PepsiCo Supports Sustainable Food System

PepsiCo Supporting Sustainable Food Systems PepsiCo has released its first Environmental, Social and Governance (ESG) Summary since announcing the PepsiCo Positive (pep+) approach, a comprehensive strategic business transformation that places sustainability and people at the centre of its growth and value-creation activities. Jim Andrew, Head of Sustainability at PepsiCo, noted the company's commitment to building a more sustainable and resilient food system and its determined continuation of actions in this direction, stating: "Working alongside our stakeholders in the value chain, communities, NGOs and public leaders, we will take steps, drive innovations and continue to invest in our business partnerships toward a more sustainable future." PepsiCo has released its first Environmental, Social and Governance (ESG) Summary since announcing the PepsiCo Positive (pep+) approach, a comprehensive strategic business transformation that places sustainability and people at the centre of the company's growth and value-creation activities. The 2021 ESG Summary, presenting a refreshed version of PepsiCo's previous Sustainability Reports, demonstrates how the company has leveraged its brands, workforce and scale to chart a new course with the goal of taking positive action for the planet and society, while also showing progress toward industry-leading targets. Jim Andrew, Head of Sustainability at PepsiCo, underscoring the company's commitment to building a more sustainable and resilient food system and its determined continuation of actions in this direction, stated: "We are proud of the progress we made in 2021 against our new and updated pep+ targets. Our goal is to decouple our operations and environmental impact separately. In doing so, we can grow our business sustainably while reducing environmental impact. There is much more work to be done, but we cannot do this alone. That is why we will work alongside our partners in the value chain, communities, NGOs and government leaders to take steps, drive innovations and continue to invest in business partnerships toward a more sustainable future." PepsiCo's 2021 ESG Summary details the initial progress made and real-world examples across three areas in line with the PepsiCo Positive (pep+) approach: Positive Agriculture, Positive Value Chain and Positive Choices. Key highlights are summarized as follows.

Positive Agriculture

Positive Agriculture helped scale regenerative agriculture practices across more than 345,000 acres. This represents progress toward PepsiCo's goal of 28 million acres by 2030, approximately equivalent to the company's agricultural footprint. Positive Agriculture also supported the livelihoods of women farmers and rural communities through initiatives including a USD 20 million USAID partnership to develop women-led initiatives and the Inter-American Development Bank's (IADB) USD 2 million Next Generation Agriculture Fund. These demonstrate the impact of gender-smart solutions in PepsiCo's agricultural supply chains in the Dominican Republic, Ecuador and Guatemala. The relevant programmes serve as initial action toward a new pep+ target to improve the livelihoods of more than 250,000 people, including economically empowered women, in PepsiCo's agricultural supply chain and related communities.

Positive Value Chain

Scope 1 and 2 emissions were reduced by 25 percent compared to 2015, and more than 70 percent of global electricity needs in direct operations are now met from renewable sources. In 2021, Scope 3 emissions, which represent 93 percent of the company's emissions, showed a 5 percent increase compared to 2015, largely driven by unprecedented commercial growth. Positive Value Chain increased operational water use efficiency in high water-risk regions by 18 percent compared to 2015, against a 25 percent target by 2025. In 2021, 34 percent of water used in operations was returned to local watersheds, representing more than 6.1 billion litres. Additionally, PepsiCo has enabled more than 68 million people worldwide to access safe water since 2006 and has achieved more than half of its goal to "provide safe water to 100 million people by 2030." Following the Positive Value Chain initiative, representation of Black managers in the US increased to 8.3 percent and representation of Hispanic managers to 9.5 percent. The target for each has been set at 10 percent by 2025. Furthermore, the percentage of women in management roles at PepsiCo globally reached 43 percent, within the framework of the goal to reach 50 percent by 2025.

Positive Choices

PepsiCo reached its 75 percent saturated fat reduction target in its food portfolio, not exceeding 1.1 grams of saturated fat per 100 calories, four years ahead of schedule in 2021. Additionally, 53 percent of PepsiCo's beverage portfolio volume will now contain less than 100 added calories per 340 ml serving and accordingly, 66 percent of food portfolio volume will not exceed 1.3 milligrams of sodium per calorie. The 2021 ESG Summary in digital format, designed to provide a comprehensive and in-depth look at PepsiCo's approach and progress across approximately 50 sustainability areas, fully addresses the company's performance on all ESG topics from A to Z. [1] Where 2021 data is not available, estimated 2021 data has been used. Hangzhou Haomusi Food Co., Ltd. (Be & Cheery) has been excluded and certain Scope 3 emissions for other acquisitions where data is not available are reflected in the results. [2] Be & Cheery has been excluded from the results. [3] SodaStream and Be & Cheery have been excluded from the results. [4] As of 2021, based on our largest 23 food markets, which represent 86 percent of global food volume. [5] Be & Cheery has been excluded from the results. [6] Our global progress is based on our largest 26 beverage markets, which represent 79 percent of global beverage volume as of 2021. [7] Our global progress is based on our largest 23 markets, which represent 86 percent of global food volume as of 2021. Be & Cheery has been excluded from the results.