Introduction
At PepsiCo, we are driven by a simple but powerful ambition: to be Hungry and Thirsty for Growth. Growth shapes how we make decisions, invest in the business, and strengthen our competitive advantage. At the center of that strategy is pep+ (PepsiCo Positive)—our end-to-end transformation to make PepsiCo stronger, more resilient, and better positioned for the future.
pep+ is our business strategy which aims to build resilience into our supply chain, innovate to meet changing consumer preferences, and create long-term value for shareholders while also helping protect the people, resources, and communities that underpin our success.
Approach
This work takes long-term thinking, focused investment, and collaboration across internal and external stakeholders. While some challenges persist in the delivery of pep+ and as our business grows, our strategy is helping us create value, strengthen operations, build a more resilient value chain, attract and retain top talent, and contribute to a more positive future for people and the planet.
Progress
In 2025, we continued to make meaningful progress across our pep+ priorities.
Water
On water, we met our 2025 water replenishment target at PepsiCo-owned facilities in high water-risk areas and reached 58% progress toward our 2030 watershed replenishment goal at PepsiCo- and franchise bottler-owned manufacturing facilities in high water-risk areas1, replenishing approximately 23 billion liters of water to local watersheds, while improving water-use efficiency across our operations.
Agriculture
Across agriculture, we expanded regenerative, restorative, and protective practices to 4.7 million acres globally. We have continued to advance our vision for sustainable sourcing, and since 2021, we have worked to improve the livelihoods of approximately 224,000 people across our agricultural value chain2. These efforts aim to help strengthen farming communities, improve productivity, and ensure a reliable supply of high-quality ingredients for the long term.
Climate
We also made steady progress toward our 2030 goal to lower our carbon footprint, lowering absolute Scope 1 and 2 emissions relative to our 2022 baseline. This reflects ongoing work to improve efficiency, expand renewable energy adoption, and reduce emissions across our operations.
Packaging
We continued to advance our efforts on packaging, including a 6%3 reduction in virgin plastic use in primary plastic packaging in key packaging markets in 2025. At the same time, we know that achieving our broader packaging goals will require more circular solutions and system-wide change beyond any one company’s efforts, and we continue to face headwinds such as gaps in recycling infrastructure.
Nutrition
In 2025, we continued work on the evolution of our portfolio, reducing the use of artificial colors and additives and enhancing nutrient density to the products consumers know and love. We have met our previous 2025 goals to reduce sugar and saturated fat and will work to maintain these reduced levels in our portfolio, while at the same time aiming to deliver our 2030 diverse ingredients and sodium reduction goals. 2025 was a pivotal year, and the efforts we have made will be critical to staying ahead of changing consumer preferences and winning in the marketplace.
You can see our full reporting across our ESG Topics A to Z pages and 2025 ESG Performance Metrics and Calculation Methodology document, but across each of these areas, the connection is clear: as we invest in sustainability and portfolio transformation, we strengthen our business. When we strengthen our business, we unlock growth.
What’s Next
Looking ahead, our goal remains to perform at a high level—aiming to scale our impact, further embedding pep+ into every part of the business, and continuing to raise the bar on business resilience. We also will remain agile, continuously evaluating our goals and path forward in light of evolving business needs and external pressures to adapt to changing conditions. Because when we do, PepsiCo becomes faster, stronger, and better positioned to win over the long term.
We are proud of the progress we have made, and at the same time, we know there is more to do. What gives me confidence is our people—their commitment, their passion, and their ability to deliver results.
We are Hungry and Thirsty for Growth—and pep+ is how we intend to continue to deliver it.