PepsiCo Inc: Disclosure of Regenerative Agriculture Outcomes – As You Sow

Report on Agricultural Practices, Corporate Disclosure, and Sustainable Development Goals

The Impact of Industrial Agriculture on Sustainable Development

Current industrial agricultural practices, characterized by the annual application of over one billion pounds of synthetic pesticides, present significant challenges to achieving multiple Sustainable Development Goals (SDGs).

• SDG 2 (Zero Hunger) & SDG 15 (Life on Land): Pesticide use degrades soil health by eliminating microorganisms essential for nutrient and water retention. This leads to soil erosion and reduced fertility, directly threatening food security and agricultural resilience. The estimated annual loss of $8 billion to global GDP from soil degradation undermines efforts to ensure sustainable food production systems.
• SDG 3 (Good Health and Well-being) & SDG 8 (Decent Work and Economic Growth): Agricultural pesticide use is linked to severe long-term health issues for farm workers and adjacent communities, including cancer and birth defects. Furthermore, an estimated 25 million farm workers suffer from acute poisoning annually, which contravenes the principles of ensuring healthy lives and promoting safe working environments.
• SDG 6 (Clean Water and Sanitation) & SDG 15 (Life on Land): The use of synthetic pesticides contributes directly to air and water pollution and causes significant harm to biodiversity. This includes damage to pollinator populations, which are critical for 35% of global crop production, thereby threatening terrestrial ecosystems.
• SDG 13 (Climate Action): The negative impacts of soil degradation are intensified by climate change, which increases the frequency of extreme weather events such as droughts, floods, and heatwaves, further jeopardizing global food supply chains.

Regenerative Agriculture: A Pathway to Achieving SDGs

Regenerative agriculture offers a systemic solution to mitigate the negative impacts of industrial farming and advance progress on the SDGs. This approach minimizes reliance on synthetic inputs and incorporates practices that restore ecosystem health.

1. Enhanced Soil Health and Food Systems (SDG 2 & SDG 15): By utilizing practices such as reduced tillage, crop rotation, and cover cropping, regenerative agriculture preserves topsoil and enhances soil health, creating more resilient and sustainable food systems.
2. Climate Action (SDG 13): Regenerative practices have a significant potential for carbon sequestration, with research from the Rodale Institute indicating that these methods can sequester more carbon than is emitted annually. Addressing pesticide dependency is critical to realizing this potential for climate mitigation.
3. Reduced Environmental and Health Impacts (SDG 3, SDG 6, SDG 12): By reducing the mass use of synthetic pesticides and fertilizers, regenerative agriculture directly contributes to improved human health outcomes, cleaner water, and more responsible production patterns.

Corporate Accountability in Regenerative Agriculture and SDG Reporting

While PepsiCo has established a goal to promote the adoption of regenerative agriculture, the company does not currently disclose metrics on pesticide use reduction within its supply chain. This lack of transparency represents a significant reporting gap, potentially undermining the credibility of its sustainability claims and its contributions to SDG 12 (Responsible Consumption and Production).

In contrast, industry peers have implemented measurement and reporting mechanisms:

• Lamb Weston: Publicly reports annual pesticide reduction data as a key performance indicator of its regenerative agriculture program.
• Conagra: Measures and publicly discloses the quantity of pesticides avoided through its regenerative agriculture initiatives.
• McCain Foods: Measures pesticide use among its growers via its Regenerative Agriculture Framework Assessment.

Measuring and disclosing pesticide use data is critical for mitigating shareholder risk and demonstrating a tangible commitment to reducing human and environmental harm, thereby aligning corporate practice with global sustainability imperatives.

Resolution and Recommendations for Enhanced SDG Alignment

Shareholders request that PepsiCo issue a report, at reasonable expense and omitting proprietary information, disclosing if and how the company can incorporate pesticide use data into its regenerative agriculture program disclosures. Such a report is a crucial step for PepsiCo to transparently validate its commitment to and progress on key Sustainable Development Goals, including:

• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Integrating these metrics is essential for substantiating the environmental and social benefits of the company’s regenerative agriculture program and ensuring meaningful contributions to global sustainability targets.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 2: Zero Hunger
   • The article connects industrial agriculture’s use of pesticides to decreased soil fertility, soil degradation, and erosion, which in turn “reduce food security.” It promotes regenerative agriculture as a solution to preserve soil health and ensure the resilience of agricultural supply chains.
2. SDG 3: Good Health and Well-being
   • The text explicitly states that agricultural pesticide use “causes long-term health impacts to farm workers and fenceline communities, including asthma, cancer, and birth defects,” and results in the “acute poisoning of 25 million farm workers annually.”
3. SDG 6: Clean Water and Sanitation
   • The article mentions that pesticide use “contributes to air and water pollution,” directly linking the core issue to the degradation of water resources.
4. SDG 8: Decent Work and Economic Growth
   • The article highlights the negative economic impact of unsustainable agricultural practices, stating that soil degradation imposes an “estimated loss of $8 billion annually to global GDP.” It also touches upon the health and safety of workers by mentioning the poisoning of farm workers.
5. SDG 12: Responsible Consumption and Production
   • The entire article revolves around shifting from unsustainable production patterns (industrial agriculture with heavy pesticide use) to sustainable ones (regenerative agriculture). It specifically calls for corporate responsibility and transparency from PepsiCo, urging the company to track and report on pesticide use reduction, similar to its peers.
6. SDG 13: Climate Action
   • The article links agricultural practices to climate change, noting that regenerative agriculture can “sequester more carbon than is emitted annually.” It also points out that climate change, through events like droughts and floods, worsens the material losses from soil degradation.
7. SDG 15: Life on Land
   • The text directly addresses the impact on terrestrial ecosystems, stating that pesticides “decrease soil fertility by killing soil microorganisms,” cause “soil degradation and erosion,” and “directly harm biodiversity, including pollinators critical to 35% of crop production.”

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 2 (Zero Hunger)
   • Target 2.4: “By 2030, ensure sustainable food production systems and implement resilient agricultural practices… that progressively improve land and soil quality.” The article’s central theme is the promotion of regenerative agriculture to preserve soil health and ensure resilient supply chains, directly aligning with this target.
2. Under SDG 3 (Good Health and Well-being)
   • Target 3.9: “By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.” This is directly addressed by the article’s focus on reducing the use of synthetic pesticides, which are described as causing cancer, birth defects, and acute poisoning.
3. Under SDG 6 (Clean Water and Sanitation)
   • Target 6.3: “By 2030, improve water quality by reducing pollution… and minimizing release of hazardous chemicals and materials.” The article’s mention of pesticides contributing to “water pollution” connects directly to this target.
4. Under SDG 8 (Decent Work and Economic Growth)
   • Target 8.4: “…decouple economic growth from environmental degradation…” The article highlights the $8 billion annual GDP loss due to soil degradation, illustrating the economic cost of environmental degradation.
   • Target 8.8: “Protect labour rights and promote safe and secure working environments for all workers…” The mention of “acute poisoning of 25 million farm workers annually” points to the need for safer working environments, free from hazardous chemical exposure.
5. Under SDG 12 (Responsible Consumption and Production)
   • Target 12.4: “…achieve the environmentally sound management of chemicals… and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment.” This target is central to the article’s argument for reducing the “one billion pounds of synthetic pesticides” applied annually.
   • Target 12.6: “Encourage companies… to adopt sustainable practices and to integrate sustainability information into their reporting cycle.” The shareholder resolution requesting PepsiCo to issue a report on its pesticide use data is a direct call to action for this target.
6. Under SDG 13 (Climate Action)
   • Target 13.1: “Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters…” The article notes that regenerative agriculture builds resilience against climate impacts like droughts and floods, which currently exacerbate losses from soil degradation.
7. Under SDG 15 (Life on Land)
   • Target 15.3: “By 2030, combat desertification, restore degraded land and soil… and strive to achieve a land degradation-neutral world.” The focus on soil degradation, erosion, and the restorative potential of regenerative agriculture directly supports this target.
   • Target 15.5: “Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity…” The article’s statement that pesticide use “directly harms biodiversity, including pollinators” aligns with this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Volume of Pesticide Use/Reduction
   • The article explicitly mentions the application of “over one billion pounds of synthetic pesticides annually.” It also highlights that PepsiCo’s peers (Lamb Weston, Conagra) publicly report on “pesticide reduction data” and the “amount of pesticides avoided.” This suggests a direct quantitative indicator for measuring progress on targets 3.9, 6.3, and 12.4.
2. Incidence of Worker Poisoning
   • The statistic of “acute poisoning of 25 million farm workers annually” serves as a direct indicator of the human health impact of pesticide use and can be used to measure progress towards targets 3.9 and 8.8.
3. Economic Loss from Soil Degradation
   • The figure of an “estimated loss of $8 billion annually to global GDP” due to soil degradation is a specific economic indicator relevant to targets 2.4 and 8.4.
4. Area of Land Under Regenerative Agriculture
   • While not a specific number, PepsiCo’s goal to “spread the adoption of regenerative agriculture” implies that the number of acres or percentage of supply chain land converted to these practices is a key metric. This would be an indicator for targets 2.4, 13.1, and 15.3.
5. Corporate Reporting and Disclosure
   • The article’s core request is for PepsiCo to disclose how it can “incorporate pesticide use data in its regenerative agriculture program disclosures.” The existence and quality of such reports by companies serve as a direct indicator for target 12.6.
6. Carbon Sequestration
   • The claim that regenerative agriculture can “sequester more carbon than is emitted annually” implies that the amount of carbon sequestered in soil is a measurable indicator for climate action (SDG 13).

4. Table of SDGs, Targets, and Indicators

Source: asyousow.org