Diversity, Equity and Inclusion

ESG Topics A-Z

Diversity, Equity and Inclusion

Why it Matters. Image of three women sitting together and talking.

To PepsiCo:

PepsiCo aims to create a more diverse, equitable and inclusive world. This means addressing inequality in the workplace, in our business partnerships and in our communities. We understand that it is not only the right thing to do, it is the right thing to do for our business. This commitment is woven into our values and our beliefs that PepsiCo is strongest when we embrace the full spectrum of humanity, regardless of what we look like, where we come from or whom we love.

To the World:

We know that bias in the workplace against a wide range of groups occurs around the world. This not only infringes on the human rights of individuals, but also deprives society of full employment, productivity and wealth.

Approach

At PepsiCo, we know that our company can only succeed when our associates and the societies we serve flourish. That's why we are committed to fostering a diverse workforce by creating a collaborative, equitable and inclusive space where everyone, regardless of what we look like, where we come from or whom we love, has a voice that is heard and valued. Because when we have a space to authentically be ourselves and explore each other's ideas with compassionate curiosity, we can deliver more smiles and build a better and more positive workplace and world.

PepsiCo was built on the foundation that we thrive because of our diversity, and we believe we have a responsibility and unique opportunity to help address societal challenges. To meet our pep+ (PepsiCo Positive) ambitions and contribute to a better workplace and world, we will continue to help address inequalities for historically marginalized people and underserved businesses and communities.

Our diversity values apply both in our own workplaces and also throughout our value chain, across four key pillars:

People: a space to be themselves

Our goal is to increase diverse representation, build inclusive leaders across the organization and help uplift people from underserved communities globally. To achieve these goals, we plan to discover and attract diverse talent, retain and develop our talent and foster an inclusive environment within PepsiCo. Since 2016, we have set external goals around gender parity, pay equity and prosperity for the communities we serve. And in 2020, we launched our Racial Equality Journey in the U.S., which among other areas, includes a focus on increasing Black and Hispanic representation at the manager level within PepsiCo to mirror the workforce availability of the communities where we operate.

Business: a place for partners to progress

Our goal is to build more resilient diverse-owned businesses and leverage a broader diversity of partners across our market, distribution network and customers to better reflect the many markets we serve. By investing in diverse suppliers, strengthening diverse-owned businesses and amplifying diverse voices, we will empower historically marginalized people and strengthen our business. We are leveraging our scale and influence across suppliers and strategic partners to increase and fortify our spend with diverse suppliers and leveraging our external partnerships and brand platforms to elevate diverse voices.

Communities: a place for communities to thrive

Our goal is to enhance community prosperity by helping members to earn success, enjoy economic opportunity and gain mobility through investments in education, health, and nutrition as well as workforce readiness. We will work with communities to unlock opportunities and cultivate future talent, meet the needs of our local communities and catalyze positive change. We’re working to drive long-term change by addressing systemic barriers to economic opportunity and advancing economic empowerment.

Culture: a space where everyone belongs

Our goal is to build a workforce that is not only diverse, but genuinely inclusive—a space where whoever walks through our doors sees, feels and knows PepsiCo is a company where they can achieve their maximum potential.

Progress

People: a space to be themselves

In 2023, we maintained our pay equity performance, with men and women paid within 1% of each other,¹ and in the U.S., people of color² and non-minorities paid within 1% of each other¹ as well, after controlling for legitimate drivers of pay such as job level, geographic location and performance ratings.¹^,³ For more information on our pay equity goal, see Pay equity.

We also increased the representation of women and people of color² in our business, including at the leadership level. Within our company, we focused on increasing the representation of Black and Hispanic employees at the manager level at PepsiCo to mirror the workforce availability in the communities where we operate. In 2023, 9.2% of managers in the U.S. were Black and 10.3% were Hispanic. For more on our workforce representation progress, see Employee demographics.

More than 80 Black managers and more than 60 Hispanic managers, along with their direct supervisors, have completed our six-month Breakthrough Organizational Leadership Development (BOLD) program, which instills leadership skills. We also implemented mandatory Unconscious Bias and Inclusive Leadership Training for our U.S. executives. 100% of the required population completed the training.

Business: a place for partners to progress

In 2022, our diverse supplier spend was more than $1 billion in the United States. This includes Tier 2 spend reported by non-diverse suppliers on diverse subcontractors, further demonstrating PepsiCo's commitment to expanding engagement of diverse suppliers in our supply chain. As part of our Racial Equality Journey, we have worked to strengthen relationships with Black- and Hispanic-owned businesses and suppliers in the U.S. In 2022, we spent more than $435 million with Black- and Hispanic-owned suppliers. For more information, please see Supplier diversity.

Communities: a place for communities to thrive

We are working to address systemic barriers, helping catalyze positive change in our local communities. Through the actions of the PepsiCo Foundation and striving to achieve our Positive Agriculture ambitions, we are working to economically empower communities across our supply chain. For example, our One Smile at a Time volunteer program seeks to empower our associates with the resources and time needed to cultivate prosperity in our communities. One Smile at a Time is accessible in more than 21 languages and provides a framework, resources and infrastructure for associates to access and register for volunteering opportunities through the PepsiCo Foundation, our Employee Resource Groups, Green Teams and our individual brands. In 2022, we delivered more than 290,000 hours of service through One Smile at a Time.

Culture: a space where everyone belongs

In September 2022, we reignited The PepsiCo Way to engage and energize our associates, and better defined the seven behaviors to reflect our sharpened focus on human centricity, pep+ and digital.

Employee Resource Groups (ERGs) are the heart of PepsiCo culture and work in combination with the behaviors in the PepsiCo Way. We look to ERGs to speak fearlessly with truth and candor about how the organization can step up its efforts to address inequities in our workforce and society, and how we can all be better allies. Local ERG chapters help make our culture more inclusive and engage associates in our workplace and communities. In 2022, our ERGs worked internally and externally to support the PepsiCo community. For example, last year, our EQUAL ERG teamed up with Doritos to celebrate Reading Pride. Our MOSAIC Canada team provided over $1,000,000 in scholarships for Black students in Canada.

For more information on our efforts to improve diversity in the workplace, in our value chain and in our communities, see the Diversity, Equity & Inclusion page on our website and our Racial Equality Journey progress updates.

What's next?

In the coming year, we will continue to bring our pep+ diversity, equity and inclusion goals to life by prioritizing:

Racial equality and justice: Continuing our Racial Equality Journey in our offices and with our suppliers;
Community investment: Investing in our communities across the world to tackle systemic inequities; and
Workplace diversity: Building an inclusive workforce that reflects the real world and improving opportunities for all.

¹Based on base compensation.

²Blacks, Hispanics and Asians.

³71 countries included in 2023 analysis, representing more than 99% of salaried population.