PepsiCo has expanded regenerative, restorative and protective practices to 4.7 million acres globally, representing progress toward its goal of 10 million acres by 2030.

Momentum in 2025 was driven by enhanced farmer engagement and landscape-level innovation, powered by on-the-ground collaboration with farmer-focused partners. Together, PepsiCo and these partners co-designed locally relevant programs, aligned incentives to both environmental and economic outcomes, and supported adoption through technical assistance, peer networks and data-driven insights. PepsiCo launched Supporting Trusted Engagement and Partnership, (STEP) Up for Agriculture, a collaboration with Unilever and several other large food and beverage companies and retailer customers to help strengthen farmer-facing organizations. Through tailored advisory support and a train-the-trainer model, the initiative aims to build capabilities, advance regenerative practices and support more sustainable supply chains.

PepsiCo says it continues to make steady progress toward its goal to sustainably source 90% of its key ingredients and progress volumes (10% or less) that face systemic barriers towards being sustainably sourced in accordance with its guidelines by 2030. Progress toward this goal covers in-scope ingredients and materials greater than 0.01% of annual volume-based supply, for use in wholly owned manufacturing facilities, as well as PepsiCo's direct purchases on behalf of contract manufacturers and co-packers. Progress does not include purchases by joint ventures, franchise bottlers, contract manufacturers and co-packers or unplanned spot purchases.

As of 2025:

• 70% of key ingredients are now sustainably sourced
• Approximately 2% of volumes are actively progressing toward more sustainable practices under the company's "Engaged" pathway

These efforts are supported by PepsiCo's Sustainable Sourcing Guidelines and its Sustainable Farming Program, designed to help farmers adopt practices that can strengthen environmental performance and long-term agricultural resilience.

Since 2021, PepsiCo has supported approximately 224,000 people across its agricultural supply chains and communities with programing designed to improve economic prosperity and farmer and farm worker security — nearing its goal to positively impact more than 250,000 livelihoods by 2030.

Key programs contributing to this progress include:

• She Feeds the World (with CARE): Expanding food security, nutrition and income opportunities for smallholder farmers
• Collaborative Farming Program (India): End-to-end farmer support through demonstration farms, advantaged seed varieties and leadership engagement. The program provides agronomic advisory on best practices, showcases advanced technologies and builds capabilities in regenerative and sustainable farming
• Agrovita (with Proforest): Supporting smallholders in Mexico to adopt sustainable practices and form rural cooperatives
• 1,000 Farmers Endless Prosperity (Türkiye): Supporting farmers in Türkiye through personalized advisory support and digital tools that improve irrigation, fertilizer use and crop health

These initiatives are guided by PepsiCo's Livelihoods Implementation Framework for Engagement (LIFE), which measures outcomes across economic, social and empowerment indicators.

PepsiCo continues to expand strategic collaborations globally to accelerate impact at scale. Collaborations with organizations such as Practical Farmers of Iowa, Cool Soils, Rimba Collective and Milhão are supporting the adoption of regenerative, restorative and protective practices across millions of additional acres while driving greenhouse gas reductions.

The company is also investing in innovation — from precision agriculture tools to climate resilience platforms and lower-carbon inputs — to enable farmers to adapt to climate change and enhance productivity. PepsiCo supported more than 15 global innovation projects in 2025 through its Positive Agriculture Outcome (PAO) Accelerator and reached over 1,100 farmers through demonstration farms, trials and training programs.

Five years into its pep+ strategy, PepsiCo sees an opportunity to deepen positive impact in farming communities. Through 2030, PepsiCo plans to focus on:

• Building farmer, community, soil and climate resilience as well as biodiversity and watershed resilience through collaboration with stakeholders in its supply chain
• Embedding impact across positive agriculture initiatives to help drive sustained, scalable outcomes
• Supporting transformation of farming ecosystems in key sourcing landscapes

In 2025, PepsiCo continued working to enhance traceability, leverage technology and strengthen collaborations. Deforestation remains a core aspect of the company's Positive Agriculture agenda, and performance towards related goals will be reported later in 2026.