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Environment Sustainability
To the planet we all shareIt’s a promise to be a good citizen of the world, protecting the Earth’s natural resources through innovation and more efficient use of land, energy, water and packaging in our operations.
Positive Water Balance ...................................................................................................................... 03
Empowering Farmers ........................................................................................................................ 07
Waste to Wealth ................................................................................................................................. 09
Reducing Environmental Impact ...................................................................................................... 11
Case Studies: Community Water Initiatives ..................................................................................... 13
2
PepsiCo’s goals and commitments include
n Striving for positive water balance in our operations in water-distressed areas.
n Improving our electricity use efficiency by 20 percent per unit of production by 2015.
n Reducing our fuel use intensity by 25 percent per unit of production by 2015.
n Committing to an absolute reduction in GHG emissions across global operations.
n Applying proven sustainable agricultural practices on our farmed land.
n Providing funding, technical support and training to local farmers.
n Promoting environmental education and best practices among our associates and business partners.
n Integrating our policies and action on human health, agriculture and the environment to make sure that
they support each other.
3
Positive Water Balance
Water InitiativesPepsiCo respects the right of all human beings to water and is committed to minimize the impact of its business
on the environment.
Positive water balanceIn 2009, the company achieved a significant milestone: Positive Water Balance. Through
various initiatives of recharging and replenishing water, it was able to give back to the
community more water than it consumed in its manufacturing processes. In 2010,
PepsiCo has further increased the amount of water saved and is now water positive by
4.3 billion liter, a fact verified by Deloitte Touche’ Tohmatsu India Pvt Ltd.
First Company in the Beverage World
to Achieve Positive Water Balance
Giving back more water than we consume
Savings through direct seeding interventions (7836)
Water re-charged through community programme
(2080)
In plant water recharging and harvesting (83)
Saving through drip irrigation (144)
Water Credit (in MML)
Water Debit (in MML)
Water usage in manufacturing facilities (bottling & snacks)
(5826)
Total (Water Credit) 10143
Total (Water Debit) 5826
For more details on how PepsiCo has achieved Positive Water Balance, please visit PepsiCo’s website: www.pepsicoindia.co.in.
4
Increasing credit
Recharging Water Through Community InitiativesAs sustainability is an important outcome, community ownership is at the heart of PepsiCo’s CSR approach.
It works with the local Panchayat or municipality and engages with the community in planning as well as
executing the project.
n PepsiCo uses integrated water management techniques, inclusive approach and introduction of
sustainable agricultural practices such as drip-irrigation, education programs on water conservation and
better agronomic practices.
n The initiatives result in an enhanced ground water table, improved water access and improved farm
yields and incomes.
n PepsiCo has also initiated several projects to provide water to villagers who earlier had to walk long
distances to collect water.
n In 2010, water projects created the potential to recharge over 2 billion liters of water contributing towards
positive water balance and benefitting nearly 41,000 community members. Community participation has
played a key role in the success of this initiative.
In-Plant Water Recharge and HarvestingPepsiCo employs rainwater harvesting initiatives within its manufacturing locations, such as roof-water
harvesting and recharge ponds. At some plant locations, it harvests and collects rainwater in excavated ponds
while at other plants it uses roof-water harvesting to recharge water.
Water tank installed by PepsiCo at Neelamangala
5
Water Conservation Through Irrigation EfficiencyPepsiCo has globally made a promise to its stakeholders of protecting natural resources, particularly water, by
driving world-class efficiencies in water usage in its operations, preserving water resources and enabling ac-
cess to safe water.
Direct seeding—PepsiCo India is leading a pioneering initiative to replace transplanting of paddy with direct
seeding technology, which has helped reduce water consumption in paddy cultivation by 30 percent and has
also cut down green house gas emissions by 75 percent. The results have been vetted by leading research
institutes like the Indian Agriculture Research Institute (IARI) and the International Rice Research Institute (IRRI).
In 2010, PepsiCo India brought 10,000 acre of land under direct seeding and saved 7 billion liter of water, in six
states, namely Punjab, Rajasthan, UP, Haryana, Tamil Nadu and Karnataka.
Drip irrigation—PepsiCo is helping farmers in water-scarce areas in Maharashtra, Gujarat, Karnataka and Hary-
ana and promoting drip irrigation in over 1100 acres. It is estimated that every acre saves approximately 700
kiloliter of water. In 2010, drip irrigation saved 144 mml of water. PepsiCo’s initiatives include:
n Helping raise money for the assets through banks
n Incentivizing the farmers for the adoption of drip irrigation through a buy-back mechanism
n Providing help to design agricultural equipment to make drip irrigation commercially viable for farmers.
Seeding machine used in the direct seeding method
Drip irrigation
6
Reducing debit
Decreasing In-plant Consumption of WaterPepsiCo India plants have been able to reduce water use in the manufacturing process through:
n Innovative reuse and recycling initiatives in the manufacturing process
n Installation of water recovery equipment to reduce water consumption
n Reduction in plant water consumption
PepsiCo India has adopted processes to treat processed water before returning it to non-potable water uses.
For cooling towers, watering gardens and flushes, water is being reused and plants are moving towards
becoming a zero-discharge facility.
In order to reduce water stress, PepsiCo’s rain or roof water harvesting methods have become standard
practice at all its plants. Jainpur, Bazpur, Bharuch, Palakkad, Panipat, Neelamangala, Mamandur and Mahul
plants harvest and collect rain water in excavated lakes and ponds.
A 37% reduction in water use since 2006(ltr water used/ltr beverage produced)
Water recharge filter at the Channo plant
2006
3.52.9
2007
2.5
2008
2.4
20092.2
2010
7
Farmers’ FriendOver the last 20 years, PepsiCo India has been
combining deep insights into Indian farming
with its global technological expertise to transform
the lives of farmers. When PepsiCo started its India
operations in 1989, it was with a commitment to
invest in the horticulture-based food processing
industry in Punjab. PepsiCo worked closely with
farmers and the yields of tomatoes increased more
than 300 percent while the processing season in the
plant went up from 28 to 60 days. The improved
yields helped increase farmer incomes despite
lower prices to the consumers.
PepsiCo India established a model of partnership with farmers and now works with over 22,000 happy
farmers across nine states to improve the yields in various crops, including potato and paddy. It works
closely with farmers through the crop lifecycle by providing new varieties, technologies and sustainable
farming practices. PepsiCo plans to increase its farmer connect to over 30,000 farmers by 2013. In PepsiCo,
farmers truly have a friend and development partner.
Empowering FarmersDevelopment partner to small and marginal farmers
Anil Gunnes with his family: A farmer who has benefited from associating with PepsiCo
8
Collaborative farming – potatoPepsiCo’s 360-degree farmer connect program has transformed the lives of small and marginal farmers across
India
PepsiCo India was the first corporate to introduce collaborative farming of process-grade potatoes in India
in 2004-05 and in 2010 was working with over 12,000 farmers—a majority of them being small and marginal
farmers, spread across Gujarat, UP, Maharashtra, Karnataka, Bihar, West Bengal and Punjab. PepsiCo has helped
improve their incomes through a 360-degree farmer connect program that includes:
n Assured buy-back of produce at pre-agreed prices, which insulates farmers from open market price
fluctuations.
n Supply of high quality planting material, including its proprietary advanced seed varieties.
n Offering advanced plant protection program and technical know-how developed in collaboration with
leading agri-input companies like DuPont, Bayer and BASF.
n Soft loans through a national level tie-up with State Bank of India.
n Facilitation of crop/weather risk insurance in partnership with leading insurance companies to protect farm
incomes.
The association with PepsiCo India has not only raised the incomes of small and marginal farmers, but also
their social standing.
Bumper crop at a PepsiCo farmer’s field
9
Waste to WealthEffective and environment-friendly disposal of waste
A winning partnershipPepsiCo’s Waste to Wealth initiative is a unique and innovative, employment and income-generating partner-
ship that provides clean and healthier environment and improved quality of life for 450,000 people across
Pammal, Sangareddy, Panipat, Chennai, Tenkasi, Nagapatinam and Cuddalore.
n The initiative is focused at creating replicable community models through a successful four-way partner-
ship between PepsiCo, the NGO Exnora, the municipality and the community to address a major health
concern—community waste.
n Organic waste is converted into compost using vermi-culture and inorganic waste is sorted into categories
for recycling. Recyclable waste, such as PET and plastics, waste paper and tetra packs, is recycled.
n The community awareness program includes door-to-door campaigns and street plays to motivate people
to segregate organic and inorganic garbage at source to enable recycling.
n Every aspect of the program is built around maximum community and government participation to help it
evolve into a self-sustaining model.
Successful four-way partnership between PepsiCo, the NGO Exnora, the municipality and the community
Waste collection and segregation at Chennai
10
From waste to smilesn Helping 450,000 people across 7 cit-
ies live a more hygienic and healthier
life, with 85 percent of their household
garbage being recycled.
n The high quality organic manure
made from the biodegradable waste
is branded and sold, giving the initia-
tive ‘Waste to Wealth’ its true mean-
ing. The underprivileged waste col-
lectors earn their income from this
‘waste’. The project provides liveli-
hood to more than 500 poor commu-
nity members.
n The initiative recycled nearly 30,000 tons of solid waste in 2010 that would have otherwise been relocated
to landfills.
The waste is converted into high quality organic manure and sold
Benefiting 450,000 people across 7 cities by recycling 85 percent of the household waste
Waste segregation at Panipat
11
Climate change affects everybody. PepsiCo under-
stands its impact and is taking steps to mitigate the
same. On the one hand it is adopting renewable en-
ergy sources to meet the energy requirements in
all its operations. And on the other hand, it is using
means to reduce its carbon footprint by decreasing
the very consumption of energy as well as employ-
ing ways to reduce green house gas emissions.
Lowering the carbon footprintn There has been an 80 percent reduction of solid
waste disposal. Organic compost is produced
from biodegradable waste and packaging waste
is recycled.
n Initiatives to reduce packaging have resulted in
decreased consumption of 2,154 tons of virgin
plastic and 2,000 tons of glass.
n The bio-methane plant in Pune has managed to
reduce green house gas emissions by 700 metric
tons per year.
n The rice husk boiler in Kolkata meets 75 percent
of the plant’s energy needs, has helped reduce
green house gas emission by 4500 metric tons
per year and has resulted in a potential saving of
$0.8 million per year.
Using renewable energy sourcesOf the total energy used in all PepsiCo plants, 30 per-
cent comes from renewable sources. The initiatives
in these plants include use of wind energy, conver-
sion from fossil fuel to bio-fuel and the use of solar
energy.
Reducing Environmental Impact
30 percent energy from renewable sources
12
n Biomass boilers are being used in all company-owned bottling operations (COBO) plants. In the beverage
plants, 38 percent of all energy used is through renewable sources.
n A wind turbine has been commissioned in Tamil Nadu. Of the 11.3 million units of total consumption, 3.8
million units will come from the wind turbine. The turbine also has the potential to offset 70,000 tons of
carbon emissions over its entire 20-year life cycle.
n A new wind turbine already functional in Maharashtra generated 2.58 MM units in 2010 versus 8.6 MM
units used.
n Currently all PepsiCo plant warehouses use solar lighting and five PepsiCo plants use tubular daylight
devices that capture solar light for use in enclosed spaces. Roof sheets in all plants are being improved to
enhance solar lighting in warehouses, utilities and water treatment areas. Solar water heating is the next
step in the journey.
Use of bio-fuels in PepsiCo plants helps reduce dependence on fossil fuels
13
PepsiCo Community Check–Dam Project Paithan, Aurangabad
The initiativePepsiCo conducted a water resource assessment study near its Aurangabad plant. In partnership with a
civil society organization, Alternative Development Initiatives (ADI), PepsiCo selected the most vulnerable
village, Wahegaon, as well as Mudhalwadi, Rahatgaon and Esarwadi, as the core areas to implement its
interventions to replenish ground water. PepsiCo India then constructed 13 check-dams and recharged over
100 wells.
ImpactThe project created the potential to recharge more than 1 billion liters of water. It benefits nearly 12,000
community members through improved access to water, additional crops, increase in yield of rain-fed
crops and the opportunity for a second cultivation cycle during the Rabi season due to improved availability
of water. Water levels have visibly risen after years; old dry wells have water again and farmer incomes
have improved by Rs. 20,000/acre. PepsiCo has also provided safe drinking water to Nagnath Vidyalaya,
Wahegaon, by laying an underground pipeline, an overhead tank and taps.
Case Studies: Community Water Initiatives
13 check dams at Paithan have benefited 12,000 people
14
Replenishing Water Through Community Water Harvesting Project, Neelamangala
The initiativeIn Neelamangala, Bangalore Rural, PepsiCo has partnered with ADI to protect and replenish water resources
through the creation of water harvesting structures by introducing artificial recharge systems within water
bodies. The water project at Neelamangala focuses on the creation of water harvesting structures in
three villages—Thorecamphalli, Hosur and Tonchinkuppe, and also the installation of a roof-top rainwater
harvesting structure in the T. Begur village. The goal of the project is to improve water resources in the
community, recharge wells and increase the production of rainfed crops.
ImpactThe project has created the potential to recharge 908 million liters of water per year. This benefits 4000
people through improved water resources in the community, recharging wells and also improved water
availability for rainfed crops.
Water recharge pond at Neelamangala
Water harvesting initiatives by PepsiCo help 4000 people get improved access to water
15
Water Harvesting Project, Panipat
The initiativePepsiCo successfully completed its community water initiatives in Panipat. The project focuses on the
rejuvenation and creation of water recharge structures aimed to improve the water availability for the
neighboring community. PepsiCo has constructed four ponds (water harvesting structures) with an induced
recharge system that will enhance ground water recharge in three villages – Babarpur, Gudha and Ganjbar,
with the potential to recharge 175 million liters of water.
ImpactThe project benefits nearly 10,000 people in and around Panipat. PepsiCo has also introduced in one pond
the sustainable ‘duckweed system’ to treat village wastewater and use it for pisciculture and irrigation.
PepsiCo has constructed four water harvesting structures with a potential to recharge 175 million liter of water
Water conservation and harvesting initiatives in and around Panipat benefit 10,000 people
16
TO THE PLANET WE ALL SHARE
It’s a promise to be a good citizen of the world, protecting the Earth’s
natural resources through innovation and more efficient use of land, energy, water and packaging in our operations.
TO THE PEOPLE OF THE WORLD
It’s a promise to encourage people to live healthier by offering a portfolio of both enjoyable and wholesome food
and beverages.
TO THE ASSOCIATES OF PEPSICO
It’s a promise to invest in our associates to help them succeed and develop the skills needed to drive the
company’s growth, while creating employment opportunities in the
communities we serve.
For any queries contact: [email protected]
For more details, visit www.pepsicoindia.co.in