Regulation drives change

1. Regulation drives change.

2. A properly scaled innovation creates change.

3. Business-to-business and business-to-consumer dragons who demand their suppliers to act, create ripple effects of changes.

Here's an example:
A European Chief Executive from the TESCO group held up a pack of Walkers crisps and said:

"We don’t transport air and we don’t sell air”.

Afterward, he warned all suppliers that their products could be pulled from Tesco's range if they didn't fix the problem.

Walkers' owner, PepsiCo, listened to the warning and they started reducing packaging and using more eco-friendly materials like cardboard.
Now Pepsi, the $235bn conglomerate, is doing the same thing to their suppliers.

PepsiCo have promised to cut greenhouse gas emissions by at least 40% by 2030, compared to a baseline of 2015.

The only way to do this is to put pressure on their suppliers since around 92% of PepsiCo’s total emissions come from outside its own operations. They need to persuade and demand suppliers and customers to cut emissions amounting to 22.6mn tonnes of carbon dioxide per year — it's equivalent to take about 5mn cars off the road.

However Pepsi risk falling behind on their climate aims since only 8% of their suppliers have climate targets approved and more than half of their suppliers lack any climate targets at all.

I don't know about you but if PepsiCo were my biggest customer/buyer and I was dependent on them to keep buying from me I would change anything they asked, given this is a real Key Initiative and not just talk.

Some people and companies change since they know it's the right thing to do others do it under threat.

At this point I don't really care why they change as long as they do...


// David Klättborg