1. Purpose
   1. Overview
   2. Recipe for the Next Billion
   3. Performance
   4. Human Sustainability
   5. Environmental Sustainability
   6. Talent Sustainability
   7. Responsible & Sustainable Sourcing
      1. Supplier Standards
      2. Sustainable Agriculture Verification
      3. Rural Development
      4. Supplier Code of Conduct
      5. Environmental Supplier Outreach
   8. PepsiCo Foundation
   9. PepsiCo Contributions
   10. Reporting

Rural Development

PepsiCo has worked to establish supply arrangements not only with large-scale farming units, but also with farmers who have small land holdings or low incomes. Examples:

• Mexico—As part of an expanded requirement for high-oleic acid sunflower oil (HOSO) used in manufacturing, PepsiCo established supply with approximately 90 farmers, increasing production from 45 tons in 2009 to 180 tons in 2010.
• Colombia—PepsiCo and several local foundations in the Algeria Valle del Cauca area are working with small farmers to establish a direct business model for supplying bananas to PepsiCo, removing the middle person.

Training is an active area for PepsiCo, with formal and informal, electronic and verbal, research and basic practices being exchanged with growers, suppliers and the community at large. Examples:

• Peru—PepsiCo established the Certificate in Ecological Agriculture, a nine-month distance-learning course in partnership with the Liberoamericano Science Institute to teach new farming techniques in sustainability to growers and employees.
• UK—PepsiCo conducts training and workshops for growers focused on topics related to sustainability, including energy, water, agrochemical and biodiversity. Eight courses were conducted through 2010.
• Global—PepsiCo continues to invest in grower training programs to improve the management practices across each of the core crops it purchases. This includes transferring best practices based on latest research and trial results to improve crop performance. The company also operates a technical website, with free access to growers, which provides technical help on subjects ranging from crop disease to storage management.

PepsiCo recognizes the impact of its purchasing activities on local communities where crops are produced and supports activities that improve the welfare of these communities. Example:

• China—Expanded the library donation program to seven libraries in the Inner Mongolia region, benefiting 2,700 students and receiving direct funding of RMB 208,000 (approximately $32,000), RMB 100,000 (more than $15,000) from PepsiCo.

PepsiCo sources its raw materials across a diverse range of geographies and cultures and works to improve the conditions of people employed in the production of its crops. Examples:

• Mexico—The Sabritas Foundation and Save the Children established an alliance to improve the quality of life for laborers' children in potato fields in Los Mochis, Sinaloa. This alliance also includes the support of different institutions, such as SEDESOL (Mexican Government), which contributed to the day-care centers, as well as local municipalities and local NGOs. The program has served 523 children, two clinics have served 395 patients, and 164 workshops have been given to both parents and children on topics ranging from children's rights to human development.
• Peru/India—Promoting women into agricultural work at all levels, including supervisor roles of harvesting teams.
• Brazil/Ecuador—Providing food, water, shelter, hygiene and protective equipment to all employees engaged in the potato harvest.