PEPSICO ISSUES NEW $1.25 BILLION 10-YEAR GREEN BOND AS COMPANY ACCELERATES PEP+ TRANSFORMATION

BUY, NY, July 20, 2022 /PRNewswire/ — PepsiCo, Inc. (NASDAQ: PEP) PepsiCo has announced the closure of a new $1.25 billion 10 years Green bond. The Company will use an amount equivalent to the net proceeds of the offering to finance eligible green projects that will focus on its peps+ (PepsiCo Positive) – the company’s end-to-end strategic transformation that places sustainability and human capital at the center of how it will create growth and value. Investments under PepsiCo’s new green bond will focus on investments to implement key environmental sustainability initiatives under two pillars of its pep+ program: positive agriculture and positive value chain. This will help the company achieve its goal of operating within planetary boundaries and inspiring positive change for the planet and people.

The new Green Bond is PepsiCo’s second since 2019, with $858 million in equivalent product of $1 billion first green bond ever allocated to eligible green projects on six continents in the categories of sustainable plastics and packaging, decarbonizing our operations and supply chain, and water sustainability.

“We were one of the first agribusiness companies to issue a green bond and this seed funding has so far been instrumental in our sustainable transformation,” said Jim Andre, Chief Sustainability Officer, PepsiCo. “While tackling the climate crisis requires a collaborative effort, it is clear that the private sector must play a leading role. Our new Green Bond will be key to channeling investment into the critical areas needed to build a more sustainable and resilient food system.

PepsiCo’s new Green Bond Framework outlines categories to which funding can be directed, each aligning with the United Nations’ Sustainable Development Goals (SDGs), which include:

  • Regenerative agriculture: PepsiCo’s business begins with agriculture, sourcing more than 25 crops and ingredients from more than 30 countries. As part of his positive agriculture A pillar of pep+, PepsiCo is working to source key ingredients such as potatoes, whole corn and oats in ways that accelerate regenerative agriculture. Investments from the new Green Bond can be used to adopt regenerative agriculture practices across PepsiCo’s supply chain, including farmer training, practices to reduce fertilizer, and improvement and improvement projects. watershed improvement.
    Alignment of UN SDGs: SDG 2 – Zero hunger and SDG 8 – Decent work and economic growth
  • Decarbonization and climate resilience within our operations and value chain: By 2030, the Company aims to reduce its absolute greenhouse gas (GHG) emissions by more than 40% compared to 2015, more than double its previous climate target. The equivalent net proceeds of the green bond can be used for initiatives aimed at achieving these goals, including on-site sustainable energy generation, such as solar installations, investments in greener buildings that receive certifications verified by third parties, energy efficiency and/or the reduction of GHG emissions in the facilities. , and upgrading vending and cooling equipment. Funding can also be used for the expansion of cleaner transport, such as electric vehicles.
    Alignment of UN SDGs: SDG 7 – Affordable and Clean Energy, and SDG 11 Sustainable Cities and Communities
  • Circular economy and reduction of virgin plastic waste: One of PepsiCo’s main goals is to strive to use 50% recycled plastic in its packaging by 2030. The company is already one of the largest users of food-grade rPET (recycled PET plastic) in the world, and the new Green Bond will allow PepsiCo to continue its work to increase the use of packaging more sustainable products, including recycled, compostable and reusable materials. Additionally, PepsiCo’s new Green Bond Framework allows the company to direct funding toward projects that strengthen recycling infrastructure and increase recycling rates in key markets.
    Alignment of UN SDGs: SDG 9 – Industry, innovation and infrastructure, and SDG 12 – Responsible consumption and production
  • to chase positive net water impact in owned operations and throughout the PepsiCo value chain, including projects that contribute positively to communities. Water stewardship has long been a top priority for PepsiCo and PepsiCo’s vision is to become Net Water Positive in its operations by 2030 by reducing absolute water consumption and replenishing in the local watershed. more than 100% of the water used. New proceeds equivalent to Green Bonds can be earmarked for water recycling and reuse projects, including water efficiency improvements, as well as investments to replenish watersheds in areas at high water risk through initiatives such as tree planting, rainwater harvesting and wetland rehabilitation. PepsiCo is also looking to fund the scaling up of drip irrigation or other water-saving technologies for farmers who supply the company with key crops and ingredients.
    Alignment of UN SDGs: SDG 6 – Clean water and sanitation, SDG 12 – Responsible consumption and production, and SDG 15 – Life on land

As part of its green bond governance, PepsiCo plans to publish an annual product allocation update, for the duration of the green bond and until all proceeds have been allocated. The full framework can be viewed here and the annual update will be reported publicly on PepsiCo website.

PepsiCo recently released its first environmental, social and governance (ESG) summary since the launch of pep+, showcasing progress against each of its key pillars. The summary can be consulted here.

For more information please contact [email protected]

About PepsiCo

PepsiCo products are enjoyed by consumers more than a billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $79 billion in net revenue in 2021, driven by a complementary portfolio of convenience foods and beverages that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that each generate over $1 billion in estimated annual retail sales.

Leading PepsiCo is our vision to be the global leader in convenient food and beverage by winning with PepsiCo Positive (pep+). pep+ is our end-to-end strategic transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for the planet and people . For more information, visit www.pepsico.com.

Caution

This release contains statements reflecting our beliefs 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 identified by the inclusion of words such as “objective”, ” anticipate”, “believe”, “lead”, “estimate”, “expect”, “goal”, “intend”, “may”, “plan”, “project”, “strategy”, ” target” and “will” or similar statements or variations of these terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such statements, including risks associated with the deadly conflict in Ukraine; the impact of COVID-19; future demand for PepsiCo’s products; damage to PepsiCo’s reputation or goodwill; product quality and safety issues or concerns; PepsiCo’s ability to compete effectively; water shortage; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo’s manufacturing or supply chain operations, including increased costs of commodities, packaging, transportation, labor and other inputs; political or social conditions in the markets where PepsiCo’s products are manufactured, produced, distributed or sold; future cyber incidents and other disruptions to our information systems; the inability to complete or manage strategic transactions; climate change or measures to combat climate change; the imposition or proposed imposition of new or increased taxes on PepsiCo’s products; the imposition of limitations on the marketing or sale of PepsiCo’s products; changes in laws and regulations relating to the use or disposal of plastics or other packaging materials; non-compliance with applicable laws and regulations; and potential liabilities and costs arising from litigation, claims, legal or regulatory proceedings, inquiries or investigations. For additional information about these and other factors that could cause PepsiCo’s actual results to differ materially from those indicated in this document, 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 these 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.

SOURCEPepsiCo, Inc.

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