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PepsiCo, Inc.:

In Practice

1: Make Commitment

Educating Suppliers on the Importance of Energy Efficiency

A section of PepsiCo's energy policy expresses a commitment to educate key suppliers on the importance of energy efficiency. Suppliers are encouraged to attend periodic summits where PepsiCo communicates environmental sustainability values and invites suppliers to establish an energy conservation program. Suppliers are given access to PepsiCo experts, training, and other tools to develop and maintain their energy conservation programs.

2: Assess Performance

Organized Methods to Review Data

PepsiCo developed a successful method to track data and report energy usage to senior management. To analyze energy consumption and identify facilities that need extra assistance in reaching their energy reduction goals, each facility's scorecard is uploaded onto a company wide scorecard for easy review. Plant's scorecards are compared every four weeks to allow for early detection of energy saving opportunities.

4: Create Action Plan

Thorough Audits and Careful Planning to Reduce Energy Consumption

Using energy audit results, each PepsiCo site develops an action plan to deliver 150% of the target to account for potential delays or failure of some ideas. Each energy action plan includes a description of resource conservation projects or initiatives, estimates of energy reduction and cost savings associated with each initiative, key personnel responsible for implementation, as well as target dates for completion. To ensure that all energy saving reduction opportunities are taken, post-implementation audits are conducted.

Short Term Targets

Every year Pepsi sites are responsible for developing action plans designed to achieve their resource conservation short-term targets.  The Frito-Lay sites use a process of developing a "Play Book" of activities that can then be tracked.

5: Implement Action Plan

Incentives to Participate

Short-term goals are established for each facility after reviewing its scorecard performance. PepsiCo then determines plant management annual bonuses upon successful completion of these goals. PepsiCo has discovered that linking bonuses with plant performance has encouraged employees to conserve energy.

Tracking Energy Use Reduces Operating Costs

PepsiCo's action plan involves implementing a sustainability filer process for all capital expenditures over $5 million and lowering the economic hurdles for energy management projects. This effectively increases the simple payback period to 4-5 years and has allowed PepsiCo to create important energy-management projects in anticipation of record energy inflation.