PepsiCo : 2021 CDP Water Submission

PepsiCo, Inc. CDP Water Security Questionnaire 2021 Wednesday, July 28, 2021

PepsiCo, Inc. CDP Water Security Questionnaire 2021

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

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 $70 billion in net revenue in 2020, driven by a complementary food and beverage portfolio that includes Frito- Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana and SodaStream. 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 our business strategy and brands. Winning with Purpose aims to build a more sustainable food system by intensifying our efforts on critical initiatives including water stewardship.

This CDP Water Security Questionnaire 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. For information on certain factors that could cause actual events or results to differ materially from our expectations, 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.

W-FB0.1a

(W-FB0.1a) Which activities in the food, beverage, and tobacco sector does your organization engage in?

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PepsiCo, Inc. CDP Water Security Questionnaire 2021 Wednesday, July 28, 2021

Agriculture

Processing/Manufacturing

Distribution

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date
Reporting year	January 1, 2020	December 31, 2020

W0.3

(W0.3) Select the countries/areas for which you will be supplying data.

Argentina

Australia

Belgium

Bosnia & Herzegovina

Brazil

Canada

Chile

China

Colombia

Costa Rica

Cyprus

Czechia

Dominican Republic

Ecuador

Egypt

El Salvador

Estonia

France

Germany

Greece

Guatemala

Honduras

Hungary

India

Israel

Italy

Jordan

Kyrgyzstan

Mexico

Netherlands

New Zealand

Pakistan

Panama

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PepsiCo, Inc. CDP Water Security Questionnaire 2021 Wednesday, July 28, 2021

Peru

Poland

Portugal

Romania

Russian Federation

Saudi Arabia

Serbia

Singapore

Slovakia

South Africa

Spain

Taiwan, Greater China

Thailand

United States of America

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

USD

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Companies, entities or groups over which financial control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

Yes

W0.6a

(W0.6a) Please report the exclusions.

Exclusion	Please explain
Operational control	Company farms in China and Egypt do not have the capability to measure
farms and dairies	consumption at this time. Collectively, we estimate that exclusions represent
	less than 1% of total consumption and therefore do not represent a
	significant portion of the total water used (or consumed).
International	These facilities do not report water consumption. Collectively, we estimate
offices/warehouse	that exclusions represent less than 1% of total consumption and therefore do
(partial)	not represent a significant portion of the total water used (or consumed).
Agriculture	PepsiCo owns/manages some agricultural land within our direct operations.
	Lands are usually used to grow crops for our products. The amount of land

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PepsiCo, Inc. CDP Water Security Questionnaire 2021 Wednesday, July 28, 2021

this represents relative to our overall agricultural supply chain is less than 0.3% of total and therefore does not represent a significant portion of the total water used (or consumed). This is the reason for the exclusion of owned/managed agricultural land

W1. Current state

W1.1

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

	Direct use	Indirect use	Please explain
	importance	importance
	rating	rating
Sufficient	Vital	Vital	Direct: Good quality fresh water is considered vital
amounts of good			because it is a key ingredient for our beverages.
quality freshwater			Additionally, it is vital for maintaining sanitary
available for use			conditions throughout our food and beverage
			operations (direct) and those of our third-party
			manufacturers and franchise bottlers (indirect).
			Indirect: Good quality freshwater is also vital in our
			raw material supply chain and particularly within
			our agricultural supply chain where water is vital
			for growing crops. We expect that future water
			dependency in our direct and indirect operations
			will change because of improvements in both
			operational and agricultural water-use efficiency.
Sufficient	Important	Important	We selected the 'Important' rating for direct
amounts of			operations because while we use internal recycled
recycled,			and reused water in utilities and within our snacks
brackish and/or			and food operations, our ingredient standards
produced water			limits how we can use brackish, recycled or
available for use			produced water in our beverage manufacturing
			processes.
			Our future dependency on brackish, recycled or
			produced water for our manufacturing processes
			could increase if there were specific and suitable
			uses for it to offset freshwater withdrawals. We
			also selected 'Important' rating for indirect
			operations because the power plants that provide
			energy to our operations and our suppliers may
			rely on recycled, brackish and/or produced water
			for cooling.
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PepsiCo, Inc. CDP Water Security Questionnaire 2021 Wednesday, July 28, 2021

In the future, we will still depend on sufficient amounts of produced and other water for cooling in the power plants that provide energy to our operations; our future dependency on brackish, recycled or produced water for cooling could increase based on increased stress on freshwater resources.

W-FB1.1a

(W-FB1.1a) Which water-intensive agricultural commodities that your organization produces and/or sources are the most significant to your business by revenue? Select up to five.

Agricultural	% of revenue	Produced	Please explain
commodities	dependent on these	and/or
	agricultural	sourced
	commodities
Maize	41-60	Sourced	Revenue dependent on this commodity is
			disclosed as an aggregate of all
			commodities listed here. We do not have
			sufficient data to determine revenue
			dependence of each commodity at this time.
Palm oil	41-60	Sourced	Revenue dependent on this commodity is
			disclosed as an aggregate of all
			commodities listed here. We do not have
			sufficient data to determine revenue
			dependence of each commodity at this time.
Sugar	41-60	Sourced	Revenue dependent on this commodity is
			disclosed as an aggregate of all
			commodities listed here. We do not have
			sufficient data to determine revenue
			dependence of each commodity at this time.
Other, please	41-60	Sourced	Revenue dependent on this commodity is
specify			disclosed as an aggregate of all
Potatoes			commodities listed here. We do not have
			sufficient data to determine revenue
			dependence of each commodity at this time.
Other, please	41-60	Sourced	Revenue dependent on this commodity is
specify			disclosed as an aggregate of all
Wheat			commodities listed here. We do not have
			sufficient data to determine revenue
			dependence of each commodity at this time.

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