Mark Pettigrew Pepsico Profiting from Sustainability Conference York Dec 2014
1. EUROPE
Purpose fuelled Performance
Mark Pettigrew, Agricultural Sustainability Manager Europe
York 2014
CONFIDENTIAL
2. PepsiCo – a business based on agriculture
PepsiCo depends on sustainable agriculture
Over 1 million tonnes of potatoes
32,500 HA
Over 120,000 tonnes of oats
20,000 HA
Over 70,000 tonnes of corn
9,000 HA
Over 7,000 tonnes of peanuts
1,800 HA
Over 30,000 tonnes of apples
1,000 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
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3. 2
9%
reduction
in carbon
14.1% less
energy
(manufacturing)
10.4%
reduction
water
usage
0% waste to
landfill
Lightening our impact
5. Our engagement is based on four key platforms
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New varieties
• 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
6. Low Carbon Farming - UK
• 2010 Baseline – *123 kg CO2e / tonne
• 2013 Crop – *81 kg CO2e / tonne
130
120
110
100
90
80
70
60
50
40
30
20
10
0
2010 2013
Emissions (kg CO2e/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%
“50 in 5” / icrop
7. Transport
1%
Grading, cooling,
and storage
17%
Residue
management
3%
Low Carbon Farming
Seed production
Background soil
N2O
5%
8%
Fertiliser induced
field emissions
22%
Irrigation energy
1%
Field Energy Use
(excluding
irrigation)
15%
Crop protection
products
10%
Fertiliser
manufacture
18%
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 – Strategy
Best way to lower carbon footprint
•Reduce Co2 footprint
•Help reduce global warming
•Resource depletion
•Reduce Supply Risk
•Lower costs
8. We cannot achieve sustainable agriculture alone
Partnership is key to delivering sustainable agriculture
Farmers
Industry
Civil
Society
Consumers
Policymakers
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Drip Irrigation trials Others
NGOs
Scientific
community
Using online data
Satellite images
Fertiliser trials
9. Policy-making can encourage sustainable agriculture
PepsiCo’s policy considerations
• 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
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