Pepsico

PEPSICO’S NEW ESG SUMMARY OFFERS FIRST LOOK AT PROGRESS TOWARD INDUSTRY-LEADING PEPSICO POSITIVE GOALS New Delhi, India July 7, 2022 – PepsiCo, Inc. (NASDAQ:PEP) today published its first Environmental, Social, and Governance (ESG) Summary since the launch of PepsiCo Positive (pep+), a strategic end-to-end business transformation with sustainability and human capital at the center of how the company will create growth and value. The 2021 ESG Summary – an evolution from PepsiCo’s prior Sustainability Reports – highlights how the company is leveraging its brands, people and scale to chart a new course to drive positive action for the planet and people. It also highlights progress made on industry-leading commitments. pep+ is embedded in every part of PepsiCo’s business and the 2021 ESG Summary details initial progress and real-world examples across three pillars – Positive Agriculture, Positive Value Chain and Positive Choices. Highlights include: Positive Agriculture o Helped to spread the adoption of regenerative agriculture practices across more than 345,000 acres – progress toward its goal of seven million acres, the approximate equivalent of PepsiCo’s agricultural footprint, by 2030. o Supported the livelihoods of female farmers and rural communities via initiatives such as the $20 million USAID partnership to develop women-led enterprises and the $2 million Next Generation Agriculture Fund with the Inter-American Development Bank (IADB), to demonstrate the impact of gender-smart solutions along our agricultural supply chains in Dominican Republic, Ecuador and Guatemala. These programs mark initial action towards a new pep+ goal to improve the livelihoods of more than 250,000 people in PepsiCo’s agricultural supply chain and communities, including by economically empowering women. o In 28 demonstration farms in India, we saw average yield improvements of almost 7% and reduced GHG emissions by more than 7%, resulting in farmer income increase of $55 per acre on average yielded value for farmers, the environment and the business (percent increases observed in a control plot vs a demonstration plot). o PepsiCo is working with USAID in West Bengal to empower women farmers and expand their horizons by educating them on sustainable farming practices, best irrigation, and crop rotation techniques, financial literacy, entrepreneurship, etc. through training programs. o In partnership with USAID, PepsiCo in India has trained more than 1000 women in potato agronomy and sustainable farming practices since 2019 with a goal of reaching 500 additional women farmers in 2022 Positive Value Chain o Reduced Scope 1 and 2 emissions by 25 percent from a 2015 baseline, with more than 70 percent of global electricity needs in direct operations now met by renewable sources. In 2021, Scope 3 emissions – which account for 93 percent of the company’s emissions – increased by 5 percent[1] from a 2015 baseline, due largely to unprecedented business growth. o Improved operational water-use efficiency by 18 percent in high water-risk areas from a 2015 baseline, against a target of 25 percent by 2025[2] and replenished 34 percent of water used in operations to local watersheds[3] in 2021– more than 6.1 billion liters of water. In addition, PepsiCo continued to advance safe water access globally to more than 68 million people since 2006 (Of this, over 27 million beneficiaries are from India.), putting the company more than halfway to its 2030 goal of 100 million people. o PepsiCo has implemented N-Drip's technology with farmers in India and saw improved crop yields, reduced fertilizer usage, with an average reduction of 39 percent water consumption compared to flood irrigation in states of Uttar Pradesh, Punjab, and Rajastha