Pepsi Co

PepsiCo’s Corporate Social Responsibility

By Joey Russell

PepsiCo's Vision

• PepsiCo has a responsibility to continually improve all aspects of the world in which we operate in

• To creating a better tomorrow than today

Who is PepsiCo?

• Frito-Lay North America (FLNA)

• Quaker/Tropicana/Gatorade (QTG)

• Pepsi-Cola North America (PCNA)

• PepsiCo International (PI)

CSR Goals

• To make a positive impact in the communities we serve as we strive for profitable growth

• To sustain the environment in all areas in which we do business.

Basics of CSR programs

• Human sustainability

• Environmental sustainability

• Our approach

Human Sustainability

• Giving back to local communities

• Charity • Education

Giving Back to the Communities

• Everyone profits

• PepsiCo: Public relations, marketing, sales, which eventually turns into profits

• Community members: community programs, YMCA, scholarships, education,

Charities • YMCA• In 2006, $11.6 Million over the next Five

years – YMCA’s Activate America • In hopes to reverse the growing obesity

epidemic • We also sponsor: Save the Children, AIDS

care centers, and disaster relief organizations

Education

• The Quality Trust and Growth (QTG) scholarship

• Ten $10,000 scholarships annually

• Created by our east division – goes to schools on the east coast

• Other individual owners do local scholarships

Education cont.

• Corporate funding for public schools

• What influence did corporations have on your high school?

• Sponsor athletic funds? football scoreboard?

• Donations to schools for logos to be put on things

Environmental Sustainability

• Metrics

• Education and awareness

Metrics

• Aligned with our vision of a better tomorrow, our goal is by 2015 to:– Reduce water consumption by 20%– Reduce electricity consumption by 20%– Reduce fuel consumption by 25%

Metrics cont.

Metrics cont.

Education and Awareness

• Environmental education is a part of all we do

• We hold an annual sustainability summit where new ideas are shared

• We share our new environmental information with all our associates

Education Examples

• Created PepsiCo video on environmental programs

• Hold special contests asking for employee sustainability suggestions

• Incorporate environmental information into the daily e-newsletter

Education Example cont.

• Green teams• FLNA maintains a

dedicated team that focuses on improving the environmental awareness

Our Approach

• Overall conservation

• Process updates

• Innovations

Overall Conservation

• In the Tropicana plant in Florida we re-circulate over 550,000 gallons of water a day

• Five Frito-Lay locations use treated wastewater to irrigate more than 1,300 acres of grass grown for animal feed in the U.S.

Overall Conservation cont.

• In the United Kingdom, starch removed from the water is processed to food grade level and can be reused in our own products

• In India, we’ve improved farmer techniques that save nearly 40% of their agriculture water

Process Updates

• Gatorade is utilizing air-only rinsing in the the bottling process, which allows a 20% reduction in water consumption

• Pepsi bottling ventures recycle water used to cool equipment on the bottling line that, which conserves 2.5 million gallons per year

Process Updates cont.

• We’ve installed energy efficient motors and windows in most of bottling plants

• Periodic energy audits are used to continue sustainability improvements

Innovations

• The Gatorade facility in Virginia is LEED certified by the U.S. Green Building Council

• 950,000 sq ft – largest food and beverage site to achieve the certification

Conclusion

• Environmental sustainability– Return on investment of higher quality bottling

equipment– Saves money in the long run– It’s the right thing to do– The environment is not a an everlasting

resource

Conclusion cont.

• Human sustainability – Improving the quality of life to our community

members to the best of our abilities – Investments here will provide better returns in

the future

Conclusion cont.

• Our approach– We’re always looking for new ways to improve

our corporate social responsibilities– As technology evolves so will our approach to

sustaining the environment and those impacted by our company

– Any questions???

Free Stuff !!!

• (I’d bring some free PepsiCo products for the students who just sat through my presentation)