Environment, health and safety

Why it matters

Approach

Our vision for EHS is guided by our mission statement: Beyond Zero — Pursue Positive. Through this vision, supported by our EHS strategy, we aim to realize an incident-free workplace and promote a culture of positive impacts on the health and well-being of our employees, the environment and the communities in which we operate.

The vision is made up of three ambitions:

• Incident-free work environment;
• Positive impact on the health and well-being of our employees; and
• Positive impact on the environment and communities in which we operate

To achieve these ambitions, we developed a strategy based on the following pillars:

• People: creating a “Courage to Care” cultural mindset of risk anticipation
• Risks: identifying and controlling critical risks
• Processes: enabling robust executions of EHS standards, processes and programs

This vision guides the operations teams as they endeavor to reduce environmental incidents and occupational injuries and illnesses and enhance safe driving, while making, moving and selling our iconic products.

Governance

PepsiCo formalizes its EHS vision and strategy through its EHS Policy, which focuses on environmental protection, safe driving and occupational health and safety for all people. The Global EHS function leads the development of the vision, strategy and policies, while segment EHS teams execute the strategy to reduce risk and drive continuous improvement across operations.

The Global Environment Health & Safety Management System (GEHSMS) sits at the core of the EHS function. GEHSMS provides a cohesive, enterprise-wide set of management and technical standards for key EHS risks and aligns with ISO 14001 and ISO 45001 while supporting regulatory compliance in the areas in which we operate. Through GEHSMS, operations:

• Identify opportunities to improve EHS performance;
• Manage and mitigate operational EHS risks and impacts;
• Comply with applicable EHS regulations and global minimum standards; and
• Plan for continuous EHS performance improvement.

A comprehensive GEHSMS audit program, including self-assessments, internal audits and external audits, evaluates system effectiveness and governance. This program validates that GEHSMS drives continuous improvement, integrates into business processes, conforms to applicable international standards across certified sites and meets regulatory requirements and minimum global standards.

Risk management

PepsiCo identifies, assesses and prioritizes EHS risks across our business operations using standardized processes aligned with enterprise risk management. Cross‑functional teams evaluate safety, environmental and process hazards and integrate insights into business planning and capital decisions, while leadership reviews risk trends, audits and incident learnings to strengthen controls.

The EHS management system drives consistent execution through clear standards, training and accountability. Site teams implement preventive programs, conduct routine inspections, monitor leading and lagging indicators and extend EHS expectations to suppliers and contractors. Continuous improvement efforts enhance technology, data quality and employee engagement to strengthen risk visibility, response and business continuity.

Strategy

We strive to build a proactive EHS culture by driving ownership of environment, health and safety at individual, managerial and organizational levels. We call this culture “Courage to Care” and through it, we engage and train employees, apply policies, procedures and risk control methodologies designed to protect our workforce. We provide EHS materials in multiple languages to meet the needs of our workforce.

Health and safety management

To help protect our employees from occupational injuries and illnesses, we identify high risk activities, including the examples below, and invest in a wide range of engineering, technological and behavioral solutions.

Improving on-the-road safety

Moving products requires extensive delivery infrastructure, making on‑the‑road safety a priority in the communities where PepsiCo operates. Our approach focuses on driver capability, route optimization and vehicle maintenance and safety. PepsiCo trains drivers in safe and defensive driving, uses fleet telematics, assesses routes for risk and invests in advanced vehicle safety technologies to reduce road incidents.

Operational safety

For machine safety, PepsiCo uses various techniques, including virtual design reviews and augmented reality, to assess technical risks and implements controls that strengthen physical safeguards and safety awareness. The company deploys ergonomic risk control technologies to promote safe handling and posture and addresses other operational risks, including powered industrial trucks.

PepsiCo conducts job hazard analyses, provides task‑appropriate PPE and thorough training for employees at all manufacturing and distribution sites.

Environmental management

We proactively monitor environmental protection legislation and emerging trends and apply a risk-based approach leveraging GEHSMS standards across the following key environmental areas:

To prevent and control spills, PepsiCo implements site‑level spill risk analyses, employee training, incident reporting and follow‑up actions. Sites maintain Spill Prevention and Response Plans aligned with the GEHSMS standard to prevent, respond to and minimize risks from chemical, oil and other material releases to the environment and nearby communities.

For chemical safety, the GEHSMS Chemical Storage and Management Standard defines minimum requirements for safe chemical selection, approval, use, handling, storage, transportation and training. Risk‑based processes prioritize nonhazardous or less hazardous substances, identify opportunities to eliminate the use of hazardous substances, support regulatory compliance and protect workers, contractors, the public and the environment. All sites are required to implement a Chemical Storage and Management Program.

Air emissions management follows the GEHSMS Air Quality Management Standard, which establishes minimum requirements and best practices to comply with applicable regulations and control air pollution risks that could affect human health and the environment. Each location is required to apply air emissions pollution prevention practices to minimize potential impacts.

Waste management efforts focus on minimizing waste generation and controlling risks associated with storage, handling, and shipment offsite. Guided by the GEHSMS Waste Management Standard, sites apply tailored strategies that reflect local infrastructure, regulatory requirements and improvement opportunities.

Wastewater discharges follow the GEHSMS Discharge of Wastewater Standard, which requires effluent to meet regulatory and PepsiCo standards and to maintain an effluent quality that does not degrade local water quality.

PepsiCo also provides access to safe potable water, sanitation and hygiene for all our employees in manufacturing operations under the GEHSMS Potable Water Standard. This approach aligns with participation in the WASH4Work pledge, supports employee well‑being at work and is consistent with our broader water ambitions.

Progress

Metrics and targets

We set standards for ourselves and our operations that reflect our ambition for a safe workplace for our employees.

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

Actions and challenges

Actions

GEHSMS

PepsiCo prioritizes high standards for EHS management and performance across all owned operations, which must comply with GEHSMS. 113 of our facilities (47%) also maintain ISO 14001 and ISO 45001 certification — in certain jurisdictions, dual certification supports regulatory alignment and stakeholder expectations. Third‑party auditors validate group ISO certification annually, and PepsiCo benchmarks performance against peers to reinforce strong EHS execution and risk mitigation. Because ISO certification does not add equal value in all locations, some facilities, including in the United States, rely on conformance with GEHSMS standards to assure EHS performance.

Health and safety

PepsiCo continues to develop and deploy strategies that aim to protect employees and members of the communities in which we operate. In 2025, PepsiCo continued to build critical capabilities around machines and equipment safety through a series of Machine Safety Summits and furthered the use of sensor array technology to improve ergonomic risk profiles. Additionally, PepsiCo focused on incident prevention by pursuing In‑Vehicle Driver Assistance Systems through the Drive Safe on the Go initiative, a technology-based program designed to reduce vehicle collisions.

Environmental protection

In 2025, we continued our efforts in the key focus areas for operational environmental performance, including launching two new evaluation tools of our wastewater treatment and ammonia refrigeration systems which include a comprehensive review of their design, construction and operation aspects on a regular basis. These evaluations are completed digitally to facilitate completion, track follow-up actions, and enable evaluation of trends across systems globally.

Additionally, we expanded access to an existing mobile app designed to prepare for and respond to various types of emergencies to facilitate rapid and effective actions to mitigate the potential impacts of crises.

Challenges

Despite increasing complexity across our business, we continue to execute strong risk reduction programs and have elevated execution of certain safety programs even deeper and more effectively within the organization. In addition, our Courage to Care EHS mindset continues to be embedded into all operating functions, communications and strategies.

Strategic collaboration

PepsiCo continues to collaborate with industry leading multi-national corporations to align private sector efforts with the United Nations’ Decade of Action for Road Safety to improve road safety through our membership with Together for Safer Roads Coalition.

PepsiCo also collaborates and participates in a number of other external EHS organizations where we can benchmark, discuss and share best practices designed to improve EHS policies, procedures and strategies.

¹See Calculation Methodology for detail on how we measure progress on this metric. Metric published August 13,2026

²See archived 2023-2024 Calculation Methodology for detail on how we measured progress on this metric

³This figure excludes non-manufacturing and certain acquired company-owned sites

Calculation methodology

Target metric

Continue to strive for an injury-free work environment

How we measure

Assurance: Subjected to third-party limited assurance

Boundary: Full-time, part-time and seasonal employees and dependent contractors of PepsiCo. Excludes joint ventures and franchise bottlers

Exclusions: Acquisitions since 2025

Baseline: None

Restatement from prior year(s): None

Lost Time Incident Rate (LTIR) measures the frequency of occupational impacts that result in days away from work. It is calculated by multiplying the sum of the total number of cases meeting the lost time occupational injury and lost time occupational illness definitions that resulted in one or more lost days by 200,000, then dividing the product by the total number of hours worked by all PepsiCo employees and dependent contractors in a calendar year. 200,000 represents the number of hours 100 employees, working 40 hours per week, 50 weeks per year would work and provides a standard basis for calculating incident rate for an entire year. Investigations occur on a case-by-case basis and close in various timeframes that may affect historical results. The LTIR is calculated in accordance to the Occupational Safety and Health Administration (OSHA) Part 1904 - Recording and Reporting Occupational Injuries and Illnesses.