"When non-compliances are identified through our due

diligence programs, they are addressed through the

implementation of corrective action plans. Each corrective

action plan has a set timeframe, depending on the type of

non-compliance and its severity. Once in place, corrective

action plans are tracked through our respective programs,

which may require an additional on-site audit to verify

remediation of non-compliances. We also take additional

steps to identify and better understand the root cause(s)

of the non-compliances we find. " (Page 7).

When non-compliances are identified through our due diligence programs, they are addressed through the implementation of corrective action plans. Each corrective action plan has a set timeframe, depending on the type of non-compliance and its severity. Once in place, corrective action plans are tracked through our respective programs, which may require an additional on-site audit to verify remediation of non-compliances. We also take additional steps to identify and better understand the root cause(s) of the non-compliances we find.7

In 2017, we identified two forced labor-related non-compliances in the over 1,000 on-site supplier audits conducted or recognized by our Sustainable Sourcing Program. Both instances involved supplier sites in the UK and concerned the compulsory overtime provisions in their human resources policies. In both instances, the sites reviewed our non-compliance findings, identified the root cause of the issue within their operations, and submitted Corrective Action Plans to PepsiCo outlining the actions they would take to remediate the issue within a set timeframe. In both cases, the policies were revised within the set timeframe and verified to be in place during our follow up audit.7