PepsiCo

Lobbying
PepsiCo discloses a list of trade associations of which it is a member. These associations include numerous industry groups, and the company also collaborates with various non-profit and non-governmental organisations.

Stakeholder engagement
PepsiCo 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, its stakeholder engagement covers nature, nutrition, and social issues.

Sustainability strategy and accountability
PepsiCo 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. 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.

Ecosystem conversion and restoration
PepsiCo discloses several initiatives aimed at achieving conversion-free supply chains by committing to realize zero deforestation in its company-owned and -operated activities and across its global supply chains.

GHG emissions
PepsiCo has set time-bound targets to reduce its scope 1, 2 and 3 greenhouse gas emissions as well as report progress against them. Additionally, PepsiCo reduces its scope 1, 2 and 3 emissions and its targets are aligned with a 1.5-degree trajectory.

Resource exploitation and circularity performance
PepsiCo discloses activities to improve soil health or agrobiodiversity in its production or sourcing practices. Also, PepsiCo has a target to improve soil health in its production or sourcing practices and reports progress against it.

Solid and air pollution
PepsiCo demonstrates commitment, partakes in activities and discloses quantitative data related to plastic use reduction and transitioning towards sustainable packaging, including the proportion of recycled plastic in its packaging.

Water
PepsiCo reports how much water is withdrawn for its own operations in water-stressed areas. Furthermore, the company reports a decrease in water pollution and it has a commitment to respect the right to water.

Indigenous Peoples’ and land rights
PepsiCo is committed to respecting Indigenous Peoples’ rights. Also, the company discloses its processes to identify and recognise the rights of Indigenous Peoples when activities in its own operations may impact their rights, and describes how it obtains Indigenous Peoples’ free, prior and informed consent.

Safe, clean, healthy and sustainable environment
PepsiCo is committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Act ethically
PepsiCo 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
PepsiCo has a publicly available policy statement in which it 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, PepsiCo 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
PepsiCo has a publicly available policy statement committing it to respect human rights and the ILO core labour rights at work in its operations and supply chain. Additionally, PepsiCo 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, PepsiCo discloses its 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 i.e. employees, supply chain workers, and the local communities and engages with them. PepsiCo indicates it has a human rights grievance mechanism accessible to all workers and all external stakeholders who may be adversely impacted by the company.

Lobbying
PepsiCo has an opportunity to disclose a clear and detailed framework for assessing the alignment of its trade associations with its sustainability targets and to report (potential) misalignments.

Sustainability strategy and accountability
PepsiCo could link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Furthermore, it has an opportunity to disclose whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Ecosystem conversion and restoration
PepsiCo does not have a commitment to ensure zero conversion. While the company has a target to achieve conversion-free supply chains, the certification models specified are not DCF-aligned.
Furthermore, PepsiCo is not committed to restoring ecosystems and it does not disclose details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

Impact and dependencies assessment
PepsiCo has an opportunity to disclose assessments of its impacts on nature, including biodiversity, within its own operations and in its supply chain. It also has the opportunity to disclose its dependencies on nature within its own operations and upstream business relationships.

Invasive species
PepsiCo has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
PepsiCo has an opportunity to disclose locations within or adjacent to areas important for biodiversity, both in its own operations and its supplier locations. It could also disclose existing species populations existing in or adjacent to both its own and its suppliers’ locations, as well as the conservation status of species identified at its own sites according to national and international lists.

Resource exploitation and circularity performance
No evidence was found regarding PepsiCo’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
PepsiCo should commit to avoiding developing or marketing new chemicals or products with SVHC (substance of very high concern) properties, as well as work on reducing the production of hazardous substances and waste. It has an opportunity to report on air quality parameters of emissions of harmful air pollutants and disclose time-bound targets to reduce air pollutants across the most material parts of its value chain. The company could also report on the amount of plastic waste generated and the proportions directed from or to disposal.

Water
PepsiCo reports an increase in its water withdrawal. There is no evidence the company reports on water pollution metrics or sets targets to reduce them. PepsiCo does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Indigenous Peoples’ and land rights
PepsiCo does not disclose its processes to identify and recognize the rights of Indigenous Peoples when activities in its own operations may impact their rights or describe how it obtains Indigenous Peoples’ free, prior and informed consent.

Safe, clean, healthy and sustainable environment
PepsiCo has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
PepsiCo could describe the process for identifying its bribery and corruption risks and impacts in specific locations or activities covering its own operations. Furthermore, while it outlines its approach to lobbying and political engagement in its website, it has an opportunity to formalise this approach in a public policy document. The company has a publicly available policy statement that specifies that it allows political contributions which are highly legally regulated and restrictions and requirements differ globally. However, it could disclose a publicly available policy statement that specifies that it does not make political contributions. Moreover, PepsiCo discloses some information regarding its lobbying expenditures. However, 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
PepsiCo 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 families. 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, PepsiCo could disclose the ratio of the basic salary and remuneration of women to men.