2019 Sustainability Report Goals & Progress


Below is a snapshot of our 2019 progress toward our sustainability goals. For more detailed information on our performance over time, download our 2019 Performance Metrics sheet.

Download our 2019 Performance Metrics sheet

OUR WORK IS ALIGNED WITH UN SUSTAINABLE DEVELOPMENT GOALS


Logo: UN Sustainable Development Goals

In 2015, the United Nations General Assembly announced 17 Sustainable Development Goals (SDGs) to address global challenges and set a blueprint for action to achieve the goals by 2030. Our sustainability priorities are aligned with the SDGs so that our actions can contribute to a greater collective impact.

Business Avengers for UN SDGs
PepsiCo is proud to be a Business Avenger for the UN Sustainable Development Goals. Our ambition is to use our scale, reach, and expertise to help build a more sustainable food system, and the SDGs provide a vital framework for progress and partnership on a global scale. Our efforts toward Goal 2, Zero Hunger, are aimed at increasing food security in areas where hunger and malnutrition remain prevalent, by promoting sustainable practices that improve farm productivity, farmer livelihoods, and agricultural resiliency.

Learn more about the UN Global Goals and PepsiCo’s work as a Business Avenger here:

Focus AreaGoalMetrics20182019
Focus Area

Agriculture

 

Goal

Advance environmental, social, and economic benefits to communities around the world by supporting practices and technologies that promote improved farmer livelihoods and agricultural resiliency.

Metrics20182019

Achieve 100% sustainably sourced1 potato, whole corn, oats, and oranges by 2020

51%

Nearly 80%

Achieve 100% sustainably sourced1 palm oil by 2020

52%

82%

Achieve 100% sustainably sourced1 cane sugar by 2020

58%

86%

Achieve sustainably sourced1 priority raw materials based on business needs by 2025

23%

12%2

Focus Area

Water

 

Goal

Drive water security to assure business continuity while positively contributing to communities.

Metrics20182019

Improve water-use efficiency by 15% in our agricultural supply chain (focused on corn and potatoes) in high water-risk areas by 20253

3%

4

Improve operational water-use efficiency by 25% in high water-risk areas by 20255

4%7

9%

Replenish 100% of the water we use in manufacturing operations in high water-risk areas by 2025

8%7

10%

Adopt the Alliance for Water Stewardship Standard as our vehicle for water advocacy in high water-risk areas by 2025

Our actions include:
• Advocating for the adoption of smart water policies and regulations
• Sharing information and best practices with water stakeholders
• Supporting public education and training for consumers and communities

At the end of 2019, we had 3 high-water-risk facilities in progress of adopting the Alliance for Water Stewardship Standard.

Deliver safe water access to 25 million people by 2025

22 million

44 million

 

Focus Area

Packaging

 

Goal

Fundamentally change the way the world interacts with our packaging to deliver on our vision of a world where plastics need never become waste.

Metrics20182019

Design 100% of packaging to be recyclable, compostable, or biodegradable by 2025

88%8

88%

Increase recycled content in our plastics packaging to 25% by 2025

3%

4%

Reduce 35% of virgin plastic content across our beverage portfolio by 2025

9

1%

Invest to increase recycling rates in key markets by 2025

Our actions include:
• Educating and encouraging consumers to recycle
• Partnering to increase and improve recycling infrastructure and building solutions for current and future material streams

Focus Area

Products

 

Goal

Reduce added sugars, sodium, and saturated fats.

Metrics20182019

Reduce Added Sugars: ≥ 67% of beverage portfolio volume will have ≤100 Calories from added sugars per 12oz. serving by 2025

44%10

47%11

Reduce Sodium: ≥ 75% of foods portfolio volume will not exceed 1.3 milligrams of sodium per Calorie by 2025

58%10

61%

Reduce Saturated Fats: ≥ 75% of foods portfolio volume will not exceed 1.1 grams of saturated fat per 100 Calories by 2025

61%10

62%

Focus Area

Climate

 

Goal

Do our part to curb climate change by reducing greenhouse gas (GHG) emissions across our value chain.

Metrics20182019

Scope 1 & 2: Reduce absolute greenhouse gas (GHG) emissions by at least 20% by 203012

7%

9%

Scope 3: Reduce absolute greenhouse gas (GHG) emissions by at least 20% by 203012

3%

5%13

Total Emissions: Reduce absolute greenhouse gas (GHG) emissions by at least 20% by 203013

3%

6%13

 

Focus Area

People

 

Goal

Human Rights: Advance respect for human rights by using PepsiCo's capabilities and scale.

Metrics20182019

Drive fair and safe working conditions throughout our value chain by addressing our most salient human rights issues

Our actions include:
• Embedding respect for human rights throughout our business and value chain
• Conducting ongoing due diligence
• Engaging with our stakeholders and driving collaborative action
• Providing effective grievance mechanisms and access to remedy

Extend the principles of our Supplier Code of Conduct to all of our franchisees and joint ventures by 2025

Our actions include:
• Establishing a formal program to engage our franchisees and joint ventures
• Engaging our franchisees and joint ventures on our human rights agenda

Goal

Diversity: Promote a diverse and inclusive workplace.

Metrics20182019

Achieve gender parity by 2025 in management roles

40%

41%

Sustain our pay equity program

Women and men are paid within 1% of each other
(base compensation)14

Goal

Prosperity: Increase the earnings potential of women to drive economic growth and increase food security.

Metrics20182019

Invest $100 million by 2025 to provide 12.5 million women with essential resources for workforce readiness and in programs that empower women in the food system and farming

$27.3 million

$38.5 million


Organizational changes (e.g. acquisitions, mergers, divestitures) are evaluated to determine if they have a statistically significant impact to sustainability metric performance.  As data becomes available, all reported years for impacted metrics are recast to consistently reflect organizational changes.

1. "Sustainably sourced" refers to meeting the independently verified environmental, social, and economic principles of PepsiCo's Sustainable Farming Program, enabling continuous improvement, best practices, and positive outcomes for farmers, communities, and the planet
2. Scope of goal was expanded in 2019 to include additional raw materials identified through a materiality assessment
3. 15% improvement target measured versus a 2015 baseline
4. To focus efforts on implementing sustainable practices, we currently intend to collect and publish agricultural water-use efficiency data every three years
5. 25% improvement target measured versus a 2015 baseline
6. Prior period results for this metric have been adjusted to reflect calculations for high water-risk sites only
7.
Prior period results for this metric have been expanded to measure against volume of water used in previous year; previously measured volume of water consumed
8. Prior period results for this metric have been adjusted to reflect enhanced calculation methodology and data availability
9. 
Target established in 2019
10.
As of 2018, Top 26 Beverage markets represent 80% of our global beverages volume and Top 23 Foods markets represent 89% of our global foods volume
11.
2019 results reflect the inclusion of the SodaStream portfolio
12. 20% improvement target measured versus a 2015 baseline
13.
Beginning in 2019, we enhanced our calculation methodology. For baseline years 2015 and 2018, data has been recalculated utilizing this enhanced methodology. Where 2019 transport data was not available, we used 2018 data as a proxy.
14. A
fter controlling for legitimate drivers of pay; analysis excludes frontline

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