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  • Overall approach
    11/12
    • Overarching commitment on deforestation
      3/4
      Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
      3/4
      "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
      Yes
      1/1
      Which initiatives?: Consumer Goods Forum Deforestation resolution (being a member of the CGF is not sufficient); Tropical Forest Alliance 2020 partner; World Business Council for Sustainable Development Forest Solutions Group; UN Global Compact; High Conservation Value Resource Network; Other initiative

      If Other Initiative, specify:: CGF Forest Positive Coalition of Action (FPC) Soy Commodity Working Group, Palm Oil Collaboration Group
      Pepsico is an active member and signatory to many initiatives seeking to end or reduce soft commodity driven deforestation. 
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "To the World: Forests are essential to the world's eco-system, conserving biodiversity, storing carbon, and preserving the quality of water and air."
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: operational, financial and reputational
      "Our products depend on a safe, high-quality, and affordable supply of raw materials to meet the demands of our business as well as the expectations of our consumers, customers, and other stakeholders. As agriculture is an integral part of PepsiCo’s supply chain, we recognize that our supply chain is linked to the health and sustainability of the world’s forests."; "There is an increased focus, including by governments and civil society, investors, customers and consumers, on these and other environmental sustainability matters, including deforestation, land use, climate impact and water use. Our reputation could be adversely affected if we do not act, or are perceived not to act, responsibly with respect to our impact on the environment."
    • High-level management of deforestion
      1/1
      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
      "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."; "The PepsiCo Executive Committee (PEC) has direct oversight of the sustainability agenda, including strategic decisions and performance management. ii. Decision: In 2019, the PEC took the decision to create the Sustainability Sub-Committee comprising the CEO, the CFO and functional heads for additional direct oversight of sustainability, including forests-related matters."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      2/2
      Yes
      2/2
      "In January 2021, we more than doubled our science-based climate goal, targeting a reduction of GHG emissions across our value chain by more than 40 percent by 2030. In addition, we pledged to achieve net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement.";  "REDUCE absolute emissions across direct operations (Scope 1 and 2) by 75% and indirect value chain (Scope 3) by 40% by 2030 (2015 baseline)"
    • Reporting on emissions from land-use change
      2/2
      Yes
      2/2
      Which method is used to calculate the GHG emissions arising from land use change?: "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.2

      What is the total volume of GHG emissions arising from land use change?: 185669 MT CO2e
      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: 185669 MT 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 2019"
    • Disclosure of conservation activity
      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?: 500,000 hectares
      "Address systemic issues facing communities and ecosystems in priority landscapes, including deforestation, land and workers’ rights and economic viability. [...] Conserve or restore at least 140,000 hectares (ha) by the end of 2025."; "PepsiCo has also supported the protection of over 70,000 hectares under the identification of High Conservation Values in the Southeast of Mexico."; Large conservation project in Southeast Asia "aims to protect and restore over 500,000 hectares of tropical forests, was developed by Lestari Capital, an impact-focused enterprise, in collaboration with its founding partners which include PepsiCo, Nestlé, Procter & Gamble, and Wilmar."
    • Disclosure of reforestation activity
      Yes
      0/0
      "Address systemic issues facing communities and ecosystems in priority landscapes, including deforestation, land and workers’ rights and economic viability. [...] Conserve or restore at least 140,000 hectares (ha) by the end of 2025."; "PepsiCo has also supported the protection of over 70,000 hectares under the identification of High Conservation Values in the Southeast of Mexico."; Large conservation project in Southeast Asia "aims to protect and restore over 500,000 hectares of tropical forests, was developed by Lestari Capital, an impact-focused enterprise, in collaboration with its founding partners which include PepsiCo, Nestlé, Procter & Gamble, and Wilmar."
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      Type of climate target: Net-zero emissions

      What is the target date for the company to achieve their climate target?: 2050
      "PepsiCo established an ambitious science-based goal to reduce absolute greenhouse gas (GHG) emissions by at least 20% across our value chain by 2030. Our GHG emissions reduction goal covers our entire value chain (scope 3) and has been approved by the Science Based Targets Initiative. [...] limiting global warming to 1.5°C above pre-industrial levels, while also developing a long-term strategy for achieving net-zero emissions by 2050."
  • Commodity score
    54/88
    • Palm oil
      74/88
      • Commitment Strength
        18/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: RSPO

            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat
            "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: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."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "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: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."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "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: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."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "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: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."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "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: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."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "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: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."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "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: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."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "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: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."
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "As part of our work to ensure policy compliance, PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil."; " We continue to make progress toward our goal of 100% traceability to the mill and, at the end of 2018 and 2019, we estimated that approximately 97% of the palm oil we used was traced to specific mills, up from 94% in 2017, 89% in 2016 and 65% in 2015. We will continue working with our suppliers to increase visibility of the mills in our palm oil supply chain through various engagement efforts, including our mill traceability data verification protocol." [...] "Our target is to trace 100% of our palm oil to mills and plantations by the end of 2020." [...] "Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Our target is to trace 100% of our palm oil to mills and plantations by the end of 2020." [...] "Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "As part of our work to ensure policy compliance, PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil."; " We continue to make progress toward our goal of 100% traceability to the mill and, at the end of 2018 and 2019, we estimated that approximately 97% of the palm oil we used was traced to specific mills, up from 94% in 2017, 89% in 2016 and 65% in 2015. We will continue working with our suppliers to increase visibility of the mills in our palm oil supply chain through various engagement efforts, including our mill traceability data verification protocol." [...] "Our target is to trace 100% of our palm oil to mills and plantations by the end of 2020." [...] "Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "As part of our work to ensure policy compliance, PepsiCo has a goal to achieve 100% traceability to the mill level for all palm oil and palm kernel oil."; " We continue to make progress toward our goal of 100% traceability to the mill and, at the end of 2018 and 2019, we estimated that approximately 97% of the palm oil we used was traced to specific mills, up from 94% in 2017, 89% in 2016 and 65% in 2015. We will continue working with our suppliers to increase visibility of the mills in our palm oil supply chain through various engagement efforts, including our mill traceability data verification protocol." [...] "Our target is to trace 100% of our palm oil to mills and plantations by the end of 2020." [...] "Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation."
      • Social Considerations
        18/18
        • 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

          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces
          "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
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          4/4
          Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          4/4
          Pepsico commits to the the inclusion of women through investing "$100 million by 2025 to provide 12.5 million women with essential resources for workforce readiness and in programs that empower women in the food system and farming".; They also address equality through "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
          Type of harm covered: Environmental harm
          "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, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "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)"
        • Commitment to resolve land conflicts
          Yes
          Commitment to resolve land conflicts
          Yes
          0/0
          "There is growing potential for land rights disputes as new plantations are established. While some laws are in place, enforcement is patchy and certification schemes are not well established, meaning that companies need to have policies in place and work on implementation on the ground. PepsiCo introduced a land rights policy in 2014 [...]" ; "zero tolerance for illegal activities in our supply chain and land displacements of any legitimate land tenure holders [...] 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
        38/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "Since our last palm oil report, we have continued to manage risks in our supply chain, including by: Achieving 82% Roundtable on Sustainable Palm Oil (RSPO) physically certified sustainable palm oil, exceeding our interim target of 80% for 2019. We aim to achieve 100% by the end of 2020"
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            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, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            "Our target is to trace 100% of our palm oil to mills and plantations by the end of 2020." [...] "Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation."
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: RSPO

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO
            "Since our last palm oil report, we have continued to manage risks in our supply chain, including by: Achieving 82% Roundtable on Sustainable Palm Oil (RSPO) physically certified sustainable palm oil, exceeding our interim target of 80% for 2019. We aim to achieve 100% by the end of 2020"
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            What percent of the company's supply volume is verified using company verification systems?: 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, using an internal verification system.
            0.5/1
            Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: PepsiCo's Palm Oil Traceability Protocol
            "PepsiCo worked with external experts including Peterson to develop and implement PepsiCo’s Palm Oil Traceability Protocol. The Protocol was distributed to all direct suppliers along with a recommended reporting template, which requires the names of all palm oil and palm kernel oil mills, their location coordinates and the percentage of PepsiCo’s volume that is traceable to the mills."; "Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation."
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          "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."
        • 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: [...] no forest or peatland conversion 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?: World Resources Institute RADD (WRI RADD), Rimba Collective, Mexico Holistic Palm Program – “Un México Palmero Sustenable!”, OXFAM FAIR Partnership, Siak-Pelalawan Landscape Program (Riau, Indonesia), Coalition for Sustainable Livelihoods (Aceh and North Sumatra, Indonesia)

          What is the nature of that participation?: Providing support/advice/experience/expertise
          Pepsico reports on several collaborative actions to improve both environmental and social sustainability in agriculture commodity production, supporting smallholders, local stakeholders. 
        • 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, 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, that of external company, internationally recognised mechanism, etc.)?: Own Mechanism, guided by section 31 of United Nations Guiding Principles on Business and Human Rights

          Which issues does the grievance mechanism cover?: Social; Environmental

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No status and timeframes 
          " 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" Their grievance 'speak up' system can be accessed here: https://secure.ethicspoint.com/domain/media/en/gui/52943/index.html
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 451,100 metric tons
          "In 2020, our global purchase of palm oil was 451,100 metric tons (MT), of which palm kernel oil comprised approximately 3,700 MT, and sourced approximately 6,100 MT Independent Smallholder (ISH) Credits to recognize the efforts of smallholders."
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          What third-party verification is used?: RSPO

          What is the certified volume?: 485756 tonnes

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          In their 2019 ACOP, PepsiCo report that they used 485,756 tons of palm oil, of which 100% was RSPO-certified.
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          In the Supplier Code of Conduct they talk about audits: "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." In the same document it outlines its commitment to labour rights and FPIC, so it can be inferred that they monitor the labour rights and FPIC. : "Ensure that all land acquisitions (including leasing and utilization) meet International Finance Corporation (IFC) Performance Standards, including Free, Prior and Informed Consent." [...] "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. [...]"
        • 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
          From what country(ies) does the company source material?:  Malaysia, Indonesia, India, Colombia, Mexico, Ecuador, Guatemala, Panama, Brazil, Peru, Honduras, Thailand, Costa Rica, Nicaragua, Liberia

          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes
          Pepsico publishes a list of its direct suppliers and their supplying mills- "This supplier list is current as of June 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-one percent of our palm oil globally is currently supplied by the following 11 companies: AAK AB, Adani Wilmar Limited, Arma, Bunge Limited, Cargill Incorporated, COFCO Corporation, IFFCO International, Industrializados Oleofinos S.A.de C.V., Savola Group, 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 2020. 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
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          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 has seen suppliers improve their overall performance by 61% against the 2017 baseline, a 22% increase from 2018. This mechanism supports our efforts to build suppliers’ capability to deliver NDPE compliant palm oil, and to address non-compliances found in our supply chain"[...]"We also rely on other sources to assess risks, including: Engagement with direct and indirect suppliers; Feedback from assessments and audits conducted as part of our Sustainable Sourcing Program (SSP)"[...]"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: 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 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
      60/88
      • Commitment Strength
        18/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: FSC; PEFC
            "PepsiCo seeks to only purchase 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 is committed to realizing 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, 88% of our total volume was certified to one of the following standards in 2019: CERFLOR, CSA, FSC, PEFC, or SFI. [...] PepsiCo recognizes the forestry standards below as credible within their scope and requires 100% of our suppliers commit to utilizing an appropriate standard: CERFLOR, CSA, FSC, PEFC and SFI."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "PepsiCo seeks to only purchase 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 is committed to realizing 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, 88% of our total volume was certified to one of the following standards in 2019: CERFLOR, CSA, FSC, PEFC, or SFI. [...] PepsiCo recognizes the forestry standards below as credible within their scope and requires 100% of our suppliers commit to utilizing an appropriate standard: CERFLOR, CSA, FSC, PEFC and SFI."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "PepsiCo seeks to only purchase 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 is committed to realizing 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, 88% of our total volume was certified to one of the following standards in 2019: CERFLOR, CSA, FSC, PEFC, or SFI. [...] PepsiCo recognizes the forestry standards below as credible within their scope and requires 100% of our suppliers commit to utilizing an appropriate standard: CERFLOR, CSA, FSC, PEFC and SFI."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "PepsiCo seeks to only purchase 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 is committed to realizing 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, 88% of our total volume was certified to one of the following standards in 2019: CERFLOR, CSA, FSC, PEFC, or SFI. [...] PepsiCo recognizes the forestry standards below as credible within their scope and requires 100% of our suppliers commit to utilizing an appropriate standard: CERFLOR, CSA, FSC, PEFC and SFI."
        • Commitment to reduce use of virgin wood fibre
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Recycled content; Reduction of material inputs
            "Our sustainable packaging aspirations aim to: (i) Increase the use of recycled content or materials from renewable sources; (ii) Optimize packaging design to use the fewest materials necessary"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Our sustainable packaging aspirations aim to: (i) Increase the use of recycled content or materials from renewable sources; (ii) Optimize packaging design to use the fewest materials necessary"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Our sustainable packaging aspirations aim to: (i) Increase the use of recycled content or materials from renewable sources; (ii) Optimize packaging design to use the fewest materials necessary"
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "Our sustainable packaging aspirations aim to: (i) Increase the use of recycled content or materials from renewable sources; (ii) Optimize packaging design to use the fewest materials necessary"
        • Commitment to a traceable supply chain
          6/6
          • 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
            "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 undertaking since PepsiCo does not purchase direct raw material from the forest. For this reason, 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"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "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 undertaking since PepsiCo does not purchase direct raw material from the forest. For this reason, 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"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "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 undertaking since PepsiCo does not purchase direct raw material from the forest. For this reason, 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"
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "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 undertaking since PepsiCo does not purchase direct raw material from the forest. For this reason, 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"
      • Social Considerations
        18/18
        • 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

          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces
          "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
           "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
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          4/4
          Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          4/4
          Pepsico commits to the the inclusion of women through investing "$100 million by 2025 to provide 12.5 million women with essential resources for workforce readiness and in programs that empower women in the food system and farming".; They also address equality through "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
          Type of harm covered: Environmental harm
          "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, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "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)"
        • Commitment to resolve land conflicts
          Yes
          Commitment to resolve land conflicts
          Yes
          0/0
          "There is growing potential for land rights disputes as new plantations are established. While some laws are in place, enforcement is patchy and certification schemes are not well established, meaning that companies need to have policies in place and work on implementation on the ground. PepsiCo introduced a land rights policy in 2014 [...]" ; "zero tolerance for illegal activities in our supply chain and land displacements of any legitimate land tenure holders [...] 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
        24/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "for timber in our packaging, 88% of our total volume was certified to one of the following standards in 2019: CERFLOR, CSA, FSC, PEFC, or SFI." [...] "These findings are being addressed as we began renewing contracts starting in 2018; we have seen our percent certified material increase in identified areas of higher risk as we renew contracts from 5% to 82% in Russia, 19% to 33% in China, 0% to 100% in Thailand, as well as 10% to 100% in Brazil, comparing 2015 to 2019 volumes. We also added 11% certified material from Pakistan and 3% certified material in India"
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            (for 2.3 only) What percentage of the commodity volume in the company's supply chain can be traced to origin in low-risk jurisdictions?: 0%

            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 list out the countries of origin in their CDP report, along with the % of consumption/volume of their total tonnage. "Method: We 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."
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: CERFLOR, CSA, FSC, PEFC and SFI
            "for timber in our packaging, 88% of our total volume was certified to one of the following standards in 2019: CERFLOR, CSA, FSC, PEFC, or SFI."; "These findings are being addressed as we began renewing contracts starting in 2018; we have seen our percent certified material increase in identified areas of higher risk as we renew contracts from 5% to 82% in Russia, 19% to 33% in China, 0% to 100% in Thailand, as well as 10% to 100% in Brazil, comparing 2015 to 2019 volumes. We also added 11% certified material from Pakistan and 3% certified material in India"
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: European Organization for Packaging and the Environment

          What is the nature of that participation?: Providing support/advice/experience/expertise
          "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"
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Annually
          "Tools, methods, effectiveness: PepsiCo assesses 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, with results being reported 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 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"
        • 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, 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, that of external company, internationally recognised mechanism, etc.)?: Own Mechanism, guided by section 31 of United Nations Guiding Principles on Business and Human Rights

          Which issues does the grievance mechanism cover?: Social; Environmental

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No status and timeframes 
          " 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" Their grievance 'speak up' system can be accessed here: https://secure.ethicspoint.com/domain/media/en/gui/52943/index.html
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 1,281,130,484 kg
          In their 2020 CDP report, PepsiCo reports that it used 1,281,130,484 kg of timber products.
        • Report verified volumes of commodity
          80-99%
          4/6
          Report verified volumes of commodity
          80-99%
          4/6
          What is the certified volume?: 1,087,961,739kg

          What third-party verification is used?: FSC

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 85%
          In their 2020 CDP report, PepsiCo reports that 85% (1,087,961,739kg) of their timber products (Paper, Primary packaging, Secondary packaging, Tertiary packaging) is FSC certified.  
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          In the Supplier Code of Conduct they talk about audits: "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." In the same document it outlines its commitment to labour rights and FPIC, so it can be inferred that they monitor the labour rights and FPIC. : "Ensure that all land acquisitions (including leasing and utilization) meet International Finance Corporation (IFC) Performance Standards, including Free, Prior and Informed Consent." [...] "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. [...]"
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: unspecified 

          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: 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 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
      28/88
      • Commitment Strength
        4/20
        • Commitment to protect priority forests
          5/11
          • Commitment details
            Zero-gross deforestation
            5.3/8
            Commitment to protect priority forests
            Zero-gross deforestation
            5.3/8
            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat

            (For downstream soy companies only) Does the company commitment also explicitly apply to hidden/indirect soy?: No
            "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."; "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."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Indirect suppliers

            What is the rationale for any exclusions?: They only focus on direct suppliers 
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        14/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces

          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
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          4/4
          Gender equality in the supply chain
          Commitment to address the inclusion of women and ensure equality in commodity supply chains
          4/4
          Pepsico commits to the the inclusion of women through investing "$100 million by 2025 to provide 12.5 million women with essential resources for workforce readiness and in programs that empower women in the food system and farming".; They also address equality through "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
          Type of harm covered: Environmental harm
          "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, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "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)"
        • Commitment to resolve land conflicts
          Yes
          Commitment to resolve land conflicts
          Yes
          0/0
          "There is growing potential for land rights disputes as new plantations are established. While some laws are in place, enforcement is patchy and certification schemes are not well established, meaning that companies need to have policies in place and work on implementation on the ground. PepsiCo introduced a land rights policy in 2014 [...]" ; "zero tolerance for illegal activities in our supply chain and land displacements of any legitimate land tenure holders [...] 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
        9/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across 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, 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

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No status and timeframes 

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own Mechanism, guided by section 31 of United Nations Guiding Principles on Business and Human Rights
          " 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" Their grievance 'speak up' system can be accessed here: https://secure.ethicspoint.com/domain/media/en/gui/52943/index.html
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 30,000 tons
          In their website's deforestation policy they say: "PepsiCo procures approximately 30,000 metric tons of soybean oil annually."
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          In the Supplier Code of Conduct they talk about audits: "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." In the same document it outlines its commitment to labour rights and FPIC, so it can be inferred that they monitor the labour rights and FPIC. : "Ensure that all land acquisitions (including leasing and utilization) meet International Finance Corporation (IFC) Performance Standards, including Free, Prior and Informed Consent." [...] "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. [...]"
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • 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 engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
           "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
    13/20
    Avg. score
  • Reporting and Implementation
    24/50
    Avg. score
  • Social considerations
    17/18
    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.