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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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