Second-Party Opinion Download

Sustainalytics is of the opinion that the PepsiCo, Inc. (“PepsiCo”) Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The three eligible project categories for the use of proceeds are aligned with the seven Green Bond Principles project categories – (i) Eco-efficient and/or Circular Economy Adapted Products, (ii) Renewable Energy, (iii) Energy Efficiency, (iv) Clean Transportation, (v) Green Buildings, (vi) Sustainable Water Management, and (vii) Environmentally Sustainable Management of Living Natural Resources and Land Use – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers the eligible categories to have positive environmental impacts and to advance the UN Sustainable Development Goals, specifically 6, 7, 9, 11, 12, and 15.

PROJECT EVALUATION/SELECTION

PepsiCo’s Sustainability Team will assess and determine eligible projects. The final approval will be followed by the recommendation of allocation of proceeds and provision of description of eligible projects to the PepsiCo’s Finance department. This is in line with the market practice.

MANAGEMENT OF PROCEEDS

PepsiCo’s Finance Department will track the net use of proceeds using its internal system. Pending allocation, the net proceeds may be temporarily invested in cash, cash equivalents, short-term investments, or used to repay other borrowings. This is in line with market practice.

REPORTING

PepsiCo intends to publish an annual update on its website, until full allocation. It will include the amounts allocated on category level, additional descriptions of select eligible projects, as well as relevant impact metrics, where feasible. The reporting will be accompanied by management’s assertion of the amount of the net proceeds that was allocated to eligible projects, and an examination report from an independent accountant on such assertion. Sustainalytics considers this in line with market best practice.