PURCHASE, N.Y., Aug. 3, 2017 /PRNewswire/ -- PepsiCo today
reported continued progress in the company's efforts to strengthen
its palm oil supply chain, including new steps taken to promote
human rights, responsible land use and supplier transparency. These
moves support PepsiCo's previously announced goal for 100 percent
of the palm oil it uses to be sustainably sourced by 2020.
In its annual Palm Oil Action Plan Progress Report, the global
food and beverage company disclosed that 89 percent of the palm oil
it expects to use during 2017 has been traced to the mill level, up
from 65 percent in 2015. PepsiCo has also taken steps to extend
traceability beyond the mill to plantation level across its entire
palm oil supply chain, which it aims to achieve by 2020.
As part of the report, PepsiCo unveiled robust new efforts
designed to improve practices in the palm oil sector. Alongside
advanced traceability protocols, this includes the introduction of
a scorecard that will enable the company to work with certain
direct suppliers of palm oil to improve their performance in areas
such as human rights, deforestation, peat loss and land use
policies. PepsiCo has also formalized its grievance system for
dealing with allegations of inappropriate supplier
conduct. Under this process, reports of non-compliance with
PepsiCo's standards are thoroughly investigated and support is
provided to ensure that the issues are addressed. In instances
where a supplier fails to take sufficient corrective measures, they
can be subject to significant action, as illustrated by a recent
example that involved the removal of a supplier from PepsiCo's
supply chain.
"PepsiCo takes environmental and social issues within the palm
oil industry very seriously, and we are making significant
investments to improve every aspect of our palm oil supply chain,"
said Rob Meyers, Sustainability
Director at PepsiCo. "We have made important progress, achieving
substantially greater visibility into our suppliers' activities and
moving closer to our goal of sustainably sourcing 100 percent of
our palm oil by 2020. PepsiCo is committed to doing much more, and
we believe that the steps we are taking to promote higher standards
among palm suppliers will place us at the forefront of our
industry."
PepsiCo's goal to source 100 percent physically certified
sustainable palm oil by 2020, using the Roundtable for Sustainable
Palm Oil (RSPO) standard, was outlined in its 2015 Palm Oil Action
Plan. This initiative sought to address significant concerns about
the environmental and human rights impacts associated with some
palm oil production. Last year, PepsiCo's plan was evaluated by the
World Wildlife Fund (WWF) in a global ranking of consumer goods
companies, and it received the highest possible score for leading
the way on essential actions on progress on sustainable palm
oil.
Further progress in meeting the objectives of the Action Plan
includes:
- Currently, 16 percent of the palm oil that PepsiCo buys is RSPO
physically certified sustainable. The company expects that figure
to rise to 30 percent by the end of 2017, and it aims to maintain a
similar rate of progress to meet its 100 percent goal by 2020.
- 98 percent of the palm oil that PepsiCo currently uses comes
from suppliers who are RSPO members.
- PepsiCo has begun to invest in the improvement of practices in
key sourcing regions. For example, it is sponsoring the National
Interpretation of the RSPO Principles and Criteria in Mexico and supporting a program that will
provide training on High Conservation Value (HCV) and High Carbon
Stock (HCS) assessments.
"We are pleased to see the progress that PepsiCo has made on the
implementation of their Palm Oil Action Plan, and the level of
transparency demonstrated in this report," said Darrel Webber, Chief Executive Officer of the
Roundtable on Sustainable Palm Oil. "The progress made on the
ground in the plantations and at the mills relies heavily on the
commitment of our membership, sometimes on the other side of the
world, increasing their purchasing of certified sustainable palm
oil for the products that they make or sell. It is paramount that
all actors avoid short-termism while setting time-bound commitments
and working to implement those commitments with urgency. This,
together with reporting on progress transparently, will put us on
the path to a more sustainable palm oil industry, and to more
sustainable communities in the producer nations."
About PepsiCo
PepsiCo products are enjoyed by
consumers one billion times a day in more than 200 countries and
territories around the world. PepsiCo generated approximately
$63 billion in net revenue in 2016,
driven by a complementary food and beverage portfolio that includes
Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's
product portfolio includes a wide range of enjoyable foods and
beverages, including 22 brands that generate more than $1 billion each in estimated annual retail
sales.
At the heart of PepsiCo is Performance with Purpose – our
fundamental belief that the success of our company is inextricably
linked to the sustainability of the world around us. We believe
that continuously improving the products we sell, operating
responsibly to protect our planet and empowering people around the
world is what enables PepsiCo to run a successful global company
that creates long-term value for society and our shareholders. For
more information, visit www.pepsico.com.
Cautionary Statement
Statements in this release that
are "forward-looking statements" are based on currently available
information, operating plans and projections about future events
and trends. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from those predicted in any such forward-looking statement. Such
risks and uncertainties include, but are not limited to: changes in
demand for PepsiCo's products, as a result of changes in consumer
preferences or otherwise; changes in, or failure to comply with,
applicable laws and regulations; imposition or proposed imposition
of new or increased taxes aimed at PepsiCo's products; imposition
of labeling or warning requirements on PepsiCo's products; changes
in laws related to packaging and disposal of PepsiCo's products;
PepsiCo's ability to compete effectively; political conditions,
civil unrest or other developments and risks in the markets where
PepsiCo's products are made, manufactured, distributed or sold; the
ability to protect information systems against, or effectively
respond to, a cybersecurity incident or other disruption; damage to
PepsiCo's reputation or brand image; and other factors that may
adversely affect the price of PepsiCo's publicly traded securities
and financial performance.
For additional information on these and other factors that could
cause PepsiCo's actual results to materially differ from those set
forth herein, please see PepsiCo's filings with the Securities and
Exchange Commission, including its most recent annual report on
Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors
are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they
are made. PepsiCo undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Related Links:
Palm Oil Action Plan Progress Report
Palm Oil: Our Approach and Policy
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SOURCE PepsiCo