PepsiCo Launches 2025 Sustainability Agenda
Designed to Meet Changing Consumer and Societal Needs
PURCHASE, N.Y., Oct. 17, 2016 – PepsiCo, Inc. (NYSE: PEP) today announced an ambitious global sustainability agenda designed to foster continued business growth in a way that responds to changing consumer and societal needs. The company’s efforts, which focus on creating a healthier relationship between people and food, include specific 2025 goals to continue transforming PepsiCo’s food and beverage product portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.
These new initiatives continue PepsiCo’s decade-long commitment to delivering Performance with Purpose, a pioneering vision launched in 2006 rooted in the fundamental belief that business success is inextricably linked to the sustainability of the world we share.
“To succeed in today’s volatile and changing world, corporations must do three things exceedingly well: focus on delivering strong financial performance, do it in a way that is sustainable over time and be responsive to the needs of society,” said PepsiCo 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. We have created significant shareholder value, while taking important steps to address environmental, health and social priorities all around the world.”
“PepsiCo’s journey is far from complete, and our new goals are designed to build on our progress and broaden our efforts,” Nooyi continued. “We have mapped our plans against the United Nations Sustainable Development Goals, and we believe the steps we are taking will help lift PepsiCo to even greater heights in the years ahead. Companies like PepsiCo have a tremendous opportunity – as well as a responsibility – to not only make a profit, but to do so in a way that makes a difference in the world.”
Three Pillars of Sustainable Growth
PepsiCo’s Performance with Purpose agenda for the coming decade is focused on three core priorities:
Across its business and in partnership with others, PepsiCo is taking a holistic approach to achieving progress in all three areas. The company’s plans have been informed by current scientific research, consumer expectations and dialogue with key stakeholders, as well as by the United Nations’ 2030 Agenda for Sustainable Development
In pursuing these goals, the company’s actions will be consistent with responsible capital allocation, commitment to its financial targets and the creation of shareholder value. The company believes that achieving these goals will enhance its long-term financial performance and returns.
“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,” said Bill George, senior fellow, Harvard Business School. “PepsiCo's example is a positive reminder that the world’s top-performing companies are increasingly measured by more than short-term financial returns. They can and must be forces for good in the world, and those that embrace this mindset will be best positioned to deliver for both shareholders and society.”
PepsiCo’s ambition is to enable better nutrition at scale by continuing to develop a broader portfolio of food and beverage choices and increasing access to great-tasting, nutritious options.
Informed by the latest dietary guidelines of the World Health Organization and other authorities, the company will continue to refine its food and beverage choices to meet changing consumer needs by reducing added sugars, saturated fat and sodium levels in its product portfolio.
The company has set the following goals for 2025:
The company also reaffirms its commitment to deliver on its Global Labeling and Responsible Advertising to Children Policies. PepsiCo has and will continue to support industry actions in these areas.
PepsiCo’s ambition is to reduce the environmental footprint of the food system through operational efficiencies and mobilization of its suppliers and business partners.
The company supports the Paris Climate Agreement and is focused on reducing its environmental impact while growing its business. It will continue improving the efficiency of its manufacturing and distribution operations while also broadly extending its environmental stewardship efforts across its global value chain.
As part of its focus on protecting the planet, PepsiCo will work to achieve positive water impact; significantly lower its carbon emissions, with significant efforts to reduce emissions related to agriculture and packaging; promote sustainable sourcing of crops; and reduce waste.
“The planet is facing unprecedented challenges that require us to make transformational changes to the way we grow the economy, feed the world and provide dignified employment,” said Dr. Andrew Steer, president and CEO, World Resources Institute. “I welcome the breadth of PepsiCo’s approach and I urge the company to continue leading on these important issues. PepsiCo’s actions demonstrate how business can serve as an agent of change and enable the type of solutions needed for us to thrive in a resource-constrained world.”
Specifically, PepsiCo plans to:
PepsiCo’s ambition is to empower people and social development across its operations, supply chain and communities.
Building on its support for the United Nations Guiding Principles on Business and Human rights, PepsiCo is significantly broadening its focus on respecting human rights across the company’s supply chain. In addition, the company is pursuing new initiatives to promote diversity in its global workforce, support the advancement of women, and spur social and economic development in communities around the world.
“Thousands of farmers and communities around the world benefit from PepsiCo’s sustainable sourcing practices,” said Paul Rice, President & CEO, Fair Trade USA. “Beyond improving the livelihoods of families and contributing to positive social outcomes, sustainable sourcing is increasingly important to a growing number of consumers who want to shop their values through Fair Trade Certified products.”
Specifically, PepsiCo plans to :
PepsiCo’s Product, Planet and People goals are more fully discussed in the company’s 2015 Sustainability Report, available at www.pepsico.com/purpose.
PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $63 billion in net revenue in 2015, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our fundamental belief that the success of our company is inextricably linked to the sustainability of the world around. We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world is what enables PepsiCo to run a successful global company that creates long-term value for society and our shareholders. For more information, visit www.pepsico.com.
This communication contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim,” “believe,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “target” and “will” or similar statements or variations of such terms and other similar expressions. Forward-looking statements are generally identified through the inclusion of words such as “aim,” “believe,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “target” and “will” or similar statements or variations of such terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such statements, including changes in demand for PepsiCo’s products, changes in the legal and regulatory environment, regulatory initiatives, including the imposition by any jurisdiction (within or outside the U.S.) of a new or increased taxes or other measures that impact PepsiCo’s products and the timing thereof, PepsiCo’s ability to compete effectively, PepsiCo’s ability to achieve its goals with respect to products, people and planet, unfavorable economic conditions in the countries in which PepsiCo operates, and the other factors discussed in the risk factors section of PepsiCo’s most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.