PSI: PepsiCo’s Global Resilience Growth Strategy

pepsico

By: Tim Hill, GAIN

The Global Adaptation Institute (GAIN) is featuring a five-part series on GAIN.org dissecting the United Nation’s Private Sector Initiative, as well as zooming-in on private sector best practices in adaptation. Read other articles to learn more about water, food & agriculture, coastal protection and energy companies who have found business opportunities in building global resilience, HERE.

India grows approximately 130 million tons of rice across approximately 108 million acres annually.

PepsiCo, India’s largest food and beverage company, understands the importance of agriculture and safeguarding crops. Several challenges can effect a farmer’s yield as well as the demand for that crop including climate change, urbanization, population shifts, natural resource supply levels and more. Shifting weather and rain patterns can also put a strain on crops, which leads directly to the supply chains of companies working and living in the area.

PepsiCo has helped growers take steps to reduce vulnerability in three areas: puddling, transplanting and standing water. Its Research and Development team used innovative technology and research to develop a direct seeding machine and piloted the project on approximately 10,000 acres in 2010. This groundbreaking new procedure for these rural farmers saved more than 1.85 billion gallons of water. In addition, the pilot eliminated the need for base water through direct seeding and reduced the greenhouse emissions by 70 percent.

Additionally, the PepsiCo Foundation has partnered with Water.org to develop WaterCredit, a market-driven model. The purpose of this model is to provide micro-loans to families throughout India with the hope of enabling approximately 800,000 people to access safe water by March 2016. 

PepsiCo operations are centered around protecting its raw material inputs and long-term business sustainability in water-scarce regions, especially those where climate change is expected to exacerbate existing water stress.

-PepsiCo

This global company is focused on sustainable operations by protecting the lives and livelihoods of its employees, the communities it works and building a more resilient supply chain.  

The private sector is incrementally extending outreach and understanding of the urgent need to adapt to global challenges, but more investment is needed. Companies must look to the future and determine best practices that protect people and livelihoods as well as offer opportunities in business. Thanks to Unilever for making an impact on communities and sharing adaptation efforts on the U.N.’s Private Sector Initiative.

Visit the Private Sector Initiative on the United Nations website, or by clicking HERE. Return to GAIN.org throughout this week to learn more about PSI and participating organizations.