The implementation of the alternative energy installations within the production environment can potentially decrease the level of traditional resources utilization. However, the considerations about the net zero project must be based on numerous factors, including the company’s performance, some current trends in the market, and potential benefits of the proposed innovations. Taking all these aspects into account allows determining the expediency of the net zero facility in Casa Grande.
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From the perspective of the environmental sustainability director, Al Halvorsen, there are both prejudices and benefits of the net zero facility. If I were Al Halvorsen at PepsiCo, I would consider both positive and negative outcomes of the project. For instance, the affirmative aspects bring multiple advantages for the company, including strengthened brand value, reduced environmental impact, and decreased spending on water, gas, and electricity.
On the other hand, there is a range of side effects, resulting from the implementation of this plan, which primarily concern the payback period of the energy projects. Therefore, I would better oppose the idea of this innovative plan and propose several corrections that would not put a burden on the company’s budget. When arguing the case in front of Frito-Lay’s executive capital expense committee, it is necessary to provide suggestions on gradual implementation of the renewable resource projects at Casa Grande. Instead of water, electricity, and fuel substitution at one time, each stage should be adopted separately. That way the efficiency of each project could be evaluated apart, so it will be evident which of them is the most cost-saving.
The implementation of the net zero project at the Casa Grande facility was adopted primarily because of the geographical position. Casa Grande desert location in the Colorado River watershed with the consistent sunlight reveals a huge potential for the water-saving technologies and solar energy generation (Larson and Teichman 7).
Vast unsettled lands in Arizona near Casa Grande site provide a room for innovative projects’ testing. In addition to the substitution of conventional water, gas, and electricity resources, FLNA could put windmills that also generate energy using the power of wind for the production purposes. In case of the successful outcome, this net zero facility would be a great proof of adherence to the environmental sustainability principles in FLNA.
In case the company wants to gain the customers’ loyalty and respect, it also needs to unfold data concerning the greenhouse gas emissions annually so that people can track the company’s progress regarding its environmental commitment. That is why FLNA and Climate Leaders, the company that has been publicly disclosing its corporate emission since 2002, signed a partnership agreement (Larson and Teichman 6). According to this convention, the company challenged itself to reduce carbon dioxide emissions and inform the publicity on its progress. The correlation between the greenhouse gas emissions indices with the established benchmarks would also allow analyzing the effectiveness of the renewable sources projects.
Indra Nooyi, the CEO and chairwoman at PepsiCo, has significantly increased the company’s revenues and enhanced its brand image over the last several years. The strategy of Nooyi includes three major elements: human, environmental, and talent sustainability (Nelson and Quick 401). The first aspect assumes that people obtain both tasty and nutritious snacks. The second constituent implies a strong correlation with the principles of environmental protection. Talent sustainability is about creating a corporate culture where each employee is willing to work for the company for long. Based on this, the net zero facility aligns with the goals of Indra Nooyi so that FLNA positions itself as the steward of the earth.
While some companies make changes in their production environments by substituting hazardous materials with the natural ones, others alter their production processes. Frito-Lay belongs to the latter as decided to implement the net zero facility in Casa Grande. Even though this project has an extended payback period, it correlates with the principles regarding environmental sustainability and conceals great potential to improve the company’s brand image.
Larson, Andrea, and William Teichman. “Frito-Lay North America: The Making of a Net Zero Snack Chip.” Darden Business Publishing, case 0112, 2009.
Nelson, Debra, and James Campbell Quick. Organizational Behavior. Cengage Learning, 2013.