Pepsi's Success Has Always Rested On Their Single Greatest Asset: The People. at A

Pepsi’s success has always rested on their single greatest asset: the people.
At a
time of sweeping change in the industry, they are helping associates develop the
skills they need to grow for the company to thrive. In 2017, they also renewed their
commitment to supporting their associates in other ways. Childcare options are
available at or near PepsiCo locations around the world — and they launched their
Ready to Return initiative, a 10-week “boot camp” for professionals seeking to
refresh their skills after taking time off to care for a loved one. All of these efforts
reflect a broader commitment to operating in a way that not only generates
sustained financial growth and consistently strong returns, but also does so while
being responsive to the needs of the world around us.
The company knows that prioritizing the short term at the expense of the long term
is simply not sustainable, and perpetuates the kinds of boom-splat cycles that are
not good for any of their stakeholders. Instead, they have adopted a different
approach — advancing both short- and long-term priorities, hand in hand, so they
can deliver strong returns that grow consistently over an extended period of time.
And they have done so while upholding the highest standards of corporate integrity
and responsibility. In fact, it is the only food and beverage company to appear on
the Ethisphere Institute’s list of the World’s Most Ethical Companies® every year
since the list was established twelve years ago. Since 2009, Food for Good, The
PepsiCo Foundation’s purpose-driven initiative that provides food bundles to
underserved children, has delivered over 100 million nutritious servings to children
in need. By 2025, Food for Good aims to deliver 50 million nutritious servings per
year across 25 cities in the U.S.
ADVANCE RESPECT FOR HUMAN RIGHTS We aim to leverage PepsiCo’s

influence to advance respect for human rights throughout our value chain. As part
of our approach, we are committed to implementing the UN Guiding Principles
(UNGPs) on Business and Human Rights throughout our business and publicly
reporting on our progress. Training plays an important role in our work to embed
respect for human rights throughout our business activities. Through training, we
can communicate our policies, standards and expectations to our employees and
suppliers while raising
SUSTAINABLE SOURCING Our Sustainable Sourcing Program (SSP) is a

supplier engagement program for our most business-critical first-tier suppliers that
includes formal risk assessments, third-party audits, mitigation and capability
building. In 2018, more than 960 on-site audits were conducted or recognized with
first-tier suppliers using the industry standard SMETA 4-Pillar Audit Protocol or
an equivalent assessment.
Our commitment to building a more diverse and inclusive workplace is woven into
our company’s values and beliefs. In 2018, we made significant advancements
toward our diversity and employee development goals.
40% Increasing Gender Parity 40% of our global managers are women.
23% Promotion to Higher Levels In 2018, our global women promotion rate was
23%.
Compensation Men and women are paid within 1% of each other in the 33
countries that represent 93% of our salaried employee population.
Prioritizing Continued Employee Training and Development Our employees

completed 1.3 million hours of learning, a 7% year-over-year increase.
More than a decade into our Performance with Purpose journey, they are more
confident than ever that they are on the right path. And they have recommitted to
that path with our Performance with Purpose 2025 Agenda, embedding
sustainability into everything they do and powering a virtuous cycle that allows
them to continue doing well by doing good. The company has come a long way by
doing this.
In 2015, the United Nations General Assembly announced 17 Sustainable

Development Goals (SDGs) to address global challenges and set a blueprint for
action to achieve the goals by 2030. Their sustainability priorities are aligned with
the SDGs so that their actions can contribute to a greater collective impact.
At PepsiCo, they believe that there is an opportunity to change how the world
produces, distributes, consumes and disposes of foods and beverages in order to
tackle the shared challenges we face. So, as part of their vision to Be the Global
Leader in Convenient Foods and Beverages by Winning with Purpose, they are
refocusing our Sustainability Agenda on Helping to Build a More Sustainable Food
System; one that can meet human needs for nutrition and enjoyment and continue
to drive economic growth and social development without exceeding the planet’s
natural boundaries.
Priorities
i.They relate to the most pressing sustainability challenges, risks and opportunities
facing PepsiCo and our food system. ii. They matter most to PepsiCo’s key
external stakeholders (see our GRI Materiality section beginning on page 35). iii.
They offer the opportunity for PepsiCo to make a positive difference at a systems
level—i.e. both within and beyond our own value chain.
Our ultimate goal is to support long-term, sustainable water security for all users,
especially in high water-risk areas. As well as taking action in our own value
chain, we aim to use our expertise and influence to advocate for the local policies
and practices that can protect and replenish watersheds.
We’ve set an ambitious target: to replenish 100 percent of the water we consume
for manufacturing in high water-risk areas by 2025
We aim to create a positive water impact within our manufacturing operations by

rethinking how we use water every step of the way. As part of our continued
efforts to be better stewards of water, we strive to improve water-use efficiency in
our direct operations in high water-risk locations by 25 percent by 2025 (2015
baseline).
Right now, around the world, one in nine people do not have access to safe and
clean drinking water. Shortages have ripple effects threatening the health and
safety of communities and profoundly impacting hygiene, waterborne diseases,
famine, migration and violence. That’s why The PepsiCo Foundation teams with
nonprofit groups and non-government organizations (NGOs) to support
conservation, distribution and purification programs worldwide.
In the face of rapid technological innovation and accelerating change throughout
our industry, we are deploying digital capabilities widely across the company.
Frito-Lay North America is using Big Data to help make sure consumers can fi nd
their favorite snacks in local stores. In India, we set up a Digital Command Center
to analyze links between consumer behavior and business results. In China, we
leveraged social media to launch the latest “Bring Happiness Home” Chinese New
Year campaign, including a 20-minute video that generated more than 1 billion
views. Our increased commitment to digitalization in Latin America drove up our
return on investment from advertising and marketing. We are capitalizing on the
emerging capabilities of the Internet of Things, from predicting when plant
equipment will need maintenance to reducing energy consumption. And we are
just getting started.
In 2017, we generated approximately $1 billion in savings, enabled by our

productivity agenda. Our productivity has been driven by a relentless continuous-
improvement mindset, focused on every aspect of our value chain. We have refi
ned our business model to reduce management layers and accelerate decision-
making. We have harnessed leading-edge digital tools to increase manufacturing
throughput, curb logistics costs, and improve go-to-market effi ciency and eff
ectiveness. And we are sustainably reinvesting in our business, positioning
ourselves to capture tomorrow’s growth.
Finding out what your competitors do well to spread their brands and gain
recognition is just smart. It’s not that you want to copy them, but you do need to
know what works and what does not. What are their messages and are they
resounding with their audiences (remember, these are your audiences too).
The marketing strategy of Coca-Cola is good and it targets people of all ages. Due
bbnnto their large market share and its brand value, Coca-Cola is regarded as a top
Pepsi competitor.
Red Bull-- The brand is a great hit in making their category brand which is being
recognized all over the world. It has maintained consistent and strong promotional
activities and has also sponsored popular sports activities to make their brand
identity stronger. Due to their strong geographic presence, Red Bull is regarded as
a top Pepsi competitor.
This brand is recommended by the association, Protein Food &

Nutrition Development Association of India (PFNDAI). Due to their large variants
of products, Dabur Real juice is regarded as a top Pepsi competitor.
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Pepsi’s success has always rested on their single greatest asset: the people.

ADVANCE RESPECT FOR HUMAN RIGHTS We aim to leverage PepsiCo’s

SUSTAINABLE SOURCING Our Sustainable Sourcing Program (SSP) is a

Prioritizing Continued Employee Training and Development Our employees

In 2015, the United Nations General Assembly announced 17 Sustainable

We aim to create a positive water impact within our manufacturing operations by

In 2017, we generated approximately $1 billion in savings, enabled by our

This brand is recommended by the association, Protein Food &

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