Global Commitment 2021 Signatory Report

PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. This wide range of products are enjoyed by consumers in over 200 countries and territories across the globe.

Africa: Eastern Africa, Northern Africa, Southern Africa, Western Africa

America: Caribbean, Central America, Northern America, South America

Asia: Eastern Asia, Central Asia, South-eastern Asia, Southern Asia, Western Asia

Europe: Eastern Europe, Northern Europe, Southern Europe, Western Europe

Oceania: Australia and New Zealand, Melanesia, Micronesia and Polynesia

PepsiCo aims to achieve our sustainable packaging goals by fostering cross-industry and public-private partnerships, advocating for improved recycling, composting, broader waste management infrastructure and regulatory reform, supporting the advancement of new materials and enhanced recycling technologies, collaborating with suppliers and partners, and helping to increase consumer education and acceptance, all of which are necessary to meet our overall goals. In formulating our new virgin plastic reduction goal, we will reduce use of virgin plastic through use of: recycled content plastic feedstock; packaging redesign to eliminate plastic; reusable and/or refillable models; new innovative technologies; and alternative packaging materials.

For more information on PepsiCo's packaging work, please visit: http://www.pepsico.com/sustainability/packaging.

Over the course of 2020, PepsiCo has been testing and validating alternatives for materials that are not recycle compatible to gain insights for future innovation. We:

- launched a market test of molded pulp fiber and paperboard replacements for our plastic 6-pack carriers in the U.S.

- transitioned some beverage SKUs to recycle compliant labels and ran validation trials for other relevant SKUs.

- transitioned certain markets from neon green beverage bottles to transparent light green.

We have also been exploring how to reduce virgin plastic used in our beverage business, in 2020 for example, our bubly sparkling water brand exited plastic packaging, is now packaged in aluminum cans and is available as bubly drops for SodaStream.

We have already removed impediments to recycling in some markets such as PVC and colorants and are working to validate alternatives to remove the rest by 2025. These include:

- continued validation testing and conversion from non-recyclable to recycle compatible labels.

- transition colored PET to compliant PET for beverage bottles.

We are also working to reduce plastic use and, where environmentally efficient, switch to alternative materials. For example:

- we will further develop and scale technology to pre-settle our snack products to use a smaller bag for the same volume of snack, thus reducing plastic used

- SodaStream will switch all its flavors from virgin plastic to alternative materials including metal and rPET by 2025, which will avoid nearly 200 million single-use plastic bottles over the next five years.

Recent or in-progress pilots of reuse models for new products or packaging, Reuse models in place for consumer facing products or packaging

Product line(s) with reuse model(s): 6

Market(s) where reuse models are available today: Eastern Africa, Northern Africa, Southern Africa, Western Africa, Caribbean, Central America, Northern America, South America, Eastern Asia, South-eastern Asia, Southern Asia, Western Asia, Eastern Europe, Northern Europe, Southern Europe, Western Europe, Australia and New Zealand (89% of total)

Over the reporting period:

-The SodaStream brand expanded to officially launch SodaStream Professional, a mobile-enabled hydration platform that allows people to customize their water away-from-home, including offices, colleges and airports.

-SodaStream expanded the availability of PepsiCo-branded flavor options to include Australia, Norway, Sweden, Germany and France, making it easier for consumers to create their favorite beverages at home.

-We launched two bulk dispensing pilots in Europe: one with UK retailer Asda where we participated in a trial to reduce plastics and explore refillable options for our Quaker brand in their Sustainability Store; and a second in France with retailer Franprix on a pilot to distribute our nut product Bénénuts in bulk version.

-We are currently engaged in on-going workstreams with WEF, WWF and others, to develop standard methodology on how to account for and report on reusable, refillable and zero-waste packaging.

Piloting reuse models for new products or packaging: 2 pilots

Introducing or expanding reuse models for consumer facing products/packaging

Reuse is a lever the business will use to support our plastic reduction goal. We will continue developing, testing, and scaling models, e.g., piloting our bulk dispensing models in Western Europe and expansion of our SodaStream and returnables business.

In 2020:

-77% of our plastic packaging was recyclable

-We validated material concepts, such as recyclable labels and alternatives to plastic 6-pack carriers, to implement in the future to further increase our recyclable or compostable rate

- To improve recyclability, Doritos STAX was launched in the U.K. in a widely recyclable cardboard based triangular tube. 2020 presented unique challenges as COVID-19 impacted the implementation of expected planned conversions of packaging to recyclable formats, at a time when consumption of these formats grew. Many of these transitions are now on track to be completed in 2021 and we continue to move toward our target of having 100% of our packaging be recyclable, compostable or biodegradable.

In 2020:

- PepsiCo joined Pulpex Limited to further develop and scale the world’s first recyclable paper bottle, initially developed by Diageo and Pilot Lite.

- Our investment partner, Circulate Capital Ocean Fund, invested US$19 million in four leading companies in India that are using technology and innovation to scale and transform India’s waste management and recycling value chain.

- PepsiCo signed on to the Digital Watermarks Initiative HolyGrail 2.0, facilitated by AIM, the European Brands Association, aimed at improving the sorting of packaging waste for increased and higher-quality recycling.

Yes

100% reusable, recyclable or compostable

-Exploring the transition of select beverages with a problematic oxygen barrier to more recycle friendly alternatives -Transitioning non-compliant beverage bottle labels to be recycle compatible - Transitioning from green to clear plastic for 7UP across Europe to drive bottle-to-bottle recycling - In collaboration with Whole Foods and other small retailers, PepsiCo Foods North America will pilot new industrial compostable packaging in the second half of 2021 -We will pilot renewable materials for films in the U.K., U.S., and Mexico -Pilots to test circularity of films in Latin America and Europe

Our partners are key to driving sustainable change in the end-to-end packaging value chain. We will continue to engage with key partners to work to increase recycling and composting rates for our packaging by: - Looking for new innovative solutions to our packaging through coalitions like Pulpex - Working with the Consumer Goods Forum and other industry associations to advocate for better collection policy for recycling - Engaging with industry and launching new multi-stakeholder partnerships

- Currently, 22 global markets now offer a PepsiCo product in 100% rPET packaging.

- Naked became the first nationally distributed juice and smoothie brand in U.K. grocery retail to e sold in 100% rPET bottles. The brand made the change across its full range of smoothies, including Naked Machines, Naked Lean and Naked Zing. Naked Juice has been offering 100% rPET bottles in the U.S. since 2009.

- In 2020, TAZO launched its U.S. chilled portfolio in 100% rPET bottles.

- To reach our goal of 25% recycled content in our plastic packaging by 2025, PepsiCo will continue to work to increase collection and recycling rates, advocate for the use of rPET in markets where it is currently prohibited, and work with partners to develop and scale innovative technology.

- We will eliminate all virgin plastic from Pepsi brand beverage bottles sold in nine European Union markets by 2022 as well as continue testing in the U.S. to transition several brands to 100% rPET.

- PepsiCo will continue to work with partners like the Carbios Consortium to scale up enzymatic recycling in order to reduce the amount of PET that becomes waste by being able to recover high-quality PET from hard-to-recycle materials like fibers and opaque plastics.

PepsiCo is investing resources across the company to meet our Sustainable Packaging goals. Not only are we investing in partnerships with NGOs, but also in R&D coalitions with industry peers to support recycling infrastructure and to develop new technologies. We’re also investing in new equipment and staff resources to further the agenda internally.

For product line(s) with available reuse model(s): We have 6 systems that offer reusable packaging solutions including SodaStream, SodaStream Professional, Spire Machines (fountain beverage dispenser), returnable glass and plastic bottles, and Terracycle Loop. These systems cover a number of brands in our portfolio, for example, Pepsi, Mirinda, and 7UP are all offered as returnable bottles in select markets in Latin America, Europe, Africa and Asia.