Resolved:  Shareholders of PepsiCo Inc. (?PepsiCo?) request that the Board of Directors issue a report, at reasonable cost and omitting proprietary information, detailing the effectiveness of PepsiCo?s efforts to uphold its human rights standards throughout its sugar supply chain in India. The report should address working conditions and recruitment practices that can contribute to allegations of forced labor, child labor, a disproportionately high rate of hysterectomies, and other human rights abuses affecting sugarcane cutters. The report should be publicly disclosed within one year from PepsiCo?s 2025 annual meeting. Whereas: The New York Times [1] has identified serious human rights abuses, including forced labor, child labor, and gender-based exploitation, in India?s sugar production, implicating brands, including PepsiCo. According to the Times, PepsiCo has ?helped turn the Indian state of Maharashtra into a sugar-producing powerhouse.? [2] The Times accuses PepsiCo of financing ?a brutal system of labor that exploits young girls? [3] and their families who are recruited to cut sugarcane for PepsiCo?s largest international franchisee, responsible for 90% of the company?s beverage sales in India. [4] These human rights abuses are linked to a deeply flawed and opaque recruitment system, where sugar mills rely on labor contractors to hire workers from rural areas. [5] Labor contractors typically offer these workers advances to cover migration costs, then deduct wages for medical leave or unworked days, effectively trapping workers in cycles of debt bondage, a form of forced labor. [6]   Children are subjected to illegal labor, working in hazardous conditions alongside their parents instead of attending school. An especially severe consequence for female workers is the disproportionately high rate of hysterectomies. Facing financial entrapment and harsh working conditions without access to proper sanitation, women feel pressured to undergo unnecessary surgeries to avoid menstruation-related work disruptions. Labor contractors provide loans for these procedures, indebting workers even further. [7] PepsiCo committed to addressing forced labor and human trafficking risks through its Modern Slavery and Human Trafficking Statement, Supplier Code of Conduct , and leadership in multi-stakeholder initiatives, including Bonsucro. Additionally, PepsiCo publicly committed to eradicate recruitment fees globally by 2026 through the Employer Pays principle [8] and identified sugar as high-risk in a 2022 Human Rights Impact Assessment. [9] However, PepsiCo does not disclose sufficient information to gauge the effectiveness of the company?s efforts to mitigate human rights risks in its sugar supply chain. The reported persistent labor abuses, including the weaknesses of Bonsucro?s certification program, [10] suggest gaps in PepsiCo?s human rights due diligence approach.  Combined with increasing global regulatory requirements mandating supply chain due diligence and disclosure to which the company is subject, these issues may contribute to enterprise, legal, regulatory, and reputational risks for PepsiCo and its shareholders. This report will enable investors to assess the effectiveness of the company?s due diligence efforts and help PepsiCo identify, prioritize, remedy, and avoid adverse impacts throughout its Indian sugar supply chain. Strengthening its commitment to human rights should enhance long-term shareholder value by mitigating the associated risks.    [1] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html [2] https://www.nytimes.com/video/world/asia/100000009363281/sugar-industry-exploitation-of-women.html [3] https://www.nytimes.com/video/world/asia/100000009363281/sugar-industry-exploitation-of-women.html [4] https://www.varunbeverages.com/vbl-at-a-glance/ [5] https://www.oxfamindia.org/sites/default/files/2020-02/%23Human%20Cost%20of%20Sugar_Maharashtra%20Case.pdf [6] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html [7] https://www.nytimes.com/2024/03/24/world/asia/india-sugar-cane-fields-child-labor-hysterectomies.html [8] https://www.pepsico.com/our-impact/esg-topics-a-z/forced-labor [9] https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/2022-pepsico-salient-human-rights-issues-update.pdf?sfvrsn=43ad8aaa_6 [10] https://www.nytimes.com/2024/07/30/world/asia/sugar-human-rights-bonsucro-india-hysterectomies.html