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Performance with Purpose - Creating a Better Tomorrow for Future Generations - PepsiCo Corporate Citizenship Report 2008
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Global Reporting Initiative
The Global Reporting Initiative (GRI) is a system of reporting on financial, social and environmental programs and progress.

Strategy and Analysis

GRI Indicator

PepsiCo Location

1.1 Statement from the most senior decision maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy. Letter from Indra Nooyi
1.2 Description of key impacts, risks, and opportunities. Risk Management
Corporate Governance
Human Sustainability - Our Management
Environmental Sustainability - Our Management
Employee Learning and Development
Expanding Opportunities through Diversity and Inclusion

Organizational Profile

GRI Indicator

PepsiCo Location

2.1 Name of the organization. PepsiCo, Inc.
2.2 Primary brands, products, and/or services. Our Business
Our Economic Impacts
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Our Business
2.4 Location of organization?s headquarters. Purchase, New York, United States
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Our Operations
2.6 Nature of ownership and legal form. Form 10-K
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Our Operations
Our Business
2.8 Scale of the reporting organization, including:
  • Number of employees
  • Net sales (for private sector organizations) or net revenues (for public sector organizations)
  • Total capitalization broken down in terms of debt and equity (for private sector organizations)
  • Quantity of products or services provided.
Our Business 
Our Operations 
2008 Annual Report 
Form 10-K
2.9 Significant changes during the reporting period regarding size, structure, or ownership including:
  • The location of, or changes in operations, including facility openings, closings, and expansions; and
  • Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations).
Our Business 
Our Operations
2.10 Awards received in the reporting period. Awards and Recognitions – Select Listing
3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Fiscal year 2008
3.2 Date of most recent previous report. 2007/2008
3.3 Reporting cycle (annual, biennial, etc.). Annual
3.4 Contact point for questions regarding the report or its contents. PerformancewithPurpose@pepsico.com

Report Scope and Boundary

GRI Indicator

PepsiCo Location

3.5 Process for defining report content. Overview
3.6 Boundary of the report. Overview
3.7 State any specific limitations. Overview
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. Overview
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Overview
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such restatements (e.g., mergers/ acquisitions, change of base years/periods, nature of business, measurement methods). Overview
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Overview

GRI Content Index

GRI Indicator

PepsiCo Location

3.12 Table identifying the location of the Standard Disclosures in the report. G3 Indicators
3.13 Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s). Environmental Sustainability – Statement from Bureau Veritas

Governance

GRI Indicator

PepsiCo Location

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Corporate Governance
4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization's management and the reasons for this arrangement). Corporate Governance
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Corporate Governance
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Corporate Governance – Communications with the Board of Directors
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance). Corporate Governance – Board and Executive Compensation
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Corporate Governance – Board and Executive Compensation, Conflicts of Interest
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental, and social topics. Corporate Governance – Board and Executive Compensation
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Mission, Values, and Guiding Principles
Code of Conduct – Code and our Policies 
Human Sustainability – Introduction 
Environmental Sustainability – Introduction
Talent Sustainability – Introduction
4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Risk Management 
Corporate Governance
4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. Corporate Governance – Annual Performance
Evaluation of the Board
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. Human Sustainability
Climate Change
Risk Management
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Memberships and Partnerships
4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:
  • Has positions in governance bodies;
  • Participates in projects or committees;
  • Provides substantive funding beyond routine membership dues; or
  • Views membership as strategic.
Memberships and Partnerships
4.14 List of stakeholder groups engaged by the organization. Our Stakeholders
4.15 Basis for identification and selection of stakeholders with whom to engage. Our Stakeholders
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Our Stakeholders
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Our Stakeholders 
Carbon Trust Letter

Economic Performance Indicators

GRI Indicator

PepsiCo Location

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Our Economic Contributions
EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change. Risk Management
Climate Change
EC3 Coverage of the organization's defined benefit plan obligations. Employee Benefit Programs
EC4 Significant financial assistance received from government. Our Economic Contributions Our Economic Contributions
EC6 Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation. Our Economic Contributions
Agriculture
EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. Talent Sustainability – Expanding Opportunities through Diversity and Inclusion

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement.

The PepsiCo Foundation
Human Sustainability – Leaving a Positive Footprint on Society
Environmental Sustainability – Leaving a Positive Footprint on Society
Talent Sustainability – Leaving a Positive Footprint on Society

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. Our Economic Impacts
Our Stakeholders

Environmental Performance Indicators

GRI Indicator

PepsiCo Location

EN1 Materials used by weight or volume. Packaging and Solid Waste – Global Packaging by Weight
EN2 Percentage of materials used that are recycled input materials. Packaging and Solid Waste
EN3 Direct energy consumption by primary energy source. Environmental Sustainability – Introduction
EN4 Indirect energy consumption by primary source. Environmental Sustainability – Introduction
EN5 Energy saved due to conservation and efficiency improvements. Environmental Sustainability – Introduction
EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Climate Change
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Climate Change - Green Building and Design
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. Agriculture – Biodiversity
EN16 Total direct and indirect greenhouse gas emissions by weight. Climate Change
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Climate Change
EN 26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Environmental Sustainability
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce. Climate Change – Fleet, Beverage Coolers and Vending Machines

Social Performance Indicators

GRI Indicator

PepsiCo Location

LA1 Total workforce by employment type, employment contract, and region. Our Business
Our Operations
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Employee Benefit Programs
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Talent Sustainability —Introduction by Greg Heaslip
HIV/AIDS
Health and Safety
LA10 Average hours of training per year per employee by employee category. Employee Learning and Development
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Employee Learning and Development
LA12 Percentage of employees receiving regular performance and career development reviews. Talent Sustainability -- Introduction by Leslie Teichgraeber
Employee Learning and Development
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Expanding Opportunities through Diversity and Inclusion
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Human Rights
Responsible and Sustainable Sourcing – Supplier Code of Conduct
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Human Rights
Code of Conduct

Society Performance Indicators

GRI Indicator

PepsiCo Location

SO3 Percentage of employees trained in organization's anti-corruption policies and procedures. Code of Conduct
SO4 Actions taken in response to incidents of corruption. Code of Conduct
SO5 Public policy positions and participation in public policy development and lobbying. Memberships and Partnerships. Memberships and Partnerships
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Our Economic Contributions and Contributions and Community

Product Responsibility Performance Indicators

GRI Indicator

PepsiCo Location

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Human Sustainability
Responsible and Sustainable Sourcing
Environmental Sustainability – Monitoring
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Helping Consumers Make Better Choices with Nutrition Labeling
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Consumer and Customer Relations
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Engaging in Responsible Marketing and Advertising
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