Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water conservation
• Energy conservation
• Packaging reduction
• Employee safety and inclusion
• Community investment
• Sustainable agriculture

Environmental Achievements

• Improved global operational water-use efficiency by 20 percent per unit of production four years ahead of schedule.
• Provided access to safe water to three million people three years ahead of plan.
• Reduced packaging weight of products by more than 350 million pounds over the last five years.
• Deployed nearly 200 electric trucks in the U.S., the largest commercial fleet of all-electric delivery trucks in the country.

Social Achievements

• Reduced Lost Time Injury Rate by 32 percent in 2012.
• Ranked as one of the “World’s Best Multinational Workplaces” by the Great Place to Work Institute.
• Ranked as one of the “Best Companies for Leaders” by Chief Executive magazine.
• Partnership with Magic Breakfast to provide nutritious breakfasts to 6,000 children in the U.K.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic slowdown
• Shifting global economic power
• Changing consumer preferences and habits
• Intensifying consumer and government focus on health and wellness
• Sustained commodity price increases and volatility
• Growing environmental consciousness
• Transforming global retail environment

Mitigation Strategies

• Refocused efforts on key global brands and categories in developed markets.
• Migrated portfolio towards attractive, high-growth spaces (Good-for-You products, emerging markets).
• Accelerated benefits of One PepsiCo (integrated supply chain, capability sharing).
• Aggressively built new capabilities (global operating model, innovation, R&D).
• Built a second-to-none team and culture.
• Delivered on the promise of Performance with Purpose (financial performance, environmental sustainability, human sustainability, talent sustainability).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Regulatory changes to reduce greenhouse gases

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Stockholm Industry Water Award
• U.S. Water Prize
• Fortune’s ‘World’s Most Admired Companies’
• Barron’s ‘Most Respected Companies’
• Ethisphere’s ‘World’s Most Ethical Companies’

Environmental Metrics

ESG Focus Areas

• Human Sustainability
• Environmental Sustainability
• Talent Sustainability

Environmental Achievements

• 550 million pounds of packaging weight removed from our portfolio
• 16% improvement in energy efficiency
• 23% reduction in operational water use per unit of production
• 93% increase in sustainably farmed acreage through our Sustainable Farming Initiative
• 850 million liter reduction in absolute water use
• 93% of our waste diverted from landfill

Social Achievements

• 1 billion dollars invested to support communities where we operate since 2006
• 1.4 billion dollars spent with minority- and women-owned businesses
• 10 consecutive years named one of World’s Most Ethical Companies® by Ethisphere
• 100 score on the Human Rights Campaign’s Corporate Equality Index for our LGBT efforts
• 6 million people provided access to safe water through partnerships (2008–2014)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global economic growth remained sluggish
• Foreign currency pressures were severe
• Regulatory pressures intensified
• Instability and violence shook every corner of the globe
• Changes in consumer preferences
• Increased demand for healthier products
• Increased competition

Mitigation Strategies

• Adjusted our sails and kept PepsiCo on course
• Met or exceeded all full-year financial targets
• Continued multiyear track record of success
• Organic revenue grew 5%
• Core gross margin improved by 140 basis points
• Core operating margin improved by 30 basis points
• Core net return on invested capital improved by 210 basis points
• Core constant currency earnings per share grew 10%
• Investments in brand building and innovation
• Productivity initiatives
• Global operating model
• Cost reduction efforts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Healthier Products
• Healthy Workplace and Culture
• Healthier Communities

Environmental Achievements

• Improved water use efficiency by more than 25% across production locations from 2006 to 2015, saving roughly $80 million over five years.
• Improved energy efficiency in legacy operations by nearly 18% from 2006 to 2015, delivering more than $96 million in estimated savings.
• Recycled or reused 94% of waste in production facilities in 2015 and removed roughly 100 million pounds of packaging materials from the market, yielding $25 million in savings.
• Saved more than $600 million since 2011 by improving water and energy efficiency, reducing packaging materials, and cutting waste.

Social Achievements

• Expanded paid family leave.
• Designed an on-site daycare planned to open at Purchase headquarters in 2017.
• Expanded flexible work arrangements.
• Enhanced learning and development programs.
• Supported the people of Flint, Michigan, donating roughly 6.5 million bottles of water and opening help centers.
• Launched a PeanOat malnutrition prevention trial with more than 1,000 low-income children in Mexico.
• Supported Magic Breakfast in the UK, offering more than 30,000 children a healthy start to their day.
• Tripled the number of girls benefiting from the “I am PepsiCo” mentoring and scholarship program in Pakistan.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Changing consumer preferences toward healthier products.
• Taxes or other limitations on the manufacture, sale, or distribution of products.
• Uncertain and volatile macroeconomic conditions, including currency fluctuations.
• Climate change and water scarcity.
• Political, economic, and social instability.

Mitigation Strategies

• Shifting portfolio toward more “good-for-you” and “better-for-you” products.
• Increased investment in R&D ($3.5 billion cumulatively over five years).
• Collaborating with retail partners to increase sales and engage consumers.
• Investing in digital capabilities for e-commerce.
• Embracing environmentally responsible business practices (water conservation, energy efficiency).
• Focusing on employee development and ethics to attract talent and enhance productivity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LIFEWTR premium bottled water
• Hello Goodness healthy vending platform
• Products with reduced sugar, sodium, and saturated fat

Awards & Recognition

• Tropicana Essentials Probiotics earned an “Innovation of the Year” award from Beverage Industry magazine.

Environmental Metrics

ESG Focus Areas

• Products
• Planet
• People
• Ethics & Corporate Governance
• Supply Chain Management

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Created a Public Policy and Sustainability Committee in 2017 to provide focused oversight for sustainability matters.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core Guidelines

Certifications: Null

Third-party Assurance: Bureau Veritas (for specific data points)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Sustainable Packaging
• Water Sustainability

Environmental Achievements

• Avoided more than 480,000 metric tons of GHG emissions compared with virgin plastic using rPET procured through Green Bond proceeds.
• Avoided the use of more than 5.5 billion liters of water and the emission of more than 230,000 metric tons GHG emissions per year through investments in water- and energy-efficient technologies.
• Replenished an estimated 1.3 billion liters of water back into water-stressed watersheds.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Technical and regulatory challenges in achieving packaging goals.
• Potential for new or unanticipated obstacles in achieving packaging goals.

Mitigation Strategies

• Commitment to moving forward with innovative packaging design solutions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement of rPET

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Principles

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Agriculture
• Packaging
• Water
• Energy and Climate Change
• Deforestation
• Operational Waste and Food Waste
• Nutritional Product Profile
• Marketing and Labeling
• Food Quality and Safety
• Community Engagement
• Employee Talent and Diversity
• Human Rights
• Workplace Health and Safety
• Public Policy Engagement
• Financial Performance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core Guidelines

Certifications: Null

Third-party Assurance: Bureau Veritas (for direct and indirect GHG emissions, energy, waste, water, and health & safety data from company-owned plants)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Ethics & Corporate Governance
• Stakeholder Engagement
• Supply Chain Management
• Agriculture
• Packaging
• Water
• Energy and Climate Change
• Deforestation
• Operational Waste and Food Waste
• Nutritional Product Profile
• Marketing and Labeling
• Food Quality and Safety
• Community Engagement
• Employee Talent and Diversity
• Human Rights
• Workplace Health and Safety
• Public Policy Engagement
• Financial Performance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core Guidelines

Certifications: Null

Third-party Assurance: Apex

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Agriculture
• Packaging
• Water
• Climate
• Product
• People

Environmental Achievements

• Nearly 87% of potatoes, whole corn, oats, and oranges sustainably sourced
• 99% sustainably sourced palm oil (100% RSPO certified)
• 100% sustainably sourced cane sugar
• Improved water-use efficiency by 15% in our agricultural supply chain in high water-risk areas
• Improved operational water-use efficiency by 25% in high water-risk areas
• Replenished 18% of the water used in manufacturing operations in high water-risk areas
• Reduced absolute GHG emissions by 23% (Scope 1 & 2)
• Reduced absolute GHG emissions by 3% (Scope 3)

Social Achievements

• Delivered safe water access to more than 55 million people
• 41% women in management roles
• Pay equity program: Women and men are paid within 1% of each other
• Invested $64.7 million to provide resources for workforce readiness and empower women in the food system and farming

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Systemic barriers related to cultural norms, sociopolitical disruption, infrastructure deficiencies, and lack of well-established legal systems prevented achieving 100% sustainable sourcing for direct-sourced crops.

Mitigation Strategies

• Continuous improvement process to establish full sustainability
• Prioritizing crops and commodities from the 2020 goal scope under the new Positive Agriculture agenda

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: RSPO, Bonsucro

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Positive Agriculture
• Positive Value Chain
• Positive Choices

Environmental Achievements

• More than doubled regenerative agriculture footprint (from >345,000 acres to >900,000 acres)
• Close to meeting 2025 operational water-use efficiency goal in high water-risk areas
• Improved agricultural water-use efficiency by 14% (compared to a 2015 baseline) in high water-risk watersheds
• Vallejo, Mexico facility achieved zero freshwater consumption for over 200 days in 2022
• Funza, Colombia facility operated using zero freshwater for over 200 days in 2022
• Kolkata, India facility developed technology to recover more than 50% of water used in potato chip cooking process

Social Achievements

• Met goal to increase Hispanic representation in U.S. managerial positions three years early
• Sustainably sourced approximately 55% of key ingredients
• Positively impacted the livelihoods of more than 11,000 people in agricultural supply chain
• Employees volunteered more than 290,000 hours through One Smile at a Time program
• Supplier Diversity program surpassed $400 million annually spent with Black and Hispanic-owned suppliers
• Provided nearly 1,800 scholarships to students across the United States

Governance Achievements

• ESG issues are an integral part of Board's business strategy oversight
• Sustainability Committee regularly reviews pep+ strategy and progress

Climate Goals & Targets

Environmental Challenges

• Reducing the amount of virgin plastic in packaging
• Reducing emissions in the value chain
• Changing a company of PepsiCo's size and complexity
• Limited availability and high cost of recycled content
• Lack of sufficient collection, sortation and waste management infrastructure
• Varying consumer behavior across markets
• Increased Scope 3 emissions due to business growth

Mitigation Strategies

• Working with others to advocate for regulatory reform
• Driving big picture changes in the global food system
• Investing in public-private partnerships
• Bringing partners and suppliers along on the journey
• Working with industry players, governments, NGOs, start-ups and consumer organizations
• Investing in new water-efficient manufacturing processes and technologies
• Piloting innovative water treatment technology
• Leveraging partnerships to identify solutions across the value chain
• Advocating for smart policies
• Investing in recycling infrastructure
• Lightweighting bottles, reducing film thickness, minimizing packaging materials
• Incorporating recycled content and bio-based materials
• Transitioning from plastic to alternative materials such as paper
• Expanding SodaStream business, refillable bottles, reusable cups, powders and concentrates

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Sourcing Program
• Land Policy
• Global Human Rights Policy
• Stewardship of Forests and Natural Ecosystems Policy
• Global Policy on Sustainable Palm Oil

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Flooding
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Carbon taxes

Opportunities

• Development of energy-efficient products
• Sustainable energy generation
• Greener buildings
• Cleaner transportation
• Regenerative agriculture practices
• Heat-resistant crops

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, CDP

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)

Sustainable Products & Innovation

• SodaStream
• BioPET bottle
• Commercially compostable chip bags
• Label-free PET bottle
• Products with reduced added sugars, sodium, and saturated fat
• Products with diverse ingredients (legumes, whole grains, plant-based proteins)

Awards & Recognition

• Terra Carta Seal

Environmental Metrics

ESG Focus Areas

• Positive Agriculture
• Positive Value Chain
• Positive Choices

Environmental Achievements

• Reduced virgin plastic use
• Reduced Scope 1 and 2 emissions
• Doubled regenerative farming footprint
• Improved water efficiency
• Introduced innovative new packaging
• Reached 25% improvement in operational water-use efficiency in high water-risk areas (2025 goal achieved two years early)
• Approximately 80% of the company’s direct global electricity needs were met with renewable electricity mechanisms

Social Achievements

• Women and underrepresented groups making up a growing portion of leadership
• More than 11,000 employees volunteered more than 163,000 hours globally
• 45% women in management roles globally
• More than 27,000 PepsiCo employees completed Inclusive Leadership Training since 2019
• Approximately 30,000 PepsiCo employees completed Unconscious Bias course since 2020
• Nearly $30 billion spent over the past 40 years with U.S.-based certified, diverse suppliers

Governance Achievements

• Strong governance integrated into business strategy
• Board and committees receive regular updates on sustainability issues
• Sustainability, Diversity and Public Policy Committee established in 2017

Climate Goals & Targets

Environmental Challenges

• Systemic changes needed in climate and packaging
• Reducing Scope 3 emissions (agriculture, packaging, transportation)
• Building sufficient collection, sortation and waste management infrastructure for packaging
• Addressing climate-related risks to agriculture, operations, and supply chain
• Water insecurity globally

Mitigation Strategies

• Strategic partnerships and engagement with value chain partners
• Investing in new technologies for decarbonization and sustainable packaging
• Sustainable Operations from the Start guiding principles for new operations
• Acquiring electric, hybrid, and natural gas vehicles
• Expanding use of renewable energy sources (biogas, HVO)
• Improving water-use efficiency in manufacturing and agriculture
• Replenishing water and improving watershed health
• Increasing safe water access for communities
• Multi-pronged packaging strategy (Reduce, Recycle, Reinvent)
• Collaboration with stakeholders on packaging solutions
• Advocating for smart policies and infrastructure investment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Sourcing policies (Land Policy, Global Human Rights Policy, Stewardship of Forests and Natural Ecosystems Policy)
• No Deforestation, No Peat, and No Exploitation (NDPE) commitment in palm oil supply chains

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Soil degradation

Transition Risks

• Regulatory changes
• Market shifts
• Decarbonization challenges

Opportunities

• Development of energy-efficient products and processes
• Regenerative agriculture
• Renewable energy adoption

Reporting Standards

Frameworks Used: SASB, TCFD, CDP

Certifications: ISO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Paper-based solutions to replace plastic rings
• Products with rPET in beverage packaging
• Sustainable packaging solutions with recycled content
• Returnable bottles
• SodaStream products
• Reusable cup solutions

Awards & Recognition

• Stockholm Industry Water Award
• Climate Leadership Awards
• Terra Carta Seal
• Industrial Water Reuse Champions Award
• CDP Water Security ‘A’ List score

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Agriculture
• Supply Chain Sustainability
• Biodiversity
• Gender Equality

Environmental Achievements

• Partnering with various organizations to implement regenerative agriculture practices across millions of acres, aiming for significant GHG emission reductions (e.g., up to 3 million metric tons with SWOF, PFI, and ICGA partnership by 2030).

Social Achievements

• Launched a public-private partnership to advance gender equality and environmental sustainability in agricultural supply chains.
• Supported smallholder farmers through various initiatives (e.g., Bonsucro certification in Mexico).

Governance Achievements

• Engaging in pre-competitive collaborations with industry peers to address systemic agricultural challenges.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on agricultural supply chains.
• Need for improved sustainability practices among smallholder farmers.

Mitigation Strategies

• Investing in climate-resilient agricultural practices and technologies.
• Partnering with organizations to provide training and support to farmers.
• Developing and implementing sustainable sourcing strategies.

Supply Chain Management

Responsible Procurement

• Sustainable sourcing initiatives
• Partnerships with organizations promoting sustainable agriculture

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on agriculture

Opportunities

• Regenerative agriculture

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 13: Climate Action
• SDG 5: Gender Equality
• SDG 15: Life on Land

PepsiCo's initiatives aim to improve food security, mitigate climate change, promote gender equality, and protect biodiversity.