PepsiCo takes a comprehensive approach to water stewardship.
Because we use water to make our products, maintaining the highest-quality standards for consumers means using the best water possible. At the same time, it is essential that we treat water as the limited resource it is by optimizing our water use through greater efficiency, innovative processes and new technologies. We have made great strides in reducing water use in our direct operations. We know that water is inherently local, so we strive to work on specific solutions for watersheds where we operate, to make more and better water available to local communities. We also have a wide range of partners and have delivered access to safe water to over three million people, in conjunction with the PepsiCo Foundation and its partners.
We achieved our goal, four years ahead of schedule, to improve global operational water-use efficiency by 20 percent per unit of production by 2015, compared to a 2006 baseline. The improvements we have made in efficiency enabled PepsiCo to save nearly 14 billion liters of water in our direct operations in 2012, which, in turn, enabled the company to save more than $15 million in water costs.
Conserving Water at PepsiCo's Funza,
Our foods facility in Funza, Colombia provides a strong example of how PepsiCo is implementing innovative solutions to conserve water. This manufacturing plant is able to reuse 75 percent of the water entering the plant while conserving nearly 90 million liters through a high-efficiency water reclamation system using a specialized membrane bioreactor. The membrane bioreactor, combined with low pressure reverse osmosis, produces recycled water that meets U.S. Environmental Protection Agency (EPA) drinking water standards. This technology is also in use at other PepsiCo facilities around the world.
In recognition of our efforts, PepsiCo was honored with both the prestigious 2012 Stockholm Industry Water Award and the U.S. Water Prize. These distinctions result from our efforts throughout our business operations, our work in the communities in which we operate, and our continued leadership in water stewardship.
In 2012, PepsiCo met its target to partner to provide access to safe water to 3 million people in developing countries by the end of 2015 - three years ahead of our goal - through the efforts of the PepsiCo Foundation. Key to this success was the PepsiCo Foundation's partnership with the Columbia University Earth Institute. The Earth Institute and the PepsiCo Foundation have had a successful working relationship on water-related projects since a grant by the PepsiCo Foundation in 2008 helped found the Columbia Water Center.
Building on our success to date, in March 2013, we announced a new goal to provide access to safe water to an additional 3 million people over the next 3 years through continued partnerships with water organizations, doubling the company's original goal. As one of the first major consumer product companies to endorse the United Nations Human Right to Water, PepsiCo's initiatives include water conservation, distribution, purification and hygiene for underserved communities in China, India, Mali, Brazil, Colombia and other Latin American countries. In addition to the Earth Institute, our partners include the China Water Cellars for Mothers Initiative, Inter-American Development Bank AquaFund, Safe Water Network and Water.org.
Positive Water Balance
As we continue to advance water stewardship at PepsiCo facilities around the world, we recognize the greater challenge of water scarcity and focus our efforts on achieving a positive water balance in our operations. Of particular concern are those water-distressed areas where demand continues to increase.
For example, in India, our PepsiCo India manufacturing facilities have taken great strides to conserve water and achieved the country-level Positive Water Balance in 2010 and 2011, with 'credit' exceeding 'debit' by a greater margin in each successive year. In 2011, we restored 14.7 billion liters, exceeding the 6.3 billion liters of water used in our manufacturing facilities. We accomplished this through the multi-pronged approach of working with our communities, engaging farmers and improving in-plant activities.
DID YOU KNOW?
The Stockholm International Water institute awarded PepsiCo the 2012 Stockholm Industry Water Award.
Savings through agricultural interventions/Direct Seeding of Rice (DSR):
During 2011, an additional 3,470 acres were converted to DSR. This translates into 12,800 acres overall, compared to 9,330 acres in 2010 and 6,500 acres in 2009. This has resulted in water savings of 11.2 billion liters.
Savings through drip irrigation initiatives for potato cultivation:
In 2011, incremental efforts were undertaken to promote this irrigation method. Starting with 1,100 acres in 2010, we expanded to 1,902 acres in 2011 and, as a result, conserved more than 900 million liters of water.
Water recharged through community programs:
Our interventions such as checking dams and recharging ponds focused on conserving and recharging water in communities around our manufacturing plants and providing access to rural communities. In 2011, our water projects created the potential to recharge over 2.6 billion liters of water, contributing toward a positive water balance and benefitting nearly 48,000 community members.
In-plant water recharging and harvesting:
We continue to adopt rain water harvesting. In 2011, these initiatives yielded the recharge potential of approximately 228 million liters.
DID YOU KNOW?
The U.S. Water Alliance presented PepsiCo with its 2012 U.S. Water Prize
We are finding ways to improve water balance worldwide, based on local conditions, technologies and available resources. In Jordan, for example, PepsiCo established a partnership agreement with the Ministry of Water and Irrigation to participate in the country's Positive Water Balance Project. In addition to project funding, PepsiCo-Jordan also funded the entire construction cost of the Wadi Al-Ahmar dam project in Tafileh. Upon completion, the dam will collect rainwater using advanced harvesting techniques, which subsequently will contribute to local community development and rehabilitate ecosystems affected by climate change.