PepsiCo slashes costs along with carbon

By Lorraine Heller

- Last updated on GMT

Related tags United states environmental protection agency

PepsiCo’s energy efficiency initiatives have resulted in a massive reduction in greenhouse gas emissions, and slashed the firm’s costs by $90m last year alone.

The drinks and snacks giant, which has worked on energy efficiency for the past decade, will later this month receive an award from the US Environmental Protection Agency (EPA) for its achievements in the field.

The Energy Star Sustained Excellence Award, to be presented in a ceremony in Washington, DC on March 31 2009, comes after the firm improved its energy efficiency for its US operations by nearly 30 percent as a result of its resource conservation program over more than 10 years.

The Energy Star program aims to promote a more energy efficient future, counting many leading firms and organizations amongst its 12,000 participants.

Performance with Purpose

With the increased global focus on sustainability and carbon footprints, the food industry has had no choice but to step up to the game. Indeed, energy efficiency activities are now emerging as an expectation rather than an option.

PepsiCo said its mission to reduce energy consumption is part of its commitment to sustainable growth, which it terms ‘Performance with Purpose’.

The firm has pledged to reduce water consumption by 20 percent, reduce electricity consumption by 20 percent, and reduce fuels consumption by 25 percent per unit of production by 2015 as compared to 2006 consumption.

In 2008 alone, PepsiCo said it reduced energy costs by $90m and cut greenhouse gas emissions by over 575,000 metric tons.

Kathleen Hogan, director of the Climate Protection Partnerships Division at the US EPA said: "PepsiCo's leadership on energy efficiency has yielded impressive results for their bottom line and our global environment, showing us all what can be accomplished through sustained commitment and action."

PepsiCo’s director of Energy & Utilities Rob Schasel said it is using its participation with the Energy Star program to also encourage its business partners to implement energy conservation programs in their operations.

"PepsiCo's Resource Conservation Outreach Program has made tools and expertise available to our contract manufacturers, franchise bottlers, and other key suppliers through dedicated PepsiCo resources,”​ he said.

“Our years of partnership with Energy Star demonstrate our strong commitment to preserving the environment through energy efficiency. We view our Energy Star partnership as a key way to fight climate change."

According to EPA, the Energy Star program last year resulted in overall savings of $19bn on energy bills for Americans, reducing greenhouse gas emissions equivalent to those of 29 million vehicles.

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