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Pepsi Philippines embraces sustainable transformation in first ever sustainability report
June 26, 2019

Pepsi-Cola Products Philippines Inc. (PCPPI) further cements its commitment of service to the Filipino people by taking a bold step towards sustainability, sharing its first ever Sustainability Report, “Win as One!” anchored on three key priorities: Inclusive Business, Water Stewardship and Circular Economy.

 

“For over 70 years, PCPPI has served its purpose as a beverage company, providing the Filipinos with quality snacks and liquid refreshments,” said PCPPI VP for Legal, Government and Corporate Affairs, Atty. Manuel Lope, Jr. “But with depleting resources and the worsening environmental situation, we are determined to serve the Filipinos better with our sustainable transformation. Our ‘Win as One’ Sustainability Report is a testimony of us embracing sustainability, and an update of where we are in this journey.”

 

In 2018, PCPPI took on remarkable improvement on waste and water consumption reduction as well as deeper community involvement through its growing partnerships and greener initiatives. Guided by the United Nation’s Sustainable Development goals, the National Economic and Development Authority’s Ambisyon Natin 2040, the Philippine Development Plan (PDP 2022), and PepsiCo’s Performance with Purpose, the company reports heavy focus on employing Integrated Watershed management and sanitation; waste management and smarter consumption; as well as supply chain expansion through grassroot-level business collaborations.

 

Winning the Packaging Game

PCPPI leads transformation by defining key priority areas where it strongly implements programs anchored on its sustainability mission.

 

“Packaging is one of the biggest challenges for any manufacturing plant,” said PCPPI Senior Vice President, Allan Frias II. “While we strive to lessen our environmental impact, we also cannot compromise on the quality and safety of our products. This is the foundation of our Circular Economy pillar.”

 

Since 2014, the company has diverted tons of solid waste from landfills through ‘material lightweighting' or the reduction of the amount of material that goes into its packaging. In a span of four years, the lightweighting program has reduced a total of 863.4 MT of plastic resin used in PET containers, 6,467.5 MT glass material in its glass bottles and 921.35 MT of carton material.

 

As a result, PCPPI has taken great strides in manufacturing highly sustainable and recyclable packaging; 71% of its packaging are returnable glass bottles, 1% is metal that goes into canned drinks, and 20% goes into special packaging for premixed beverages for commercial partners.

 

Only 8% of PCPPI’s packaging are PET bottles made of high value recyclable plastics that can be reused or resold by consumers.

 

To complete the cycle, PCPPI has partnered with the Philippine Alliance for Recycling and Materials Sustainability (PARMS), which is the bottling firm’s joint recycling facility. PCPPI also regularly participates in volunteer programs like coastal cleanups as another way to mitigate the environmental impact of many industries and consumers.

 

Nurturing a Sustainable Supply Chain

Amid the pressing water crisis, the company was able to sustain healthy production through reduced resource wastage. According to the report, PCPPI consistently conserved water across plants as they meet their 5% year-on-year reduction goal from 2014-2017. The company further optimized water conservation in 2018 with a total reduction of 32.1%, which is more than triple its reduction goal in the last four years.

 

In the same way, PCPPI also bettered its fuel and electricity use. From 2014’s 2.75cases/kWh, the company boosted electricity yields with 3.74cases/kWh in 2018, which is an improved energy management of 36.2% since 2014. Its fuel yields of 11.73 c/L in the same year, also rallies in 2018 with 12.49 c/L which is a reduced consumption of 6.5% of PCPPI’s baseline fuels. These, on top of its 81% recycled in-plant waste were driven by the company’s “Luntiang Yaman” program for overall water, electricity, and material sustainability.

 

“By 2020, we aim to reduce more water use by 10%, improve electricity use and fuel consumption by 5% each, and improve solid waste management to 85%”, said Frias. “We practice conservation not just to ensure business profitability but more importantly, to look after the community who shares the limited resources with all of our operations.

 

“Transitioning into a sustainable business is a cycle that starts within the walls of our operations. As we ourselves enforce responsible production and uphold positive environment impact, we encourage our stakeholders and surrounding communities to do the same, magnifying the efforts to a larger scale.” Frias added.

 

Win as One!

Entitled ‘Win as One!’, the report recognizes the success and progress of the company’s sustainability venture through the collaborative work of PCPPI, its partners, stakeholders, and communities. Going beyond the SEC Requirements, the company has designed its own approach to efficient sustainable reporting.

 

“Our three-pronged approach ‘Engage, Trasform and Lead’, does not just motivate us to strengthen our resolve in being a responsible corporate citizen, but also to create a healthy ecosystem that nurtures the business and its employees, the communities upon which we have built our success, and the environment that provides all of us the resources to thrive,” Frias said.

 

PCPPI’s first ever Sustainability Report arrives a full year ahead of the Securities and Exchange Commission (SEC) requirement for sustainability reporting in 2020, making them one of the first Filipino companies to do so. Aware of how business stakeholders are now more concerned with a firm’s impact to the economy, environment, and society, the SEC has issued guidelines for sustainable reporting to help companies evaluate their non-financial performance, as well as monitor their contributions toward achieving universal targets of sustainability.

 

“With ‘Win as One!’, we share our transformation journey and what we have achieved in a short period of time. We hope that this serves to encourage other companies, big or small, to take on the responsibility of adopting sustainable practices as well. While every business is in a different place when it comes to sustainability, the important thing is for all of us to start,” Lope concluded.