Walkers - From potato to packet
From potato to packet - measuring and reducing the carbon content of a Walkers crisp
Who are they?
The Pepsi brand is known across the world. In the UK, PepsiCo employs 5,500 people across 13 locations, including the largest crisp manufacturing plant in the world in Leicester, the Quaker Oats factory at Cupar in Scotland and the Copella apple juice plant in Boxford, Suffolk. PepsiCo UK has been recognised as a business leader by Forum for the Future and has won awards for energy and water efficiency.
What have they done?
PepsiCo UK recognised the environmental challenges faced by Walker Crisps are profound and would directly affect the company's bottom line. Water stress and crop failure in regions where they source potatoes and Sunseed with which they make the oil to cook their crisps and snacks are key threats to their business model.
The business assessment of these challenges took into account the potential costs and reputational impact from not taking action, with the benefits of showing leadership in developing low carbon products.
Measuring and reporting the whole carbon footprint
To get a clear understanding of each crisp packet's carbon, the company undertook a root to branch audit of each stage in the production and distribution process.
To help demonstrate their commitment to more sustainable production, PepsiCo launched the UKs first Carbon Reduction Label in March 2007, in partnership with theCarbon Trust, with the following objectives:
- To galvanise their business and suppliers to tackle carbon "hotspots"
- To raise public awareness of carbon footprints
What they have achieved
Through reducing the footprint of their manufacturing, distribution and packaging processes, and those of their suppliers, they achieved a 7% reduction of Walkers carbon footprint between 2007 and 2009.
In doing so, the company was able to reduce the carbon it takes to produce a standard bag of Walkers crisps by six grams per packet, saving 4,800 tonnes of CO2 per year. In 2009, Walkers was the first brand internationally to retain the carbon reduction label.
How they did it
These reductions were achieved through a combination of initiatives including:
- switching to 100% British potatoes to lower food miles
- training drivers to drive in the most fuel efficient way
- reusing waste oil in biodiesel; using biodiesel in our trucks
- light-weighting of packaging
- engaging front-line employees to be more energy-aware, reducing gas and electricity consumption
- piloting the emerging PAS 2050 carbon footprinting standard
Working with the supply chain to reduce emissions
The footprinting exercise showed 59% of a packet of Walkers Crisps' carbon footprint was generated outside their operations, so the company worked alongside their suppliers to share technical knowledge and expertise to help reduce their carbon footprint.
What was the consumer reaction?
One thing PepsiCo UK were keen to understand was the consumer reaction to the carbon label. Research showed that consumers liked the label, and agreed it made them more aware of the environmental impacts of the products and services they bought.
Transparency is key to the Carbon Reduction Label. Consumers agreed that companies will be more motivated to reduce their carbon emissions if they show their footprint on pack (Source: Populus 01/2009).
What lessons have been learnt?
The Carbon Reduction Label can galvanise businesses and suppliers to tackle carbon "hotspots" and drive reduction strategies. Key lessons include:
- Transparency was important in driving carbon reduction efforts, and consumers agreed the label provided accountability to do so
- Industry wide methodology with broad support is necessary to develop to label
- Working with independent partners, like the Carbon Trust and the Carbon Disclosure Project, allowed Walkers to amplify effects of and help drive the UK's first carbon reduction label
What next for PepsiCo UK?
They are working with the Carbon Trust in other markets to assess the carbon footprint on other products (including Tropicana in the US).
As an immediate next step Quaker Oats will be the next PepsiCo product to adopt the label and make a two year reduction commitment.
PepsiCo UK will also focus on reducing the environmental impact of our business operations through research into, and implementation of, sustainable agricultural methods.
