Mark Pettigrew Pepsico Profiting from Sustainability Conference York Dec 2014

EUROPE

York 2014CONFIDENTIAL

Purpose fuelled PerformanceMark Pettigrew, Agricultural Sustainability Manager Europe

1PepsiCo Confidential

PepsiCo – a business based on agriculture

PepsiCo depends on sustainable agriculture

Over 1 million tonnes of potatoes32,500 HA

Over 120,000 tonnes of oats20,000 HA

Over 70,000 tonnes of corn9,000 HA

Over 7,000 tonnes of peanuts 1,800 HA

Over 30,000 tonnes of apples1,000 HA

• High quality crops are essential for our business

• Severe weather conditions due to climate change are impacting the security of our supplies

• The sourcing of ingredients is dependent on the availability of natural resources such as water

2

9% reduction in carbon

14.1% less energy

(manufacturing)

10.4% reduction

water usage

0% waste to landfill

Lightening our impact

3

Sustainable agriculture


New varieties

Our engagement is based on four key platforms

• Better yields

• Better quality

Precision Agronomy Modified Agronomy Low Carbon Farming

• More efficient use of resources

• Accurate prediction of crop availability

• Use of organic fertilizers

• Use of innovative irrigation systems

• Collaborative ICT projects to measure, monitor and reduce GHG emissions

• 2010 Baseline – *123 kg CO2e / tonne

• 2013 Crop – *81 kg CO2e / tonne

0

10

20

30

40

50

60

70

80

90

100

110

120

130

2010 2013

Em

issio

ns (

kg

CO

2e/t

)

Source Verified

reduction

from 2010

Total CFT return 34%

Fertiliser manufacture 19%

Storage energy 8%

Fertiliser application 5%

Other 2%

Green energy tariff 7%

Low Carbon Farming - UK

“50 in 5” / icrop

Transport

1%

Grading, cooling,

and storage

17%

Residue

management

3%

Background soil

N2O

5%

Fertiliser induced

field emissions

22%

Irrigation energy

1%

Field Energy Use

(excluding

irrigation)

15%

Crop protection

products

10%

Fertiliser

manufacture

18%

Seed production

8%

Optimise

•Soil Testing

•Variety Specific Agronomy

•Response Curves

Abated

•Big Impact

•Available

•Practical

Organic

•Holland

•Big Impact

•Naturalis

•Needs Validation

Advantaged

•Greater accuracy

•Conventional & Organic

•Precision Agriculture

•Sensors / satellite

Fertiliser – StrategyBest way to lower carbon footprint

Low Carbon Farming

•Reduce Co2 footprint•Help reduce global warming•Resource depletion•Reduce Supply Risk•Lower costs


We cannot achieve sustainable agriculture alone

Partnership is key to delivering sustainable agriculture

Farmers

Industry

Civil Society

Consumers

Policymakers

NGOs

Scientific community

OthersDrip Irrigation trials

Using online data

Satellite images

Fertiliser trials

PepsiCo’s policy considerations

8PepsiCo Confidential 8

Policy-making can encourage sustainable agriculture

• Food sustainability needs to start at farm level to achieve an overall

sustainability of the entire food chain

• To achieve a sustainable food chain, all actors need to be engaged

• Innovation is key to achieving sustainable food production

• Limiting food waste is an important part to achieving food security

• Discuss what producing more with less can mean for the entire food

supply chain

• PepsiCo supports EU policies that encourage sustainable farming


Thank you!