PepsiCo announced that by 2030 the project will PepsiCo + plans to implement sustainable farming practices on nearly 3 million hectares used by the company’s suppliers. Thanks to these measures, the company plans to reduce carbon dioxide emissions by at least 3 million tons in 10 years. PepsiCo will also purchase 100% of agricultural raw materials only from responsible sources, and also pledges to support more than 250 thousand people employed in the agricultural sector. all over the world.
PepsiCo’s Positive Agriculture program is about growing the ingredients the company needs in a way that accelerates the adoption of so-called “regenerative agriculture” practices that are environmentally friendly and at the same time contribute to a better life for farmers. The main directions of the program include the implementation of sustainable farming practices on 3 million hectares, that is, almost 100% of the land used by the company’s suppliers for growing raw materials.
This initiative will reduce carbon dioxide emissions by 3 million tons by 2030. After 10 years of successfully adopting sustainable farming practices with partners, PepsiCo will continue to work with growers in 60 countries to ensure conservation.
PepsiCo is the largest industrial processor of potatoes and raw milk in Russia. Among the Russian suppliers of raw materials, the company promotes the practice of regenerative agriculture aimed at respecting the soil (for example, by changing the crop rotation), using “green” fertilizers. The company is researching and implementing the intelligent CropTrack irrigation management solution in potato farms to conserve water resources. The company is developing similar practices in Ukraine, where in 2019 a program was launched to work with potato suppliers to localize the raw material base for a new snack production in the country.
Investments in modern vegetable storage facilities in Russia and Ukraine allow the implementation of technological solutions that reduce the carbon footprint from storage operations and minimize the cost of natural resources. A new warehouse for storing raw materials, which will open in 2021 in Novosibirsk, will be built in accordance with this principle.
The company works with suppliers to improve the quality and efficiency of raw milk production, which helps to reduce greenhouse gas emissions associated with dairy farming. By 2030, PepsiCo in Russia plans to reduce its greenhouse gas emissions by 40% compared to 2015 levels.
Support for more than 250 thousand people employed in the agricultural sector, including employment and employment programs for women. PepsiCo plans to help the most vulnerable categories.
In Russia, the company also continues a program of training and seminars for raw milk suppliers, which was launched in 2012 to support Russian agricultural producers. In 2020, the company held 20 trainings, in which more than 600 people took part, and in total during the existence of the program, about 5 thousand specialists have become participants.
PepsiCo continues to invest in Russian suppliers of potato chips and develop its raw material base throughout the country. In 2020, the company launched an agricultural program in Siberia. The development of Russian potato suppliers is the company’s contribution to supporting the Russian agricultural sector. Potato farms – the company’s partners not only successfully expand their business, but also develop the regions of their presence through the implementation of important social projects. In just 15 years, the company has invested more than $ 50 million in the Agroindustry Leaders Supplier Development Program.
In Ukraine, as part of the Supplier Support Program launched in 2019, PepsiCo conducted 10 trainings for farm specialists on growing, maintaining and storing crops.
Sourcing 100% agricultural raw materials only from responsible sources – this will include not only direct purchases of key ingredients such as potatoes, corn, grains and oranges, but also key ingredients sourced from the market, such as vegetable oils. This is already being implemented in Europe, including Russia, Ukraine and Hungary, where PepsiCo is helping to implement sustainability practices with sunflower oil suppliers. This is expected to help increase crop yields, reduce resource costs, improve soil health and thus reduce environmental impact.
PepsiCo buys agricultural products in 60 countries, and thanks to the company’s activities in the global agriculture there are about 100 thousand jobs. As of the end of 2020, the company achieved 100% direct purchases of agricultural products from responsible sources in 28 countries. Globally, this figure has reached 87%.
In Russia, 100% of raw materials for the production of potato chips are certified under the sustainable farming program. All suppliers fully comply with the company’s requirements for social, environmental and economic criteria. Social criteria imply the creation of safe working conditions, maintaining the health of employees of agricultural enterprises, protecting the rights of workers and improving the quality of life of local communities. Environmental criteria include measures to conserve natural resources and minimize waste from economic activities. Economic criteria imply effective planning of the activities of agricultural enterprises, increasing their productivity, minimizing losses and establishing stable and mutually beneficial relationships with all participants in the process.
“It is important for us that climate change does not jeopardize the supply of raw materials to our production facilities, and the cultivation of crops does not harm the environment. We can achieve this if we join forces and focus on the quality transformation of agriculture, ”said Silviu Popovic, Chief Executive Officer of PepsiCo Europe. “We will continue to work closely with farmers, our suppliers, and accelerate the implementation of regenerative practices to become the standard for farmers. Finally, the time has come for the digital revolution on farms, when big data will play as important a role as agricultural machinery, and technology will ensure sustainable growth. ”
PepsiCo is committed to implementing standards for regenerative agriculture. In their absence, the company will track the implementation of sustainable farming commitments on a number of parameters, such as the number of hectares cultivated responsibly and the number of farmers involved in the program. Over time, these will be supplemented by such indicators as improving the condition and fertility of soils, reducing carbon dioxide emissions, improving the condition of water bodies used for irrigation, increasing biodiversity, and improving the lives of farmers. PepsiCo is working with international organizations such as WWF to develop water method and metrics that take into account regenerative agriculture and sustainable farming practices and best water conservation practices.
The Sustainable Agriculture Commitment is the next step in the PepsiCo + program following the recent ads on plans to reduce carbon dioxide emissions across the entire supply chain by 40% by 2030 and achieve full carbon neutrality by 2040.
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