1. 1 Post-Copenhagen: traction & challenge FDIN Post-Copenhagen Andrew Smith Head of Corporate Responsibility PepsiCo UK & Ireland andrew.i.smith@intl.pepsico.com@intl.pepsico.com (+44) 07912 971090

2. The brief from Alan: “The Copenhagen glass; half full or half empty?” “Where is sustainability going…points of traction, points of challenge”

3. 3 Copenhagen – does it matter? Traction & challenge: 1.Operational Efficiency 2.Food waste 3.Embedded carbon / supply chain 4.Carbon reduction label 5.Public health FDIN Post-Copenhagen

4. Who we are

5. 5 COPENHAGEN – Does it matter?

6. Copenhagen matters… The Guardian, yesterday

7. 7 …but consumer interest and pressure is here to stay…

8. 8 …ever increasing scrutiny and transparency… Two of our growers, courtesy of Google Earth

9. ..alongside the impacts of climate change

10. ..which have already begun Walkers potato crops, 2009

11. 11 TRACTION AND CHALLENGE

12. Glass half full or half empty?

13. 13 “Traction” 1. Operational efficiency 2000-2007:2008:

14. 14 Efficiency drivers – people and technology High efficiency heaters Burner replacement programme Thermal imaging to drive upgrades and insulation

15. 15 Progress on absolute carbon emissions too

16. 16 The traction >> the challenge All energy used in PIUK manufacturing and distribution to be from renewable sources within 15 years All energy used in PIUK manufacturing and distribution to be from renewable sources within 15 years Energy To achieve radical carbon reduction, business will need Government to provide the right framework. There is no effective price on carbon, no penalty for the laggards, little reward or predictability for those who invest in solutions” Richard Evans, President PepsiCo UK & Ireland, September 2009 2008: Efficiency versus transformation:

17. 17 “Traction” 2. Food waste 5 UK sites already at zero landfill

18. 18 Huge strides towards zero landfill FROM THIS TO THIS

19. 19 The traction >> the challenge Achieve zero landfill waste across our total supply chain within 10 years Waste Consumer challenges:

20. 20 44% Agriculture 30% Processing – cooking 9% Transport 2%Packaging disposal 15% Packaging supply chain “Traction” 3. Embedded carbon and supply chain Walkers footprint:

21. 21 From alignment to metrics and action ADAS -Sustainable Potato Project KPIs, metrics and improvement plans developed around carbon, water, agrochemical and energy hotspots

22. 22 : “Traction” 4. Carbon reduction label Launched on Walkers in 2007, Quaker in 2009 Our hope: Galvanise our business and suppliers to tackle “hotspots” Empower consumers to make environmentally considered choices

23. 23 : The traction >> the challenge Consumers believe transparency will drive action/reduction: Consumer choice v speed of action required?

24. “Traction” 5. Public health

25. The traction >> the challenge

26. Half full or half empty?

27. 27 Feedback / engagement Andrew Smith Head of Corporate Responsibility PepsiCo UK & Ireland andrew.i.smith@intl.pepsico.com@intl.pepsico.com (+44) 07912 971090