Texan by Nature is excited to recognize PepsiCo, Inc. as a 2023 TxN 20 honoree for their leadership in conservation and sustainability. PepsiCo Inc.’s commitment to conservation, their projects, programs, best practices, and lessons learned are an example and inspiration for us all.

Honoree Industry and Size:  Food and Beverage – Enterprise

Company Overview
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $86 billion in net revenue in 2022, driven by a complementary beverage and convenient foods portfolio that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

What is PepsiCo’s conservation and sustainability mission and why is it important to your culture?
PepsiCo is about creating smiles with every sip and every bite, and our pep+ (PepsiCo Positive) transformation puts sustainability at the heart of our portfolio and our business so we can continue to deliver smiles. pep+ (PepsiCo Positive), is a strategic end-to-end business transformation designed to drive long-term sustainable business performance and value, with sustainability and human capital at the center. We’re charting a new course to drive positive action for the planet and people.

How is conservation and sustainability a part of PepsiCo’s business strategy?
PepsiCo’s complex value chain begins with the sourcing of more than 30 agricultural crops and ingredients from our farmers and suppliers around the world. These crops and ingredients are made into beloved PepsiCo products at more than 1,000 manufacturing facilities, including 291 company-owned facilities. Products are packaged and moved across approximately 1.3 billion miles worldwide by our company-owned fleet — and even more than that through third-party transportation providers — to be sold and enjoyed by our consumers more than one billion times a day. Once the product has been enjoyed, the packaging is generally either collected as waste or recycled for another use. 

We aim to make each stage of our complex value chain more circular and inclusive to help address global challenges such as environmental degradation, social inequality and access to nutritious food. These changes are not only good for our business, but also for the partners and people throughout our value chain, as well as the communities we serve. We are taking bold action aimed to reduce our climate-related impacts, replenish watersheds and minimize water use, innovate more sustainable packaging and recapture packaging materials, but know there are many challenges to overcome.

It is an honor to be named a 2023 TxN 20 Honoree and recognized for our PepsiCo Positive (pep+) commitment to build a more sustainable future for people, the planet, and our business. Texas is a critical hub for our company, with more than 15,000 associates and many of our team’s brilliant sustainability experts calling it home. Without their dedication and hard work, this award and the transformative progress we are making across our value chain simply wouldn’t be possible.

– David Allen, Vice President and Chief Sustainability Officer, PepsiCo Foods North America

What are PepsiCo’s short and long-term goals as they relate to conservation and sustainability?
pep+ is our roadmap for how we operate within planetary boundaries and promote positive change for the planet and people.  We are very clear that pep+ is the future of our company, and we are focused on three interconnected pillars:

• Positive Agriculture: We are working to source our crops and ingredients in ways that restore the earth and strengthen farming communities.
• Positive Value Chain: We are helping to build a circular and inclusive value chain. 
• Positive Choices: We are inspiring people through our brands to make choices that create more smiles for them and the planet. 

Our sustainability reporting suite includes multiple resources available online that explain our approach to help build a more sustainable food system. You can see reporting progress against our pep+ goals here. 

Who at PepsiCo is leading your conservation and sustainability efforts and what are some examples of employee engagement in conservation and sustainability at your company?

A year and a half into this journey, we have put pep+ at the center of virtually everything we do. This focus has driven us to prioritize decisions around regenerative agriculture, reduce added sugars, increase recycled content in our packaging, create circular water systems, advance Diversity, Equity and Inclusion (DE&I) and invest in our communities

Ramon Laguarta, CEO

Transforming the global food system, including the infrastructure and systems that enable it, is critical for PepsiCo – and all of us – to achieve our ambitious goals. We’re proud of the progress we have made and, at the same time, know that there are areas where we have work to do. We’re committed to playing a leadership role and know that with investment, innovative thinking and expanded collaboration we will be able to drive a lasting and meaningful impact for our business, the planet and the people who live on it.

Jim Andrew, PepsiCo Chief Sustainability Officer

The strategic investments we’re making in pep+ will fuel our business to thrive
in the long term and will help us build resilience across our global supply chain, while driving positive action for the planet and people.

Hugh Johnston, Vice chairman and CFO

Todd Squarek, Senior Vice President, Chief Sustainability Officer, PepsiCo Beverages North America
Todd Squarek is Senior Vice President, Chief Sustainability Officer for PepsiCo Beverages North America (PBNA) which includes an iconic portfolio of beverages including Pepsi, Gatorade, bubly, MTN DEW, Starbucks ready-to-drink coffee, LIFEWTR, and Rockstar Energy Drink.  Todd has held many different roles with increasing levels of responsibility over his 18 years at PepsiCo. In his current role as Chief Sustainability Officer, Todd is responsible for Winning With PepsiCo Positive (pep+) in its North American beverage sector. pep+ is PepsiCo’s strategic end-to-end transformation that puts sustainability at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. Prior to this role, Todd served as Senior Vice President and Chief Commercial Officer for PepsiCo Beverages North America where he was responsible for enterprise customer development, commercialization, revenue growth management, allied partner development, go-to-market and industry relations.

Frito-Lay and Quaker products can be found in nearly every pantry across our country. With that privilege we also recognize our responsibility to make, move and sell our products in the most sustainable way possible. PepsiCo Positive is at the core of our business – we’re proud of the progress we’re making on this critical journey.

David Allen, Chief Sustainability Officer, PepsiCo Foods North America 

Green Teams
PepsiCo associates have been instrumental in working toward the company’s pep+ goals through the expansion of Green Teams, a grassroots organization that is dedicated to creating a culture of pep+ by inspiring, empowering and engaging colleagues to make a positive impact at work, at home and in their communities.

What conservation and sustainability programs and projects does PepsiCo lead and participate in?
In Galveston, Texas, PepsiCo has invested $1.2 million in partnership with Texas Water Trade, a nonprofit organization founded to build a future of clean, flowing water for all Texans. This effort underscores an important commitment to scaling investment and impact of water replenishment projects where PepsiCo facilities are located in water scarce areas. The purchased water will support migratory bird habitats and provide a pulse of fresh water into Galveston Bay, providing a haven for blue crabs, shrimp and Rangia clams. This project expects to provide an additional 2,000 acre-feet of water per year for 10 consecutive years that otherwise would not be available for environmental benefit.

Our PepsiCo Beverages North America teams operating in Texas are working to improve operational water use efficiency. In San Antonio, we’ve driven 40% improvement, operating below 1.2 gal/gal as a high-water risk location. Our team approaches resource conservation holistically through capital projects, process optimization tactics, and tools that build capability for our front-line and that includes water use efficiency projects in Mesquite as well. 

How do you see the future of conservation and sustainability evolving, and what role will PepsiCo play in that progress?                                                                                                                                                          There are places where there is more work to do – especially when it comes to reducing the amount of virgin plastic in packaging and the emissions in our value chain. Success in both these critical areas is, in part, dependent upon the structure and efficacy of the systems within which we operate. This is why we are working with many others to advocate for regulatory reform and to drive big picture changes in the global food system. 

We will continue to invest behind public-private partnerships, to bring all our partners and suppliers along on the journey and to work with other industry players, governments, NGOs, start-ups and consumer organizations to identify solutions.

What is the one lesson that PepsiCo has learned from your conservation and sustainability efforts that others can take back and think about applying within their own space?                                                          Sustainability is the ultimate team sport and we know that systemic problems require systemic solutions. It is clearer than ever that organizations like PepsiCo and our partners need to take bold steps to catalyze positive change and bring about a stronger, more sustainable future for us all. While we’ve made great progress, we know there’s even more to be done and that we can’t do it alone. Partnership is more important than ever before, and we’ll continue to work with our peers, governments, NGOs, and the communities where we operate, leveraging all the tools at our disposal to advance progress.

Why is Texas an important home or base of operations for PepsiCo?
PepsiCo has a deep-rooted history and commitment to the Lonestar State. In addition to being the birthplace of Frito-Lay more than 60 years ago, it also serves as the headquarters for our $26 billion PepsiCo Foods North America business. From Amarillo to Laredo, and Odessa to Tyler, we are proud to produce America’s favorite beverages and snacks in nearly every major market, city, and corner of the state.

Learn more about PepsiCo’s conservation and sustainability efforts here.