SDG Engagement Equity, Q3 2024 case study: Varun Beverages – Federated Hermes Limited

Indian multinational Varun Beverages is one of the largest bottlers of PepsiCo’s drinks in the world. It has posted revenue growth of more than 20% per annum over the past decade and its solid track record supports expectations of further success.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

...
...

Fast reading:

  • Despite having a per capita rate of waste generation below the global average, India has high levels of mismanaged plastic waste and is the highest generator of plastic pollution emissions in the world.
  • The Indian government is to require that 30% of recycled plastic content is used in plastic packaging by 2025-26 (increasing to 60% by 2028-29). Varun has been proactive in this area. The company has already committed to recycling 100% of its used PET bottles and has established a target to incorporate 30% recycled-PET into its packaging in India by 2025.
  • The soft drinks sector is self-evidently a water-intensive industry – and India is among the most water-stressed countries in the world. In 2023, 16% of Varun’s production came from seven plants situated in ‘critical’ or ‘over-exploited’ zones. By adapting production processes and investing in water rejuvenation projects the company has the potential to have a positive impact on local communities.

To the extent that anything on this website constitutes a financial promotion it is exempt from the general prohibition in S21 of FSMA on the basis that the site is only intended for investment professionals as such term is defined in S19 of the Financial Promotions Order. Please note that Pensions for Purpose does not provide consultancy services, advice or personal recommendations on any of the investment opportunities mentioned on the platform. We curate content written by members and do not endorse any underlying funds.

Read the full article

Register for our 'Engagement: driving returns and impact' event with Federated Hermes