Shareholder Advocacy Advance: PepsiCo Adopts Human Right to Water Policy

Photo credit: Yucel Tellici

In a major advance for human rights, PepsiCo has adopted a human-right-to-water policy for its domestic and overseas operations. The announcement was made by the beverage giant on World Water Day, celebrated each year on March 22.

The new PepsiCo water policy was adopted after NorthStar Asset Management worked to create a PepsiCo shareholder resolution in 2008, with technical assistance from UUSC's Environmental Justice Program.

PepsiCo's new policy is a commitment to fulfilling the human right to water as defined by the United Nations [PDF]. It commits PepsiCo to act sustainably in the communities in which it operates. PepsiCo is the first publically traded, multinational corporation to adopt such a policy.

"This agreement moves beyond the vague promises of water conservation that many corporations claim to support," said Julie Goodridge, CEO of NorthStar. "It fully commits the company to respecting the right to sufficient clean water, as well as individuals' rights to be involved in the development of processes that extract water from their communities."

The new policy begins:

^{"Water is critical to life, and essential to business. It is the primary ingredient in our company's beverages, and also necessary to produce most of our other products. As such, water quality and quantity are essential in our daily activities, and essential to the activities of our communities, consumers, and other partners."}

UUSC worked closely with NorthStar, a socially responsible investment brokerage firm based in Boston, Mass., to bring forward the 2008 human-right-to-water resolution. UUSC provided technical assistance, helping to educate staff on the human right to water, providing background legal documents, helping to draft the resolution, and advising on strategy for negotiations and shareholder meetings.

"We hope that implementing this policy will have an immediate impact on PepsiCo's operations worldwide and on human rights in communities where PepsiCo businesses are located," said UUSC's Environmental Justice Program Manager Patricia Jones. "This policy will also challenge other private operators to rethink their human rights impacts."

In the coming months, NorthStar and UUSC have a number of strategic aims to promote and ensure the policy's success and implementation.

First, NorthStar and UUSC will work to inform the world communities of the policy, letting them know of PepsiCo's commitment to the human right to water. Second, NorthStar and UUSC will inform the U.N. Human Rights Council's Independent Expert on the right to water of the policy and work with PepsiCo to identify human-rights impacts of PepsiCo's operations in Asia, Africa, and Latin America. NorthStar and UUSC will monitor PepsiCo's reporting annually to shareholders on the policy and its implementation.

PepsiCo uses tens of billions of gallons of water in its food and beverage operations globally, including in many nations facing water shortages.

Find out about the UUSC Water Justice Praxis [PDF]. Learn how you can help advance water justice in your community.