1. Purpose
   1. Human Sustainability
   2. Environmental Sustainability
      1. Frito Lay Canada
      2. PepsiCo Beverages Canada
      3. Quaker
   3. Talent Sustainability

PepsiCo Beverages Canada

At PepsiCo Beverages Canada, we are committed to being an environmentally-responsible corporate citizen. We express this commitment by applying it to all aspects of our business and believe that it is our responsibility to continually improve upon all aspects of the world in which we operate as well - environment, social, economic - creating a better tomorrow than today.

We have challenged ourselves to reduce the electricity we use by 20% and to cut fuel consumption by 25%, both by 2015. While we set these goals for our company-owned and operated facilities, we are also encouraging our independent bottlers to set similar goals for their own operations and are supporting their efforts by sharing best practices and expertise.

When it comes to energy and climate change, we're focused on the areas where we can make the largest impact:

Water

• Pepsi bottlers in Canada are doing their part to conserve water resources; PepsiCo Beverages Canada (formerly the Pepsi Bottling Group) reduced water required for each litre of production by 6.5% in 2008.
• Gatorade brand continues to implement innovative technologies across its plants in a strong effort towards optimal water efficiency solutions.
• New technologies such as waterless rinsing in beverage manufacturing are being implemented in order to save thousands of gallons of water.

Energy

• New Pepsi branded refrigeration equipment is Energy Star rated and 54% more efficient than older models.
• We have implemented anti-idling and speed-limiting systems throughout PepsiCo Beverages Canada's large delivery fleet.
• By introducing the 7UP EcoGreen bottle in Canada, PepsiCo Beverages Canada will reduce the amount of virgin plastic by approximately 6 million pounds over the course of one year which leads to a reduction of more than 30% in greenhouse gas emissions and more than 55% in energy use, based on current 7UP production levels*(* Estimates based on studies published by the Association for Post-Consumer Plastic Recyclers, April 2010).

Packaging

We offer our beverages in a variety of packages, each carefully designed to deliver convenience and appeal to our consumers while protecting the integrity of our beverages and minimizing environmental impact throughout the package's life-cycle. We are making changes to minimize the impact of our packaging on the environment, including such things as:

• Being the first to innovate and market the 7UP EcoGreen™ bottle – Canada’s first soft drink bottle made from 100% recycled plastic.
• On-site bottle blowing production in Toronto, Montreal and Winnipeg which dramatically reduces fuel and electricity use.
• Converting our non-carbonated 591 mL PET bottles to lighter-weight bottles thereby reducing our plastic use by 20%.
• Using aluminum cans which contain on average, 41% recycled content.
• 100% recyclable PET and aluminum beverage packages
• Producing in containers that are recyclable and designed to fit into the diverse waste systems in place in Canada.
• Our Naked Juice brand using only 100% recycled materials.

We employ these principles not only for our bottles and cans, but also for the "secondary" packaging (i.e. pallets, boxes, shrink wrap and trays) that we use to protect, transport and display our beverages.

GE Water and Process Technologies awarded The Pepsi Bottling Group, Mississauga Plant, the 2008 Return on Environmental Leadership Award for demonstrating and improving our company's environmental and operating performance.

In addition, we are working to help ensure Canadians properly dispose of packaging after they enjoy our beverages. Our Aquafina brand is leading the way by labelling packages to help educate Canadians about their proper disposal and by promoting recycling in our communities.

Within Mississauga, home to both PepsiCo Canada's head offices, we support the City in establishing its first Parks Recycling Program. Over 500 of its most visited public spaces are now equipped with massive recycling bins. Over 10 tonnes of recycling materials have been collected.

For more information about PepsiCo Beverages Canada's environmental sustainability efforts, please visit:

• www.aquafina.ca
• www.nakedjuice.com