PepsiCo Doubles Down on Climate Goal and Pledges Net-Zero Emissions by 2040

• With agriculture accounting for approximately one quarter of worldwide GHG emissions and one third of PepsiCo's emissions, PepsiCo will further scale sustainable agriculture and regenerative practices that help lead to emissions reduction and sequestration, as well as improved soil health and biodiversity, decreased deforestation, and increased productivity for farmers. This includes expanding the company's global network of Demonstration Farms, which provide localized training and tools to implement sustainable practices and improve livelihoods.
• PepsiCo will lower GHG emissions impact with a continued drive to reduce virgin plastic use and increase recycled content in its packaging.
• Through the implementation and upgrading of environmentally sustainable manufacturing, warehousing, transportation and distribution sites, similar to the Frito-Lay North America facility in Modesto, Calif., the company aims to maximize efficiency in its supply chain, while also adopting zero- and near-zero-emission technologies.  
• PepsiCo is implementing innovative business processes that enable GHG emissions mitigation, such as its "Sustainable from the Start" program, which puts environmental impact decision-making at the heart of product design. Additionally, two internal carbon pricing programs, one aimed at eliminating the carbon impact of employee business air travel and another at building carbon impact into carrier selection for third party logistics in North America, will help further reinforce climate considerations in PepsiCo's business decisions.
• From Lay's to Pepsi and Quaker to Tropicana, more and more PepsiCo brands are being made using electricity from a mix of renewable energy sources.
• In 2020, PepsiCo met its target to source 100% renewable electricity in the U.S. and set a new target to source 100% renewable electricity across all of its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040.
• PepsiCo is also expected to achieve 100% renewable electricity in Mexico and Australia in 2021, which will bring the total number of countries fully sourcing renewable energy in PepsiCo's direct operations to 15 and address approximately 60% of its direct global electricity needs through renewable sources. Twelve countries in PepsiCo's Europe sector already source 100% renewable electricity.
• PepsiCo continues to support the growth of new renewable energy generation capacity through power purchase agreements. The company has finalized agreements with renewable energy company Ørsted for two new wind projects in Texas and Nebraska that will address nearly a quarter of PepsiCo's total U.S. electricity needs.

"Our climate ambition is at the very heart of accelerating our global sustainability progress, and we are using our scale and reach to build a more sustainable and regenerative global food system," said Jim Andrew, Chief Sustainability Officer, PepsiCo. "It's long overdue that companies move beyond just minimizing their environmental impact, they must actively work to improve and regenerate the planet."

PepsiCo was recently named to CDP's Climate A List and is also engaged in multiple partnerships and coalitions aimed at driving action on climate change, including the One Trillion Trees initiative, The Climate Group's RE100, Renewable Energy Buyers Alliance, We Are Still In and the U.S. Climate Leadership Council. For more on our collaborative work to address climate change, visit our ESG Topics Climate page.

For More Information: pepsicomediarelations@pepsico.com

About PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business.  For more information, visit www.pepsico.com.

Cautionary Statement

This release contains statements reflecting our views about our future performance that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as "aim," "anticipate," "believe," "drive," "estimate," "expect," "goal," "intend," "may," "plan," "project," "strategy," "target" and "will" or similar statements or variations of such terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such statements, including the impact of the spread of COVID-19; future changes in demand for PepsiCo's products, as a result of changes in consumer preferences or otherwise; changes in laws related to the use or disposal of plastics or other packaging of PepsiCo's products; changes in, or failure to comply with, applicable laws and regulations; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of labeling or warning requirements on PepsiCo's products; PepsiCo's ability to compete effectively; political conditions, civil unrest or other developments and risks in the markets where PepsiCo's products are made, manufactured, distributed or sold; the ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption; increased costs, disruption of supply or shortages of raw materials and other supplies; water scarcity; business disruptions; damage to PepsiCo's reputation or brand image; loss of, or a significant reduction in sales to, any key customer; disruption to the retail landscape, including rapid growth in the e-commerce channel and hard discounters; climate change, or legal, regulatory or market measures to address climate change; and other factors that may adversely affect the price of PepsiCo's publicly traded securities and financial performance. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE PepsiCo, Inc.