PepsiCo's Sustainability Efforts

PepsiCo is committed to protecting the Earth's natural resources through innovation and more efficient use of land, energy, water and packaging. The company's Sustainability Reports detail PepsiCo's governance and economic impacts, as well as achievements in human sustainability, environmental sustainability, and talent sustainability.

Earlier this year, PepsiCo UK produced its second environmental sustainability report. As reported in a MarketingWeek article, the report looked at climate change, agriculture, water use, its products and how the company works with others to drive change within the business.

Since 2005, PepsiCo has also been committed to greening its vehcle fleet. As of 2009, the company had 1,250 hybrid vehicles, which amounted to the second largest non-governmental fleet of hybrid vehicles in the US.

“Our commitment to hybrid company cars is part of our overall commitment to corporate sustainability and reducing our fuel consumption and greenhouse gas emissions,” said Pete Silva, director fleet procurement, PepsiCo.

The company’s sustainability policy includes steadily improving environmental, social, and economic aspects of the world in which it operates. Topping three EPA lists (The Top 25; Fortune 500 Challenge; and “100 Percent Green Power Purchaser”), PepsiCo will continue to add hybrids to its fleet.

Hybrid fleet models include Toyota Prius and Ford Escape and delivery trucks. Pepsi Co. owned, Frito Lay has electric delivery vans and they use hybrid refrigerated delivery trucks in select divisions.

PepsiCo has also worked with GreenDriver to train sales and delivery drivers on fuel-efficient driving techniques.

In addition to sustainable initiatives in its manufacturing of food and drink the company plans to introduce FSC paper-based packaging to its Quaker and Walkers brands within three years as part of its plan to make all packaging renewable, recyclable or bio-degradable by 2018.

For more information on PepsiCo's sustainability efforts click here.

© 2011, Richard Matthews. All rights reserved.

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HP's Sustainable Innovation Serves the Planet and Profits

Hewlett-Packard (HP) proves that sustainability efforts can be a win-win proposition that is good for the environment and also good for the bottom line. HP has a long history of ‘doing the right thing’ that dates back to 1957. The company is the largest technology company in the world and it wholly integrates environmental considerations into its business strategy. The company sees sustainability as an integral part of the way business is conducted.

As reported in The Green Economy Post, HP is focused on minimizing environmental impacts and promoting the welfare and safety of employees and customers. For decades HP has worked to manage its environmental impact by adopting environmentally responsible practices in product development, operations and supply chain.

Frances Edmonds, the Director of Environmental Programs for HP Canada outlined how HP’s environmental commitment has led to greater profitability. She said, to be sustainable companies must have "a vision to reduce waste coupled with encouragement for employees to find innovative solutions for the uncertain journey that lies ahead."

Accounting for 2% of the world’s carbon emissions, the ICT sector (information and communication technology) has a very heavy footprint. According to Edmonds the information technology sector can reduce its own footprint and offer solutions to the world’s carbon problem. Edmonds was quick to include the fact that HP is firmly focused on playing a key role in finding and implementing these solutions.

Edmonds reviewed some simple yet innovative sustainable solutions including restricting an employee’s ability to book travel to other offices teleconferencing technology is available. HP has also shown leadership in responsible recycling of old technology and print supplies through its Planet Partners program which is active in over 50 countries.

HP's inkjet recycling program is a good illustration of the company's sustainable initiatives. The program was introduced in 2005, it achieved resource reduction through recycling that saves HP money and builds a stronger relationship with valuable supply chain partners like Staples.

HP's life cycle analysis (LCA) of the recycled inkjet cartridges prove the benefits of the company's recycling efforts. Between 2005 and 2010 recycling reduced the carbon footprint of the inkjet cartridges by 22 percent, cut fossil fuel use in half and reduced water use by 69 percent. Despite these impressive results, HP continues to improve. Carbon reductions are now 33 percent better than in 2005, fossil fuel use has been cut by 62 percent and the water savings have increased to 89 percent.

Edmonds highlighted HP’s management structure which encourages innovation and supports ‘doing the right thing.’ She also mentioned the company's reliance on Integrated principles of Extended Producer Responsibility which imply that HP accepts external responsibility for their products. Finally she stressed the importance of employee engagement programs that both explain issues and support them as they innovate.

HP is committed to sustainability because it knows that this approach results in better products, while increasing profits and decreasing environmental impact. For HP sustainability is a powerful competitive advantage.

To see Helwett Packard's document Sustainability as a Competitive Advantage, click here.

© 2011, Richard Matthews. All rights reserved.

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PUMA's Sustainable Packaging Innovation

In 2010 PUMA launched its innovative packaging solution known as the “clever little bag”, conceived in partnership with Yves Béhar. The company says new packaging initiatives will reduce cardboard use by 65 percent. Less packaging materials, means less use of water and energy to produce. This innovative solution reduces carbon emissions by 10,000 tons per year.

The Clever Little Bag has integrated the features of a traditional cardboard shoebox into a re-usable shoe bag. Reducing raw materials and the resources needed to make them.

PUMA will reduce water, energy and diesel consumption on the manufacturing level by more than 60% per year. This translates to saving approximately 8,500 tons of paper, 20 million Megajoules of electricity, 1 million litres less of fuel oil used and 1 million litres of water saved.

The Clever Little Bag also saves emissions and costs in shipping. Because it is smaller and lighter the Clever Little Bag provides reductions in transportation related emissions while reducing diesel fuel requirements by half a million litres.

The replacement of traditional shopping bags with the Clever Little Bag can save up to 275 tons of plastic. PUMA's apparel will be bagged in sustainable biodegradable materials replacing traditional polyethylene bags. This means that 720 tons of polyethylene bags can be avoided per year, which equals a saving of 29 million plastic bags and saves 192 tons of plastic. Replacing paper bags will save 293 tons of paper annually. All of PUMA's packaging materials used will be fully sustainable by 2015.

© 2011, Richard Matthews. All rights reserved.

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PUMA's Comprehensive Sustainable Strategy Now Includes Environmental Accounting

PUMA's efforts to improve social, labor and environmental standards throughout its operations date back to 1999. Since then the company has continuously incorporated environmental standards and practices to reduce its impact on the planet,

According to Jochen Zeitz, Chairman and CEO of PUMA, the companies mission is, “ to be the most desirable and sustainable Sportlifestyle company in the world.” To help with this mission the athletic apparel manufacturer identified opportunities to further manage the company's footprint using E-KPIs (Environmental Key Performance Indicators).

In 2010 PUMA launched another phase of the puma.safe initiatives and long-term sustainability program. It includes a set of ambitious targets. The company announced that it is reducing carbon, energy, water, and waste by 25 percent. PUMA also said that it will produce half of its international product collections in footwear, apparel and accessories according to best practice sustainability standards by 2015.

The athletic apparel manufacturer is cutting paper use by 75 percent and offsetting the remaining paper usage through tree planting initiatives. Through more efficient product transport solutions by logistic partners, the company will reduce CO2 by 25 percent. PUMA is also greening its supply chain by collaborating with strategic suppliers and logistic service providers to offset their own footprints.

Additionally, 50 percent of PUMA’s international collections will be manufactured according to the PUMA S-Index standard by 2015. This involves using sustainable materials such as organic cotton, Cotton Made in Africa or recycled polyester as well as applying best practice production processes.

To monitor these objectives the sports and lifestyle brand is also establishing an external Advisory Board of experts in sustainability to consult on the company’s mission and audit their sustainability program.

PUMA joined the UN Climate Neutral Network and has the industry’s first carbon neutral head office — the PUMA Vision Headquarters in Herzogenaurach, Germany.

Now Puma is producing the first-ever Environmental Profit and Loss (EP&L) statement. The company's new method of accounting will allow it to produce a new type of integrated reporting. The EP&L statement will attempt to measure the full economic impact of the brand on ecological systems including water and air. Puma commissioned Trucost and PwC to assist in developing the EP&L methodology.

The EP&L project is part of a larger environmental initiative by Puma’s parent company PPR Group, whose other brands include Gucci, Yves Saint Laurent and Stella McCartney. The group is also launching a “creative sustainability lab” in consultation with Cradle-to-Cradle, which PPR says will foster a new approach to product and business development. In this new approach, products and services will move beyond typical measures of quality--cost, performance and aesthetics--to integrate and apply additional objectives addressing environmental and social concerns.

The group said the overarching program, dubbed PPR Home, will go beyond the traditional Corporate Social Responsibility model and set a new standard in sustainability and business practice in the Luxury, Sport & Lifestyle and Retail sectors.

PBR bought carbon credits from Wildlife Works Reduced Emissions from Deforestation and Degradation (REDD) offsetting project in Kenya. The group has offset 98,729 tons of global CO2 emissions in 2010 for its Luxury group. Further, the Puma brand and PPR’s headquarters are both committed to carbon neutrality.

© 2011, Richard Matthews. All rights reserved.

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