Q. Peter Madden: This is your first report. Is environmental sustainability only now becoming more important for PepsiCo UK? And is it really core to your business?
A. Salman Amin: Our business has always relied on a vibrant society and healthy planet to grow and meet the needs of our consumers, now and in the future. Extreme weather conditions, crop failures and increased commodity prices are already affecting our bottom line - so we know the challenge is real, and here now. The business decisions we take need to address the real challenges of climate change, such as resource depletion and water shortages - and move our business towards replenishing the planet.
Q. So how does your vision for PIUK fit with the vision for the rest of the business globally?
A. Our commitments and pledges fit closely with the PepsiCo global vision, that Performance - achieving financial results - should be combined with Purpose - improving people's lives. By fully understanding our own impact on the environment, we can find better ways to conserve and replenish the planet's natural resources. We are piloting initiatives, for example our work on supply chain carbon reduction, to share lessons with PepsiCo globally and with our other partners.
Q. Your targets and progress on climate change and resource depletion are admirable. But how do you intend to tackle the fundamental challenge of growing a business whilst reducing your overall emissions and natural resource demands?
A. Economic growth has in the past been directly linked to our increasing use of energy and natural resources. To tackle the global environmental challenges we face, that will have to change. We, and others, need to commit to renewable energy, improved agricultural practices, less intensive packaging materials, and identifying other transformational ways of doing business. We need to find a way to separate developing great new products and growing the business from an ever-increasing burden on the natural world. We have already begun the journey, and this report sets out some of the milestones we will achieve on the way.
Q. For a brand that is so linked to soft drinks, tackling water scarcity issues is critical. Your current focus is on reducing water use in manufacturing, do you think there are bigger water challenges you should be championing?
A. Reducing the water we use to make our products is important, but our research into several of our supply chains has identified water 'hot spots' at different stages. Agriculture seems to be a large water user, so how rainfall and irrigation are used is critical. This is an international challenge, and we are working with PepsiCo's global agriculture teams to address it. In fact, we are already taking part in a number of pilot schemes to understand how to 'get more crop for each drop'. In the longer term, reducing our products' water footprint will be a key focus globally.
Q. For many the key sustainability impact of a snackfoods business is not environmental but linked to health and well being and the growing obesity crisis. How do you approach that, and why is environment separated?
A. We know that the growth in obesity rates, and the poor diets of some people in our communities, are real problems, affecting all of society. We know we have an important role to play in finding solutions. We have a clear strategy on health and well being - to transform our portfolio through developing new products and reformulating existing products to make them healthier, to buy new businesses making healthier products, to provide clear information to consumers, and to develop partnerships with community health experts. We will publish a report outlining our understanding of the health and wellbeing challenges, our progress and future goals, as well as any relationship between meeting our health and wellbeing objectives and other sustainability challenges.
Q. Over the coming year, in what areas will PIUK really lead the agenda and create change across the whole industry?
A. We hope to continue to lead by example - through engaging our supply chains and developing structured approaches to reducing carbon together, building on our innovative work with the Carbon Trust and Carbon Disclosure Project. We also want to work with suppliers and growers to improve our agricultural practices, including adapting to climate change, and share these lessons far and wide. Lastly, we want to continue to develop and roll out carbon labelling and ensure that we help consumers become more environmentally aware.
