sustainability at pepsico -...

18
Page 0 Sustainability at PepsiCo Measuring Sustainability Performance and Practices against Coca-Cola BUSINESS AND SOCIETY, FALL 2014 October 18, 2014 Authored by: James Konderla

Upload: lytu

Post on 19-Jul-2018

251 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 0

Sustainability at PepsiCo

Measuring Sustainability Performance and Practices against Coca-Cola

BUSINESS AND SOCIETY, FALL 2014

October 18, 2014

Authored by: James Konderla

Page 2: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 1

Table of Contents

Introduction .................................................................................................................................................. 1

PepsiCo’s Sustainability Plan ....................................................................................................................... 1

Human Sustainability ................................................................................................................................ 2

Environmental Sustainability .................................................................................................................... 4

Talent Sustainability .................................................................................................................................. 7

Coca-Cola’s Sustainability Plan .................................................................................................................... 8

The Coca-Cola System ............................................................................................................................... 9

Comparison ................................................................................................................................................. 12

Human Sustainability .............................................................................................................................. 12

Environmental Sustainability .................................................................................................................. 12

Talent Sustainability ................................................................................................................................ 13

Thoughts from Porter and Kramer .......................................................................................................... 14

Conclusions and Recommendations .......................................................................................................... 14

Page 3: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 1

Introduction

PepsiCo and Coca-Cola are two of the leading companies in the soft drink/beverages

industries with a combined market share of over forty percent as of 2010 (7) and operations in

hundreds of countries around the world. As part of their operations, both companies have also

established sustainability programs and seek to provide sustainable operations in many areas.

Due to my current employment with PepsiCo I have decided that it is important to look at these

policies in order to better align myself with the company and its goals as compared to one of our

chief competitors: Coca-Cola. In the following sections I will outline PepsiCo’s sustainability

plan, called “Performance with Purpose” as well as Coca-Cola’s sustainability program, “The

Coca-Cola System” before comparing the plans and providing some recommendations to

PepsiCo as to the current and possibly future state of our sustainability programs.

PepsiCo’s Sustainability Plan

PepsiCo has a 3-tier plan for sustainability across all divisions that is led by the

Sustainability Task Force, chaired by the President of PepsiCo, and tasked with strategic

development of sustainability efforts in line with PepsiCo’s strategy and vision but also partners

with the leadership teams that oversee the three focus areas: human, environmental, and talent

sustainability (2). PepsiCo has a very simple name for this effort: Performance with Purpose. In

an effort to continuously improve sustainability efforts, the sustainability task force regularly

partners with stakeholders and conducts formal assessments to determine things that are

important in areas of societal, environmental and economic development and match these to

PepsiCo’s growth and strategic plans. As opposed to its chief competitors, PepsiCo not only

Page 4: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 2

holds share in the beverage industry but the snack foods industry as well (Figure 1) bringing a

unique set of challenges and opportunities for PepsiCo and its business partners.

Figure 1

In order to improve performance PepsiCo has established a very simple goal for

sustainability by striving “to deliver a superior, long-term, financial performance and sustained

shareholder value” (2, Page 9). In the following sections I will outline the three separate areas of

PepsiCo’s sustainability focus.

Human Sustainability

In 2009 PepsiCo began an effort in the human sustainability area to reduce the amount of

sodium, saturated fats and added sugars in several of their key global brands. This effort is

targeted to address several world-wide challenges, namely nutritional imbalances, obesity and

lifestyle-related diseases such as diabetes while also continuously refining PepsiCo’s food and

beverage choices to match consumer needs. To do this, PepsiCo developed the following three

goals for human sustainability (2, Page 13):

Reduce the average amount of saturated fats per serving in key global food brands, in key

countries, by 15 percent by 2020 against a 2006 baseline.

Page 5: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 3

Reduce the average amount of added sugars per serving in key global beverage brands, in

key countries, by 25 percent by 2020 against a 2006 baseline.

Reduce the average amount of sodium per serving in key global food brands, in key

countries, by 25 percent by 2020 against a 2006 baseline.

As you can see, PepsiCo has laid out some very challenging goals that, if they meet, will

allow PepsiCo to become much more sustainable. To do this, PepsiCo has divided its product

portfolio into three areas: Good-for-You (targeting foods that are in line with global dietary

standards), Better-for-You (targeting foods that have been improved to meet global dietary

standards), and Fun-for-You (targeting global and region-specific brands of treats). Dividing

brands into these three areas has helped PepsiCo to make tremendous progress towards its 2020

goals, as outlined below:

Saturated fat – as of 2013 on a global average, per-serving, basis saturated fats have

seen a reduction of three percent with a removal of two thousand one hundred metric tons

of saturated fats compared with the 2006 baseline. PepsiCo has further made progress by

changing several parts of the manufacture process such as the use of sunflower and other

oils as opposed to cottonseed oil used in the manufacturing process of chips and snacks.

Added sugars – as of 2013, compared to a 2006 baseline, PepsiCo has removed four

hundred and two thousand metric tons of added sugars from their product portfolio in

North America and introduced several low-sugar brands both domestically and globally.

This area has been of particular challenge due to consumer preferences but that has

recently begun change due to a global consumer shifts to low-sugar alternatives.

Sodium per serving – As of 2013, compared to 2006 baselines, PepsiCo has reduced

sodium per serving by nine percent and removed more than one thousand seven hundred

Page 6: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 4

metric tons of sodium from key global brands. In addition, three thousand nine hundred

metric tons of sodium was removed from the total foods portfolio.

In addition to advances in the above areas, PepsiCo continues to have a strong research and

development presence towards not just new products but improvements to current ones as well.

Environmental Sustainability

In the area of environmental sustainability PepsiCo has not only seen areas of

improvement for itself but has also noticed ways in which it can better partner with local and

international authorities to recycle and re-use waste products and leftovers from manufacturing.

To better identify and develop these opportunities PepsiCo partners with business, academia, and

NGOs and is actively involved in the United Nations Global Compact, the World Business

Council for Sustainability Development, and the 2030 Water Resources Group as well as several

other international organizations. From these meetings PepsiCo has developed the following five

areas to focus its environmental sustainability efforts:

Help protect and conserve global water supplies, especially in water-stressed areas, and

provide access to safe water.

Innovate packaging to make it increasingly sustainable and minimize impact on the

environment.

Work to eliminate solid waste to landfills from production facilities.

Work to achieve an absolute reduction in greenhouse gas emissions across all global

business areas.

Continue to support sustainable agriculture by expanding best practices with growers and

suppliers.

Page 7: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 5

PepsiCo has made real, measurable strides toward these goals compared to 2006 baselines. In

2009 PepsiCo commissioned a 2030 Future Scenarios project to determine areas for

opportunities in development as well as health risks globally over the next two decades. This

plan shed light into areas of local and global significance and helped develop sustainability

initiatives globally for the company. Due to the continuous nature of environmental

sustainability PepsiCo has not placed hard numbers on these efforts but has made numerous

advancements:

Resource Conservation – PepsiCo developed a program that applies global best

practices to water and resource conservation. In 2013, with the help of eighty Resource

Conservation groups around the world, PepsiCo identified improvements resulting in

fifteen million dollars of savings. In 2012 PepsiCo was awarded the Stockholm Industry

Water Award and the U.S. Water Prize and in 2013 were awarded the Corporate Climate

Adaption Award. PepsiCo has optimized water efficiency systems and has saved over six

hundred and forty thousand dollars while reducing water consumption by two hundred

thousand cubic meters per year in the U.S. alone. Advancements globally have also

driven a “total systems” approach and have enabled PepsiCo to use a combination of

technologies to provide potable water that can be re-used in manufacturing. One example

of this is in India, where PepsiCo has assisted in the creation of programs that enabled the

harvesting and purification of over five billion liters of water through a combination of

projects including water purification, construction of dams and rainwater harvesting.

Packaging, Recycling and Waste Reduction – In 2010 PepsiCo began to develop a

detailed Life Cycle Analysis of U.S. beverage packaging. Due to this analysis PepsiCo

was able to identify areas for reducing energy use, water consumption and emissions.

Page 8: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 6

PepsiCo became the first company to include post-consumer goods in its beverage

containers, as well as developing lightweight packaging. In 2013 Frito-Lay North

America was able to eliminate eleven million pounds of flexible film packaging, the

equivalent to six and a half billion one-ounce single-serve bags, by improving package

sealing techniques. In the same year a system conversion was completed for the Gatorade

line of products resulting in a change to lighter weight secondary packaging and a

reduction of thirty nine million packaging pounds on an annual basis.

Waste Reduction – In 2010 PepsiCo set a goal of partnering to increase the U.S.

average-container recycling rate to fifty percent by 2018. Since the launch of this

program PepsiCo has increased recycling rates of major container materials from thirty

four to forty two percent. In 2013 PepsiCo further invested in this program resulting in

the recycling of eighteen million pounds and three hundred twenty four million

containers. In Canada, the 7Up brand of products has seen a switch to one hundred

percent post-consumer recycled products used in container production.

Greenhouse Gases (GHG) – As a result of focusing on reduced energy use and

employing alternative fuels PepsiCo has reduced direct and indirect GHG emissions by

two percent compared to 2008. This reduction was achieved despite a production volume

growth of nine percent for foods and seventeen percent for beverages. Energy efficiency

programs and initiatives have helped to achieve an improvement of four percent energy

efficiency from 2012 to 2013 with a 9.6 percent improvement in energy efficiency from

the beverage business and a steady 1.4 percent improvement from the food business unit.

PepsiCo has also invested in alternative energies in many different markets such as India,

where PepsiCo has seen a dramatic increase from ten to seventy percent renewability in

Page 9: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 7

energy by using rice hulls to cook chips and Brazil, where a switch to oat hulls has

yielded a forty one percent reduction in energy use.

Sustainable Agriculture – As agriculture represents more than seventy percent of the

world’s water, twenty to thirty percent of GHG emissions and forty percent of global

employment PepsiCo sees a critical need to improve the sustainability of agriculture. The

Sustainability Farming Initiative (SRI) was developed by PepsiCo to encourage not only

the company but also growers to reduce environmental and social impacts while

maintaining viability in farming and agriculture. The SRI was piloted in 2011 and 2012

and officially rolled out in 2013 with a current deployment of three hundred thousand

acres in North America, which encompasses PepsiCo’s corn and potatoes suppliers, and

has a goal to increase deployment to five hundred thousand by 2016. As part of this

initiative PepsiCo has rolled out a land policy with zero tolerance for illegal activities in

the supply chain and zero tolerance for land displacements of any legitimate land tenure

holders, building on already existing policies of supplier conduct, sustainability in

agriculture, and environmental health and safety.

Talent Sustainability

Rated consistently as one of the world’s top companies to work for (5) PepsiCo not only

recognizes their multi-talented workforce but actively works to sustain this talent and provide

pathways to have not only a job but a career by providing areas for personal and professional

development. PepsiCo has made great strides in growing a more diverse culture, especially

among women leaders, and continues to provide a safe and happy workplace. PepsiCo’s health

and safety standards have seen a decrease of forty seven percent for the lost-time injury rate

between 2011 and 2013 and the certification of 65 plants as OSHAS 18001-certified. Of course

Page 10: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 8

part of talent sustainability is both encouraging and providing ways for employees to become

active so PepsiCo has pushed to include on-site health and wellness activities with a ninety

percent adoption rate across markets. In order to provide employees with a well-rounded career

experience PepsiCo offers mandatory annual code of conduct training to employees and

suppliers.

One of the most important things though is to provide a way for work and life to balance

for each and every employee. PepsiCo not only supports volunteering but encourages it through

diversity and inclusion groups, company fundraising drives and contests. PepsiCo also promotes

educational assistance for employees and even requires employees at all levels to seek continued

education either through classes offered internally or through external course offerings. The most

important implementation at PepsiCo, though, is the “One Simple Thing”: each employee is

tasked to work with their manager to determine one simple thing they can do to better adjust

work-life balance with some examples being the ability to adjust schedules around children’s

school activities or the ability to work from home (in some cases up to 100% of the time).

Coca-Cola’s Sustainability Plan

As you can see from the above section, PepsiCo has a very robust Sustainability plan.

How does that plan stack up against its competitors, though? In order to best answer this

question I will attempt to briefly summarize the sustainability plan of an age old competitor of

PepsiCo: Coca-Cola Inc. This summary will be based on the 2011/2012 published GRI report

that Coca-Cola Inc. has made available and will be limited to a basic summary as compared to

the more comprehensive summary of PepsiCo, the focus of this paper.

Page 11: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 9

The Coca-Cola System

As opposed to PepsiCo, Coca-Cola defines their sustainability plan as “The Coca-Cola

System” (4). This system includes bottlers, partners, suppliers, and the company itself and

operates in over two hundred countries. Coca-Cola does not stop there, though: their plan also

has a place for participation from their customers as well because Coca-Cola realizes that their

customers are the key to success in their sustainability efforts. Coca-Cola uses a science-based

approach to sustainability, keeping themselves up-to-date on current research and making

decisions based on science instead of public beliefs or concerns; bringing a good deal of

controversy for these stances. As part of these efforts Coca-Cola highlights the following:

Active Healthy Living – Coca-Cola actively promotes exercise and fitness as well as

providing the information and products that enables customers to make healthy choices.

They also work to actively combat malnutrition in countries around the world by

providing nourishing goods in the form of their Nurisha and Juice Master brands.

Product Safety and Quality – Coca-Cola has taken strong stances in product safety,

namely in the use of BPA and biotechnology. Despite consumer concerns, Coca-Cola

continues to use BPA in products, stating that the levels of BPA exposure and its

widespread use in coating containers worldwide do not pose a health risk to the general

population. They have also taken the stance of using biotechnology due to the value

savings and safety as determined by the FDA and World Health Organization.

Responsible Marketing – Coca-Cola has taken strong stances in this area by not

marketing directly to children and not showing children in commercials or marketing

material without the supervision of a parent. They have also implemented a Global

School Beverage Guideline program and do not offer their products in grade schools

Page 12: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 10

unless asked to do so, also agreeing to withdraw products if asked. Coca-Cola is also a

founding member of the Weight Commitment Foundation and actively works with others

in the industry to fight obesity.

Women’s Economic Empowerment – Coca-Cola actively works to promote the

economic empowerment of women through entrepreneurial efforts across the globe.

Through their 5by20 plan Coca-Cola seeks to empower five million women by 2020, a

goal which has already seen one hundred and thirty one thousand woman entrepreneurs

come through the program since its inception in 2011. Coca-Cola also actively recruits

women into all levels of the company and provides training to make them successful in

their new roles.

Human and Workplace Rights – Coca-Cola strictly adheres to the United Nations

Universal Declaration of Human Rights and the International Labor Organization’s

Declaration on Fundamental Principles and Rights at Work with a Zero tolerance policy

for suppliers, third parties, or employees who violate these rights. Coca-Cola worked

with the U.N. in developing the Guiding Principles on Business and Human Rights,

which saw adoption in 2011 and believes that one of the only ways a business can

succeed in the global marketplace is by providing fair and equitable treatment to all

employees internal and external to the company.

Water Stewardship – Recognizing the global significance of water, Coca-Cola has set a

goal to “assess vulnerabilities in quality and quantity of water sources for each of their

bottling plants and implement locally relevant water resource programs by 2020” (4,

Page 68) as well improving manufacturing efficiency by twenty percent compared to a

2004 baseline. By the end of 2011 a little over seventy percent had completed the

Page 13: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 11

vulnerability assessment, sixty seven percent has completed source water protection

plans, and twenty nine percent were scheduled to begin their vulnerability assessments.

Coca-Cola has achieved their efficiency goals as of 2011 and is actively working to

return a level of water to the environment that would enable the continued development

of aquatic life.

Energy Efficiency and Climate Protection – Coca-Cola seeks to grow their business

through 2015 without growing carbon emissions as compared to their 2004 baseline. To

assist in this, they have set a goal to reduce absolute emissions from manufacturing in

developed countries by five percent by 2015 with a current (as of 2011) rate of four

percent. Further, Coca-Cola has set a goal to make all new cold-drink equipment be HFC-

free with an interim goal to achieve fifty percent by 2012 and a goal to reduce energy

consumption of equipment used to refrigerate cold drinks by forty percent. As of 2011

Coca-Cola had achieved a twenty four percent HFC-free rating and have already met

their goal of energy reduction in refrigeration.

Sustainable Packaging – Coca-Cola has set a goal to improve material efficiency per

liter of product sold by seven percent compared with a 2008 baseline as well as being

able to recover fifty percent of cans and bottles annually and an increase of twenty five

percent in the use of PET plastic from recycled or renewable materials by 2015. As of

2011, though, Coca-Cola has met none of these goals but has seen a increase in PET

plastic from recycled goods by five percent and an estimation of thirty seven percent of

cans recovered after going to the market.

Page 14: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 12

Comparison

Now that we have outlined the plans of both PepsiCo and Coca-Cola we can begin to

compare the sustainability plans of the two. As you can see, both companies have set lofty goals

that may or may not be achievable but which benefit the world overall. Just as PepsiCo has done,

I have divided this comparison into three distinct groups: human sustainability, environmental

sustainability, and talent sustainability.

Human Sustainability

In the realm of human sustainability we find both companies have set very good goals.

While PepsiCo and Coca-Cola have both made measurable progress towards these goals, I feels

that PepsiCo currently stands as having made a larger impact than Coca-Cola due primarily to

the fact that they operate in more markets as well as offering both drink and food. This provides

a unique opportunity for PepsiCo in the combat of malnourishment around the world. Coca-

Cola’s human sustainability appears to be primarily focused around education and, even though

they have also participated in other areas and are actively assisting in poverty-stricken countries

PepsiCo still appears stronger in this area. I would like to see PepsiCo continue to thrive in this

area but recommend that they continue introducing better selections for healthy snacks,

especially in the United States.

Environmental Sustainability

In the area of Environmental Sustainability both companies have set very respectable

goals but Coca-Cola easily pulls ahead. PepsiCo, while seeking to make a bigger impact with

their goals has set the bar a little too high, whereas Coca-Cola has already met several of theirs

compared to baselines by setting expectations lower. I definitely feels that PepsiCo is making a

Page 15: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 13

large impact but it also appears that they may be spreading themselves a little too thin by trying

to meet all of these lofty goals with one exception: PepsiCo has made a much larger impact in

water conservation and sustainable agriculture through their offerings of programs and

partnerships, whereas Coca-Cola has done little in this area beyond assessing their current state.

Although Coca-Cola pulls ahead, it is definitely worth mentioning that if PepsiCo can meet their

current goals they will have made a larger impact in the environmental sustainability region than

Coca-Cola.

Talent Sustainability

As any good manager knows, a company is only as strong as its employees and in order

to meet goals and deadlines, whether they are financial goals or sustainability goals, a company

must strive to provide a safe, happy, workplace and sustain their current talent in addition to

recruiting new talent. In the area of talent sustainability there is one clear winner: PepsiCo. Both

companies provide a competitive work environment in terms of salary, workplace safety, and

equitable rights but PepsiCo has shown to provide much more than that by striving to provide

employees a way to better balance their work and home lives. PepsiCo’s “One Simple Thing”

methodology does much more than this, though by providing employees a way to tie volunteer

and community service directly into their work performance. The fact that Coca-Cola spends so

little time on this area in their report (beyond declaring the amounts of money or time donated to

charitable organizations) shows just how many opportunities in this area that they are missing.

The fact that PepsiCo allows employees to count volunteer work towards their own objectives as

well as the company goals shows that PepsiCo not only cares about the amount of volunteered

time and money but the quality of volunteer work done.

Page 16: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 14

Thoughts from Porter and Kramer

As part of my “Business and Society” course I was exposed to an article by two authors

titled “Strategy & Society” (8) that provided excellent insights into competitive advantage and

corporate social responsibility (CSR). PepsiCo has done a very good job of not only identifying

and prioritizing social issues but has been able to translate these issues into tangible goals that

the company can address. According to Porter and Kramer the role of the value chain is to

“mitigate harm from value chain activities” and, according to the GRI reports from both PepsiCo

and Coca-Cola both companies have taken great strides to do that. PepsiCo has managed to do

this, though, without sacrificing growth and has seen an increase of revenues as of late but it is

important that both companies, especially PepsiCo, realize that not only are sustainability goals

meant to help society and the business but that a company is not responsible for solving the

world’s problems. By looking at the GRI report for PepsiCo it becomes apparent that PepsiCo

may not fully understand this main point as their goals appear to be much larger than competitors

and, while providing a large impact upon completion, are currently falling short of meeting

quotas and expectations. At first glance it appears that PepsiCo may be spreading itself too thin

and dedicating too much towards sustainability efforts which can lead to issues for all involved.

Conclusions and Recommendations

Although both companies show very strong sustainability plans and goals there are a few

things that worry me about this area for PepsiCo that I would like to address. The first is

PepsiCo’s environmental sustainability goals: it appears that they may have set the bar too high

and reached too far with these goals. Doing this means that PepsiCo may not make these goals

and brings to mind that PepsiCo may want to re-think these metrics in order to provide more of a

Page 17: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 15

quality sustainability program instead of a larger program; as was stated in the comparison

section, sustainability is not just about the quantity but the quality of programs as well. While

Coca-Cola does not appear to respond as readily to consumer wants and needs, as demonstrated

by their scientific approach in many areas, PepsiCo has shown to be able to respond quickly and

effectively to the recent shift towards healthier, more sustainable, lifestyles. I would also

recommend expanding PepsiCo’s sustainable packaging technologies into other areas of the

company as well and not isolating them to the Sun Chips brand of foods (6), as this could

provide a very large win to our environmental and human sustainability areas. Lastly, it is

recommended that PepsiCo expand or elaborate more on their sustainability of women in the

workplace. As evidenced by our current CEO, Indra Nooyi, PepsiCo not only recognizes the

equality of women leaders but also the power and strength that they provide to a company. The

GRI posting for PepsiCo, however does not properly give justice to these programs in the same

way Coca-Cola does. Overall, though it is refreshing to see two companies with differing

viewpoints that have chosen to address some of the world’s biggest problems: obesity, famine

and malnutrition, environmental sustainability, and even water conservation and definitely helps

me continue to feel empowered to help us meet our goals either in my current or future roles at

PepsiCo.

Page 18: Sustainability at PepsiCo - JamesKonderla.netjameskonderla.net/wp-content/uploads/2014/12/BUAD... · Sustainability at PepsiCo ... Due to this analysis PepsiCo ... the supply chain

Page 16

References

1. Environmental Sustainability. (2014, September 23). Retrieved November 1, 2014, from

http://www.pepsico.com/Purpose/Environmental-Sustainability.html

2. PepsiCo Releases 2013 Sustainability and GRI Reports. (n.d.). Retrieved November 1,

2014, from http://www.ethicalperformance.com/reports/view/983

3. Coca-Cola Enterprises has published its 2011/2012 CR and Sustainability Report. (n.d.).

Retrieved November 1, 2014, from http://ethicalperformance.com/reports/view/714

4. The Coca-Cola Sustainability Project. (n.d.). Retrieved November 1, 2014, from

http://www.coca-colacompany.com/sustainabilityreport/index.html

5. #11: PepsiCo. (n.d.). Retrieved November 9, 2014, from

http://www.greatplacetowork.com/best-companies/worlds-best-multinationals/profiles-

of-the-winners/1526-11-pepsico

6. Siranosian, K. (2010, February 22). New SunChips Bag: 90% Plant-based, 100%

Compostable. Retrieved November 11, 2014, from

http://www.triplepundit.com/2010/02/new-sunchips-bag-compostable/

7. Carbonated Soft Drinks: Is Demand Fizzing Out? (2010, August 1). Retrieved November

11, 2014, from http://www.accuval.net/insights/industryinsights/detail.php?ID=193

8. Porter, M., & Kramer, M. (2006, January 1). Strategy and Society:Â The Link Between

Competitive Advantage and Corporate Social Responsibility. Retrieved November 11,

2014, from https://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-

advantage-and-corporate-social-responsibility/ar/1