Water scarcity is a core #ESG concern. Water quality is critical to economic development and #biodiversity, yet it is overlooked as a key risk exposure.
PepsiCo’s commitment to being ‘Net Water Positive’ by 2030 is an exciting development in the water space and (partially) addresses the interlinked issues of scarcity and quality. The commitment includes actions such as reducing water use, returning more than 100% of water used into local watersheds in high-risk areas*, and partnering with WaterAid.
*According to CDP, only 4.4% of reporting companies set and measure water pollution reduction targets. As of their latest report, PepsiCo leaves the majority of their water quality actions to ‘responsible management.’ From the water science and management POV, Pepsi has the potential to further develop their #esgstrategy with additional commitments to reduce water pollution (especially in their agricultural supply chains) and expand their commitment to returning water to the environment to all places they extract. The financial and impact-weighted costs of inaction are high.