Friends Fiduciary has co-filed a shareholder proposal, with lead filer Mercy Investment Services, at PepsiCo requesting a report assessing the effectiveness of the company’s human rights due diligence across its operations, franchisees, and supply chains.
PepsiCo has existing human rights policies that are in alignment with international standards, however, current disclosures do not demonstrate whether these systems actually work in practice to identify, mitigate, and remedy risks. There is significant exposure to human rights issues in high-risk sectors and regions such as agricultural supply chains (e.g., sugarcane in India and palm oil in Malaysia and Latin America) and ongoing operations in Russia, creating potential legal, regulatory, reputational, and financial risks for the company and its shareholders. Stronger, outcome-based reporting would improve investor understanding of risk management, governance oversight, and long-term business sustainability without requiring new policies or sensitive disclosures, thereby supporting more informed shareholder decision-making.
Proposal 5 is on the company’s proxy and will be presented at PepsiCo’s annual general meeting on Wednesday, May 6, 2026.
Click here to access PepsiCo’s proxy to read the full proposal (Proposal 5) and here to read the investor rationale for support.