PepsiCo, Inc. | Interfaith Center on Corporate Responsibility

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<strong>Company:</strong>
<p>PepsiCo, Inc.</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Environment, Food Justice </p>
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<strong>Focus Area:</strong>
<p>Biodiversity </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>WHEREAS</strong>: PepsiCo depends on reliable agricultural and transportation systems to manufacture and distribute all its products. The Company sources approximately 50 ingredients from over 60 countries to manufacture its products in 690 company-owned and third-party manufacturing facilities around the world.1<br><br>Increasing disruption of natural systems from climate change and other human activity is reducing the reliability of agricultural production and increasingly impacting supply chains. Severe weather events, drought, and wildfires caused over $21B of crop losses in the US in 2023.2 Transport networks have also been disrupted, with wildfires, hurricanes, and floods shutting down key North American and Asian shipping systems in 2024.3 A report by Bloomberg NEF documents impacts on ten companies totaling $83 billion linked to failures to properly manage their nature-related risks.4<br><br>PepsiCo acknowledges its dependence on natural systems:<br><br>Our business is inextricably linked to the health of the ecosystems that support the growth of crops that ultimately end up in our foods and drinks… Without a consistent supply of agricultural crops and ingredients, we wouldn’t be able to make our foods and drinks and meet the needs of our customers and consumers.5<br><br>Investors and regulators increasingly recognize the materiality of nature and biodiversity risks.<br><br>• Investors with nearly $30T in assets under management are participating in Nature Action 100, an initiative seeking greater management of corporate nature impacts and risks.6<br>• Over 700 organizations representing $9T in market capitalization and $22T in assets under management have adopted the assessment and disclosure recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).7<br>• In November 2025, the International Sustainability Standards Board voted unanimously to begin the standard-setting process for nature-related disclosures.8</p>
<p>PepsiCo discloses a risk assessment and mitigation prioritization scheme for climate change.9 It has not, however, undertaken and disclosed a similar systematic assessment of impacts and risks related to its dependence on nature. A systematic assessment would identify hotspots and provide guidance for risk-mitigating activities. Without such a comprehensive assessment to inform its policies and programs, PepsiCo may misallocate resources or fail to plan for contingencies that could have been foreseen.</p>
<p>RESOLVED: Shareholders request that PepsiCo prepare a public report on its approach to biodiversity and nature, at reasonable expense and excluding proprietary information, including assessing the extent to which the company’s supply chains and operations affect or are vulnerable to biodiversity loss.</p>
<p>Supporting Statement: In completing this assessment and report, proponents defer to management’s discretion but recommend considering the guidance of standard-setting bodies such as the Taskforce on Nature-related Financial Disclosures.</p>
<p>———-</p>
<p>1 https://edge.sitecorecloud.io/pepsico-5v9wci20/media/Files/esg-topics/2024-esg-summary-esg-performance-metrics.pdf<br>2 https://www.fb.org/market-intel/major-disasters-and-severe-weather-caused-over-21-billion-in-crop-losses-in-2023<br>3 https://e360.yale.edu/features/how-climate-change-is-disrupting-the-global-supply-chain; https://octopart.com/pulse/p/extreme-weather-becomes-new-supply-chain-challenge; https://www.freightwaves.com/news/weathers-wrath-supply-chains-reel-from-2024s-extreme-events<br>4 https://assets.bbhub.io/professional/sites/24/BNEF_Nature-Risk.pdf<br>5 https://edge.sitecorecloud.io/pepsico-5v9wci20/media/Files/esg-topics/2024-esg-summary-esg-performance-metrics.pdf<br>6 https://www.natureaction100.org/media/2025/10/Nature-Action-100-Status-Report-Oct.-2025.pdf<br>7 https://tnfd.global/issb-decision-on-nature-related-standard-setting-drawing-on-tnfd-framework/<br>8 https://www.ifrs.org/news-and-events/news/2025/11/issb-welcomes-tnfd-support-nature-related-disclosure/<br>9 https://www.pepsico.com/esg-topics/climate-change#approach:~:text=Risk%20management%20and,help%20us%20to%3A</p>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Giovanna Eichner</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Green Century Capital Management, Inc.</span></div>
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<strong>Focus Area:</strong>
<p>Agricultural Sourcing / Supply Chain, Pesticides/Herbicides, Worker Rights, Health & Safety </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>WHEREAS:  </strong>Industrial agriculture applies over one billion pounds of synthetic pesticides annually to farms, directly threatening the resilience and yield stability of agricultural supply chains.[1] Pesticides decrease soil fertility by killing soil microorganisms vital for nutrient, water, and soil retention.[2] Soil degradation and erosion reduce food security, imposing an estimated loss of $8 billion annually to global GDP.[3] These losses become more material as climate change increases the frequency, and impact to global food companies, of droughts, floods, storms, and heatwaves.  </p>
<p>Agricultural pesticide use also causes long-term health impacts to farm workers and fenceline communities, including asthma, cancer, and birth defects, among others, while also resulting in the acute poisoning of 25 million farm workers annually.[4] Further, pesticide use directly harms biodiversity, including pollinators critical to 35% of crop production, and contributes to air and water pollution.[5] </p>
<p>In contrast, regenerative agriculture is a farming system that reduces the mass use of synthetic pesticides and fertilizers and includes reduced tillage, crop rotation, cover cropping, and natural pest management. These practices collectively preserve soil health and retain topsoil, while reducing impacts to humans and the environment.[6] </p>
<p>The Rodale Institute reports that regenerative agriculture can sequester more carbon than is emitted annually.[7] Failure to address pesticide dependency, however, diminishes regenerative farming’s potential to sequester carbon and deliver measurable climate and financial returns.[8] </p>
<p>PepsiCo has a goal to spread the adoption of regenerative agriculture and seeks continuous improvements in agricultural practices that minimize pesticide use.[9] However, the company does not disclose if or how it tracks, monitors, or reports pesticide use reduction by its suppliers. This represents an important blind spot for the company and raises the potential for claims of greenwashing.   </p>
<p>In contrast, PepsiCo’s peers are measuring and/or reporting pesticide reduction achieved through their regenerative agriculture programs: </p>

Lamb Weston measures and publicly reports annual pesticide reduction data as part of its regenerative agriculture program, reflecting progress toward its pesticide reduction goal.[10]
Conagra measures and publicly reports the amount of pesticides avoided in its supply chains through its regenerative agriculture program.[11]
McCain Foods measures its regenerative potato growers’ pesticide use through its Regenerative Agriculture Framework Assessment.[12] 

<p>In a competitive marketplace that increasingly demands clean food, greenhouse gas reduction, and reduced human and environmental harm, measuring and disclosing supplier use of pesticides as part of a successful regenerative agriculture program can reduce risk for shareholders and our Company, while minimizing harm to stakeholders and ecosystems. </p>
<p><strong>BE IT RESOLVED:  </strong>Shareholders request that PepsiCo issue a report, at reasonable expense and omitting proprietary information, disclosing if and how the Company can incorporate pesticide use data in its regenerative agriculture program disclosures. </p>
<p>[1] https://ehjournal.biomedcentral.com/articles/10.1186/s12940-019-0488-0 </p>
<p>[2] https://pmc.ncbi.nlm.nih.gov/articles/PMC2984095 </p>
<p>[3] https://www.sciencedirect.com/science/article/pii/S0264837718319343 </p>
<p>[4] https://pmc.ncbi.nlm.nih.gov/articles/PMC2946087/ </p>
<p>[5] https://newsarchive.berkeley.edu/news/media/releases/2006/10/25_pollinator.shtml </p>
<p>[6] https://regenerationinternational.org/why-regenerative-agriculture/ </p>
<p>[7] https://rodaleinstitute.org/wp-content/uploads/rodale-white-paper.pdf</p>
<p>[8] https://pmc.ncbi.nlm.nih.gov/articles/PMC2984095; https://www.csuchico.edu/regenerativeagriculture/blog/soil-microbes-carbon-sequestration.shtml; https://soilhealthinstitute.org/news-events/nationwide-study-on-30-u-s-farms-shows-positive-economic-impact-of-soil-health-management-systems/</p>
<p>[9] https://www.pepsico.com/esg-topics/agriculture; https://www.pepsico.com/esg-topics/pesticides-and-other-agrochemicals</p>
<p>[10] https://www.lambweston.com/content/dam/lamb-weston/website/en-us/pdf/sustainability/LambWeston_2023_ESG.pdf, p.43 </p>
<p>[11] https://www.conagrabrands.com/citizenship-reports/conagra-brands-citizenship-report-2023, p.21</p>
<p>[12] https://www.mccain.com/media/4594/mccain_regenag_framework_2024.pdf </p>

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<div class=”views-field views-field-nothing”><span class=”field-content”> Cailin Dendas</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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<strong>Focus Area:</strong>
<p>Chemicals/Toxins, Obesity </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>RESOLVED:</strong> Shareholders request that PepsiCo, at reasonable cost and omitting proprietary information, report to shareholders on the processes and policies, above and beyond legal compliance, to assess and manage risks and/or hazards to human health, the company’s reputation and its financial position associated with chemicals and additives in its food and beverage products.</p>
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<p><strong>SUPPORTING STATEMENT:</strong></p>
<p>Weak federal regulations concerning Generally Recognized as Safe (GRAS) substances enable the food industry to self-regulate and determine whether an ingredient is GRAS without notifying the Food and Drug Administration (FDA) of the company’s determination or the research underlying its determination that the substance is safe.[1] According to a 2022 analysis, nearly 99 percent of all food chemicals introduced since 2000 were approved by the food and chemical industry, not the FDA.[2]</p>
<p>Approximately 40 percent of PepsiCo’s food and beverage portfolio contains synthetic dyes,[3] which are petroleum-based compounds that offer no nutritional value, are primarily used in low-nutritional products, and are added purely for visual appeal.[4] Evidence demonstrates the dyes are associated with neurobehavioral issues in children, including hyperactivity[5] and adverse behavioral outcomes.[6]</p>
<p>PepsiCo has made limited commitments in phasing out these chemicals[7] and no commitment to meeting the Administration’s goal of phasing out all synthetic dyes by the end of 2027.[8] PepsiCo has only committed to re-launching Tostitos and Lays products without color additives by the end of 2025, while many of the Company’s competitors have made commitments to phase the chemicals out of their entire portfolios by the end of 2027.[9]</p>
<p>Historically, PepsiCo tends to be reactive versus proactive when safety issues arise, raising concerns about the Company’s ability to effectively and proactively manage these risks. </p>
<p>For example, PepsiCo did not commit to remove brominated vegetable oil until 2014,[10] despite the chemical’s ban in several European countries since the 1970s due to its health harms.[11] In 2012, Pepsi pledged to remove a toxic chemical in its caramel coloring but testing post-commitment showed that drinking two Pepsis a day exceeded California’s regulated safety limit for the toxin.[12]</p>
<p>Consumers are increasingly concerned, as demonstrated by litigation accusing the Company of false claims regarding the absence of artificial flavors and preservatives in its popular Smartfoods brand.[13] In response to different litigation, PepsiCo reformulated some of their products in 2007 to remove benzene, a known carcinogen.[14]</p>
<p>States are seeking to address the GRAS regulatory loophole by banning food chemicals that pose potential harm to human health. As of 2025, 20 states have introduced and/or passed legislation targeting food chemicals.[15] The federal government is also advocating for the food industry to reduce health-harming substances in their products.[16]</p>
<p>The lack of transparency regarding Coca-Cola’s risk assessment and management approach, combined with growing regulatory pressures, litigation, and consumer demand for ingredient information, creates risks for shareholders and our Company. </p>
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<p>[1] https://ajph.aphapublications.org/doi/full/10.2105/AJPH.2024.307755?role=tab</p>
<p>[2] https://www.ewg.org/news-insights/news/2022/04/ewg-analysis-almost-all-new-food-chemicals-greenlighted-industry-not-fda</p>
<p>[3] https://apnews.com/article/pepsi-removing-artificial-colors-gatorade-cheetos-5d9cfbee948be51f2339b8410ea55341 </p>
<p>[4] https://www.cspi.org/chemical-cuisine/artificial-colorings-synthetic-food-dyes </p>
<p>[5] https://www.sciencedirect.com/science/article/pii/S2772529424001255 </p>
<p>[6] https://oehha.ca.gov/risk-assessment/press-release/report-links-synthetic-food-dyes-hyperactivity-and-other-neurobehavioral-effects-children </p>
<p>[7] https://infogram.com/synthetic-dyes-corporate-commitment-tracker-1h0n25owglewl4p </p>
<p>[8] https://www.axios.com/2025/04/23/food-dye-ban-rfk-pepsi?utm_source </p>
<p>[9]  https://www.fda.gov/food/color-additives-information-consumers/tracking-food-industry-pledges-remove-petroleum-based-food-dyes </p>
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<p>[10] </p>
<p>https://www.npr.org/sections/thesalt/2014/05/06/310096596/no-more-bromine-coke-pepsi-drop-controversial-ingredient </p>
<p>[11] https://www.chemistryworld.com/news/fda-bans-use-of-brominated-vegetable-oil-in-food-and-drink/4019765.article</p>
<p>[12] https://toxicfreefuture.org/blog/pepsi-loses-the-safer-pepsi-challenge/ </p>
<p>[13] https://topclassactions.com/lawsuit-settlements/lawsuit-news/smartfoods-class-action-claims-popcorn-products-falsely-advertise-no-artificial-flavors-preservatives/ </p>
<p>[14] https://www.beveragedaily.com/Article/2007/05/15/coca-cola-settles-in-benzene-lawsuit/?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright</p>
<p>[15] https://www.ewg.org/news-insights/news/2025/10/interactive-map-tracking-state-food-chemical-regulation-us</p>
<p>[16] https://www.whitehouse.gov/wp-content/uploads/2025/05/MAHA-Report-The-White-House.pdf </p>

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<div class=”views-field views-field-nothing”><span class=”field-content”> Laura Krausa</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>CommonSpirit Health</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Peg Groth</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Sisters of the Sorrowful Mother</span></div>
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<strong>Focus Area:</strong>
<p>Human Rights </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>Shareholder Proposal: Report on Human Rights Oversight in Supply Chains. </strong></p>
<p><strong>Resolved:</strong><br>Shareholders of PepsiCo Inc. (“PepsiCo”) request that the Board of Directors issue a report, at reasonable cost and omitting proprietary information, assessing PepsiCo’s effectiveness in upholding its human rights standards across supply chains and international franchise and bottling operations.</p>
<p><strong>Whereas:</strong><br>As a global food and beverage company and major agricultural buyer, PepsiCo’s supply chains expose it to significant human rights risks that are financially and operationally material. PepsiCo’s Supplier Code of Conduct currently applies only to tier 1 suppliers, though it pledged to extend the Code’s principles to all franchisees and joint ventures by 2025.[1]</p>
<p>PepsiCo’s most recent Human Rights Assessment identified forced labor and poor employment conditions as salient risks in Latin America and Southeast Asia, across high-risk commodities such as cane sugar and palm oil. Migrant, contract, and women workers are particularly vulnerable to abuses.[2] Despite its policy commitment to ensure compliance with its Supplier Code of Conduct across its global supply chain, PepsiCo has provided investors with no evidence of oversight or remediation across franchisees and high-risk commodities. The company also participates in multi-stakeholder initiatives aimed at addressing human rights across value chains but has not reported the impact of these initiatives.[3]</p>
<p>Recent news reports documented labor rights abuses, including forced labor, child labor, and gender-based exploitation in India,[4] a growth market for PepsiCo. Some of these abuses were linked to Varun Beverages, PepsiCo’s largest international franchised bottler, responsible for roughly 90 percent of PepsiCo’s beverage sales in India. A 2025 Bombay High Court ruling confirmed human rights violations among sugarcane cutters, underscoring systemic risks in PepsiCo’s Indian supply chain.[5]</p>
<p>In 2025, reports surfaced of labor rights abuses on Malaysian palm oil plantations supplying PepsiCo and others, including subminimum wages, unpaid overtime, and inadequate worker protections.[6]  Investigations also found PepsiCo’s palm oil suppliers sourcing from deforested Indigenous land in Latin America, showing human rights risks extend across commodities.[7]</p>
<p>These systemic risks are material given PepsiCo’s expansion in high-risk regions. In 2024, its Africa, Middle East & South Asia division generated $6.2 billion net revenue—with India delivering double-digit growth—while Latin America contributed $8.8 billion.[8] Systemic labor risks pose significant financial, operational, and reputational threats to supply chains,[9] compounded by emerging global due diligence regulations that heighten legal and regulatory exposure.</p>
<p>Shareholders therefore require transparency to assess whether PepsiCo’s human rights oversight is robust and consistently enforced, enabling evaluation of how effectively the company manages material risks that could disrupt operations and diminish long-term value.<br> </p>
<p>[1] https://edge.sitecorecloud.io/pepsico-5v9wci20/media/Files/esg-topics/2024-esg-performance-metrics.pdf</p>
<p>[2] https://edge.sitecorecloud.io/pepsico-5v9wci20/media/Files/esg-topics/2022-PepsiCo-Salient-Human-Rights-Issues-Update.pdf</p>
<p>[3] https://www.nytimes.com/2024/07/30/world/asia/sugar-human-rights-bonsucro-india-hysterectomies.html</p>
<p>[4] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html</p>
<p>[5] Bombay High Court Orders Maharashtra to Enhance Welfare for Sugarcane Cutters – Law Trend</p>
<p>[6] Malaysia: Indonesian workers on palm oil plantations allegedly supplying multinational brands report rights violations, incl. poverty wages, gender discrimination & precarious conditions; incl. cos. responses & non-response – Business & Human Rights Resource Centre</p>
<p>[7] https://www.thebureauinvestigates.com/stories/2024-04-18/snack-giant-pepsico-sourced-palm-oil-from-razed-indigenous-land</p>
<p>[8] PepsiCo 2024 10-K Filing-2025-02-03-18-25</p>
<p>[9] Labor: A critical component of supply chains under growing pressure | S&P Global</p>

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<div class=”views-field views-field-nothing”><span class=”field-content”> Caroline Boden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Mercy Investment Services</span></div>
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<strong>Focus Area:</strong>
<p>Human Rights </p>
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<strong>Status:</strong>
<p>Withdrawn – Dialogue/Tactical</p>
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<h2>Resolution Text</h2>
<p>RESOLVED: Shareholders request the Board of Directors commission an independent, third-party report, at reasonable cost and omitting proprietary or legally privileged information, assessing the effectiveness of the Company’s implementation of its Human Rights Policy (HRP) for operations in conflict-affected and high-risk areas (CAHRA).1 </p>
<p>WHEREAS: PepsiCo, Inc. (Pepsi) commits to using the United Nations Guiding Principles on Business and Human Rights (UNGPs) to prevent and mitigate human rights risks.2 The UNGPs call on companies to conduct heightened human rights due diligence (HRDD) in CAHRA due to widespread human rights abuses and violations of national and international law.3 The International Finance Corporation reports that companies in CAHRA “face business risks that are much greater than those in other emerging markets,” including destruction of assets, deaths and injuries, and supply-chain disruptions.4 The Thinking Ahead Institute found that 84 percent of the world’s 26 largest investors named “geopolitical confrontation” as a top three systemic risk.5 The European Union’s (EU) recently passed mandatory HRDD6 legislation and international accounting standards bodies (e.g., SASB, IFRS), call on companies to report material human rights risks.7 In one specific example, after the illegal invasion of Ukraine, Pepsi announced it was limiting exposure to Russia, but would continue providing “daily essentials” to local populations.8 However, Pepsi has expanded its market presence, including dairy and potato chips sales increasing by 13 and 11 percent, respectively, in 2024, selling soft drink products under alternative brands, operating 19 factories, opening a new factory, and registering a trademark.9 10 11 Pepsi’s annual report indicates Russian operations account for 4% of net revenue ($4.5 billion), and allegedly paid over $122 million in taxes to the Russian government.12 Pepsi’s products have also been found in Russian soldiers’ food rations.13 Accordingly, the Ukrainian National Agency on Corruption Prevention designated Pepsi an “international sponsor of war”.14 Instead of disclosing information on these risks to shareholders, Pepsi removed its website statement on the Russian invasion and reduced annual report disclosures between 2024 and 2025.15 16 17 Pepsi allegedly banned references to Ukraine and its armed forces in advertising and has not responded to stakeholder inquiries regarding the issue.18 Pepsi’s value chain partners in other CAHRA have also been associated with a number of human rights and conflict-related risks. This has included sugar suppliers in India linked to debt bondage and forced hysterectomies among female workers, tomato product suppliers in China connected to Uyghur forced labor, and palm oil suppliers in Brazil and Peru linked to escalating conflict and violence and land fraud against indigenous communities.19 20 21 </p>
<p>SUPPORTING STATEMENT Shareholders seek information, at board and management discretion, through a report that: ● Analyzes the effectiveness of the HRP’s assessment, mitigation, and reporting on human rights risks in CAHRA, including Russia and Ukraine. ● Assesses if additional policies, practices, and governance measures are needed to mitigate risks.</p>

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<div class=”views-field views-field-nothing”><span class=”field-content”> Matthew Illian</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>United Church Funds</span></div>
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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>PepsiCo, Inc.</p>
</div>
<div class=”row-info”>
<strong>Year:</strong>
<p>2025 </p>
</div>
<div class=”row-info”>
<strong>Issue Area:</strong>
<p>Environment </p>
</div>

<div class=”row-info”>
<strong>Focus Area:</strong>
<p>Plastics Pollution </p>
</div>
<div class=”row-info”>
<strong>Status:</strong>
<p>Filed</p>
</div>

</a>
</div>
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<section class=”section-b-single-resolutions content-blocks”>
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<h2>Resolution Text</h2>
<p>WHEREAS: Without immediate and sustained new commitments throughout the plastics value chain, annual flows of plastics into oceans could nearly triple by 2040.1</p>
<p>The growing plastic pollution crisis poses increasing risks to PepsiCo Inc Corporations could face an annual financial risk of approximately $100 billion should governments require them to cover the waste management costs of packaging they produce.2 Governments around the world are increasingly enacting such policies, including five new state laws that impose fees on corporations for single-use plastic (SUP) packaging.3 The European Union has banned ten SUP pollutants and taxed some non-recycled plastic packaging.4 A French law requires 10% of packaging be reusable by 2027 and Portugal requires 30% reusable packaging by 2030.5 Additionally, consumer demand for sustainable packaging is increasing.6</p>
<p>Pew Charitable Trusts’ groundbreaking study, Breaking the Plastic Wave(“Pew Report”), concluded that improved recycling alone is insufficient to address plastic pollution—instead, recycling must be coupled with reductions in use, materials redesign, and substitution.7 The Pew Report finds that the greatest opportunity to reduce or eliminate plastic lies with flexible plastic packaging, often used for chips, sweets, and condiments among other uses, and virtually unrecyclable in America. With innovation, redesign, and substitution, 26 million metric tons of flexibles can be avoided globally.8</p>
<p>The Pew Report finds that reducing plastic use is the most viable solution from environmental, economic, and social perspectives, yet broad corporate and stakeholder alignment on flexible packaging solutions is lacking.9</p>
<p>Despite its stated commitments to sustainable packaging, more than 18% of PepsiCo’s packaging remains in flexibles.10 Our Company is behind in its 2025 goals for reusable packaging, recyclable packaging in practice and at scale, and plastic reduction—increasing plastic use by more than 5% since 2020.11 In the absence of immediate action to eliminate flexibles by robustly engaging in research and expansion of reusable packaging, PepsiCo is on track to fail to meet its 2025 packaging goals.</p>
<p>Our Company could avoid regulatory, environmental, and competitive risks by adopting a comprehensive approach to addressing flexible plastic packaging use at scale.</p>
<p>BE IT RESOLVED: Shareholders request that the Board issue a report, at reasonable expense and excluding proprietary information, describing how PepsiCo could address flexible plastic packaging in alignment with the findings of the Pew Report, or other authoritative sources, to reduce its contribution to plastic pollution.</p>
<p>SUPPORTING STATEMENT: The report should, at Board discretion:</p>

Assess the reputational, financial, and operational risks associated with continuing to use non-recyclable plastic packaging while plastic pollution grows;
Evaluate actions to achieve fully recyclable packaging including elimination and accelerated research into innovative reusable substitution; and
Describe opportunities to pre-competitively work with peers to research and develop reusable packaging as an alternative to single-use packaging.

<p>1 https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf, p.4</p>
<p>2 https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf, p.9</p>
<p>3 https://www.packworld.com/sustainable-packaging/recycling/article/22922253/ameripen-shares-key-lessons-from-early-epr-adopters</p>
<p>4 https://environment.ec.europa.eu/topics/plastics/single-use-plastics_en</p>
<p>5 https://www.greenpeace.org/international/story/51843/plastics-reuse-and-refill-laws</p>
<p>6 https://www.shorr.com/resources/blog/the-2022-sustainable-packaging-consumer-report/</p>
<p>7 https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf, p.9</p>
<p>8 https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf, p.51;https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf,p.51</p>
<p>9 https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf,p.10;https://emf.thirdlight.com/link/pqm3hmtgpwtn-dwj3yc, p.22</p>
<p>10 https://gc-data.emf.org/2024/detail?cid=pepsico</p>
<p>11https://gc-data.emf.org/2024/detail?cid=pepsico</p>
<p><br><br> </p>

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</section>
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<h3>Lead Filer</h3>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Kelly McBee</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
</div>

</div>

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</div>

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</aside&gt

Resolution Details

Company:

PepsiCo, Inc.

Year:

2025

Issue Area:

Human Rights & Worker Rights

Focus Area:

Child Labor, Forced Labor/Ethical Recruitment

Status:

Filed

Resolution Text

Resolved: Shareholders of PepsiCo Inc. (“PepsiCo”) request that the Board of Directors issue a report, at reasonable cost and omitting proprietary information, detailing the effectiveness of PepsiCo’s efforts to uphold its human rights standards throughout its sugar supply chain in India. The report should address working conditions and recruitment practices that can contribute to allegations of forced labor, child labor, a disproportionately high rate of hysterectomies, and other human rights abuses affecting sugarcane cutters. The report should be publicly disclosed within one year from PepsiCo’s 2025 annual meeting.

Whereas:

The New York Times[1] has identified serious human rights abuses, including forced labor, child labor, and gender-based exploitation, in India’s sugar production, implicating brands, including PepsiCo. According to the Times, PepsiCo has “helped turn the Indian state of Maharashtra into a sugar-producing powerhouse.”[2] The Times accuses PepsiCo of financing “a brutal system of labor that exploits young girls”[3] and their families who are recruited to cut sugarcane for PepsiCo’s largest international franchisee, responsible for 90% of the company’s beverage sales in India.[4]

These human rights abuses are linked to a deeply flawed and opaque recruitment system, where sugar mills rely on labor contractors to hire workers from rural areas.[5] Labor contractors typically offer these workers advances to cover migration costs, then deduct wages for medical leave or unworked days, effectively trapping workers in cycles of debt bondage, a form of forced labor.[6] Children are subjected to illegal labor, working in hazardous conditions alongside their parents instead of attending school. An especially severe consequence for female workers is the disproportionately high rate of hysterectomies. Facing financial entrapment and harsh working conditions without access to proper sanitation, women feel pressured to undergo unnecessary surgeries to avoid menstruation-related work disruptions. Labor contractors provide loans for these procedures, indebting workers even further.[7]

PepsiCo committed to addressing forced labor and human trafficking risks through its Modern Slavery and Human Trafficking Statement, Supplier Code of Conduct, and leadership in multi-stakeholder initiatives, including Bonsucro. Additionally, PepsiCo publicly committed to eradicate recruitment fees globally by 2026 through the Employer Pays principle[8] and identified sugar as high-risk in a 2022 Human Rights Impact Assessment.[9]

However, PepsiCo does not disclose sufficient information to gauge the effectiveness of the company’s efforts to mitigate human rights risks in its sugar supply chain. The reported persistent labor abuses, including the weaknesses of Bonsucro’s certification program,[10] suggest gaps in PepsiCo’s human rights due diligence approach.

Combined with increasing global regulatory requirements mandating supply chain due diligence and disclosure to which the company is subject, these issues may contribute to enterprise, legal, regulatory, and reputational risks for PepsiCo and its shareholders.

This report will enable investors to assess the effectiveness of the company’s due diligence efforts and help PepsiCo identify, prioritize, remedy, and avoid adverse impacts throughout its Indian sugar supply chain. Strengthening its commitment to human rights should enhance long-term shareholder value by mitigating the associated risks.

[1] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html

[2] https://www.nytimes.com/video/world/asia/100000009363281/sugar-industry-exploitation-of-women.html

[3] https://www.nytimes.com/video/world/asia/100000009363281/sugar-industry-exploitation-of-women.html

[4] https://www.varunbeverages.com/vbl-at-a-glance/

[5] https://www.oxfamindia.org/sites/default/files/2020-02/%23Human%20Cost%20of%20Sugar_Maharashtra%20Case.pdf

[6] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html

[7] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html

[8] https://www.pepsico.com/our-impact/esg-topics-a-z/forced-labor

[9] https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/2022-pepsico-salient-human-rights-issues-update.pdf?sfvrsn=43ad8aaa_6

[10] https://www.nytimes.com/2024/07/30/world/asia/sugar-human-rights-bonsucro-india-hysterectomies.html

<div class=”col-lg-9 content-page left-side”>
<section class=”section-a-single-resolutions resolutions-info top-content”>
<div class=”resolutions-contain”>
<div class=”top-content”>
<h4>Resolution Details</h4>
</div>
<div class=”bottom-content”>
<div class=”row-info”>
<strong>Company:</strong>
<p>PepsiCo, Inc.</p>
</div>
<div class=”row-info”>
<strong>Year:</strong>
<p>2025 </p>
</div>
<div class=”row-info”>
<strong>Issue Area:</strong>
<p>Human Rights & Worker Rights, Inclusiveness </p>
</div>

<div class=”row-info”>
<strong>Focus Area:</strong>
<p>Race Discrimination, Racial Justice </p>
</div>
<div class=”row-info”>
<strong>Status:</strong>
<p>Filed</p>
</div>

</a>
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<section class=”section-b-single-resolutions content-blocks”>
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<h2>Resolution Text</h2>
<p>RESOLVED: Shareholders of PepsiCo, Inc. (“PepsiCo”) urge the board of directors to oversee a third-party audit (within a reasonable time and at a reasonable cost) that assesses and produces recommendations for improving the racial impacts of its policies, practices, products, and services, above and beyond legal and regulatory matters. A report on the audit, prepared at a reasonable cost and omitting confidential/proprietary information, should be published on the company’s website. </p>
<p>WHEREAS: </p>
<p>PepsiCo has not employed a third-party auditor to assess and further develop its racial equity strategy, claiming that the requested audit is unnecessary in part because of its work with Management Leadership for Tomorrow’s Racial Equity Certification Program. While this is valuable work, it is not a substitute for a racial equity audit. Recognizing this, more than 196 million shares supported a similar racial equity audit proposal in 2024.[1]      </p>
<p>Racial equity audits engage companies in a process that may unlock value, uncover blind spots, and strengthen external relationships. </p>
<p>Leaders of major racial justice organizations have called for companies to conduct racial equity audits. The best practices these organizations identified for completing these audits are: </p>

Select an independent person or firm with civil rights and racial justice expertise and adequate resources to complete the audit. 
Ensure the audit comprehensively examines how corporate policies, practices, and products can ameliorate or exacerbate racial inequalities. Audit processes should proactively identify and engage in outreach to a wide range of stakeholders such as civil rights organizations, employees, and customers impacted by racial inequity. 
Publish audit findings, recommendations, and progress reports with action plans with timelines to address identified issues.[2]

<p>PepsiCo has a long history of breaking barriers – including naming the first Black officer of a major U.S. multinational corporation in the 1960s. More recent efforts include pledging more than $570 million to increase Black and Hispanic representation at PepsiCo, within its partnerships and supply chain. The company has stated that it is “committed to helping dismantle systemic barriers in Black and Hispanic American communities.”[3] </p>
<p>PepsiCo has also said diversity, equity, and inclusion “is an imperative to our long-term success and continues to be a competitive advantage at PepsiCo.”[4] </p>
<p>PepsiCo could benefit from undertaking the requested audit. In the past it has faced allegations of discriminatory hiring practices,[5] advertising low-nutrition products more heavily in communities of color,[6] and encouraging a hostile work environment.[7] Its advertisement featuring a wealthy White woman giving a police officer a Pepsi during a time when Black Lives Matter protestors were working to bring attention to police brutality was called “tone-deaf” by Marketing Week and led to extensive social media protests against the PepsiCo brand.[8] </p>
<p> </p>
<p>A still image from the ad accused of “trivializing Black Lives Matter” as published in the New York Times9 </p>
<p>We urge the company to conduct a racial equity audit to support its brand’s longevity and popularity. </p>
<p> </p>
<p class=”footnotedescription”>[1] https://pepsico.gcs-web.com/static-files/b6002b22-8eab-4bb8-aad7-9e2ac27e625d </p>
<p class=”footnotedescription”>[2] https://hiphopcaucus.org/major-u-s-civil-rights-and-racial-justice-organizations-call-on-corporations-toaccount-for-racial-equity-and-civil-rights-audits/ </p>
<p class=”footnotedescription”>[3] https://www.pepsico.com/our-impact/diversity/racial-equality-journey </p>
<p class=”footnotedescription”>[4] www.pepsico.com/docs/default-source/diversity-equityinclusion/2023_pepsico_dei_annual_report.pdf?sfvrsn=25b79828_17 </p>
<p class=”footnotedescription”>[5] https://www.reuters.com/article/us-pepsico-bias-settlement/pepsico-settles-u-s-charge-of-racial-bias-inhiring-idUSTRE80A2A720120111 </p>
<p class=”footnotedescription”>[6] https://today.uconn.edu/2022/11/new-study-shows-unhealthy-food-advertising-continues-todisproportionately-target-consumers-of-color/ </p>
<p class=”footnotedescription”>[7] https://www.syracuse.com/news/2021/07/a-black-worker-2-white-co-workers-charge-racismdiscrimination-at-syracuse-pepsi-facility.html </p>
<p class=”footnotedescription”>[8] https://www.marketingweek.com/pepsi-scandal-prove-lack-diversity-house-work-flawed/ 9 https://static01.nyt.com/images/2017/04/06/business/06xp-PEPSI/06xp-PEPSIjumbo.jpg?quality=75&auto=webp </p>

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</section>
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<aside class=”col-xl-3 right-side”>
<div class=”column-contain”>

<h3>Lead Filer</h3>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Laura Campos</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Nathan Cummings Foundation</span></div>
</div>

</div>

</div>
</div>

</div>
</div>
</aside&gt

<div class=”col-lg-9 content-page left-side”>
<section class=”section-a-single-resolutions resolutions-info top-content”>
<div class=”resolutions-contain”>
<div class=”top-content”>
<h4>Resolution Details</h4>
</div>
<div class=”bottom-content”>
<div class=”row-info”>
<strong>Company:</strong>
<p>PepsiCo, Inc.</p>
</div>
<div class=”row-info”>
<strong>Year:</strong>
<p>2025 </p>
</div>
<div class=”row-info”>
<strong>Issue Area:</strong>
<p>Health </p>
</div>

<div class=”row-info”>
<strong>Focus Area:</strong>
<p>Obesity </p>
</div>
<div class=”row-info”>
<strong>Status:</strong>
<p>Filed</p>
</div>

<div class=”field field–name-node-title field–type-ds field–label-hidden field–item”><strong>
PepsiCo, Inc. Assess & Mitigate Potential Health Harms from Non Sugar Substitutes – Proxy Memo
</strong>
</div>

<div class=”field field–name-field-links field–type-link field–label-hidden field–items”>
<div class=”field–item”>Proxy Memo
<a href=”https://www.pepsico.com/docs/default-source/annual-reports/2024-pepsico-proxy-statement.pdf”>https://www.pepsico.com/docs/default-source/annual-reports/2024-pepsico-proxy-s…</a></div>
</div>

</span>
</span>

</a>
</div>
</div>
</div>
</section>

<section class=”section-b-single-resolutions content-blocks”>
<div class=”top-content editor-block”>
<div class=”content-block”>
<div class=”main-content”>
<h2>Resolution Text</h2>
<p dir=”ltr”><strong>WHEREAS, </strong> </p>
<p dir=”ltr”>The World Health Organization recommended “against the use of NSS to control body weight or reduce the risk of noncommunicable diseases.”  Based on a 2022 meta-analysis, this report demonstrated the “use of NSS does not confer any long-term benefit in reducing body fat in adults or children” and suggested that there “may be potential undesirable effects from long-term use of NSS, such as an increased risk of type 2 diabetes, cardiovascular diseases, and mortality in adults”. This represents a systemic risk to consumer health, burdening the economy, to the detriment of diversified investors who seek long term returns. </p>
<p dir=”ltr”>The International Agency for Research on Cancer recently classified Aspartame – prominently used as an NSS in PepsiCo low- and no-sugar beverages – as “possibly carcinogenic to humans.” </p>
<p dir=”ltr”>A British Medical Journal study warned that NSS “should not be considered a healthy or safe alternative to sugar”.</p>
<p dir=”ltr”>The American Academy of Pediatrics 2019 Policy Statement calls for research on NSS effects on neurodevelopment and the microbiome to determine “the causal and harmful relationship” with obesity, diabetes and metabolic disorders. </p>
<p dir=”ltr”>A 2021 study noted that the combination of Aspartame and sweetener acesulfame-K, both contained in Pepsi Zero, has been shown to increase DNA damaging activity and the risk of cardiovascular and cerebrovascular diseases. Recent research finds prolonged NSS intake is associated with insulin resistance and glucose intolerance.</p>
<p dir=”ltr”>Health harms associated with NSS demand comprehensive research to provide transparency and enable better consumer choices, yet in answer, the mantra of the food and beverage trade association is that the FDA approved Aspartame as safe. But “safe” is not the same as “healthy”.  The majority of NNS intake is from beverages like PepsiCo’s Diet sodas.</p>
<p dir=”ltr”>One of the three pillars of PepsiCo’s Pep+ strategy is Positive Choice “inspiring people through our brands to make choices that create more smiles for them and the planet.”  Positive change for the planet and people means PepsiCo must assess their use of NSS and its impact on consumer health, to safeguard PepsiCo’s long term sustainability.</p>

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<aside class=”col-xl-3 right-side”>
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<h3>Lead Filer</h3>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Christina Dorett</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Sisters of the Sorrowful Mother</span></div>
</div>

<h3>Co-filer</h3>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Josie Chrosniak</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Sisters of the Humility of Mary, OH</span></div>
</div>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Laura Krausa</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>CommonSpirit Health</span></div>
</div>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Barbara McCracken</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Benedictine Sisters of Mount St. Scholastica</span></div>
</div>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Cathy Rowan</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Trinity Health</span></div>
</div>
<div class=”views-row”>
<div class=”views-field views-field-nothing”><span class=”field-content”> Susan Jordan</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>School Sisters of Notre Dame Collaborative Investment Fund</span></div>
</div>

</div>

</div>
</div>

</div>
</div>
</aside&gt

Resolution Details

Company:

PepsiCo, Inc.

Year:

2024

Issue Area:

Human Rights & Worker Rights

Focus Area:

Race Discrimination, Racial Justice

Status:

Filed

Resolution Text

RESOLVED: Shareholders of PepsiCo, Inc. (“PepsiCo”) urge the board of directors to oversee a third-party audit (within a reasonable time and at a reasonable cost) that assesses and produces recommendations for improving the racial impacts of its policies, practices, products, and services, above and beyond legal and regulatory matters. A report on the audit, prepared at reasonable cost and omitting confidential/proprietary information, should be published on the company’s website.

WHEREAS: Racial equity audits engage companies in a process that may unlock value, uncover blind spots, and strengthen external relationships.

Leaders of major racial justice organizations across the United States have called for companies to conduct racial equity audits. The best practices these organizations identified for completing these audits are:

Select an independent person or firm with civil rights and racial justice expertise and adequate resources to complete the audit.
Ensure the audit comprehensively examines how corporate policies, practices, and products can ameliorate or exacerbate racial inequalities. Audit processes should proactively identify and engage in outreach to a wide range of stakeholders such as civil rights organizations, employees, and customers impacted by racial inequity.
Publish audit findings, recommendations, and progress reports with action plans with timelines to address identified issues.[1]

At least 19 corporations have committed to or are in the process of completing racial equity audits.

PepsiCo has a long history of breaking barriers – including naming the first Black officer of a major U.S. multinational corporation in the 1960s. More recent admirable efforts include pledging more than $570 million to increase Black and Hispanic representation at PepsiCo, within its partnerships and supply chain. The company has stated that it is “committed to helping dismantle systemic barriers in Black and Hispanic American communities.”[2]

PepsiCo has also said diversity, equity, and inclusion “is an imperative to our long-term success and continues to be a competitive advantage at PepsiCo.”[3]

PepsiCo has also mis stepped at times, with allegations of discriminatory hiring practices,[4] advertising low-nutrition products more heavily in communities of color[5], and encouraging a hostile work environment.[6] This included its advertisement featuring a wealthy White woman giving a police officer a Pepsi during a time when Black Lives Matter protestors were working to bring attention to police brutality against Black Americans. This ad, called “tone-deaf” by Marketing Week, led to extensive social media protests against the PepsiCo brand.[7]

PepsiCo launched a Multicultural Business and Equity Development organization[9] in 2022, but its President retired within a year[10] and announcements around replacement leadership were not made.

We urge the company to conduct a racial equity audit to examine its total impact and to support the longevity and popularity of its brand via a thoroughly developed understanding of its role in supporting racial equity efforts.

[1] https://hiphopcaucus.org/major-u-s-civil-rights-and-racial-justice-organizations-call-on-corporations-to-account-for-racial-equity-and-civil-rights-audits/

[2] https://www.pepsico.com/our-impact/diversity/racial-equality-journey

[3] www.pepsico.com/docs/default-source/diversity-equity-inclusion/2023_pepsico_dei_annual_report.pdf?sfvrsn=25b79828_17

[4] https://www.reuters.com/article/us-pepsico-bias-settlement/pepsico-settles-u-s-charge-of-racial-bias-in-hiring-idUSTRE80A2A720120111

[5] https://today.uconn.edu/2022/11/new-study-shows-unhealthy-food-advertising-continues-to-disproportionately-target-consumers-of-color/

[6] https://www.syracuse.com/news/2021/07/a-black-worker-2-white-co-workers-charge-racism-discrimination-at-syracuse-pepsi-facility.html

[7] https://www.marketingweek.com/pepsi-scandal-prove-lack-diversity-house-work-flawed/

[8] https://static01.nyt.com/images/2017/04/06/business/06xp-PEPSI/06xp-PEPSI-jumbo.jpg?quality=75&auto=webp

[9] https://csnews.com/pepsico-creates-new-organization-accelerate-companys-racial-equality-journey

[10] https://www.linkedin.com/in/dereklewis1/

Biodiversity Impact Assessment

Resolution Details

Resolution Text

Resolution Details

Resolution Text