What PepsiCo’s PAO Accelerator reveals about the company’s 2025 ESG progress

What does PepsiCo’s Positive Agriculture work look like on the ground? Through the Positive Agriculture Outcomes (PAO) Accelerator, a program launched in 2021, PepsiCo works with farmers, agronomic experts and regional teams who understand local climate risks and socio-economic conditions. With targeted co-investment, the program helps test emerging technologies and accelerate the scaling of regenerative agriculture solutions that can support farm resilience and advance PepsiCo’s Positive Agriculture goals.

In 2026, the PAO Accelerator is backing its largest portfolio yet: more than 30 projects and scale-up initiatives across key sourcing regions. With more than $2 million in catalytic funding in 2026, the program aims to help regional teams test promising solutions in the field and identify which approaches may be ready for broader adoption.

How is it being tested in Mexico?

In Mexico’s Bajío region, a PAO Accelerator pilot is testing multi-gate irrigation across approximately 1,400 acres of white maize. The project is assessing whether this lower-cost alternative to traditional precision irrigation can help corn farmers use water more efficiently while delivering agronomic, environmental and economic benefits in a region where declining water availability poses a growing risk to long-term agricultural productivity.

By bringing PepsiCo, farmers, suppliers and technology partners together in real farming conditions, the pilot has potential to build evidence for a practical solution that could improve water stewardship, strengthen farmer resilience and scale across PepsiCo’s corn supply chain if successful.

How the PAO Accelerator connects to PepsiCo’s 2025 ESG Summary

The PAO Accelerator is one example of how PepsiCo builds the innovation pipeline behind Positive Agriculture, creating evidence that helps successful solutions grow from local trials into broader business and farming impact. It’s representative of PepsiCo’s broader pep+ journey, connecting work on farms to the company’s wider efforts across agriculture, operations and communities.

PepsiCo’s 2025 ESG Summary highlights how the company is helping to drive growth across three pep+ pillars: Positive Agriculture, Positive Value Chain and Positive Choices. These pillars reflect how PepsiCo is working to help source crops and ingredients more sustainably, build a more circular and inclusive value chain and inspire positive choices for people and the planet.

What are the key takeaways from PepsiCo’s 2025 ESG Summary?

The 2025 ESG Summary shares updates across the company’s pep+ agenda. Here are five highlights:

• 4.7 million acres farmed in regenerative, restorative, and protective farming practices.¹
• 24% progress towards our scope 1 & 2 goal against our 2022 market baseline.²
• Over 60 countries from which we source ingredients.³
• 79 billion portions of diverse ingredients delivered.⁴
• 6% reduction in absolute tonnage of virgin plastics in primary plastic packaging in key packaging markets between 2024 and 2025.⁵

How PepsiCo is advancing pep+ across agriculture, climate and packaging

Together, these results point to the broader work behind PepsiCo’s pep+ agenda: supporting agricultural resilience through Positive Agriculture, driving climate action and packaging progress through Positive Value Chain and delivering more portions diverse ingredients through Positive Choices.

Visit the 2025 ESG Summary website.

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

²_{PepsiCo keeps track of the evolving external guidance from the Greenhouse Gas Protocol (GHGP) and the Science Based Targets Initiative (SBTi) and calculates our footprint and target progress in line with these standards. Our reported target progress is calculated in accordance with SBTi’s Corporate Net Zero Standard (CNZS) V2.0 innovations that apply to our targets set under CNZS V1.0. We report emission reductions against baseline calculated from our physical footprint and separately report target progress that includes system contributions from activity pool and sector level actions. Further details can be found in our Climate Accounting Statement. This reporting approach may change in the future as further guidance is made available from the GHGP and SBTi.}

³_{See Calculation Methodology for detail on how we measure progress on this metric. Metric published July 1, 2026}

⁴_{See Calculation Methodology for detail on how we measure progress on this metric. Metric published August 13, 2026}

⁵_{See Calculation Methodology for detail on how we measure progress on this metric. Metric published August 13, 2026}