Innovation

Who: PepsiCo Food and Beverage, specifically the company's global initiative Pep+.

What: Pep+ is an innovation created by PepsiCo's sustainability team with the aim of creating a more sustainable future for the planet and society. PepsiCo positive is a roadmap for how we operate within planetary boundaries and promote positive change for the planet and people. The model of Environmental, Social, and Governance (ESG) is a crucial part of helping the business achieve its Pep+ goals. Each goal within the initiative covers all areas of the SDGs by incorporating the model of ESG. The three main aspects of the initiative are positive agriculture, positive value chain, and positive choices.

When: PepsiCo created an ESG summary that encompasses all the goals they wish to accomplish by 2030.

Where: Pep+ is an initiative implemented worldwide in over 200 countries. For our specific interview, we were discussing Canada's accomplishments of the goals. PepsiCo is divided into seven main divisions, three of which are North American; PepsiCo Beverages North America, Frito-Lay North America, and Quaker Foods North America. Then four other sections; Latin America, Europe, Asia Pacific, Australia, New Zealand and China (APAC), and Africa, Middle East, and South Asia (AMESA).

How: To accomplish the goals of Pep+ the organization has set out clear missions, visions, and strategies for each area of specification. PepsiCo has a strategy to promote regenerative farming practices over seven million acres by 2030. Which will help improve and restore the ecosystems across the areas of impact therefore improving the livelihoods of the farmers. PepsiCo has partnered with over 89 farms to demonstrate the benefits of regenerative farming. PepsiCo has also launched a Regenerative Agriculture Practice Bank in May of 2022 as a resource to help farmers and suppliers. As for the positive value chain PepsiCo has set a climate action strategy to reach net-zero greenhouse gas emissions. As spoken about in the interview with Chris Johnston he speaks about PepsiCo Canada achieving 100% renewable energy as of this year. By gaining a long-term agreement for wind energy in Alberta and buying renewable energy certificates the company was able to accomplish this goal of 100% renewable energy. In summary, there are numerous examples of how PepsiCo implements and accomplishes the goals of Pep+. By following a clear model of guidelines, research, and strategies, PepsiCo is able to achieve its sustainability goals that align with the SDGs.

Inspiration

The two leaders; Shawna and Chris spoke about the reasons behind PepsiCo developing Pep+. Explaining that they wanted to ensure all aspects of the business were contributing to the world in a positive way. Pep+ was created as a strategic end-to-end transformation of the business with sustainability at the center. The inspiration to create growth and value in the company’s operations ensuring it's within the planet's boundaries. Pep+ is all about inspiring positive change for the planet and people. Chris Johnston explained “This is a major transformation for our business, it has taken many years to create but it was worth every minute. Pep+ is a long-term initiative that will continue to require hard work and dedication. Needing the help of stakeholders and governments to ensure the goals succeed, as we reimagine the way good is consumed, produced and grown”.

Overall impact

Who: PepsiCo’s business, stakeholders, and our planet's ecosystems.

What: The program has three interconnected pillars, including Positive Agriculture, Positive Choices, and Positive Value Chain. Each pillar has produced numerous short-term and long-term gains for the planet and people.

When: PepsiCo launched Pep+ in September 2021 and published its first Environmental, Social, and Governance (ESG) summary in 2022. The goals of this summary are being accomplished now till 2030 and beyond. Pep+ is an ever-changing and growing initiative that will continue to impact the world and people’s lives for many years.

Where: Pep+ is an initiative implemented worldwide in over 200 countries. For our specific interview, we were discussing Canada's accomplishments of the goals. PepsiCo is divided into seven main divisions, three of which are North American; PepsiCo Beverages North America, Frito-Lay North America, and Quaker Foods North America. Then four other sections; Latin America, Europe, Asia Pacific, Australia, New Zealand, and China (APAC), and Africa, Middle East, and South Asia (AMESA). The innovation of Pep+ applies to all of these areas of the world. Each sector has its own set of missions, visions, and strategies to accomplish their sustainability goals.

How: PepsiCo Positive aims to achieve its sustainability goals through several initiatives, including but not limited to the following:

Positive Agriculture: PepsiCo unveils its Positive Agriculture strategy, which aims to scale regenerative farming across seven million acres of land by 2030 - an area approximately equal to the company's entire agricultural footprint. This is expected to reduce an estimated three million tons of greenhouse gas emissions.

Positive Choices: Pep+ aims to offer consumers positive choices that use less plastic, create fewer emissions, and are better for people. PepsiCo is working to reduce virgin plastic per serving by 50% across its global food & beverage portfolio by 2030, using 50% recycled content in its plastic packaging, and scaling the SodaStream business globally, among other levers.

Positive Value Chain: PepsiCo is building a circular and inclusive value chain to reduce waste and increase recycling. The company is working to achieve net-zero emissions by 2040, become net water-positive by 2030, and introduce more sustainable packaging into the value chain.

2030 Goals: Pep+ brings together several industry-leading 2030 goals under a comprehensive framework. PepsiCo is working to use 100% recycled or renewable plastic in all crisp and chip packets by 2030, which is projected to reduce GHG emissions in Europe from film food packaging by up to 40%. PepsiCo announces a global packaging goal to deliver 20% of beverage servings sold through reusable models by 2030.

Business benefit

The innovation of pep+ in 2021 has had a significant effect on PepsiCos overall business whether for its employees, revenues, products, or brands each area has been positively impacted for the better. Pep+ has a direct link to the long term success of PepsiCo's business. Now more the importance of being a sustainable business is crucial because of climate change.

On the other end of the spectrum, the importance of being a people-oriented business is just as crucial to a business's success. PepsiCo implementing pep+ shows society that they care about the well-being of people and the planet. By implementing regenerative practices to restore the earth across land equal to the company's entire agriculture footprint (approximately seven million acres). This will in turn produce sustainability sourced crops and ingredients, and improve the livelihoods of more than 250, 000 people in PepsiCo's agricultural supply chain by 2030.

Pep+ also covers areas for a positive value chain which encompass progress towards a diversity, equity, and inclusion journey. Goals towards creating a safer, more diverse, equitable, and inclusive workplace. These goals improve the mental health and well-being of all those employed by PepsiCo. The company invests in developmental programs, delivers meals worldwide, volunteering programs, and many more. Overall the implementation has Pep+ will continue to benefit those employed, its stakeholders, and the environment.

Social and environmental benefit

The interviewee commented about the company's commitment to supporting its suppliers, particularly farmers, through the adoption of regenerative agricultural practices. This commitment is further substantiated by the launch of the Positive Agriculture Playbook, a tool designed to empower farmers to set, achieve, and report their own regenerative agriculture and climate goals. The playbook represents a tangible means for farmers to actively contribute to sustainability efforts and align their practices with environmental objectives.

PepsiCo introduced the Positive Agriculture Outcomes Fund. This innovative fund serves as a financial mechanism to support and incentivize agricultural innovation. By financing projects that focus on regenerative practices, the fund uniquely addresses the financial barriers that may impede the adoption of sustainable initiatives.

The interviewee outlined PepsiCo's expectations for suppliers, emphasizing the importance of setting science-based targets on climate and transitioning to renewable electricity. The implementation of pep+REnew exemplifies the company's commitment to facilitating this transition. The program provides crucial resources to suppliers, aiding in their understanding of renewable electricity purchasing and facilitating joint investments in renewable energy projects through group power purchase agreements.

In addition, PepsiCo's Pep+ commitment to diversity, equity, and inclusion is not only a corporate initiative but a comprehensive strategy that extends beyond the workplace to positively impact society and the environment. The program encompasses not only its associates but extends to business partners, communities, and future generations. This involves robust processes for managing pay programs to ensure pay equity across employee groups. Equal opportunities are a central theme, ensuring that PepsiCo is not just a workplace but a space where all individuals have equal opportunities to grow and succeed. PepsiCo is actively reshaping its recruitment, development, and retention practices as part of its Racial Equality Journey. The company is proactively working to reshape its workplace culture to foster inclusion, and it has implemented mandatory unconscious bias training. These actions represent a strategic and intentional approach to creating an environment where diversity is valued, and everyone feels a sense of belonging.

Interviews

Chris Johnston, National Engineering & Sustainability Director

Shawn Vassel, Communications Manager PepsiCo Foods Canada