Goal: Work to achieve an absolute reduction in greenhouse gas emissions across our global businesses.
At PepsiCo, we are working to improve our energy use efficiency in order to reduce the greenhouse gas (GHG) emissions in our operations, conserve fuel and reduce our cost.
Our energy efficiency programs and initiatives have helped PepsiCo’s overall U.S. operations achieve an improvement in energy efficiency of 4 percent for 2013 as compared to 2012. This was led by a very strong 9.6 percent improvement in energy efficiency from our beverage business and a steady 1.4 percent improvement from our food business unit.
In addition, as a result of our focus on using less energy and employing alternatives to carbon-based fuels for power and for our fleet, total direct (Scope 1) and indirect (Scope 2) GHG emissions for legacy operations in 2013 were 4,139,000 metric tons of CO2 equivalents. This is essentially flat as compared to 2008 and represents a decrease of 2 percent versus 2012.
This performance against the 2008 baseline year was achieved despite production volume growth of approximately 9 percent for foods and approximately 17 percent for beverages.1
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PepsiCo’s Fleet Sustainability
Understanding the impact of climate change and as a key part of our Greenhouse Gas (GHG) reduction strategy, PepsiCo has focused on increasing the efficiency of our fleet, and improving our distribution and logistics functions.
Our Efficient Fleet
In the United States, PepsiCo owns and operates approximately 35,000 commercial fleet vehicles to bring raw materials to our plants and to deliver our products to customers and consumers. We are committed to operating one of the most reliable, safe, sustainable and capable fleets in the United States. We are furthering these efforts through driver training, Global Positioning Satellite technology, a world-class maintenance program and fuel efficiency.
A Frito-Lay electric vehicle.
Fuel Efficient Vehicles
With more than 280 electric vehicles, Frito-Lay North America owns one of the largest commercial fleets of all-electric delivery trucks in the United States. We are committed to overall fleet innovation, and as we replace our fleet will continue to purchase electric delivery trucks as a way to reduce carbon intensity.
The company also has more than 200 compressed natural gas (CNG) trucks on the road, representing approximately 20 percent of our over-the-road fleet. We expect these CNG trucks to deliver productivity savings of more than $3 million in 2014, while reducing direct emissions by more than 20 percent, as compared to conventional diesel engines.
In addition, we have also purchased new vehicles that double the fuel economy compared to traditional Frito-Lay route trucks.
In fact, since 2010, PepsiCo’s fleet programs have delivered a combined greenhouse gas reduction of more than 55,000 Metric tons, while reducing fuel use by nearly 24 percent.
While the vast majority of the fuel we purchase is from retail outlets, PepsiCo has implemented a formal (Request for Proposal) process seeking high carbon fuel alternatives.
As we transform our fleet and implement the latest fuel saving technology, we are also committed to working with and through Business for Social Responsibility’s (BSR’s) Future of Fuels program, along with other leading fleets, to find ways to reduce or eliminate the carbon intensity of the fleet fuel supply chain. This collaborative working group helps global companies understand the greatest sustainability impacts of their transportation fuel system and how to address them.
PepsiCo is a certified member of the U.S. Environmental Protection Agency’s (EPA’s) SmartWay initiative, a public-private initiative to improve fuel efficiency and the environmental performance of the goods movement supply chains. All contract and common carriers that perform transportation services for PepsiCo in the United States are also SmartWay Certified.
In 2012, the EPA recognized PepsiCo’s Frito-Lay Division as a SmartWay Truck Carrier Awardee for “leading the business community to a clean, efficient and more sustainable future for goods movement.”
Electric Trucks Hit New York Roads
Frito-Lay was one of the first companies to put modern electric trucks on the road in New York State. In partnership with the New York State Energy Research and Development Authority, Frito-Lay has expanded its NY-based fleet to 35 and added charging stations.
PepsiCo relies on green alternative road choices, like the Tropicana Train, which transports juice to our distribution centers across the U.S.
While PepsiCo has an extensive commercial truck fleet, we also rely on rail services throughout the United States. Rail is a greener alternative to road vehicles. For instance, Tropicana has been shipping its premium orange juice in refrigerated rail cars for more than 40 years.
This reliable rail network now handles approximately 15,000 boxcar loads per year, which translates to an approximately 3:1 truck-to-rail conversion, thus drastically reducing GHG emissions by taking trucks off the road. In addition, two GE Evolution Series Locomotives, designed to use 11 percent less fuel than existing U.S. locomotive average, power the train.
Three rail networks originate in Bradenton, Florida, and travel to California, Ohio and New Jersey delivering a high level of service and predictability to our distribution centers.
To help ensure these trains return to Florida full of products as opposed to transporting empty space, PepsiCo has been collaborating with other companies since 2005 to fill boxcars and offer discounted rates to companies that need to transport raw materials and products.
Did You Know?
PepsiCo transportation is a certified member of the U.S. Environmental Protection Agency’s (USEPA’s) SmartWay initiative, a public-private initiative to improve fuel efficiency and the environmental performance of the goods movement supply chains.
- PepsiCo will seek to further reduce the carbon intensity of our fleet through sourcing and other innovative projects.
- PepsiCo will work with suppliers to seek ways to eliminate high carbon fuels from our supply chain.
- PepsiCo is committed to working with the BSR’s Future of Fuels program along with other large fleets to find ways to reduce the carbon intensity of our fleet operations.
- To further enhance our transparency, PepsiCo will provide regular updates on our fleet fuel efficiency journey.
- PepsiCo is committed to continue our overall fleet innovation, and we will continue to purchase electric vehicles as a way to reduce our fleet carbon intensity.
- PepsiCo will advocate for and support improved and appropriate U.S. fleet fuel efficiency standards.
- PepsiCo will join with other members of the American Beverage Association to report the annual improvements in our aggregated fleets' fuel efficiency and share the steps we have and are taking to continue to improve fuel efficiency.
- PepsiCo will work closely with key stakeholders, fuel producers, and other qualified experts to obtain credible and robust data concerning the carbon intensity of fleet fuels in our supply chain. We will leverage this data to consult with fuel suppliers to determine how to reduce intensity and eliminate high carbon fuels.
2013 was a stellar year for PepsiCo in the advancement of innovative alternative energy solutions. Whether through landfill gas, solar power, or rice and oat hull biomass boilers, we are proud of the strides made in utilizing alternative energy sources that are helping reduce our reliance on traditional energy sources.
These efforts are reducing our environmental impact, saving money and creating best practices to share across PepsiCo.
Kolkata, India Snacks Plant
A number of PepsiCo plants around the world are turning operational waste into energy to power our facilities. In Kolkata, India, for example, our snacks plant has dramatically increased the percentage of renewable energy it uses from 10 to 70 percent.
This increase was achieved by using rice hulls (from a supplier) as a renewable energy source to cook potato chips and utilizing the snack plant’s waste heat as the energy source for on-site chillers, making it the first time these specific innovative solutions have been used within PepsiCo.
Landfill Gas to Energy
Tropicana’s Ft. Pierce plant uses landfill methane gas from a nearby landfill to trim costs and reduce the plant’s carbon footprint.
Using oat hulls to fuel a boiler at the Quaker plant in Porto Alegre, Brazil.
Porto Alegre, Brazil Quaker Plant
Oat hulls produced in the manufacturing process have been used by PepsiCo Brazil since 2011 to fuel the boilers at its Quaker plant in Porto Alegre.
This program has resulted in a 41 percent reduction in total energy use at the plant since 2010. It also has redirected 1,440 tons per year of oat hull waste that otherwise would have been disposed of, and reduced fossil fuel and natural gas usage by 456,000 cubic meters.
Tolleson, Arizona Beverage Facility
In early 2014, PepsiCo’s Tolleson, Ariz. facility launched a new solar photovoltaic system that converts the sun’s rays into as much as 1.7 megawatts of clean electricity.
Solar panels help power our Tolleson, Arizona facility and reduce energy usage.
The electricity is channeled into the facility’s substation to help power the manufacture and distribution of PepsiCo products such as Gatorade, SoBe, Propel and Lipton Iced Tea.
At the 900,000 square-foot distribution center (a separate facility), more than 5,600 flat solar photovoltaic panels adorn the roof, which can generate more than 3 million kilowatt hours annually — enough electricity to power approximately 200 average Arizona homes for an entire year — or 10 percent of the electricity used by the entire Tolleson facility each year.
The photovoltaic project has produced approximately 900,000 kilowatt hours per year since its installation in 2008.
Our commitment to solar projects extends to other large installations in Modesto, California; Casa Grande, Arizona and elsewhere.
We are proud of these achievements and hope to replicate these innovative best practices across the globe in the coming years.
A Powerful Tool to Drive Energy Efficiencies
PepsiCo’s Resource Conservation (ReCon) program empowers employees to identify and deliver efficiencies in energy, water and waste.
ReCon includes customized online site audit and metrics tools that allow us to track where and how a resource, such as energy or water, is being used in our operations.
We utilize the program to apply global best practices; identify water, GHG and solid waste reduction opportunities; and implement techniques on a global scale.
ReCon continues to drive energy efficiency and cost savings for the business. In 2013, there were more than 80 ReCon initiatives at sites around the world that identified approximately $15 million in savings.
PepsiCo is committed to saving energy through green building and design worldwide. We encourage our facilities to meet the U.S. Green Building Council’s (USGBC’s) Leadership in Energy and Environmental Design (LEED) standards, which are among the most rigorous benchmarks for green building design, construction and operation in the world.
So far, 42 facilities across PepsiCo have achieved LEED certification.
PepsiCo improved efficiency by 54 percent for vending machines and 60 percent for coolers in 2013, as compared to models available in 2004. As a result, the per-unit emissions from these coolers are on the decline. In 2013, absolute emissions from this equipment totaled 3,521,000 metric tonnes, a decrease of 549,000 metric tonnes from 2012.
1 This goal and these results apply to legacy operations as they existed in 2008, excluding major mergers and acquisitions and adjusting for divestitures.