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PepsiCo’s top honchos are now paying special heed to environmental initiatives. Angshuman Paul finds out more...

PepsiCo’s latest corporate report also talks about environmental sustainability. Can you elaborate on it?
SAL: Our group policy has always been to maintain the eco-system of the locality where we are operating. But now we would be doing that with a clear cut mission under ‘environmental sustainability’ and specifically for the South Asia, Middle East and Africa (SAMEA) region.

So, what exactly are you planning for this region?
SAL: We would be planting more trees, especially citrus-based fruit trees. We also plan to preserve natural water resources and achieve positive water balance by 2009. In India we will save and recharge more water than what we will use in our plants. MK: Millions of people in this region are suffering from major deficiencies of key nutrients like iron, Vitamin A, et al, which is leading to serious health problems. Thus we plan to launch healthy products to address such issues.

How are these green initiatives helping Pepsi?
SAL: This is not a part of our branding and promotional campaign. We believe we are responsible for the resources that we use in our production process and as such we can’t deploy them. In fact, our multi-pronged approach to reduce water usage across production plants includes innovative reuse and recycling of water. We are also tying up with farmers to save water.

How much are you planning to invest for environmental sustainability?
SAL: PepsiCo Foundation’s commitments to safe water initiatives will reach nearly $15 million in the next three years. The funds will be utilised to address critical water scarcity issues. We will also take up some agri-partnerships projects with farmers. MK: We would also be reaching young women to make them aware of health issues. Our vision is to sell products which are healthy and in the process we will also ensure that we are not deploying any natural resource during the manufacturing process.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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