Our reporting is the primary way that PepsiCo informs key stakeholders about our sustainability ambitions and progress. Our stakeholders include investors, potential and current employees, customers and consumers, suppliers, NGOs, regulators, 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. 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 varies slightly from year-to-year. Our reporting suite comprises:
- 2020 Sustainability Report: A fully digital report intended to bring our sustainability agenda to life for all stakeholders, with an overview of our focus areas and progress made during the year. Users can also use the ‘Report Builder’ functionality to download a version tailored to their interests.
- 2020 Sustainability Performance Metrics: Time-series data for our key sustainability goals, intended to support ESG analysis, primarily for financial stakeholders, ESG raters and NGOs
- Indices and framework responses and other topic-specific disclosures: These map our reporting to specific metrics established by key reporting frameworks including GRI, SASB, TCFD and CDP (climate, water and forest). It also includes specialized reporting, such as our annual Green Bond Report.
- ESG Topics A-Z: An evergreen deep-dive on roughly 50 sustainability-related topics designed to provide accessible, consistent information for those looking for greater depth on PepsiCo’s ESG strategy, management, policies, progress and partnerships.
Delivering PepsiCo’s sustainability reporting suite is generally managed and executed by the Sustainability Office’s Reporting Team, with significant partnership from Communications, Corporate Affairs and the various subject-matter experts (SMEs) of the topics covered in reporting. Validation of publicly-reported data is managed by the Sustainability Office’s Data Governance Team, in partnership with Legal and Control functions and SMEs. PepsiCo continues to increase the scope of data reviewed and independently assured by third parties; for more detail, see ESG Data Governance.
We aim to report in a consistent way that allows comparison over time of our own performance and between companies. To this end, we align with prominent ESG reporting frameworks 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, risk associated with disclosure, and materiality to the business.
In addition to the disclosure required by external frameworks, PepsiCo uses its own metrics to gauge and communicate progress. For time-series data on these, see our Sustainability Performance Metrics.
Stakeholders expect sustainability disclosures to be accurate and complete. To ensure this credibility, we have robust data governance in place, and we have been engaging third party assurers on select sustainability metrics for 15 years. Throughout our reporting, assured metrics are indicated with an icon. For 2020 data, limited independent assurance was obtained for the following metrics:
APEX Companies, LLC:
- Scope 1 GHG emissions
- Scope 2 GHG emissions (location and market-based)
- Scope 3 GHG emissions (partial):
- Downstream transportation and distribution
- Global energy consumption associated with manufacturing & warehouse
operations, fleet operations, offices and distribution centers:
- Total energy consumption
- Total site electricity consumption
- Total renewable electricity consumption
- Total U.S. electricity consumption associated with manufacturing & warehouse operations, fleet operations, offices & distribution centers
- Total renewable electricity as a percentage of total electricity associated with manufacturing & warehouse operations, fleet operations, offices and distribution centers
- Total renewable energy certificates (RECs) allocated to PepsiCo, Inc. associated with electric power generation from renewable resources in the U.S.
- Water consumption associated with manufacturing & warehouse operations
- Waste generation associated with manufacturing & warehouse operations
- Primary production associated with manufacturing & warehouse operations
Partnership for a Healthier America (PHA):
- Added sugars reduction: Percent of beverage volume with ≤100 Calories from added sugars per 12oz. serving in top 26 global beverage markets
- Sodium reduction: Percent of foods portfolio volume with 1.3 milligrams of sodium or less per Calorie in top 23 global foods markets
- Saturated fat reduction: Percent of foods portfolio with 1.1 grams of saturated fat or less per 100 Calories in top 23 global foods markets.
We continue to evolve and improve our reporting suite to meet increasing stakeholder demands for transparency and utility. Our 2020 reporting suite (delivered in 2021) included our first-ever reporting against SASB Food and Beverage standards. While we aren’t yet able to report fully against all metrics, we continue to make progress on reporting to more of the SASB metrics more comprehensively each year.
With the launch of pep+ (PepsiCo Positive), we launched 17 new goals that we will incorporate into our future reporting.
Our reporting continues to be recognized for excellence externally. In 2021, Corporate Secretary named PepsiCo Best ESG Reporting for the second year in a row. PepsiCo has also been recognized for its ESG reporting and performance by MSCI, Sustainalytics and CFI.co.
In 2021, PepsiCo received a AA rating in the MSCI ratings
ISS ESG QualityScores are current as of March 15, 2022
We are seeing increased calls for enhanced reporting, including in the U.S. and EU. We continue to monitor the regulatory environment and remain committed to delivering transparent and stakeholder-centric reporting as we work towards achieving our pep+ (PepsiCo Positive) ambitions.
June 22, 2022