Download our 2008 Sustainability Report Overview - PepsiCo

WaterPioneering Initiatives to AchievePositive Water BalanceWater is required to make our products so that wemaintain the highest of quality standards for consumers —and water is required to ensure a clean and safe workplacefor our employees and our suppliers. In turn,efficient use of water across our operations is nothingshort of imperative. We are committed to minimizingour global water use through greater efficiency, innovativeprocesses and new technologies.In 2008, we conserved more than 7.5 billion liters of wateras a result of gains in water efficiency from the 2006baseline. And while using water responsibly is a toppriority, we also believe in our ability to help address thebroader challenge of water scarcity and to help avoidwater conflicts in local communities.In India, all industry accounts for about 6% of total wateruse. Within that 6%, the soft drinks and bottled waterindustry accounts for about four-hundredths of 1%.In comparison, agriculture accounts for over 80% of totalfresh water use in the country. To have significant impacton total water conservation, farming must use watermore efficiently. We believe we can play an importantrole in providing solutions.In 2003, our India team embarked on an ambitious journeyto achieve positive water balance — giving back as muchas we take. Through a comprehensive program to conserveand optimize water usage, we have pioneered majorinitiatives by partnering with farmers, working withnumerous rural communities and establishing privatepublicpartnerships with Punjab Agriculture Universityand The Energy Resources Institute (TERI). We havecarried out a variety of innovative reuse and recyclinginitiatives within our own operations; raised farmproductivity, which increased farmers’ incomes; andimproved the quality of life in many communities. Theseinitiatives, among others, will help us make significantprogress toward positive water balance in 2009.In the last five years, our India manufacturing team hasreduced water use by more than 55% and in the lastthree years, we have saved more than 2.5 billion liters ofwater through conservation efforts. We have also preventeddepletion of groundwater aquifers by constructingrainwater harvesting systems in most of our plants.One of the most effective initiatives is our work withfarmers to reduce water intensity in rice cultivationthrough a method called direct seeding. Our India teamhas become a leading proponent of direct seedingof rice (versus transplanting seedlings from nurseries topaddies that are then flooded). While direct seedingof rice is done in some countries, it is not widely practicedin India.In India, PepsiCo has been experimenting with directseeding for four years — testing methods to improve yieldand reduce weed growth and even developing a tractormounteddirect seeding machine, adjustable for seedvariety, planting depth and plant-to-plant spacing.After carrying out initial direct seeding trials at our ownmodel farms, pilot tests have been run in farmers’ fields toconfirm the results. In 2008, direct seeding was extendedto more than 1,000 acres in five states and the initiativesaved close to 1 billion liters of water. In addition tosaving water, it also reduced costs by 1,400 rupees peracre for farmers.Direct seeding will go a long way in enabling our Indiateam to achieve positive water balance for our beveragebusiness by 2009. More important, it has the potentialto dramatically reduce water usage in a country wherewater is an increasingly precious commodity.This single initiative is an example of both climate changemitigation and adaptation. We are mitigating ourimpact on climate change by using significantly lessresources, and helping our farm communities adaptto the changing environment.In India, PepsiCo has been experimenting with direct seeding, one ofthe most effective ways to reduce water use in rice cultivation. Shown hereis a direct seeding machine, adjustable for seed variety, planting depthand plant-to-plant spacing.PepsiCo Corporate Citizenship Report 2008 11