Download our 2008 Sustainability Report Overview - PepsiCo

Dear Fellow Stakeholders,Every day, PepsiCo earns its license to operate in the thousandsof communities we serve.As one of the world’s largest food and beverage companies,we have some distinct responsibilities. We have a responsibilityto support economic development, to improve our environmentalfootprint and to help work toward solutions to issuessuch as obesity and undernourishment. This report, calledPerformance with Purpose: Creating a Better Tomorrow forFuture Generations, captures the progress we have madethus far, and provides a map of where we intend to go.Performance with Purpose is fundamental to our overallsuccess. There’s no question that these are challengingtimes. Like many companies, we’re facing headwinds suchas rising costs, an uncertain economic outlook and shiftingcurrency exchange rates. While we can’t control macroeconomictrends, we must adapt to the near-term challengesto deliver on our long-term growth plans.But this cannot be an excuse to reduce our commitment toresponsible business. Indeed, financial performance can andmust go hand in hand with sustainability. Our performance andour purpose are not separate — each is knitted inextricablywith the other. That relationship can be seen in the three areasthat together comprise Performance with Purpose: Human,Environmental and Talent sustainability. These focus areaswill guide the way we do business. They will continue to beshaped in dialogue with key stakeholders. In this way, weintend to maintain our long-term commitment to the overallsustainability of our company.Human SustainabilityThe world today faces many public health challenges and,as a responsible company, we recognize our part in helpingto improve the well-being of populations in both developedand developing countries.Our aim is to nourish consumers by developing productsthat satisfy the consumer’s changing preferences and thatdeliver exceptional taste and convenience. Increasingly, ourproduct portfolio makes it more enjoyable to lead a healthylife. We’re changing because our consumer is changingand because the health of the world’s growing populationdemands it.To meet this demand, we’ve appointed new leaders to ourglobal R&D team, including world-renowned clinical scientists.We have increased our R&D investment and dramaticallyexpanded our capabilities. We have accelerated our innovationpipeline, acquired companies to extend our offerings of morenutritious products and actively cultivated partnerships toguide our work. We will use our influence to drive positivechange in the food industry.Environmental SustainabilityAs a responsible company, we seek to continually driveenvironmental sustainability by abiding by applicable lawsand regulations and, in certain instances where we believethe requirements may not be sufficiently advanced, weapply higher standards.Recently, Bureau Veritas issued independent verification ofour environmental data. We will continue to audit our performance,share our progress and actively lead and engagein private-public partnerships to spur action and solutionsto address the world’s environmental issues.But we want to go further than that. We have focused ourenvironmental sustainability efforts on the areas where,because of our expertise, we can have the most impact:water, climate change, agriculture and packaging. We areworking hard to minimize our water footprint and improvepublic access to clean water through alliances with nonprofitgroups such as The Earth Institute and Water.org. We areintent on mitigating climate change and continuing ourefforts to reduce greenhouse gas emissions. After more thana decade of action, we continue to form partnershipswith key stakeholders such as the Carbon Trust to provideus with additional insights, expertise and knowledge.Talent SustainabilityBy valuing our employees, we are ensuring that PepsiCois the kind of company where talented people of all backgroundswant to work.We recognize our responsibility to take care of our employeesand their families, especially during this global economicdownturn. We remain committed to providing opportunitiesfor our associates to acquire new skills, grow professionallyand share in our company’s success. Our dedication toworkplace safety is unwavering, and we offer health carebenefits and wellness programs that enable our employeesto live healthier lives.We foster an inclusive workplace by increasing female andminority representation in management ranks, creatingrewarding opportunities for people with disabilities andrecognizing our employees for their contributions.We are extending our human rights standards throughoutour operations and encourage our suppliers andagricultural partners to uphold our commitment tosustainable development.ConclusionI believe our Performance with Purpose mission definesour roles and responsibilities very clearly. It motivates our198,000 employees to be leaders in social responsibilityand helps each of us create a better tomorrow for futuregenerations. We look forward to sharing our progress andI look forward to your feedback. I encourage you to shareyour comments on our corporate citizenship report atPerformanceWithPurpose@pepsico.com.Indra K. NooyiChairman and Chief Executive Officer