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Responsible & Sustainable Sourcing

PepsiCo
Responsible & Sustainable Sourcing is all about looking at Procurement beyond the traditional aspects of cost, quality and consistent supply - it needs to also prioritize ethical operations, respect for the environment and continuous packaging innovation. Our strategy aggressively addresses these areas.

Our goal is to continuously improve our internal procurement practices by leveraging our talents, programs and policies across the globe to all employees involved in purchasing functions and decisions.

 

In 2010 we released PepsiCo's first-ever Responsible & Sustainable Sourcing Guidelines. The document describes the various principles that drive our supplier relationships by highlighting the many outstanding contributions from PepsiCo people around the globe who work with our suppliers and business partners on major sustainability initiatives. To support our sustainability goals, the Guidelines' distribution will be limited to electronic files. 

 

We address Responsible and Sustainable Sourcing through four major pillars which focus on supplier social responsibility and the protection of human rights (Supplier CSR Assurance), environmental management (Environmental Supplier Outreach), and innovative research & development for ingredients (Sustainable Agriculture) and packaging (Sustainable Packaging). We are also developing the programs and metrics to align these areas with our supplier scorecarding processes, to better acknowledge and incentivize suppliers that are aligned with PepsiCo's Performance with Purpose values - achieving business and financial success while leaving a positive imprint on society.

 

Our four pillars include:

Supplier Corporate Social Responsibility Assurance:
Partnering with our suppliers to operate in a way that respects PepsiCo's values, brands and the communities in which we operate
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Sustainable Packaging:
Optimizing our use of materials and driving to continuously improve the environmental footprint of our packaging
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Environmental Supplier Outreach:
Setting clear, measurable goals for energy, GHG, water, agriculture and forestry resource conservation within the extended supply chain
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Sustainable Agriculture:
Ensuring PepsiCo has continued access to the key agricultural raw materials necessary to supply growing consumer needs, while respecting the environment and communities involved in producing those raw materials
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Supplier Diversity - In addition to the four pillars, an integral part of our mission is a commitment to purchase from a supplier base representative of our employees, consumers, customers and communities. It benefits PepsiCo, our business objectives and our communities.

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