PepsiCo sets climate action goals

PepsiCo sets climate action goals
Eugene Willemsen said that Pep Positive consists of three pillars of the company’s climate change strategy — positive agriculture, positive value chain and positive choices. (Supplied)
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Updated 13 November 2022

PepsiCo sets climate action goals

PepsiCo sets climate action goals
  • The US multinational aims to become net zero and net water-positive by 2040

RIYADH: PepsiCo is steering towards ensuring its products are net zero and has net water-positive targets, its regional CEO has said.

Eugene Willemsen, CEO for Africa, the Middle East, and South Asia told Arab News on the sidelines of the COP27 that the company had launched its “Pep Positive” initiative to reach sustainability. 

The US multinational aims to become net zero and net water-positive by 2040, and reduce virgin plastic use by half on a first serving basis by 2030.

Willemsen said that the company wanted to assist others in reducing water usage, and bring positive change “not just within our own four walls, but across the entire value chain.” 

Willemsen said that Pep Positive consists of three pillars of the company’s climate change strategy — positive agriculture, positive value chain and positive choices.

“We are one of the largest companies when it comes to sourcing crops,” he said. 

“We work with about 100,000 farmers across the world, and we use about seven million acres of agricultural land. We want to convert that land into regenerative agricultural practices, which means that we’re going to protect soil health by rotating crops.” 

Willemsen said cover crops would ultimately improve soil health, which in turn would improve yields for the farmers.

“We will further reduce water use through state-of-the-art irrigation techniques (that) also have a very positive impact on overall water use in the area where they operate,” he said. 

Supporting startups 

Willemsen said that PepsiCo launched a “Greenhouse Accelerator Program” in the Middle East region last year to provide grants, mentorships and opportunities to boost sustainable technologies.

“There are lots of innovative ideas out there that we want to tap into and we want to work with the startup community to leverage the creativity that is out there,” he said. 

“We will also support startups, getting businesses off the ground, and hopefully how we can use some of those great ideas to further drive Pep Positive.

Willemsen said that a $100,000 (SR376,000) grant would be awarded to one participant upon completion of the program. 

PepsiCo will also soon launch an event in Egypt to tap into the creativity of the startup community, Willemsen said. 

Sustainability initiatives 

The company last week launched the first recycled plastic bottles, also known as recycled PET, in Pakistan. 

“We’ve now announced, in my division, five markets where we’ve launched recycled PET. We’re aiming to expand that to 10 markets by the end of the first quarter of next year,” Willemsen said. 

PepsiCo set up proper collection systems with recyclers, and has worked with regulators to ensure that recycled PET is approved for food-grade consumption and used in PepsiCo’s packaging, he added.

Willemsen said that his company recently celebrated 60 years of operations in Saudi Arabia. 

“Saudi Arabia for us is one of our key markets. We’re very proud of our presence in the Kingdom and what we’ve been able to create with our local partners,” he said.


World Bank approves $7bn financing program for Egypt

World Bank approves $7bn financing program for Egypt
Updated 7 sec ago

World Bank approves $7bn financing program for Egypt

World Bank approves $7bn financing program for Egypt

RIYADH: The World Bank has announced that it has approved a $7 billion financing program for Egypt that extends from 2023 until 2027, according to a statement.

The partnership framework is done in collaboration with the International Finance Corp. as well as the global insurance firm Multilateral Investment Guarantee Agency.

The financing program is projected to support green and inclusive developments as well as growth activities in the African country.

This money comes as Egypt is struggling with negative factors such as low foreign currency reserves, high interest payments, and high inflation.

It is also feeling the economic impact of the Russia-Ukraine war, as well as reduced tourism, and an increase in food insecurity.

In January, the International Monetary Fund stressed that despite Egypt seeing an “economic recovery” during 2021-2022, “imbalances also started building amidst a stabilized exchange rate.”

The source of World Bank approved funds will be split, with $1 billion annually coming from the International Bank for Reconstruction and Development, in addition to $2 billion over the entire Central Provident Fund period from the International Finance Corp.

In addition to this, the program will also provide Egypt with guarantees from the Multilateral Investment Guarantee Agency.

This is not the first time that the lender has approved a green scheme for Egypt.

In October 2022, it signed off on a $400 million development-financing agreement to help boost the African country’s logistics and transportation sectors and facilitate the transition to low-carbon technology along the Alexandria the 6th of October–Greater Cairo Area railway corridor.

In June last year the World Bank also approved a $500 million loan to help Egypt ensure an uninterrupted supply of bread as the country faced food security concerns amid rising prices and supply disruption due to the Russia-Ukraine war.


Saudi Arabia and China tourism officials discuss Kingdom’s ambitious tourism target

Saudi Arabia and China tourism officials discuss Kingdom’s ambitious tourism target
Updated 12 min 58 sec ago

Saudi Arabia and China tourism officials discuss Kingdom’s ambitious tourism target

Saudi Arabia and China tourism officials discuss Kingdom’s ambitious tourism target

RIYADH: Saudi Tourism Authority’s CEO has held a meeting with China’s Vice Minister of Culture and Tourism to discuss ways to elevate and enhance strategic collaborations in the tourism sector, Saudi Press Agency reported.

Fahd Hamidaddin held talks with Rao Quan amid the Kingdom’s efforts to attract more than 4 million Chinese tourists by the year 2030.

During the meeting, both sides agreed on the general terms of a Memorandum of Understanding to support this target. 

The two sides also settled to introduce and launch several joint tourism initiatives to develop human capacities working within the sector.

Saudi Ambassador to China Abdulrahman bin Ahmed Al-Harbi was also present during the meeting as officials discussed bilateral cooperation prospects in the sector.

In addition to this, the meeting also looked at ways to pave the way for a unified vision as well as efforts through relevant global organizations and associations.

Aside from tourism, the officials reflected on the outcomes of China’s President Xi Jinping’s visit to the Kingdom back in December 2022.

The latest meeting came as part of a promotional tour held by the Saudi Tourism Authority in collaboration with its partners from the Saudi tourism sector in China in an attempt to showcase Saudi tourist destinations and build partnerships between the tourism sectors of both countries.

The tour kicked off in Beijing before moving to Shanghai, and finally Guangzhou.

Earlier this month, the authority completed a successful three days at ITB Berlin, the world’s largest trade fair for the industry. 

Ahmed Al-Khateeb, Saudi minister of tourism and chairman of the authority’s board of directors, opened the Saudi pavilion at the fair, which received a number of presidents, ministers, leaders, and other key officials. 

Al-Khateeb also met officials of major commercial bodies such as TUI Group and FTI Consulting, in addition to leaders of the UN World Tourism Organization and the World Travel and Tourism Council.

The Saudi Tourism Authority is working to develop, promote, and distribute packages and products in partnership with the private sector.

The authority also participates in tourism events, exhibitions, trade shows, and roadshows both locally and globally to measure the tourist experience and suggest ways to enhance it to the relevant stakeholders.


Matarat Holding inks deal with Egis to serve 26 airports in Saudi Arabia 

Matarat Holding inks deal with Egis to serve 26 airports in Saudi Arabia 
Updated 41 min 49 sec ago

Matarat Holding inks deal with Egis to serve 26 airports in Saudi Arabia 

Matarat Holding inks deal with Egis to serve 26 airports in Saudi Arabia 

RIYADH: Saudi state-owned aviation management firm Matarat Holding Co. has inked a three-year contract with consulting company Egis to serve 26 airports in Saudi Arabia, as the Kingdom pushes to develop a global aviation hub in line with the goals outlined in Vision 2030.  

The contract was signed by Matarat’s CEO Mohammed Almaghlouth and Egis’ CEO in the Middle East and South Asia, Alaa AbuSiam, according to a press release.  

The three-year contract aims to establish phased project management portals, update airport project management policies and procedures, and provide technical support for planning and designing. The deal involved following up on the implementation of capital projects with Matarat subsidiaries including Riyadh Airports Co., Jeddah Airports, Dammam Airports, and Cluster2.  

“This contract focuses on providing support in several major areas and activities, which include strategic planning for projects, building an asset management guide, preparing a unified guide for engineering specifications for designing and implementing projects, and following up on continuous improvement of their performance,” said Turki Almubadal, executive vice president of Projects and Technical Affairs at Matarat.

He added that the signing of this contract will help the Kingdom achieve its National Aviation Strategy which aims to increase international destinations to 250 and passenger capacity to 330 million by 2030.  

“We are extremely delighted to be partnering with Matarat to be part of one of the most transformative projects in the Middle East region. The Kingdom’s strong commitment to the aviation sector as part of its 2030 Vision, will surely transform the country into a global hub connecting Asia, Europe and Africa,” said AbuSiam.   

Formerly known as Saudi Civil Aviation Holding Co., Matarat Holding Co. was established in 2013 by Saudi Arabia’s General Authority for Civil Aviation.  

The company aims to develop the Kingdom’s airports and improve their performance, along with contributing to Saudi Arabia’s sustainable development process in the aviation sector.  


OPEC+ likely to stick to its guns despite price slump, delegates say

OPEC+ likely to stick to its guns despite price slump, delegates say
Updated 54 min 40 sec ago

OPEC+ likely to stick to its guns despite price slump, delegates say

OPEC+ likely to stick to its guns despite price slump, delegates say

LONDON: The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, is likely to stick to its deal on output cuts of 2 million barrels per day until the end of the year, even after a banking crisis sent crude prices plunging, three delegates from the producer group told Reuters.

Oil prices hit 15-month lows on Monday in response to the banking crisis that followed the collapse of two US lenders and resulted in Credit Suisse being rescued by Switzerland's biggest bank UBS.

Brent crude was trading around $75 a barrel on Wednesday morning.

Last October OPEC+, which includes Russia, agreed steep output cuts of 2 million bpd from November until the end of 2023 despite major consumers calling for increases in production.

That decision helped to push Brent close to $100 a barrel, but prices have come under pressure since then as rising interest rates to combat high inflation threaten to stymie oil demand growth.

Falling oil prices are a problem for most of the group's members because their economies rely heavily on oil revenue.

Russian Deputy Prime Minister Alexander Novak on Tuesday said that Moscow will continue with a 500,000-bpd production cut it announced last month, lasting until the end of June.

"This is only a unilateral cut of Russia," one of the delegates said.

"No changes for the group until the end of year," he added.

Another delegate added that no further cuts were planned by the group.

A third delegate said the recent slump in oil prices was related to speculation in the financial market, not market fundamentals.

The heads of top oil traders and hedge funds that spoke at an industry event this week said that they expected oil prices to strengthen by the end of the year as continued easing of COVID-19 restrictions in China drive up demand in the world's biggest oil importer.

Pierre Andurand, founder of hedge fund Andurand Capital, was the most bullish and forecast a potential Brent oil price of $140 a barrel by the end of the year.

In its most recent monthly report, OPEC upgraded its forecast for Chinese oil demand growth this year but maintained its projection for global demand growth at 2.32 million bpd.

OPEC+ is due to hold a virtual meeting of its ministerial committee, which includes Russia and Saudi Arabia, on April 3 before a full ministerial meeting in Vienna on June 4.


Saudi real estate rental deals up 81% to reach $20.2bn

Saudi real estate rental deals up 81% to reach $20.2bn
Updated 54 min 58 sec ago

Saudi real estate rental deals up 81% to reach $20.2bn

Saudi real estate rental deals up 81% to reach $20.2bn

RIYADH: Saudi Arabia’s residential and commercial rent deals almost doubled in value last year to reach SR76 billion ($20.2 billion) compared to SR41.9 billion in 2021. 

According to data by the Real Estate General Authority Ejar, the total value of commercial rent transactions amounted to SR40.9 billion last year, while those of residential properties reached SR35.1 billion. 

In residential, the total value of apartment rent deals witnessed a 76 percent year-on-year increase in 2022 to stand at SR29.6 billion.  

The total value of floor deals amounted to about SR3.1 billion, an increase of 51 percent compared to 2021, while the total value of villa deals came in at SR 2.9 billion – a rise of 49 percent.  

Commercial deals for shops grew 108 percent in total value, reaching SR17.4 billion during 2022 while the total value of exhibition and office deals jumped 157 percent and 77 percent to SR7.2 billion and SR4 billion, respectively. 

In terms of cities, Riyadh came first with the highest number of rent deals in 2022 valued at SR24.7 billion, followed by Jeddah with SR17 billion and Makkah at SR4.9 billion. 

The lowest were Najran, at SR249 million, followed by Arar with SR226 million and Al Bahah at SR148 million. 

Riyadh was the highest city in terms of unit supply standing at 470,000 residential units and 181,000 commercial units in 2022. 

Jeddah was the second highest city in terms of supply with 357,000 residential units, up 59 percent year-on-year, and 108,000 commercial units, up 84 percent. 

The volume of units offered for rent amounted to 3.2 million units during 2022, a 53 percent yearly rise, with more than 2.4 million residential units. The volume of commercial units offered for rent amounted to more than 800,000 units. 

Ejar is a comprehensive system that aims to develop the housing and real estate sector in Saudi Arabia by creating sustainable solutions for the challenges of the real estate market that preserve the rights of all parties concerned with the lease.