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  • Overall approach
    7/10
    • Overarching commitment on deforestation
      2/4
      Overall commitment
      Zero net deforestation or, for soy, palm oil, leather and beef companies only, no deforestation of HCV and HCS forests
      2/4
      "PepsiCo is focused on realizing zero net deforestation in our company-owned and operated activities and global supply chains from direct supplier to source. Our most significant influence on the protection of forests is through our sourcing of paper- and wood-based products and raw agricultural materials, particularly palm oil. Other relevant raw materials that we source include soy, cocoa, and dairy."
      Open source document
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      "PepsiCo adopted the Consumer Goods Forum (CGF) Deforestation Resolution, [..] membership in the Tropical Forest Alliance 2020" "Among the multistakeholder principles and initiatives we have endorsed, some include: [...] UN Global Compact
      Open source document
      Open source document
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "PepsiCo will source from suppliers that adhere to the following principles No further development on High Carbon Stock (HCS) Forests.1 • No further development on High Conservation Value (HCV) Areas"
      Open source document
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      "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 transparently communicate our efforts to tackle deforestation, so that a negative reaction to PepsiCo’s reputation relative to the environment, which could adversely affect PepsiCo’s business, does not arise."
      Open source document
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: At least annually

      Which commodities does it apply to?: Palm oil; Soy; Pulp & paper
      "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, diversity and inclusion 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: Review and discuss the Corporation’s sustainability initiatives and engagement."
      Open source document
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      1/1
      Emissions reporting
      Yes
      1/1
      What is the total volume of GHG emissions arising from land use change?: 485,501 metric tons

      Which method is used to calculate the GHG emissions arising from land use change?: " estimates are based on a study we conducted to evaluate land use change impacts within our sourcing locations for certified commodity as compared to non-certified commodity. This study helped us develop emission factors for RSPO certified palm oil to be included within our corporate greenhouse gas inventory. We then determined the change in our emissions from palm oil between 2015 and 2020."
      "Palm oil Estimate GHG emissions and removals from land use and land use change Yes, willing to share details with requesting CDP SC members Please explain Estimate: 485,501 metric tons CO2e These estimates are based on a study we conducted to evaluate land use change impacts within our sourcing locations for certified commodity as compared to non-certified commodity. This study helped us develop emission factors for RSPO certified palm oil to be included within our corporate greenhouse gas inventory. We then determined the change in our emissions from palm oil between 2015 and 2020."
      Open source document
    • Disclosure of conservation activity
      Conservation disclosure
      Yes
      0/0
      How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 70,000ha
      "PepsiCo has supported the protection of over 70,000 hectares under the identification of High Conservation Values in the Southeast of Mexico and the creation of the HCS-HCV probability maps to facilitate the conservation of forests and high conservation values in the smallholder’s context. "
      Open source document
    • Disclosure of reforestation activity
      Reforestation disclosure
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 300ha
      "PepsiCo has invested in partnership with PT Mopoli Raya, Forum Konservasi Leuser (FKL), and IDH (The Sustainable Trade Initiative) in the restoration of 300 hectares of forest and supporting at least 500 smallholders to become more productive and sustainable. " In Aceh Tamiang
      Open source document
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      Yes
      0/0
      Is this target aligned with/verified by SBTi?: Yes

      What is the target date for the company to achieve their climate target?: 2040

      Type of climate target: Net-zero emissions
      " In April 2020, we signed the Business Ambition for 1.5C pledge committing to raise our ambition towards a long-term net zero goal. In late 2020 the SBTi approved our new 1.5C aligned goal which we subsequently announced in early 2021. Our new goal more than doubles our previous one within the same timeframe. Our new goal is to reduce our Scope 1 & 2 emissions by 75% and our Scope 3 emissions by 40% by 2030 against a 2015 baseline. We also have a goal to achieve net zero emissions by 2040, a decade earlier than called for in the Paris Agreement."
      Open source document
  • Commodity score
    51/90
    • Palm oil
      68/90
      • Commitment Strength
        15/17
        • Commitment to protect priority forests
          8/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat

            Which certification schemes are used?: RSPO

            When was this commitment set?: 2020
            "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 Resource Network. • No new development on peat, defined as soil containing greater than 65% organic matter, regardless of depth. • Application of best management practices for existing plantations on peat, as described in the RSPO Manual on Best Management Practices for Management and Rehabilitation of Natural Vegetation Associated with Oil Palm Cultivation on Peat. • No burning as defined by RSPO. • In addition to compliance with all provisions listed above, no forest or peatland conversion following a conversion cutoff date of December 31, 2015"[...]"As part of our goal to sustainably source palm oil, we set a target of sourcing 100% RSPO physically certified palm oil by the end of 2020 and aim to continue to source 100% RSPO certified sustainable palm oil, while helping to lift production standards across the palm oil sector"
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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 Resource Network. • No new development on peat, defined as soil containing greater than 65% organic matter, regardless of depth. • Application of best management practices for existing plantations on peat, as described in the RSPO Manual on Best Management Practices for Management and Rehabilitation of Natural Vegetation Associated with Oil Palm Cultivation on Peat. • No burning as defined by RSPO. • In addition to compliance with all provisions listed above, no forest or peatland conversion following a conversion cutoff date of December 31, 2015"[...]"As part of our goal to sustainably source palm oil, we set a target of sourcing 100% RSPO physically certified palm oil by the end of 2020 and aim to continue to source 100% RSPO certified sustainable palm oil, while helping to lift production standards across the palm oil sector"
            Open source document
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: Collaborate on jurisdictional approaches ; obtain RSPO Certified palm oil
            "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 Resource Network. • No new development on peat, defined as soil containing greater than 65% organic matter, regardless of depth. • Application of best management practices for existing plantations on peat, as described in the RSPO Manual on Best Management Practices for Management and Rehabilitation of Natural Vegetation Associated with Oil Palm Cultivation on Peat. • No burning as defined by RSPO. • In addition to compliance with all provisions listed above, no forest or peatland conversion following a conversion cutoff date of December 31, 2015"
            Open source document
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: 2020
            "As part of our goal to sustainably source palm oil, we set a target of sourcing 100% RSPO physically certified palm oil by the end of 2020 and aim to continue to source 100% RSPO certified sustainable palm oil, while helping to lift production standards across the palm oil sector"
            Open source document
        • Commitment to a traceable supply chain
          8/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: 2015
            "We continue to strive towards 100% traceability to the mill in our supply chain, and to ensure high standards of traceability reporting. At the end of 2021, our suppliers reported approximately 97% of our palm oil volumes were traceable to the mill level. [...] also focused on driving traceability to plantation (TTP) in our supply chain [...] Since launching our Traceability Protocol, we collected information from 36 suppliers, which represents approximately 57% of our volume reported traceability to plantation."
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We continue to strive towards 100% traceability to the mill in our supply chain, and to ensure high standards of traceability reporting. At the end of 2021, our suppliers reported approximately 97% of our palm oil volumes were traceable to the mill level. [...] also focused on driving traceability to plantation (TTP) in our supply chain [...] Since launching our Traceability Protocol, we collected information from 36 suppliers, which represents approximately 57% of our volume reported traceability to plantation."
            Open source document
          • Target date
            2022
            1/1
            Target date
            2022
            1/1
            What actions or steps are identified for time-bound implementation?: 100% traceability to mill by 2022
            “Our historical target was to trace 100% of our palm oil to mill by the end of 2020. In 2021, 97.4% of our palm was traceable to mill, with 100% of our palm volume physically certified as sustainable. […] we set a new goal for 98% traceability to mill by 2022 to maintain our current engagement while continuing work with industry partners to drive 100% traceability in the future.”
            Open source document
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: 2020
            “Our historical target was to trace 100% of our palm oil to mill by the end of 2020. In 2021, 97.4% of our palm was traceable to mill, with 100% of our palm volume physically certified as sustainable. […] we set a new goal for 98% traceability to mill by 2022 to maintain our current engagement while continuing work with industry partners to drive 100% traceability in the future.”
            Open source document
      • Associated Human Rights Abuses
        16/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: PepsiCo's suppliers

          Other workers' rights commitments: Only work legal working hours; Free from abusive practices/undue disciplinary procedures

          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
          "PepsiCo expects its suppliers to conduct business responsibly, with integrity, honesty, and transparency, and to adhere to the following principles: provide a workplace free from discrimination, harassment ; Treat employees fairly, including with respect to wages, working hours and benefits ; Prohibit all forms of forced or compulsory labor ; Prohibit use of child labor. ; Respect employees’ rights to freedom of association and collective bargaining."
          Open source document
        • Inclusion of small-scale farmers
          Yes
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: NA

          What is the nature of that support?: Technical assistance/support
          "PepsiCo requires the following: We support the inclusion of smallholder farmers into sustainable palm oil supply chains."[...]"Our approach for high-risk commodities (palm oil) such as these is based on: Investing and supporting on-the-ground projects to ensure farmers, including smallholders and communities, benefit from our actions"
          Open source document
          Open source document
        • Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          2/2
          Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          2/2
          "PepsiCo and the PepsiCo Foundation promote greater diversity and inclusion in farm management, including support for female farmers and people of color, through partnerships with organizations like the U.S. Agency for International Development (USAID), Inter-American Development Bank (IADB), CARE and the National Black Growers Council. In 2021, we continued working with USAID on a 5-year, $20 million partnership to support women-owned and women-led enterprises among PepsiCo suppliers in rural farming communities in Asia, the Middle East and Latin America. The programs will improve resiliency in these communities and show that inclusivity leads to better business results. "
          Open source document
        • Commitment to remediation
          Yes
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: Social harm; Environmental harm
          "While our policies and programs may not prevent all adverse impacts in our value chain, we aim to provide effective remedy wherever possible, including using our influence to encourage our suppliers and partners to provide effective remedy where we find impacts directly linked to our business operations, goods, or services. We have established a variety of mechanisms that allow our employees, stakeholders, and other potentially affected individuals to raise grievances and seek remedy. "[...]"Where instances of non-compliance are found (with sustainable sourcing programme) during on-site audits or virtual assessments, a corrective action plan with a timeline for remediation is put in place by the supplier and follow-up audits are conducted by an approved third-party auditing firm to verify implementation."
          Open source document
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Tier 1
          "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"
          Open source document
        • Commitment to resolve land conflicts
          Yes
          3/3
          Commitment to resolve land conflicts
          Yes
          3/3
          "PepsiCo is committed to doing business the right way and has a zero tolerance for illegal activities in our supply chain and land displacements of any legitimate land tenure holders1 which are contrary to the International Finance Corporation (IFC) Performance Standards.[...]When PepsiCo is acquiring land, engage in fair (based on effective grievance mechanisms and processes) and legal negotiations on land transfers and acquisitions"
          Open source document
        • Zero-tolerance approach to violence and threats
          Yes
          3/3
          Zero-tolerance approach to violence and threats
          Yes
          3/3
          "We will not tolerate nor contribute to threats, intimidation, or attacks (both physical and legal) against human rights defenders, including those defending labor rights, supporting environmental protection, and exercising their rights and freedoms in peaceful assembly and protest of our business. We expect our suppliers and business partners to uphold the same commitments, and we will use our leverage to help enable remedy where there is clear evidence a supplier or business partner has adversely impacted the rights of HRDs."
          Open source document
      • Implementation and Reporting
        38/56
        • Reporting volumes against commitments
          80-99%
          3/3
          Reporting volumes against commitments
          80-99%
          3/3
          What is the compliant volume?: 97%

          What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: 2%

          What percentage of the commodity purchased or sourced by the company can be traced to the farm level on production units that are not DCF?: NA

          What is the certified volume?: NA

          Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes

          What is the non-certified/non-compliant volume?: 2%

          What percentage of the commodity purchased or sourced by the company can be traced to the level of a sourcing area, but not to production unit, in areas with deforestation/conversion risk?: NA

          What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: 97%
          "As more mass balance physically-certified sustainable palm oil (CSPO) becomes available, and as part of our goal to sustainably source palm oil, we set a target of sourcing 100% RSPO physically certified palm oil by the end of 2020. We achieved this goal, increasing our sourcing from 82% in 2019. In addition, we procured 8,162 MT of Independent Smallholder Credits in 2021 , which are an effective way to recognize efforts made by smallholders to reach the level of RSPO certification. To address the problem of limited physically-certified palm oil, PepsiCo also seeks to build certification capacity on our journey to 100%, supported by our supplier scorecard mechanism."
          Open source document
        • Reporting is independently verified
          Yes, using an internal verification system
          1/2
          Reporting is independently verified
          Yes, using an internal verification system
          1/2
          What methods are used for verification?: RSPO

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

          What percent of the company's supply volume is verified using company verification systems?: NA

          Which processes or groups does the company use for third party verification?: RSPO

          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA
          "As more mass balance physically-certified sustainable palm oil (CSPO) becomes available, and as part of our goal to sustainably source palm oil, we set a target of sourcing 100% RSPO physically certified palm oil by the end of 2020. We achieved this goal, increasing our sourcing from 82% in 2019. In addition, we procured 8,162 MT of Independent Smallholder Credits in 2021 , which are an effective way to recognize efforts made by smallholders to reach the level of RSPO certification. To address the problem of limited physically-certified palm oil, PepsiCo also seeks to build certification capacity on our journey to 100%, supported by our supplier scorecard mechanism."
          Open source document
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          "This Global Policy on Sustainable Palm Oil includes our commitments to no deforestation, no development on peat, and no exploitation of the rights of indigenous peoples, workers and local communities (“NDPE commitments”). It applies to all palm and palm kernel oil that we use globally and covers our entire supply chain, from direct suppliers to production sources at the group level, meaning NDPE should be applied across their entire operations and third-party supply chain and not limited solely to the palm oil sold to PepsiCo. Our policy applies to all of PepsiCo’s operations, subsidiaries, joint ventures, brands and products worldwide. It also serves as an expectation of our business partners, at the group level, that directly produce palm oil."
          Open source document
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 31/12/2015
          "In addition to compliance with all applicable legal requirements of each country in which we operate and from which we source palm oil, and building upon the Principles & Criteria of the Roundtable on Sustainable Palm Oil (RSPO), PepsiCo requires the following: In addition to compliance with all provisions listed above, no forest or peatland conversion following a conversion cutoff date of December 31, 2015."
          Open source document
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise; Providing financial support; Providing technical capacity

          What initiatives does the company participate in?: Un México Palmero Sustenable!
          "In Mexico, PepsiCo supported the first-ever RSPO-certified mill and will continue to support this work. In 2017, PepsiCo supported Oleopalma’s successful application to the RSPO Smallholders Support Fund, committing to match funding of the RSPO contribution 1:1, leveraging important resources to the benefit of smallholders to achieve the RSPO independent group certification while contributing to their livelihoods and ensuring the sustainable supply of certified palm oil and in addition, to serve as a model of sustainable development for the palm oil industry in Mexico. In February 2018, PepsiCo initially announced this as a three-year program to train and support 157 Mexican smallholder palm oil producers in adopting sustainable palm oil cultivation practices that can help maximize economic benefits while also protecting the environment. The program is expected to benefit more than 2,200 people and their communities. The program is supported by the RSPO Smallholder Support Fund and is in partnership with Oleopalma, Oleofinos, Federación Mexicana de Palma de Aceite (Femexpalma), Smallholder Associations and Proforest."
          Open source document
        • Jurisdictional approach focused on sustainable land use
          Yes
          2/2
          Jurisdictional approach focused on sustainable land use
          Yes
          2/2
          How is the company engaged within the jurisdictional approach?: Engages palm oil mills ; coordinates deforestation monitoring ; helps implement jurisdictional approach workplan

          How many jurisdictional approaches focused on land use is the company currently involved in?: 2

          Does the company report on the type of engagement they are conducting in the context of the jurisdictional approach (e.g. disbursed financial support, in-kind support, capacity, preferential sourcing)?: Capacity support ; financial support

          What methodology was used to identify the jurisdictions of focus?: NA

          What are the names, locations, timelines and other partners involved in the jurisdictional approaches?: Siak and Pelalawan ; Aceh Tamiang Produce Protection Inclusion Initiative

          What percentage of the company's non-DCF supply chain are sourced from the landscape where the jurisdictional approach is adopted?: NA
          "In Indonesia, PepsiCo is one of eight companies that are working together on a landscape program for sustainable palm oil in the districts of Siak and Pelalawan. The goal of the program is to create sustainable landscapes across both districts, which will produce deforestation-free and exploitation-free palm oil and maintain or enhance key conservation areas. Some highlights from 2021 include: Alignment with government and Pelalawan on the Coalition’s role in supporting the implementation of the district action plan for sustainable palm oil. This builds on an agreement that was signed between the Coalition and the Siak District Government in 2019 to support the Siak government’s plan for sustainable governance of the district, ensuring that the Coalition is working in alignment with the government of both districts."
          Open source document
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Every 4-6 years

          For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
          "We work with Proforest to develop risk analysis and mitigation plans for key regions, as well as a verification process that stresses PepsiCo’s goals on High Carbon Stock, High Conservation Values, peatlands, land rights, including Free, Prior and Informed Consent, human rights, and no burning, as described by RSPO. This involves a risk assessment of direct suppliers and their supply base (leveraging 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 engagement. We expect that this work will increase engagement with suppliers to monitor implementation of continuous improvement plans and help us stay ahead of regulatory requirements."
          Open source document
        • 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"[...]"To conduct business with PepsiCo, suppliers must enter into contracts and execute purchase orders that mandate compliance with the Supplier Code. 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"
          Open source document
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company?: Own mechanism
          "The Grievance Mechanism complements programs and processes PepsiCo has already in place to prevent, identify and manage environmental and social concerns throughout our value chain. Our priority is to aim to ensure that our standards are upheld through awareness raising, training, engagement, investment in programs and collaboration with industry peers and others."[...]"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."
          Open source document
        • Report volumes of commodity
          Reporting total volume
          3/3
          Report volumes of commodity
          Reporting total volume
          3/3
          What product types/sectors is this in?: food

          Total volume: 445,388 metric tons

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: na

          Reporting certified/compliant volume: 445,388 metric tons

          Reporting non-certified/non-compliant volume: 0 tons
          "In 2021, our global purchase of palm oil was 445,388 metric tons [...] as part of our goal to sustainably source palm oil, we set a target of sourcing 100% RSPO physically certified palm oil by the end of 2020. We achieved this goal, increasing our sourcing from 82% in 2019. "
          Open source document
        • Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: Audit

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          " Our Global Supplier Code of Conduct (“Supplier Code”) sets out our expectations for suppliers in the areas of business integrity and anticorruption, labor practices, [...] With prior notice, PepsiCo may conduct reasonable audits to verify Supplier’s compliance with the Supplier Code."
          Open source document
        • Compliance of company-owned operations
          No
          0/5
        • 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
          For what percent of smallholder suppliers is location disclosed?: NA

          For what percent of suppliers' production areas are point locations disclosed?: 100%

          From what sub-national jurisdiction(s) does the company source material?: Andhra Pradesh ; Johor ; Sumatra Utara ; Pahang ; Meta ; Veracruz ; Colon ; Riau ; Kalimantan Barat ; Santo Domingo de los Tsachilas ; Los Rios ; Esmeraldas ; Izabal ; Quetzaltenango ; Para ; Riau ; Jambi ; Melaka ; Sabah ; Sarawak ; Bengkulu ; Chiriqui ; Atlantico Sur ; Magdalena ; Perak ; Terrengganu ; Cesar ; Atlantico ; Puntarenas ; Surat Thani ; Escuintla ; Chiapas ; Estuaire ; Bar-Sassandra ; Kaoh Kong ; Nakhon Si Thamarrat ; Chumphon ; Narino

          From what country(ies) does the company source material?: Malaysia ; Indonesia ; Ecuador ; Guatemala ; Honduras ; Colombia ; Brazil ; Panama ; Costa Rica ; Nicaragua ; Mexico ; India ; Gabon ; Thailand ; Cote D'Ivoire ; Cambodia

          Does the company disclose location of suppliers' production areas or primary processing sites?: No

          What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA

          What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA

          For what percent is no location data disclosed?: 0%

          For what percent are boundaries disclosed?: 0%
          Pepsico disclose a palm oil list "The following palm oil mill list is based on information that has been self-reported to us by suppliers for the calendar year 2021. 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. Some of these mills are associated with ongoing complaints that have been registered in our Grievance Mechanism and are being managed through our grievance process and / or may no longer be in our supply chain." and a supplier list "This supplier list is current as of December 2021. 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 AAK AB, Industrializados Oleofinos S.A. de C.V. and Wilmar International Limited. Seventy-five percent of our palm oil globally is currently supplied by 21 companies."
          Open source document
          Open source document
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers; Also for its suppliers production or primary processing operations in its supply chains
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers; Also for its suppliers production or primary processing operations in its supply chains
          3/4
          What percentage of the company's supply chain volume does that represent?: 100%

          How is compliance monitored?: Internal monitoring and verification systems

          How frequently is compliance assessed?: Supplier Scorecard 1-3 years ; Risk Assessments 4-6 years

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 0%
          "Our Supplier Scorecards provide a means to track and encourage our suppliers’ progress towards establishing policies and programs to enhance performance and capability in sustainable palm. Our Palm Oil Traceability Protocol, developed in collaboration with palm experts and industry partners, supports the development of better information systems to help achieve our goals and prioritize opportunities for improvement. Finally, our impact programs prioritize capacity building, particularly training and development."[...]"We work with proforest to develop... risk assessment of direct suppliers and their supply base (leveraging 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 engagement. We expect that this work will increase engagement with suppliers to monitor implementation of continuous improvement plans and help us stay ahead of regulatory requirements."
          Open source document
        • Downstream: Reporting hectares of deforestation
          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
          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          What criteria does the policy specify for blacklisting or exclusion?: Failure to comply with palm oil policy

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Guidance on necessary actions to take
          "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."
          Open source document
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: Meet with executives discuss how to implement a zero deforestation policy

          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          "Engaging with IndoAgri. We have undertaken extensive, ongoing engagement with Indofood and IndoAgri on the specific allegations and potential steps to help progress the complaint process and resolution of the complaint. This includes several meetings and calls involving senior executives over an 18 month period and direct contact between our CEO and the CEO of Indofood to highlight the importance of addressing the matter in a transparent manner.  Engaging our direct suppliers: PepsiCo does not source directly from IndoAgri but receives IndoAgri volumes through a number of direct suppliers. We are in regular contact with those suppliers to highlight the need for them to engage with IndoAgri about the complaint, to share the actions they are already taking and engaging with them about further possible actions they might take which would support resolution in line with our and their policies and commitments, as well as registering the complaint in our grievance mechanism process."
          Open source document
    • Pulp & Paper
      54/90
      • Commitment Strength
        14/17
        • Commitment to protect priority forests
          6/9.5
          • Commitment details
            Zero-net deforestation
            3/6
            Commitment to protect priority forests
            Zero-net deforestation
            3/6
            Which certification schemes are used?: FSC; PEFC

            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat

            Type of sustainability commitment: Reduce the volume of virgin wood fibre used in paper and packaging products through usage of recycled content; Reduction of material inputs

            What paper/pulp product does their commitment apply to?: Paper products; Pulp; Packaging

            When was this commitment set?: 2021
            "PepsiCo is committed to realizing zero deforestation in our company-owned and -operated activities and global supply chains, including fiber supply chains, from direct supplier to source of production. We seek to source wood fibers for packaging that originate from certified, well-managed forests/plantations and do not involve controversial sources. iii We aim to optimize the use of post-consumer recycled fibers in our packaging materials wherever feasible. For virgin fiber, PepsiCo is committed to 100% sustainably certified fiber for our company owned packaging by 2025. We seek Forest Stewardship Council (FSC) Forest Management and Chain of Custody certification but accept product certified under national schemes approved by the Program for the Endorsement of Forest Certification (PEFC) where it provides equivalent assurance and/or there is not enough FSC-certified product available to meet our needs."[...]"PepsiCo will source from suppliers that adhere to the following principles: • No further development on High Carbon Stock (HCS) Forests.1 • No further development on High Conservation Value (HCV) Areas, including High Conservation Value Forests2 and intact forest landscapes. • No new conversion of any Peatlands and the use of best management practices for existing operations on Peatlands."
            Open source document
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "PepsiCo is committed to realizing zero deforestation in our company-owned and -operated activities and global supply chains, including fiber supply chains, from direct supplier to source of production. We seek to source wood fibers for packaging that originate from certified, well-managed forests/plantations and do not involve controversial sources. iii We aim to optimize the use of post-consumer recycled fibers in our packaging materials wherever feasible. For virgin fiber, PepsiCo is committed to 100% sustainably certified fiber for our company owned packaging by 2025. We seek Forest Stewardship Council (FSC) Forest Management and Chain of Custody certification but accept product certified under national schemes approved by the Program for the Endorsement of Forest Certification (PEFC) where it provides equivalent assurance and/or there is not enough FSC-certified product available to meet our needs."
            Open source document
          • Target date
            2025
            0.8/1
            Target date
            2025
            0.8/1
            What actions or steps are identified for time-bound implementation?: NA
            "PepsiCo is committed to realizing zero deforestation in our company-owned and -operated activities and global supply chains, including fiber supply chains, from direct supplier to source of production. We seek to source wood fibers for packaging that originate from certified, well-managed forests/plantations and do not involve controversial sources. iii We aim to optimize the use of post-consumer recycled fibers in our packaging materials wherever feasible. For virgin fiber, PepsiCo is committed to 100% sustainably certified fiber for our company owned packaging by 2025. We seek Forest Stewardship Council (FSC) Forest Management and Chain of Custody certification but accept product certified under national schemes approved by the Program for the Endorsement of Forest Certification (PEFC) where it provides equivalent assurance and/or there is not enough FSC-certified product available to meet our needs."
            Open source document
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: Current
            "PepsiCo is committed to realizing zero deforestation in our company-owned and -operated activities and global supply chains, including fiber supply chains, from direct supplier to source of production. We seek to source wood fibers for packaging that originate from certified, well-managed forests/plantations and do not involve controversial sources. iii We aim to optimize the use of post-consumer recycled fibers in our packaging materials wherever feasible. For virgin fiber, PepsiCo is committed to 100% sustainably certified fiber for our company owned packaging by 2025. We seek Forest Stewardship Council (FSC) Forest Management and Chain of Custody certification but accept product certified under national schemes approved by the Program for the Endorsement of Forest Certification (PEFC) where it provides equivalent assurance and/or there is not enough FSC-certified product available to meet our needs."
            Open source document
        • Commitment to a traceable supply chain
          8/7.5
          • Commitment details
            Downstream company, traces to First Importer, checks compliance
            4/4
            Commitment to a traceable supply chain
            Downstream company, traces to First Importer, checks compliance
            4/4
            When was this commitment set?: NA
            "PepsiCo is focused on developing and maintaining a deeper understanding of our paper-based packaging supply chain and our supply base sourcing as close to the forest of origin as possible. This is an extremely complex [...] PepsiCo relies on third-party certifications such as FSC to determine traceability, based on mills where production occurs. We also perform an annual analysis of our contracted volumes through targeted outreach to global procurement contacts to understand the attributes of the fiber packaging products we purchase, including the source country, whether the volumes are certified to a specific sustainability standard, and if suppliers are considered high risk. [...] Point to which commodity is traceable Timber products [..] Country [...] % of total production/consumption volume traceable : 100%"
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "PepsiCo is focused on developing and maintaining a deeper understanding of our paper-based packaging supply chain and our supply base sourcing as close to the forest of origin as possible. This is an extremely complex [...] PepsiCo relies on third-party certifications such as FSC to determine traceability, based on mills where production occurs. We also perform an annual analysis of our contracted volumes through targeted outreach to global procurement contacts to understand the attributes of the fiber packaging products we purchase, including the source country, whether the volumes are certified to a specific sustainability standard, and if suppliers are considered high risk. [...] Point to which commodity is traceable Timber products [..] Country [...] % of total production/consumption volume traceable : 100%"
            Open source document
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: 100% of timber is traceable to country of origin
            "PepsiCo is focused on developing and maintaining a deeper understanding of our paper-based packaging supply chain and our supply base sourcing as close to the forest of origin as possible. This is an extremely complex [...] PepsiCo relies on third-party certifications such as FSC to determine traceability, based on mills where production occurs. We also perform an annual analysis of our contracted volumes through targeted outreach to global procurement contacts to understand the attributes of the fiber packaging products we purchase, including the source country, whether the volumes are certified to a specific sustainability standard, and if suppliers are considered high risk. [...] Point to which commodity is traceable Timber products [..] Country [...] % of total production/consumption volume traceable : 100%"
            Open source document
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "PepsiCo is focused on developing and maintaining a deeper understanding of our paper-based packaging supply chain and our supply base sourcing as close to the forest of origin as possible. This is an extremely complex [...] PepsiCo relies on third-party certifications such as FSC to determine traceability, based on mills where production occurs. We also perform an annual analysis of our contracted volumes through targeted outreach to global procurement contacts to understand the attributes of the fiber packaging products we purchase, including the source country, whether the volumes are certified to a specific sustainability standard, and if suppliers are considered high risk. [...] Point to which commodity is traceable Timber products [..] Country [...] % of total production/consumption volume traceable : 100%"
            Open source document
      • Associated Human Rights Abuses
        16/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: PepsiCo's suppliers

          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Only work legal working hours; Free from abusive practices/undue disciplinary procedures
          "PepsiCo expects its suppliers to conduct business responsibly, with integrity, honesty, and transparency, and to adhere to the following principles: provide a workplace free from discrimination, harassment ; Treat employees fairly, including with respect to wages, working hours and benefits ; Prohibit all forms of forced or compulsory labor ; Prohibit use of child labor. ; Respect employees’ rights to freedom of association and collective bargaining."
          Open source document
        • Inclusion of small-scale farmers
          Yes
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: NA

          What is the nature of that support?: Technical assistance/support
          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."
          Open source document
        • Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          2/2
          Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          2/2
          "PepsiCo and the PepsiCo Foundation promote greater diversity and inclusion in farm management, including support for female farmers and people of color, through partnerships with organizations like the U.S. Agency for International Development (USAID), Inter-American Development Bank (IADB), CARE and the National Black Growers Council. In 2021, we continued working with USAID on a 5-year, $20 million partnership to support women-owned and women-led enterprises among PepsiCo suppliers in rural farming communities in Asia, the Middle East and Latin America. The programs will improve resiliency in these communities and show that inclusivity leads to better business results. "
          Open source document
        • Commitment to remediation
          Yes
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: Social harm; Environmental harm
          "While our policies and programs may not prevent all adverse impacts in our value chain, we aim to provide effective remedy wherever possible, including using our influence to encourage our suppliers and partners to provide effective remedy where we find impacts directly linked to our business operations, goods, or services. We have established a variety of mechanisms that allow our employees, stakeholders, and other potentially affected individuals to raise grievances and seek remedy. "[...]"Where instances of non-compliance are found (with sustainable sourcing programme) during on-site audits or virtual assessments, a corrective action plan with a timeline for remediation is put in place by the supplier and follow-up audits are conducted by an approved third-party auditing firm to verify implementation."
          Open source document
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Tier 1
          "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"
          Open source document
        • Commitment to resolve land conflicts
          Yes
          3/3
          Commitment to resolve land conflicts
          Yes
          3/3
          "PepsiCo is committed to doing business the right way and has a zero tolerance for illegal activities in our supply chain and land displacements of any legitimate land tenure holders1 which are contrary to the International Finance Corporation (IFC) Performance Standards.[...]When PepsiCo is acquiring land, engage in fair (based on effective grievance mechanisms and processes) and legal negotiations on land transfers and acquisitions"
          Open source document
        • Zero-tolerance approach to violence and threats
          Yes
          3/3
          Zero-tolerance approach to violence and threats
          Yes
          3/3
          "We will not tolerate nor contribute to threats, intimidation, or attacks (both physical and legal) against human rights defenders, including those defending labor rights, supporting environmental protection, and exercising their rights and freedoms in peaceful assembly and protest of our business. We expect our suppliers and business partners to uphold the same commitments, and we will use our leverage to help enable remedy where there is clear evidence a supplier or business partner has adversely impacted the rights of HRDs."
          Open source document
      • Implementation and Reporting
        25/56
        • Reporting volumes against commitments
          50-79%
          2/3
          Reporting volumes against commitments
          50-79%
          1.5/3
          How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: NA

          How much of this downstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA

          What is the compliant volume?: NA

          What is the non-certified/non-compliant volume?: NA

          What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: NA

          What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: NA

          Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No

          What is the certified volume?: 715,403 Metric Tonnes
          "PepsiCo is focused on developing and maintaining a deeper understanding of our paper-based packaging supply chain and our supply base sourcing as close to the forest of origin as possible. This is an extremely complex [...] PepsiCo relies on third-party certifications such as FSC to determine traceability, based on mills where production occurs. We also perform an annual analysis of our contracted volumes through targeted outreach to global procurement contacts to understand the attributes of the fiber packaging products we purchase, including the source country, whether the volumes are certified to a specific sustainability standard, and if suppliers are considered high risk. [...] Point to which commodity is traceable Timber products [..] Country [...] % of total production/consumption volume traceable : 100%"
          Open source document
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          2/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise

          What initiatives does the company participate in?: European Organization for Packaging and the Environmen
          "i. PepsiCo role and fit within environmental strategy: PepsiCo is 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 (see: https://www.pepsico.com/docs/album/esg-topics-policies/pepsico-sustainablepackaging-policy.pdf?sfvrsn=d808643c_4)"
          Open source document
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • 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?: NA

          How frequently are assessments conducted?: Annually
          "We assess deforestation risks in our paper-based packaging supply chain on an annual basis using internal methods, supplemented with external support from Proforest on an as-needed basis, reporting results to the senior vice president, chief supply officer. The combination of internal and external input into our risk assessment process helps ensure that necessary expertise is available for thorough coverage of stakeholder considerations and the overall commodity landscape. The risk assessment procedure helps identify the sustainability risks in the commodity and where they exist in our supply chain. This is part of an ongoing process through which we work with our suppliers to help them become more sustainable by following credible forestry standards and purchasing wood fiber only from sources that support responsible forest management, as outlined in our policies."
          Open source document
        • 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"[...]"To conduct business with PepsiCo, suppliers must enter into contracts and execute purchase orders that mandate compliance with the Supplier Code. 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"
          Open source document
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company?: Own mechanism

          Which issues does the grievance mechanism cover?: Social; Environmental
          "The Grievance Mechanism complements programs and processes PepsiCo has already in place to prevent, identify and manage environmental and social concerns throughout our value chain. Our priority is to aim to ensure that our standards are upheld through awareness raising, training, engagement, investment in programs and collaboration with industry peers and others."[...]"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."
          Open source document
        • Report volumes of commodity
          Reporting total volume
          3/3
          Report volumes of commodity
          Reporting total volume
          3/3
          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting non-certified/non-compliant volume: 0 tons

          What product types/sectors is this in?: Paper Primary packaging Secondary packaging Tertiary packaging

          Reporting certified/compliant volume: 1,084,061 tons

          Total volume: 1,084,061 tons
          In their 2022 Forest CDP, PepsiCO report their total usage of timber products as 1,084,061 tons
          Open source document
        • Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: Audits

          What is the status of those FPIC processes?: NA

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
          " Our Global Supplier Code of Conduct (“Supplier Code”) sets out our expectations for suppliers in the areas of business integrity and anticorruption, labor practices, [...] With prior notice, PepsiCo may conduct reasonable audits to verify Supplier’s compliance with the Supplier Code."
          Open source document
        • Compliance of company-owned operations
          No
          0/5
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          For what percent is no location data disclosed?: 100%

          What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA

          For what percent are boundaries disclosed?: 0%

          What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA

          Does the company disclose location of suppliers' production areas or primary processing sites?: No

          For what percent of smallholder suppliers is location disclosed?: 0%

          For what percent of suppliers' production areas are point locations disclosed?: 0%

          From what sub-national jurisdiction(s) does the company source material?: NA

          From what country(ies) does the company source material?: NA
          "PepsiCo Global Fiber Supplier List, 2020 Below is a list of fiber suppliers for PepsiCo’s company owned operations during 2020. The list reflects our supply chain-mapping effort and is subject to change as supply chain flows evolve on a regular basis. Wood fiber products are used in a wide range of PepsiCo’s primary, secondary, and tertiary packing. PepsiCo’s main fiber need is corrugated cardboard for secondary packaging. In 2020, our volume was approximately 1,250,000 metric tons."
          Open source document
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 100%

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          What percentage of the company's supply chain volume does that represent?: NA

          How frequently is compliance assessed?: Unspecified

          How is compliance monitored?: Certification
          " PepsiCo aims to achieve zero net deforestation in our Company-owned and -operated activities and global supply chains from direct supplier to source. This is facilitated through proactively utilizing certification programs to verify compliance; for timber in our packaging, 83% of our total volume was certified to one of the following standards in 2021: CERFLOR, CSA, FSC, PEFC, or SFI. PepsiCo recognizes the importance of having a credible system for third parties to raise concerns where they believe our standards are not being met. Our agricultural supply chain grievance mechanism helps prevent, identify and manage environmental and social concerns throughout our value chain, including those associated with timber. This allows third parties to raise concerns that our environmental and social goals and policies may not be upheld within our agricultural supply chain."
          Open source document
        • Downstream: Reporting hectares of deforestation
          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
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Provide Corrective Action Plans

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes

          What criteria does the policy specify for blacklisting or exclusion?: Failure comply sourcing policy

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
          "We have engaged our direct suppliers who source from the companies at the center of complaints in 2021 to 1) Validate the allegations, 2) Demonstrate the importance we attach to addressing the concerns raised, 3) Understand corrective action steps already taken and planned in the future, and 4) Influence those actions, monitor progress towards completion and ultimately address the complaint."
          Open source document
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      31/90
      • Commitment Strength
        3/17
        • Commitment to protect priority forests
          3/9.5
          • Commitment details
            Zero-net deforestation
            3/6
            Commitment to protect priority forests
            Zero-net deforestation
            3/6
            Does the company commitment also explicitly apply to hidden/indirect soy?: No

            When was this commitment set?: 2020
            "PepsiCo is focused on realizing zero net deforestation in our company-owned and operated activities and global supply chains from direct supplier to source. Our most significant influence on the protection of forests is through our sourcing of paper- and wood-based products and raw agricultural materials, particularly palm oil. Other relevant raw materials that we source include soy, cocoa, and dairy."
            Open source document
            Open source document
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            What subsidiaries are explicitly excluded?: They only focus on direct suppliers

            What is the rationale for any exclusions?: They only focus on direct suppliers

            If no, what is excluded?: Indirect suppliers

            What subsidiaries are explicitly included?: They only focus on direct suppliers

            What percentage of commodity production/sourcing is excluded?: Na
            "PepsiCo is focused on realizing zero net deforestation in our company-owned and operated activities and global supply chains from direct supplier to source. Our most significant influence on the protection of forests is through our sourcing of paper- and wood-based products and raw agricultural materials, particularly palm oil. Other relevant raw materials that we source include soy, cocoa, and dairy."
            Open source document
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        14/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: PepsiCo's suppliers

          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Only work legal working hours; Free from abusive practices/undue disciplinary procedures
          "PepsiCo expects its suppliers to conduct business responsibly, with integrity, honesty, and transparency, and to adhere to the following principles: provide a workplace free from discrimination, harassment ; Treat employees fairly, including with respect to wages, working hours and benefits ; Prohibit all forms of forced or compulsory labor ; Prohibit use of child labor. ; Respect employees’ rights to freedom of association and collective bargaining."
          Open source document
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          2/2
          Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          2/2
          "PepsiCo and the PepsiCo Foundation promote greater diversity and inclusion in farm management, including support for female farmers and people of color, through partnerships with organizations like the U.S. Agency for International Development (USAID), Inter-American Development Bank (IADB), CARE and the National Black Growers Council. In 2021, we continued working with USAID on a 5-year, $20 million partnership to support women-owned and women-led enterprises among PepsiCo suppliers in rural farming communities in Asia, the Middle East and Latin America. The programs will improve resiliency in these communities and show that inclusivity leads to better business results. "
          Open source document
        • Commitment to remediation
          Yes
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: Social harm; Environmental harm
          "While our policies and programs may not prevent all adverse impacts in our value chain, we aim to provide effective remedy wherever possible, including using our influence to encourage our suppliers and partners to provide effective remedy where we find impacts directly linked to our business operations, goods, or services. We have established a variety of mechanisms that allow our employees, stakeholders, and other potentially affected individuals to raise grievances and seek remedy. "[...]"Where instances of non-compliance are found (with sustainable sourcing programme) during on-site audits or virtual assessments, a corrective action plan with a timeline for remediation is put in place by the supplier and follow-up audits are conducted by an approved third-party auditing firm to verify implementation."
          Open source document
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Tier 1
          "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"
          Open source document
        • Commitment to resolve land conflicts
          Yes
          3/3
          Commitment to resolve land conflicts
          Yes
          3/3
          "PepsiCo is committed to doing business the right way and has a zero tolerance for illegal activities in our supply chain and land displacements of any legitimate land tenure holders1 which are contrary to the International Finance Corporation (IFC) Performance Standards.[...]When PepsiCo is acquiring land, engage in fair (based on effective grievance mechanisms and processes) and legal negotiations on land transfers and acquisitions"
          Open source document
        • Zero-tolerance approach to violence and threats
          Yes
          3/3
          Zero-tolerance approach to violence and threats
          Yes
          3/3
          "We will not tolerate nor contribute to threats, intimidation, or attacks (both physical and legal) against human rights defenders, including those defending labor rights, supporting environmental protection, and exercising their rights and freedoms in peaceful assembly and protest of our business. We expect our suppliers and business partners to uphold the same commitments, and we will use our leverage to help enable remedy where there is clear evidence a supplier or business partner has adversely impacted the rights of HRDs."
          Open source document
      • Implementation and Reporting
        15/56
        • Reporting volumes against commitments
          No disclosure
          0/3
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings

          What initiatives does the company participate in?: Soy Commodity Working Group
          "As a member of the CGF Forest Positive Coalition of Action (FPC), PepsiCo participates in the Soy Commodity Working Group, which published its first Roadmap in 2021, and co-leads the FPC's Landscapes Working Group, which aims for coalition-wide action against Element 4 of the Commodity Road Maps (Engagement in Regions and Landscapes)"
          Open source document
        • Jurisdictional approach focused on sustainable land use
          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"[...]"To conduct business with PepsiCo, suppliers must enter into contracts and execute purchase orders that mandate compliance with the Supplier Code. 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"
          Open source document
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company?: Own mechanism

          Which issues does the grievance mechanism cover?: Social; Environmental
          "The Grievance Mechanism complements programs and processes PepsiCo has already in place to prevent, identify and manage environmental and social concerns throughout our value chain. Our priority is to aim to ensure that our standards are upheld through awareness raising, training, engagement, investment in programs and collaboration with industry peers and others."[...]"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."
          Open source document
        • Report volumes of commodity
          Reporting total volume
          3/3
          Report volumes of commodity
          Reporting total volume
          3/3
          What product types/sectors is this in?: Food Processing

          Reporting non-certified/non-compliant volume: NA

          Total volume: 30,000 metric tons

          Reporting certified/compliant volume: NA

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
          "Soybean oil is procured from Brazil, Argentina and the U.S. through two direct suppliers, Bunge and Cargill, primarily for use in our food businesses in Brazil, Argentina and Canada. PepsiCo procures approximately 30,000 metric tons of soybean oil annually."
          Open source document
        • Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA

          What steps has the company taken to implement their labour rights commitment?: audit
          " Our Global Supplier Code of Conduct (“Supplier Code”) sets out our expectations for suppliers in the areas of business integrity and anticorruption, labor practices, [...] With prior notice, PepsiCo may conduct reasonable audits to verify Supplier’s compliance with the Supplier Code."
          Open source document
        • Compliance of company-owned operations
          No
          0/5
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          What percentage of the company's supply chain volume does that represent?: 100%

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          How is compliance monitored?: Internal monitoring and verification systems

          How frequently is compliance assessed?: Unclear

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
          "PepsiCo is also implementing a supplier scorecard to assess progress by, and areas to work with, our suppliers in sourcing sustainable soy."
          Open source document
        • Downstream: Reporting hectares of deforestation
          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
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Discussions over how can become compliant

          What criteria does the policy specify for blacklisting or exclusion?: Failure comply with sustainable agriculture policies

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: 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."
          Open source document
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    11/17
    Avg. score
  • Implementation and Reporting
    26/56
    Avg. score
  • Associated Human Rights Abuses
    15/17
    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 Foods & Meats, Paper Packaging
Segments
Manufacturer
HQ
HQ 
United States
Company Type
Company type 
CO
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.

Full corporate sector performance data Forest 500 assessment methodology

Related articles and press coverage

Forest 500 annual report 2023 cover image, burning forest

40% of the Forest 500 have yet to set a single policy on deforestation

15 February 2023

See all articlesSee all press coverage

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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.