TERMS OF REFERENCE Access to Safe Water Solutions in India

TERMS OF REFERENCE Access to Safe Water Solutions in India Access to safe water is an essential building block to improve social, economic and health conditions in communities around the world. Through the PepsiCo Foundation and its partners, PepsiCo is working to provide access to safe water to a total of 25 million people by 2025. For more information, please visit our Access to Safe Water Report. Our approach to access to safe water considers programs that tackle three specific areas of work - Purification to treat water for drinking purposes, Conservation to ensure water is available; and Distribution/Sanitation to provide first time access to water, improve availability, regularity, and reliability via connections and sanitation services. ABOUT THE PEPSICO FOUNDATION Established in 1962, the PepsiCo Foundation and its non-profit partners work to develop innovative, sustainable solutions that address challenges in underserved communities around the world. The Foundation, along with PepsiCo and its employees, seeks to catalyze efforts that advance our Performance with Purpose 2025 goals related to increasing access to positive nutrition, enabling access to safe water and supporting the workforce-readiness of women and girls. PepsiCo Chairman and CEO, Ms. Indra Nooyi, recognizes the significance of the global water crisis, and believes that a company s success is inextricably linked to society s success. Since 2007, PepsiCo and the PepsiCo Foundation have worked with NGOs to help communities with the most need and advocate for new approaches that can help bring lasting solutions. The PepsiCo Foundation has partnered with leading non-profit organizations to now reach 9 million people with safe water access since 2006, far exceeding its original goal of 6 million by the end of 2015. PepsiCo s approach focuses on partnering with respected NGOs and development agencies to establish innovative approaches to collectively change the game, developing effective public-private partnerships and fully engaging their employees and capabilities. With more than USD $30,000,000 spent to date by the PepsiCo Foundation, significant human capital and expertise, and a robust set of NGO and development agency partners, PepsiCo and the PepsiCo Foundation continue to expand its efforts to provide access to safe water in the world s most at-water-risk areas, with a focus on communities near where PepsiCo works. Objective To establish access to safe water programs in India in one or more of these geographies, prioritized as follows: 1. Channo, Punjab (District: Sangrur) 2. Nelamangala, Karnataka (District: Bangalore) 3. Aurangabad, Maharashtra (District: Aurangabad) 4. Palakkad, Kerala (District: Palakkad) PepsiCo s primary interest is in Purification programs in these regions but would consider Conservation programs as well as Distribution/Sanitation programs in order of decreasing 1

priority. This request intends to address partners and/or programs that deliver solutions ONLY for the above geographies. 1) Purification 1 : To establish initiatives that deliver safe, drinkable water solutions at an affordable price in one or more of the prioritized geographies. Will consider programs that improve, establish or create drinkable water solutions, inclusive of, but not limited to, construction of new kiosks or other similar infrastructure or rehabilitation and augmentation of existing schemes. 2) Conservation: To establish initiatives that ensure water is available in one or more of the prioritized geographies. Will consider programs that address water resource management, watershed restoration and waste water treatment. 3) Distribution/Sanitation: To establish initiatives that provide connections to water source including sanitation services in one or more of the prioritized geographies. Will consider market-based programs for household water connections and toilets and installation and/or renovation of existing infrastructure. Program Components The program should address the following three main components: (A) Assessment; (B) Program Management and Execution; and (C) Communications, Outreach and Recognition. Component A - Assessment: Partner demonstrates viability of approach for identified geographies. Engages with PepsiCo India, plant community and key stakeholders to create high-level business case. Activities target priority geographies leveraging partners with proven, innovative solutions and expertise. Component B Program Management and Execution: Overall approach seeks to compliment grantees capabilities with those of PepsiCo to broaden impact. Program should consider opportunities to engage PepsiCo employees in volunteering activities and/or leverage PepsiCo expertise to enhance results. In addition, partner is expected to: i) Conduct community outreach, ii) implement monitoring and evaluation systems to track and evaluate impact, iii) Provide education and training to the local community to ensure program is adapted, and iv) Ensure capacity building of program staff, support organizations and local community to support sustainability of the program Component C - Communications, Outreach and Recognition: This includes i) conducting community outreach to bring visibility to donor in local communities; ii) provide opportunities for PepsiCo employees to volunteer in program-related activities, skills-based volunteering engagements (PepsiCorps) and/or pro-bono days of service; iii) identify and act upon meaningful opportunities to publicize PepsiCo and the PepsiCo Foundation s efforts by engaging key stakeholders, inclusive of, but not limited to press releases and media relations, social media, events and speaking engagements, but only with PepsiCo s prior written consent. Timing: Program implementation expected to begin in Q1 2017. 1 Priority will be given to solutions that deliver drinking water solutions in the prioritized locations. 2

Key Considerations for Evaluation of Partner/Program: Partner is well respected in the region and offers a model that is operationally sound and can be feasibly executed in desired geographies Program results have the potential to be sustainable and scalable beyond project time frame and original investment Program results can be measured and tracked to determine number of people benefitted by geography and by intervention Measurement: Potential grant partners need to be able to meet our measurement and reporting requirements. Key performance indicators will demonstrate performance against agreedupon targets. Grant partners are required to provide bi-annual progress reports to PepsiCo and the PepsiCo Foundation. In addition, annual reporting of key performance indicators through our established on-line tool is required to a third party validator. Proposal: Initial submission is due no later than 5:00 Pm EST, Friday, December 9, 2016 and should include: Concept Note: Three-page summary of key information relative to potential proposal (see attached template) Budget: Overview of estimated costs and related timing (see attached template) PF Concept Note Template_India PF Gran Report Budget_India Proposal To submit your proposal, please send an email to: peppepsicofoundation@pepsico.com Subject line: India Proposal for identified geographies. Not all emails will be replied. Please note that PepsiCo does not accept for consideration unsolicited ideas or advertising slogans from external sources. These materials will be reviewed by PepsiCo and the PepsiCo Foundation. We will then request additional information from organizations whose programs are of greatest interest. The PepsiCo Foundation reserves the right to reject any and all proposals received in response to this request. 3

APPENDIX A PepsiCo India Profile PepsiCo India Region: Leadership through Performance with Purpose PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC food and beverage businesses in the country. PepsiCo s growth in India has been guided by Performance with Purpose, its fundamental belief that the success of the company is inextricably linked to the sustainability of the world around. The Company believes that continuously improving the products it sells, operating responsibly to protect the planet and empowering people around the world is what enables PepsiCo to run a successful global company that creates long-term value for society and our shareholders. Large investor in India with strong brands: PepsiCo has been consistently investing in India, in the areas of product innovation, increasing manufacturing capacity, ramping up market infrastructure, strengthening supply chain and expanding company s agriculture programme. The company has built an expansive beverage and snack food business supported by 62 plants across the country. In two decades, the company has been able to organically grow eight brands, each of which generate Rs. 1000 crores or more in estimated annual retail sales and are household names, trusted across the country. A growing portfolio of enjoyable and wholesome snacks and beverages: PepsiCo India s diverse portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthier products and includes iconic brands like Pepsi, Lay s, Kurkure, Tropicana, Gatorade and Quaker. In addition to new introductions like Lay s Maxx, 7UP Revive and Tropicana Slice Alphonso, the portfolio includes several healthier treats like Quaker Oats, Tropicana juices, rehydrator Gatorade, Tata Water Plus and Quaker flavoured oats. Model partnership with over 24,000 farmers: PepsiCo India has pioneered and established a model of partnership with farmers and now works with over 24,000 happy farmers across nine states. More than 45 percent of these are small and marginal farmers with a land holding of one acre or less. PepsiCo provides 360-degree support to the farmer through assured buy back of their produce at pre-agreed prices, quality seeds, extension services, disease control packages, bank loans, weather insurance, and the latest technological practices. The association with PepsiCo India has not only raised the incomes of small and marginal farmers, but also their social standing. Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to achieve Positive Water Balance in the beverage world, and has been Water Positive since then. In 2015, PepsiCo India saved 12.75 billion litres more that it consumed in its manufacturing operations. The company made this possible through innovative irrigation practices like direct seeding, community water recharging initiatives, and by reducing the consumption of water in its manufacturing facilities. PepsiCo is lauded for its efforts for water conservation and has received numerous awards such as CII National award for water management, Water Digest award for water practices and Golden Peacock award for water conservation amongst others. 4

Care for the environment: PepsiCo India is focused on reducing its carbon footprint. In 2015, PepsiCo s India s Food and Beverage manufacturing operations dependence on nonrenewable energy has reduced by 74% and 62% respectively from a baseline of 2006. This reduction has been on two counts improved operating efficiency and technology intervention of plants and migration to renewable sources of energy such as bio mass fuels (rice husk boilers) and wind turbines. Initiatives such as reduction in use of chemicals, eco-friendly packaging initiatives and efficient waste management help reduce load on the environment. PepsiCo in partnership with the NGO Exnora and local municipalities has also been working on a unique waste collection and treatment model programme called Waste-to-Wealth. The award winning programme has positively impacted more than 500,000 people. Following the successful implementation of the Waste to Wealth model programme, PepsiCo India has handed over four municipalities in Tamil Nadu (Chennai, Nagapattinam, Tenkasi, Cuddalore) and one municipal corporation in Haryana (Panipat), to the respective authority for sustained delivery. Exemplary employment practices: PepsiCo India provides direct and indirect employment to almost 2,00,000 people. The company believes in providing employment and growth opportunities to local talent. Its College of Leadership, ensures early identification of talent, and employees focused development through critical experiences. PepsiCo firmly believes that encouraging diversity means encouraging policies and systems that respect people s special needs. Not only does PepsiCo have a vibrant and diverse workforce, it takes the utmost care to make dynamic business leaders of its employees and foster their career and personal growth through differentiated experiences and a robust leadership development model. 5

APPENDIX B Key Facts about PepsiCo s Operations in Identified Geographies PepsiCo India is focused on improving the impact in individual water-scarce plant neighborhood communities. The company is working with the local panchayats and communities for enhancing ground water table, improving water access and improving farm yields in different locations. The company in association with local NGO s have conducted a detailed water resource analysis and made suitable interventions such as check-dams, recharge wells and pond restoration projects to augment water resources. Channo: The Channo plant is located in Channo village, District Sangrur, Punjab, India. The site is located adjacent to the state highway 64, which connects the site to Channo village and the nearest towns Sangrur and Patiala. We are partnering with farmers in potato farming & DSR. Nelamangala: The Site comes under two Panchayats namely T. Begur (Village) and Budihal (Tanchankoppe Village), Bangalore Rural District, in the south Indian state of Karnataka. The Site is adjacent to the National Highway-4 (NH-4), which connects the Site to nearest towns Nelamangala and Tumkur, and the nearest metropolitan city Bengaluru. Site is very critical as part of the community programs as wells as watershed based source water replenishment. We have taken work towards replenishment of community tanks/ponds in and around the plant and continuing the upkeep of them. Aurangabad: The Site is located in an industrial area developed by MIDC in Wahegaon village, Paithan Taluka of Aurangabad District in the western Indian state of Maharashtra. The Site is located off the Nagpur-Aurangabad-Mumbai highway which connects the Site Aurangabad, Nagpur and Mumbai. The nearest major city is Aurangabad at a distance of ~50 km due north. The nearest airport and major railways station are located in Aurangabad (~ 40-50 km) towards North and Northwest of the Site. Palakkad: Palakkad, with its manufacturing facility located at Puducherry panchayat, Kanjikode (East), Dist. Palakkad. Palakkad district is situated in the South West Coast of India. This district with mountains, forests, and fertile valleys, rivers and mountain streams are rich in flora and fauna. The nearest airport is Coimbatore, 40 kms away. Other two airports are Cochin (155km) and Kozhikode (150km). There have been efforts to repair damaged overhead tanks. PepsiCo has undertaken watershed level community initiatives such as has installed bore wells and set up supply tanks which provides drinking water. 6

CONCEPT NOTE DUE DATE: DECEMBER 2 nd, 2016 Name of Organization: Are you affiliated with a qualified US 501c3 public charity or equivalent? Organization s Core Mission and background (primary funders, Founder profile, staff capability, years of operation, etc): Program name: Area of Focus (Purification, Conservation, Distribution/Sanitation): Amount of request/duration: Is this a newly created or existing program? What location(s) are you targeting for this proposal and why? ASSESSMENT How do you plan to ensure that program is locally relevant and receives local support to ensure success? PROGRAM EXECUTION Describe in detail the full scope of the program or project: Objectives, target population, timeline, key deliverables (by year if multi-year). Please also include information regarding ongoing sustainability of the effort. MONITORING AND EVALUATION How will success be measured? Please think about measuring not just output (services delivered) but outcome (change in behavior, change in state of being) VOLUNTEERING Describe how PepsiCo employees will be able to engage with the program through community volunteering activities such as days of service, skills-based volunteering (PepsiCorps), pro bono service, etc. PROGRAM AMPLIFICATION Will there be collaboration with other organizations on this program/project? If yes, with which organization and what role will they play? AWARENESS AND RECOGNITION Describe how you will identify and act upon meaningful opportunities to publicize PepsiCo and the PepsiCo Foundation s efforts. STAKEHOLDER ENGAGEMENT How will you get stakeholders engaged in news/ activities to help bring visibility in local communities? Is this a multi-year initiative? (Please fill out complementary budget template) What is the annual project budget, not limited to PepsiCo s funds? What % of your organization s total 7

operating budget goes towards operating expenses/overhead? Do you have funding from multiple sources, (Government, corporations, foundations, individuals, etc.)? If yes, please describe. Is this a program/project that the PepsiCo Foundation or PepsiCo India has funded/supported in the past? How do you ensure sustainability after project is concluded and our funds expire? Please limit this document to 3 pages maximum. 8

PF Gran Report Budget India Proposal: Organization Name: Program/Project Name: Contact Name: Grant Amount: Grant Term (dates: start-end): Year (1, 2,or 3): YEAR ONE PROJECTED EXPENDITURES Unit Q1 Q2 Q3 Q4 Yr I Totals Project expenses USD USD USD Administration and Management TOTALS USD - USD USD PROJECTED DELIVERABLES Unit Q1 Q2 Q3 Q4 Number of people benefited (Direct) Number of people benefited (Indirect) Yr I Totals - - - - 9

In Cont. YEAR TWO YEAR THREE CUMULATIVE Q1 Q2 Q3 Q4 Yr II Totals Q1 Q2 Q3 Q4 Yr III Totals Total Budget - - - - - - - Q1 Q2 Q3 Q4 Yr II Totals Q1 Q2 Q3 Q4 Yr III Totals Total outcomes - - - - - - - - - - - - 10