The World Economic Forum’s annual conference in Davos, Switzerland, generated a lot of headlines. Remarks from US officials highlighted the administration’s hostile approach to renewables but ultimately revealed nothing new about US or global policy. Cutting through the noise, however, were insightful comments from the CEO of PepsioCo. The comments reveal that Pepsi looks at sustainability from a strategic viewpoint, not a political one. ESG Dive quotes the CEO stating:
“The debate should not be about sustainability or profitability, but rather a question of short-term costs and long-term costs, Laguarta said at the annual meeting in Davos. ‘For [Pepsi], the debate is: We clearly are about growth. So, growth is our business model, but growth for the long term means that we need to generate this growth without depleting the resources that will give us future growth'”
We’ve long advocated for a business value-based approach on this blog. While political winds change and trends come and go, resiliency is always persuasive. We’ve seen beverage companies understand this particularly well. While all industries are reliant on nature in one form or another, the beverage industry is directly reliant on water. This reliance frames sustainability as core to the future of the business. Climate change will result in water scarcity, which makes access to water more difficult and expensive. Mitigating that outcome is central to the continued success of products that rely on water. Sustainability isn’t an unjustified cost to make consumers “feel better,” it is an investment in the key resources required for businesses and society to function.
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