Water is a fundamental human right, and its scarcity is the biggest crisis at hand. Around 3.6 billion people struggle to get enough water to meet their needs for at least one month every year, according to the World Meteorological Organisation.
A report by the World Resources Institute cites that, twelve out of the 17 most water-stressed countries are in the Middle East and North Africa (MENA) and the region’s greatest expected economic losses from climate-related water scarcity, is estimated at 6-14 percent of GDP by 2050. Nearly 400 million people in sub-Saharan Africa are denied even a basic drinking water supply.
Agriculture and food production are highly water intensive. Climate change, conflict and economic instability only exacerbate the existent pressure on the food-water-energy nexus – the core of our sustainable future. With the worrying trend of the demand for water expected to increase by 40 percent by the end of the decade, World Water Day 2023 reminds all of us, especially global food producers, of the dire need to champion water stewardship, make every drop of water go as far as possible and to truly – Be the Change.
Being an agriculture company at our core, water is a critical resource for PepsiCo’s business. It is, therefore, a strong imperative for food producers like us, to follow through a Net Water Positive vision, ensure water resources are in a better state due to our presence, achieve sustainable water security, replenish more water than we use and support collaborative solutions to reduce water stress at the local community-level. There are countless solutions to better manage water footprint better, both simple and complex, however here is a multi-faceted approach to water conservation and protection.
Changing the way farmers irrigate crops
Farmers are at the forefront of sustainable agriculture and water goals, especially in water-stressed areas. Through Sustainable Farming Practices, it therefore becomes increasingly important to familiarise farmers with regenerative techniques in a peer-to-peer environment, empower them with efficient irrigation methods and technology like N-Drip and hydroponics, and further help them improve crop performance with smarter water usage.
The creation of demonstration farms, many of which feature water-use efficiency best practices or demonstrable improvements in water quality, provide an opportunity to engage large numbers of farmers in hands-on learning and understanding innovation. In PepsiCo Africa, Middle East and South Asia (AMESA), we have reduced water usage by 38 percent from potato sourced high-water risk areas in 2022 vis-à-vis 2015.
While PepsiCo in Egypt has replenished 218 million litres of water through irrigation efficiency improvement in Minya’s watershed in 2022, PepsiCo in India has improved crop yields and reduced water usage in 148 acres with N-Drip as of Q1 2023. Karima Makram, a farmer benefitting from our flagship She Feeds the World Program in Egypt, says, “I dream to drip irrigate my farm with this technique because it is very economical and is as easy as it can be.”
It’s a win-win for the farmer and the planet!
Ensuring best in class water-use efficiency in manufacturing operations
It is crucial for global FMCGs, like ours, to ensure water circularity in manufacturing operations by reducing freshwater footprint and identifying reuse opportunities for treating process water not only in their own operations but also in third-party facilities.
By adopting the Alliance for Water Stewardship Standard in all high-water risk (HWR) company owned facilities by 2025, PepsiCo AMESA have achieved 39 percent of water reduction at 44 HWR sites in 2022 vis-à-vis 2015.
Giving back more water than used
With improvements in agriculture and operational water-use efficiency, as food producers, it becomes crucial to embrace the responsibility of restoring watersheds, especially in high-risk local watersheds. Each watershed is unique, and it is important that replenishment projects are informed by the local conditions to deploy a range of restorative initiatives and increase their ability to absorb rainfall into their aquafers, rivers and reservoirs.
With a goal of replenishing more than 100 percent of water we draw for our operations in high-risk watersheds by 2030, PepsiCo in AMESA has replenished 3.6 billion litres of water in 8 watersheds as of 2022.
Community access to safe water
Searching for clean water can be a daily struggle. For example – Prema Devaraju, who up to six times a day, would leave her rural village near Nelamangala, India, to haul buckets from faraway wells. And she’d often have no choice but to drink unsafe water from the local pond, putting her and her children at risk of illness.
Now, thanks to the PepsiCo Foundation’s partnership with WaterAid for clean and safe water access across the region, Prema has a water storage tank right outside her home, with clean water conveniently available to her family. “I feel relieved and confident that I finally have access to water,”, says Prema.
And now that her days are no longer spent looking for it, she’s able to work at a local factory, doubling the family income. This is one way of living up to our commitment to improving access to safe drinking water, hygiene and sanitation – especially for women, adolescent girls and children.
With WaterAid and World Wildlife Fund, the PepsiCo Foundation has helped provide over 27 million beneficiaries safe water access across AMESA through its valued partnerships since 2018.
Strategic partnerships and advocacy
Having a positive water impact means improving water security not just within our four walls, but out in the watersheds in which we operate. Stakeholder engagement is key to tackling water stress – to work towards a common goal of improving water governance and conservation. That is why PepsiCo is aiming to adopt the Alliance for Water Stewardship Standard at all high-water-risk areas by 2025.
The AWS Standard is a proven framework for bringing together cross-functional operations, agriculture, public policy and government affairs, environmental, health and safety, and supply chain associates, helping to identify and address local opportunities to advance watershed health together.
It is clear – water must sit at the heart of business and sustainability strategy. By working collaboratively and taking a long-term perspective on water security, we can help ensure that water remains available for future generations in these regions and around the world.
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