PepsiCo

Lobbying and advocacy
The company discloses a list of trade associations of which it is a member wherever it operates.

Stakeholder engagement
The company discloses an overview of the issues raised during its stakeholder engagement activities and states the channels it uses to engage with its stakeholder groups. Furthermore, the company’s stakeholder engagement covers nature, nutrition, and social issues.

Sustainable development strategy
The company discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy, PepsiCo Positive. Furthermore, it has group-wide targets on key sustainability topics for the most material parts of its value chain and reports consistently against all its targets.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company discloses a time-bound target to reduce its scope 1 and 2 greenhouse gas (GHG) emissions by 75% by 2030. Further, it has established a specific timeline for reducing its scope 3 GHG emissions. The company shows leadership by aligning all these targets with a 1.5-degree trajectory, showing its commitment to addressing climate change, while progress updates regarding these targets and emission reductions are regularly reported.

Ecosystem conversion
The company reports it has achieved 100% RSPO certification in its palm oil supply chain. Additionally, it has committed to realizing zero deforestation in its operations and global supply chains.

Plastic use and packaging waste
The company is committed to reducing plastic use and transitioning towards sustainable packaging, and it actively engages in activities that promote these goals. Additionally, the company discloses quantitative data regarding its efforts to reduce plastic use and adopt sustainable packaging practices.

Soil health and agrobiodiversity
The company has set a target to spread the adoption of regenerative farming practices across 7 million acres by 2030, and reports on the progress against it. Also, it describes its regenerative agriculture landscape programs.

Water withdrawal
The company reports the amount of water withdrawn for its own operations in water-stressed areas.

Availability of nutritious foods
The company discloses its targets and progress in improving the nutritional quality of its products by providing data on the reduction of sugar and sodium. For example, the company states that by 2025, at least three-quarters of its global food portfolio sales volume will not exceed 1.3 milligrams of sodium per calorie.

Responsible marketing
The company has a responsible marketing policy tailored to children. It states that it takes particular care in developing advertisements and evaluating programming that carries messages to children under 13 years old. Additionally, it will only advertise to children under 13 those products that meet the International Food and Beverage Alliance (IFBA) Common Nutrition Criteria.

Workforce nutrition
The company implements a nutrition education programme for its employees. Additionally, it offers either dedicated mother’s rooms, wellness rooms, or alternate spaces for nursing mothers.

Child labour
The company prohibits any form of child labour and verifies the age of workers recruited in its own operations.

Farmer and fisher livelihoods
The company discloses that approximately half of its key ingredients were purchased directly from farmers through a grower group. In addition, it has a goal to enhance the livelihoods of 250,000 individuals within its value chain by 2030. To measure and drive these outcomes, the company has established the Livelihoods Implementation Framework for Engagement. Additionally, it demonstrates how it supports the most vulnerable farming communities through various initiatives.

Forced labour
The company prohibits the payment of any recruitment fees or related costs to secure a job. Also, it states that it does not retain workers’ personal documents or restrict workers’ freedom of movement in its operations.

Land rights
The company is committed to respecting the ownership and use of land as well as natural resources, including the legitimate tenure rights associated with them. When acquiring or leasing land, or when making other arrangements, the company ensures transparency by disclosing its processes for identifying legitimate tenure rights holders. Additionally, the company engages in negotiations with these holders to ensure fair and adequate compensation is provided.

Act ethically
The company discloses a public commitment to protect personal data. Furthermore, the company has a policy prohibiting bribery and corruption and includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. It also has a grievance mechanism for stakeholders to raise concerns and complaints regarding bribery and corruption.

Provide and promote decent work
The company commits to respecting the health and safety of workers and expects its business relationships to do so. Additionally, it discloses how it monitors the health and safety performance of its business relationships.

Furthermore, the company publicly states that workers shall not be required to work more than 48 hours in a regular work week or 60 hours including overtime and it expects its business relationships to do the same. Moreover, it discloses the proportion of its total direct operations workforce covered by collective bargaining agreements and the proportion of women in its total direct operations workforce for each employee category.

Furthermore, the company discloses the proportion of its total direct operations workforce for each employee category by race or ethnicity. Lastly, it commits to gender equality and women’s empowerment and aims to achieve 50% women in managerial roles by 2025.

Respect human rights
The company commits to respect human rights and the ILO core labour rights at work in its operations and supply chain. Additionally, the company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations and supply chain. Also, it describes its process for assessing its human rights risks and discloses what it considers to be its salient human rights issues.

Furthermore, it has a global system to take action to prevent, mitigate or remediate salient human rights issues, and this includes a description of how its global system applies to its supply chain. Moreover, it discloses the categories of stakeholders whose human rights have been or may be affected by its activities and indicates it has a human rights grievance mechanism accessible to all workers and external stakeholders who may be adversely impacted by the company.

Governance and accountability for sustainable development
The company has an opportunity to link performance criteria in senior executives’ remuneration policies to targets and objectives which cover environmental and social issues. Furthermore, it could disclose whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Lobbying and advocacy
The company has an opportunity to disclose a clear and detailed framework for assessing alignment of its trade associations with its sustainability targets. Additionally, it can report any (potential) misalignments between the lobbying activities of its trade associations and its sustainability targets.

Ecosystem conversion
While the company has a target to achieve conversion-free supply chains, the certification models specified are not DCF-aligned.

Food loss and waste
The company has an opportunity to disclose its food loss and waste (FLW) reduction targets and report progress against these targets. Additionally, the company can consider aligning its FLW reduction goal with SDG12.3, which aims for a 50% reduction by 2030.

Water withdrawal
The company has the opportunity to provide measurable proof of the reduction in water usage within its own operations. Currently, the company discloses its goal to decrease absolute water consumption and replenish more than 100% of the water used back into the local watershed by 2030. However, it could set targets for reducing water withdrawal within its own operations and report progress towards achieving this target.

Furthermore, the company reports that it engages with suppliers to discuss water-related targets and how partners can work towards achieving these goals. However, it has an opportunity to demonstrate more concrete actions and set requirements on this area.

Accessibility and affordability of nutritious foods
The company has an opportunity to disclose its commitment and commercial activities to improve the accessibility and affordability of nutritious foods.

Availability of nutritious foods
The company discloses its Pepsico Nutrition Criteria, which serve as guidelines for its product development. It states that these science-based criteria are derived from recommendations for food and nutrient intake by leading global and national nutrition authorities. Nevertheless, there is an opportunity for the company to clarify how these nutrition criteria align with or are benchmarked against government-endorsed nutrient profiling systems. Additionally, the company has the opportunity to establish a sales-based target aimed at increasing the percentage of nutritious products in accordance with these guidelines.

Responsible marketing
The company has an opportunity to provide evidence of marketing activities to promote heathier and more nutritious food options (in accordance with a government-endorsed or externally validated nutritional guidelines).

Workforce nutrition
The company offers healthy meals and snacks at work. However, it has an opportunity to provide more information on how it defines these healthy offerings and ensures accessibility for its employees. Moreover, the company has an opportunity to expand its nutrition initiatives to its supply chain workers.

Child labour
The company has an opportunity to disclose examples of remediation programmes when a case of child labour is found in its operations and to indicate how it is building the capacity of its suppliers to prevent child labour impacts. While the company prohibits its suppliers from using child labour, it could require them to have an age-verification system in place.

Farmer and fisher livelihoods
The company has an opportunity to identify living income benchmarks and assess living income gaps for some regions or commodities.

Forced labour
The company has an opportunity to turn its statements and expectations for suppliers into policy requirements. These requirements should specifically address the prohibition on retaining workers’ personal documents, restricting their freedom of movement, and paying recruitment fees. Additionally, the company can demonstrate how it is actively working with its suppliers to enhance their ability to prevent forced labor.

Land rights
The company could require its business relationships to have a process to identify legitimate tenure rights holders paying particular attention to vulnerable or marginalised tenure rights holders, and to negotiate with them to provide adequate compensation.

Living wage
The company has an opportunity to set a target for paying a living wage across its direct suppliers and describe how it determines a living wage for the regions where it sources. Also, it could disclose the percentage of workers across its own operations or suppliers that are paid a living wage.

Act ethically
The company could describe the process for identifying its bribery and corruption risks and impacts in specific locations or activities covering its own operations.

While it outlines its approach to lobbying and political engagement, it could formalise the latter in a public policy document. The company could disclose a publicly available policy statement that specifies that it does not make political contributions. Although the company discloses some information regarding its lobbying expenditures, it could disclose the expenditures in all locations where it carries out lobbying activities or specify it only does so in specific countries or regions. It could also disclose that it requires third-party lobbyists to comply with its lobbying and political engagement policy.

Provide and promote decent work
The company states that it is committed to providing fair wages and equitable benefits for its employees and their families, however, it does not disclose if fair wages are sufficient to maintain a decent standard of living for employees and his/her family. It could disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. Additionally, it could also disclose how it determines a living wage for the regions where it operates. While the company has set expectations on the wage paid by its suppliers, it has an opportunity to add a requirement for them to pay a living wage, and disclose how it supports the payment. Moreover, the company could disclose the ratio of the basic salary and remuneration of women to men.