Approach

Our reporting is the primary way we inform key stakeholders about our sustainability ambitions and progress. Our stakeholders include investors, potential and current employees, customers and consumers, suppliers, NGOs 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, data and case studies, according to our understanding of public interest and guided by key sustainability and reporting frameworks. Unless otherwise noted, our sustainability data reflects progress made during the calendar year (ending December 31), whereas our financial reporting corresponds with our fiscal year, which ends on the last Saturday of December. Our reporting suite comprises:

• Environmental, Social and Governance (ESG) Summary: High-level overview of our pep+ agenda and annual progress that aims to reflect the integration between ESG and our business and is designed to link seamlessly with ESG Topics A-Z for more detail and the latest updates. Readers can also download a PDF of the report. 
• ESG Performance Metrics: Time-series data for our pep+ goals, intended to support ESG analysis primarily for investors, ESG raters and NGOs.
• ESG Data Hub: A visual representation of our key ESG performance metrics through interactive charts and downloadable tables. It includes metrics addressed by our pep+ ambitions.
• Indices and framework responses and other topic-specific disclosures: These map our reporting to specific metrics established by key voluntary reporting frameworks and also includes specialized reporting, such as our annual Green Bond Report.
• ESG Topics A-Z: An evergreen, encyclopedia-style deep-dive on nearly 50 topics that aims to provide accessible, consistent information for those looking for greater depth on PepsiCo’s ESG strategy, management, policies, actions and collaborations.

The Global Sustainability Office’s Reporting team generally manages and executes delivering PepsiCo’s sustainability reporting suite with significant partnership from Communications, Corporate Affairs and the various subject matter experts (SMEs) of the topics reported. The Global Sustainability Office’s Data Governance team manages the validation of publicly-reported data in partnership with Legal and Control functions, operating segment teams and SMEs. 

Recent organizational changes (e.g., acquisitions, mergers and divestitures) are evaluated to determine if they have a significant impact on our sustainability performance and, if so, are reflected in our reporting as data becomes available. The data presented within this PDF do not reflect our acquisitions of Sabra Dipping Company, LLC and PepsiCo-Strauss Fresh Dips & Spreads International GmbH, which became wholly owned subsidiaries in December 2024. Unless otherwise noted, goals and progress reflect the impact of our prior acquisitions as of the end of the 2024 calendar year. 

We track and report sustainability data according to industry-accepted methodologies, where available. Our methodologies continue to evolve and may incorporate certain assumptions or estimates. Our sustainability reporting is based on the best available data as of the reporting date, which may reflect other uncertainties and limitations, such as where data tracking and collection is outside our direct control (for example, where we rely on third parties to provide data). For more information, please see our Calculation Methodology.

Frameworks

Where possible, we aim to report in a consistent way that allows comparison over time of our own performance and among companies. To this end, we aim to align with prominent ESG reporting frameworks often preferred by investors. We also take into account the information needs of NGOs, customers and ESG raters.

As new frameworks arise, our Reporting team, together with key internal partners, evaluates their utility and feasibility when deciding whether to adopt them. Factors considered include the intended audience, our ability to compile quantitative data to a requisite level of governance and relevance to the business. As a result of these assessments, we aligned our reporting with the relevant SASB Food and Beverage Sector Standards in 2021.

Key issues and boundaries

ESG reporting is undergoing significant and rapid transformation as jurisdictions around the world begin to institute mandatory reporting regulations. Cross-functional teams across PepsiCo are collaborating on compliance preparations, building on the company’s strong foundation of voluntary reporting. We aim to stay abreast of the evolving regulatory landscape to both meet our compliance obligations as well as identify, assess, prioritize and manage the possible impacts, risks and opportunities that may arise.

The expanding regulatory landscape has helped inform how we approach determining topics that may be significant and/or possibly disclosed. We conduct materiality and risk assessments to help us focus on ESG issues that are important to our business and stakeholders. There are various standards that provide differing frameworks and guidance for assessing risks and opportunities or other key issues and defining boundaries, which aim to provide transparency and help guide companies' key topics, strategies and future plans.

In May 2025, we announced refined goals in agriculture, climate, water and packaging to focus our sustainability ambitions where we believe we can help drive scale and position the company for long-term growth. Our refined pep+ goals aim to further align our resources with core business priorities, build on learnings and progress and help our sustainability ambitions remain actionable and achievable while accounting for external realities and business growth.

Assurance

Stakeholders expect sustainability disclosures to be accurate and complete. We therefore have robust data governance in place and have been engaging third-party assurers on select sustainability metrics for 18 years while expanding our assured metrics over time. For 2024 data, limited independent assurance was obtained for the following metrics (to date):

Apex Companies, LLC:

• Agricultural metrics:
  • Spread the adoption of regenerative agriculture, restorative, or protective practices across 10 million acres of land supporting the growth of our key crops and ingredients by 2030.¹
  • Sustainably source 90% of our key ingredients and progress volumes (10% or less) that face systemic barriers towards being sustainably sourced in accordance with our guidelines, by 2030:²
    • Sustainably sourced key ingredients and
    • Progress volumes on key ingredients that face systemic barriers (Engaged).
• Greenhouse gas (GHG) metrics:
• Scope 1 and 2:
  • Direct GHG emissions (Scope 1) associated with manufacturing and warehouse operations, fleet operations, offices and distribution centers.
    • Natural gas, propane, diesel fuel, gasoline, biofuels, other direct combustion fuels and fugitive refrigerant emissions.
  • Indirect GHG emissions (Scope 2 location-based, reflecting average grid emissions, and market-based, reflecting Energy Attribute Certificates) associated with manufacturing and warehouse operations, offices and distribution centers.
    • Electricity and purchased steam.
  • Achieve a 50% reduction in Scope 1 and 2 emissions by 2030 (vs 2022 baseline).³
• Energy:
  • Global energy usage associated with manufacturing and warehouse operations, fleet operations, offices and distribution centers:
    • Total fuel usage,
    • Total electricity usage, 
    • Total renewable electricity (usage and purchased) and 
    • Total U.S. electricity (usage and purchased).
  • Achieve 100% renewable electricity in company-owned operations by 2030⁴ (i.e., manufacturing and warehouse operations, fleet operations, offices and distribution centers):
    • Total renewable electricity usage and
    • Total renewable electricity purchased.
  • Total Energy Attribute Certificates (EACs) allocated to PepsiCo associated with electric power generation from sourced renewable electricity in the U.S. and U.S. sourced electricity usage covered by EACs.
• Environmental metrics:
• Water:
  • Water withdrawal (usage) associated with company-owned manufacturing operations:
    • Total water withdrawal in high water-risk areas and
    • Total water withdrawal
  • Reach average water-use efficiency ratios of 1.4 liters/liter of production in beverages sites and 1.7 liters/kilogram of production in convenient foods sites for 100% of high water-risk PepsiCo and franchise bottler manufacturing facilities by 2030:⁵
    • Average liters of water used per liter of beverage produced in high water-risk areas and
    • Average liters of water used per kilogram of convenient foods produced in high water-risk areas.
  • Water replenishment:
    • Achieve 100% water replenishment at company-owned facilities designated in high water-risk areas by 2025,⁶
    • Replenish back into the watershed 100% of the water we use in high water-risk PepsiCo and franchise bottler manufacturing facilities by 2030,⁷
    • Global water replenished in kiloliters toward 2025 target,⁶
    • Global water replenished in kiloliters toward 2030 target⁷ and
    • Total project replenishment in kiloliters in 2024.
  • Adopting the Alliance for Water Stewardship (AWS) Standard in high water-risk manufacturing facilities by 2025:
    • Sites having completed adoption of standard and
    • Sites in process of adopting standard.
• Packaging:
  • For our primary plastic packaging in PepsiCo’s key packaging markets:
    • Achieve an average of 2% year-over-year reduction in our absolute tonnage of virgin plastics through 2030⁸ and
    • Use 40% or greater recycled content in our plastic packaging by 2035 or sooner.⁸
  • For our primary and secondary packaging in PepsiCo’s key packaging markets:
    • Achieve 97% or greater reusable, recyclable or compostable packaging by design by 2030.⁹
• Production:
  • Production associated with company-owned manufacturing operations:
    • Total production in high water-risk areas (convenient foods),
    • Total production (convenient foods),
    • Total production in high water-risk areas (beverages) and
    • Total production (beverages).
• Social metrics:
  • Reach 100 million people with safe water access¹⁰ and
  • Partner with communities to advance food security and make nutritious food accessible to 50 million people.¹¹
• Product:
  • Reduce added sugars: ≥67% of beverage portfolio volume will have ≤100 Calories from added sugars per 12 oz. serving by 2025,¹²
  • Reduce saturated fats: ≥75% of convenient foods portfolio volume will not exceed 1.1 grams of saturated fat per 100 Calories by 2025,¹³
  • Reduce sodium: ≥75% of convenient foods portfolio volume will not exceed 1.3 milligrams of sodium per Calorie by 2025,¹³
  • Reduce sodium: ≥75% of our global convenient foods portfolio volume will meet or be below category sodium targets by 2030¹⁴ and
  • Diverse ingredients: Deliver 145 billion portions of diverse ingredients annually in our global convenient foods portfolio; such as legumes, whole grains, plant-based proteins, fruits and vegetables, and nuts and seeds by 2030.¹³

Additionally, Lost Time Incident Rate is assured by British Standards Institution.

The assurance statements are available for download on relevant ESG Topics A-Z pages. The environment assurance statement is linked directly here and the nutrition assurance statement is linked directly here.

Progress

We continue to evolve our reporting suite as we aspire to meet increasing stakeholder demands for transparency and utility. 

With the launch of pep+ and its subsequent refinements in 2023 and 2025, we introduced a series of goals and are in the process of incorporating progress against these into our reporting. For some goals, all or certain portions of data are not yet available. We disclose where this is the case and provide qualitative updates to demonstrate progress underway. We regularly review our pep+ goals and consider whether any changes to our goals are warranted.

Our reporting continues to be recognized for excellence externally. In 2024, PepsiCo was nominated in the Reuters Sustainability Awards under the Reporting and Transparency category. Also in 2024 — for the fifth consecutive year — we were nominated by Governance Intelligence for Best ESG Reporting among large-cap companies.

What's next?

We continue to monitor the global regulatory environment and aim to deliver transparent and stakeholder-centric reporting as we work towards achieving our pep+ ambitions. As part of this ambition, we continually strive to enhance our systems, processes and controls.

¹See PepsiCo’s Regenerative Agriculture Guidelines for additional information, including details on key crops and regeneration, restoration and protection criteria. Results reflect total acreage meeting these criteria within the annual reporting period

²Sustainably sourced refers to in-scope ingredient volumes that meet the established criteria outlined in PepsiCo’s Sustainable Sourcing Guidelines. Sustainable Sourcing practices can help manage risks, but challenges like deforestation or social issues can persist in some regions

³Goal tracks Scope 1 and 2 emissions consistent with the Greenhouse Gas Protocol. See Calculation Methodology for details

⁴In working to achieve this goal, PepsiCo uses a diversified portfolio of solutions, including purchase of unbundled energy attribute certificates

⁵Contract manufacturers and co-packers are excluded. Our progress toward this goal relies in part on water-use efficiency at high water-risk franchise bottler manufacturing facilities. We are working to integrate their data into future calculations

⁶World Resource Institute’s Aqueduct water stress assessment tool is used to reconfirm high water-risk areas every three years. We continue to measure progress against our original 2025 goal and our extended 2030 goal. In 2022, an updated water risk assessment identified additional company-owned high water-risk facilities, which are in-scope for calculating progress against our 2030 goal only. The reported replenishment volumes for company-owned facilities are currently being capped at 100% per location. Once we achieve 100% for each company-owned location, we will start to then report progress of more than 100% replenishment at sites as applicable

⁷Contract manufacturers and co-packers are excluded. Our progress toward this goal relies in part on replenishment associated with high water-risk franchise bottler manufacturing facilities. We are working to integrate their data into future calculations

⁸Goal tracks primary plastic packaging in PepsiCo’s key packaging markets. This scope represents more than 80% of PepsiCo’s 2024 global plastic packaging footprint (by weight)

⁹Goal tracks primary and secondary packaging in PepsiCo’s key packaging markets. This scope represents more than 85% of PepsiCo’s 2024 global packaging footprint (by weight). Reusable packaging must also be designed to be recyclable or compostable

¹⁰Metric counts the cumulative number of people provided with access to safe water since 2010

¹¹Results represent the cumulative sum of people reached with nutritious food per annual reporting period through programs funded through charitable contributions, as well as through commercial efforts that are intended to provide nutritious food. For more information, see Calculation Methodology

¹²Our global results are based on our Top 26 beverage markets

¹³Our global results are based on our Top 23 convenient foods markets

¹⁴Our global results are based on our Top 23 convenient foods markets. Refer to the Nutrition ESG Topics A-Z page for complete list of food categories