CAN BUSINESS—AND SOCIETY—FLOURISH
WITHIN OUR PLANETARY BOUNDARIES?
Dan Bena
Head
Global Sustainable Development
PepsiCo, Inc.
―THE POWER OF
POPULATION IS SO
SUPERIOR TO THE
POWER IN THE EARTH
TO PRODUCE
SUBSISTENCE FOR
MAN[KIND]….‖
--THOMAS ROBERT MALTHUS
An Essay on the Principle of Population (1798)
―END HUNGER,
DOUBLE FOOD
PRODUCTION BY
2050…AND
DRASTICALLY
REDUCE…DAMAGE TO
THE ENVIRONMENT.‖
Scientific American (Nov 2011)
--JONATHAN A. FOLEY
IF THESE GLOBAL REALITIES
AREN’T ENOUGH….
LET’S TALK ABOUT RISK….
STILL WANT MORE???
FOR THE GLOBALLY
CONSCIOUS CONSUMER,
ENVIRONMENT AND FOOD
SECURITY AREAS TOP THE
LIST OF IMPORTANT CAUSES
FOR COMPANIES TO SUPPORT
WHEN GIVEN ONE
CHOICE FOR HOW
COMPANIES
SHOULD CHANGE,
GLOBAL
CONSUMERS SAY
THEY SHOULD
SOURCE
MATERIALS MORE
RESPONSIBLY
10,287 consumers in US, Canada, Brazil, UK, India, Germany, France, Russia, China, Japan
IF YOU STILL HAVEN’T HAD ENOUGH….
CONSIDER THE
SCRUTINIZING
EYE OF
EXTERNAL
ORGANIZATIONS
WHO TRY TO
PROVIDE
VISIBILITY INTO
SUPPLY CHAINS
HOW IS PEPSICO GRAPPLING WITH
THESE CHALLENGES, AND SEIZING
OPPORTUNITIES?
OUR CHAIR AND CEO SAYS IT BEST
PERFORMANCE
6/10 top raw
materials
from plants
Population
growth
stressing
supply
Climate
change
exacerbates
supply
Nutrition
crises & strategy will
risk
increase
diversity of
crops
sourced
Volatile
―Ag-flation‖
becoming
the norm
Growth
markets are
agriculturally
challenged
AND
A
G
R
I
C
U
L
T
U
R
E
PURPOSE
Agro is primary
driver of our
ecofootprint
Business
strategy reliant
on nutritionally
advantaged
raw materials
Social &
Economic
welfare on
farms under
great scrutiny
Consumers’ &
Customers’
expectations
require
improvements
WE HAVE MADE PUBLIC COMMITMENTS
OUR AGRICULTURE AGENDA IS MANAGED AROUND FOUR
CORE WORK AREAS
Sustainable Agriculture
Sustainability policies and practices to improve farming capability & compliance
Agricultural Sciences
• Plant breeding – proprietary varieties
• Climate forecasting – Columbia University partnership
Agricultural Practices
• Optimized water management practices – drip irrigation
• Storage and waste management
Sourcing &
Supply
• Least cost and localized sourcing
• New Country start-up
Agro Talent
• Specialist Agro technical expertise
• Local talent to service the growth agenda
SUSTAINABLE AGRICULTURE provides the global FRAMEWORK within
which all of agriculture MUST OPERATE
THE SUSTAINABLE FARMING INITIATIVE (SFI) PROVIDES THE
―WHOLE FARM‖ FRAMEWORK--AN INTEGRATED AGENDA
Designed to have:
Engage
Measure
Continuously improve
•
Broad applicability across Industry
•
Adaptable for all size of grower, in developed or
developing countries
•
Based on continuous improvement against a
measured baseline
•
Accommodates different levels of agriculture
maturity in country
•
Incorporates self-verification, but works with
accepted Industry certification codes
SFI SITS ALONG A CONSISTENT SPECTRUM OF GOVERNANCE AND
COMMUNICATION WITH THE SUPPLIER
POLICY
CODE OF
CONDUCT
SFI
THE SUSTAINABLE FARMING INITIATIVE (SFI) PROVIDES THE
FRAMEWORK TO MANAGE SUSTAINABLE AGRICULTURE AT THE
FARM LEVEL
Environmental
Social
Economic
•
3 Pillars
•
17 Indicators
•
149 Criteria
•
503 Question Sets
•
Structure for tools,
metrics and solution
sets to demonstrate
continuous
improvement
―IF YOU TREASURE IT,
YOU’LL MEASURE IT!‖
―YOU CANNOT MANAGE
WHAT YOU DO NOT
MEASURE!‖
IN CLOSING, FOR BUSINESS AND
SOCIETY TO FLOURISH WITHIN OUR
PLANETARY BOUNDARIES, WHAT’S
NEEDED?
Investments in Real Solutions
Incentives for Farmers
International Dialog
Everyone at the Table
Supportive Policies
Willingness to Tackle the Tough Questions
―Big Conversation‖
Precision Agriculture
New Crop Varieties
Drip Irrigation
The Right Metrics
Verification
Smarter Diets
Better Tillage
Collaboration, Imagination, Determination