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"Your descendants shall gather your fruits." — Virgil

The second component of purpose is environmental sustainability. Companies — like individuals — must act as custodians of our natural resources. As it is for each individual, it is a matter of moral urgency that companies do what they can. But it is a matter of business urgency too. Today, recruiting the best people is difficult without a good record on the environment — to say nothing of the direct link between resource conservation and business productivity.

Our stated goal is to further reduce our water and energy usage and move towards the ideal of "net neutral." By 2015, corporate-wide, we will reduce per-unit water consumption by 20%, electricity consumption by 20% and manufacturing fuel consumption by 25% — as compared with our consumption metrics in 2006. We evaluate each project against return on investment hurdles, but also consider intangible benefits and longer-term implications. Here are some of the ways we continued to make real progress in 2007:

  • Reusing water from processing, working with local communities to provide access to clean water, and supporting local farmers to deliver "more crop per drop."
  • Incorporating consideration of environmental sustainability issues and opportunities as part of every capital expenditure evaluation for projects greater than $5 million.
  • Using new technologies to save energy, and working out ways to communicate our conservation efforts through brand marketing activities.
  • Offsetting the total purchased electricity used by all PepsiCo U.S.-based facilities, by purchasing renewable energy certificates.

These initiatives pay. Since 1999, Frito-Lay North America has reduced per-pound water use by more than 38%, manufacturing fuels by more than 27%, and electricity by more than 21%, thereby saving $55 million in energy and utility costs compared with 1999.

As a result of these and many other actions, detailed later in this report, we earned inclusion in the Dow Jones Sustainability Index (DJSI) in both their North America and World Indices.

2007 Environmental Honors

  • PepsiCo was added to DJSI World Index and maintained its position on DJSI North America Index.
  • The U.S. Environmental Protection Agency (EPA) recognized PepsiCo as Green Power Partner of the Year and Energy Star Partner of the Year.
  • Working Mother magazine named PepsiCo to its Best Green Companies for America’s Children List.
  • The Cause Marketing Forum awarded Sam’s Club/Aquafina’s "Return the Warmth" program with the top environmental honor, the Halo Award.
  • CRO magazine recognized PepsiCo among the 2007 100 Best Corporate Citizens in the United States.
  • PepsiCo was ranked #10 in the LOHAS (Lifestyles of Health and Sustainability) Index for its corporate social responsibility program and communications.
  • The China Association of Enterprises with Foreign Investment (CAEFI) and WTO Tribune Magazine honored PepsiCo Investment (China) Ltd. with the Corporate Social Responsibility Outstanding Contribution Award.
  • Frito-Lay’s Jonesboro facility received the EPA Performance Track Distinction, which recognizes facilities that set goals for continuous improvements in environmental performance.
  • The U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) program awarded LEED Gold Status to the Gatorade Blue Ridge facility in Wytheville, Virginia and Gatorade Tolleson facility in Arizona.
  • The Thailand Government Department of Energy gave PepsiCo’s Thailand Lamphun plant an Excellent Performance in Energy Conservation Award.
  • Frito-Lay was recognized in the EPA’s 2007 Water Efficiency Leader awards in recognition for exceptional commitment to water efficiency.
  • Seven PepsiCo China bottling plants were recognized as Best Water-Saving Companies in China’s beverage industry by the China Beverage Industry Association.

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