PepsiCo Inc.
PEP.US | Manufacture of soft drinks; production of mineral waters and other bottled waters
PepsiCo, Inc. is a global beverage and food company. The company's portfolio includes a wide range of brands, including Pepsi-Cola, Mountain Dew, Gatorade, Lay's, Doritos, and Quaker Oats. PepsiCo operates through various segments, including Frito-Lay North America, Quaker Foods North America, Pepsi...Show More
Better Health for All
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PepsiCo's product portfolio shows a significant portion of products with negative health consequences. Only 28% of its distinct products have a Health Star Rating (HSR) of 3.5 stars or more, with an average sales-weighted HSR of 2.2.
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An estimated 75% of PepsiCo's 2021 US retail sales were from products not classified as healthier, with the majority of sales derived from categories like Carbonates (mean HSR 1.1) and Savoury Snacks (mean HSR 2.7).
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The company faces lawsuits alleging deceptive marketing of products, including Gatorade protein bars with 29 grams of sugar,
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and accusations of marketing ultra-processed foods as addictive and targeting children, allegedly contributing to health issues like Type 2 Diabetes.
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Investors have also urged evaluation of artificial sweeteners like aspartame due to health concerns.
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These allegations indicate significant negative health externalities and issues with risk transparency and addiction mitigation.
Despite these concerns, PepsiCo has made efforts in product reformulation, with 67% of its beverage portfolio volume containing fewer than 100 Calories from added sugars per 12 oz. serving,
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and 77% of its convenient foods portfolio volume not exceeding 1.3 milligrams of sodium per Calorie,
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surpassing its 2025 targets for sugar and sodium reduction in 2025.
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PepsiCo also phased out Brominated Vegetable Oil (BVO) by early 2020,
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ahead of an FDA revocation of its allowance,
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and has developed PepsiCo Nutrition Criteria to guide product innovation and reformulation.
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PepsiCo does not hold healthcare-related patents or conduct clinical trials.
Fair Money & Economic Opportunity
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PepsiCo is a global beverage and food company, not a financial institution. As such, the KPIs under "Fair Money & Economic Opportunity" are not applicable to its core business. The company does not offer lending or deposit services to consumers, nor does it manage customer finance data or operate financial service access points. Therefore, all KPIs, including underserved_client_share, pricing_fairness, exploitative_fee_exposure, inclusion_initiatives, data_accessibility, fair_lending_compliance, wealth_building_outcome, profit_reinvestment, financial_literacy_initiatives, debt_burden_ratio, geographic_inclusion, and product_simplicity, score 0 as per their respective "Not applicable" or "No..." rubric tiers. While PepsiCo engages in various philanthropic and economic empowerment programs, these do not involve the provision of financial products or services that would allow for scoring against the specific quantitative metrics of this rubric.
Fair Pay & Worker Respect
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PepsiCo has faced four substantiated labor-law violations in the past three years. These include a $12.75 million settlement in 2023 for wage and hour violations
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, an OSHA finding in 2023 against Pepsi Guam Bottling for willfully violating safety standards
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, an $18,000 OSHA penalty in 2024 for Rolling Frito-Lay Sales, LP
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, and a $40,000 OSHA penalty in 2025 for EPIC ENTERPRISES, INC.
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Fair Trade & Ethical Sourcing
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PepsiCo reported 58% sustainable sourcing for its key ingredients in 2023, which included 99% RSPO-certified palm oil and 100% Bonsucro-certified cane sugar.
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In 2023, the company conducted 885 on-site or virtual audits with tier-1 suppliers across 70 countries using the SMETA 4-Pillar Audit Protocol or equivalent.
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PepsiCo enhanced its risk monitoring and assessment methodology in 2023 and provided open-access online training to its strategic, tier-1 direct suppliers on its Supplier Code of Conduct.
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Targeted training on forced labor and ethical recruitment was delivered to over 130 direct suppliers in high-risk countries.
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The company also launched Combating Modern Slavery training for 2,000 employees and co-sponsored initiatives in Thailand, Malaysia, and the U.S. to improve responsible recruitment and strengthen adherence to labor laws, aiming to minimize forced and child labor risks.
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PepsiCo addressed child labor claims, asserting high standards for suppliers and compliance with regulations.
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Honest & Fair Business
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PepsiCo has a formal whistle-blower policy that obligates employees to report violations through channels including managers, Human Resources, Global Compliance & Ethics, or the Law Department.
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A separate grievance mechanism is available for workers in the agriculture supply chain.
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However, the provided evidence does not include information regarding independent investigation processes for these reports.
Kind to Animals
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PepsiCo maintains a comprehensive policy not to conduct animal tests on its food and beverage products or ingredients, except when required by law, effectively replacing all non-regulatory-required tests with animal-free methods.
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In 2024, the company ceased funding animal experiments at the University of Wisconsin–Madison Food Research Institute, securing commitments to divert contributions towards non-animal research, which prompted the institute to change its sponsorship policy and establish a fund for such alternatives.
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Regarding sourcing, 70% of PepsiCo's global egg spend was cage-free in 2024, with 100% achieved in the U.S. by 2020, Europe in 2024, and Canada in early 2025, targeting 100% globally by the end of 2025.
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For wildlife conservation, PepsiCo Beverages North America and PepsiCo Foods North America awarded over $1.6 million to Ducks Unlimited, leading to the restoration or construction of 2,296 acres of wetlands, prairie, and riverine habitat, and 18 miles of river habitat across California, Kansas, and Texas.
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Wetlands in Mexico also provide habitat for migratory waterfowl and marsh birds due to PepsiCo's wastewater treatment system upgrades.
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No War, No Weapons
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In 2022, following the Russian invasion of Ukraine, PepsiCo continued essential item sales in Russia, leading Ukraine to label the company a 'war sponsor'.
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The company secured military contracts worth $217 million with the US Department of Defense in 2010 for supplying beverages.
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Despite these associations, PepsiCo has no exposure to controversial or banned weapons; its past acquisition of military vessels involved decommissioned assets transferred for scrap.
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PepsiCo's subsidiary, SodaStream, conducts annual human-rights due diligence through surveys of all in-scope suppliers for conflict minerals in conflict-affected areas, with mitigation plans disclosed for non-conformant smelters.
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These due diligence measures are designed to conform to OECD Guidance, aligning with UN Guiding Principles on Business and Human Rights.
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PepsiCo is a participant in the UN Global Compact and integrates UNGP into training, with its Human Rights Office conducting training sessions on human rights due diligence and forced labor prevention.
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Planet-Friendly Business
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PepsiCo reported total Scope 1, 2, and 3 greenhouse gas emissions of approximately 58 million metric tons in 2023.
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In 2024, 89% of the company’s direct global electricity needs were met with renewable electricity.
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Water withdrawal across all company-owned operations was approximately 74 million cubic meters in 2024, with 24% sourced from regions of high water-risk.
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Based on 2024 net revenue of nearly $92 billion, this equates to approximately 804.35 cubic meters per $1 million revenue.
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The company used about 15% recycled plastic in primary plastic packaging in key markets in 2024.
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Approximately 90% of high-risk commodities sourced in company-owned and -operated activities were deforestation-free in 2024.
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Respect for Cultures & Communities
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PepsiCo responded to a 2015 cultural appropriation incident by apologizing and pulling the controversial advertisement.
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Since 2021, 12 PepsiCo employees have participated in a six-week cultural immersion program with Indigenous organizations
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, which represents less than 10% of its global workforce.
Safe & Smart Tech
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PepsiCo is currently facing a lawsuit alleging a violation of Illinois' Biometric Information Privacy Act for collecting employees' voiceprints without proper consent
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, indicating a potential gap in data governance and regulatory compliance. Despite this, the company commits to robust data protection through a Global Privacy Policy based on internationally accepted data privacy standards
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, with dedicated regional privacy professionals supporting compliance efforts
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. Employees receive regular training on data privacy
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. PepsiCo has partnered with Stanford's Institute for Human-Centered AI to advance research and establish standards for ethical AI applications
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, focusing on responsible AI practices
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. A senior executive also advocates for increased regulation to ensure ethical AI deployment
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.
Zero Waste & Sustainable Products
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In 2023, PepsiCo diverted 98% of its total waste from landfill in its manufacturing and warehouse operations.
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In 2024, 93% of its primary and secondary packaging in key markets was designed to be reusable, recyclable, or compostable.
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The company used 15% recycled plastic in its primary plastic packaging in key markets in 2024.
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Between 2023 and 2024, PepsiCo achieved a 5% reduction in the absolute tonnage of virgin plastics in primary packaging in key markets
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, though virgin plastic usage increased from 2020 to 2023.
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The company has implemented over 20 waste reduction initiatives, including an End-to-End Materials Waste Program, a biogas program, and various collection and recycling collaborations.
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PepsiCo's pep+ initiative targets circularity in the value chain, focusing on lightweighting, less-packaging formats, reuse models, and alternative materials.
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The company has set several waste reduction targets, including achieving a 99% waste diversion rate by 2025
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, an average 2% year-over-year reduction in virgin plastics through 2030
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, 40% or greater recycled content in plastic packaging by 2035
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, and 97% or greater reusable, recyclable, or compostable packaging by design by 2030.
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