2025AGENDA

About PepsiCo

22 billion-dollar brands that generated more than $1 billion each in estimated annual retail sales in 2016, spanning Beverages, Snacks and Nutrition

PERFORMANCE

REACH

PEOPLE SCALE

PRODUCTS ARE ENJOYED BY CONSUMERS

>1 BILLION TIMES A DAY

APPROXIMATELY $63 BILLION NET REVENUE IN 2016

MORE THAN 250,000

EMPLOYEES

PRODUCTS ARE SOLD IN >200 COUNTRIES &

TERRITORIESAROUND THE WORLD

Performance with Purpose is PepsiCo’s vision to deliver top-tier financial performance by improving the products we sell, operating responsibly to protect our planet and empowering people around the world

PepsiCo is working to create a healthier future for people and our planet.

Our Performance with Purpose 2025 Agenda is designed to deliver needed change across our company, value chain, industry and world.

PERFORMANCE WITH PURPOSE:OUR 2025 AGENDA

• REDUCE ADDED SUGARS• REDUCE SODIUM• REDUCE SATURATED FAT • INCREASE POSITIVE

NUTRITION

• STRIVE FOR POSITIVE WATER IMPACT

• REDUCE CARBON EMISSIONS

• SOURCE SUSTAINABLY

• REDUCE WASTE

• ADVANCE RESPECT FOR HUMAN RIGHTS

• PROMOTE DIVERSITY

• SPUR PROSPERITY

From the foods and beverages we produce, to the resources we use, to the lives and livelihoods we support, we believe that the success of our company is inextricably linked to the sustainability of the world around us.

We are working to protect and conserve natural resources, focused on the areas of water, climate, waste and sustainable sourcing.

We’re investing in transformational solutions across our supply chain, network of business partners and communities where we work.

PLANET: SELECT GOALS & PERFORMANCE

WATER: OUR WORK IN ACTION

ADVOCATING AND COLLABORATING FOR BETTER LOCAL GOVERNANCE OF

WATER RESOURCES AND IMPROVED WATER SECURITY

OF MANUFACTURING EMPLOYEES WITH ACCESS TO SAFE WATER, SANITATION & HYGIENE

100%

PEOPLE WITH ACCESS TO SAFE WATER

25M

OF WATER CONSUMED REPLENISHED BACK INTO WATERSHED IN HIGH-WATER-RISK AREAS

100%

IMPROVEMENT IN WATER-USE EFFICIENCY OF DIRECT AGRICULTURAL SUPPLY CHAIN IN HIGH-WATER-RISK SOURCING AREAS

15%

OF WASTEWATER MEETS STANDARDS

100%

IMPROVEMENT IN WATER-USE EFFICIENCY IN OPERATIONS (FOCUS ON HIGH-WATER-RISK AREAS)

25%

OUR 7-POINT WATER PLAN

Emissions across our value chain (Scope 3)

CLIMATE: OUR WORK IN ACTION

AGRICULTURELand use, dairy farms, soil, applied fertilizer

PACKAGINGMaterials, energy used in production

THIRD-PARTY TRANSPORTATIONMiles covered, fuel used

OTHERIncludes product coolers, home refrigerators, product use

92

%

SHRINKING OUR CARBON FOOTPRINT

8%OPERATI

ONS

Emissions directly from our operations and from

the energy they use (Scopes 1 & 2)

Onsite energy generation, fleet fuel, purchased electricity

SUSTAINABLE AGRICULTURE

Partnering with local farmers to deliver

sustainable growth and positive impact

through partnerships, education

programs and best practice sharing.

SUSTAINABLE FARMING PROGRAM

• Ag Chemicals

• Air

• Biodiversity

• Energy

• GHG’s

• Nutrients

• Soil

• Waste

• Water

ENVIRONMEN

TAL• Management

Practices

• Efficiency

• Commercial Relationships

ECONOMI

C• Health, Safety

& Wellness

• Employment Conditions

• Employment Practices

• Community

SOCIAL

FARM FOUNDATIONFARM MANAGEMENT SYSTEMS / FARM PROFILE

A HOLISTIC APPROACH: SUSTAINABLE FARMING INITIATIVE

Creating change and delivering solutions through education, training, model farms and partnerships

VERIF

YIMPROVE

IDENTIFY

ANALYZE

ASSESS

to be covered by our Sustainable

Farming Program, to advance respect for

workers’ human rights, improve growers’

livelihoods and yields, and increase

sustainable agricultural practices

7MILLION ACRES

OUR GOAL

Seek to sustainably source our

non-direct major agricultural

raw material

ingredients by

Through PepsiCo’s Sustainable Farming

Program, sustainably source our direct

agricultural raw materials by 2020

Sustainably source our cane sugar by 2020

Sustainably source our palm oil by 2020

2025

2020

SmallholdersWorker Rights

Deforestation / Peatlands

Land Rights / FPIC

RISKS IDENTIFIED IN OUR PALM OIL SUPPLY CHAIN

A FEW IMPORTANT TOOLS AND PROCESSES PEPSICO LEVERAGES

14

www.Pepsico.com/sustainability/palm-oil

MEXICO PALM: WORKING COLLABORATIVELY TO BUILD A SUSTAINABLE DOMESTIC INDUSTRY

15

Today, we’re more dedicated to Performance with Purpose than ever before and we’re harnessing the power of our global scale to drive meaningful change across countries and continents.

“

”– Indra Nooyi, Chairman and CEO