FFC To PepsiCo: Avoid Sourcing Fuel From Tar Sands

December 5, 2013

FFC and other investors encourage PepsiCo, which operates one of the largest trucking fleets in North America as the continent’s biggest food and beverage business, to adopt a policy to avoid purchasing fuel from refineries that process tar sands, whenever possible. Not all fuels are created equally, and extracting and processing fuels from the Alberta oil sands or ‘tar sands’ is one of the most carbon-intensive, greenhouse gas emitting ways to produce fuel. The development of these oils sands has also been shown to significantly increase levels of carcinogens in watersheds up to 50 miles away. U.S. refineries are required to publicize whether they source from Canadian tar sands, and at least 19 other companies, including Walgreen’s, Columbia Sportswear, Whole Foods and Trader Joe’s have already publicly committed to source fuel, whenever possible, from the dozens of U.S. refineries that process petroleum from tar sands-free sources. PepsiCo has set targets for improving fuel efficiency, and in its commitment to “Help protect and conserve global water supplies” and “work to achieve an absolute reduction in greenhouse gas emissions,” the company is encouraged to avoid sourcing from tar sands. Doing so can also reduce brand risks, given that PepsiCo is currently the public target of a consumer campaign against sourcing from tar sands. FFC is concerned about the carbon-intensity and water pollution of tar sand fuel production and the long-term success of companies in which it invests, and calls for PepsiCo to commit to tar sand-free fuel for both its environmental and business implications. To view the letter, click here