Like many organizations, we have been on a sustainability journey, learning how to balance short-term and long-term goals and position our company for success for generations to come.

We anticipated the need to take environmental stewardship to a whole new level at the start of the new millennium, recognizing that environmental sustainability was becoming a core component of sustainable success. We began to put in place the systems, processes and metrics needed to drive continual improvement in conserving energy and water as well as to reduce the amount of packaging materials we use for our foods and beverages.

Our sustainability agenda became even more integrated into our business in 2007 when our Chairman and CEO Indra Nooyi introduced “Performance with Purpose,” our goal to deliver sustained financial performance by providing a wide range of foods and beverages from treats to healthy eats; finding innovative ways to minimize our impact on the environment and lower our costs through energy and water conservation, as well as reduced use of packaging material; providing a safe and inclusive workplace for our employees globally; and by respecting, supporting and investing in the local communities in which we operate.

This guiding corporate vision is what underpins our focus on long-term success in a rapidly changing global environment. We have made solid progress. For example, in 2012:

  • We increased our efficiency by 14 percent compared to 2006, representing an estimated $70 million savings in 2012. To get an apples-to-apples comparison between 2012 and 2006, this measurement excludes companies we have acquired since the 2006 baseline, as well as any divestitures.
  • We achieved our goal to improve PepsiCo’s global operational water-use efficiency by 20 percent per unit of production compared to our 2006 baseline, saving the equivalent of nearly 14 billion liters of water in our direct operations in 2012 and more than $15 million in water costs. We achieved that goal four years ahead of schedule.
  • We exceeded – by 20 percent – our goal to reduce the packaging weight of our products by over 350 million pounds over the last five years.
  • Notwithstanding this progress, as a company with a growth agenda, we know we must continue to learn and improve, collaborating with partners across all sectors to deliver innovative solutions that address the interrelated challenges of climate change, water scarcity and food security while positioning our company to deliver long-term financial growth.

    Our sustainability journey continues. As we look at the global environmental challenges, the road ahead may not be easy, but important work seldom is.