PepsiCo Agri 0531 Final

7/28/2019 PepsiCo Agri 0531 Final

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our Commitment to

SsaabAc Paccs

Good for Business. Good for Society.


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As one of the worlds largest food and beverage companies, we

have some distinct challenges. We are committed to supporting

economic development, working toward solutions to global

nutrition challenges, establishing and maintaining a safe work

place, valuing our associates and helping to protect the earths

natural resources.Prormanc wit Purpos is undamntal to our orallsuccss. Financial prormanc can and must o and-in-and wit sustainaility. Our prormanc and our purposar not sparat indd, ac is closly knittd wit totr in all tr o t aras tat totr orm our purposanda: our products, our nironmnt and our associats.

At PpsiCo, w rly on t arts natural rsourcs to runour usinsss. As w xpand across many dlopd anddlopin markts, w ar committd to minimizin timpact tat our usinss as on t nironmnt wit

practics tat ar socially rsponsil, scintiically asdand conomically sound.

W ocus our nironmntal sustainaility orts on taras wr, caus o our xprtis, w can a t mostimpact: watr, climat can, aricultur and packain.

In addition to our own orts, w rly on alliancs tat lpus addrss t worlds most urnt nironmntal callns.Ts rlationsips proid us wit t prspcti andknowld to implmnt ood idas across our usinssand in t communitis w sr.

As part o tis approac, PpsiCo announcd t Promiso PpsiCo, wic includs a sris o amitious oals toimpro our nironmntal prormanc, rtink our productportolio and inst in our associats. Amon ts oals,w stat tat w stri to apply pron sustainal ariculturpractics on our armd land, and to proid undin,tcnical support and trainin to local armrs. Our rowrs,som o wom w a n workin wit or nrations,will important in lpin us aci our commitmnts.

W li tat PpsiCos gloal Sustainal Aricultur

Policy and guidin Principls outlind in tis rocur canlp nsur lon-trm conomic iaility or our usinssand our rowrs.

Our rlationsip os yond armin. Wtr w arlpin a rowr in India consr watr or a amily inMxico larn nw practics or improin corn yilds,PpsiCos commitmnt to our rowrs xtnds to ryaspct o our usinss. Plas join us in our qust to applysustainal aricultur practics to armd land wilmakin a positi contriution to t world around us.


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PpsC Ssaab Ac Pc

As a loal ood and ra company, aricultur is ono t larst lmnts o our nironmntal ootprint,so w work ard to continually impro our ariculturprocsss. PpsiCo also insts in nw knowld andinnoation in armin practics, wic can impro twlar o our rowrs and tos communitis tat arpart o our aricultur supply cain.

As w continu our journy in sustainal aricultur, PpsiCoas launcd its gloal Sustainal Aricultur Policy

a policy roundd upon a st o principls dlopd to

ncoura our rowrs to oprat in a way tat protctstir land and communitis. Our dcisions, our procsssand our actionsand tos o our rowrsar intnddto uidd y tis loal policy.

Tis policy is rconizd trouout t PpsiCo supplycain and our rowrs ar ncourad to adr to tprincipls tat dirctly rlat to tir orapic rion and /or country ornmnt rulations.

Global Sustainable AgriculturePolicy & Guiding Principles:

water management

PpsiCo aims to optimiz t applid watr ootprint to crops andto rduc watr wast durin irriation as wll as rsponsilymana runo risks o pollution or contamination o round orsurac watr wit psticids, nutrints or soil.

soil conservation & Preservation

PpsiCo aims to prsr and impro soil rtility and nutrints,minimiz soil loss trou rosion and aoid soil dama du todisas and contamination.

agrochemical management

PpsiCo aims to optimiz t us o psticids, nutrints, andotr arocmicals. PpsiCo supports sustainal practics tatsustitut natural controls or som arocmicals, ostrcosystm alanc, rduc dirct and indirct rnous asmissions and rduc crop losss.

energy management

PpsiCo aims to optimiz t us o nry in crop production andmanamnt o aricultur wast to impro conomics or tarm and rduc ot dirct and indirct rnous as missions.

farm economics & land management

PpsiCo supports sustainal aricultur practics tat nalarmrs to impro product alu y maximizin t dsird outputso an aricultur systm wil minimizin t rquird inputs andaoidin any nati impacts to t arm and surroundin lands.PpsiCo aims to work wit armrs tat dlop a lon-trmconomic plan o fcint, rsponsil arm production.

social & community imProvement

PpsiCo aims to inst in nw knowld and innoations in arminpractics wic can impro ot social and uman capital o tlocal conomis. Sustainal aricultur practics can lp to makt st us o local and aailal rsourcs to impro t wlaro communitis supportin our aricultur supply cain.


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PpsC as ac a b as a

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water management

Saving Water by Direct Seeding of Rice

India rows approximatly 130 million tons o ric across rouly 108million acrs, makin it on o t larst ric producrs in t world.Traditionally, ric is cultiatd y sowin sds in a small nursry, wrt sds rminat into sdlins. T sdlins ar tn transrrdmanually into t main fld and tn rown wit our to f incs owatr at t as o t crop or t frst six to it wks, mainly toprnt wd rowt.

In India, a rion tat acs sr watr sortas, an aricultur procsscalld dirct sdin o ric lps rowrs aoid tr watr-intnsistps: puddlin, transplantin and standin watr. Atr succssul trialswit dirct sdin in PpsiCos rsarc and dlopmnt flds, tcompany as dlopd a dirct sdin macin or its armrs. In 2010,PpsiCo xpandd dirct sdin and applid it to approximatly10,000 acrs, sain mor tan 7 illion litrs o watr. And, causin dirct sdin tr is no watr at t as o t crop, tr is also

a 70 prcnt rduction o rnous as missions.

facts

Aricultur uss 70% o t worlds watr.

In dlopin countris, 80 % 90% o rs watris usd or aricultur.

Only 17% o all cropland is irriatd, ut it proids30% 40% o t worlds ood production.

Mor tan 60% o t worlds irriatd ara is in Asia, mosto wic is dotd to t production o ric.

AbOve: PpsiCo introducd, or t frst tim in India, a spcial tractor wit a dirctsdin macin adjustal or sd arity, plantin dpt and plant-to-plant spacin.

RIghT: Dirct sdin o ric tcnoloy is also rducin costs or armrs lik tison in Punja, India.

our direCt Seeding of riCe teChnologyin indiA SAved more thAn

7 billionliters of water in 2010

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soil conservation and Preservation

Growing Oats Protects the Soil

Oats proid xcllnt soil rosion control. In Canada, many aras o oursupplis ar plantd wit zro tilla, a way o rowin crops rom yarto yar witout disturin t soil trou xcssi us o cultiationpractics. Adancmnts in macinry tcnoloy and wd controlcmicals a mad zro tilla a ial armr practic tat promots

soil, watr and wind rosion rductions.Oats a an xtrmly frous and prolifc root systm similar to, and insom cass, ttr tan wat and arly. Many armrs us oats in araswit soil rosion risks rom otr crops to control urtr dama andlp stailiz t soil. T xtnsi root systm o oats nals t cropto fcintly utiliz aailal nutrints in t soil, rsultin in a lowrrquirmnt or applid rtilizrs tan many otr crops. Otr tanwd control, w to no cmical additis ar rquird to row oats,caus t crop is rsistant to many soil-orn disass.

Compard to otr crops includin wat, ric, corn and soy, oatssr as a prmir rotation crop, and t straw and crop rsidusrturnd to t soil ar iwd as ood sourcs o crop nutrints.

In addition, Quakr Oats rains ar rown rom a slct roup oaritis tat a n rd rom a dirs rmplasm to assur iproductiity and optimal nutritional contnt.

facts

Soil dradation as rducd loal aricultur productiityy 13% in t last 50 yars.

Witout innoati consration and prsration tcniqus,12 million ctarsor nou land to row 20 million tonso rainar lost to dsrtiication ac yar. Tis annualloss is aout t siz o grc or Npal, and rprsntsnou rain to d or 6 million popl pr yar.

Quakr Oats as workd wit armrs or or 70 yars and o rs 100 prcntNort Amrican-rown oats.

oats helP stabilize the soil andreduce soil erosion. many of ourcanada suPPlies are Planted with

Zerotillage

Sustainable Agriculture 3


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agrochemical management

Optimizing Agrochemical Application

PpsiCo as sral onoin projcts to try to minimiz unicid usain Russia, t UK and eypt. On o ts projcts proids onlin datatat adiss rowrs on t corrct typ, amount, and tim to applyunicids or cti control o t lat lit paton. Ts toolsincras unicid us fcincy and otn lowr t amount o acti

inrdint applid.Pst manamnt plans ncoura t us o tools, suc as watrmonitorin, to prdict t arrial o plant patons, wic rsult intartd psticid applications.

PpsiCo is actily nad in asic and applid rsarc to controlZra Cip (ZC), a d isas rsultin rom actrial inction in potatos.Tis disas causs sinifcant quality dcts in potato cips in sralcountris across t lo, and is transmittd y t potato psyllid,an insct wic is callnin to control.

Frito-Lay, wit t industrys support, introducd nw scinc-asdsolutions to rplac oranopospats and mor ctily control tpotato psyllid. Tis tartd approac to pst manamnt can rducrisk to non-tart oranisms, suc as pollinators and otr nfcials.

Pst manamnt plans a ld to incrasd scoutin prorams tomonitor or t arrial o t potato psyllid. Trou cti suril-lanc o t potato psyllid population, t total numr o inscticidapplications as n rducd.

energy management

Developing Sources of

Low-Carbon Fertilizer

Tropicana Pur Prmium oran juic is t frst consumr productin t U.S. to otain a caron ootprint crtifd y t Caron Trust.T rsults ound tat almost 40 prcnt o t caron ootprint wasrom t rowin o orans, wit t main contriutor associatd

wit t manuacturin procss o standard rtilizrs.

To rduc t caron ootprint o tis product, PpsiCo launcd atr-yar, 7,200-tr pilot projct in Florida in 2010, wic is dsindto compar low caron rtilizrs wit standard rtilizr and masurt impact on tr and soil alt and quality o juic. T frst yarrsults look ncourain. As a rsult o tis work, Tropicana plans todploy t st rtilizr solutions across tir Florida supply as andloally to citrus and otr crop production.

Reducing Irrigation WaterWhile Increasing Potato Yields

For tr yars, PpsiCo as n aluatin t impact o drip irriationtcnoloy on watr and cmical us fcincy and its ct ont nry ootprint o potato production. In t U.S., a study sowdsuccss in rducin irriation watr y mor tan 20 prcnt, witan ara yild incras o 19 prcnt. by utilizin drip irriation todlir crop inputs, t numr o tractor passs trou t fld can rducd wil optimizin timin and accuracy o dliry. Nitronwas applid sral tims in smallr tartd amounts, optimizinnutrint uptak and aoidin lacin rsus conntional rtilizrapplication tat applis t ntir amount at t innin o t

sason. Tis application mtod rsultd in improd plant alt andttr crop yild, and sad on tractor pass tat quats to a sainso $15 pr acr.

factS

Nw typs o rtilizrdu to dirnt manuacturinprocsss and cmical compositionmit lss caron.

Nw mtods, suc as prcision aricultur, ar lpinarmrs around t world to mor prcisly aluat cropsand tir rquirmnts to produc optimum yilds.

To mak t st juic, Tropicana works wit som o Floridas most stalisdrosknown or suprior, sandy soil conditions, stat-o-t-art irriationpractics, and commitmnt to rowin t fnst citrus in t world.

facts

In 2009, wds, patons and inscts causd approximatly$225 illion in lost ood alu in t U.S. alon.

Crop rotation and otr prntion tactics in usd in tUK to control psts witout t us o cmicals ar nowin sard across our loal prorams.

PpsiCo India as partnrd wit or 11,000 armrs workin across Punja,Uttar Prads, Karnataka, biar, Wst bnal, gujarat and Maarastra in ordrto supply world-class cip-rad potatos.

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farm economics and land management

Pioneering Crop Initiatives

in Desert Conditions

PpsiCo Cina dlopd a ily producti mtod o rowinpotatos, wat and corn in Innr Monolia. Tis is a tanildmonstration to ot t Cins ornmnt and local armrs otcnolois to impro low producti soils and modls to impro

soil staility in aras raad y sand storms. PpsiCo as installdt ncssary inrastructur (roads, lctric supply), watr-consrinpiot irriators and sand dun stailizin crops (sand willows, trs)to protct soil rom rosion causd y sand storms.

Partnrsips wit local armrs in otr aras o Cina a introducd

piot irriation as an altrnati to traditional flood irriation witan initial watr sains o 30 prcnt. Tis nals PpsiCo to rotatcommrcially ial crops, includin wintr wat, potato, sorumand corn. PpsiCo is moin on stp urtr y dlopin dripirriation, wit t aim o consrin 50 prcnt o t watr usdas compard to traditional armin mtods.

PpsiCo-manad potato arms in Cina annually supply or 40,000tons o potatos. byond armin, PpsiCo is also lpin to nanct social dlopmnt o armrs and tir amilis. For xampl,PpsiCo uilds liraris in local communitis to promot litracy andducation or cildrn o t local armrs.

social and community imProvement

Creating Sustainable Corn Initiative

in Developing Communities

Saritas, PpsiCos snack usinss in Mxico, was awardd a i onorrom t Prsidnt o Mxico or its commitmnt to support armintrou t educampo proram. educampo contriuts to t oralldlopmnt o low-incom armin amilis in corn-producin

communitis, wil also uarantin i-quality sds or our snacksproduction in Jalisco. Tis is an xampl o ow our company and tcommunitys intrsts intrsct.

educampo was stalisd trou an allianc twn SaritasFoundation and t Mxican Foundation or Rural Dlopmnt(FUNDAR), an oranization ddicatd to promotin prorss in poorarmin communitis. Tis proram promots t cration o smallsustainal aricultur usinsss and positily impacts poplslis. btwn 2008 and 2010, t proram ad imprssi rsults:

t : 1,827 ctars

c p s: 9,500 tons

c : Dould rom 2.5 tons/ctar to 5.2 tons/ctarincrasin tir ara crop yild y 108 prcnt

facts

T proram impactd narly 300 small armrs and tiramilis trou tcnical support and 12,237 ours oducation.

Land productiity in tartd aras incrasd y 80% andincom incrasd y 300%.

T impact o t proram was lt y 1,200 indirctniciaris includin producrs amilis.

PePsico-owned Potato farms in chinaannually suPPly over

40,000tons of potatoes

A mmr o PpsiCos aricultur tam on t ZanJian potato arm in Cinasguandon rion practics watr consration mtods.

Farmrs in Mxico nft rom tcnical and usinss trainin proidd ySaritas, PpsiCos snack usinss in Mxico.

Sustainable Agriculture 5


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AbOUT PePSICO

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$60 , Ppc pp q

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Ppc a bPepsi Beverages Company Purchase, New York, USA

Ppc a fFrito-Lay North AmericaPlano, Texas, USA

Quaker Foods North AmericaChicago, Illinois, USA

Latin America FoodsMexico City, Mexico

Ppc epGeneva, Switzerland

Ppc a, m e & aDubai, United Arab Emirates

w hq

USAPurchase, New York

PepsiCo Agri 0531 Final

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