SustainCase: How PepsiCo innovates its packaging to make it increasingly sustainable, minimizing PepsiCo’s impact on the environment

Case study: How PepsiCo innovates its packaging to make it increasingly sustainable, minimizing PepsiCo’s impact on the environment


According to the U.S. EPA, in most parts of the developed world, packaging constitutes as much as one-third of the nonindustrial solid waste stream. As consumption increases with higher living standards, more countries are seeing significant growth in their packaging waste. While most packaging is recyclable, recycling rates remain lower than expected.


Abstract


Packaging materials represent a significant portion of PepsiCo’s supply chain spend. Reducing the amount of packaging used for PepsiCo products both helps to reduce the amount of waste sent to landfills and reduces costs for the company. PepsiCo is also constantly working to design more recyclable packaging to increase recycling rates globally. After measuring and setting targets, PepsiCo took action to reduce its packaging – in 2014, PepsiCo eliminated over 11 million pounds of film packaging and over 29 million pounds of corrugated packaging from its global food and snacks packaging, delivering a combined cost savings of nearly $20 million –, increase the recycled content and recyclability of PepsiCo’s packaging – PepsiCo is the only major beverage company consistently using recycled polyethylene terephthalate (rPET) in its containers in the U.S. – and, also, help consumers to recycle.


Using the GRI Standards in order to maintain and increase the value of your company


With each publication in this series the FBRH team will highlight one key impact identified by a company reporting in accordance with the GRI Standards and show how it has taken a structured, systematic approach to improving performance. With such positive action companies build trust, by dealing responsibly and conscientiously with their impact on the environment and on their stakeholders (e.g. clients, suppliers, shareholders, local communities, NGOs or local government). Stakeholders that can hold it back or stop it from reaching its objectives


By building trust your company creates loyalty and long-term commitment to its services and brands