PepsiCo has adopted strict corporate standards that govern our operations and ensure accountability for our actions. Such policies cover areas of Corporate Governance, Human Sustainability, Environmental Sustainability and Talent Sustainability.
Selected policies are discussed in detail below. See all of our policies
Human Sustainability Policies
Quality & Food Safety Programs
PepsiCo is dedicated to producing the safest, highest-quality and best-tasting beverages and foods in every part of the world. Developing and maintaining robust food safety programs is how we assure safety for every package, every day in every market. PepsiCo has detailed internal programs and procedures for food safety. Below is a summary of our policies, programs and actions designed to keep our products safe and meeting high quality standards.
PepsiCo Food Safety
PepsiCo has an excellent track record in delivering safe products - this work is guided by the PepsiCo Food Safety Policy. Our efforts are focused on building a sustainable food safety program and providing the framework to develop and sustain food safety of existing brands and new innovation. The scope covers the design, manufacture and distribution of beverage and food products. Our programs and procedures apply to all current and future divisions in PepsiCo.
PepsiCo quality professionals assess product compliance to PepsiCo's Quality Policy. This program is focused on processes and procedures supporting quality policies and prioritization of critical risk areas. Our quality agenda is led by quality professionals in various regions who oversee the following areas:
- Food Safety
- Innovation (R&D)
- Manufacturing Quality
- Co-Manufacturing Quality
- Supplier Quality
- Plant Quality
Global Policy on Bioengineered Food and Ingredients
PepsiCo is dedicated to producing the highest quality, great tasting food and beverage products in every part of the world, ensuring all products meet or exceed appropriate safety and quality standards. PepsiCo only uses ingredients that have been reviewed and approved by appropriate food authorities and governments for food safety and compatibility with the environment.
PepsiCo’s Food Safety and Regulatory Affairs Department and our suppliers work closely together to assure the safety, integrity, and authorized use of bioengineered ingredients and products. In addition, our scientific and regulatory specialists track emerging trends and current scientific reports on issues which are critical to maintaining our high standards in food safety and compliance.
PepsiCo acknowledges the importance for farmers and for society that utilizing bioengineered (genetically modified) crops can offer, such as resistance to weeds, pests and diseases, resistance to climatic stress, reducing the need for agronomic chemicals, and potential economic and productivity benefits in certain growing regions. Bioengineered crops that have been assessed and approved by governmental food authorities may become an increasingly valuable tool, both for sustainable food production and to ensure growing populations across the globe can be fed.
PepsiCo recognizes the need for high standards of safety concerning bioengineered ingredients and the importance of external stakeholders for engaging in dialogues on any concerns or feedback.
PepsiCo Statement on Use of Genetically Modified Ingredients in the U.S.
Providing consumers with safe products is PepsiCo's number one priority, and we understand that some consumers have questions about genetically modified food ingredients.
The use of genetically modified (GM) ingredients is safe for people and our planet, and also has a number of important benefits.
Many of the most influential regulatory agencies and organizations that study the safety of the food supply, including the U.S. Food & Drug Administration, the American Medical Association, the World Health Organization, Health Canada, the U.S. Department of Agriculture and the National Academy of Sciences, have found that genetically modified food ingredients are safe and there are no negative health effects associated with their use.
GM technology adds desirable traits from nature, without introducing anything unnatural or using chemicals, so that food is more plentiful.
It is important for our consumers to know that this technology is not new. In fact, it has been around for the past 20 years, and today, 70-80% of the foods we eat in the United States, both at home and away from home, contain ingredients that have been genetically modified.1 If the ingredient label on any food or beverage product contains corn or soy, it most likely contains genetically modified ingredients, as a very high percentage of those crops grown in the U.S. use GM technology. A high percentage of other ingredients in the U.S., such as sugar beets, are grown with the use of GM technology as well.
Many ingredients grown using GM technology require fewer pesticides, less water and keep production costs down. In fact, GM technology helps reduce the price of crops used for food, such as corn, soybeans and sugar beets by as much as 15-30%.2 In addition, one in eight people among the world's growing population of seven billion do not have enough to eat, and safe and effective methods of food production, like crops produced through GM technology, can help us feed the hungry and malnourished in developing nations around the world.
PepsiCo will continue to engage in an informative dialogue with our consumers so that they understand the safety, prevalence and benefits of GM ingredients and can make informed choices for themselves and their families.
For more information, we encourage you to visit www.factsaboutgmos.org.
Advertising to Children
PepsiCo has taken several important steps to ensure we are employing responsible advertising practices. We joined the International Food & Beverage Alliance (IFBA), a Swiss-based NGO, comprising multinational food and beverage manufacturers, to adopt a worldwide voluntary commitment to advertise to children under the age of 12 only those products that meet specific nutrition criteria. PepsiCo also adopted a global company policy that is consistent with IFBA's policy. Initially, its implementation was focused on beverages worldwide and foods and snacks in certain markets. By the end of 2010, we had fully implemented our policy. In 2010, we announced strict science-based criteria that ensure only our most nutritious products meet the standard for advertising to children under the age of 12.
In 2012, we strengthened our Advertising to Children Policy to define advertising to children to mean that we will not buy advertising in programs with an audience profile greater than 35 percent of children under 12 years of age. Previously, our policy applied to audiences consisting of greater than 50 percent of children less than 12 years of age. This policy change is currently being rolled out and will be fully implemented by the end of 2013. Our policy continues to provide that PepsiCo will advertise only to children under 12 appropriate products that meet PepsiCo's strict, science-based nutrition criteria for advertising to children.
As verified by a third party, we achieved 99 percent compliance by the end of 2012 in globally representative markets such as Russia, China, Saudi Arabia and six countries in the EU, all of which were monitored for compliance with our Advertising to Children Policy. Additionally, we achieved 100 percent compliance with our U.S. and Canada Advertising to Children pledges, as verified by the Children's Food & Beverage Advertising Initiative in the U.S. and Advertising Standards Canada.
Children's Food and Beverage Advertising Initiative Pledge of PepsiCo, Inc.
PepsiCo, Inc. is proud to be one of the first companies to commit as a participant in the Children's Food and Beverage Advertising Initiative (CFBAI). As an industry leader in the discussions of children's marketing, PepsiCo believes children are a special audience, and we take particular care developing advertisements and evaluating programming that carry messages to children.
PepsiCo Global Policy on the Sale of Beverages to Schools
Our global policy for beverage sales in schools focuses on water, juice, milk and low-calorie beverages that support healthy nutrition habits among students. PepsiCo-owned bottling operations offer healthy hydration options for students and align with schools to eliminate full-calorie soft drinks in primary and secondary schools. We will work with our independent franchise bottlers, third-party vending companies and other PepsiCo beverage distributors, as well as schools and local authorities, to further align this policy beyond PepsiCo's direct operations. Because our policies alone cannot assure the actions of businesses outside of our operational control, it should be noted that our products may be sold in schools by independent third parties. However, we view our policy as an opportunity to engage our industry peers and local authorities in adopting similar policies. It is only through a collaborative, industry-wide effort that a full-scale implementation of such a policy can be achieved.
PepsiCo Beverages North America School Policy
Through our bottling partners and third-party distributors in the U.S., PepsiCo Beverages North America is committed to offering schools a portfolio of low-calorie and nutritious beverage choices. This wide variety of products includes, bottled waters, juices, sports drinks and no- or low-calorie carbonated soft drinks, juice-flavored drinks and iced teas. Schools decide which beverages are available, and where and when they are sold.
PepsiCo Food Service Policy for Snacks in K-12 Schools
PepsiCo Food Service (PFS) is committed to helping schools offer nutritious and lower-calorie snack choices to their students. By doing so, we can help parents and educators teach children healthy habits — in the calories they consume and the calories they burn. Although we do not decide which snacks are available on school campuses — schools do — and we do not sell snack products directly to schools — food distributors, vending companies and other independent businesses do — we believe we can play an important role in helping students have access to nutritious and lower-calorie snack choices while at school.
Environmental Sustainability Policies
PepsiCo has a number of policies and programs to compliment the PepsiCo Global Supplier Code of Conduct, which clarifies our global expectations in the areas of business integrity, labor practices, associate health and safety, and environmental management. These standards apply to all stages of our upstream value chain and are meant to be complemented, as appropriate, by additional guidelines, specifications, and practical tools at the local or regional level, while respecting and complying with national laws and regulations.
The policies reference global standards and provide PepsiCo suppliers with our requirements. As discussed in more detail below, there are five environmental policies and commitments related to responsible sourcing.
These policies are interconnected, complementary and created to holistically address the potential issues and challenges in agriculture production and supply chain. All of our policies, unless otherwise noted, apply to our entire supply chain.
The policies outline our standards for establishing processes and performing assessments, as well as systems to help ensure compliance. However we recognize that sustainable and responsible sourcing is a journey. Non-conformance with our policies may occur, and PepsiCo has a responsibility to work to address them. We are committed to working with our suppliers through proactive steps, such as training, as well as to assist in implementing corrective action plans when needed. PepsiCo can have a long term positive impact by helping suppliers in this way. In a rare case where a supplier will not implement a corrective action plan, PepsiCo reserves the right to terminate the relationship.
We believe these policies can have a broader reach beyond PepsiCo. As we have seen with other industry-leading programs, such as the PepsiCo Sustainable Farming Initiative, suppliers realize benefits like increased yields and profits, decreased costs and improved environmental impact that can be replicated with other companies with whom they work.
Underpinning all of our policies, PepsiCo recognizes the importance of maintaining and promoting fundamental human rights in all of our operations and throughout our supply chain. Our strategies and policies work together to support the principles contained in the United Nation’s Universal Declaration of Human Rights and the International Labor Organization Fundamental Principles and Labor Standards.
We operate under programs and policies that:
- Provide fair and equitable wages, benefits and other conditions of employment in accordance with local laws
- Recognize employees’ right to freedom of association
- Provide humane and safe working conditions
- Prohibit forced or child labor
- Promote a workplace free of discrimination and harassment
We expect our suppliers and business partners to uphold these principles. Our Supplier Code of Conduct and Supplier Assurance Program are tools we use to minimize the risk of human rights abuses throughout our supply chain.
We are proud of the policies outlined here. However we recognize this is a journey. We will continue to expand or enhance these policies and commitments over time as science evolves, supply chains mature and tools, practices and processes improve.
PepsiCo Land Policy
Agriculture is an integral part of PepsiCo’s supply chain. PepsiCo has zero tolerance for illegal activities in our supply chain and for land displacements of any legitimate land tenure holders, which are contrary to the International Finance Corporation (IFC) Performance Standards.
As part of our land policy, we are committed to:
- Zero tolerance for land displacements of any peoples, in accordance with IFC Performance Standards
- Fair and legal negotiations for land acquisitions
- Use of appropriate grievance mechanisms, such as the PepsiCo Speak Up! Hotline, for future dispute resolutions.
To further demonstrate our support of responsible land rights practices PepsiCo intends to join the Committee on World Food Security (CFS).
PepsiCo Forestry Stewardship Policy
PepsiCo is committed to realizing zero deforestation in our company-owned and -operated activities and supply chain. PepsiCo has a responsibility to ensure that we and our suppliers operate in accordance with applicable legal requirements and practice responsible forestry stewardship.
PepsiCo will source from suppliers that strive to:
- Use sustainable forest management practices in forest they own, lease or manage to provide fiber, timber and other forest-based products.
- Implement sustainable agriculture practices that enable farmers to increase production on currently farmed land and minimize impacts on the surrounding area.
- Preserve biodiversity and cultural values and optimize the social, environmental and economic benefits of managed forests.
To further enhance existing programs, our Forestry Stewardship Policy establishes a zero deforestation goal through the various principles outlined in the policy below. This is consistent with our ongoing work with our partners and external organizations to affect positive change in the local communities where we live, work, and serve.
PepsiCo has long been committed to transparency on the issue of forestry and has participated in the CDP’s Forest Program since its inception. For more information, please go to: https://www.cdp.net/en-US/Programmes/Pages/forests.aspx.
Sustainable Agriculture Policy
The Sustainable Agriculture Policy sets PepsiCo’s standards of performance and expectations for raw materials that are sourced from agricultural production. It is designed to have global reach, be relevant for industry and agricultural crops, and be adaptable for every size farm in developing and mature markets.
The Sustainable Agriculture Policy reflects current objectives for improving the sustainability of our agricultural supply chain. The Policy contains six environmental, social and economic focus areas aimed to represent a balanced sustainability focus at the farm level. Additional social and economic objectives have been defined from our work with the Sustainable Farming Initiative (SFI) that were incorporated into this policy.
Sustainable Packaging Policy
PepsiCo's Sustainable Packaging Policy outlines our commitment to strive for the smallest possible environmental footprint while still meeting the value, cost and performance criteria expected from consumers and customers. The Policy provides the framework through which we aspire to:
- Increase the use of recycled content or materials from renewable sources;
- Optimize packaging design to use the fewest materials necessary;
- Promote the use of materials that can be recycled (beverage containers, cereal cartons, etc.);
- Minimize post-industrial waste;
- Avoid known negative impacts to the environment; and
- Achieve a lower carbon footprint by ensuring efficient energy usage across the product lifecycle.
PepsiCo's Environmental Compliance, Health and Safety Policy
Environmental stewardship and protecting the health and safety of our people are at the core of our values. PepsiCo's Environmental Compliance, Health and Safety Policy was developed because we believe environmental incidents and occupational injuries and illnesses are preventable. The Policy applies to all our operations. We implement our EHS policy through the PepsiCo Global Environmental, Health and Safety Management System (GEHSMS) and have established eight principles such as regulatory compliance, performance measurement and continuous improvement. PepsiCo monitors company-owned operations and joint ventures where we hold a majority share.
Commitments on Palm Oil, Cane Sugar and Soy
Beyond the policies we’ve established, we are committed to implementing a third-party audit program, based on available and accepted standards, of the social, environmental and human rights aspects of our top sugar sourcing country, Brazil, by the end of 2014. We are also committed to implementing similar audit programs for our sugar supply chain in Thailand, our palm oil supply chain in Mexico and our coconut water supply chain in the Philippines by the end of 2016, or sooner if deemed possible. The assessments will include impacts related to land rights and will be conducted with the participation of affected communities. PepsiCo will provide a public summary of critical findings, including the methodology used for each assessment, and ensure appropriate discussions with relevant stakeholders. To further enhance our commitment to transparency, PepsiCo is providing the below information on palm oil, cane sugar and soy, three commodities used in our products:
The top three countries from which PepsiCo sources palm oil are Indonesia, Malaysia and Mexico. We have three primary suppliers for this commodity: Oleofinos, Aarhus and Wilmar. In 2013, PepsiCo purchased approximately 457,200 MT, which represents approximately 0.9% to the total global supply.
PepsiCo continues to seek the development of healthier oils, such as sunflower and corn oil, and transition from palm oil when possible. In 2009 we initially committed to the Roundtable on Sustainable Palm Oil (RSPO), and its processes and standards. We committed to exclusively purchase 100 percent certified sustainable palm oil for our products by 2015. To further bolster our commitment, we are working with our suppliers to achieve 100% traceability to the mill level by 2016. In turn the mills will provide confirmation from the farms from which they source the palm oil. In this way we will have a fuller understanding of our palm oil supply chain.
At the same time, we recognize that in some regions of the world, additional measures may be necessary. This is why we’ve made additional commitments, such as no further development of High Carbon Stock (HCS) Forests or High Conservation Value (HCV) Forests (including primary forests). Further research may identify additional HCS areas, and we will review this policy on a periodic basis to determine if other classifications should be added. The document below contains additional information on these commitments.
The top three countries from which PepsiCo sources sugar are Brazil, India and Thailand. We have three primary suppliers for this commodity: Sucden, Savola and TRR. PepsiCo purchased approximately 0.5% of the global supply of cane sugar in 2013.
PepsiCo is an active member of Bonsucro, a global nonprofit dedicated to reducing the environmental and social impacts of sugarcane production while recognizing the need for economic viability. Moving forward, PepsiCo will work with suppliers to meet a goal of sourcing 100% sustainable cane sugar by 2020. Efforts will begin in Brazil and Thailand. Recognizing that the sustainable cane sugar market is still developing, we will work with relevant stakeholders, including suppliers, to evaluate certification standards, such as Bonsucro and others, that are appropriate and applicable to our supply chain to achieve this goal.
PepsiCo only sources soy from Brazil from our supplier Bunge. In 2013, PepsiCo purchased approximately 0.06% of the global supply of soy.
We have also embedded detailed questions regarding land rights, which have been developed with third-party expertise, within the PepsiCo Sustainable Farming Initiative (SFI). The PepsiCo SFI program was launched to evaluate farmers with whom PepsiCo directly contracts. In this way PepsiCo will impact and educate its direct farmer-suppliers on this important issue, evaluating the results to ultimately ensure reflection of the PepsiCo policy.
Talent Sustainability Policies
Global Code of Conduct
At PepsiCo, we believe acting ethically and responsibly is not only the right thing to do, but also the right thing to do for our business. Our Global Code of Conduct is our road map and compass for doing business the right way. Simply put, we believe that you do business the right way when you act ethically and consistently with our values, our Code, our policies and the law. Effective October 1, 2012, PepsiCo released an updated version of its Global Code of Conduct. The updated Code addresses regulatory changes and evolving risk areas, and provides specific guidance on acting ethically and legally while performing work for PepsiCo.
Human Rights Workplace Policy
PepsiCo's Human Rights Workplace Policy is guided by the Universal Declaration of Human Rights and related international covenants. The principles underlying our Human Rights Workplace Policy, available in 44 languages, are broadly communicated as part of the Code of Conduct training.
At PepsiCo, we recognize HIV/AIDS as a uniquely challenging global health issue that poses a significant threat to the sustainability of our business operations worldwide. We are committed to making a significant contribution to the fight against this devastating pandemic and to assisting associates and their family members affected by it. PepsiCo has established an internal task force on HIV/AIDS to guide our actions in addressing the issue in our businesses.