In an era where environmental sustainability is paramount, global corporations are stepping up to the challenge of reducing their environmental footprint. PepsiCo, a leader in the food and beverage industry, has made significant strides in this direction by focusing on one of the Earth’s most precious resources: water.
With a commitment to sustainability deeply embedded in its corporate ethos, PepsiCo has implemented innovative strategies to reduce water usage throughout its extensive supply chain.
Understanding the scope: PepsiCo’s water footprint
Approximately 90% of carbonated cola is water. However, given how dependent on water a company like PepsiCo is, that’s minuscule in comparison.
Throughout PepsiCo’s and its competitors’ value chains, the material is an essential resource. On a page dedicated to water on their website, PepsiCo states, “Water irrigates the crops we use, is a key ingredient in many of our products and is essential to ensuring we meet the highest product safety and quality standards in our manufacturing facilities.”
PepsiCo’s path to water positivity: A journey of innovation and collaboration
PepsiCo declared a few years ago that it will refill more water than it uses to become net water-positive by 2030. At the time, PepsiCo stated that if the initiative is successful, it would rank “among the most water-efficient food or beverage manufacturers operating in high-risk watersheds.”
The leader of PepsiCo’s water-use strategy told Supply Chain Dive in an interview that achieving that goal will need ongoing innovation, information exchange, and close collaboration with suppliers and local communities.
David Grant, senior director of PepsiCo’s global climate and water solutions, stated in an interview that “we need everyone on this journey.” “If we’re just kind of puttering away, we’ll never get around to it.”
As per NASA’s calculations, the Earth’s water content exceeds 326 million trillion gallons. However, freshwater makes up only a small portion of it, and in many places, droughts and other effects of climate change pose a growing threat to this resource.
Grant and his three-person team at PepsiCo look at watersheds where the company operates, collaborate with farmers who provide inputs to the firm and focus on internal efficiency. This frequently entails applying technology and best practices, to reduce water usage at the company.
The biggest breakthroughs in innovation are frequently made by Pepsi employees who study water use in local operations. For instance, the business discovered ways to reduce water demands and utilise operational water vapour at an Indian site, Grant noted.
Using a circular initiative that was started at a facility in Mexico, Pepsi was able to reduce its freshwater consumption by over 70% in just two years. The technology was later extended to operations in Brazil. To minimise water usage in the manufacturing of chips, the company has also made technological and process improvements in its snack division.
Grant stressed how crucial it is to collaborate with regional authorities and communities to promote watershed conservation. Despite having the best facilities and maybe the most water-efficient business in the world, Grant claimed that PepsiCo wouldn’t make much of an impact without water.
PepsiCo’s water stewardship journey: Efficiency, education, and environmental impact
PepsiCo has achieved a 22% increase in water-use efficiency since 2015. Additionally, it has replaced 45% of the water it uses in high-risk areas in nearby watersheds. To provide access to safe drinking water, the firm has also funded water filtration systems and conservation initiatives.
About 78,444 megaliters were withdrawn by the corporation in 2022, compared to 85,942 megaliters the year before. This is less than one-third of rival Coca-Cola’s yearly withdrawals.
PepsiCo recently established an open-access online course on water using the platform Coursera to disseminate the knowledge it has gained and assist in educating individuals both inside and outside the corporation on water challenges.
The course covers corporate water stewardship concepts, the effects of water on the supply chain, water cycles, and the legal and moral frameworks surrounding water for those who are interested in taking it.
According to Grant, the course is a part of “our way of bringing in colleagues and building capability in water.” “Water is one of those things that affects a lot of people’s jobs, but it’s very specific and localised.”
Looking ahead: A sustainable future for all
As PepsiCo continues its journey towards water sustainability, the company remains steadfast in its commitment to driving positive environmental impact while delivering value to its stakeholders.
By leveraging technology, fostering innovation, and collaborating with partners worldwide, PepsiCo is paving the way for a more sustainable future where water resources are preserved and protected for generations to come.
(Tashia Bernardus)