PepsiCo Scores 79, Tops its Sector in Dutch Sustainability Analysis

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Keywords: Business & Trade | Corporate Social Responsibility | Pepsico | Report | Sustainability

PepsiCo Scores 79, Tops its Sector in Dutch Sustainability Analysis

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Summary

Analyst Norbert Schmit of the investment advisory firm Financiële Diensten Amsterdam B.V. conducted this analysis of PepsiCo’s sustainability practices. It rates the company’s economic, social and environmental performance to industry peers.

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Friday, November 18, 2011 - 9:00am

PepsiCo's reporting on financial and non-financial issues has become more transparent after its decision to integrate its largest independent bottling groups Pepsi Bottling Group and PepsiAmericas at the start of 2010, which significantly reduces off balance liability risks. Other sustainability risks remain, though. One of the most prominent risk factors in forthcoming years will be related to the way PepsiCo is able to cope with the increased scrutiny of its marketing tactics for unhealthy snacks and beverages, for which evidence is mounting that they increase obesity levels in society. To fend off higher consumption taxes on unhealthy products, PepsiCo has stepped up its lobbying practices in recent years. At the same time, however, PepsiCo is also giving in to increased pressure to act more responsibly. In 2010 it implemented a stricter marketing policy, for example, which will be restricting the company to market unhealthy products to young children and it has increased public disclosure of the potential health risks of overconsumption of its products in combination with sedentary lifestyles. In addition, PepsiCo has invested substantial amounts in extending the product portfolio with healthier food and beverage products, as is reflected for example in the 2010 acquisition of the Russian dairy and juice group Wimm-Bill-Dann. 

To read the report, click here.
 
About PepsiCo 
PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 19 different product lines that generate more than $1 billion in annual retail sales each. Our main businesses -- Quaker, Tropicana, Gatorade, Frito-Lay, and Pepsi Cola -- also make hundreds of other enjoyable foods and beverages that are respected household names throughout the world. With net revenues of approximately $60 billion, PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment, including by conserving energy and water usage, and reducing packaging volume; to provide a great workplace for our associates; and to respect, support, and invest in the local communities where we operate. For more information, please visit 
www.pepsico.com.
 
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