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1 Post-Copenhagen: traction & challenge FDIN Post-Copenhagen Andrew Smith Head of Corporate Responsibility PepsiCo UK & Ireland andrew.i.smith@intl.pepsico.com@intl.pepsico.com (+44) 07912 971090 Slide 2 The brief from Alan: The Copenhagen glass; half full or half empty? Where is sustainability goingpoints of traction, points of challenge Slide 3 3 Copenhagen does it matter? Traction & challenge: 1.Operational Efficiency 2.Food waste 3.Embedded carbon / supply chain 4.Carbon reduction label 5.Public health FDIN Post-Copenhagen Slide 4 Who we are Slide 5 5 COPENHAGEN Does it matter? Slide 6 Copenhagen matters The Guardian, yesterday Slide 7 7 but consumer interest and pressure is here to stay Slide 8 8 ever increasing scrutiny and transparency Two of our growers, courtesy of Google Earth Slide 9 ..alongside the impacts of climate change Slide 10 ..which have already begun Walkers potato crops, 2009 Slide 11 11 TRACTION AND CHALLENGE Slide 12 Glass half full or half empty? Slide 13 13 Traction 1. Operational efficiency 2000-2007:2008: Slide 14 14 Efficiency drivers people and technology High efficiency heaters Burner replacement programme Thermal imaging to drive upgrades and insulation Slide 15 15 Progress on absolute carbon emissions too Slide 16 16 The traction >> the challenge All energy used in PIUK manufacturing and distribution to be from renewable sources within 15 years All energy used in PIUK manufacturing and distribution to be from renewable sources within 15 years Energy To achieve radical carbon reduction, business will need Government to provide the right framework. There is no effective price on carbon, no penalty for the laggards, little reward or predictability for those who invest in solutions Richard Evans, President PepsiCo UK & Ireland, September 2009 2008: Efficiency versus transformation: Slide 17 17 Traction 2. Food waste 5 UK sites already at zero landfill Slide 18 18 Huge strides towards zero landfill FROM THIS TO THIS Slide 19 19 The traction >> the challenge Achieve zero landfill waste across our total supply chain within 10 years Waste Consumer challenges: Slide 20 20 44% Agriculture 30% Processing cooking 9% Transport 2%Packaging disposal 15% Packaging supply chain Traction 3. Embedded carbon and supply chain Walkers footprint: Slide 21 21 From alignment to metrics and action ADAS -Sustainable Potato Project KPIs, metrics and improvement plans developed around carbon, water, agrochemical and energy hotspots Slide 22 22 : Traction 4. Carbon reduction label Launched on Walkers in 2007, Quaker in 2009 Our hope: Galvanise our business and suppliers to tackle hotspots Empower consumers to make environmentally considered choices Slide 23 23 : The traction >> the challenge Consumers believe transparency will drive action/reduction: Consumer choice v speed of action required? Slide 24 Traction 5. Public health Slide 25 The traction >> the challenge Slide 26 Half full or half empty? Slide 27 27 Feedback / engagement Andrew Smith Head of Corporate Responsibility PepsiCo UK & Ireland andrew.i.smith@intl.pepsico.com@intl.pepsico.com (+44) 07912 971090