In a statement, PepsiCo stated that by 2030, company hopes to be net water positive, or to restore more water than it consumes. If PepsiCo achieves this target, it will be among the most water-efficient food and beverage firms operating in high-risk watersheds.
• The firm stated that the strict water-use-efficiency criteria would apply to more than 1,000 company-owned and third-party facilities, roughly half of which are located in high-risk watersheds. This would save about 11 billion litres of water each year.
• PepsiCo’s pledge to cut its water usage comes as food and beverage conglomerates around the world seek to minimize their environmental footprint through a variety of initiatives such as the use of recyclable materials, renewable energy, sustainable farming techniques, and emission reductions.
Insight in detail:
PepsiCo, which owns brands including Mountain Dew, Aquafina, and Fritos, consumes a lot of water to create the goods that earn billions of dollars in sales each year. The firm used more than 28.1 billion litres of water in 2020 alone.
Its most recent vow builds on previous commitments. According to its 2020 sustainability report, the firm aims to increase water-use efficiency by 15% in its agricultural supply chain (centered on maize and potatoes) in high-risk areas by 2025. It also intends to restore to the environment 100 percent of the water used in production in high-risk locations by 2025.
PepsiCo restored 18 percent of the water a year ago, compared to 10% in 2019 and 9% in 2016.
“The world’s time to act on water is running out. Water is not only a vital component of our food system; it is also a fundamental human right, and a lack of safe, clean water is one of the most pressing issues facing our global community today “In a statement announcing its net water positive initiative, PepsiCo’s chief sustainability officer, Jim Andrew, said.
According to David Grant, PepsiCo’s sustainability director of global water stewardship, returning more water than it uses would involve actions such as injecting water back into aquifers in high-stress areas and working on conservation initiatives that make the soil more absorbent of precipitation.
PepsiCo did not say how much money it would spend on the water commitment, but Grant told the paper it would make “a significant investment at sites around the world.”
However, food and beverage firms have a strong interest in reducing their environmental footprint not only to satisfy customers, but also for their long-term future and bottom line. According to Ceres, the global food sector consumes 70% of the world’s fresh water. According to UN predictions, demand for water would be 40% more than availability by 2030.
As a result, water has been a key concern for large CPGs. Among the companies that have taken part in the Ceres and World Wildlife Fund AgWater Challenge are Danone, Diageo, General Mills, Hormel Foods, Kellogg, and PepsiCo. The AgWater Challenge, which was launched in 2016, pushes big food and beverage firms to be more aware of their water consumption.
Even Tyson Foods, a long-time opponent of environmental groups, is collaborating with the Environmental Defense Fund on a land stewardship program that will allow it to lower its water consumption, reduce greenhouse gas emissions, and help farmers grow more food.
Some opponents have chastised food and beverage businesses for announcing commitments and then failing to reach those targets, or for not being honest enough about their efforts. However, as more companies, such as PepsiCo, commit to better water stewardship, pressure from shareholders and customers will mount on other CPGs to do the same.