to driving greater efficiencies in our use of natural resources and identifying ways to address water scarcity issues, the EC is focused on the implementation of a global Environmental Management Information System (EMIS) to standardize and consolidate our existing environmental management software into a single, enterprise-wide solution to provide common tools and processes for environmental data capture and reporting, and to ensure that key compliance and environmental performance metrics and parameters are effectively measured and managed within our Environmental Management System (EMS).
To leverage best practices across Environment and Health and Safety, the PepsiCo Health and Safety Leadership Council (HSLC) and the Environmental Council both report to the PepsiCo senior vice presidents of Supply Chain.
In addition, Pepsi Beverage North America has a Bottler Sustainability Team. Their mission is to advance environmental sustainability in Pepsi Cola’s bottling operations through:
ōDefined and consistent measures: data collection, benchmarking and reporting with PepsiCo ōSetting and achieving goals
ōDriving continuous improvement ōSharing best practices
Each division is held responsible for implementing environmental programs, training associates and tracking, monitoring, correcting and improving environmental aspects of its business.
monitoring
In 2005, the PepsiCo Environmental Management System (EMS) framework was first developed with the help of an independent third party. Since this time, we have reviewed our performance and strategy, and in 2008 we expanded the framework to encompass the environment, health, and safety.
We call this 12-element framework the PepsiCo Environmental, Health & Safety Management System (EHSMS).
Key features of the PepsiCo EHSMS framework include:
ōA risk-based management approach
ōDocumented systems that capture and maintain institutional knowledge
ōObjectives and targets for continuous improvement ōIntegration of environmental, health and safety
considerations into core business processes
ōRoutine performance monitoring and internal management reporting
The EHSMS framework is built along the lines of ISO 14001 and OHSAS 18001. Twenty-one PepsiCo International facilities are ISO 14001 certified, including nine in the United Kingdom.
Company-owned facilities or joint ventures with PepsiCo management control implement the PepsiCo EHSMS, which aligns with ISO 14001 and OHSAS 18001. We have a total of 39 facilities that have been externally accredited to ISO 14001.
We estimate that more than 90% of PepsiCo International manufacturing facilities receive environmental management system audits by internal or external auditors.
capital expenditure filter
PepsiCo incorporates sustainability criteria into our Capital Expenditure Filter (CapEx Filter), and we are using it on all capital expenditure requests over $5 million. Each request must include a review of the sustainability issues and opportunities surrounding the request. The goal is to incorporate
sustainability aspects into projects right from the start and track sustainability-related capital spending across PepsiCo.
This process is expected to help drive continued improvement.
education and awareness—engaging employees We are committed to educating our associates on the importance of environmental sustainability. In addition to regular training of environmental personnel, we conduct special events at which new ideas are shared.
In May 2008, PepsiCo introduced the Sustainable Engineering Guidelines, which are meant to support overall implementation of our environmental sustainability design principles
throughout the engineering process, and to improve efficiency in the use of natural resources. The Sustainable Engineering Guidelines can be accessed through a website available to all PepsiCo employees and key partners worldwide. We also offer workshops on ReCon, our global eco-efficiency strategy for resource conservation within our operations, to our engineers, facility operations teams, bottlers and co-packers around the world.
Environmental sustainability is shared with all our associates through special activities to mark events such as Earth Day and World Water Week. Environmental information is also included in our daily e-newsletter. Our PepsiCo Americas Beverages businesses have quarterly employee e-newsletters dedicated to sharing environmental sustainability initiatives and projects in the region as well as showcasing best practices.
In 2008, U.S. employees were offered Chronos, an e-learning tutorial designed to help associates understand the landscape of sustainability and the business case for sustainable development. It was created through a partnership with the World Business Council on Sustainable Development (WBCSD) and the University of Cambridge, U.K..
green teams
Frito-Lay North America maintains a dedicated team of experts across our manufacturing facilities focused on reducing consumption of electricity, fuels, and water. Through
“GreenTeams” made up of groups of volunteer employees, more than 12,000 manufacturing associates have been trained to improve their environmental awareness and to understand how they can do their jobs without adversely impacting the environment.
Quaker, Tropicana, and Gatorade have established PepsiCo Green Chicago,” an overarching environmental sustainability initiative to raise employee awareness and create actionable tactics to improve the business and each associate’s personal environmental footprint. The focus is to raise awareness, incite action and institutionalize sustainability improvement efforts across PepsiCo. In September 2008, our headquarters building in Chicago opened a company-first Sustainability Center, dedicated to Performance with Purpose. The Center, designed to Platinum LEED Commercial Interior standards, is used to educate and inform employees about PepsiCo sustainability initiatives, business progress and personal actions they can take at home to reduce their footprint.
Rice is India’s largest grain crop, and uses the bulk of fresh water used
in Indian agriculture.
In 2008, direct seeding was extended to more than
1,000 acres
in five states and saved close to
1 billion
liters of water
Water use in manufacturing was
reduced by over
55 %
and in the last three years
we saved more than billion liters of water