Sustainability Report

Our approach to sustainability remains grounded in our Performance with Purpose mission: a balance of achieving continued financial success while leaving a positive imprint on society. Specifically, we have defined three areas of influence: human, environmental, and talent sustainability.

• Human Sustainability
  Nourishing our consumers through the products we offer—from treats to healthy eats—and through our efforts to encourage more active lifestyles.
• Environmental Sustainability
  Protecting our natural resources and operating in a way that minimizes our environmental footprint.
• Talent Sustainability
  Involving and empowering people, helping them to realize their potential, renew themselves, and achieve success.

This report provides a review of all three areas and offers a more in-depth look at our company's efforts with respect to water, climate change, agriculture, packaging and waste.

We believe that the power of our global workforce, coupled with our operational capabilities and international reach, provide our company with a unique opportunity to have a positive impact on society. Our employees are committed to living PepsiCo's sustainability vision, which is to continuously improve the world in which we operate, creating a better tomorrow for this generation, as well as future generations.

This report covers the 2008 fiscal year.

We have followed the G3 Guidelines of the Global Reporting Initiative. Our report includes PepsiCo operations that we own and operate. In the United States and in some other countries, independent franchise bottlers manufacture and distribute our beverage products. Our three largest bottlers in the U.S. are The Pepsi Bottling Group (PBG), PepsiAmericas, Inc., and Pepsi Bottling Ventures LLC. Our ownership of each of these bottlers is less than 50 percent, and because we do not control these bottlers, we do not consolidate their results or include their information in this report except as noted in the text.

Data is prepared following PepsiCo-established metrics and protocols, which often follow external methods. Comments on this Corporate Citizenship Report can be submitted to PerformanceWithPurpose@pepsico.com.