PepsiCo Water Usage Controversy in India

PepsiCo's water usage in India became a contentious issue during the early to mid-2000s, primarily due to the company's perceived role in exacerbating water shortages in a country where access to clean water is a critical concern. Environmental organizations in India criticized PepsiCo for allegedly diverting water resources to produce its beverages, which are considered discretionary products. This criticism highlighted the broader issue of corporate responsibility in water-scarce regions, where the demand for water for agricultural and domestic use often conflicts with industrial needs. The controversy drew significant public attention and raised questions about the sustainability of PepsiCo's operations in India, prompting calls for greater accountability from multinational corporations operating in vulnerable environments. In response to the backlash, PepsiCo initiated a country-wide program aimed at achieving a "positive water balance" in India. This initiative was designed to address the concerns raised by environmental groups and to demonstrate the company's commitment to sustainable water management practices. The program set ambitious goals for water conservation and aimed to replenish the water used in its production processes. The involvement of then-CEO Indra Nooyi, who visited India to engage with stakeholders on water usage practices, signaled the company's recognition of the issue's importance. Despite these efforts, the controversy surrounding PepsiCo's water usage highlighted the ongoing challenges faced by corporations in balancing operational needs with environmental stewardship, particularly in regions where water scarcity is a pressing issue.