General Motors Dealer Facilities Bill Hepburn & Gary Laundroche

Example: LaFontaine Buick – Pontiac - GMC – Cadillac Located in Highland, Michigan 63,000 SF facility Pursuing a LEED “Gold” certification. Would be one of the first Gold certified dealerships in USA Dealers are independent businesses.

Short Term Goals Assist our dealers: Reduce energy use & cost Develop a competitive advantage in the market place Market & sell vehicles to environmentally conscious consumers Expect an increase in sales Improve image in the community Part of solution – Not part of the problem Stimulate local economies with regional materials “Do the right thing”

Long Term Goals Assist our dealers: Reduce negative impact on the environment Reduce long term lifecycle cost Reduce the impact of spikes in energy cost Help the local community Be a good corporate citizen

Barriers to Success Decision to go for LEED certification made too late in process Project team including Architect, Contractors and Suppliers lacked LEED knowledge and experience at onset of project Steep learning curve & sub education needed Additional coordination efforts needed General perception cost of construction would be considerably higher Industry executives recently estimated 13-18%* incremental cost Perception more difficult to build General belief LEED is cost prohibitive * As reported by Market Barometer, Turner Construction

Business Case for Sustainability Economic Benefits: Reduced utility cost 2-30 %* Improved employee productivity 2-16%* Reduce total lifecycle cost over 20 years** Sales & marketing benefits Tax deductions & energy credits Health & Community Benefits Easier community permitting & less red tape in some cases Environmental Benefits * As reported by US Green Building Council (USGBC) ** As reported “The Cost of Green Revisited” Davis Langdon, July 2007

Best Practices & Lessons Learned Make decision to go for LEED certification early in process Before site selection Assemble a team of LEED accredited professionals with experience in designing & building “Green” buildings LEED is about more than “Green” – it’s about sustainability for generations to come

Sustainability at PepsiCo Tim Carey

Profile of PepsiCo Global Food and Beverage Company Over $35 Billion in Revenue, more than $6 Billion in Profit 17 billion-dollar brands Major Operating Sectors PepsiCo Americas Foods (Frito Lay, Quaker Foods and Snacks) PepsiCo Americas Beverages (Pepsi Cola, Gatorade, Tropicana) PepsiCo International

Our Evolution Integration Social Environmental Phase I – Environmental: Reduce environmental impact by improving PepsiCo’s operational effectiveness and eco-efficiency Strengthen corporate environmental governance mechanisms Enhance external communications and transparency Phase II – Social: Through engagement, address key social issues local and global. AIDS/HIV, child labor, safety Phase III – Integration: Full integration of the three legs of sustainability into all decision making Phase 3 Phase 2 Phase 1 Integration Maturity Social Environmental 1990s 2000 2010

Environmental Platforms Resource Conservation 2010 Goals = 30% reduction over 2004 To date savings: PepsiCo-Chicago -- 1 billion gallons water -- 520,000 equivalent bbl’s of oil -- 386 million KWHs Energy and Water Technology Development - Faster product lines - On-Site Bottle Delivery - Waterless Rinsing World Class Conservation Largest LEED Bev Sites in World Largest Energy Credits in World Energy Star “Partner of Year” (4) LEED Sites - Facility Efficiency - Process Innovation - Sustainability Education

LEED Certification Future Future Blue Ridge Gatorade Plant, 2nd Largest Food /Beverage LEED Site in the World – LEED Gold – April 2007 Future PepsiCo Chicago Headquarters will be the first PepsiCo office to achieve LEED Certification – JUL’08 Future Tolleson, AZ Gatorade Plant LEED GOLD – AUG’07 Pryor, OK Gatorade Plant, Largest Food/Beverage LEED site in the World – April 2008 -- LEED GOLD Central Florida Gatorade DC LEED GOLD – ca 2009

Example Projects – Facilities Photovoltaics—Fullerton Warehouse Capture Sun’s energy  convert to electricity Warehouse will be off-grid during peak hours (11AM to 3PM) Start-up May 2008 Target savings ~1,000 barrels of oil/year

Example Projects – Manufacturing Nearly 63mm Gallons of Juice Storage Tropicana Unit Train backhaul program Modified storage and transportation methods Significant decrease in operating costs Reduced electrical consumption Reduced waste water discharge and treatment costs Significantly reduced GHG emissions