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Corporate Carbon Emissions


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It seems the multi-national companies can no longer escape from the reality of global climate change, as they face up to the reality of their own carbon emissions which hopefully may even prompt them into doing something about it. The most recent eco-convert to come out of the carbon-closet seems to be PepsiCo who took a long, hard look at the carbon emissions that go into making orange juice for their Tropicana products.

PepsiCo is one of the world’s largest food and drink companies with revenues of $39 billion (2007), employing over 185,000 people and selling products in over 200 countries. PepsiCo is also a member of The UK Carbon Trust that was set-up by the British government to help organizations reduce carbon emissions, develop commercial low carbon technologies and move toward a low carbon economy.

PepsiCo and the Columbia Earth Institute evaluated the lifecycle carbon footprint of the 64-ounce container Tropicana Pure Premium Orange Juice, a first for a North American consumer product.

The UK Carbon Trust certified the carbon footprint, giving PepsiCo a verifiable benchmark against which the company can measure their greenhouse gas reductions. Tom Delay, Carbon Trust chief executive, was ecstatic, “We are thrilled that PepsiCo has stepped forward as the first company to apply our rigorous standard in North America and that the company is committed to taking steps to reduce the carbon footprint of its products. Everything we do or buy has a carbon impact and establishing a globally recognized method of measurement is an important step in tackling climate change. PepsiCo is leading the way, and we hope that some of the other companies we are working with in the U.S. will soon follow its example.”

Knowing what constitutes a carbon footprint, and having a verified method to account for it, allows PepsiCo to identify how to reduce their carbon footprint and measure how effective that reduction is. On the other hand, it also means that the company can pass along the cost of any carbon tax that the government applies in the near future, as it implements taxes to try to limit carbon emissions.

Indra K. Nooyi, chairman and chief executive of PepsiCo, said, “PepsiCo‘s partnership with the Carbon Trust is a significant step in our environmental sustainability journey. As part of our company-wide Performance with Purpose Initiative, we are committed to reducing our overall environmental impact. Understanding what contributes to the carbon footprint of our products is critical to achieving both our sustainability commitments and to driving efficiency gains across our global business.”

PepsiCo Tropicana subsidiary is looking for ways to reduce their carbon footprint and expand sustainability. They recycle waste orange peel (700,000 tons) into cattle feed (150,000 tons

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