Gap Score: -2.3
  • PepsiCo had achieved more than $70M in estimated energy cost savings in 2012.

  • The brand has reduced the packaging weight of its products by more than 350 million pounds, exceeding its target by more than 20 percent.

  • By 2011, Pepsi had already met its 2015 goal to improve water use efficiency by more than 20 percent per unit. As a result, 14 billion liters of water ($15M in cost) were saved in 2012 alone.

  • In 2012, PepsiCo received the prestigious Stockholm Industry Award, which honors the business sector's contribution to sustainable water management, improved performance in production, and innovative approaches in water process technologies.

Working Together

Pepsi educates and works with its suppliers to improve social responsibility performance across its supply chain. Working with strategic suppliers on specific initiatives enables Pepsi to grow, extend its resource conservation programs, and set quantifiable goals for energy, greenhouse gas, water, agriculture, and forestry resource conservation within the extended supply chain. In its search to find innovative ways to reduce costs and minimize its impact on the environment, the PepsiCo Foundation has worked with the Columbia University Earth Institute on water-related projects since the Foundation's $6 million grant in 2008 helped found the Columbia Water Center. Demonstrating how the public and private sectors can share the responsibility of sustainably using the resources of our planet, PepsiCo and the Columbia Water Center are, together, addressing the challenges of water and sustainable development.

The Green Advantage

PepsiCo has been widely recognized for its water stewardship initiatives. Having won the 2012 Stockholm Industry Water Award and the 2012 U.S. Water Prize, the company is getting plenty of third party accreditation for its activity. Though performance overall in 2014 is generally steady, scores have decreased somewhat across key pillars. At a time when so many leading brands are redoubling sustainability efforts, even minor drops in performance amount to a setback for Pepsi. To close the performance/perception gap, Pepsi needs to move the conversation from compliance to goals, from reducing PepsiCo activities that are detrimental to activities that benefit society more widely. Additionally, PepsiCo must leverage its sustainability activities better through its brands, in particular, Pepsi. This is clearly a challenge for a diverse multinational that has operations in a range of sectors. Nonetheless, most of its current activities, while laudable, remain visible only at the PepsiCo level. The silver lining is an opportunity to engage further through its consumer brands, to ensure that more people recognize the commendable things it’s doing.


PepsiCo 2012 Sustainability Report
PepsiCo on Responsible Sourcing
PepsiCo Water Stewardship
How Pepsi Made Water its Sustainability Cause