Pepsi 2007 Annual Report Download - page 26

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We have proven that extraordinary
results are possible. Frito-Lay has
reduced per-pound water use by more
than 38%, manufacturing fuels by more
than 27% and electricity by more than
21% since 1999; and our Quaker,
Tropicana and Gatorade businesses have
reduced manufacturing fuels by 26%,
electricity by 24% and water by 12% in
the last three years.
We’re achieving similar results in markets
outside the United States. In Mexico, our
Sabritas team has cut per-unit electricity use
by more than 9% over the past five years,
and water use by 26%. In China, our bot-
tling plants have reduced water consump-
tion by 40% and energy consumption by
38% over the past three years.
Throughout the world, we have similar
stories that demonstrate how we are
taking this responsibility seriously,
because it is the right thing to do, but
also because it’s the smart thing to do for
more efficient use of energy, water and
packaging in our business operations.
Conserving Energy and
Harnessing Renewable Resources
2007 was a year of considerable prog-
ress for PepsiCo, beginning with exter-
nal partnerships and programs focused
on renewable energy and strategies to
reduce greenhouse gas emissions.
PepsiCo joined the U.S. Environmental
Protection Agency (EPA) Climate
Leaders, a voluntary partnership pro-
gram that works to develop comprehen-
sive climate change strategies, including
supporting reduction in greenhouse
gases. And we were the first consumer
products company to join with other
concerned companies and non-
governmental organizations in the U.S.
Climate Action Partnership to encourage
the federal government to enact climate
legislation. These programs make good
commercial sense for us and help us use
our resources well.
We are also proud of PepsiCo’s land-
mark purchase of renewable energy
certificates. This financial instrument
stimulates and supports the develop-
ment of renewable electricity, and our
investment matches the purchased elec-
tricity, used by all of PepsiCo U.S.-based
manufacturing facilities, headquarters,
distribution centers and regional offices.
Our three-year purchase of more than
one billion kilowatt-hours annually is the
same amount of electricity needed to
power nearly 90,000 average American
homes annually, as estimated by the U.S.
EPA based on national averages.
We are already implementing many of
our own renewable energy operations.
In 2007, we announced major renew-
able energy projects including plans for
our “net zero” plant in Casa Grande,
Arizona. With plans to run almost
entirely on renewable fuels and recycled
water, this plant is scheduled to begin
production by 2010.
Frito-Lay North America flipped the
switch last year on the largest business-
owned, photovoltaic power system in
Arizona. Producing no emissions, the
system captures the energy of one of
Arizona’s abundant natural resources
— turning the power of the sun into
electricity. It incorporates a 201-kilowatt
photovoltaic array covering 27,000
square feet of roof space at the com-
pany’s service center in Phoenix. PepsiCo
has already installed photovoltaic
systems in six other distribution centers,
from California to New York.
We strive to replenish the resources we’ve used, where possible, as part of our commitment to being an
environmentally responsible corporate citizen. Our associates are passionate about this vision and continue
to drive programs to reduce our energy and water consumption, invest in new energy research and
improve our packaging sustainability.
Walkers is the first major food brand in the world to display a carbon footprint/reduction logo on
its packs. The label was developed by the Carbon Trust, a U.K.-government-funded independent
organization that works to accelerate the move to a low-carbon economy.
Walkers has had a partnership with the Trust since 2001 and has
reduced energy use per pack by a third and water use by
almost half. One step in reducing carbon was sourcing the
potatoes domestically to reduce the transport miles.
The Walkers advertising campaign highlights that the
brand now uses 100% Great British potatoes.
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