Technology & Innovation Series · Sustainable Farming Program (SFP). WATER We replenished more than 1.1 billion liters of water through watershed conservation projects locally in

Welcome to the

Technology & Innovation Series

TECHNOLOGY & INNOVATION SERIES • APRIL 27–30

Agenda1. Helping to Build a More Sustainable Food System

Todd Fayne, PepsiCo; Monday, April 27, 2:00–3:00 p.m. EDT

2. An Ink Supplier Perspective on Industry 4.0Juanita Parris, Sun Chemical Corp.; Tuesday, April 28, 2:00–3:00 p.m. EDT

3. Technology Innovation and the Success of FailureDavid Crawley, University of Houston; Wednesday, April 29, 2:00–3:00 p.m. EDT

4. Industrial Custom Printing: A Status ReportCraig Reid, CTR Resources, LLC; Thursday, April 30, 2:00–3:00 p.m. EDT

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Technical Association of the Graphic Arts (TAGA)

Professional association dedicated to research and innovation in graphic communications and relatedtechnology

More than 4,000 papers published, written by scientists and researchers

Annual conference held every March Directed by 23-person TAGA Board;

part of Printing Industries of America www.taga.org


Event Sponsors


Helping to Build a More Sustainable Food System

Todd FaynePrincipal Engineer, PepsiCo

Speaker

Paul CousineauVP, Dow Jones

Moderator

HELPING TO BUILD A MORE SUSTAINABLE FOOD SYSTEM

1

Todd Fayne Sr. Principal Engineer

PEPSICO BRANDS ARE ENJOYED 1 BILLION TIMES PER DAY

GLOBAL BEVERAGES GLOBAL SNACKS

PERFORMANCE BRANDS SCALE PEOPLE

More than

$64 billionnet revenue in 2018

22 billion-dollarbrands

More than >200 countries & territories

More than

260,000employees

Our vision is to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose

OUR MISSION & VISION

3

Winning with Purpose

Create More Smiles with Every Sip and Every Bite

Integrating purpose into our business strategy and our brands, and doing even more for the planet and for our people

FASTER STRONGER


BETTER

4

OUR ASPIRATIONS


PepsiCo is embracing a new purpose behind our sustainability agenda: to help build a more sustainable food system. One that can meet human needs and continue to drive economic growth and social development, without exceeding the planet’s natural boundaries.

- Ramon Laguarta, PepsiCo CEO

“

”5

FOOD SYSTEM UNDER PRESSURE

70% of the world’s fresh water use is in agriculture alone.

A third of greenhouse gas emissions originate in the food system.

Only 14% of plastic packaging is recycled for future use.

Over 800 million people are undernourished.

>50%More than 50% of fertile topsoil is classed as degraded.

/1370%

~40%

>800MM

14%

80%

Almost 40% of adults are overweight.

80% of the world’s extreme poor live in rural areas and

rely mainly on agriculture for their livelihood.

Today, the global food system brings nutrition, economic opportunity, convenience, and enjoyment to more people than ever before, but it faces pressures that threaten its future ability to meet the needs of a growing global population.

6

SIX SUSTAINABILITY PRIORITIES

NEXT GENERATION AGRICULTURE

POSITIVE WATER IMPACT

CIRCULAR FUTURE FOR PACKAGING

IMPROVED CHOICES ACROSS OUR PORTFOLIO

CLIMATE ACTION

PEOPLE & PROSPERITY

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OUR GOALS

NEXT GENERATION AGRICULTURESupport practices and technologies that promote improved

farmer livelihoods and agricultural resiliency

POSITIVE WATER IMPACTDrive water security to assure business continuity, while

positively contributing to communities

CIRCULAR FUTURE FOR PACKAGINGDeliver our vision of a world where plastics need never

become waste


Reduce added sugars, sodium, and saturated fats

CLIMATE CHANGE MITIGATIONCurb climate change by reducing GHG emissions across

our value chain

PEOPLE & PROSPERITYAdvance respect for human rights; Promote a diverse and

inclusive workplace; Increase women’s earnings potential

2018 SUSTAINABILITY PROGRESS HIGHLIGHTS

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CLIMATE We reduced Scope 3 GHG emissions by approximately 2.2 million metric tons (2015 baseline). This represents about 7% progress toward our 2030 target to reduce absolute GHG emissions in our value chain by 20%.

PEOPLE40% of our global manager positions were held by women, progress toward our target of 50% by 2025.

PACKAGING89% of our packaging was recyclable, compostable or biodegradable, progress toward our target of 100% by 2025.

AGRICULTURE51% of our direct farmer-sourced, agricultural raw materials are sustainably sourced through our Sustainable Farming Program (SFP).

WATERWe replenished more than 1.1 billion liters of water through watershed conservation projects locally in high water-risk areas around the world.

PRODUCTS44% of our beverage portfolio had ≤100 Calories from added sugars per 12oz. serving,** progress toward our target of ≥67% by 2025.

**Our global progress is based on our Top 26 Beverage markets, which represent 80% of our global beverage volume as of 2018.

*pp(s) = percentage point(s)

SOURCING INGREDIENTS

RESEARCH & DEVELOPMENT,MANUFACTURING AND PACKAGING

DISTRIBUTION AND RETAIL

CONSUMPTION

POST-CONSUMER

.

5.

1.

2.

3.

4.

PEPSICO PRIORITIES


IMPROVED CHOICESACROSS OURPORTFOLIO

POSITIVEWATER IMPACT

PEOPLE &PROSPERITY


CLIMATE ACTION

Across our value chain, we aim to use our scale, reach and expertise in each priority area to help build a more sustainable food system.

USING OUR SCALE FOR GOOD

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As a global food and beverage company, PepsiCo sources more than 25 crops from

60 countries around the world.

PEPSICO SUSTAINABLE FARMING PROGRAM (SFP)

SFP provides farmers globally with training and resources to help them on the path to greater productivity and sustainability across Environmental, Social and Economic principles.

40,000+ farmers reached

99% of our potato, whole corn, oat and orange farmers currently engaged

51% have already met the SFP standard globally, including allNorth American potato farmers

110 “Demo Farms” across 7countries, spanning over 15,000 acres around the globe, creating and spreading agricultural best practices among farmers

POSITIVE WATER IMPACT

PepsiCo’s business depends on water, and as such, we have a

vested interest, and responsibility, to conserve and protect it at all points

along our value chain.

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In water-stressed regions around the world, PepsiCo is working to:

• Improve manufacturing water-use efficiency

• Improve water-use efficiency in Agriculture by implementing modern irrigation and monitoring

• Replenish the water we use in manufacturing to local watersheds

• Support safe water access for communities

We’ve replenished more than 1.1 billion liters of water through watershed

conservation projects in high water-risk areas around the world.

The PepsiCo Foundation has delivered safe water access to 22 million people since 2006.


13

Packaging helps keep PepsiCo products safe and delicious and limits food waste. But to have a role in a sustainable food system, we have to tackle packaging waste, especially plastics.

REDUCE

• 35% virgin plastic content reduction target across beverage business by 2025

• Light-weighting plastic packaging

• Using alternative materials

RECYCLE

• 100% recyclable, biodegradable or compostable by 2025 (currently 89%)

• Increasing recycled content

• Boosting recycling rates

REINVENT

• Going Beyond the Bottle with SodaStream and other reuse platforms

• Inventing new, more sustainable forms of plastic


14

PepsiCo is introducing new products with more nutritious ingredients and reformulating existing recipes to reduce added sugars, sodium and saturated fat.

REDUCING ADDED SUGARS

• 44% of our beverage portfolio in our top 26 beverage markets met our 2025 added sugars reduction target.

REDUCING SATURATED FAT

• 61% of our food portfolio in our top 23 foods markets met our 2025 saturated fat target

REDUCING SODIUM

• 58% of our food portfolio in our top 23 foods markets met our 2025 sodium reduction target

ACTION ON CLIMATE

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PepsiCo is taking action on climate.Our target is to reduce absolute greenhouse gas (GHG) emissions by 20% by 2030.

Reducing GHG emissions

SCOPE 1 & 2

• In 2018 we decreased our Scope 1 & 2 emissions by 6.4% (against a 2015 baseline); this represents 32% progress toward our 2030 goal.

SCOPE 3

• We reduced our Scope 3 emissions by approximately 2.2 million tonnes in 2018 through our Sustainable Sourcing Program, packaging innovation and more carbon-efficient distribution.

8%92%

UNDERSTANDING OUR EMISSIONS

Scope 3 (indirect)

emissions are 92% of our

total

Scopes 1&2 (direct) are 8% of our emissions

PEOPLE & PROSPERITY

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PepsiCo is committed to advancing respect for human rights throughout our value chain, building diverse and inclusive workplaces and investing in our communities.

HUMAN RIGHTS

• Driving fair and safe working conditions throughout our value chain

DIVERSE & INCLUSIVE WORKPLACES

• Achieving gender parity

40% of our global managers are women, progress toward our target of 50% by 2025

EMPOWERING WOMEN IN OUR COMMUNITIES

• Since 2016, we’ve invested $27.3 million to support initiatives that benefit women in communities where we operate

VISION

ACTIONTO

FROM

GOALS TO HELP US REALIZE OUR VISION

PEPSICOSUSTAINABLE PACKAGING

GOALSINCREASE RECYCLED CONTENT TO 25%IN OUR PLASTIC PACKAGING

REDUCE VIRGIN PLASTIC

RECYCLABLE • COMPOSTABLEBIODEGRADABLE

DESIGN

OF OUR PACKAGING TO BE

100%

ACROSS BEVERAGE PORTFOLIO BY 35%

By 2025:

BEVERAGES

REDUCE RECYCLE REINVENT

PROGRAMS TO SUPPORT VISION & GOALS

DRIVING A CIRCULAR ECONOMY

89%

11%

MAKE 100% OF OUR PACKAGING RECYCLABLE, COMPOSTABLE OR BIODEGRADABLE BY 2025

RECOVER MORE FOOD GRADE rPET withENHANCED RECYCLING

NON-RECYCLABLE

Chart reflects 2018 Data

Our packaging is complex and has had 40+

years of technology optimization.

While PEP is way ahead we are only in our

first decade engineering sustainable materials

Freshness is critical as we embark on sustainable solutions

FOODS

REDUCE RECYCLE REINVENT

PROGRAMS TO SUPPORT VISION & GOALS

?

Global Plastic Action Partnership

INITIATIVE FOR SUSTAINABLE BEVERAGE PACKAGING

LEVERAGING GLOBAL PARTNERSHIPS


Q&A


TAGA Membership Benefits Discounted registration to Annual Technical

Conference (March 14-17, 2021 in Oklahoma City)

Conference presentation files

Annual TAGA Proceedings book containing papers presented

Digital archive of 71 years of TAGA research papers

Access to previous year presentation files


Next PresentationTuesday, April 28, 2:00–3:00 p.m. EDT

An Ink Supplier Perspective on Industry 4.0- Juanita Parris, Sun Chemical Corp.

Documents

Technology & Innovation Series · Sustainable Farming Program (SFP). WATER We replenished more than 1.1 billion liters of water through watershed conservation projects locally in