PEPSICO REACHES 2025 GOAL ON WATER-USE EFFICIENCY IN HIGH WATER-RISK AREAS TWO YEARS EARLY
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Insights
PepsiCo's announcement of achieving its water-use efficiency goal highlights the company's proactive approach to environmental sustainability. The practical implications of such achievements are twofold. Firstly, in regions where water scarcity is a pressing issue, the reduction in water usage can contribute to local communities' resilience and sustainability. Secondly, from a corporate sustainability perspective, PepsiCo's initiatives may lead to cost savings in the long term, as water is a significant operational cost for manufacturers.
By utilizing innovative technologies like membrane bioreactor systems, PepsiCo demonstrates a commitment to investing in sustainable practices that have a tangible impact on its operations. This technology not only reduces freshwater demand but also aligns with global efforts towards circular economy principles, where resources are reused and recycled. The introduction of such systems can serve as a benchmark for industry peers, potentially influencing a broader shift towards sustainable water management practices.
The recognition by CDP places PepsiCo in an elite group of companies leading in transparency and water security. For investors, this recognition could signal a robust environmental, social and governance (ESG) profile, which is increasingly important in investment decision-making. Companies that perform well in ESG metrics are often considered to be better long-term investments due to their lower risk profile and potential for sustainable growth.
Furthermore, the announcement may influence investor sentiment by showcasing PepsiCo's ability to meet and exceed its sustainability targets ahead of schedule. This can be interpreted as a sign of strong management and operational efficiency, potentially affecting the company's stock valuation positively. Investors may also anticipate future cost savings from reduced water usage, which could have a favorable impact on PepsiCo's profit margins and, consequently, on shareholder returns.
PepsiCo's strategic end-to-end transformation, pep+, is indicative of a broader trend where companies are integrating sustainability into their core business strategy. Achieving water-use efficiency goals ahead of schedule not only benefits the environment but also enhances the company's competitive advantage. It demonstrates to stakeholders that PepsiCo is capable of executing complex sustainability projects effectively.
As the company aims to be net water positive by 2030, it is likely to explore further advancements in sustainability practices. This could lead to the development of additional proprietary technologies and processes that may be patented and potentially licensed, creating new revenue streams. The focus on water stewardship also positions PepsiCo favorably in the eyes of consumers who are increasingly making purchasing decisions based on corporate sustainability records.
As part of pep+ (PepsiCo Positive) – the company's strategic end-to-end transformation – PepsiCo will continue working towards additional water stewardship ambitions, including aiming to be net water positive by 2030.
"Water is a fundamental human right and yet water insecurity remains a significant global challenge with billions of people lacking access to safe water," said Jim Andrew, Chief Sustainability Officer, PepsiCo. "That's why good water stewardship is so important and has long been a priority for PepsiCo and the communities we serve. Our vision is that wherever in the world we operate, water resources will be in a better state than before we arrived. And while we're proud to have achieved this goal in high water-risk areas two years early, we will continue our unyielding focus on meeting our 2030 ambitions."
PepsiCo saved billions of liters of water through several initiatives that contributed to reaching this goal. Crucial to these efforts were innovative technologies and shared best practices that were scaled globally through programs such as PepsiCo's in-house Resource Conservation Program and teams. Examples include:
- Scaling a new approach to how we wash corn when making food products such as Tostitos, Fritos and Doritos to more than 100 global manufacturing lines within a year, with potential to save more than 640 million liters of water annually.
- Implementing membrane bioreactor technology at 21 manufacturing sites globally, including 14 in high water-risk areas, to purify process water to drinking-level standards for reuse in operations, allowing a site to reduce its freshwater demand by an average of
70% . - Taking the water that's naturally found in potatoes and using it to help run food manufacturing facilities. Implemented at sites in
India ,Mexico ,Poland andThailand , this innovative technology developed by PepsiCo Research & Development teams captures and treats vapor that is released by potatoes when they are cooked for products such as Lay's and converts it to drinkable water that is used to help run manufacturing facilities. This process can save a single site up to 60 million liters of water per year.
To learn more about PepsiCo's water goals and progress, visit PepsiCo's ESG Topics A-Z.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.
Cautionary Statement
This release contains statements 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," "ambition," "anticipate," "believe," "drive," "estimate," "expect," "goal," "intend," "may," "plan," "project," "strategy," "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 damage to PepsiCo's reputation or brand image; water scarcity; disruption of PepsiCo's manufacturing operations or supply chain, including continued increased commodity, packaging, transportation, labor and other input costs; and climate change or measures to address climate change and other sustainability matters. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its 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 statement, whether as a result of new information, future events or otherwise.
1 Based on 2023 data versus a 2015 baseline.
Contact: pepsicomediarelations@pepsico.com
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SOURCE PepsiCo, Inc.
FAQ
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