Our Strategy

We're committed to building
a more sustainable food system

from CEO Ramon Laguarta

A Letter

Ramon Laguarta

Now more than ever, consumers are acutely aware of the interconnected nature of our global food system—its impact on our planet, its support for our communities and its ability to provide nourishment for billions of people across the world.

Unfortunately, the bonds holding this delicate ecosystem together are beginning to fray right in front of our eyes. First of all, climate change is endangering our natural resources. By one estimate, every degree of warming could reduce staple crop yields by 10%. What used to be hundred-year weather events are now happening every other year, and according to the UN, more than half the planet’s fertile topsoil is now degraded.

This is reducing the soil’s potential to grow food and sequester carbon, increasing our vulnerability to extreme weather events, and impacting water quality and biodiversity. The COVID-19 pandemic has only exacerbated these challenges and highlighted the inequalities that underlie much of our food system and our society. Such drastic shifts not only threaten the health of our planet and communities, they also present challenges for our business. As a company that sources crops from over 7 million acres of farmland in 60 different countries, PepsiCo has deep roots in the global food system. At the same time, our consumers are demanding new products that are more sustainable and made with minimal impact on the environment.

That is why we are working to transform the way we create shared value by operating within planetary boundaries and inspiring positive change for the planet and people. This will make us a Better company, with purpose more deeply integrated into our business strategy. It will also make us Faster and Stronger, enabling accelerated growth and continued investment in our people, business and communities. And we hope it will make us an example, for our partners and our peers.

There's no slowing down our ambition to drive a positive impact on our planet and the communities we serve.

Jim Andrew

Chief Sustainability Officer; EVP, Beyond the Bottle businesses

Jim Andrew
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Focus Areas

At PepsiCo, we believe that there is an opportunity to change how the world produces, distributes, consumes foods and beverages and disposes of packaging. 

Value Chain

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

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Governance

We believe strong governance is the foundation for delivering on our sustainability agenda. At PepsiCo, our sustainability approach is integrated into, and not separate from, our business.

In governing 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 approach.

The full Board considers sustainability issues to be an integral part of its business strategy oversight. To this end our Sustainability, Diversity and Public Policy Committee provides more focused oversight of key sustainability, diversity 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 sustainability goals are regularly reviewed during meetings of an Executive Council sub-committee composed of members of our senior leadership management team and also reviewed as part of the expanded Executive Council agenda. This provides opportunities for our senior leadership to align on major strategic issues relating to sustainability.

PepsiCo's Global Sustainability Office, led by the company’s Chief Sustainability Officer, 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 ensure continued progress against our sustainability agenda and that sustainability is embedded into our long-term strategic planning.

Timeline

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. Our fundamental belief is that the success of our company is inextricably linked to the sustainability of the world around us, and each year we continue to make valuable progress.

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Goals & Progress

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Summary Report

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Learn more about how we're
making a difference.