PepsiCo Inc. (PEP) — ESG & Values Scores

Environment story

PepsiCo discloses sustainability initiatives (pep+) and packaging/water efficiency investments, but the 10-K contains no disclosed Scope 1/2/3 emissions figures, no explicit net-zero target year, and repeated risk-factor language acknowledging uncertainty in achieving sustainability goals. Under the greenwashing cap, since supply-chain (Scope 3) emissions data is undisclosed and the company markets 'pep+' broadly without granular operational emissions cuts disclosed here, Environmental is capped at 55. Water scarcity is flagged as a material operational and reputational risk across multiple facilities and geographies, with no quantified mitigation results provided in this filing.

Criticisms on file

Water scarcity risk disclosed as material to operations, with potential for increased costs, capital expenditures, and reputational damage from perceived failure to act responsibly on water use
Source: PEP_10k.txt, Item 1A Risk Factors - Water scarcity section
Disclosed risk of failing to achieve or make sufficient progress toward ESG goals, including water use and environmental impact, which has led to adverse publicity and litigation risk
Source: PEP_10k.txt, Item 1A Risk Factors - Climate change section
Packaging waste bearing PepsiCo brands not properly disposed of has resulted in negative publicity, litigation, and government investigations
Source: PEP_10k.txt, Item 1A Risk Factors - Packaging/plastics section

Disclosed initiatives

pep+ (PepsiCo Positive) sustainability agenda

Company-wide sustainability strategy referenced as anchoring 'resilience in our business and broader ecosystem'; details not quantified in this filing
Packaging sustainability R&D

Investment in reducing plastic in packaging and developing recyclable, compostable, biodegradable, or reusable packaging alternatives, including recycled PET
Water efficiency technology investment

Capital expenditures on technologies to enhance water efficiency and reduce consumption in manufacturing operations, in response to water scarcity risk
Sustainable agricultural supply chain initiative

Program to advance sustainable farming practices among suppliers, being expanded globally

Social story

PepsiCo discloses approximately 306,000 global employees and numerous collective bargaining agreements, describing employee relations as 'generally good' with no specific documented major strikes or union-suppression activity disclosed in these filings. Board diversity among director nominees is 38% female and 31% racially/ethnically diverse, both above the 30% threshold. CEO pay ratio is not disclosed in the provided excerpts (proxy references a 'CEO Pay Ratio' section but the figure was not included in source text). A shareholder proposal requesting a human rights oversight report was filed by Mercy Investment Services citing forced labor and poor employment condition findings in PepsiCo's own Human Rights Assessment; the Board recommended voting against this proposal.

Criticisms on file

Shareholder proposal (Mercy Investment Services) cites PepsiCo's own Human Rights Assessment identifying forced labor and poor employment practices in its supply chain/value chain; Board recommended voting against the request for an expanded oversight report
Source: PEP_proxy.txt, Shareholder Proposal – Report on Human Rights Oversight (Proxy Item No. 5)
PETA shareholder proposal requesting report evaluating treatment of animals within PepsiCo's supply chain
Source: PEP_proxy.txt, Shareholder Proposal – Report Evaluating Treatment of Animals within Supply Chain (Proxy Item No. 6)
Disclosed risk that strikes or work stoppages by employees or third-party logistics/rail workers could disrupt manufacturing and distribution
Source: PEP_10k.txt, Item 1A Risk Factors - Strikes or work stoppages section

Disclosed initiatives

Employee safety technology investment

Investment in fleet telematics, distracted driving technology, and ergonomic/machine safety risk reduction solutions, resulting in reduced road traffic incidents
Global training and development programs

MyLearning and Schoox online learning platforms; employees completed over 2.8 million training hours in 2025
Board oversight of pay equity

Board and its Committees provide oversight on pay equity among other human capital topics

Governance story

PepsiCo maintains a single class of common stock with one vote per share (no dual-class structure), and 12 of 13 director nominees (92%) are independent, exceeding the 80% target, so no deductions apply for board independence or share structure. The combined Chairman/CEO role (Ramon Laguarta) drew a shareholder proposal for an independent board chair, which the Board recommended voting against, citing a strong independent Presiding Director as sufficient counterbalance. No antitrust, consumer-fraud, or SEC consent decree proceedings are disclosed as active/material in these filings; general regulatory and litigation risk factors are described but not quantified as active proceedings.

Criticisms on file

Shareholder proposal (National Legal and Policy Center) requesting mandatory independent board chair policy, opposing the combined Chairman/CEO structure; Board recommended voting against
Source: PEP_proxy.txt, Shareholder Proposal – Independent Board Chair (Proxy Item No. 4)
Disclosed general regulatory risk across antitrust (Robinson-Patman/Clayton Act), data privacy (CCPA/GDPR), anti-corruption (FCPA, UK Bribery Act), and consumer protection statutes, without specific active enforcement actions detailed in this filing
Source: PEP_10k.txt, Item 1. Business - Regulatory Matters section

Disclosed initiatives

Global Code of Conduct with annual compliance certification

All directors and employees certify compliance annually; overseen by Global Chief Compliance & Ethics Officer with regular Audit Committee executive sessions
Prohibition on hedging and pledging of Company stock

Directors, officers, and employees prohibited from hedging/pledging activities to align interests with shareholders
Clawback policy and stock ownership requirements

Stringent compensation clawback policy and rigorous director/executive stock ownership requirements
Majority-vote and director resignation policy

Directors in uncontested elections must receive majority 'for' votes or offer resignation, reviewed by Nominating and Corporate Governance Committee

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of PepsiCo Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open PepsiCo Inc. in the app for interactive charts and portfolio building.

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