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					  PepsiCo
   and the

Environment
               PepsiCo has been a leader and a catalyst to change for the environment,
               doing things to help the Earth all along…



COMMUNITY INFORMATION - Environmental Support

Pepsi-Cola has a strong history of caring for the environment. Our goal is to have
the least possible impact on the environment, and so far we have been very
successful. Among our environmentally friendly initiatives are the "Please Recycle"
message on each and every container that we make, and our contributions to a
number of programs designed to stop littering and promote recycling.

Pepsi-Cola is committed to being an environmentally responsible corporate citizen.
In our offices, we use our resources wisely and actively recycle cans and paper. We
not only strive to meet local and state environmental laws, but also try to exceed them by being
industry innovators. For example, in 1992 Pepsi-Cola replaced its can holders with plastic ring
connectors. Using a break-apart concept, these rings snap when cans are removed from the
connectors, greatly reducing the risk of entanglement for wildlife. In addition, photo-degradable
additives break down these connectors into small particles when they are exposed to sunlight,
further reducing the likelihood of any negative environmental impact.

In 1995, Pepsi was one of only 20 companies honored by the U.S. Environmental Protection
Agency (EPA). EPA Administrator Carol Browner called the efforts of Pepsi to reduce solid
waste "a notable achievement."




                                   1996 Press Statement from PepsiCo
PepsiCo’s Sustainability Vision…
               PepsiCo Sustainability Time Line…


                                                                                  Environmental
                                                                                Management System
                                         Global Reporting Initiative
                                                                                    developed
                                            Guidelines adopted
  Frito-Lay North America
  begins formal resource
   conservation program




 1999        2001           2002       2003           2004 2005               2006              2007

      PepsiCo
Environmental Task
   Force formed

                                                        Sustainability Task
                                                          Force formed
                                                                                          Dow Jones
                                                                                        Sustainability
                                                                                         Index North
                           Carbonated beverage                                         America names
                          packaging goal of 10%                                        PepsiCo to list
                         recycled content in Pepsi-
                        Cola North America adopted
                 Recent Headlines across the nation…


PepsiCo makes huge green-power purchase
Beverage maker now the top renewable energy buyer in the U.S.
http://www.msnbc.msn.com/id/18403765/


EPA Recognizes Largest-Ever Corporate Green
Power Purchase http://www.webwire.com/ViewPressRel.asp?aId=34647
Drink Green Pepsi                        (http://www.ecotality.com/blog/2007/drink-green-pepsi/

  PepsiCo will buy the renewable energy credits - another title for carbon offsets - in a three-
 year deal is with Sterling Planet, a retailer of renewable credits, which will put the money into
 renewable energy projects involving wind, biomass such as tree trimmings and animal waste,
 or small hydroelectric projects, Sterling CEO Mel Jones tells USA Today.
  “To the extent we motivate other companies to get involved is a good thing for America -
 and for the planet,” says Rob Schasel, director of energy, utilities and conservation at
 PepsiCo, parent to Pepsi, Frito-Lay and Quaker.
  PepsiCo, which formed its Environmental Task Force in 2001, and its divisions are actively
 involved in a variety of environmental initiatives and have been recognized for their efforts.
 For example, Frito-Lay and Gatorade operate two LEED GOLD certified facilities. The US
 Green Buildings Council LEED Rating System is the nationally accepted benchmark for
 evaluating sustainable sites, water efficiency, energy and atmosphere efficiency, material and
 resource selection and indoor environmental quality. Tropicana‟s Ft. Pierce facility has
 partnered with St. Lucie County to burn landfill gas, a renewable energy source that displaces
 the use of natural gas, in its boiler.
                                        (as reported by the National press, 4/30/07)
                                      Fortune 500 Green Power Challenge
                                            as of April 9, 2007…
 Green Power            % of
                                     Organization
    Usage              Total                                                Provider                                Resources
                                        Type
    (kWh)            Electricity

1. PepsiCo
1,105,045,154          100%        Food & Beverage      Sterling Planet                                      Various

2. Wells Fargo & Company
  550,000,000       42%            Banking & Fin.       3 Phases Energy                                      Wind
                                   Srvcs.
3. Whole Foods Market
  463,128,000      100%            Retail               Austin Energy, Community Energy, PNM,                Biomass, Geothermal,
                                                        Renewable Choice Energy, Sky Energy                  Small-hydro, Solar, Wind
4. Johnson & Johnson
  400,702,978       39%            Health Care          3 Phases Energy, On-site Generation, Sempra          Biomass, Small-hydro,
                                                        Energy                                               Solar, Wind
5. Starbucks
  185,000,000           20%        Restaurants &        3 Phases Energy                                      Wind
                                   Food Srvcs.
6. DuPont Company
  180,000,000           4%         Chemical             3 Phases Energy                                      Biogas, Wind

7. Cisco Systems, Inc.
  124,105,846          21%         Information          Austin Energy, Constellation NewEnergy/ERT,          Various
                                   Technology           Silicon Valley Power/3 Phases, TXU Energy
8. Staples
  121,404,000           20%        Retail               3 Phases Energy, Avista Utilities, On-site           Biomass, Solar, Wind
                                                        Generation, Pacificorp, Portland General Electric,
9. IBM Corporation                                      Tennessee Valley Authority
  109,704,000           4%         Information          3 Phases Energy, Austin Energy, Tucson Electric,     Solar, Wind
                                   Technology           Xcel Energy
10. Sprint Nextel
  87,600,000            47%        Telecommunication    Kansas City Power & Light                            Wind

25 . The Coca-Cola Company
      6,100,000               2%      Food & Beverage                            3 Phases Energy                           Wind

                            http://www.epa.gov/greenpower/partners/fortune500.htm
                 Some of the things PepsiCo has been doing
                 to help the environment…
Pepsi Cola North America
    Partners with The Great American Cleanup, the nation's largest annual community improvement program
    designed to encourage recycling. It‟s a campaign started by Keep America Beautiful in 1999
    Also partners with Sam‟s Club to participate in the Return the Warmth program which provides grants to
    communities for recycling, and fleece jackets for children in need, made with recycled bottle material
PepsiCo Foundation
    Supports Mothers‟ Water Cellar Project which provides access to water and expands availability of water to
    millions of people in Western and Central China working with the China Women‟s Development Foundation
Gatorade
    Uses Waterless Rinsing, a process that saves water by using filtered compressed air and de-ionized air
    nozzles to clean bottles
    Results are savings of 250 million gallons of water per year
Frito-Lay
    Uses solar power to light and heat facilities when possible
    Continues to restore Green space around facilities, using plants and foliage which require minimal water
    Parking lots are made of porous pavement to filter storm water to underground filtration beds
Frito-Lay International/Walker Snack Foods - U.K.
    Recovers the starch from the potato rinsing water to use as recycled water
    The recovered starch can then be reused/resold for other purposes
Tropicana
    Minimizing impact on the environment by using every part of the orange
    Extract juice for Pure Premium; recover oil and essences from the peel; use leftover for cattle feed
Quaker
    Uses the hull of the oat to make bio-mass fuel resulting in reduced air emissions
                  Selected Environmental Awards…


PepsiCo
    The U.S. Environmental Protection Agency (EPA) has named PepsiCo as a 2007 ENERGY STAR Partner of the
    Year for outstanding energy management and reductions in greenhouse gas emissions

PepsiCo China
    Four awards for Mothers‟ Water Cellar Project

PepsiCo
    Vision for America Award from Keep America Beautiful

Frito-Lay North America
    Energy Star Partner of the Year from the Environmental Protection Agency and the Department of Energy

Frito-Lay San Antonio, TX
    WaterSaver Award

Frito-Lay California
    Bakersfield and Modesto facilities won the state WRAP award for outstanding performance in reducing solid
    waste

Gatorade Wytheville, VA
    The U.S. Green Building Council recognized the facility with its Leadership in Energy and Environmental
    Design (LEED®) designation at a Gold-level certification. At 950,000 square feet, the facility is the largest
    food and beverage site in the world to achieve this designation
                  Pepsi-Cola North America Environmental Facts…

Packaging
Reduce – produce less packaging material
    We use nearly 60% less packaging now than in 1990 to deliver the same amount of soft drinks
    In 2002, our most common Aquafina bottle (500ml PET) weighed 24 grams. By the end of
   2006 we had converted our entire system to an 18.6 gram bottle. This year, we are rolling out a 15.2
   gram bottle, with plans for an even lighter bottle. The change from 24 grams to 15.2 grams means 48
   million pounds less packaging per year.

Reuse – use more recycled material in our packaging
    Our beverage cans are made from 50% recycled aluminum
    In 2002, we committed to raise the amount of recycled material used to make our PET soft drink bottles
   to 10% by 2005. Thanks to our bottling system, we met that goal on schedule.

Recycle – recycle our packaging waste and encourage & enable
consumers to recycle theirs
    Helped found the National Recycling Partnership, a cross-industry initiative to increase recycling across
   America
    Sierra Mist joined with the National Recycling Coalition and Wal-Mart to develop www.getrecycling.org,
   which aims to boost recycling rates by helping people see that even small steps can make a difference.
    Pepsi-Cola works with PET producers and reclaimers to support the collecting and recycling of PET soft
   drink bottles. The industry has awarded grants to perform research on developing new products made
   from recycled plastic and soft drink bottles. Today, all post-consumer PET plastic that is recovered is used
   to make new containers, fiberfill for sleeping bags and coats, fabric, carpets, auto parts, film and more.
    While beverage containers are the most recycled consumer packaging
   in the US, we recognize that recovery rates need to increase. We helped
   found a new organization, the Beverage Packaging Environment Council,
   to increase beverage container recycling rates
                  Pepsi-Cola North America Environmental Facts…


Water
 Pepsi Bottling Ventures, one of the largest bottlers in the Pepsi system, put systems in place to collect
and recycle the water used to cool the equipment on its bottling lines. They are now recovering 300
gallons of water per hour, which conserves 2.5 million gallons of water annually. The changes were
made at the suggestion of one of the many employee/management “green teams” formed to identify
ways to conserve water.
 We helped establish the Safe Water Network, a not-for-profit organization focused on developing and
deploying new affordable water purification technology to provide safe water to communities in need.

Energy
 Since 2006, our company-wide car program offers only hybrid vehicles.
 Our bottlers use advanced routing technologies to reduce miles and cut fuel consumption on delivery
routes.
 Pepsi Bottling Group, our largest bottler, has installed governors on all its delivery vehicles to improve
fuel efficiency. They also enforce a “no-idle” policy to reduce fuel consumption.

Air Quality
 All Pepsi-Cola vending machines, fountain equipment and cooler display units in North America have
been converted to non-chlorofluorocarbon (CFC) refrigerants.
 More than 96% of all new purchases of refrigerated point-of-sale equipment use hydroflurocarbon
(HFC) free insulation. Our goal is to reach 100%.
 We have joined with other industry members and Greenpeace in a coalition called „Refrigerants
Naturally‟ whose goal is to work together to eliminate use of hydroflurocarbon (HFC) in refrigerated
point-of-sale equipment.
              Starbucks and PepsiCo Sign Distribution Agreement for
              Ethos Water…

                                                                Despite the apparent
                                                                abundance of clean water
                                                                in the US and most of the
                                                                developed world, more
                                                                than 1 billion people
                                                                around the world lack
                                                                clean, safe drinking water
                                                                and more than 2.6 billion
                                                                lack adequate sanitation
                                                                services.




This agreement will significantly increase distribution of Ethos water to retail stores in the
U.S. and Canada, and demonstrates Starbucks and Pepsi's commitment to Ethos Water's
unique and innovative business model, fully integrating a social conscience into all aspects
of the Ethos brand. Further, by continuing to make a $0.05 donation for each bottle of
Ethos water sold in all distribution channels, both companies are affirming Starbucks
contribution goal set last year of at least $10 million by the end of 2010 to help children
and their communities around the world get clean drinking water.
                         Live Earth Sponsorship…




Live Earth will use the global reach of music to engage people on a mass scale to combat our          In support of its
climate crisis. Live Earth will bring together more than 150 of the world's top musicians for 24-    environmental activations,
hours of music from 7 concerts across all 7 continents. Live Earth will bring together an audience
of more than 2 billion at the concerts and through television, radio, film, and the Internet. That   PepsiCo will be one of the
audience, and the proceeds from the event, will create the foundation for a new, multi-year global   headline sponsors of the
effort to combat the climate crisis led by Vice President Al Gore. Kevin Wall, Worldwide
Executive Producer of Live 8, is producing Live Earth.                                               24-hour "Live Earth"
                                                                                                     concert on July 7.
All Live Earth venues will be designed and constructed by a groundbreaking team of sustainability
engineers and advisors directed by John Picard. This greening team will address the environmental
and energy management concerns of each concert site, as well as the operations of sponsors,           Seven concerts in
partners, and other Live Earth affiliates.
                                                                                                     support of fighting global
Each venue will not only be designed to maintain a minimum environmental impact, but will            warming will be held on all
showcase the latest state-of-the-art energy efficiency, on-site power generation, and sustainable
facilities management practices.
                                                                                                     seven continents.

				
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