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PepsiCo has just released its 2020 sustainability report, which showcases progress toward a more sustainable food system. The report says there is much work to be done to address pressing challenges in the food system, such as climate change, fertile topsoil loss and packaging waste.
The report looks at two key areas where rethinking the growth and sourcing of crops is a must:
• Sustainably sourcing 100% of its direct commodities in 28 countries, with nearly 87% of direct commodities sustainably sourced globally as of 2020
• Announcing a new Positive Agriculture ambition that aims to spread regenerative practices across 7 million acres, improve the livelihoods of more than 250,000 people in its agricultural supply chain and sustainably source 100% of its key ingredients, including key crops from third parties, by 2030
“We are working to transform the way we create shared value by operating within planetary boundaries and inspiring positive change for the planet and people,” says Ramon Laguarta, PepsiCo’s chairman and CEO. “This will make us a better company, with purpose more deeply integrated into our business strategy. It will also make us faster and stronger, enabling accelerated growth and continued investment in our people, business and communities. And we hope it will make us an example for our partners and our peers.”
PepsiCo is also looking to reduce absolute GHG emissions across its value chain by 5%, improve operational water-use efficiency by 15% in high water-risk areas, continue efforts to reduce packaging waste to zero by converting to 100% rPET in 22 markets worldwide and complete its transition to 100% renewable electricity for its U.S. operations.
“2020 was a year of challenges and a year of change,” says Jim Andrew, chief sustainability officer, PepsiCo. “The challenges created by the COVID-19 pandemic impacted every corner of the globe and highlighted the urgent need to partner and drive change toward a more sustainable and resilient food system. I’m proud that PepsiCo rose to the challenge in 2020, and there’s no slowing down PepsiCo’s ambition to drive a positive impact on our planet and the communities we serve.”
With climate change, water availability has been a challenging input, especially if a company’s product is bottled water. Nestlé Waters is expanding its current efforts to manage water sustainability and increase its collaboration with partners to support local solutions. These solutions are designed to help regenerate the ecosystems in the areas around each of Nestlé Waters’ 48 sites. As of 2025, the company expects to help nature retain more water than the business uses in its operations.
Nestlé’s new initiative builds on the company’s 2017 commitment to certify all of its Waters’ sites by the Alliance for Water Stewardship (AWS) by 2025. This standard requires water users to understand and act collectively on water challenges.
Nestlé will use its expertise to advance the regeneration of local water cycles through the implementation of more than 100 projects for its 48 sites by 2025, which will represent a $130 million investment. These new, measurable actions will support better water management and infrastructure. Project examples include:
• Buxton—Land conservation (protecting land from development) and natural flood management interventions in Derbyshire, UK
• Vittel—River restoration and renaturation projects in Vosges, France
• Nestlé Pure Life—Support for farmers to use drip irrigation in Sheikhupura, Pakistan
• Nestlé Pure Life—Delivery of water treatment, filtration and pipeline infrastructure for the municipal water supply in Benha, Egypt
Nestlé’s work will be tailored to individual locations, needs and issues, and will take a broader approach going beyond its own operations. The company will work with local water users, communities, partners and global experts to identify, develop and progress projects specific to those challenges.
All projects will be measurable, using the World Resources Institute’s Volumetric Water Benefit Accounting (VWBA) methodology. This methodology provides consistency in analyzing water management activities and helps to ensure that such activities address current and future shared water challenges.
“As a business with a long heritage of nature protection and water stewardship, we want to go beyond the conservation of water sources to help regenerate and restore water cycles in the areas where we operate,” says Cédric Egger, head of Sustainability at Nestlé Waters. “We know the water challenge is global, but it can only be tackled through local solutions. Now is the time to expand the scope of our actions. With Nestlé’s presence around the world, we can learn from our many partners and contribute to solving the water challenges in the locations near our operations.” FE