The Asia-Pacific (APAC) region stands as a vibrant hub of growth and urbanization, projected to be the fastest-growing global economy in 2024, playing a critical role in the global supply chain, shaping industries and markets worldwide. However, this remarkable growth is accompanied by significant challenges. The region faces considerable headwinds from climate change, with estimates indicating that up to 63%—or USD $19 trillion—of its GDP is at risk due to nature loss. This pressing reality has created an urgent call for transformative action.
Businesses in the region are increasingly integrating sustainability into their strategies as both an ethical imperative and a pathway to long-term success. Research from IDC highlights that companies in APAC that proactively embrace sustainability in their business strategies not only reduce waste and optimize costs but also enhance operational efficiency, create new revenue streams, attract and retain top talent, and foster product and service innovation.
In this collaborative corporate landscape, partnership is essential for advancing sustainability across the entire value chain. A prime example of this commitment is PepsiCo’s Greenhouse Accelerator APAC Sustainability Edition, now in its second year, which exemplifies how businesses can unite to cultivate innovative solutions for a sustainable future.
Why the Accelerator Program is Essential for Regional Collaboration
In recent years, capital investment has significantly increased in both established companies and smaller organizations that prioritize sustainability and ethical practices. As sustainability becomes increasingly important to investors, customers, and employees, it is crucial to meet rising expectations and remain competitive. To tackle challenges such as plastic waste, corporate carbon footprint, and water conservation, multinationals have increasingly collaborated with startups across the APAC region.
PepsiCo’s Greenhouse Accelerator (GHAC) program is one such strategic initiative designed to partner with innovative entrepreneurs, supporting the company’s goal of achieving net-zero emissions by 2040. This pilot-oriented, mentorship-driven program pairs promising startups with PepsiCo executives, providing critical support through business advisory, product development, supply chain, marketing and collaboration. By focusing on the circular economy, sustainable agriculture, and climate action, the program empowers startups to develop impactful solutions that align with the region’s sustainability goals. This year, ten selected startups will receive USD $20,000 in grants, with the final winner awarded an additional USD $100,000 in Bangkok, Thailand, in September 2024.
Since its inception in 2017, the Greenhouse Accelerator has engaged over 86 companies across the Middle East and North Africa, Europe, Sub-Saharan Africa, the United States, and APAC, collectively generating over USD $20 million in revenue.
Recognizing the potential for growth and success demonstrated in other regions, the GHAC program was launched in APAC in 2023 to address the unique challenges faced here. This initiative has already given rise to seven pilot projects last year that showcase the power of collaboration in achieving long-term sustainability goals.
APAC is a hub for agricultural and food tech innovation, and with new partners joining the effort, PepsiCo aims to leverage its extensive network to positively influence the food ecosystem. A prime example is last year’s winner, Powered Carbon, which transforms carbon dioxide into bacteria for eco-friendly fertilizers. Their innovative approach significantly reduces greenhouse gas emissions compared to traditional fertilizers, and this eco-friendly fertilizer has already been tested on potatoes at PepsiCo’s Shandong Farm in China.
Recognizing the potential for growth and success demonstrated in other regions, the GHAC program was launched in APAC in 2023 to address the unique challenges faced here. This initiative has already given rise to seven pilot projects last year that showcase the power of collaboration in achieving long-term sustainability goals.
APAC: A Diverse Hub for Sustainability
While the Asia Pacific region is experiencing rapid growth, sustaining this momentum relies on strategic investments from governments and businesses, alongside policies that foster innovation and entrepreneurial development.
However, an EY survey highlights a significant gap between the expectations of Asia-Pacific business leaders and investors regarding sustainability. The report reveals that 74% of investors believe companies should prioritize ESG-related improvements, even at the expense of
short-term profits, while only 58% of business leaders share this perspective.
Additionally, a 2023 Statista report highlights that the primary challenge for small and medium-sized enterprises in Asia Pacific in adopting environmental, social, and corporate governance initiatives is aligning these efforts with their internal business growth goals. The second major hurdle is the cost of implementation, with 35% of SMEs citing this as a significant concern.
In this landscape, accelerator programs like GHAC are crucial for the APAC market for several reasons. They drive innovation by equipping startups with the essential resources and mentorship needed to develop groundbreaking solutions that address pressing sustainability challenges.
By fostering connections between startups and established companies, accelerator programs create a collaborative ecosystem that enhances the sharing of ideas and best practices. Moreover, these programs contribute to local economy by promoting entrepreneurship and job creation while enabling scalable sustainable practices for startups.
Collaboration is essential in this ecosystem. Established companies can draw on their resources, industry expertise, and extensive market reach, while startups offer agility, innovative ideas, and fresh perspectives, creating a resilient and innovative market that benefits both businesses and the environment.
The Agenda
The GHAC program’s holistic approach ensures that sustainability efforts are comprehensive, addressing environmental, social, and economic dimensions, aligning with the principles of Pep+ (PepsiCo Positive). GHAC plays a crucial role in PepsiCo’s ambitious pep+ agenda within the APAC region.
In September 2021, PepsiCo launched Pep+, a comprehensive strategy aimed at transforming the company’s operations. By embedding sustainable practices into its core operations, PepsiCo not only aligns with global trends but also anticipates the future demands of consumers and investors alike.
The Pep+ framework is built on three essential pillars. Positive Agriculture focuses on sourcing crops and ingredients that restore the earth, promoting regenerative farming practices. Positive Value Chain aims for net-zero emissions by 2040, while reducing water usage and enhancing packaging sustainability by cutting virgin plastic use by 50% across its global food and beverage portfolio by 2030. Positive Choices encourages healthier lifestyles and sustainable consumer habits by reducing added sugars and sodium in products and promoting diverse, nutritious ingredients. Together, these pillars reflect PepsiCo’s commitment to integrating sustainability and human capital into its business strategy to drive growth and create lasting value.
The Aim: Collaborative Sustainability
The development of Pep+ involved a collaborative effort that brought together a diverse range of stakeholders from PepsiCo’s global operations. Close engagement with internal teams and meaningful discussions with external partners shaped a strategy that aligns with business objectives while prioritizing the wellbeing of ecosystems and communities.
To support this strategy, the Greenhouse Accelerator program plays a crucial role by fostering startups and grassroots initiatives, encouraging innovative solutions that can be scaled throughout PepsiCo’s operations and supply chains.
This strategy is designed to future-proof the business while promoting sustainable growth. By engaging with diverse stakeholders—including investors, NGOs, consumers, industry peers, and local communities—PepsiCo encourages essential collaboration to tackle complex environmental challenges and achieve long-term sustainability goals.
Ultimately, the aim is to fulfill Pep+ goals and create an ecosystem where innovators can thrive and work together for a sustainable future.
Call to action: Join the sustainability movement today! Become a part of PepsiCo’s Greenhouse Accelerator program and help shape a more eco-friendly future together.
To learn more and join the movement, visit greenhouseaccelerator.com/apac/
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