To facilitate a dialogue on improvement that goes beyond our commercial relationships, while driving continuous improvement across a supplier's entire operation, PepsiCo has established ongoing working relationships with the Environmental Protection Agency's ENERGY STAR and Climate Leaders programs, the Forest Stewardship Council, Refrigerants Naturally! (Greenpeace), and the Rainforest Alliance (RA).

PepsiCo is also actively engaged with the Carbon Disclosure Project Supply Chain program. In 2010, 89 suppliers in North America and Europe participated in the program, and in 2011 we are expanding the program to include 148 suppliers, including representation from our strategic suppliers based in South America and Asia.

Our membership demonstrates to our suppliers how important we feel climate change is to business decision making, along with our desire to work collaboratively.

In addition, PepsiCo's Strategic Supply Management has published our Responsible and Sustainable Sourcing Guidelines for Supplier Relations. These guidelines describe the various principles that drive our supplier relationships by highlighting the many PepsiCo-supplier collaborations on major sustainability initiatives. PepsiCo has also defined a "Path to a Sustainable Supply Chain" to encourage and support mutually effective environmental sustainability programs.

One example of how PepsiCo is engaging its supply chain is through the deployment of our ReCon program in North America to our key suppliers. By the end of 2010 we have engaged with 50 suppliers representing over 100 facilities realizing a 7 percent improvement in energy efficiency and a 22 percent improvement in water-use efficiency versus a 2007 baseline, as well as a single-year reduction in waste-to-landfill of 26 percent versus 2009.