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GRI Index
PepsiCo's adherence to Global Reporting Initiative's G3 Guidelines illustrates our dedication to higher transparency and disclosure. This year our online report has incorporated the Global Reporting Initiative protocol, specifically the Food Processing Sector Supplement. We have self-reported Application Level B for our report.
Learn about the various levels of reporting
STRATEGY AND ANALYSIS
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| 1.1 | Statement from the most senior decision-maker of the organization. | Fully | Letter from Indra K. Nooyi |
| 1.2 | Description of key impacts, risks and opportunities. | Fully | 2010 Annual Report (pages 9–14), and Letter from Indra K. Nooyi |
ORGANIZATIONAL PROFILE
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| 2.1 | Name of the organization. | Fully | PepsiCo, Inc. |
| 2.2 | Primary brands, products and/or services. | Fully | Business and Brands |
| 2.3 | Operational structure of the organization. | Fully | Operations |
| 2.4 | Location of organization's headquarters. | Fully | Operations |
| 2.5 | Number of countries where the organization operates. | Fully | Operations |
| 2.6 | Nature of ownership and legal form. | Fully | Stock Information |
| 2.7 | Markets served. | Fully | Business and Brands |
| 2.8 | Scale of the reporting organization. | Fully | Business and Brands |
| 2.9 | Significant changes during the reporting period regarding size, structure or ownership. | Fully | About This Report |
| 2.10 | Awards received in the reporting period. | Fully | Select Awards and Recognition |
REPORT PARAMETERS
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| 3.1 | Reporting period. | Fully | FY2010 |
| 3.2 | Date of most recent previous report. | Fully | 2009 |
| 3.3 | Reporting cycle. | Fully | Annual |
| 3.4 | Contact point for questions regarding the report or its contents. | Fully | performancewithpurpose@pepsico.com |
| 3.5 | Process for defining report content. | Fully | About This Report |
| 3.6 | Boundary of the report. | Fully | The scope of this report covers global PepsiCo's operations from FY2009–2010 unless otherwise noted. It includes activities occurring at all facilities, owned and leased, where PepsiCo had operational control. Activities undertaken by first- to second-tier suppliers are included in this report. |
| 3.7 | State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). | Fully | Our report, which is GRI-checked Level B, covers PepsiCo wholly owned global operations, except certain data for Human Sustainability. In the U.S., we work with partners to build strategic alliances to broaden our sustainability knowledge. Since we do not own these external organizations, we cannot include their full activities and results in this report. |
| 3.8 | Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly affect comparability from period to period and/or between organizations. | Fully | See 3.6 and 3.7 |
| 3.9 | Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. | Fully | On an annual basis, we report our emissions data through our responses to CDP. |
| 3.10 | Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). | Fully | PepsiCo made a few acquisitions in the past fiscal year. Given the timeframe, we have not consolidated their results in this report. To build a more robust report going forward, we will be engaging with organizations to assess the material issues of our business. For more information, please refer to Stakeholder Engagement. |
| 3.11 | Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report. | Fully | About This Report |
| 3.12 | Table identifying the location of the Standard Disclosures in the report. | Fully | GRI/UNGC Index |
| 3.13 | Policy and current practice with regard to seeking external assurance for the report. | Fully | Going forward, PepsiCo plans to have its sustainability reports, processes, methodologies and data externally verified. |
GOVERNANCE, COMMITMENTS AND ENGAGEMENT
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| 4.1 | Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. | Fully | Board of Directors and Committees |
| 4.2 | Indicate whether the Chair of the highest governance body is also an executive officer. | Fully | Board of Directors and Committees |
| 4.3 | For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. | Fully | Board of Directors and Committees |
| 4.4 | Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. | Fully | Contact the Board of Directors/Audit Committee |
| 4.5 | Linkage between compensation for members of the highest governance body, senior managers and executives (including departure arrangements), and the organization's performance (including social and environmental performance). | Fully | Proxy Statement (page 24) |
| 4.6 | Processes in place for the highest governance body to ensure conflicts of interest are avoided. | Fully | Corporate Governance Guidelines |
| 4.7 | Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental and social topics. | Fully | Corporate Governance Guidelines |
| 4.8 | Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental and social performance, and the status of their implementation. | Fully | Mission, Values and Principles |
| 4.9 | Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles. | Fully | Sustainability Leadership |
| 4.10 | Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental and social performance. | Fully | Corporate Governance Guidelines |
| 4.11 | Explanation of whether and how the precautionary approach or principle is addressed by the organization. | Fully | Environmental Sustainability |
| 4.12 | Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or endorses. | Fully | Memberships and Partnerships |
| 4.13 | Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. | Fully | Memberships and Partnerships |
| 4.14 | List of stakeholder groups engaged by the organization. | Fully | Stakeholder Engagement |
| 4.15 | Basis for identification and selection of stakeholders with whom to engage. | Fully | Stakeholder Engagement |
| 4.16 | Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. | Fully | Stakeholder Engagement |
| 4.17 | Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. | Fully | Stakeholder Engagement |
ECONOMIC
| 2.5 Performance Management Approach | |||
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| Economic performance | |||
| EC1 | Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments. | Fully | Financial Highlights and Economic Impacts |
| EC2 | Financial implications and other risks and opportunities for the organization's activities due to climate change. | Fully | Climate Change |
| EC3 | Coverage of the organization's defined benefit plan obligations. | Fully | 2010 Annual Report (pages 44–45) |
| EC4 | Significant financial assistance received from government. | Not | |
| Market presence | |||
| EC5 | Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation. | Not | |
| EC6 | Policy, practices and proportion of spending on locally based suppliers at significant locations of operation. | Fully | #33 of Goals and Commitments |
| EC7 | Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. | Fully | #33 of Goals and Commitments |
| Indirect economic impacts | |||
| EC8 | Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or pro bono engagement. | Fully | Economic Impacts and PepsiCo Foundation |
| EC9 | Understanding and describing significant indirect economic impacts, including the extent of impacts. | Fully | Economic Impacts |
ENVIRONMENTAL
| 2.5 Environmental Sustainability Management Approach | |||
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| Materials | |||
| EN1 | Materials used by weight or volume. | Partially | Reducing Our Packaging Footprint |
| EN2 | Percentage of materials used that are recycled input materials. | Partially | Reducing Our Packaging Footprint |
| Energy | |||
| EN3 | Direct energy consumption by primary energy source. | Not | |
| EN4 | Indirect energy consumption by primary energy source. | Not | |
| EN5 | Energy saved due to conservation and efficiency improvements. | Fully | Energy Reduction |
| EN6 | Initiatives to provide energy-efficient or renewable energy–based products and services, and reductions in energy requirements as a result of these initiatives. | Not | |
| EN7 | Initiatives to reduce indirect energy consumption and reductions achieved. | Fully | Climate Change |
| Water | |||
| EN8 | Total water withdrawal by source. | Not | No available data but PepsiCo has a system to monitor water performance and consumption. For more information, please go to Water. |
| EN9 | Water sources significantly affected by withdrawal of water. | Partially | Positive Water Balance |
| EN10 | Percentage and total volume of water recycled and reused. | Partially | PepsiCo replenished nearly 6B liters of water across India in 2009. To build on the achievement of positive water balance, PepsiCo has developed a strategic plan to double the replenishment of its consumption of freshwater by 2015. For more information on PepsiCo's initiatives, please go to Water. |
| Biodiversity | |||
| EN11 | Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. | Partially | Biodiversity |
| EN12 | Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. | Partially | Biodiversity |
| EN13 | Habitats protected or restored. | Partially | Biodiversity |
| EN14 | Strategies, current actions and future plans for managing impacts on biodiversity. | Partially | Biodiversity |
| EN15 | Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. | Not | |
| Emissions, effluents and waste | |||
| EN16 | Total direct and indirect greenhouse gas emissions by weight. | Partially | Energy Reduction |
| EN17 | Other relevant indirect greenhouse gas emissions by weight. | Not | |
| EN18 | Initiatives to reduce greenhouse gas emissions and reductions achieved. | Fully | Energy Reduction |
| EN19 | Emissions of ozone-depleting substances by weight. | Not | |
| EN20 | NOx, SOx and other significant air emissions by type and weight. | Not | |
| EN21 | Total water discharge by quality and destination. | Not | |
| EN22 | Total weight of waste by type and disposal method. | Partially | Minimizing Solid Waste |
| EN23 | Total number and volume of significant spills. | Not | |
| EN24 | Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII, and percentage of transported waste shipped internationally. | Not | |
| EN25 | Identity, size, protected status and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. | Not | |
| Products and services | |||
| EN26 | Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. | Fully | Reducing Our Packaging Footprint and Product Carbon Footprint |
| EN27 | Percentage of products sold and their packaging materials that are reclaimed by category. | Partially | Packaging |
| Compliance | |||
| EN28 | Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations. | Fully | On December 22, 2009, Wojewodzka Inspekcja Ochrony Srodowiska, the Polish environmental control authority, began an audit of a bottling plant of our subsidiary, Pepsi-Cola General Bottlers Poland SP, z.o.o. (PCGB), in Michrow, Poland, and alleged that the plant was not in compliance in 2007 and 2008 with applicable regulations requiring the use of approved laboratories for the analysis of the plant's waste. The Wojewodzka Inspekcja Ochrony Srodowiska sought monetary sanctions of $1.2 million. For more information, please refer to 2010 10-K (pages 22–23). |
| Transport | |||
| EN29 | Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce. | Fully | Fleet Emissions and #s 30 and 31 of Goals and Commitments |
| Overall | |||
| EN30 | Total environmental protection expenditures and investments by type. | Fully | PepsiCo Foundation Contributions |
SOCIAL: LABOR PRACTICES AND DECENT WORK
| 2.5 Talent Sustainability Management Approach | |||
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| Employment | |||
| LA1 | Total workforce by employment type, employment contract and region. | Not | |
| LA2 | Total number and rate of employee turnover by age group, gender and region. | Not | |
| LA3 | Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. | Fully | Associate Benefit Programs |
| Labor/management relations | |||
| LA4 | Percentage of employees covered by collective bargaining agreements. | Not | |
| LA5 | Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. | Not | |
| FP3 | Percentage of working time lost due to industrial disputes, strikes and/or lockouts, by country. | Not | |
| Occupational health and safety | |||
| LA6 | Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. | Not | |
| LA7 | Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities by region. | Partially | Occupational Health & Safety |
| LA8 | Education, training, counseling, prevention and risk-control programs in place to assist workforce members, their families or community members regarding serious diseases. | Fully | Workplace Wellness |
| LA9 | Health and safety topics covered in formal agreements with trade unions. | Not | |
| Training and education | |||
| LA10 | Average hours of training per year per employee by employee category. | Partially | Average training hours not available but PepsiCo is constantly investing in its career development programs. See Personal & Professional Development. |
| LA11 | Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. | Fully | Personal & Professional Development |
| LA12 | Percentage of employees receiving regular performance and career development reviews. | Fully | Personal & Professional Development |
| Diversity and equal opportunity | |||
| LA13 | Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity. | Fully | 2010 Annual Report, page 17 |
| LA14 | Ratio of basic salary of men to women by employee category. | Not | |
SOCIAL: HUMAN RIGHTS
| 2.5 Talent Sustainability Management Approach | |||
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| Diversity and equal opportunity | |||
| HR1 | Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. | Not | |
| HR2 | Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. | Not | |
| HR3 | Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. | Fully | Human Rights |
| Non-discrimination | |||
| HR4 | Total number of incidents of discrimination and actions taken. | Not | |
| Freedom of association and collective bargaining | |||
| HR5 | Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. | Not | |
| Child labor | |||
| HR6 | Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. | Not | |
| Forced and compulsory labor | |||
| HR7 | Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. | Not | |
| Security practices | |||
| HR8 | Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations. | Not | |
| Indigenous rights | |||
| HR9 | Total number of incidents of violations involving rights of indigenous people and actions taken. | ||
SOCIAL: SOCIETY
| 2.5 Human Sustainability Management Approach and Talent Sustainability Management Approach | |||
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| Community | |||
| SO1 | Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting. | Not | |
| Healthy and affordable food | |||
| FP4 | Nature, scope and effectiveness of any programs and practices (in-kind contributions, volunteer initiatives, knowledge transfer, partnerships and product development) that promote healthy lifestyles; the prevention of chronic disease; access to healthy, nutritious and affordable food; and improved welfare for communities in need. | Fully | Partnerships and Community |
| Corruption | |||
| SO2 | Percentage and total number of business units analyzed for risks related to corruption. | Not | |
| SO3 | Percentage of employees trained in organization's anti-corruption policies and procedures. | Partially | Human Rights |
| SO4 | Actions taken in response to incidents of corruption. | Partially | Human Rights |
| Public policy | |||
| SO5 | Public policy positions and participation in public policy development and lobbying. | Fully | PepsiCo engages with various organizations to come up with innovative approaches to health, agriculture and environment. See Memberships and Partnerships |
| SO6 | Total value of financial and in-kind contributions to political parties, politicians and related institutions by country. | Fully | Economic Impacts |
| Anti-competitive behavior | |||
| SO7 | Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. | Not | |
| Compliance | |||
| SO8 | Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. | Not | |
SOCIAL: PRODUCT RESPONSIBILITY
| 2.5 Performance Management Approach and Human Sustainability Management Approach | |||
| Description | Reported | Cross-reference/Direct Answer 2010 | |
| Customer health and safety | |||
| PR1 | Life-cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. | Fully | Reducing Our Packaging Footprint, Product Carbon Footprint, Healthier Oils |
| PR2 | Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. | Not | |
| FP5 | Percentage of production volume manufactured in sites certified by an independent third party according to internationally recognized food safety management system standards. | Not | |
| FP6 | Percentage of total sales volume of consumer products, by product category, that are lowered in saturated fat, trans fats, sodium and sugars. | Fully | Financial Highlights |
| FP7 | Percentage of total sales volume of consumer products, by product category sold, that contain increased fiber, vitamins, minerals, phytochemicals or functional food additives. | Fully | Financial Highlights |
| Product and service labeling | |||
| PR3 | Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. | Fully | Nutritional Labeling |
| FP8 | Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements. | Fully | Nutritional Labeling |
| PR4 | Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. | Not | |
| PR5 | Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. | Fully | Consumer Satisfaction |
| Marketing communications | |||
| PR6 | Programs for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship. | Fully | Responsible Marketing and Advertising |
| PR7 | Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes. | Not | |
| Customer privacy | |||
| PR8 | Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. | Not | |
| Compliance | |||
| PR9 | Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. | Not | |
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