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  • Overall approach
    11/16
    • Overarching commitment on deforestation
      4/6
      Deforestation commitment
      Zero-deforestation
      4/6
      PepsiCo is committed to doing business the right way and to realizing zero deforestation in our company- owned and -operated activities and global supply chains from direct supplier to source by 2020."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: Consumer Goods Forum; Tropical Forest Alliance 2020 partner; World Business Council for Sustainable Development Forest Solutions Group; UN Global Compact
      "We are a member of numerous industry and trade groups, and our partners with various nonprofit organizations and NGOs. We list many of those key memberships and partnerships on our website. Our group memberships include the • World Business Council for Sustainable Development (WBCSD) " [...] Company is a signatory to the Consumer Goods Forum [...] Company is a signatory to the UN Global Compact [...]
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "The world’s global food system is under severe pressure. Agriculture accounts for approximately 70% of freshwater consumption worldwide and one quarter of greenhouse gas (GHG) emissions. Agriculture also contributes to approximately 75% of deforestation and if trends continue, could be the largest driver of biodiversity loss by 2050. Globally, the demand for agricultural products is expected to grow by as much as 50% over the next 30 years."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputational
      PepsiCo recognises that deforestation poses a risk in terms of "brand damage", stating that "PepsiCo has witnessed a growing interest among Socially Responsible Investors (SRIs), non-governmental agencies, and other key stakeholders in our practices associated with forest impact. PepsiCo has closely monitored consumer and customer campaigns and their general interest in our response to deforestation risks. ii. Scale of impact: Increased stakeholder concerns have not yet represented substantive detrimental impacts on our business. However, PepsiCo’s aim is to demonstrate our responsibility toward forest-related stewardship and transparent communication regarding our efforts to mitigate concerns as changes in consumer preference, due to a negative reaction to PepsiCo’s reputation relative to the environment, could adversely affect PepsiCo’s business."
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Palm oil; Soy; Pulp & Paper

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: At least annually
      "Public Policy and Sustainability Committee Charter - The Public Policy and Sustainability Committee (the “Committee”) of the Board of Directors (the “Board”) of PepsiCo, Inc. (the “Corporation”) shall be comprised of directors [...] The purpose of the Committee is to assist the Board in its oversight of the Corporation’s policies, programs and related risks that concern key sustainability and public policy matters, including public issues of significance to the Corporation and its stakeholders that may affect the Corporation’s business, strategy, operations, performance or reputation. [....] In addition to the purposes set forth above, the primary responsibilities of the Committee shall be to: 1. Review and discuss the Corporation’s sustainability initiatives and engagement. 2. Review and monitor key public policy trends, issues, regulatory matters and other concerns that may affect the Corporation’s business, strategies, operations, performance or reputation, and its engagement in the public policy process. [...]Annually assess and report to the Board on the performance of the Committee. 6. Review and reassess the adequacy of this Charter on an annual basis, update it as appropriate and submit it for the approval of the Board when updated."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      3/3
      LUC emissions target
      Yes
      3/3
      "Our current goal to reduce absolute GHG emissions across our value chain by at least 20 percent by 2030 is in line with a 2°C pathway [...] Our efforts to reduce value chain emissions focus on our three largest emissions drivers: [including] Agriculture [...]Our agriculture climate strategy goes hand-in-hand with our sustainable agriculture goals, as practices that lead to better yields, improved soil health, lower deforestation and productivity for farmers also lead to GHG emission reductions. We are therefore focusing on sustainably sourcing major commodities like palm oil and cane sugar, as well as partnering and collaborating with suppliers, peers, and other stakeholders to implement and influence better practices on-farm."
    • Reporting on emissions from land-use change
      0/3
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
  • Commodity score
    43/84
    • Palm oil
      67/84
      • Commitment Strength
        26/28
        • Commitment to protect priority forests
          10/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following:1. No Deforestation and No Development on Peat: No conversion of High Carbon Stock (HCS) forests as defined by The HCS Approach. No conversion of High Conservation Value (HCV) Areas as defined by the HCV ResourceNetwork. No new development on peat, defined as soil containing greater than 65% organicmatter, regardless of depth."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following:1. No Deforestation and No Development on Peat: No conversion of High Carbon Stock (HCS) forests as defined by The HCS Approach. No conversion of High Conservation Value (HCV) Areas as defined by the HCV ResourceNetwork. No new development on peat, defined as soil containing greater than 65% organicmatter, regardless of depth."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following:1. No Deforestation and No Development on Peat: No conversion of High Carbon Stock (HCS) forests as defined by The HCS Approach. No conversion of High Conservation Value (HCV) Areas as defined by the HCV ResourceNetwork. No new development on peat, defined as soil containing greater than 65% organicmatter, regardless of depth."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: Current
            Target date is current - see 3.2
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following:1. No Deforestation and No Development on Peat: No conversion of High Carbon Stock (HCS) forests as defined by The HCS Approach. No conversion of High Conservation Value (HCV) Areas as defined by the HCV ResourceNetwork. No new development on peat, defined as soil containing greater than 65% organicmatter, regardless of depth."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following:1. No Deforestation and No Development on Peat: No conversion of High Carbon Stock (HCS) forests as defined by The HCS Approach. No conversion of High Conservation Value (HCV) Areas as defined by the HCV ResourceNetwork. No new development on peat, defined as soil containing greater than 65% organicmatter, regardless of depth."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following:1. No Deforestation and No Development on Peat: No conversion of High Carbon Stock (HCS) forests as defined by The HCS Approach. No conversion of High Conservation Value (HCV) Areas as defined by the HCV ResourceNetwork. No new development on peat, defined as soil containing greater than 65% organicmatter, regardless of depth."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: Current
            Target date is current - see 3.2
        • Commitment to a traceable supply chain
          8/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil" [...] "We encouraged our direct suppliers to be RSPO members; since 2017, 100% of our direct suppliers have been RSPO members. We are also aiming for 100% traceability to the mill; in 2018, 97% of our supply met this goal. Since launching our Traceability to Plantation Protocol, 26 suppliers representing 32% of our volume reported traceability to plantation in 2018; our goal is to achieve traceability to the farm/plantation by the end of 2020"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil" [...] "We encouraged our direct suppliers to be RSPO members; since 2017, 100% of our direct suppliers have been RSPO members. We are also aiming for 100% traceability to the mill; in 2018, 97% of our supply met this goal. Since launching our Traceability to Plantation Protocol, 26 suppliers representing 32% of our volume reported traceability to plantation in 2018; our goal is to achieve traceability to the farm/plantation by the end of 2020"
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil" [...] "We encouraged our direct suppliers to be RSPO members; since 2017, 100% of our direct suppliers have been RSPO members. We are also aiming for 100% traceability to the mill; in 2018, 97% of our supply met this goal. Since launching our Traceability to Plantation Protocol, 26 suppliers representing 32% of our volume reported traceability to plantation in 2018; our goal is to achieve traceability to the farm/plantation by the end of 2020"
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil" [...] "We encouraged our direct suppliers to be RSPO members; since 2017, 100% of our direct suppliers have been RSPO members. We are also aiming for 100% traceability to the mill; in 2018, 97% of our supply met this goal. Since launching our Traceability to Plantation Protocol, 26 suppliers representing 32% of our volume reported traceability to plantation in 2018; our goal is to achieve traceability to the farm/plantation by the end of 2020"
      • Social Considerations
        14/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; Discrimination; Forced Labour; Child Labour; Freedom of association
          "Pepsi Co. commit their suppliers to protect their workers' rights to have freedom of association, and to be free from discrimination, forced labour, and child labour."
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Technical assistance/support
          "We support the inclusion of smallholder farmers into sustainable palm oil supply chains."
        • Gender equality in the supply chain
          Equality in the supply chain
          2/4
          Gender equality in the supply chain
          Equality in the supply chain
          2/4
          "Supporting equality, helping end hunger: We're partnering with Care to help support 5 million female farmers and their families through an $18 million investment in She Feeds the World." " At PepsiCo, we’ve seen the role women play in supporting a more sustainable food system and are committed to ensuring they receive the resources they need to become productive members of our supply chain. And so, we recently entered into a new five-year, $20 million partnership with the U.S. Agency for International Development to support women-owned small- and medium-enterprises and our women-led suppliers to improve the resiliency of rural farming communities in Asia, the Middle East, and Latin America."
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          "We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments. These include:  Our Sustainable Sourcing Program (SSP), a formal risk assessment, third party audit, and mitigation process for first-tier suppliers who have gone through our Business Continuity Planning." The Supplier Code of Conduct requires suppliers to "Carry out operations with care for the environment and comply with all applicable environmental laws and regulations" and also requires compliance with PepsiCo's palm oil commitments and Sustainable Agriculture Policy.
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          What is the status of those FPIC processes?: Current
          "Agriculturally based raw materials are supplied to PepsiCo by our suppliers, both directly and indirectly, from farms and processors globally. The countries where these raw materials are sourced from represent a wide range of land tenure systems, both formal and informal. In recognition of these different country level approaches PepsiCo will: When PepsiCo is acquiring land, engage in fair (based on effective grievance mechanisms and processes) and legal negotiations on land transfers and acquisitions and utilize the IFC Performance Standards to implement the Free, Prior, and Informed Consent (FPIC) principles for agricultural development, in developing countries.  Through appropriate mechanisms in the PepsiCo Responsible Sourcing Guidelines, such as the PepsiCo Supplier Code of Conduct, require our suppliers meet IFC Performance Standards, including FPIC, in their land acquisitions (including leasing and utilization)"
      • Reporting and Implementation
        27/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            In their 2019 ACOP, PepsiCo report that they used 485,756 tons of palm oil, of which 100% was RSPO-certified.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            In their 2019 ACOP, PepsiCo report that they used 485,756 tons of palm oil, of which 100% was RSPO-certified.
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil" [...] "We encouraged our direct suppliers to be RSPO members; since 2017, 100% of our direct suppliers have been RSPO members. We are also aiming for 100% traceability to the mill; in 2018, 97% of our supply met this goal. Since launching our Traceability to Plantation Protocol, 26 suppliers representing 32% of our volume reported traceability to plantation in 2018; our goal is to achieve traceability to the farm/plantation by the end of 2020"
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 100%

            Which processes or groups does the company use for third party verification?: RSPO
            In their 2019 ACOP, PepsiCo report that they used 485,756 tons of palm oil, of which 100% was RSPO-certified.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 100%

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            Which processes or groups does the company use for third party verification?: RSPO
            In their 2019 ACOP, PepsiCo report that they used 485,756 tons of palm oil, of which 100% was RSPO-certified.
          • Commitment to a traceable supply chain
            Yes: internal
            0.7/1.3
            Commitment to a traceable supply chain
            Yes: internal
            0.7/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: Internal - Palm Oil Traceability Protocol
            Pepsi goes into detail of it's method for traceability verification within the Palm Oil Traceability Protocol - "PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil" [...] "We encouraged our direct suppliers to be RSPO members; since 2017, 100% of our direct suppliers have been RSPO members. We are also aiming for 100% traceability to the mill; in 2018, 97% of our supply met this goal. Since launching our Traceability to Plantation Protocol, 26 suppliers representing 32% of our volume reported traceability to plantation in 2018; our goal is to achieve traceability to the farm/plantation by the end of 2020"
        • Deforestation cut off date
          Yes
          2/2
          Deforestation cut off date
          Yes
          2/2
          Cut-off date: 2015
          "In addition to compliance with all applicable legal requirements of each country in which we operateand from which we source palm oil, and building upon the Principles & Criteria of the Roundtable onSustainable Palm Oil (RSPO), PepsiCo requires the following: [...] no forest or peatlandconversion following a conversion cutoff date of December 31, 2015."
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Working Together to Preserve the Leuser Ecosystem

          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise
          "We will continue to be active members of the Consumer Goods Forum, palm oil working group, AIM-Progress and the Tropical Forest Alliance"
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: not specified
          "PepsiCo assesses deforestation risks in our palm oil supply chain on an ongoing basis using internal methods and external support from Proforest and One Peterson, an independent third party. The combination of internal and external input into our risk assessment process helps see that necessary expertise is available to have thorough coverage of stakeholder considerations and the overall commodity landscape. The risk assessment procedure is chosen to help identify the sustainability risks in the commodity and where they exist in our supply chain. We conduct risk assessments as a tool to identify regions that have the highest likelihood of noncompliance and prioritize our efforts to raise standards accordingly."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "PepsiCo expects its suppliers to conduct business responsibly, with integrity, honesty, and transparency, and to adhere to the following principles: 1. Maintain awareness and comply with all applicable laws and regulations of the countries of their operation [...] With prior notice, PepsiCo may conduct reasonable audits to verify Supplier’s compliance with the Supplier Code. In addition, as further outlined in the ABAC Policy, certain suppliers are required to complete our Third Party Due Diligence process from time to time."
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: website, email

          Details of the mechanism: Social; Environmental
          " We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments. [...] To register a grievance, please email SustAg@PepsiCo.com. Grievances raised directly with PepsiCo employees, and through Speak Up! will also be entered into the process. Our intent is that the Grievance Mechanism will be run on the principles of transparency, consistency, and neutrality"
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the certified volume?: 485,756 tons

          What is the non-certified/non-compliant volume?: 0 tons

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%

          Which certification schemes are used?: RSPO
          In their 2019 ACOP, PepsiCo report that they used 485,756 tons of palm oil, of which 100% was RSPO-certified.
        • Downstream: Publishing supplier lists
          Yes report direct suppliers; Yes report indirect suppliers
          4/4
          Downstream: Publishing supplier lists
          Yes report direct suppliers; Yes report indirect suppliers
          4/4
          What is the volume of the forest risk commodity that the company sourced in the previous year from each national or sub-national location?: 0 Not specified

          For what percent of suppliers' production areas are point locations disclosed?: 0 Not specified

          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes

          For what percent of smallholder suppliers is location disclosed?: 0 Not specified

          What type of location data (boundary, point, etc.) is provided for smallholder farms?: 0 Not specified

          For what percent is no location data disclosed?: 0 Not specified

          From what country(ies) does the company source material?: Malaysia, Indonesia, India, Colombia, Mexico, Ecuador, Guatemala, Panama, Brazil, Peru, Philippines, Honduras, Thailand, Costa Rica, Nicaragua

          For what percent are boundaries disclosed?: 0 Not specified

          From what sub-national jurisdiction(s) does the company source material?: 0 Not specified
          Pepsico publishes a list of its direct suppliers, and their supplying mills. "This supplier list is current as of June 2020. The list reflects our supply chain-mapping effort and is subject to change as supply chain flows evolve on a regular basis. We published a complete list of our direct palm oil suppliers and mills for the first time in 2018. These disclosures build on our practice since 2015 to disclose our top palm oil suppliers, currently Cargill, Oleofinos and Wilmar. Seventy percent of our palm oil globally is currently supplied by the following nine companies: AAK AK, Bunge Limited, Cargill Incorporated, COFCO Corporation, IFFCO International, Industralizadora Oleofinos SA De CV, United Oils Processing & Packaging, Willowton Group and Wilmar International Limited." "The following palm oil mill list is based on information that has been self‐reported to us by suppliers for the calendar year 2019. While we have made considerable effort to validate the data including through independent verification (see our Palm Oil Disclosure for more information) we cannot guarantee its full accuracy or completeness."
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Details of monitoring: Using internal monitoring and verification systems; Using third party verification

          How frequently is compliance assessed?: not specified
          "Implementation of our supplier scorecard to track and encourage our suppliers’ progress toward increasing sustainable palm has seen our suppliers improve their overall performance by 39% against the 2017 baseline. The scorecard mechanism supports PepsiCo’s efforts to build suppliers’ capability to deliver NDPE (no deforestation, no development on peatlands, and no exploitation of indigenous peoples and local communities) compliant palm oil, and to address non-compliances found in our supply chain [...] Internally, our Sustainable Sourcing Program (SSP) assesses risk and monitors supplier compliance with our Supplier Code of Conduct on an ongoing basis through third-party auditing of our most business-critical direct suppliers, contract manufacturing and co-packing locations across 68 countries [...] This work involves a risk assessment of direct suppliers and their supply base (leveraging the mill traceability data) to identify, assess, prioritize and address top compliance risks under PepsiCo’s policies, including recommending priority mills and supply bases for verification assessments and wider engagement. The process entails site-based verification assessments and eventual engagement with site-assessed suppliers to monitor implementation of continuous improvement plans."
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What criteria does the policy specify for blacklisting or exclusion?: non compliance with various codes including palm oil policy
          "An internal PepsiCo resource will oversee the process, and a grievance working group including representatives from our procurement, human rights, sustainable agriculture and public policy teams will advise regarding any substantive decisions during the process, including actions to be taken if suppliers refuse to engage with the issues raised in the complaint or do not complete the agreed steps. A Grievance Committee, comprising senior management from the departments represented at the working group level will meet quarterly to review individual cases and the operation of the grievance mechanism, including the implementation of our policies. We intend to engage regularly with suppliers, impacted communities, civil society and others on individual cases raised by users of the mechanism and on the grievance process itself."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      46/84
      • Commitment Strength
        14/28
        • Commitment to protect priority forests
          8/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: FSC; PEFC
            "PepsiCo seeks to purchase only responsibly sourced wood fiber products and will not knowingly accept from its supply chain paper-based packaging that may contain wood fiber harvested illegally or sourced from protected forest areas [...] PepsiCo recognizes the forestry standards below as credible within their scope and requires our suppliers to commit to utilizing the appropriate standard: CERFLOR, CSA, FSC, PEFC and SFI."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "PepsiCo seeks to purchase only responsibly sourced wood fiber products and will not knowingly accept from its supply chain paper-based packaging that may contain wood fiber harvested illegally or sourced from protected forest areas [...] PepsiCo recognizes the forestry standards below as credible within their scope and requires our suppliers to commit to utilizing the appropriate standard: CERFLOR, CSA, FSC, PEFC and SFI."
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          6/8
          • Commitment details
            Yes
            4/4
            Commitment to reduce use of virgin wood fibre
            Yes
            4/4
            Type of commitment: Recycled content; Reduction of material inputs
            "Our Aspirations Regarding Sustainable Packaging: [...] Increase the use of recycled content or materials from renewable sources; Optimize packaging design to use the fewest materials necessary"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Our Aspirations Regarding Sustainable Packaging: [...] Increase the use of recycled content or materials from renewable sources; Optimize packaging design to use the fewest materials necessary"
          • Target date
            No target date
            0/1.3
            Target date
            No target date
            0/1.3
            "Our Aspirations Regarding Sustainable Packaging: [...] Increase the use of recycled content or materials from renewable sources; Optimize packaging design to use the fewest materials necessary"
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        14/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "Pepsi Co. commit their suppliers to protect their workers' rights to have freedom of association, and to be free from discrimination, forced labour, and child labour."
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Technical assistance/support

          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 0 Not specified
          In their Forest Stewardship Policy, PepsiCo state that "PepsiCo will, and will source from suppliers that, strive to: [...] Ensure that this policy is implemented in such a way that supports the inclusion of smallholders in their supply chains."
        • Gender equality in the supply chain
          Equality in the supply chain
          2/4
          Gender equality in the supply chain
          Equality in the supply chain
          2/4
          "Supporting equality, helping end hunger: We're partnering with Care to help support 5 million female farmers and their families through an $18 million investment in She Feeds the World." " At PepsiCo, we’ve seen the role women play in supporting a more sustainable food system and are committed to ensuring they receive the resources they need to become productive members of our supply chain. And so, we recently entered into a new five-year, $20 million partnership with the U.S. Agency for International Development to support women-owned small- and medium-enterprises and our women-led suppliers to improve the resiliency of rural farming communities in Asia, the Middle East, and Latin America."
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          "We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments. These include:  Our Sustainable Sourcing Program (SSP), a formal risk assessment, third party audit, and mitigation process for first-tier suppliers who have gone through our Business Continuity Planning." The Supplier Code of Conduct requires suppliers to "Carry out operations with care for the environment and comply with all applicable environmental laws and regulations" and also requires compliance with PepsiCo's palm oil commitments and Sustainable Agriculture Policy.
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "Agriculturally based raw materials are supplied to PepsiCo by our suppliers, both directly and indirectly, from farms and processors globally. The countries where these raw materials are sourced from represent a wide range of land tenure systems, both formal and informal. In recognition of these different country level approaches PepsiCo will: When PepsiCo is acquiring land, engage in fair (based on effective grievance mechanisms and processes) and legal negotiations on land transfers and acquisitions and utilize the IFC Performance Standards to implement the Free, Prior, and Informed Consent (FPIC) principles for agricultural development, in developing countries.  Through appropriate mechanisms in the PepsiCo Responsible Sourcing Guidelines, such as the PepsiCo Supplier Code of Conduct, require our suppliers meet IFC Performance Standards, including FPIC, in their land acquisitions (including leasing and utilization)"
      • Reporting and Implementation
        18/38
        • Reporting against commitments
          2/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            "In 2017, PepsiCo worked with a Tier-1 supplier to develop new contract language for our sourced materials to be FSC- and SFI-certified, further promoting compliance with our policy criteria. As we renew expiring contracts starting in 2018, PepsiCo has been utilizing this language negotiating by region to determine our suppliers’ capabilities to source certified materials. We have identified Russia, China and parts of Southeast Asia as our primary focus to mitigate risks, and have seen our percent certified material increase in all of these areas as we renew contracts: from 5% to 80% in Russia, 19% to 44% in China, 0% to 100% in Thailand, as well as 10% to 100% in Brazil."
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          1/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which processes or groups does the company use for third party verification?: FSC Certification

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC Certification
            "In 2017, PepsiCo worked with a Tier-1 supplier to develop new contract language for our sourced materials to be FSC- and SFI-certified, further promoting compliance with our policy criteria. As we renew expiring contracts starting in 2018, PepsiCo has been utilizing this language negotiating by region to determine our suppliers’ capabilities to source certified materials. We have identified Russia, China and parts of Southeast Asia as our primary focus to mitigate risks, and have seen our percent certified material increase in all of these areas as we renew contracts: from 5% to 80% in Russia, 19% to 44% in China, 0% to 100% in Thailand, as well as 10% to 100% in Brazil."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: The European Organization for Packaging and the Environment

          What is the nature of that participation?: Attending & contributing to meetings
          "PepsiCo is also an active member of The European Organization for Packaging and the Environment, known as EUROPEN, serving on the Executive Committee and Scientific & Regulatory Affairs Committee, to drive forward our Global Sustainable Packaging Policy."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%

          How frequently are assessments conducted?: Annually
          "Does your organization undertake a forests-related risk assessment? Yes, forests-related risks are assessed [...] PepsiCo assesses deforestation risks in our paper-based packaging supply chain on an annual basis using internal methods and external support from Proforest, with results being reported to the senior vice president, chief supply officer."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "PepsiCo expects its suppliers to conduct business responsibly, with integrity, honesty, and transparency, and to adhere to the following principles: 1. Maintain awareness and comply with all applicable laws and regulations of the countries of their operation [...] With prior notice, PepsiCo may conduct reasonable audits to verify Supplier’s compliance with the Supplier Code. In addition, as further outlined in the ABAC Policy, certain suppliers are required to complete our Third Party Due Diligence process from time to time."
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          Details of the mechanism: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: website, email
          " We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments. [...] To register a grievance, please email SustAg@PepsiCo.com. Grievances raised directly with PepsiCo employees, and through Speak Up! will also be entered into the process. Our intent is that the Grievance Mechanism will be run on the principles of transparency, consistency, and neutrality"
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the certified volume?: 83%

          What is the non-certified/non-compliant volume?: 1,294,788.84 tons

          Which certification schemes are used?: FSC; PEFC
          In their 2019 CDP Forests report, PepsiCo reports that it used 1294788840 kg (or 1,294,788.84 tons) of paper-based packaging, of which 83% was certified/compliant/
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          How frequently is compliance assessed?: Not specified

          Details of monitoring: Using internal monitoring and verification systems; Using third party verification
          "We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments [including paper commitment]. These include: Our Sustainable Sourcing Program (SSP), a formal risk assessment, third party audit, and mitigation process for first-tier suppliers who have gone through our Business Continuity Planning"
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          What criteria does the policy specify for blacklisting or exclusion?: non compliance with various codes including packaging policy

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "An internal PepsiCo resource will oversee the process, and a grievance working group including representatives from our procurement, human rights, sustainable agriculture and public policy teams will advise regarding any substantive decisions during the process, including actions to be taken if suppliers refuse to engage with the issues raised in the complaint or do not complete the agreed steps. A Grievance Committee, comprising senior management from the departments represented at the working group level will meet quarterly to review individual cases and the operation of the grievance mechanism, including the implementation of our policies. We intend to engage regularly with suppliers, impacted communities, civil society and others on individual cases raised by users of the mechanism and on the grievance process itself."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      16/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
            Commitment to protect priority forests
            No commitment
            0/10.7
            (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: No
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        10/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "Pepsi Co. commit their suppliers to protect their workers' rights to have freedom of association, and to be free from discrimination, forced labour, and child labour."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Equality in the supply chain
          2/4
          Gender equality in the supply chain
          Equality in the supply chain
          2/4
          "Supporting equality, helping end hunger: We're partnering with Care to help support 5 million female farmers and their families through an $18 million investment in She Feeds the World." " At PepsiCo, we’ve seen the role women play in supporting a more sustainable food system and are committed to ensuring they receive the resources they need to become productive members of our supply chain. And so, we recently entered into a new five-year, $20 million partnership with the U.S. Agency for International Development to support women-owned small- and medium-enterprises and our women-led suppliers to improve the resiliency of rural farming communities in Asia, the Middle East, and Latin America."
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          "We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments. These include:  Our Sustainable Sourcing Program (SSP), a formal risk assessment, third party audit, and mitigation process for first-tier suppliers who have gone through our Business Continuity Planning." The Supplier Code of Conduct requires suppliers to "Carry out operations with care for the environment and comply with all applicable environmental laws and regulations" and also requires compliance with PepsiCo's palm oil commitments and Sustainable Agriculture Policy.
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "Agriculturally based raw materials are supplied to PepsiCo by our suppliers, both directly and indirectly, from farms and processors globally. The countries where these raw materials are sourced from represent a wide range of land tenure systems, both formal and informal. In recognition of these different country level approaches PepsiCo will: When PepsiCo is acquiring land, engage in fair (based on effective grievance mechanisms and processes) and legal negotiations on land transfers and acquisitions and utilize the IFC Performance Standards to implement the Free, Prior, and Informed Consent (FPIC) principles for agricultural development, in developing countries.  Through appropriate mechanisms in the PepsiCo Responsible Sourcing Guidelines, such as the PepsiCo Supplier Code of Conduct, require our suppliers meet IFC Performance Standards, including FPIC, in their land acquisitions (including leasing and utilization)"
      • Reporting and Implementation
        6/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "PepsiCo expects its suppliers to conduct business responsibly, with integrity, honesty, and transparency, and to adhere to the following principles: 1. Maintain awareness and comply with all applicable laws and regulations of the countries of their operation [...] With prior notice, PepsiCo may conduct reasonable audits to verify Supplier’s compliance with the Supplier Code. In addition, as further outlined in the ABAC Policy, certain suppliers are required to complete our Third Party Due Diligence process from time to time."
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          Details of the mechanism: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: website, email
          " We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments. [...] To register a grievance, please email SustAg@PepsiCo.com. Grievances raised directly with PepsiCo employees, and through Speak Up! will also be entered into the process. Our intent is that the Grievance Mechanism will be run on the principles of transparency, consistency, and neutrality"
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
          Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          "We have a number of programs to proactively assess, find, and remediate non-compliances against our SCoC, policies and commitments."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    13/28
    Avg. score
  • Reporting and Implementation
    17/38
    Avg. score
  • Social considerations
    13/18
    Avg. score

Profile

PepsiCo is a global food and beverage company. The company’s products are being sold in more than 200 countries, through famous brands such as Pepsi, Lays, Tropicana, Quaker, Walkers, Starbucks, and Doritos. Products include beverages, snacks, cereals, and biscuits. PepsiCo Inc. is selected as a powerbroker for palm oil, soy and paper packaging.

Sector
Industry sector 
Packaged food
Segments
Manufacturer
HQ
HQ 
United States
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

7up, Baked, Doritos, French Fries, Max, Monster Munch, Naked, Off The Eaten Path, Pepsi, Pepsi Max, Pipers, Quaker, Quaker Oats, Quavers, Scotts, Sensations, Smiths, Snack A Jacks, Sunbites, Tropicana, Walkers, Wotsits, Lay's, Starbucks, Cheetos, Fritos, Sabra, Munchies, Munchos

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.