PepsiCo Annual Report 2001

PepsiCo has a long tradition of corporate citizenship. In 2001 we continued to support a wide range of important efforts.

Community

Through the PepsiCo Foundation and our operating divisions, we made grants totaling more than $21 million.
The funds supported a variety of projects, focusing on education, diversity, humanitarian efforts and other areas of need. For example:

$1 million went to fund business school scholarships at Howard University.
More than $1.4 million was designated to create the Frito-Lay Leadership Center at California State University at Los Angeles. The funds support scholarships, a leadership program, an outreach effort aimed at high school students and a program to promote diversity.
Nearly $2.3 million was donated to match employee contributions to more than 1,000 nonprofit organizations.

Plus, we contributed millions of dollars' worth of our products and services. We encourage employee volunteerism through a double-match of contributions to organizations in which they are active, as well as through volunteer days and other opportunities. In addition, PepsiCo is involved in hundreds of community organizations, including many focused on diversity and inclusion.

Suppliers

In 2001 we purchased a record $526 million worth of goods and services from minority-owned and women-owned companies.
Purchasing from minority-owned and women-owned businesses is a long-standing tradition at PepsiCo. Suppliers are invited to visit our web site to learn more.

Employees and Business Partners

As our markets grow increasingly diverse, we've made a very focused effort to promote diversity as a genuine competitive advantage.
Among other initiatives, this effort includes:

Appointing executives dedicated to managing diversity.
Developing multi-year plans to promote diversity.
Creating diversity advisory boards.
Creating networks to mentor and support minority and female employees.

These efforts have been widely recognized. Fortune magazine ranked PepsiCo among America's "Best Companies for Minorities." Minority MBA magazine named PepsiCo one of its "Top Companies for Minority MBAs."

Environment and Safety

Our environmental and safety records are strong.
Our beverage containers are recyclable and we have consistently reduced the amount of materials used to manufacture our containers. Pepsi-Cola cans contain more than 50% previously used aluminum cans. Our glass bottles contain up to 35% previously used glass. In the United States, Pepsi-Cola will begin using recycled plastic in 2002, with a goal of using 10% recycled material in its plastic bottles by 2005.

All our divisions recycle. Tropicana recycles orange and grapefruit peels as cattle feed; Frito-Lay similarly recycles leftover potato peels. Frito-Lay reuses millions of delivery boxes that once were discarded after a single use.

In the area of safety, the Occupational Safety and Health Administration named four more PepsiCo facilities to its top "STAR" status as part of the agency's Voluntary Protection Program.

Response to September 11th Disaster
On September 11th our world changed. In the wake of the terrorists' attacks, the PepsiCo Foundation committed more than $5 million to assist those affected by the disaster. An additional $1 million was given to the Robin Hood Foundation to help low- income victims.
While none of our employees were injured in the attacks, a number of them lost loved ones. To assist those families, employees raised more than $126,000 which PepsiCo matched.
We also completed an exhaustive review of our processes to insure that we are taking the precautions necessary to provide consumers with safe products and employees with a safe workplace.