PepsiCo Reports Significant Strides in Pursuit of Performance With Purpose 2025 Agenda
In its latest Sustainability Report PepsiCo reported important progress in 2017 against each of the company’s three focus areas – Products, Planet, and People – while also returning $6.5 billion in cash to shareholders during the same period. This progress advances PepsiCo’s ongoing sustainability efforts across its operations, value chain, and the food and beverage industry at-large, as part of the company’s Performance with Purpose 2025 Agenda.
“Performance with Purpose is about the character of our company and managing PepsiCo with an eye toward not only short-term priorities, but also long-term goals, recognizing that our success—and the success of the communities we serve and the wider world—are inextricably bound together,” said Indra K. Nooyi, PepsiCo Chairman and CEO. “Today, it’s more important than ever before to advance sustainability and profitability at the same time, and I’m so proud to say that’s what we’ve been doing for more than a decade.”
Highlights from PepsiCo’s 2017 Sustainability Report include:
Products: PepsiCo continued to reduce added sugars and sodium in its beverage and foods portfolios, respectively, in 2017 and move its business towards more nutritious products. Through new product innovations and reformulations, 43 percent of its beverage portfolio volume, up from 40 percent in 2016, contained 100 Calories or fewer from added sugars per 12-ounce serving. 7UP and Mirinda now have at least 30 to 50 percent less added sugars than the full sugar versions they replaced in dozens of markets worldwide. Zero sugar Pepsi Black is now available in 73 markets globally. With the launches of products such as LIFEWTR and Quaker Overnight Oats, the company increased its net revenue from its Everyday Nutrition portfolio to 27.5 percent of the company’s total net revenue.
- In 2017, PepsiCo Ukraine started supplying our market with black-styled minimum-calories Pepsi. The same year the company came up with an innovation in its juice beverages line – Sandora FRUTZ. In February 2017, a new juice Fitness, part of Sandora Essentials® juices and nectars line, was launched; it contains 23 kkal per 100 ml. Besides, the company launched a new low-sugar Lipton Ice Tea. Starting in June 2017, stevia partially replaced sugar in the ice tea formula. PepsiCo Ukraine simultaneously developed its portfolio of dairy products and baby foods: it put a mix of kefir and fruit “Slovianochka”, whipped cream cheese “Chudo”, a line of dairy foods for children “Zasynaiko” containing melissa extract by “Agusha” brand on the market in 2017. On the whole, over 60% of PepsiCo Ukraine’s portfolio is made up of day-to-day consumption foods: juices, dairy products, baby foods.
- In 2017, PepsiCo Ukraine contributed over 400 tons of its products for charitable use via charity funds.
Planet: Nearly 80 percent of PepsiCo’s directly sourced crops globally came from farmers engaged through the company’s Sustainable Farming Program, which aims to optimize economic, social and environmental on-farm practices and outcomes. This number has more than doubled from 34 percent at the end of 2016 and it represents over 40,000 growers in 38 countries. Additionally, the Report highlighted that PepsiCo, the PepsiCo Foundation and its partners have provided nearly 16 million people access to safe water since 2006, an increase of nearly five million in just the past year.
- PepsiCo’s aspiration for preservation of the environment was reflected in the company’s consistent cutting on natural resources consumption and implementing various eco-initiatives in Ukraine. Thus, the company increased its water saving by 15%, its energy saving by 6%, its gas saving by 13% per each ton of manufactured products.
- In April 2017, the company’s employees took part in a large-scale campaign of cleaning up the country “Let’s Make Ukraine Clean Together”. In November the company once again joined a campaign of planting trees “Let’s Help with Reforesting Together” under the auspices of the Forest Stewardship Council (FSC). Together with our partners, more than 32,000 trees were planted on over 6.5 hectares within the framework of the campaign.
- Last year PepsiCo Ukraine kept on shaping a responsible attitude of schoolchildren to household waste treatment within the framework of an educational project «Let’s Do It, Ukraine – School Recycling». All schools of Mykolaiv and three schools of Vyshneve, Kyiv Region, joined the project in 2017.
- In November 2017, a pilot project of household solid waste sorting by the public started in Vyshgorod. The project was supported by PepsiCo, Ukrainian Ecological Packing Coalition, local authorities and other partners. Citizens had additional recycling bins installed free of charge; they can remove their packaging waste here: glass, plastics, polyethylene, tins, etc. The waste is sent further to be sorted and recycled.
- PepsiCo keeps on using FSC-certified packing for its produce extensively. By the end of 2017 almost all of the company’s Tetra Pak packaged produce was labelled by the Forest Stewardship Council (FSC™). It proves that the packing is made of wood from responsible forestry enterprises that care for reforestation and forest conservation.
People: PepsiCo has now reached 6.4 million women and girls through increased investments in local communities around the world since 2015. This includes projects like Women with Purpose, through which the company helps support thousands of women in Latin America to access entrepreneurship and employment opportunities.
- In 2017, PepsiCo was certified as the TOP-employer in Ukraine by the Top Employers Institute. Experts of the Top Employers Institute gave a high rating to the company according to the following criteria: its talent strategy, workforce planning, on-boarding, learning and development, performance management, leadership development, career and succession management, compensation and benefits, corporate culture.
- By the end of 2017, the company had given access to safe drinking water to four thousand children from kindergartens and schools in Mykolaiv and Kyiv Regions within the framework of its “Safe Water” project. The company had had water treatment systems installed in these educational establishments.
- In 2017, PepsiCo Ukraine supported educational events for women in business offered by the American Chamber of Commerce in Ukraine.
Alongside the 2017 Sustainability Report, PepsiCo has published a Performance Metrics sheet and expanded its A–Z Topics on pepsico.com, which provides additional information about the company’s policies, programs, governance and performance against its 2025 Agenda.
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $63 billion in net revenue in 2017, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our fundamental belief that the success of our company is inextricably linked to the sustainability of the world around us. We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world help PepsiCo run a successful global company that creates long-term value for society and our shareholders. For more information, visit www.pepsico.com.
About PepsiCo in Ukraine
PepsiCo Ukraine, represented by “Sandora” and “Wimm-Bill-Dann Ukraine” companies, is one of the leaders of the Ukrainian market of foods and beverages. The company occupies a leading position in the market of juices and juice products with “Sandora”, “Sadochok”, “Sandorik” brands and others. The brand portfolio also includes Pepsi, 7UP, Mirinda carbonated drinks, Lipton Ice Tea iced tea, “Essentuki” and “Aqua Minerale” mineral water. In the market of snacks, PepsiCo Ukraine is represented by TM Lay’s (chips) and TM HrusTeam (crisp bread product). The company holds a strong position in the market of dairy products with “Chudo”, “Slovyanochka”, “Mashenka”, “Smachnenky”, “Romol” and other trademarks. PepsiCo Ukraine baby food is represented by the “Agusha” brand products.