Areas of strength
- Nutrition is one of the core pillars of PepsiCo’s overarching growth strategy and is articulated through its 'Performance with Purpose' concept.
- Well-established management systems, led by a wide range of executives and senior staff, guide the company’s work to improve nutrition, demonstrating the emphasis it places on nutrition. Notably, nutrition-related goals are linked to components of executive compensation, a best practice.
- As in 2013, PepsiCo's staff wellness program, Healthy Living, is globally available and open to employees and their families, which is a leading practice.
- To measure the effectiveness of its employee well-being program, PepsiCo partnered with RAND Corporation to calculate the return on investment (ROI) of its program over a ten-year period, an advanced approach for the evaluation of such a program. The results showed that the company’s lifestyle management program resulted in weight loss and a reduction in employee absenteeism.
- PepsiCo discloses the percentage of markets in which it has applied its labeling commitments in full, and discloses its compliance with this commitment. Only one other company analyzed achieved this level of disclosure relating to product labeling.
- PepsiCo’s lobbying activities in the U.S. include a focus on obesity prevention.
Areas for improvement
- PepsiCo has dropped in ranking since the 2013 Global Index. This was principally due to limited disclosure and a lack of reporting on consolidated data.
- PepsiCo provides examples of R&D investment to improve the nutritional quality of products, but does not make a formal commitment to continue this type of investment or to set targets.
- Reformulation targets to reduce levels of four major negative nutrients have been set, but for some products in key markets only. PepsiCo could improve its practices and come closer to leading practice by applying these targets across all portfolios globally and by setting clear deadlines for achieving them. Similarly, the company aims to increase levels of fruits and wholegrains in some products, but has not set targets or timelines for doing so. Furthermore, the company could improve its performance relating to product reformulation by putting in place monitoring systems.
- Unlike in the 2013 Global Index, there is no evidence of initiatives to enhance the affordability or accessibility of healthy products.
- Disclosure on support to breastfeeding mothers and its maternity leave policy is limited while the disclosure on stakeholder engagement has deteriorated since 2013. Notably, PepsiCo did not disclose how experts’ feedback was used in developing or executing its nutrition strategy.
- In contrast to the 2013 Global Index, there is no evidence of a strategic review of potential commercial opportunities linked to developing products for the undernourished, and the company channels its undernutrition efforts through philanthropy only.