PepsiCo 2023 

TCFD Index
This index references PepsiCo’s reporting against the voluntary guidelines of
the Task Force on Climate-related Financial Disclosures (TCFD). It is our fifth
report aligned to these guidelines, and, in addition to the universal disclosures,
includes disclosure on the cross-industry metrics suggested by the TCFD’s 2022
Guidance on Metrics, Targets and Transition Plans. The information within this
PDF is accurate as of publication on June 20, 2024. Unless otherwise noted,
our sustainability data reflects progress made during the calendar year (ending
December 31), whereas our financial reporting corresponds with our fiscal year,
which ends on the last Saturday of December. Many of the disclosures appear in
our CDP Climate and Water responses due to close alignment between the two
frameworks; however, relevant disclosures are also contained within our 2023
Annual Report, our 2023 ESG Summary and our ESG Topics A-Z.

Climate ambitions
In January 2021, we announced goals in line with the latest science,
more than doubling our previous science-based climate goal.
We aim to reduce absolute greenhouse gas (GHG) emissions
across our value chain by more than 40% by 2030, including a 75%
reduction in emissions from our direct operations (2015 baseline).

In addition, we aim to achieve net-zero emissions by 2040, one

decade earlier than called for in the Paris Agreement. Our target
aligns with the Business Ambition for 1.5°C pledge, which PepsiCo
signed in 2020, joining other leading companies committing to
set science-based emissions reduction targets in line with limiting
global warming to 1.5°C above preindustrial levels.
 Renewable electricity
and fuels

Climate spotlight In 2023, 40 countries in PepsiCo’s operations consumed 100% renewable electricity for
manufacturing operations, including use of renewable energy credits, including China, New
Zealand and South Africa, who each achieved this milestone for the first time during the year.
In Cork, Ireland, we completed the installation of the largest solar panel project in the country
at our factory, and the facility became the first PepsiCo manufacturing location to eliminate
the use of fossil fuels in our operations.

Decarbonizing our operations and value chain We continue to use renewable fuels in our fleet and manufacturing operations. In PepsiCo
is a complex effort requiring a multi-pronged U.K., we launched a pilot program to use used cooking oil to replace diesel for some journeys
approach and the commitment of stakeholders as by truck. We are also piloting plants with anaerobic digesters, which produce biogas that can
diverse as suppliers, regulators, customers and be used to meet the thermal requirements of our operations. In 2023, we opened a
consumers. We know that our efforts do not occur biomethane production facility in Manisa, Türkiye that plans to use waste from nearby
in a vacuum — they rely on the developments of the companies to create the biomethane gas.
wider systems in which we operate. Key areas, such
as the modernization of electrical grids and
development of affordable renewable fuel supply, Sustainable solutions
will influence our progress as we work towards for our operations
decarbonization. We’ve learned a lot as we’ve
tested technologies and we aim to continue to In 2023, we set new guiding principles for our operations, called Sustainable Operations
implement scalable solutions that are available from the Start (SOftS), that require all new operations, including building new
today, while also investing in new promising manufacturing and distribution sites as well as expanding lines within existing operations,
technologies. Our Scope 1 GHG emissions to be funded, scoped and activated with net-zero emissions and net water positive
continue to decline (down 33% compared to our outcomes in mind. SOftS requires that, at start-up, new operations within PepsiCo have
2015 baseline); however, slower-than-anticipated zero incremental manufacturing emissions, are net water positive and are modern and
technological developments for Scope 1 solutions fully digitally-connected.
like renewable fuels have dampened progress.
Additionally, SOftS asks that new projects build in space for evolving future solutions.
Delivering our products requires certain key inputs While the desired outcomes are prescribed through SOftS, the solutions to get there are
and activities whose emissions we cannot always not — each project and each sector can design their operations to match the capabilities
and technologies available within the market.
control or even influence. We know that turning the
tide will take diligence and time, but we are laying
the foundation by putting substantial influence and
investment behind climate action and building Partnering with our
resilience in our own operations and beyond. suppliers
Though progress has not always been fast, we are
seeing movement in these hard-to-move spaces — After launching pep+ REnew and the Sustainability Action Center in 2022, we developed
our Scope 3 emissions are down approximately 1% a central platform with the aim to scale climate solutions in our value chain: Partners for
against our 2015 baseline. Tomorrow - Your Sustainability Action Center. The platform provides our value chain
partners with tailored resources and their own access to the pep+ dashboard, as well as
a benchmark on how they are performing against peers and industry.

Additionally in 2023, we co-launched The Clean Energy Procurement Academy initiative

alongside Apple, Nike, the Clean Energy Buyers Association and other global firms with
the mission to equip suppliers with the skills and knowledge required to access clean
energy. This program is designed to speed up the integration of clean energy into global
supply chains and aims to spur policy change in China, Japan, Taiwan, South Korea,
Vietnam and other Asia Pacific countries where renewable power has historically been
more challenging to source.
 Universal disclosures

Reporting
Topic Disclosures Reference
status

Describe the organization’s governance around climate-related risks 2023 CDP Climate Submission: C1.1a, C1.1b, C1.3 and C1.3a
and opportunities Reported ESG Topics A-Z: Climate change
Cross-industry metric category: Remuneration
Governance ESG Topics A-Z: Sustainability governance

Describe management’s role in assessing and managing

Reported 2023 CDP Climate Submission: C1.1b, C1.2 and C2.2
climate-related risks and opportunities

Describe the climate-related risks and opportunities the organization 2023 CDP Climate Submission: C2.3 and C2.4
Reported
has identified over the short, medium, and long term 2023 Form 10-K: Item 1A. Risk Factors

Describe the impact of climate-related risks and opportunities on the

organization’s businessess, strategy, and financial planning
Strategy Reported 2023 CDP Climate Submission: C2.3a, C2.4a, C3.3 and C3.4
Cross-industry metric categories: Transition risks, physical risks,
climate-related opportunities

Describe the resilience of the organization’s strategy, taking into

consideration different climate-related scenarios, including a 2°C or Reported 2023 CDP Climate Submission: C3.2a and C3.3
lower scenario

Describe the organization’s processes for identifying and assessing 2023 CDP Climate Submission: C2.2
Reported
climate-related risks ESG Topics A-Z: Climate change

2023 CDP Climate Submission: C3.3

Risk Describe the organization’s processes for managing climate-related risks Reported
management ESG Topics A-Z: Climate change

Describe how processes for identifying, assessing, and managing 2023 CDP Climate Submission: C2.2
climate-related risks are integrated into the organization’s overall risk Reported
management ESG Topics A-Z: Climate change

Disclose the metrics used by the organization to assess climate-

related risks and opportunities in line with its strategy and risk Reported 2023 CDP Climate Submission: C2.2
management process

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas 2023 CDP Climate Submission: C6.1, C6.3 and C6.5
Metrics and (GHG) emissions and the related risks Reported
targets Cross-industry metric category: GHG emissions ESG Topics A-Z: Climate change

Describe the targets used by the organization to manage climate- 2023 CDP Climate Submission: C4.1, C4.2 and C11.3a
related risks and opportunities and performance against targets Reported 2023 ESG Performance Metrics Sheet, Positive Value Chain
Cross-industry metric category: Internal carbon prices ESG Topics A-Z: Climate change

ESG Topics A-Z · 2023 ESG Performance Metrics · 2023 ESG Summary 3
 Sector-specific metrics

Financial Climate-related Reporting

Metric Reference
category category status

Risk adaptation
Revenues Revenues/savings from investments in low-carbon alternatives Reported 2023 CDP Climate Submission: C4.3b
and mitigation

2023 CDP Water Submission: W1.2b

Total water withdrawn and total water consumed Reported
ESG Topics A-Z: Water
Water
Percent of water withdrawn and consumed in regions with high or 2023 CDP Water Response: W1.2d
Reported
Expenditures extremely high baseline water stress ESG Topics A-Z: Water

2023 CDP Climate Submission: C6.3

Purchased energy (Scope 2): Emissions from purchased heat,
GHG emissions Reported ESG Topics A-Z: Climate change
steam, and electricity consumed on the farm/plant
ESG Topics A-Z: Renewable energy

Number of company-owned production sites in regions with high 2023 CDP Water Submission: W1.2d
Water Reported
or extremely high baseline water stress ESG Topics A-Z: Water

2023 CDP Climate Submission: C3.5a

Assets and C4.3b
Risk adaptation Investment (CapEx) in low carbon/water alternatives
Reported 2023 CDP Water Submission: W4.3a
and mitigation Cross-industry metric category: Capital deployment and W7.2
2023 Green Bond Report

ESG Topics A-Z · 2023 ESG Performance Metrics · 2023 ESG Summary 4