1. As of December 30, 2023.

We are very clear that pep+ is the future of our company, and we are focused on three interconnected pillars with bold goals:

Our complex value chain 

We aspire to help address global challenges such as the impacts of climate change, social inequality and lack of access to nutritious food.

More than 35 agricultural crops and ingredients are grown around the world before they are made into beloved PepsiCo products at more than 1,000 manufacturing facilities, including more than 290 company-owned facilities.

Our products are then packaged and moved by gas-, biofuel- and electric-powered vehicles across approximately 1.2 billion miles worldwide by our company-owned fleet (and even more through third-party transportation providers) to be sold and enjoyed by our consumers more than one billion times a day.

Once enjoyed, the packaging from our products should be collected and recycled where possible for another use to create a more circular economy.

Governance

We believe that strong governance is the foundation for delivering on our pep+ agenda. Our ESG approach is integrated into — not separate from — our business.

Our corporate governance reflects this approach, with an integrated structure that combines Board and senior leadership oversight with subject-matter and localized expertise that informs our strategy and how we execute it.

The full Board considers sustainability issues to be an integral part of its business strategy oversight. Throughout the year, the Board and the relevant committees receive updates from and discuss with management sustainability, human capital management (including diversity, equity and inclusion) and public policy matters, including the company’s key programs, related goals and progress toward achieving these goals.

To assist the Board in its oversight and to align it with our sustainability agenda, the Board established the Sustainability, Diversity and Public Policy Committee (the Committee) in 2017. The Committee assists the Board in providing more focused oversight over the company’s policies and programs and related risks that concern key sustainability, diversity, equity and inclusion and public policy matters. The Committee is comprised entirely of independent directors and currently reflects a mix of public policy, risk, international and science-related skills, qualifications and experience.

At the executive level, our ESG strategy and progress toward our pep+ goals are also regularly reviewed by the Sustainability sub-committee of our Executive Committee. This sub-committee is composed of members of our senior leadership management team and provides opportunities for our senior leadership to align on major strategic issues relating to sustainability and keep sustainability in focus among competing priorities.

Our reporting strategy

Reporting is one of the primary ways we inform key stakeholders about our ESG ambitions and progress. Our stakeholders include investors, potential and current employees, customers and consumers, suppliers, the communities where we live and work, non-governmental organizations (NGOs), regulators and others.

Understanding that each group’s needs differ, we publish a suite of reporting elements targeted at various sets of stakeholders. We combine disclosure of strategy, policy, data² and case studies according to our understanding of public interest and guided by key sustainability and reporting frameworks.

Our reporting suite consists of the following:

• ESG Summary: A high-level overview of our pep+ agenda and annual progress. It aims to reflect the integration between ESG and our business and is designed to link seamlessly with our ESG Topics A-Z for more detail and the latest updates. Readers can also download a PDF of the report.
• ESG Topics A-Z: An evergreen, encyclopedia-style deep-dive on more than 50 sustainability-related topics designed to provide accessible, consistent information for those looking for greater depth on PepsiCo’s ESG strategy, management, policies, progress and partnerships.
• ESG Performance Metrics: Time-series data³ for our key sustainability goals⁴, intended to support ESG analysis primarily for investors, ESG raters and NGOs.
• Indices and framework responses and other topic-specific disclosures: These map our reporting to specific metrics established by voluntary reporting frameworks including Sustainable Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD) and CDP (formerly the Carbon Disclosure Project) climate, water and forest responses. It also includes specialized reporting, such as our annual Green Bond, Diversity, Equity and Inclusion (DEI) and the PepsiCo Foundation’s Global Impact reports.

2. As a general matter, recent organizational changes (e.g., acquisitions and divestitures) are reflected in our reporting as soon as practical. Unless otherwise noted, goals and progress reflect the impact of our acquisitions of Hangzhou Haomusi Food Co., Ltd. (Be & Cheery), Pioneer Food Group Ltd. (Pioneer Foods), and SodaStream International Ltd. and our divestiture of Tropicana, Naked and other select juice brands (Tropicana). Organizational changes (e.g., acquisitions, mergers, and divestitures) are evaluated to determine if they have a significant impact on our sustainability performance and, as data becomes available, all reported years for metrics impacted by an organizational change are recast to consistently reflect the impact of the organizational change. Targets apply to PepsiCo’s operations as well as our value chain (e.g., franchise bottlers, joint ventures where PepsiCo has operational control, co-manufacturers, etc.) unless otherwise noted

3. For 2023 reporting, we've reduced our time-series data from five years to three years to better align with the number of years in evolving regulatory and voluntary frameworks

4. For detail on how we measure performance against these goals, see Calculation methodology on ESG Topics A-Z

Our sustainability journey

For nearly two decades, PepsiCo has been on a journey to transform the way we do business so that our pursuit to deliver strong financial returns is also responsive to the needs of our stakeholders and the world around us.