Pepsico’s “water positive” schemes and Jugaad Innovation

In a book titled “Jugaad Innovation”, Radjou, Prabhu and Ahuja write about Pepsico’s water positive supply chain in India i.e., the company saves more water than it uses. The secret – enabling “direct seeding” rice planting, thus saving 70% of the water use, and using local village innovators and low capital intensity solutions, called Jugaad innovation. Given that this water saved exceeds water use in the rest of the company’s operations in India, they are termed water positive. Should efforts by a company to create savings that net out its use be a permissible definition of water positive supply chains ? Is the logic the same if a firm were to purchase “water credits ” or “carbon credits” to net out its carbon or water usage ? How important is the need for these innovative approaches to reduce environmental impact to be low capital intensity projects ?

About aviyer2010

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