1. Purpose
   1. Human Sustainability
   2. Environmental Sustainability
      1. Frito Lay Canada
      2. PepsiCo Beverages Canada
      3. Quaker
   3. Talent Sustainability

Quaker Foods & Snacks

The origins of our Quaker brand are literally rooted in the earth - the whole grain oat. For this reason we are committed to sustainable practices and to increasing our commitment to environmental sustainability for the benefit of ourselves, our families, our communities and the world we share.

We understand that achieving optimal environmental sustainability is a journey, an ongoing process. We are taking our first steps by carefully evaluating each stage of our business, and seek to improve every aspect of the way we bring oats to our consumers.

We feel the best method of achieving our environmental goals is through a holistic approach, which means all parts contribute to the whole. By integrating sustainability throughout our entire business model, from seed to shelf, it is our hope that the benefits will ripple outward, positively affecting the world we all live in.

At PepsiCo Canada, we incorporate sustainability practices into every facet of our Quaker operations to minimize our environmental footprint. As Canada's largest oat buyer, we take our responsibility seriously to leave as little environmental impact as possible. We strive to have our oats give back more to the soil than they take by:

• Working with Canadian farmers for over 70 years and using 100% percent
  Canadian-grown oats.
• Growing oats which require less water and fertilizer versus most other crops.
• Protecting the soil from erosion and tilling less.
• Using or selling 100% of the oat, which includes providing the oat hulls to a local company to turn into fuel pellets.

It's our goal that by 2015, Quaker operations in Canada will reduce water and electricity consumption by 20%, and fuel consumption and greenhouse gas emissions by 25%. We have already begun working to meet these goals. To-date we have:

• Reduced our water usage at the Peterborough plant by 40% since 2004.
• Installed motion activated lighting in 70% of our Peterborough plant.
• Decreased our landfill waste by 29% from 2007 to 2008.

We are streamlining our packaging to require less paper product. All Quaker branded paper board and corrugate is made from recycled fibres and are themselves recyclable. Many of our oatmeal packages are 100% recyclable and are designed to fit into the recycling systems in place across Canada.