Agriculture

Why it matters

Approach

If agricultural practices do not evolve rapidly, increasingly frequent extreme weather could shape the world’s food future. Regenerative agriculture can mitigate emissions and strengthen resilience, yet adoption at scale remains a key challenge. Farmers and farming communities already demonstrate that regenerative practices can improve soil health, emissions outcomes, biodiversity, watersheds and crop performance while strengthening farm and community resilience. Effective adoption of these practices requires practical, timely impact analysis alongside increased investment, training and collaboration.

The food system stands at an inflection point. What were once 100-year weather events now occur far more often, and research indicates that each degree Celsius of warming may reduce staple crop yields by 3-7%.¹ The UN reports that 3.2 billion people live in agricultural areas facing high to very high water stress,² and approximately half of the world’s population currently experiences severe water scarcity for at least part of the year.³ PepsiCo recognizes these risks across its global supply networks and, through its Positive Agriculture approach, seeks to advance actions to build a more resilient and sustainable food system over the long term.

Governance

A dedicated team within PepsiCo’s Global Sustainability Office manages the company’s Positive Agriculture programs. This global team is led by the Vice President of Global Sustainable Agriculture and partners closely with internal functions including Global Procurement, Supply Chain, Public Policy and Government Affairs, Research and Development, Communications and our Human Rights Operating Council. The team reports up to the PepsiCo Executive Committee (PEC) through our Chief Sustainability Officer. Progress is reviewed by the PEC as well as the Sustainability and Public Policy Committee of our Board of Directors on at least an annual basis.

Policies

Our goals are supported by a set of policies that underpin our agricultural activities. These include:

• PepsiCo Global Sustainable Agriculture Policy
• PepsiCo Global Supplier Code of Conduct
• PepsiCo Global Human Rights Policy
• PepsiCo Global Policy for Sustainable Palm Oil
• PepsiCo Stewardship of Forests and Natural Ecosystems Policy
• PepsiCo Environmental, Health and Safety Policy
• PepsiCo Global Policy on Animal Welfare
• PepsiCo Global Anti-Bribery Compliance Policy

Many of these are based on international conventions including the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights and the ILO Declaration on Fundamental Principles and Rights at Work. We expect our suppliers to adhere to many of these policies and to address non-compliances. During procurement and review, among other considerations, PepsiCo considers supplier performance against our Positive Agriculture goals and associated policies.

Risk management

Across the globe, farmers are experiencing the impacts of Climate change and other environmental, economic and social risks. Risks such as biodiversity loss, freshwater scarcity, soil degradation and unstable crop yields pose threats to the ecosystem, to our business and to the livelihoods of individuals and families across the agricultural supply chain.

Our Positive Agriculture agenda aims to address these risks as well as to support sustainable food systems by identifying opportunities for action and collaboration and measuring the impact of our efforts. This includes our efforts to help support the advancement of farmers and farming communities, spread the adoption of regenerative agriculture, restorative and protective practices, strive towards deforestation- and conversion-free sourcing for our high-risk commodities and sustainably source⁴ our key ingredients in accordance with our guidelines.

PepsiCo monitors potential changes in its nature-related impact through ongoing engagement with internal supply chain experts, suppliers, NGOs, implementing partners and other expert sources to incorporate assessment of nature dependencies, impacts, risks and opportunities into PepsiCo’s ongoing management processes. See Nature for detail on our recent nature risk assessment.

Strategy

PepsiCo has seen firsthand that transforming the food system requires farmers at the center. Putting them first is foundational to creating systemic change because farmers and farming communities play an essential role in building agricultural resilience and sustainability. Farmers need targeted support to implement regenerative agriculture practices and lead transformation through investment, advocacy and resources tailored to the needs of individual farms.

Working directly with farmers to understand what works best for their operations and partnering across the supply chain can accelerate adoption of regenerative agriculture practices. These practices can improve soil health, reduce emissions and strengthen crop yields and resilience of farmer livelihoods. For many farmers, their farms represent both a livelihood and a legacy for future generations, and adopting new practices carries financial and operational risk without clear and trusted support. Companies and governments therefore can play a critical role in listening, investing and providing practical resources so farmers can confidently act in the best interests of their farms and the planet.

PepsiCo applies this farmer-centered approach through its pep+ (PepsiCo Positive) Positive Agriculture activations, recognizing that how progress is achieved matters as much as the outcomes. This approach includes working toward measurable improvements in livelihoods, expanded adoption of regenerative agriculture practices across acres, restoration and protection efforts and increased sustainably sourced materials.

Regenerative agriculture, restorative and protective practices

Positive Agriculture focuses on extending regenerative farming practices that strengthen farming communities and ecosystems by:

• Building soil health and fertility
• Reducing emissions and sequestering carbon
• Improving watershed health
• Enhancing biodiversity
• Delivering measurable improvements in farmer livelihoods through outcome-based evaluations of economic prosperity and farmworker security

Acres count toward restoration or protection when activities improve biodiversity and ecological resilience on non-agricultural lands that remain out of production, such as increasing protected land area or strengthening governance of protected zones. Our Regenerate, Restore and Protect Guidelines provide the framework for implementing these practices and tracking progress.

To drive long-term change, we launched a landscape approach for key ingredients, currently active in the Midwest U.S., Australia, Mexico, and Southeast Asia, with plans to expand into new priority regions. These efforts optimize crop yields, improve farmer prosperity and security, and safeguard ingredient supply. Regenerative agriculture is essential to meeting global nutritional demand while addressing risks such as freshwater scarcity, deforestation, biodiversity loss, and soil degradation.

We continue investing in adoption through a planned $216 million multi-year investment in strategic partnerships with Practical Farmers of Iowa (PFI), Soil and Water Outcomes Fund (SWOF), and Illinois Corn Growers Association (ICGA) to accelerate regenerative practices across the U.S.

Soil health

Soil health sits at the core of PepsiCo’s Positive Agriculture agenda because healthy soils enable resilient agricultural systems that sustainably produce high‑quality crops while protecting the environment. Regenerative practices such as cover cropping, direct seeding and minimum tillage improve soil structure, increase organic matter and enhance the ability of soils to retain water and nutrients. These practices reduce erosion, suppress weeds, improve nitrogen fixation and lower reliance on synthetic fertilizers while preserving soil structure, microbial communities and soil carbon stocks. Together they improve soil biodiversity, water holding capacity and carbon sequestration, strengthening climate resilience and long‑term productivity while helping farmers reduce input costs, improve yields over time and advance greenhouse gas and water stewardship goals.

Agricultural GHG emissions

With the right policies, funding and partnerships, agriculture can become a climate solution at scale. PepsiCo’s Positive Agriculture agenda delivers greenhouse gas reductions and removals by addressing forest, land and agriculture (FLAG) emissions through targeted forest and land management. Practices like cover cropping, direct seeding and minimum tillage reduce emissions from soil disturbance and fertilizer use while increasing carbon sequestration in agricultural soils. Cover crops capture atmospheric carbon and reduce reliance on synthetic fertilizers, while direct seeding and minimum tillage preserve soil carbon stocks. Improved soil health further increases the land’s capacity to sequester carbon over time, lowering the carbon intensity of the agricultural supply chain. Through these efforts, PepsiCo aims to equip farmers to transform agricultural land from an emissions source into a carbon sink, directly supporting the goal to reduce Scope 3 FLAG emissions by 30% by 2030 from a 2022 baseline.⁵

For more on reducing GHG emissions across our operations and value chain, see Climate change.

Agricultural watershed health

Healthy watersheds underpin resilient agriculture, thriving rural communities and long-term water security. They regulate water availability and quality, support soil health and biodiversity and reduce risks from droughts, floods and climate variability. For a company deeply rooted in agriculture, watershed health represents both an environmental priority and a business imperative.

PepsiCo embeds watershed health at the core of its Regenerate, Restore and Protect approach. Regenerative agriculture improves soil structure and water-holding capacity, reduces runoff and enhances on-farm water efficiency. Restoration and protection efforts extend beyond the farm gate to replenish and safeguard critical watersheds in high water risk regions, supporting shared water security for ecosystems and communities.

PepsiCo advances these outcomes by working directly with farmers and ecosystem partners to scale micro‑irrigation solutions tailored to local conditions. Approaches such as drip and subsurface irrigation, precision sprinklers and fertigation — delivering fertilizers into irrigation systems — can improve watershed function while strengthening farm resilience and productivity. Improved fertilizer efficiency and energy savings further reduce carbon and methane emissions. Through training, agronomic support, demonstration plots, partnerships and incentives, PepsiCo aligns farmer livelihoods with watershed stewardship to drive landscape‑level water and climate benefits across its agricultural supply chain.

For more on optimizing water use and restoring water resources, see Water.

Biodiversity

Biodiversity underpins life on Earth and supports ecosystem services across agricultural landscapes, from pollination to pest control to recreation. Biodiversity loss driven by human activities threatens these services and undermines long-term resilience for supply chains and communities, making action in agricultural landscapes critical.

The PepsiCo Positive Agriculture agenda addresses biodiversity by tackling land use change through deforestation and conversion free sourcing and by regenerating, restoring and protecting natural ecosystems. Biodiversity serves as a key impact area for assessing regenerative agriculture outcomes.

Sustainable sourcing

PepsiCo depends on a steady and sustainable supply of agricultural raw materials to meet business demands. The Sustainable Sourcing approach strengthens risk management and long-term business success while advancing our Positive Agriculture goals. These practices protect ingredient supply security as well as social license to operate, corporate reputation and brand security. Suppliers are expected to follow our Supplier Code of Conduct and relevant policies, including the Global Sustainable Agriculture Policy and the Stewardship of Forests and Natural Ecosystems Policy. Our Sustainable Sourcing Guidelines provide a framework for implementing and measuring progress toward our sourcing goal, defining scope and outlining pathways for stakeholders to meet our standards.

Through our Human Rights Due Diligence program, we engage strategic tier-1 suppliers to introduce responsible sourcing practices. In farming communities facing systemic barriers such as regulatory constraints or infrastructure limitations, we use an Engaged Tier to acknowledge and track credible progress toward compliance with our Guidelines. For high-risk commodities like palm oil and cane sugar, our approach focuses on building transparency to origin where possible, assessing risk to business, people and planet, supporting compliance through third-party standards such as RSPO and Bonsucro, and investing in on-the-ground projects that benefit farmers and communities. We also collaborate with peers, suppliers and civil society to work to address systemic issues. Across these efforts, we maintain a firm objective of no deforestation, no development on peatlands and no exploitation of indigenous peoples, workers and local communities in our palm oil supply chain and beyond.

Livelihoods

Our business depends on farmers and the crops and ingredients they grow, yet many agricultural communities face challenges that threaten both their livelihoods and global food systems — from extreme weather events to soil degradation and other risks. Smallholder farmers and farm workers are among the most vulnerable. We aim to help promote more resilient agricultural practices and improve economic prosperity and security for farmers and farm workers. Encouraging sustainable and inclusive food systems not only supports farming communities but also helps secure the supply of ingredients essential to our business. Achieving this requires a farmer-centric approach and strategic partnerships across geographies, sectors and supply chains to drive impact at scale.

Our Livelihoods Implementation Framework for Engagement (LIFE) provides a roadmap for programming with vulnerable communities in targeted sourcing regions. LIFE includes defined metrics to measure impact and focuses on three key areas: economic prosperity, farm and farm worker security, and inclusion and economic empowerment. LIFE is designed to evolve based on implementation learnings, emerging good practices and partner feedback, ensuring our approach remains credible and effective.

Stakeholder engagement

We collaborate with farmers, farm workers, industry peers and value chain partners to accelerate the transition to sustainable agriculture practices that deliver farm-level impacts, including reduced greenhouse gas emissions. Our approach centers on listening, partnership and shared action to address systemic challenges and support resilience and growth.

We recognize that policies and programs may not prevent all adverse impacts across operations and the supply chain. Where appropriate, we aim to provide or cooperate in effective remedy and encourage suppliers to help enable remedy where impacts link directly to our business operations or products. To support this process, we maintain multiple channels for employees and other stakeholders to raise grievances and seek remedy.

A dedicated agricultural supply chain grievance mechanism complements existing programs for managing environmental and social concerns. This mechanism enables third parties to raise concerns when environmental and social principles and policies may not be upheld within the agricultural supply chain. Upon receiving a grievance, we engage relevant suppliers to assess allegations, reinforce the importance of addressing concerns, understand corrective actions taken or planned and influence and monitor progress toward resolution.

We received 14 grievances in 2025, with most related to agricultural supply chains in Southeast Asia. These cases largely involved environmental and social issues, including deforestation and land and labor rights. We have and are continuing to engage with our suppliers and other stakeholders to help resolve open grievances through corrective action plans and ongoing monitoring.

Speak Up

In addition, our Speak Up hotline is an important component of our culture, ethics and integrity governance. We encourage our suppliers and business partners to establish their own grievance mechanisms, and we also make the PepsiCo Speak Up hotline available for their use through our SCoC. We regularly publish information on the usage of our Speak Up hotline, including the number of reports and the categories raised. More information on our grievance mechanisms is available on our Human rights page.

Policy advocacy

Food systems featured prominently on the global climate agenda at COP28. PepsiCo joined food and agriculture organizations in the Action Agenda on Regenerative Landscapes, which calls for scaling the transition to regenerative agriculture by 2030. Participants across the agriculture supply chain, including farmers, civil society, financiers and local government representatives, are aligning efforts to scale implementation and land transition actions.

Progress

Metrics and targets

We believe long-term transformation requires agility to identify what’s working, what isn’t, and adjust our approach to focus our impact on the locations with the most significant risks. We regularly review our sustainability goals and initiatives and consider changes that are from time to time warranted, including in the context of new developments, such as business growth, necessary investments relating to our initiatives, as well as external developments.

See Actions, below, for detail on the factors driving our 2025 progress.

In addition to the pep+ goals above, the following metrics provide further insight into our agriculture impacts.

Actions

We drove progress towards our goals across our value chain in 2025, working with internal and external stakeholders to spread Positive Agriculture.

Advancing and supporting sustainable agriculture innovations

PepsiCo tests and scales innovation in sustainable agriculture, strengthening support for growers and regenerative agriculture programs grounded in the latest science, technology and region‑specific socio‑economic and climate risk contexts.

PepsiCo established the Positive Agriculture Outcome (PAO) Accelerator in 2021. Through it, we provide co‑investment to regional teams to fund innovative projects designed for local conditions and climate challenges. These investments de‑risk promising initiatives and accelerate the development and scaling of technologies and approaches that support regenerative agriculture adoption. In 2025, the Accelerator supported more than 15 projects globally, from solar‑based groundwater extraction in Pakistan to pest management and biodiversity restoration initiatives in New Zealand.

PepsiCo also tests and disseminates leading agricultural practices and technologies through demonstration farms and on‑farm trials. In 2025, the company supported 63 demonstration farms focused on soil health, water‑use efficiency and irrigation technologies, integrated pest management and biocontrol, precision agriculture and digitization and low‑carbon inputs. These farms serve as local learning hubs, enabling knowledge‑sharing and adoption of proven practices across surrounding farming communities. In 2025, these efforts reached over 1,100 farmers through trials, training and outreach.

Regenerative agriculture, restorative and protective practices

In 2025, we launched STEP Up for Agriculture (Supporting Trusted Engagement and Partnership for Agriculture), a collaborative initiative we lead together with Unilever. Through the program, we work with retailer partners to strengthen farmer-facing organizations in the U.S. and Europe through tailored advisory support and a train-the-trainer model that builds capabilities, advances regenerative agriculture practices and supports sustainable supply chain solutions with measurable environmental impact.

In addition to this work, we also engaged thousands of farmers to plant cover crops and adopt regenerative techniques, delivering a significant net reduction in on-farm GHG emissions, including soil carbon sequestration.

Watershed Health

For more detail, see Water.

Biodiversity

In 2025, 2.0 million acres across PepsiCo’s regenerate, restore and protect actions reported biodiversity improvements. Within the regenerative pillar, biodiversity benefits resulted from practices such as cover cropping, crop rotation, intercropping, 4R nutrient management, maintaining roots beneath the soil, conservation tillage, crop residue management and integrated pest management.

Across restore and protect actions, biodiversity improvements stemmed from practices including perennialization of marginal acres, reforestation, afforestation, agroforestry, prairie restoration, direct and enrichment planting, assisted natural regeneration and hydrological restoration.

Agricultural GHG emissions

Advancing regenerative agriculture practices helps farmers reduce emissions and sequester carbon while improving soil health. We expanded our partnership with Yara to Latin America in 2025. The partnership — initially launched in 2024 in Europe — equips farmers with lower-carbon fertilizers and precision farming technologies adapted to several key ingredients. In 2026, PepsiCo began partnering with agriculture technology company TalusAg to help decarbonize fertilizer across global agricultural supply chains using low-carbon ammonia environmental attributes — marking PepsiCo’s first executed transactions of this kind. The initial agreements span PepsiCo’s Europe, Sub-Saharan Africa, Asia Pacific and global teams, covering about 30,000 metric tons of low-carbon ammonia, with an option for an additional 41,000 metric tons. The broader collaboration also extends to the U.S. and the proposed Blue Earth, Minnesota project. Additionally, we continued to scale tools such as the Climate Resilience Platform to provide farmers with actionable insights for climate adaptation and reduced environmental impact. For more detail, see Climate Change.

Sustainable sourcing

In 2025, we remained focused on sustainable sourcing of our key ingredients in accordance with our guidelines. Through collaboration with farmers and industry partners, we expanded or launched programs on continuous improvement in Argentina, the U.S. and Canada. These programs are designed to cover areas such as soil health, water stewardship, climate resilience and responsible labor practices while maintaining a reliable supply of ingredients.

Deforestation- and conversion-free sourcing

We continue to advance deforestation-free sourcing of high-risk commodities and support conservation, restoration and sustainable livelihoods through initiatives such as the Consumer Goods Forum’s Forest Positive Coalition and the Palm Oil Collaboration Group. As a Founding Partner of the Rimba Collective, we also help drive innovative sustainable finance mechanisms to protect and restore forests in palm oil sourcing regions across Southeast Asia.

In 2025, we advanced toward our goal of deforestation-free sourcing by focusing on three key areas: enhancing traceability, leveraging technology and strengthening partnerships. We continue to prepare for conversion-free sourcing by supporting industry-aligned methodologies and plan to report progress as data become available. For more detail, see Deforestation.

Livelihoods

We focus our work on farming communities linked to our supply chain, including smallholder farmers and farm workers. This ambition aims to reach people who are a part of in-depth, measurable interactions with dedicated PepsiCo programs and projects to support these communities.

To address systemic inequality in farming, PepsiCo and the PepsiCo Foundation partner on initiatives that drive inclusion and empowerment. Agrovita, launched in Southeast Mexico with Proforest, helps smallholder farmers adopt sustainable practices and form rural cooperatives — including one that now supplies plantains for PepsiCo Mexico Foods. Through She Feeds the World, our partnership with CARE, we have expanded support across multiple countries, improving food security and nutrition while enabling small-scale producers to adopt regenerative practices and increase income. Additionally, our 1,000 Farmers Endless Prosperity program in Türkiye provides farmers with digital tools, personalized agronomic support and training on sustainable farming, financial literacy and zero waste to build resilience against climate challenges.

Agricultural watershed health

In 2025, we expanded our partnership with N-Drip to a new location in Florida. This collaboration will modernize the irrigation system on a 275-acre farm in Florida from flood/seep to drip, significantly reducing water use while growing vegetables in the winter and sugarcane in the fall. For more detail, see Water.

Strategic collaboration

Across our collaborations, we focus our work on designing, launching and scaling holistic solutions to complex challenges, investing alongside key stakeholders across all levels of the food system to maximize impact. This includes supporting and engaging with smallholder farmers, demonstrating the sustainable business impact of inclusive sourcing solutions along our supply chains and leveraging external technical and financial resources as we strive to deliver the Positive Agriculture outcomes that enhance food system resilience and long-term sustainability.

Collaborations for climate resilience

As we work towards a more resilient, sustainable agricultural system, we are working with a variety of stakeholders to build climate resilience in our supply chain, starting at the farm.

• Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ): A collaboration with GIZ, PepsiCo and small-scale potato farmers in northern Thailand aiming to scale regenerative agricultural practices throughout a whole-farm approach, in an effort to develop climate resilience and adaptation essential for sustainable farming management.
• AgMission: A team working to build and deploy a data-powered, climate action framework that bolsters productivity and resilience while enabling rapid-response adoption of farmer-driven climate-smart farming and ranching solutions.
• International Center for Tropical Agriculture: A technological project aiming to localize the risks and opportunities of climate change for our agricultural supply chain, providing our Agriculture and Procurement teams the detailed analyses they need to bring the Positive Agriculture agenda to life.
• Soil and Water Outcomes Fund (SWOF): A collaboration aiming to help participating farmers transition to climate-smart practices on close to one million acres by 2030, with the potential to reduce and capture up to three million metric tons of GHG emissions. SWOF was awarded funding through the USDA’s Partnerships for Climate-Smart Commodities Initiative, along with approximately $60 million in support from PepsiCo and other industry peers, to launch the Midwest Climate-Smart Commodity Program.
• Practical Farmers of Iowa (PFI): A long-term, strategic collaboration with PFI aiming to help drive regenerative agriculture practices across approximately 1.5 million acres of U.S. farmland by 2030. As part of this work, PepsiCo is making an upfront investment in people and operating systems, to increase farmer resilience, support sustainable sourcing practices and achieve greenhouse gas (GHG) emissions reductions across multiple commodities.
• SWOF, PFI and IL Corn Growers Association (ICGA): PepsiCo is supporting three well-respected farmer-facing organizations through a multi-year $216 million investment aiming to support regenerative agriculture transformation on more than three million acres of U.S. farmland and deliver approximately three million metric tons of GHG emission reductions and removals by 2030.
• Archer Daniels Midland (ADM): A multi-year shared value program with ADM aims to reduce carbon intensity by expanding regenerative practices on up to two million acres across our shared supply chains. The project seeks to support farmers across the Midwest U.S. in building resilience to climate change and has the potential to eliminate over 1.4 million metric tons of GHG emissions.
• Walmart: In 2023, we announced with Walmart our shared aim to support regenerative agriculture across more than two million acres of farmland and deliver approximately four million metric tons of GHG emission reductions and removals by 2030. It will be a seven-year collaboration to pursue $120 million worth of investments focused on supporting U.S. and Canadian farmers in their pursuit to improve soil health and water quality.
• Fertiberia: A sustainable fertilizer pilot program aiming to reduce emissions from potato cultivation in Spain.

Technological solutions

We support innovative agricultural research and work to scale technological solutions to common agricultural challenges.

• Agroscout: An artificial intelligence-based system that identifies and monitors crop diseases, aiming to enable farmers to improve crop yields and reduce pesticide use.
• Foundation for Food & Agriculture Research (FFAR): A public-private partnership aiming to support bold science and fill critical research gaps and solve large-scale agricultural challenges.

Commodity-specific

We collaborate with non-governmental organizations (NGOs) and community organizations aiming to improve sustainable agriculture and sustainable sourcing.

• Bonsucro: A global, multi-stakeholder sustainability platform for sugarcane, which aims to collectively accelerate the sustainable production of sugarcane, including through its Production Standard. Offering both credits and physically certified sugarcane, Bonsucro recognizes the crucial role of smallholder farmers and seeks to promote their inclusion through, for example, the Production Standard for Smallholder Farmers.
• Agriba Sustentable Program: A project with the International Maize and Wheat Improvement Center (CIMMYT) and Trimex that aims to contribute to scaling sustainable farming practices across one of Mexico’s largest wheat producing region.
• LEAF (Linking Environment And Farming): A project in the U.K. aiming to support all Quaker oat growers in reaching the LEAF sustainability standard.
• Illinois Corn Growers Association (ICGA): PepsiCo supports the ICGA’s Precision Conservation Management Innovation Project to help address farmers’ environmental concerns such as water quality, soil health and GHG emissions by offering agronomic and financial support, as well as economic analysis, to enable sound business decisions related to conservation practices.

Collaboration

We collaborate with others in our industry, including our competitors, to share learnings in an effort to advance solutions to systemic agricultural challenges that we all face across key commodities.

• Farm and Food Council: Business advisory council with commodity organizations whose strategic initiative aims to deepen relationships with farmers and improve our decision-making as a business, and consists of national agricultural organizations that represent farmers growing key inputs in our supply chain such as potatoes, corn, soybean, wheat and sugar.
• World Economic Forum's First Movers Coalition for Food: Aiming to accelerate demand for sustainably produced and low-emission agricultural commodities.
• Cool Farm Alliance: A collaboration that brings together farmers, NGOs, multinational food suppliers and retailers to promote agricultural practices that mitigate greenhouse gas emissions.
• Field to Market: An initiative to bring together a diverse group of grower organizations, agribusinesses, food, beverage, apparel, restaurant and retail companies, conservation groups, universities and public sector stakeholders aiming to define, measure and advance the sustainability of food, feed, fiber and fuel production in the United States. In 2022, Field to Market was awarded funding from the USDA through the Partnerships for Climate-Smart Commodities opportunity with an approximate funding ceiling of $70 million.
• Midwest Row Crop Collaborative (MRCC): A collaboration aiming to drive positive environmental change in the upper Mississippi River Basin, the MRCC develops solutions for removing barriers to widespread adoption of regenerative agricultural practices, with members spanning the food and agriculture supply chain.
• Sustainable Agriculture Initiative (SAI): An initiative to bring companies together in an effort to accelerate the widespread adoption of sustainable agriculture practices and the transformation to sustainable food systems.
• The Sustainable Market Initiative Agribusiness Task Force: An initiative that aims to enable regenerative farming practices to be widely adopted by understanding what actors in the supply chain can do differently to make regenerative farming a ‘no-brainer’ business decision for farmers.

What's next?

We expect to drive our Positive Agriculture ambition forward by enhancing our stakeholder engagement and shared value approach, collaborating with industry-leading stakeholders.

We aim to expand our regenerative agriculture efforts while addressing off-farm challenges that impact the overall ecosystem through restoration and protection of non-farmland. We are working with internal and external experts to identify and assess key impacts and risks and to formulate goals and strategies to mitigate these. The type and focus of these assessments evolve over time in response to the latest science, stakeholder expectations and other developments. PepsiCo continues to monitor and evaluate scientific advances, innovative opportunities and the needs of the business and its stakeholders; any future adjustments to its assessment approach are anticipated to reflect these.

Five years into our pep+ strategy, we see an opportunity to deepen positive impact in farming communities. Through 2030, we plan to focus on:

• Building farmer, community, soil and climate resilience as well as biodiversity and watershed resilience through collaboration with stakeholders in our supply chain;
• Embedding impact across positive agriculture initiatives to help drive sustained, scalable outcomes; and
• Supporting transformation of farming ecosystems in key sourcing landscapes.

¹C. Zhao,B. Liu,S. Piao,X. et al, 2017: Temperature increase reduces global yields of major crops in four independent estimates, Proceedings of National Academy of Sciences. U.S.A.

²UN Food and Agriculture Organization, 2021: The State of Food and Agriculture 2020

³Caretta, M.A., A. Mukherji, M. Arfanuzzaman, R.A. Betts, A. Gelfan, Y. Hirabayashi, T.K. Lissner, J. Liu, E. Lopez Gunn, R. Morgan, S. Mwanga, and S. Supratid, 2022: Water. In: Climate Change 2022: Impacts, Adaptation and Vulnerability

⁴See Calculation Methodology for detail on how we measure progress on this metric. Metric published July 1, 2026  

⁵See archived 2023-2024 Calculation Methodology for detail on how we measured progress on this metric

⁶Acres may have shown multiple types of impacts; as a result, acres shown here do not sum to the total acres reported in progress against our pep+ goal

Calculation methodology

Target metric

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

How we measure

Assurance: Subjected to third-party limited assurance

Boundary: Farming communities and/or landscapes where farms produce in-scope ingredients and materials (for categories that represent over 0.01% of annual volume-based supply) procured through direct and indirect purchasing models for use in wholly owned PepsiCo manufacturing facilities, and direct purchases made by PepsiCo on behalf of contract manufacturers and co-packers

Exclusions: Farming communities and/or landscapes where farms produce ingredient volumes purchased by joint ventures (JVs), franchise bottlers, contract manufacturers and co-packers or ingredient volumes procured through unplanned purchases on the open market (spot purchases). Acquisitions completed in 2025

Baseline: None

Restatement from prior year(s): None

This metric captures the summation of acres of land supporting the growth of our key crops and ingredients across all regions, that are involved in the continuous improvement journey of implementing regenerative, restorative or protective practices to improve and restore ecosystems associated with land in and around the PepsiCo supply sheds.

An acre is considered to be delivering regenerative agriculture impact when it is used to grow crops and when the adoption of regenerative agriculture practices results in quantified improvements on productive lands in at least two of the environmental outcome areas among soil, water, climate and the promotion of biodiversity within productive acres. PepsiCo prefers — but does not require — that climate is one impact area.

An acre is considered to be contributing to nature restoration or protection when activities lead to biodiversity and ecological improvements on lands not used for agricultural production. Contributing activities enhance the resilience of the ecosystem in the farming landscape, and the lands must remain out of agricultural production in the future in order to continue to qualify as restored or protected acres. This could include demonstrating:

• Improvement of converted or degraded lands to desired ecological states (improved ecosystem connectivity),
• Increased areas under natural ecosystem protection, or
• Increased effectiveness of protected area management.

Land that returns to agricultural production is eligible to qualify as regenerative acres.

Refer to PepsiCo’s Regenerate, Restore and Protect 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. Refer to PepsiCo’s Regenerative Agriculture Practice Bank for an indicative listing of practices and impact areas. PepsiCo validates regenerative agriculture status of total reported acres annually using approved reporting tools and on-the-farm data, often aggregated by a third party.

Target metric

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

How we measure

Assurance: Subjected to third-party limited assurance

Boundary: In-scope ingredients and materials (for categories that represent over 0.01% of annual volume-based supply) procured through direct and indirect purchasing models for use in wholly owned PepsiCo manufacturing facilities, and direct purchases made by PepsiCo on behalf of contract manufacturers and co-packers

Exclusions: Ingredient volumes purchased by JVs, franchise bottlers, contract manufacturers and co-packers. Unplanned purchases of key ingredients on the open market (spot purchases). Acquisitions completed in 2025

Baseline: None

Restatement from prior year(s): None

This metric measures the percentage of total in-scope key ingredient volumes that qualify as “Sustainably Sourced” and “Engaged” as defined in PepsiCo’s Sustainable Sourcing Guidelines. This framework sets forth the environmental and social impact principles and guidance for implementing and measuring progress toward PepsiCo’s Sustainable Sourcing goal for both grower- and supplier-sourced crops. To determine the ingredients that fall in scope for this goal, PepsiCo uses both volume- and risk-based approaches. Ingredients are considered for inclusion based on a combination of factors, including purchased volume, social and environmental risk scores, and business criticality. PepsiCo assesses the social and environmental risks associated with growing or sourcing each ingredient, using publicly available risk indices to guide evaluation — including Maplecroft, LRQA, Yale Environmental Performance Index (EPI), World Resources Institute (WRI) Aqueduct tool, Alliance of Bioversity International, the International Center for Topical Agriculture (CIAT) Climate Resilience Platform (CRP) and review of local legislation enforcement. PepsiCo uses its evaluations to help identify risks and appropriate pathways, including certifications and credits, to help mitigate those risks.

Sustainable Sourcing practices can help manage risks, but challenges like deforestation or social issues can persist in some regions. Key ingredients which cannot qualify as sustainably sourced due to systemic barriers but nonetheless show progress in implementing more sustainable practices are reported as “Engaged” in a supporting metric.

Refer to PepsiCo’s Sustainable Sourcing Guidelines for further details on definitions, key ingredients, and qualifications for this metric.

Target metric

Improve the livelihoods of more than 250,000 people in our agriculture supply chains and supporting communities by 2030

How we measure

Assurance: Subjected to third-party limited assurance

Boundary: People connected to PepsiCo’s agricultural supply chains, or in supply sheds anticipated to be connected to future sourcing, including farmers, farm workers and communities

Exclusions:  None

Baseline: Project specific, with cumulative results since 2021

Restatement from prior year(s): Cumulative results include current year performance and performance in prior years that were adjusted to reflect the availability of improved data

This metric captures the number of livelihoods reached through an outcome-focused evaluation from PepsiCo’s Positive Agriculture initiatives. This metric focuses on improvements in three areas:

• Economic prosperity: profitability and relative poverty level
• Farmer and farm worker security: food security, land rights, wages and labor practices
• Inclusion and economic empowerment: decision-making in the field and access to and control of resources

For livelihoods within a program or project to count toward this goal, the intervention must:

• Operate in a high-risk country or target vulnerable farming communities;
• Be associated with a current or anticipated future PepsiCo supply chain or sourcing region; and
• Measure and demonstrate positive improvement in at least one primary indicator noted above.

The livelihoods improved count can employ a credible sampling methodology to track impact. For cases in which the positive impact to the beneficiary impacts a full household, such as increased profitability, the count includes the household members. Average household size is obtained from program data or the Global Data Lab average household size database.

This metric is limited to programs active at some point between 2021 and 2030 and counts cumulative outcomes achieved during this timeframe.