Compelled to action: 5 sustainability trends impacting food retail

March 25, 2021 by  
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Compelled to action: 5 sustainability trends impacting food retail Heather Putnam Thu, 03/25/2021 – 01:30 Authors’ note: Ratio Institute taps Presidio Graduate School ’s students and alumni for sustainability research in the food industry. Through our partnership, we’re able to communicate to a broader audience about best practices in engaging with the food industry around sustainability.  Food retailers — supermarkets, neighborhood grocery stores and convenience stores — are the nexus of food production, distribution and consumption, bringing together the most pressing issues in our food system. They also have the most potential to drive changes for a more sustainable future. The food retail industry has remained behind in adapting to the realities of doing business in the era of climate change and rapidly changing consumer preferences. At the Ratio Institute, we’re dedicated to accelerating measurable sustainability and viability in food retail and have worked with more than 1,000 grocery stores and 20 grocery chains to create store-level and enterprise sustainability solutions that reduce costs, shift internal cultures and improve overall performance.  COVID-19 has revealed weaknesses in our food supply chain, made consumers more aware of issues in the supply chain and changed the way customers use grocery stores. The pandemic meant many consumers reportedly changed how they shopped for food in 2020 : 40 percent shopped at fewer stores; 28 percent shopped more online; and a full 10 percent stopped going to stores altogether, according to data from the Food Industry Association. Food retail responded with accelerated innovation in parts of the business including online shopping and grocery delivery , the check-out process and product offerings. But the industry has been notoriously slow to innovate in response to other sustainability trends that affect its business. Below are five major trends that should compel food retailers to take more aggressive action to adapt to a shifting world. 1. Increasing public awareness and regulatory requirements regarding climate change The public is savvy about the impact of climate change on our planet, and consumer buying habits are aligning with this increased awareness. In line with this trend, evolving regulatory requirements meant to mitigate the impact of operations on climate change directly impact food retail. Primary to this regulatory drive are refrigerants. Traditional refrigerants including hydrofluorocarbons (HFCs) have been recognized for decades as contributing thousands of times more greenhouse gas emissions than carbon dioxide. Now, federal government regulations and 17 states have enacted or are enacting laws aimed at eliminating HFCs. Food retailers must get ahead of the regulatory curve and develop a strategy to phase out HFCs. Converting refrigeration systems to natural refrigerants including ammonia and carbon dioxide is a proven strategy to reduce the carbon footprint of retail refrigeration systems. The retail group ALDI Sud has converted to transcritical refrigeration systems in 1,496 stores across Europe, the U.S. and Australia, providing a roadmap for the rest of the industry to follow suit. The food retail industry has been notoriously slow to innovate in response to other sustainability trends that affect its business. While specific companies have invested in strategic energy efficiency or clean energy, the food retail industry has not had a wholesale reckoning with its climate change impact. Given the industry’s carbon footprint from energy consumption alone , there is ample opportunity to reduce energy usage and improve its bottom line. 2.  Consumers want to know where their food comes from and how it is produced It is not news to anyone that consumers are increasingly interested in sustainability-marketed foods such as organic, fair trade, sustainably harvested products such as seafood, and so-called “natural” foods. And recent research shows that shoppers are putting their money where their mouths are. This market segment grew from 14.3 percent to 16.6 percent of CPG dollar sales. Additionally, over half the growth in the CPG product category is attributed to sustainability-marketed products. Beyond this, consumers are more conscious of how their food is produced and the environmental and social impacts of producing it. The food retail sector can both satisfy its customers’ buying preferences and drive more sustainable food production in its supply chain by creating industry-wide product procurement guidelines and partnering with NGOs that focus on these issues. 3.  Growing awareness of food retail’s role in creating (or preventing) food waste Supermarkets produce 10 percent of food waste in the U.S., and the industry is just beginning to step up in response to tackling the issue. A 2019 report by the Center for Biological Diversity on U.S. supermarkets’ path to zero waste rated only three of the top 10 retailers an “A,” meaning they scored high on three metrics: commitment to zero waste; tracking and transparency; and waste prevention measures. Nonprofit organizations and programs are partnering with food retail to reduce its food waste, while others are implementing their own internal programs. The initiative 10X20X30 aims to cut food loss and waste in half by 2030 by working with 10 top retailers and their suppliers — Sodexo, Tesco and Walmart were among its founding partners. Kroger founded the Zero Hunger/Zero Waste Foundation, while retailers such as Walmart have worked to clarify expiration dates on labels and reduce spoilage from farm to shelf. Additionally, other retailers have taken advantage of ugly or imperfect produce (that previously would be thrown away) to sell it at a discount. Why should retailers pay more attention to these programs? One, preventing food waste can reduce the burden of food production on land and water resources as well as help alleviate hunger in their immediate communities; two, to get ahead of increasing regulatory pressure to prevent large generators of food waste (read: supermarkets) from sending it to the landfill; and three, because it is good for the bottom line.  4. Growing awareness of the waste problem Along with food waste, consumers are increasingly interested in the global waste problem and are asking questions about who the biggest culprits are. Weekly trips to the grocery store put plastic packaging and single-use bags at the forefront of public consciousness, highlighting the role that food retailers play in addressing waste each time they visit. Following California’s example, eight states effectively ban either plastic or non-biodegradable single-use bags. In other states, counties and cities have taken the approach of imposing a charge for each plastic bag. While many countries have enacted plastic bag bans, the U.S. still has not moved to do so. Weekly trips to the grocery store put plastic packaging and single-use bags at the forefront of public consciousness, highlighting the role that food retailers play in addressing waste each time they visit. The grocery sector is also highly dependent on single-use plastic packaging, particularly in the case of consumer packaged goods (CPGs) sold in stores. Consumers are very concerned about the environmental impacts of plastic packaging, even as they prioritize convenience and quality. NGOs such as Break Free from Plastic are pressuring the industry to choose alternative packaging for prepared foods and in turn getting CPG manufacturers to do the same. The food retail sector can take a stronger stance by working directly with CPG manufacturers to use less plastic packaging on CPG products. 5.  COVID-19 has magnified social inequities among frontline food system workers The pandemic has exacerbated existing inequities along racial and income lines. Exposure and death rates have been especially high among communities of color compared with the overall population, partly because frontline workers disproportionately are people of color. These are the people who are the underpinnings of our food system, who work to harvest, process, distribute and yes, sell our food to us at the checkout counter in the grocery store. Early on in the pandemic, grocery store workers did not receive the protections they needed , and since then, there has not been a universal move to treat them as frontline workers with all the protections this would entail. Some retailers, including Whole Foods and Walmart, began instituting mandatory mask requirements before states and the CDC issued guidelines for retail operations. Similar trends were seen in produce harvesting operations and meat processing plants. The industry can work with its suppliers to ensure that harvesters and processing plant workers are being protected where they work. The industry has ushered in advanced disinfection practices to protect workers and customers within the store environment, and this has created tension with its mandate to reduce the use of harmful chemicals in operations. Job loss due to the pandemic also has had an outsize effect on workers in the service industry as restaurants, retail and service operations have closed, aggravating existing food access issues in communities where these workers live. Food retail can play a role in helping these communities by creating or expanding programs to improve access to healthy food in local communities. Now what? The good news is that people are thinking about how to move food retail toward being a leader in environmental and social stewardship. Grocery chains such as Wegmans, H-E-B and Metro are investing in innovative programs. Nonprofit organizations and coalitions, including the Consumer Goods Forum’s Coalition of Action on Food Waste and the Food Chain Workers Alliance , are also rising to meet the need to drive the industry forward. Organizations such as Ratio Institute , founded to drive sustainability and operational excellence in food retail, are valuable partners that can offer insight and tools for retailers to make the jump. Finally, individual consumers can have an impact by learning more about sustainability measures retailers are taking, and choosing retailers, brands and products that align with their personal values.  To learn more about Ratio Institute, visit ratioinstitute.org or contact info@ratioinstitute.org . Join the conversation on LinkedIn , Twitter , and Facebook . Pull Quote The food retail industry has been notoriously slow to innovate in response to other sustainability trends that affect its business. Weekly trips to the grocery store put plastic packaging and single-use bags at the forefront of public consciousness, highlighting the role that food retailers play in addressing waste each time they visit. Contributors Aaron Daly Peter Cooke Topics Food Systems Food & Agriculture Retail Food Waste Waste Collective Insight Thinking in Systems Featured in featured block (1 article with image touted on the front page or elsewhere) Off Duration 0 Sponsored Article Off Photo by  FG Trade  on iStock.

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Compelled to action: 5 sustainability trends impacting food retail

NetZero mycelium orbs help increase carbon capture and more

March 18, 2021 by  
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It seems whatever the question is in nature, mycelium is the answer. For the past 12 years, a duo of mycologists has singularly focused on replicating the wonders of mycelium in a way that can benefit the  environment  in every forest, field and yard.  Called mycelium orbs, the treatments can roughly double the amount of carbon captured by America’s lawns. It’s easy to use by simply adding the orb to a watering can or spray applicator. A single application can last at least 10 years. It can be used anywhere, from a commercial farming operation to a simple backyard lawn. The treatments rejuvenate the soil and help plants thrive. Treated  plants  can capture one ton of carbon per year or 10 tons per application. That’s an estimated 20% increase in carbon reduction. Additionally, the mycelium orbs are pet and human friendly and require zero maintenance. Related: Bro.do x Mylea Better Shoes are made from mushroom leather NetZero, the company behind the orbs, began in 2008 when two scientists came up with a blend that boosts the carbon absorption of all living plants. The innovation was based on the historic symbiotic relationship between fungi and surrounding plants. Not only does mycelium act as an underground communication system throughout the forest floor, but it has also been shown to increase the land’s resilience and health. This helps trees and plants readily absorb water  and nutrients. Four years after the initial development phase, following field tests at over a dozen parks, farms, and rooftop gardens , current U.S. Executive Director Joseph Kelly, bought the IP rights to NetZero and hired a dozen scientists to continue the work. The result was an improved blend that won several awards for sustainability, especially for the focus on lowering carbon footprints.  NetZero initially focused on commercial clients, but during the pandemic of 2020 saw a new opportunity to quickly and efficiently facilitate carbon reduction — America’s lawns. Through a  Kickstarter campaign , the project has raised over $150,000. The NetZero mycelium orbs are now available at the retail level, so everyone can help with the cause.  Even with the amazing innovations already in place, NetZero has bigger, global goals. This took shape in 2017 when the company launched the Sacred Rivers Climate Project (SRCP), an initiative that focuses on preserving biodiversity and habitat, cleaning up air, water, and  plastic pollution , and empowering women in the developing world. These are not just goals of SRCP, but represent the United Nation’s 2030 development goals. To this end, groups around the world are now planting food forests inoculated with the mycelium orbs. In 2019, the project planted a forest in Nepal, and this work continues with developments in Bali and Uganda. Each of these locations provided jobs and purpose for local women. Now, SRCP has a growing list of communities requesting forests. COVID threw a wrench in the project’s expansion, causing issues with funding and site access. However, SRCP continues to overcome obstacles to achieve its goals, currently launching new sites in Costa Rica , Israel and Bhutan. + NetZero + Sacred Rivers Climate Project  Images via SRCP

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Navex Global

March 13, 2021 by  
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Navex Global taylor flores Sat, 03/13/2021 – 11:02 NAVEX Global is the worldwide leader in integrated risk and compliance management software and services. Our solutions are informed, driven and refined by direct feedback from our customers, the industry’s largest community of risk and compliance technology users. Our commitment: helping organizations protect their people, reputation and bottom line.

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Facebook Marketplace fuels illegal sales of land in the Amazon rainforest

March 1, 2021 by  
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Large parcels of land in the Amazon rainforest are being sold illegally on Facebook. According to a recent investigation carried out by the BBC, Facebook Marketplace ads are being used to sell land in Brazil’s portion of the Amazon Rainforest to global buyers. Facebook has distanced itself from the illegal trade, saying, “We are ready to work with local authorities.” The company also added, “Our commerce policies require buyers and sellers to comply with laws and regulations.” Related: Amazon deforestation reaches a 12-year record Ivaneide Bandeira, head of environmental NGO Kanindé, said that those selling the land “feel very empowered to the point that they are not ashamed of going on Facebook to make illegal land deals.” Many of the people selling the land have admitted they don’t possess the land titles, which are the official documents that prove land ownership in Brazil . “There’s no risk of an inspection by state agents here,” said Fabricio Guimarães, one land seller, told BBC. Some of the land being advertised for sale belongs to Indigenous communities. One community leader, Bitaté Uru Eu Wau Wau, has condemned the Facebook Marketplace ads, urging the company to take action. “This is a lack of respect,” he said. “I don’t know these people. I think their objective is to deforest the Indigenous land, to deforest what is standing. To deforest our lives, you could say.” While local authorities are slow to act, Facebook has the capacity to take action. All ads go through an approval process before going live. Interestingly, some of the classifieds posted also include coordinates. But the company says the task of deciding which sales are illegal would be too much for it to handle and that authorities need to step in. In recent years, the Brazilian government has said that it does not support deforestation , but its actions say otherwise. “President Jair Bolsonaro’s government has always made it clear that his is a zero-tolerance government for any crime, including environmental ones.” Brazil’s Minister of the Environment Ricardo Salles said. While the government says it is taking action, the budgetary allocation to Ibama, the body mandated with inspection of the rainforest, has been cut by 40%. + BBC Image via Mario Dimas N Silva

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Facebook Marketplace fuels illegal sales of land in the Amazon rainforest

Walgreens Boots Alliance exec talks plastic, packaging and COVID-19

March 1, 2021 by  
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Walgreens Boots Alliance exec talks plastic, packaging and COVID-19 Deonna Anderson Mon, 03/01/2021 – 01:45 Walgreens is a fixture in the United States. About 78 percent of the U.S. population lived within five miles of a Walgreens or Duane Reade store as of August, according to the company. And the company has even more properties under the parent organization, Walgreens Boots Alliance (WBA). WBA employs more than 450,000 people in more than 25 countries and during the fiscal year that ended in August, it had sales that added up to $139.5 billion. I recently spoke with Richard Ellis, vice president of corporate social responsibility (CSR) at WBA, via Zoom. At the time of our conversation in early February, one of the most pressing items on Ellis’ priority list was releasing WBA’s 2020 CSR report and tooting the company’s horn.  “Given all of the other things that companies need to communicate and want to talk about, we have perhaps missed a few tricks in the past in terms of the way in which we have told our people about what we have been doing, what we have been achieving,” Ellis said. He noted that the virtual release event had the potential to reach the 450,000 people that the company employs, much more than was typical at in-person releases in the before times. Ellis said he hoped the event would help those in attendance “feel really proud of the company that they work for.” During our conversation, we also discussed Ellis’ long-term CSR priorities, the company’s packaging goals and its partnership with Loop. Below is our conversation, which has been edited for length and clarity. Deonna Anderson: I want to start with a level-setting question. Before doing research for this interview, I did not realize how big Walgreens Boots Alliance (WBA) is. You have retailers in the U.K. with Boots and Walgreens and Duane Reade in the U.S. and your wholesale business. With all of that in mind, how do you set your sustainability goals, and how these entities work together, if they do at all, to achieve your goals? Richard Ellis: In some respects, it goes back 20 years. Twenty years ago, I joined the Boots business when it was just a U.K. business. I joined Boots because it had come bottom in the first “Companies That Count” survey that an organization called Business in the Community had put together. And the company felt that that was wrong. So I spent probably four years putting together a program and a structure and a process that enabled Boots to become in the top three in the U.K. We then merged with Alliance UniChem, a European-based retailer and wholesaler. They quite liked the process that existed for Boots, so it was adopted by all of the Alliance UniChem companies that became the Alliance Boots business. When the Alliance Boots business then moved with Walgreens, [it] did not have a process, so they picked up and copied what Alliance Boots was doing. In a sense, the process has been 20 years in evolution rather than Walgreens, Boots and Alliance coming together and then the company searching for something to do.  If you go back 15 years, and you look at the first CSR report, then there are certain elements of it that have not changed in terms of the auditing, in terms of the following of a process that is laid down by the Global Reporting Initiative, etc. This agenda has been at the heart of the various iterations of the company. And now Walgreens Boots Alliance, employing over 400,000 people, it is a major company, and clearly this is an important agenda for any international business. Anderson: I wanted to talk through some of WBA’s sustainability ambitions. One of those is reducing plastics in Boots-owned brand packaging, in line with the UK Plastics Pact 2025 . How are you all doing that? How is it going so far? Ellis: When the Plastics Pact came along, it was formulating and putting in place a series of targets to capitalize upon work that we were already doing. So, when the Plastics Pact came out it was not something that was completely new to us. However, having a program [meant] there were targets we had to set up and start measuring and doing all these sorts of things. It is not one big thing but it is just a series of all of the actions that we take as a company to try to remove plastic from all of the things that we do and to try and then reuse what plastic we have in some way, shape or form. And basically, everything that has got plastic in it, we are looking and seeing how we can remove it. And that means that we have to collaborate with our suppliers and we have to educate our people internally in terms of the circular economy and how we recycle things. One of the things that we do is we backhaul all of the rubbish from the stores. A lorry [a large motor truck] makes a delivery to a store and it collects all of the waste from that particular store and it brings that waste back to a central recycling center, which is on the Nottingham side of the Boots business. This enables us to then segregate all of the different waste and then to recycle and then resell, reuse, all of those sorts of things. For argument’s sake, Christmas is an important time for Boots so they have lots of Christmas gifts, and this year we reduced the amount of plastic packaging that there was and other packaging by 270 tons. It is about the people in our marketing department understanding that perhaps it is not all that glitters is gold. In other words, they are removing some of the packaging to make the product more sustainable than perhaps using the packaging to make a product look slightly better. If you go into our distribution centers, there are seven different-colored waste bins and those waste bins enable us to segregate plastic.  It is not one big thing but it is just a series of all of the actions that we take as a company to try to remove plastic from all of the things that we do and to try and then reuse what plastic we have in some way, shape or form.  Anderson: One of WBA’s other sustainability efforts is related to rethinking consumption and waste management and trying to promote a circular economy. That reminded me of Walgreens’ partnership with Loop to sell products in reusable containers. How would you describe that partnership as fitting into WBA’s goals around packaging? Ellis: It is one of those initiatives that we are looking at because we are trying to learn all of the time. Loop has very much done in partnership with Kroger, who we have a collaboration with. I think the idea that you can buy refillable contents is something that interests us greatly. One of the things that we are experimenting with is people bringing in shampoo bottles and being able to refill them with the same product. Now, one of the problems that we have got is that because shampoo is a liquid, how do we improve the kind of lock and load where you twist the [top] or you affix the bottle so that you can refill it, so that it does not go everywhere, create a mess and cause lots of waste? If you look at the distribution centers in America, there is a project called Beyond 34 because no American city recycles more than 34 percent of the waste that it produces. Across our distribution center network, we have got that up to 98 percent, and that is all about reusing the packaging, reusing the totes, reusing the boxes, working with suppliers. This is all the circular economy in practice. And I think the big issue is that it is about collaboration. From our point of view, the work that we do with Unilever, with GlaxoSmithKline (GSK), with Johnson & Johnson in trying to manage all of these issues shows that the big international businesses have woken up to the challenges, which exist and realized that they are not going to solve them on their own. Anderson: It is kind of impossible to solve them all alone as one company because the problem is huge.  I read a recap of a Reuters event where you spoke, and you mentioned that working together with other companies and through your supply chain will be necessary to increase climate action after COVID-19. How else has the COVID-19 pandemic changed your work at Walgreens Boots Alliance or the approach you feel your company should take moving forward with taking climate action? Ellis: I think COVID has forced businesses to look very carefully at the way that they operate. And people like myself who have been working from home would never have believed that we could work for a year without, for argument’s sake, me traveling to America. I used to spend half my time in Chicago and other points, but in the past year, I have not been once. But using Microsoft Teams, I have been able to keep in touch with all of the people that work for me and all of those other departments that I have engagement with. And I would never have believed that it would be possible to keep the agenda moving forward, but the technology has really come into play and has helped a great deal.  I think we are just coming to terms with how COVID-19 will change the businesses that we operate. I think that what we will see within the retail business is that there will be much, much more online shopping. I think people have, shall we say, graduated to online shopping. And I think a lot of people, because they have been in lockdown, because they have been worried about contracting the COVID virus, what they have done is they have battled with their tablets and they have actually gotten used to online shopping. And so, that, I think, is going to have a big role to play in the way that we operate as a business. Climate change will not be reversible in the same way that COVID will be — hopefully — by a vaccine. I can see that we will learn lessons and we will start to think about how we trade and how we operate. I think lots of retailers are closing outlets because people are finding alternative ways of shopping. And I think that COVID has acted as a catalyst and has really got people thinking differently about the way that they operate. And I think businesses like ours are having to really sit up and take notice and start to change their philosophies and the way in which they operate. And I think that the impact of COVID in terms of it is the first real crisis that has impacted the whole world since the end of the Second World War, and I think people can see that as climate change starts to take effect [that] climate change will be a much worse impact than COVID. And it will not be cured by a vaccine.  If you look at Phoenix, last year Phoenix [broke the record for days with] temperatures above 100 degrees . You cannot live under those conditions. And if the number continues to rise, then there will be a huge migration of people. Similarly, people will not [be able to] live in California where the forest fires are or in Florida where Hurricane Alley is. All of those things are starting to make people aware of climate change and how climate change will impact all of us, and that climate change will not be reversible in the same way that COVID will be, hopefully, by a vaccine.  Anderson: I want to switch gears a bit. Are there any lessons in the corporate social responsibility report that we have not talked about that you feel are important lessons for GreenBiz readers? Ellis: As you read through our report, it is littered with examples of how we have worked with different people, with different organizations, how we have worked by sharing best practice across our businesses, the fact that we are operating in 26 countries, and that we can learn from each other. The rules and regulations that exist in Europe are different to America, and what can we learn from that? Why is that? How can we create a better, more sustainable business because we are sharing that best practice, because we work collaboratively internally as well as externally? And I think that is what comes through within the report in terms of how do we create healthier communities, how do we create a healthier environment, how do we create a healthier workplace? What do we do to make our products more sustainable? And all of those things are happening because we are trying to innovate but we are also trying to learn from others who have greater expertise or who want to work with us. Anderson: That reminds me of one of my last questions, which is about Walgreens welcoming a new CEO soon , Roz Brewer . How do you anticipate working together with her to continue pushing forward WBA’s social responsibility efforts? Ellis: I am very much looking forward to working with her from what I have seen of Starbucks in terms of their commitment to fair trade with all of their coffee products, in terms of their packaging, and what is in the public domain about what Starbucks has done. There are very similar parallels between ourselves and Starbucks. I am looking forward to learning some of the lessons that she might have picked up from Starbucks and bringing those to play in what we do. Equally, I’m looking forward to explaining to her all of the things that we have been doing over the past 20 years to try and make our business more sustainable. Anderson: As you just mentioned, you have been in corporate social responsibility work for a while. What is your most important priority right now as the VP of corporate social responsibility at Walgreens Boots Alliance? Ellis: In the long term, it is climate change, climate emissions. I really think that we have got to continue on our path. If you look at the report, it shows that we reduced our carbon footprint last year by 7.9 percent. And really, what we have got to do is to work with our suppliers — and I do not just mean the Unilevers of this world; I mean a lot of the small-to-medium-size firms — and impress upon them the need to reduce their carbon footprint. And what we have got to do is help them understand the things that we have done over the past 20 years, which have enabled us year on year to reduce our carbon footprint because it is better for the world and we are saving money for the company. Pull Quote Climate change will not be reversible in the same way that COVID will be — hopefully — by a vaccine. It is not one big thing but it is just a series of all of the actions that we take as a company to try to remove plastic from all of the things that we do and to try and then reuse what plastic we have in some way, shape or form. Topics Retail Corporate Social Responsibility Collective Insight The GreenBiz Interview Featured in featured block (1 article with image touted on the front page or elsewhere) Off Duration 0 Sponsored Article Off Courtesy of Walgreens Boots Alliance.

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Tourists could spread COVID-19 to gorillas in East Africa

February 18, 2021 by  
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A study by researchers at Oxford Brookes University shows that tourists may be spreading COVID-19 to gorillas in the wild. The study was carried out through an analysis of about 1,000 photos from Instagram posts. The researchers noted that tourists were taking photos too close to gorillas, a situation that may lead to disease transmission. Most of the photos analyzed were from people visiting mountain gorillas in East Africa. “The risk of disease transmission between visitors and gorillas is very concerning,” said Gaspard Van Hamme, lead author and Oxford Brookes University Primate Conservation alumnus. “It is vital that we strengthen and enforce tour regulations to ensure gorilla trekking practices do not further threaten these already imperiled great apes.” Related: 2 gorillas at the San Diego Zoo test positive for COVID-19 The researchers’ concerns draw from the fact that apes have been infected by the virus from humans before. In January, gorillas at the San Diego Zoo were infected with the virus, which was passed on from their caretakers. Magdalena Svensson, biology lecturer at Oxford Brookes University, noted that most tourists do not wear masks when interacting with the animals . “In the photos we analyzed, we found that face masks were rarely worn by tourists visiting gorillas, and that brings the potential for disease transmission between people and the gorillas they visit,” Svensson said. “With people all over the world getting more used to wearing face masks we have hope that in the future wearing face masks will become common practice in gorilla trekking.” Mountain gorillas are native to East Africa, with the largest population in the Democratic Republic of Congo, Rwanda and Uganda. Their population had been on a downward trend due to hunting and other human activities. In recent years, legislation and strict policies have seen the numbers start to climb. Today, there are 1,063 gorillas in the region that must be protected. According to Dr. Gladys Kalema-Zikusoka of Conservation Through Public Health, Uganda, the new study shows the need for responsibility from tourists. “This research provides a valuable perspective on how much tourists are willing to share their too-close encounters with mountain gorillas through Instagram, which creates expectations for future tourists,” Dr. Kalema-Zikusoka said. “It highlights a great need for responsible tourism to provide adequate protection while minimizing disease transmission, especially now during the COVID-19 pandemic.” + People and Nature Via Oxford Brookes University Image via Thomas Fuhrmann

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Tourists could spread COVID-19 to gorillas in East Africa

Namibia auctions 170 elephants amid uproar from conservationists

February 2, 2021 by  
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The Ministry of Environment, Forestry, and Tourism (MEFT) in Namibia has finalized plans to sell over 170 wild elephants . Conservationists have criticized the auction, prompting a government response about the overwhelming population growth of Namibian elephants since the 1990s.  MEFT says that the number of elephants in the country has grown from 7,500 in 1995 to 24,000 today. The organization claims this growth has caused human-wildlife conflict in the country due to a strain on the available resources. Conservationists have refuted these claims, alleging that this is just an excuse to sell the animals.  Further, conservationists say that even if a human- wildlife conflict exists, selling the animals will not solve the problem. According to Neil Greenwood, the International Fund for Animal Welfare’s Regional Director for Southern Africa , the government can mitigate such conflicts by working with local communities.  “Selling elephants will not prevent human-elephant conflict,” Greenwood said in a statement. “The most effective way to mitigate the problem of conflict is by working with communities to ensure habitats are managed properly and solutions found to ensure wildlife and the people who live alongside them are protected. This has been proven time and again throughout southern Africa.” Additionally, scientists have disputed the data provided by the government. While the government says that the current population of elephants sits at 24,000, local scientists say that between 17,265 and 20,000 elephants in the country are transboundary; this means the elephants migrate to Angola, Botswana and Zambia . As such, only about 5,688 elephants can be said to belong to Namibia. Conservationists argue that this number is way too low to justify the auction. Compared to other African countries, Namibia’s elephant population is low. Botswana alone is home to over 130,000 elephants, even though Namibia is 40% larger than Botswana in terms of landmass area. With this information in mind, some conservationists say that the government is falsifying numbers to sell off the elephants. According to Mark Hiley, operations director of National Park Rescue, this behavior poses a significant danger to elephants. “Falsifying elephant population statistics and exaggerating human-wildlife conflict can be used by governments to generate revenue from inflated hunting quotas, justify sales to zoos or hunting farms, and initiate ivory -generating culls,” Hiley said. “Corruption is now as big a threat to elephants as poaching.” Via Mongabay News Lead image via Pixabay

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Canoo unveils 100% electric delivery vans that start at $33K

February 2, 2021 by  
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Los Angeles-based automotive startup Canoo has unveiled designs for two all-electric multipurpose delivery vehicles (MDPV) with prices starting at $33,000. Slated for limited availability beginning in 2022 with a launch planned for 2023, the compact delivery vehicles were designed to meet the needs of small businesses as well as the last-mile delivery needs of larger companies. The first iteration of MDPV will come in two options — MPDV1 and MPDV2 — with three different battery sizes for estimated ranges between 90 to 230 miles per charge.  Designed for space efficiency, Canoo’s compact all- electric delivery vans will provide spacious interior cargo volume — with nearly 30% more parcel volume than other comparable delivery vehicles — with a small vehicle footprint. Ergonomics have also been an important design consideration, from the integration of urban maneuverability with a steer-by-wire system that eliminates hand-over-hand driving to low step heights of 17 inches. Customers can also customize the vehicle with add-ons such as storage lockers, a roll-up style door, ramp slide outs and more. Related: Amazon goes green with electric delivery vans As a ground-up electric design, Canoo’s MPDV was created with mobile workspaces in mind. A 125V or 240V AC output power plug can be integrated into the vehicle for powering equipment from laptops to power tools such as drills and air compressors. The vehicle will be built on Canoo’s propriety EV platform with features such as steel-frame construction, transverse composite leaf springs, data reporting capabilities and support for cutting-edge software-as-a-service (SaaS).  Both vehicle variants will offer three battery sizes: 80, 70 and 40 kilowatt-hours. The largest-capacity battery will have a DC Fast Charging time of 28 minutes from 20% to 80% charge. The MPDV1 will be the more affordable of the two options and offers a total cargo volume of 230 cubic feet. The more spacious MPDV2 will offer a total cargo volume of 500 cubic feet. + Canoo Images via Canoo

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Canoo unveils 100% electric delivery vans that start at $33K

PepsiCo CSO on embedding sustainability into ‘day-to-day business’

February 1, 2021 by  
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PepsiCo CSO on embedding sustainability into ‘day-to-day business’ Heather Clancy Mon, 02/01/2021 – 02:00 The number of companies proclaiming their intent to go net-zero by 2050 has expanded exponentially in the past 12 months, but the ones short-cutting that commitment by a decade are a rarer breed. In mid-January, PepsiCo joined that club with a strategy to reduce its greenhouse gas emissions by 40 percent across its entire value chain by 2030 and to reach the elusive net-zero emissions status 10 years before it’s called for by the Paris Agreement. The latter commitment is one touted by members of The Climate Pledge, orchestrated by Amazon and Global Optimism, although PepsiCo isn’t a member of that campaign as of this writing. The same week that PepsiCo announced its new ambition, the company’s foundation extended the terms of its 14-year-long relationship with the Inter-American Development Bank — with initiatives including a fund meant to promote the inclusion of women in regenerative, sustainable agricultural models in Latin America. The extension will see $6 million more invested through 2026, initially in the Dominican Republic, Ecuador and Guatemala. Even though the foundation is a separate entity, there is a close link between its mission and the company’s sustainability goals, according to senior executives. These initiatives, for example, are thought of in terms of years rather than months. “We have to have the certainty that the community will invest the time and willingness to go on with a program for several years, and we need to create awareness,” said PepsiCo’s Latin America CEO, Paula Santilli, when I asked her about how communities are selected. “We choose mathematically and analytically and concentrate on those communities on the wrong side of the poverty line.” I’ve got history in sustainability, but I’m a business guy. In addition to Santilli, I recently chatted with PepsiCo Chief Sustainability Officer Jim Andrew about the link between sustainability and community development, as well as the strategy behind some other developments announced as part of its updated climate strategy — such as its new Sustainable from the Start product development philosophy and two new internal carbon pricing programs meant to embed climate-centric thinking into everyday business decisions. Andrew, an avid scuba diver who joined PepsiCo about 4.5 years ago after heading strategy and innovation at Royal Philips, took over as CSO after Simon Lowden retired last fall. “I think speed is of the essence, not just for PepsiCo, but for the whole world, for the planet and all the people in it,” Andrew told me when I asked for the motivation behind the accelerated goal. Following is a transcript of our discussion, edited for clarity and length. The Frito-Lay facility in Modesto, California. PepsiCo accelerates efforts to build a more resilient and sustainable food system, reducing absolute GHG emissions more than 4 percent by 2030 across entire value chain and pledging to net-zero emissions by 2040. Photo courtesy of PepsiCo Heather Clancy: The goals were finalized alongside the response to the COVID-19 pandemic. Did that experience influence the final shape of the climate goals? Was anything adapted or reconsidered because of what was going on? Jim Andrew: Certainly COVID-19 has been a challenge for everyone on multi levels. But what I think it’s done, it’s really shone a light on the need to be even bolder and move even faster. What has it done? It has, I think, sharpened the focus on the need to move urgently. We all saw that the food system is probably more fragile than we thought. We saw that the need for a food system that is sustainable, that is regenerative, that is inclusive, it’s probably bigger than we thought. In that respect, it didn’t influence what we wanted to do, but it probably helped re-emphasize the need to be big and be fast. Clancy: You mentioned a couple of interim goals to the 2040 one. I’m just curious if you have other short-term milestones that we should expect or watch for. What should we watch for? And how will PepsiCo disclose them? Andrew: You should watch for transparency, consistency and regularity in our reporting. We are completely open in that. Any goal we set, believe me, there’s a lot of work behind coming up with those goals. We put as much work into ensuring transparent reporting because it helps us be accountable — both internally and externally, candidly — and also helps us track progress. We’re a company that likes to set a big objective out there and then go get it. One of the big parts of my job is mobilizing the organization. I’ve got history in sustainability, but I’m a business guy. I didn’t major in environmental science. I’m a business guy working to drive in partnership with our CEO, Ramon Laguarta, and the rest of my executive peers to really drive the organization forward. Having clear goals, having really good data integrity, is at the heart of all of our ESG reporting. That’s important because then we know how we’re doing. It also builds trust. That’s something that we take really importantly. So what are you going to see from us? We’re going to report our progress annually in our sustainability report. We have one coming up in a few months and will be happy to talk to you again, when that comes out. Anytime we can provide real-time updates, we will. All of the reporting entities, we’re in alignment with — the Global Reporting Initiative, the CDP, the Task Force on Climate-related Financial Disclosures. We just issued our first [TCFD] report. So, we are going to be transparent; you’re going see it on a regular basis. Our objective is set some bold goals, and then go get them and hold ourselves accountable. Clancy: Since you brought it up, how will you engage the PepsiCo organization to deliver, especially when we’re all in this new age of remote work? Andrew: It’s been incredibly exciting to me to see just in four months the level of excitement in our organization. We’re 260,000-odd people around the world, 200-plus countries and territories. We’re a big complex organization, but there’s a level of interest and excitement. People get it. You ask me, how am I going to engage? There’s three things that you’ve got to do. The first is you’ve got to excite people. With PepsiCo, when you announce an ambitious goal, like our climate goal, people get excited and they get energized. Honestly, a lot of our partners — our bottlers, our co-manufacturers, our suppliers — I’ve had a lot of people reach out to me and say, “Hey, this is really exciting. How can we help? We’re in on it.” So the first thing you got to do internally and also externally is excite and a big goal does that. You know, make no small plans? I think that’s one of the real keys to make sustainability work. You got to embed it in the business strategy, the business processes and the actions everybody takes every day. The second is, there is a level of education that’s important. When we talk to people internally about regenerative agriculture, Scope 3 emissions, those are terms that to most people are new. So we need to introduce those terms. We need to educate people on why the goals matter, but most importantly, how are we going to achieve them. Because that’s what it’s all really about, and we’re doing that across the company. Because we’re Scope 3, it’s got to be across your whole supply chain. We’ve rolled out, as part of the climate goal, a really well-done employee training program specific to our employees to help them understand the role of us as a company, and then the role of them as individuals. What can they do to mitigate climate change? And then finally, it’s about engagement, it’s how do we take that excitement, take that education and then really engage people to drive real action. Because ultimately, it’s about action, it’s about results, it’s about moving the needle. And so that’s everything from, how do we give people the tools? How do we put it in their incentives? How do we talk about it on a regular basis? How do we measure it clearly, because what gets measured gets done, all those things. So: Excite, Educate and Engage. Clancy: How will the Sustainable from the Start Program be implemented, and which product divisions will be first to adopt it? Andrew: That’s a great question, because this is one of my real beliefs and one of my real emphases, which is how do you get sustainability not as something that happens “over there,” but that is really part of the day-to-day business, part of the day-to-day work. Because if it’s part of what we do every day, then it happens and that’s how you really drive action. So, we’re looking at where there are business processes where we can embed sustainability. New product development is a great example. Everybody, every part of the company is interested in and cares about what happens in new product development. So we started this program called Sustainable from the Start, and it really puts sustainability at the heart of product design and new product development, because what it does is it encourages, but it also enables product development teams to make environmental impact a part of their decision-making from the very beginning as they think about the whole product life cycle. We’ve rolled out some tools that really help, because you’ve got to make it simple. The less friction that we can introduce, the easier it’s going to be. So we gave people a set of tools, so that they can estimate, for example, the carbon and the water footprint of products and development, and what are the choices that they make early that are going to affect those footprints. And then they can compare that data to some best practice benchmarks that we’ve built in, so they know what good looks like and they can make more informed decisions. Things like recyclability impediments. If people don’t know, they will not be able to make the kind of decisions that they will if they’re informed. That gets back to the education point I was making as well. If they’re informed and they’re energized and they’re motivated, then they’re going to make decisions that will have big impacts as we move through the life cycle. A big focus of the Sustainable from the Start program is reducing GHG emissions, sure, but also things like discouraging the use of non-recyclable packaging, because that’s really important. So we’ve conducted life-cycle analyses, carbon footprints. We’ve done it for about a quarter of all of our brands now, and we’ve got plans to get all of them done. When you’re a company as big as PepsiCo, you’ve got a lot of brands, so it takes a little while to go through. We’ll have more to share on this — again, transparency, openness. But it’s a great business tool that we’re actively embedding, so that people are thinking about this, from the beginning, as a part of their day-to-day jobs. Because I think that’s one of the real keys to make sustainability work. You got to embed it in the business strategy, the business processes and the actions everybody takes every day. A farmer gives her livestock water in Cucungara, Peru. The success of infrastructure projects piloted by PepsiCo and the IDB in these rural communities has attracted additional support from international public sector partners that has been used to fund new infrastructure, including pipe systems and treatment plants. Photo courtesy of PepsiCo Clancy: Can you share more detail about the internal carbon pricing programs? Why are you embracing them now? Did they take effect? When will they take effect? Andrew: That’s another great example of where we’re trying to take environmental sustainability considerations and just put them in the normal flow of business. So, we’re going to have to collaborate and get employees involved, and also partners and suppliers and everything. There’s a couple that we mentioned. One is, how do we eliminate the carbon impact of employee business air travel? A lot of people travel; a lot of people may or may not fully understand what the implications are of that. What we have done is we have said that anytime any employee is going to travel by air for business, we’re going to put a price on that. And then we’re going to take that money, and we’re going to deploy it with a third party into our supply chain. It’s not something that’s out there, it’s put into our supply chain, to fully eliminate the impact of the emissions from that flight. And it’s flight by flight. And it allows every employee, every time they book a flight, to see that their choice has an impact and also that we as a company will do something. Again, it’s about how do you excite people because people get excited about, “Hey, I can do something.” It’s about how you educate them, because it’s right there, it’s going to be in the booking tool. We are programming it, as we speak. Then it’s ultimately about how you engage them, so they go do something. So that’s one. We’re rolling it out now. By the middle of this year, it’ll be up and running, full go. Then we’re also looking at how we build the carbon impact into carrier selection for third-party logistics. We’re working with our procurement team, so that the climate goals are a part of the consideration when they’re choosing carriers. Because what this will do is it will help you enforce, again, climate considerations and business decisions, which will help drive GHG reductions. And then we’re going to learn from these things, and we’re going to look for where can we continue to expand across other business processes, ways to just embed this into the everyday thinking in activities. Clancy: Those are great examples. Thank you for being so specific. Andrew: The carrier selection is being piloted right now. The employee air travel right now, obviously, we’ve got to do a little programming and not a lot of people are flying a whole lot right now. But the carrier selection program is being piloted right now. Clancy: The pandemic has underscored the fragility of the recycling infrastructure around the world, as well as the food system. What new investments is PepsiCo making to improve collection? And what steps are you taking to increase the use of recycled content in your packaging? Andrew: We have a very clear vision, and that’s a world where packaging never becomes waste. That is front and center for everything we do in packaging. There’s really three things that we have to [enforce that policy]. The first is reduce plastic use. The second is improve recycling, and the third is reinvent our packaging. Let me talk about those now and answer your question. To improve recycling, especially as you say, given some of the challenges, this is a systemic change that is necessary and it requires a lot of partnerships across the full value chain. It requires collaboration between the public sector and the private sector. And it really is how do we work together end-to-end for a circular economy for plastics? We set goals, and then we go and we work really hard to go achieve them. But you’ve got to be transparent along the way about what’s working, what’s not. Specifically to your question, in the last three years, we’ve pledged more than $65 million globally for recycling and collection. A little over a year ago we issued our first green bond. It was a $1 billion green bond. We’ve allocated just about half of that, I think it was $447 million, of the proceeds to projects that advance sustainability. Roughly $200 million of that was specifically to procure recycled PET in our North American beverage packaging. You want to talk about creating a market, that’s creating a market. We have brands, whole brands that are [using] 100 percent recycled PET in Europe. We’ve targeted 100 percent recycled PET in nine countries for our lineup of Pepsi-branded beverage bottles by the end of 2022. We’re working to both support the recycling infrastructure in partnership with other people in the supply chain, public entities, competitors, because this is something that we all have to work on. And then we’re also working at driving demand because if we drive demand and make clear what our commitments are, that helps support the investments that people need to make all along the chain. [Editor’s note: PepsiCo brands using 100 percent PET for their packaging include LIFEWTR, Tazo Tea and Naked Juice.] Clancy: The PepsiCo Foundation has invested considerably in cultivating economic growth and opportunities for women and disadvantaged communities around the world. How does the PepsiCo corporate sustainability team collaborate on those projects? How do they shape the execution of your strategy? How are they aligned? Andrew: We work very closely with the foundation. Again, this is a great example of where we work to use the scale and the reach that PepsiCo has to have a positive impact really across communities around the world, where we operate and to really show some leadership in helping to build a food system that’s sustainable, regenerative and inclusive, to your point. So what we’re always trying to do is work on both people and planet. The foundation and the business have very much those objectives. A good example of collaboration — in addition to the climate news we announced — was the announcement where PepsiCo, in particular our Latin American operations, with our CEO there, Paula Santilli, and the PepsiCo Foundation announced that they are expanding the social and environmental impact partnership that we have with the Inter-American Development Bank. We will go another five years through 2026. It’s a nearly $6 million investment. It builds on the heels of what has been a very successful investment in a partnership over the last 14 years. Over the last 14 years, we’ve supported about 19 million people across Latin America and the Caribbean, on five big pillars of things that are really, really important: water access; nutrition; sustainable agriculture; inclusive recycling; and disaster relief programs. There’s a great example of where the business, the foundation and third parties have been able to collaborate in ways that are more powerful. It’s one of those one plus one plus one equals probably seven. A lot of people have had been helped by a partnership that none of the organizations could do by themselves. Clancy: What’s on your mind right now that I haven’t asked about that you feel like we should talk about more? Andrew: This is something I’ve been thinking about a lot. The challenges that the world is facing, when it comes to climate — again, go back to our recent climate announcement, which is top of mind — are challenges where no company, no government, no NGO can do it themselves. The need for collaboration, for partnership, for working together, has never been higher. These are difficult challenges. These are not things that can be solved by any one entity, and they’re not things that are there to be solved overnight. But they are also things that we can’t wait on. The science is clear, the need is clear; the time to act is now. All of us have to find partners to move forward. There’s going to be some mistakes, there’s going be some things that won’t work but together, we have to work together, find those areas of common interest and where we can complement each other, and then move forward with urgency. That’s why we looked and said: “We want big goals, we want goals that will motivate not only ourselves internally, but also other folks externally.” I’ve gotten a lot of calls from people saying, “Hey, great, how do we team up? I see you’re interested in this; how can we work together on that?” That’s what we need. I wake up every day, I wake up every morning, and I worry about what’s going on and sustainability and how PepsiCo is going to drive forward and meet our goals and move the needle on things. But I also think about, how can we do that with others? So, to me, that’s so important and I’m not sure that is fully appreciated by everybody who needs to work together. Clancy: There is a certain amount of skepticism about some of these big alliances right now. How do you keep them relevant and authentic? Andrew: You have to be open, transparent; you’ve got to build trust; and then you’ve got to show results. I think if those things happen, a lot of problems are going to take care of themselves. Back to the question you asked about milestones, transparency. We don’t set goals that we don’t think we can achieve. We don’t know always how we’re going to achieve them because they are big goals, and they’re bold, and they’re aggressive. But that’s what’s needed. But we don’t set ones just to get a headline or, as much as I love talking to you, we don’t set big goals just to be able to go do interviews. We set goals, and then we go and we work really hard to go achieve them. But you’ve got to be transparent along the way about what’s working, what’s not. How are we doing? Clancy: I just have one last question. What’s your most important priority as a chief sustainability officer at this time? Andrew: Oh, that’s easy. I’ve probably got the best job in the company because I get a combination of the chief sustainability role, and also some business responsibilities, which are all about sustainability. But the most important thing is easy, which is achieving the goals we’ve set. That’s hard to do, but easy to say. But that’s the priority. Ultimately it’s about how do we make the planet better for both the planet and for the people on the planet. How do we drive forward results around climate? How do we reduce emissions? How do we increase our renewable electricity to 100 percent globally? How do we end up at net-zero? That’s what is the most important part of my job. That’s what motivates me, because that’s what ultimately will show up and create real change. I need to work with a whole lot of people internally — 260,000 people have all got to be pulling in that direction. It starts at the top and goes all the way down to our frontline workers, but it also is true externally. But that’s my priority 1, 2, 3, working in every way that I can, with everybody to help us achieve the results that we know are necessary for the planet and the people on it. Pull Quote I’ve got history in sustainability, but I’m a business guy. I think that’s one of the real keys to make sustainability work. You got to embed it in the business strategy, the business processes and the actions everybody takes every day. We set goals, and then we go and we work really hard to go achieve them. But you’ve got to be transparent along the way about what’s working, what’s not. Topics Corporate Strategy Corporate Social Responsibility Net-Zero Carbon Pricing Collective Insight The GreenBiz Interview Featured in featured block (1 article with image touted on the front page or elsewhere) Off Duration 0 Sponsored Article Off PepsiCo CSO Jim Andrew

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PepsiCo CSO on embedding sustainability into ‘day-to-day business’

PepsiCo CSO on embedding sustainability into ‘day-to-day business’

February 1, 2021 by  
Filed under Business, Eco, Green, Recycle

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PepsiCo CSO on embedding sustainability into ‘day-to-day business’ Heather Clancy Mon, 02/01/2021 – 02:00 The number of companies proclaiming their intent to go net-zero by 2050 has expanded exponentially in the past 12 months, but the ones short-cutting that commitment by a decade are a rarer breed. In mid-January, PepsiCo joined that club with a strategy to reduce its greenhouse gas emissions by 40 percent across its entire value chain by 2030 and to reach the elusive net-zero emissions status 10 years before it’s called for by the Paris Agreement. The latter commitment is one touted by members of The Climate Pledge, orchestrated by Amazon and Global Optimism, although PepsiCo isn’t a member of that campaign as of this writing. The same week that PepsiCo announced its new ambition, the company’s foundation extended the terms of its 14-year-long relationship with the Inter-American Development Bank — with initiatives including a fund meant to promote the inclusion of women in regenerative, sustainable agricultural models in Latin America. The extension will see $6 million more invested through 2026, initially in the Dominican Republic, Ecuador and Guatemala. Even though the foundation is a separate entity, there is a close link between its mission and the company’s sustainability goals, according to senior executives. These initiatives, for example, are thought of in terms of years rather than months. “We have to have the certainty that the community will invest the time and willingness to go on with a program for several years, and we need to create awareness,” said PepsiCo’s Latin America CEO, Paula Santilli, when I asked her about how communities are selected. “We choose mathematically and analytically and concentrate on those communities on the wrong side of the poverty line.” I’ve got history in sustainability, but I’m a business guy. In addition to Santilli, I recently chatted with PepsiCo Chief Sustainability Officer Jim Andrew about the link between sustainability and community development, as well as the strategy behind some other developments announced as part of its updated climate strategy — such as its new Sustainable from the Start product development philosophy and two new internal carbon pricing programs meant to embed climate-centric thinking into everyday business decisions. Andrew, an avid scuba diver who joined PepsiCo about 4.5 years ago after heading strategy and innovation at Royal Philips, took over as CSO after Simon Lowden retired last fall. “I think speed is of the essence, not just for PepsiCo, but for the whole world, for the planet and all the people in it,” Andrew told me when I asked for the motivation behind the accelerated goal. Following is a transcript of our discussion, edited for clarity and length. The Frito-Lay facility in Modesto, California. PepsiCo accelerates efforts to build a more resilient and sustainable food system, reducing absolute GHG emissions more than 4 percent by 2030 across entire value chain and pledging to net-zero emissions by 2040. Photo courtesy of PepsiCo Heather Clancy: The goals were finalized alongside the response to the COVID-19 pandemic. Did that experience influence the final shape of the climate goals? Was anything adapted or reconsidered because of what was going on? Jim Andrew: Certainly COVID-19 has been a challenge for everyone on multi levels. But what I think it’s done, it’s really shone a light on the need to be even bolder and move even faster. What has it done? It has, I think, sharpened the focus on the need to move urgently. We all saw that the food system is probably more fragile than we thought. We saw that the need for a food system that is sustainable, that is regenerative, that is inclusive, it’s probably bigger than we thought. In that respect, it didn’t influence what we wanted to do, but it probably helped re-emphasize the need to be big and be fast. Clancy: You mentioned a couple of interim goals to the 2040 one. I’m just curious if you have other short-term milestones that we should expect or watch for. What should we watch for? And how will PepsiCo disclose them? Andrew: You should watch for transparency, consistency and regularity in our reporting. We are completely open in that. Any goal we set, believe me, there’s a lot of work behind coming up with those goals. We put as much work into ensuring transparent reporting because it helps us be accountable — both internally and externally, candidly — and also helps us track progress. We’re a company that likes to set a big objective out there and then go get it. One of the big parts of my job is mobilizing the organization. I’ve got history in sustainability, but I’m a business guy. I didn’t major in environmental science. I’m a business guy working to drive in partnership with our CEO, Ramon Laguarta, and the rest of my executive peers to really drive the organization forward. Having clear goals, having really good data integrity, is at the heart of all of our ESG reporting. That’s important because then we know how we’re doing. It also builds trust. That’s something that we take really importantly. So what are you going to see from us? We’re going to report our progress annually in our sustainability report. We have one coming up in a few months and will be happy to talk to you again, when that comes out. Anytime we can provide real-time updates, we will. All of the reporting entities, we’re in alignment with — the Global Reporting Initiative, the CDP, the Task Force on Climate-related Financial Disclosures. We just issued our first [TCFD] report. So, we are going to be transparent; you’re going see it on a regular basis. Our objective is set some bold goals, and then go get them and hold ourselves accountable. Clancy: Since you brought it up, how will you engage the PepsiCo organization to deliver, especially when we’re all in this new age of remote work? Andrew: It’s been incredibly exciting to me to see just in four months the level of excitement in our organization. We’re 260,000-odd people around the world, 200-plus countries and territories. We’re a big complex organization, but there’s a level of interest and excitement. People get it. You ask me, how am I going to engage? There’s three things that you’ve got to do. The first is you’ve got to excite people. With PepsiCo, when you announce an ambitious goal, like our climate goal, people get excited and they get energized. Honestly, a lot of our partners — our bottlers, our co-manufacturers, our suppliers — I’ve had a lot of people reach out to me and say, “Hey, this is really exciting. How can we help? We’re in on it.” So the first thing you got to do internally and also externally is excite and a big goal does that. You know, make no small plans? I think that’s one of the real keys to make sustainability work. You got to embed it in the business strategy, the business processes and the actions everybody takes every day. The second is, there is a level of education that’s important. When we talk to people internally about regenerative agriculture, Scope 3 emissions, those are terms that to most people are new. So we need to introduce those terms. We need to educate people on why the goals matter, but most importantly, how are we going to achieve them. Because that’s what it’s all really about, and we’re doing that across the company. Because we’re Scope 3, it’s got to be across your whole supply chain. We’ve rolled out, as part of the climate goal, a really well-done employee training program specific to our employees to help them understand the role of us as a company, and then the role of them as individuals. What can they do to mitigate climate change? And then finally, it’s about engagement, it’s how do we take that excitement, take that education and then really engage people to drive real action. Because ultimately, it’s about action, it’s about results, it’s about moving the needle. And so that’s everything from, how do we give people the tools? How do we put it in their incentives? How do we talk about it on a regular basis? How do we measure it clearly, because what gets measured gets done, all those things. So: Excite, Educate and Engage. Clancy: How will the Sustainable from the Start Program be implemented, and which product divisions will be first to adopt it? Andrew: That’s a great question, because this is one of my real beliefs and one of my real emphases, which is how do you get sustainability not as something that happens “over there,” but that is really part of the day-to-day business, part of the day-to-day work. Because if it’s part of what we do every day, then it happens and that’s how you really drive action. So, we’re looking at where there are business processes where we can embed sustainability. New product development is a great example. Everybody, every part of the company is interested in and cares about what happens in new product development. So we started this program called Sustainable from the Start, and it really puts sustainability at the heart of product design and new product development, because what it does is it encourages, but it also enables product development teams to make environmental impact a part of their decision-making from the very beginning as they think about the whole product life cycle. We’ve rolled out some tools that really help, because you’ve got to make it simple. The less friction that we can introduce, the easier it’s going to be. So we gave people a set of tools, so that they can estimate, for example, the carbon and the water footprint of products and development, and what are the choices that they make early that are going to affect those footprints. And then they can compare that data to some best practice benchmarks that we’ve built in, so they know what good looks like and they can make more informed decisions. Things like recyclability impediments. If people don’t know, they will not be able to make the kind of decisions that they will if they’re informed. That gets back to the education point I was making as well. If they’re informed and they’re energized and they’re motivated, then they’re going to make decisions that will have big impacts as we move through the life cycle. A big focus of the Sustainable from the Start program is reducing GHG emissions, sure, but also things like discouraging the use of non-recyclable packaging, because that’s really important. So we’ve conducted life-cycle analyses, carbon footprints. We’ve done it for about a quarter of all of our brands now, and we’ve got plans to get all of them done. When you’re a company as big as PepsiCo, you’ve got a lot of brands, so it takes a little while to go through. We’ll have more to share on this — again, transparency, openness. But it’s a great business tool that we’re actively embedding, so that people are thinking about this, from the beginning, as a part of their day-to-day jobs. Because I think that’s one of the real keys to make sustainability work. You got to embed it in the business strategy, the business processes and the actions everybody takes every day. A farmer gives her livestock water in Cucungara, Peru. The success of infrastructure projects piloted by PepsiCo and the IDB in these rural communities has attracted additional support from international public sector partners that has been used to fund new infrastructure, including pipe systems and treatment plants. Photo courtesy of PepsiCo Clancy: Can you share more detail about the internal carbon pricing programs? Why are you embracing them now? Did they take effect? When will they take effect? Andrew: That’s another great example of where we’re trying to take environmental sustainability considerations and just put them in the normal flow of business. So, we’re going to have to collaborate and get employees involved, and also partners and suppliers and everything. There’s a couple that we mentioned. One is, how do we eliminate the carbon impact of employee business air travel? A lot of people travel; a lot of people may or may not fully understand what the implications are of that. What we have done is we have said that anytime any employee is going to travel by air for business, we’re going to put a price on that. And then we’re going to take that money, and we’re going to deploy it with a third party into our supply chain. It’s not something that’s out there, it’s put into our supply chain, to fully eliminate the impact of the emissions from that flight. And it’s flight by flight. And it allows every employee, every time they book a flight, to see that their choice has an impact and also that we as a company will do something. Again, it’s about how do you excite people because people get excited about, “Hey, I can do something.” It’s about how you educate them, because it’s right there, it’s going to be in the booking tool. We are programming it, as we speak. Then it’s ultimately about how you engage them, so they go do something. So that’s one. We’re rolling it out now. By the middle of this year, it’ll be up and running, full go. Then we’re also looking at how we build the carbon impact into carrier selection for third-party logistics. We’re working with our procurement team, so that the climate goals are a part of the consideration when they’re choosing carriers. Because what this will do is it will help you enforce, again, climate considerations and business decisions, which will help drive GHG reductions. And then we’re going to learn from these things, and we’re going to look for where can we continue to expand across other business processes, ways to just embed this into the everyday thinking in activities. Clancy: Those are great examples. Thank you for being so specific. Andrew: The carrier selection is being piloted right now. The employee air travel right now, obviously, we’ve got to do a little programming and not a lot of people are flying a whole lot right now. But the carrier selection program is being piloted right now. Clancy: The pandemic has underscored the fragility of the recycling infrastructure around the world, as well as the food system. What new investments is PepsiCo making to improve collection? And what steps are you taking to increase the use of recycled content in your packaging? Andrew: We have a very clear vision, and that’s a world where packaging never becomes waste. That is front and center for everything we do in packaging. There’s really three things that we have to [enforce that policy]. The first is reduce plastic use. The second is improve recycling, and the third is reinvent our packaging. Let me talk about those now and answer your question. To improve recycling, especially as you say, given some of the challenges, this is a systemic change that is necessary and it requires a lot of partnerships across the full value chain. It requires collaboration between the public sector and the private sector. And it really is how do we work together end-to-end for a circular economy for plastics? We set goals, and then we go and we work really hard to go achieve them. But you’ve got to be transparent along the way about what’s working, what’s not. Specifically to your question, in the last three years, we’ve pledged more than $65 million globally for recycling and collection. A little over a year ago we issued our first green bond. It was a $1 billion green bond. We’ve allocated just about half of that, I think it was $447 million, of the proceeds to projects that advance sustainability. Roughly $200 million of that was specifically to procure recycled PET in our North American beverage packaging. You want to talk about creating a market, that’s creating a market. We have brands, whole brands that are [using] 100 percent recycled PET in Europe. We’ve targeted 100 percent recycled PET in nine countries for our lineup of Pepsi-branded beverage bottles by the end of 2022. We’re working to both support the recycling infrastructure in partnership with other people in the supply chain, public entities, competitors, because this is something that we all have to work on. And then we’re also working at driving demand because if we drive demand and make clear what our commitments are, that helps support the investments that people need to make all along the chain. [Editor’s note: PepsiCo brands using 100 percent PET for their packaging include LIFEWTR, Tazo Tea and Naked Juice.] Clancy: The PepsiCo Foundation has invested considerably in cultivating economic growth and opportunities for women and disadvantaged communities around the world. How does the PepsiCo corporate sustainability team collaborate on those projects? How do they shape the execution of your strategy? How are they aligned? Andrew: We work very closely with the foundation. Again, this is a great example of where we work to use the scale and the reach that PepsiCo has to have a positive impact really across communities around the world, where we operate and to really show some leadership in helping to build a food system that’s sustainable, regenerative and inclusive, to your point. So what we’re always trying to do is work on both people and planet. The foundation and the business have very much those objectives. A good example of collaboration — in addition to the climate news we announced — was the announcement where PepsiCo, in particular our Latin American operations, with our CEO there, Paula Santilli, and the PepsiCo Foundation announced that they are expanding the social and environmental impact partnership that we have with the Inter-American Development Bank. We will go another five years through 2026. It’s a nearly $6 million investment. It builds on the heels of what has been a very successful investment in a partnership over the last 14 years. Over the last 14 years, we’ve supported about 19 million people across Latin America and the Caribbean, on five big pillars of things that are really, really important: water access; nutrition; sustainable agriculture; inclusive recycling; and disaster relief programs. There’s a great example of where the business, the foundation and third parties have been able to collaborate in ways that are more powerful. It’s one of those one plus one plus one equals probably seven. A lot of people have had been helped by a partnership that none of the organizations could do by themselves. Clancy: What’s on your mind right now that I haven’t asked about that you feel like we should talk about more? Andrew: This is something I’ve been thinking about a lot. The challenges that the world is facing, when it comes to climate — again, go back to our recent climate announcement, which is top of mind — are challenges where no company, no government, no NGO can do it themselves. The need for collaboration, for partnership, for working together, has never been higher. These are difficult challenges. These are not things that can be solved by any one entity, and they’re not things that are there to be solved overnight. But they are also things that we can’t wait on. The science is clear, the need is clear; the time to act is now. All of us have to find partners to move forward. There’s going to be some mistakes, there’s going be some things that won’t work but together, we have to work together, find those areas of common interest and where we can complement each other, and then move forward with urgency. That’s why we looked and said: “We want big goals, we want goals that will motivate not only ourselves internally, but also other folks externally.” I’ve gotten a lot of calls from people saying, “Hey, great, how do we team up? I see you’re interested in this; how can we work together on that?” That’s what we need. I wake up every day, I wake up every morning, and I worry about what’s going on and sustainability and how PepsiCo is going to drive forward and meet our goals and move the needle on things. But I also think about, how can we do that with others? So, to me, that’s so important and I’m not sure that is fully appreciated by everybody who needs to work together. Clancy: There is a certain amount of skepticism about some of these big alliances right now. How do you keep them relevant and authentic? Andrew: You have to be open, transparent; you’ve got to build trust; and then you’ve got to show results. I think if those things happen, a lot of problems are going to take care of themselves. Back to the question you asked about milestones, transparency. We don’t set goals that we don’t think we can achieve. We don’t know always how we’re going to achieve them because they are big goals, and they’re bold, and they’re aggressive. But that’s what’s needed. But we don’t set ones just to get a headline or, as much as I love talking to you, we don’t set big goals just to be able to go do interviews. We set goals, and then we go and we work really hard to go achieve them. But you’ve got to be transparent along the way about what’s working, what’s not. How are we doing? Clancy: I just have one last question. What’s your most important priority as a chief sustainability officer at this time? Andrew: Oh, that’s easy. I’ve probably got the best job in the company because I get a combination of the chief sustainability role, and also some business responsibilities, which are all about sustainability. But the most important thing is easy, which is achieving the goals we’ve set. That’s hard to do, but easy to say. But that’s the priority. Ultimately it’s about how do we make the planet better for both the planet and for the people on the planet. How do we drive forward results around climate? How do we reduce emissions? How do we increase our renewable electricity to 100 percent globally? How do we end up at net-zero? That’s what is the most important part of my job. That’s what motivates me, because that’s what ultimately will show up and create real change. I need to work with a whole lot of people internally — 260,000 people have all got to be pulling in that direction. It starts at the top and goes all the way down to our frontline workers, but it also is true externally. But that’s my priority 1, 2, 3, working in every way that I can, with everybody to help us achieve the results that we know are necessary for the planet and the people on it. Pull Quote I’ve got history in sustainability, but I’m a business guy. I think that’s one of the real keys to make sustainability work. You got to embed it in the business strategy, the business processes and the actions everybody takes every day. We set goals, and then we go and we work really hard to go achieve them. But you’ve got to be transparent along the way about what’s working, what’s not. Topics Corporate Strategy Corporate Social Responsibility Net-Zero Carbon Pricing Collective Insight The GreenBiz Interview Featured in featured block (1 article with image touted on the front page or elsewhere) Off Duration 0 Sponsored Article Off PepsiCo CSO Jim Andrew

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PepsiCo CSO on embedding sustainability into ‘day-to-day business’

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