Pepsi 2005 Annual Report Download - page 18

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Sustainability lives at the intersection of public and business interests. It encompasses
citizenship and corporate social responsibility, which are about doing the right things
for society and for the business. It encompasses the health of the corporation, which is
about fulfilling our mission of creating financial rewards and growth.
A History of Responsibility
PepsiCo has always been a responsible corporation. Our Worldwide Code of Conduct
had guided our actions for decades, and we have been a consistent contributor to our
communities and to the nonprofit organizations that support our society. We have been
recognized as a leading company in areas such as diversity and inclusion, purchasing
from women-owned and minority-owned suppliers, corporate governance, environmental
stewardship and social leadership. We provide our associates with a broad menu of
benefits and competitive compensation. We recognize our responsibility to consumers to
provide safe, quality products, and to offer product choices that help them meet their
needs, whether it is a need for pure refreshment and fun, or for foods and beverages
that make it easier and more enjoyable for them to lead healthier lives.
We recognize that is not enough.
Our Sustainability Journey
In 2003, we took the first steps on a journey to become a more sustainable corpora-
tion. We voluntarily adopted the Global Reporting Initiative (GRI) guidelines as a
template for reporting on our economic, environmental and social performance — the
“triple bottom line” —and a measure of our sustainability. In 2004, we took another
important step with the establishment of our Sustainability Task Force, comprised of
senior executives from all our divisions.
Throughout 2004 and 2005, the Sustainability Task Force defined our sustainability
vision and we determined our key focus areas: values, diversity and inclusion, health
and wellness, and the environment, especially water and packaging. We placed empha-
sis on the development of environmental standards and metrics.
The Sustainability Task Force, working with PepsiCo’s Environmental Task Force,
developed consistent metrics for tracking our progress in the areas of water and energy.
These measures are being introduced into all our divisions.
A sound Environmental Management System (EMS) is basic to sustainability. In
2005, PepsiCo developed a framework that establishes rigorous procedures for manag-
ing our environmental impacts. Previously, each division had distinct environmental
programs and processes. We have targeted 2006 to begin the process of implementing
our new EMS framework across our businesses.
Further progress was made on our Capital Expenditure Filter, a process that ensures
that sustainability issues are formally considered in all major capital expenditure
proposals. We piloted the filter on two projects, a new Gatorade plant in Virginia and a
new warehouse in Arizona. The filter proved to be a valuable tool in decision-making,
Our Mission
We aspire to make PepsiCo the world’s
premier consumer products company,
focused on convenient foods and beverages.
We seek to produce healthy financial
rewards for investors as we provide oppor-
tunities for growth and enrichment to our
employees, our business partners and the
communities in which we operate. And in
everything we do, we strive to act with
honesty, openness, fairness and integrity.
$ 526
20052001
$ 921
PepsiCo Supplier Diversity Spending
$ in Millions
Spending with women and minority
suppliers has grown at a compounded
annual rate of more than 15%.
Focus Areas
• Values
• Diversity and Inclusion
• Health and Wellness
• Water
• Packaging