Our ESG Approach

About PepsiCo

PepsiCo

Our vision is to Be the Global Leader in Beverages and Convenient Foods by Winning with PepsiCo Positive (pep+). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth.

>1 billion times each day PepsiCo products are enjoyed around the world
200+ countries and territories where our products are sold
300,000+ employees
>$79 billion net revenue in 2021

pep+ pillars

pillars

We're charting a new course to drive positive action for the planet and people. A better food system means better outcomes for the Earth, and all of us.

By becoming better ourselves, we can help build a stronger, more sustainable future for us all. pep+ will guide our business — how we operate within planetary boundaries and inspire positive change for the planet and people.

We’re evolving how we source our ingredients and make and sell our products, and how we inspire people through our brands.

PepsiCo Positive logo
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Positive Agriculture

We're working to source our crops and ingredients in ways that restore the earth and strengthen farming communities.

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Positive Value Chain

We're helping to build a circular and inclusive value chain. 

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Windmills
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Positive Choices

We're inspiring people through our brands to make choices that create more smiles for them and the planet. 

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Our value chain

Scale

Across our value chain, PepsiCo is using our global reach and expertise to drive solutions at scale. 

PepsiCo’s sustainability strategy targets every stage of our complex value chain to use resources more efficiently, reduce greenhouse gas (GHG) emissions, replenish water, improve our products and recapture packaging materials.

Investments in our circular and inclusive value chain will help accelerate the systemic change needed to address major global challenges.

  • Agricultural Sourcing PepsiCo sources crops from more than 30 countries and supports more than 100,000 jobs throughout our agricultural supply chain. The standards we apply and promote can help improve the environmental, social and economic health of agricultural communities around the world.
  • Consumption PepsiCo products are enjoyed by consumers more than 1 billion times a day. We’re responding to changing consumer preferences by transforming our product portfolio and reformulating many of our beverages and convenient foods to reduce added sugars, sodium and saturated fat.
  • Distribution PepsiCo products are sold in over 200 countries and territories. In 2021, our company-owned fleet traveled approximately 1.2 billion miles worldwide to bring PepsiCo products to customers. We are working to reduce the impact of those miles by continuing to adopt more efficient vehicles and practices.
  • R&D and Manufacturing We spent >$750 million on R&D in 2021 as part of our continued investment in developing quality and innovative beverages and convenient foods. Our 294 manufacturing facilities bring together innovators and operations teams who work to use water, energy and ingredients efficiently to create our beverages and convenient foods. In 2021, we produced more than 90 million metric tons of beverages and convenient foods.
  • Post-Consumer PepsiCo’s sustainable packaging vision is to help build a world where packaging never becomes waste by driving the shift from a linear economy to a circular economy. We continue to grow our portfolio of Beyond the Bottle offerings, innovate to develop sustainable packaging and work to improve recycling infrastructure.

Governance

Governance

We believe strong governance is the foundation for delivering on our pep+ (PepsiCo Positive) agenda. At PepsiCo, our ESG approach is integrated into, not separate from, our business. 

In governing using this approach, we maintain a similarly integrated structure that combines Board and senior leadership oversight with the subject-matter and localized expertise that informs our strategy and how we execute it.

The full Board considers ESG issues to be an integral part of its business strategy oversight. To this end, our Sustainability, Diversity and Public Policy Committee assists the Board in providing more focused oversight of key sustainability, diversity, equity and inclusion and public policy matters. This Committee is comprised entirely of independent directors and reflects a mix of public policy, risk, international and science-related skills, qualifications and experience.

Strategy and progress against our pep+ goals are regularly reviewed during meetings of an Executive Committee sub-committee composed of members of our senior leadership management team and also reviewed as part of the expanded Executive Committee agenda. This provides opportunities for our senior leadership to align on major strategic issues relating to ESG.

PepsiCo's Global Sustainability Office, led by the company’s Chief Sustainability Officer with Sustainability teams in each sector, drives governance and delivery of the company’s sustainability agenda across the value chain. Serving as the central connection point, the Sustainability Office works closely with leaders from across the business to drive continued progress against our pep+ agenda and ensure that ESG is embedded into our long-term strategic planning.

Our reporting strategy

Reporting

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, non-governmental organizations (NGOs), regulators and others. 

Understanding that stakeholder needs differ, we publish a suite of reporting elements, targeted at different stakeholder groups. We combine disclosure of strategy, policy, data and case studies, according to our understanding of stakeholder interest. Our reporting suite comprises:

  • This ESG Summary: An evolution from our prior Sustainability Report, our digital ESG Summary provides a high level overview of our pep+ agenda and progress made during the year. It aims to demonstrate 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. Users can also use the ‘Report Builder’ functionality to download a version tailored to their interests.
  • ESG 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 the Global Reporting Initiative (GRI), the Sustainable Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures (TCFD) and CDP (formerly the Carbon Disclosure Project) climate, water and forest responses. It also includes specialized reporting, such as our annual Green Bond Reports.
  • ESG Topics A-Z: An evergreen deep-dive on around 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.   

We are constantly evaluating our goals and progress, assessing the technical and regulatory challenges we face in achieving our ambitious objectives, and innovating new ways to keep moving forward. As frameworks and regulations continue to expand in the U.S., Europe and beyond, and as we encounter new challenges and opportunities, our commitment to transparency in reporting our strategy, goals, initiatives and progress on ESG topics will remain steadfast.

Our Sustainability Journey

Journey

In 2006 PepsiCo started on a journey to transform the way we do business so that we can deliver strong financial returns in a way that is responsive to the needs of the world around us. 

Learn more about how we're making a difference