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Beverage News

PepsiCo, Kraft named among top green companies

Beverage News graphic
September 12, 2011

Dow Jones Indexes, a leading global index provider, and SAM, the investment boutique focused exclusively on sustainability investing, announced the 2011 results of the Dow Jones Sustainability Indexes (DJSI) annual review.

The DJSI follow a best-in-class approach, including companies across all industries that outperform their peers in numerous sustainability metrics. Each year, SAM invites the world’s 2,500 largest companies, measured by free-float market capitalization, from the 57 sectors to report on their sustainability performance. The result of the Corporate Sustainability Assessment provides an in-depth analysis of economic, environmental and social criteria, such as corporate governance, water-related risks and stakeholder relations, with a special focus on industry-specific risks and opportunities.

SAM annually identifies the top company in each of the 19 supersectors into which the 57 sectors roll up. This year, Purchase, N.Y.-based PepsiCo Inc. ranked No. 1 in the Food & Beverage supersector. PepsiCo has now been named a member of the DJSI six times and the World Index five times.

"Great companies are built to succeed today, tomorrow and well into the future," said Indra Nooyi, PepsiCo chairman and chief executive officer, in a statement. "Our commitment to balancing excellent operating performance with sustainable business practices is a big reason PepsiCo has become one of the world's top performing food and beverage companies."  

Northfield, Ill.-based Kraft Foods also was named to the DJSI. This is the company’s seventh year in a row on the North America Index and sixth year running on the World Index.

Kraft Foods achieved the food industry's leading scores in Innovation Management, Packaging, Corporate Governance, Risk & Crisis Management and Codes of Conduct/Compliance/Corruption & Bribery. This year marks the first time both legacy Kraft Foods and Cadbury businesses were evaluated together as a combined company.

"The Dow Jones Sustainability Index is the gold standard for responsible companies," said Christine McGrath, vice president of global sustainability for Kraft Foods, in a statement. "As we continue on our sustainability journey, this is great recognition for our employees' hard work and an equally great incentive for us to continue raising the bar on our performance."

By the end of 2015, Kraft Foods plans to increase sustainable sourcing of agricultural commodities by 25 percent; reduce energy use in manufacturing plants by 15 percent; reduce energy-related CO2 emissions in manufacturing plants by 15 percent; reduce water consumption in manufacturing plants by 15 percent; reduce waste at manufacturing plants by 15 percent; eliminate 100 million pounds of packaging material; and reduce 50 million miles from its transportation network.

For the first time, Molson Coors Brewing Co., Denver, was named to the DJSI as one of six companies in the Food & Beverage supersector.

"We’re proud to be recognized by the investment community for our improved responsibility performance over the past year,” said Peter Swinburn, Molson Coors’ president and chief executive officer, in a statement. “Our focus on quality, integrity and shared values is critical to the success of our company. As part of our efforts to improve ‘Our Beer Print’ globally, we will continue to find ways to deliver sustainable benefits on behalf of our shareholders, our employees, our customers and the communities where we live and work.”

Following SAM’s Corporate Sustainability Assessment, 41 companies will be added to the Dow Jones Sustainability World Index, while 23 firms will be deleted from the index, resulting in a total of 342 components. One of the largest deletions by free-float market capitalization is The Coca-Cola Co. All changes will become effective with the open of the stock markets Sept. 19.

Source: Beverage Industry
KEYWORDS: Kraft Foods Molson Coors PepsiCo sustainability

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