Keurig Dr Pepper : 2023 Corporate Responsibility Report

2023 Corporate Responsibility Report

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

TABLE OF CONTENTS

03 A LETTER FROM OUR CEO AND CHIEF CORPORATE AFFAIRS OFFICER

04	OVERVIEW	35	PEOPLE & COMMUNITIES
05	Corporate Responsibility	36	Progress & Highlights
06	2023 Goals & Progress	37	Strategy
07	ENVIRONMENT	38	Employee Development, Engagement & Well-Being
39	Diversity & Inclusion
08	Progress & Highlights	41	Workplace Health & Safety
09	Strategy	42	Community Engagement
10	Climate Action
13	Water Use & Stewardship	44	GOVERNANCE
15	Packaging & Circular Economy	45	Strategy
19	SUPPLY CHAIN	47	Ethical Business Practices
48	ESG Materiality & Stakeholder Engagement
20	Progress & Highlights
21	Strategy	50	ABOUT THIS REPORT
23	Responsible Sourcing	51	Glossary
25	Nature	53	Endnotes
27	Livelihoods	54	APPENDIX
28	HEALTH & WELL-BEING
54	Data Summary
29	Progress & Highlights	60	Goal Methodology
30	Strategy	64	GRI Index
31	Choice	71	SASB Standards
32	Access	75	TCFD

1. Transparency & Marketing
2. Product Quality & Safety

2023 Corporate Responsibility Report 2

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

A LETTER FROM OUR CHIEF EXECUTIVE OFFICER

AND CHIEF CORPORATE AFFAIRS OFFICER

Drink Well. Do Good. For years, these words have defined our approach to corporate responsibility for environmental and social issues. Recently, we decided to elevate our aspiration to Drink Well and Do Good to be our company purpose as part of our evolved strategic framework. This framework provides a blueprint to guide how we direct our time, attention and resources - and the values we practice while pursuing our goals. It is grounded in our culture and driven by the incredible people of Keurig Dr Pepper (KDP).

As a leader in the beverage industry, we have the opportunity and the responsibility to enhance every beverage occasion from dawn to dusk, aspiring to create a positive impact on the lives we touch and the places where we operate. This includes our consumers, our employees, everyone with whom we do business and, importantly, the communities and environment all around us.

Our purpose supports an impactful, multi-year agenda against which we continuously measure and report our progress, as you'll read about in these pages. Here are a few of the highlights of our efforts in 2023 to advance our sixteen public goals for corporate responsibility:

Environmental impact - We made significant progress toward our 2030 climate targets, including a 21% reduction in Scope 1 and 2 emissions and a 12% reduction in Scope 3 emissions in select categories since 2018. We also continued to support a circular economy, achieving a 15% virgin plastic reduction across our packaging portfolio since 2019. This fall, we'll begin testing K-Rounds, our innovative plastic and aluminum-free coffee pods, to be used in our new Keurig Alta brewer.

Sustainable supply chains - We supported regenerative agriculture and conservation practices on more than 43,000 acres of land, which contributed to building supply chain and climate resiliency. We also continued to deliver on our responsible sourcing commitment and, in 2023, we responsibly sourced 100% of our coffee and cocoa.

Health and well-being - We advanced our work to offer consumers more balanced beverage choices, with 59% of our product portfolio providing positive hydration. We also expanded distribution of our better-for-you offerings in new and varied markets, including Chicago where we additionally collaborated with local community partners and a regional grocery chain to host a food and beverage drive, sponsor a fitness event and provide samples of our better-for-you products in-store.

People and culture - We activated our multi-year community impact partnership with the Red Cross and created many opportunities for our employees and customers to participate in blood drives, contribute to food drives and support emergency relief efforts through donations and volunteer efforts. We also continued to cultivate a culture of top beverage talent with a challenger mindset and furthered our diversity and inclusion goals. Of note, our female representation of Director+ roles reached 32% in 2023, versus our baseline of 26% in 2020.

It's an exciting time at KDP - a time of real progress and great possibility. With our elevated company purpose guiding us, an evolved strategic framework defining our next steps and our employees' collective desire to make a positive impact with every drink, we are poised to build upon our progress and learnings of the past year. We cannot wait to see what Team KDP can achieve together in the years ahead.

TIM COFER	MONIQUE OXENDER
Chief Corporate
Chief Executive Officer
Affairs Officer

2023 Corporate Responsibility Report 3

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

OVERVIEW

OUR COMPANY

KDP is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. Driven by a purpose to Drink Well. Do Good., our approximately 28,000 employees aim to enhance the experience of every beverage occasion and to make a positive impact for people, communities and the planet.

STRATEGIC FRAMEWORK

OUR PURPOSE		OUR VISION
Drink Well. Do Good.		A beverage for every need, anytime, anywhere

North American Category Leadership1

#1 single-serve coffee brewing systems in the U.S. and Canada

#1 flavored carbonated soft drinks in the U.S. and Canada; #2 in Mexico

#2 premium waters in the U.S.; #1 mineral water in Mexico

#2 shelf-stable premium ready-to-drink teas in the U.S.

#1 apple juice in the U.S.; #1 tomato seafood cocktail in Canada and Mexico

#1 mixers in the U.S.; #1 low alcohol cocktail in Canada

125+

Owned, Licensed and Partner Brands

~28,000

Employees

30

Manufacturing

Locations

150+

Principal

Warehouses/

Distribution Centers

		OUR STRATEGIES
Champion		Shape our		Amplify our			Generate		Dynamically
consumer-obsessed		now and next		route to market			fuel for		allocate
brand building		beverage portfolio		advantage			growth		capital
		OUR CULTURE
		Top beverage talent with a challenger mindset
Team First // Deliver Big	// Think Bold //	Be Fearless and Fair

2023 AWARDS & RECOGNITION

$1.9B

International

$4.1B		$14.8B		$8.8B
	TOTAL NET
U.S. Coffee		SALES		U.S. Refreshment
				Beverages

Canada's Top 100 Employers	CDP Score: A- on Climate	CDP Supplier Engagement Leader:
and A- on Water	A on Climate Change
	Human Rights Campaign	Mexico Center of Philanthropy
Forbes America's Best	Foundation Equality 100 Winner:
(ESR)'s Best Socially
Employers for Women	Leader in LGBTQ+
Responsible Companies
	Workplace Inclusion
Newsweek America's Most	TIME World's Best Companies	USA Today America's
Responsible Companies	Climate Leaders

2023 Corporate Responsibility Report 4

CORPORATE RESPONSIBILITY

Overview

Environment

Supply Chain

Health & Well-Being

People & Communities

Governance

Appendix

Our ambition is to ensure our beverages make a positive impact with every drink. We focus on our greatest opportunities for impact in the environment, our supply chain, as well as for health and well-being, people and communities. We are committed to transparency of corporate responsibility strategies, programs, progress and governance.

AN INTEGRATED APPROACH

Corporate responsibility issues are fundamentally integrated. We continue to see the intersection and interconnectedness of the work in one area create a positive outcome in another.

In 2024 and beyond, we are working to maximize our integrated approach to advance our corporate responsibility strategy. By adding measurement for related social and environmental impacts for the topics in the graphic, we are creating overlapping and interconnected systems within KDP's operations and across our value chain - ultimately helping to build resiliency and delivering on our

E	m

&
y n
t o
i i
s s
r
	u
el
vc
i	n
D
I

p

l

o H

		e
y	e	t
	l
e	a
	f
	a
	S

	,
h	y
e	t
	l
W	e

l

	&
-	B

lit

ua

ct

Q

u

d

o

y

r

P

et

af

e

&

S

l

b

i

&

s

n

g

y

o

n

p

i

c

s

t

n

e

e

e k

r

R

r

a

a p

M

s

n

a

r

T

g

n

i

e

y

Consumer Health & Well-Being

H
R	u
	m
i			a
	g			n
		h
			t
				s

S
u
Lp
i
p
v
l
ey
l
i
hC
oh
oa
di
n
s
R
CA
e
og
rg
n
ie
sc
n
e
u
rle
r
vt
ua
a
rt
t	i
ie
o	v
e
n&

ambition to make a positive impact with every drink as demonstrated in this report.

Throughout this report, we showcase the interconnectedness of our work. Look out for this icon for more examples of this in practice.

Read more in About this Report: Glossary ‣

EC no gm a gm

eu mn i et

ny

t

A

P d uv bo l ic

ca Pc oy l& i c y

C

G o

r

o p

v

o

&

e

r

r

a

n

t

E

a

e

t

n

h

c

i

c

e

s

Bi

r

o

di

ver

la

u

sity

irc

C

y

m

o

on

Ec

										e
										l
									b
									ig
									sn
										i
									n
										c
									or
									p u
								s o
								e
								R	S
						e	&		p
				U	s	s	h	i
			r
t	e		a	r	d
a			e	w
W
t
S

		e
	t
a
m		n
o
i
l	i
C t
c
A

2023 Corporate Responsibility Report 5

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

2023 GOALS & PROGRESS

For detail on methodologies and boundaries for our goals, see our Goal Methodology Table. For 2023, we have obtained limited third-party assurance of certain sustainability performance metrics by ERM Certification and Verification Services (ERM CVS). The assured data points are flagged in the Data Summaryand Sustainability Accounting Standards Board (SASB) Standards, located in the Appendixof this report.

ENVIRONMENT

SUPPLY CHAIN

HEALTH &

WELL-BEING

PEOPLE &

COMMUNITIES

Year	Goal	2021	2022	2023
Actual	Actual	Actual
2024	Engage bottlers and select suppliers representing 50% of Scope 3 emissions to set a science-based target	36%	44%	46%
2025	Obtain 100% of electricity from renewable sources	62%	74%	83%
2025	Improve our water use efficiency by 20%	7%	7%	5%
2025	Convert 100% of packaging to be recyclable or compostable*	95%	94%	95%
2025	Use 30% post-consumer recycled content across our packaging portfolio	24%	24%	27%
2025	Use 25% post-consumer recycled content in our plastic packaging	11%	18%	17%
2025	Achieve a 20% virgin plastic reduction across our plastic packaging portfolio	6%	11%	15%
2025	Send zero waste to landfill across our operations	92%	92%	93%
2030	Reduce Scope 1 and 2 emissions by 30%	9%	13%	21%
2030	Reduce Scope 3 emissions in select categories by 15%	3%	5%	12%
2030	Partner with our highest water-risk operating communities to replenish 100% of water used in our beverages	49%	55%	55%
in those communities
	Responsibly source our brewers and priority inputs
Ongoing	Responsibly source our coffee**	100%	100%	100%
	Responsibly source our cocoa***	81%	100%	100%
2030	Support regenerative agriculture and conservation on 250,000 acres of land	N/A	11,296	43,435
2025	Provide positive hydration in 60% of our products	56%	57%	59%
2025	Increase female representation in Director+ positions by 25% to 33% of the total	28%	31%	32%
2025	Increase people of color representation in Director+ positions by 25% to 21% of the total	17%	18%	19%

*Updated to include the addition of plastic packaging that are categorized as "recyclable with detrimental qualities" per the Association of Plastic Recyclers (APR).

**During 2021 and 2022, a small amount of coffee was received as conventional (0.38% and 0.36%, respectively) due to COVID-19 impacts, supplier error or shipping delays. In 2023, 0.002% of coffee (a single shipment) was received as conventional per a customer requirement.

***2021 was our final transition year, with 19% of cocoa purchased as conventional. At the end of 2021, all cocoa contracted going forward was 100% responsibly sourced through verification or third-party certification programs. This metric is updated from our 2022 Corporate Responsibility Report to reflect the percentage of responsibly sourced cocoa received during the year ended December 31, 2021.

2023 Corporate Responsibility Report 6

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

Environment

We are committed to reducing our environmental impacts and restoring resources in support of a regenerative and circular economy. We partner to accelerate and amplify our efforts, supporting climate resilience within our value chain.

STRATEGY • CLIMATE ACTION • WATER USE & STEWARDSHIP • PACKAGING & CIRCULAR ECONOMY

2023 Corporate Responsibility Report 7

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

Progress & Highlights

BY 2024		2023 ACTUAL
Engage bottlers and select suppliers representing 50% of Scope 3 emissions to	46%
set a science-based target
BY 2025		2023 ACTUAL
Obtain 100% of electricity from renewable sources	83%
Improve our water use efficiency by 20%	5%
Convert 100% of packaging to be recyclable or compostable	95%
Use 30% post-consumer recycled content across our packaging portfolio	27%
Use 25% post-consumer recycled content in our plastic packaging	17%
Achieve a 20% virgin plastic reduction across our plastic packaging portfolio	15%
Send zero waste to landfill across our operations	93%
BY 2030		2023 ACTUAL
Reduce Scope 1 and 2 emissions by 30%	21%
Reduce Scope 3 emissions in select categories by 15%	12%
Partner with our highest water-risk operating communities to replenish 100% of	55%
water used in our beverages in those communities
Read more in About this Report: Glossary ‣
Read more in Appendix: Goal Methodology ‣

ONGOING CHALLENGES

• Maintaining business growth while mitigating and adapting to climate change challenges, such as operational disruptions and material shortages
• Navigating the evolving policy and regulatory landscape for compliance and reporting
• Mapping a feasible glidepath to fleet decarbonization at scale in the U.S., given the lack of required technology, policy and infrastructure
• Balancing progress toward our goal for water use efficiency while enhancing and evolving our strict product quality and ingredient water standards
• Managing the inconsistency and underdevelopment of recycling and refillable packaging infrastructure, including the availability of post-consumer recycled (PCR) materials, alongside fragmented state and federal policies

FUTURE OPPORTUNITIES

• Continuing to reduce resource use while increasing climate resiliency measures
• Exploring new technology and electric heavy-duty trucks in support of fleet decarbonization
• Investing in water replenishment projects and deploying innovative and efficient water treatment infrastructure to enhance the benefits of water stewardship and work toward maximizing water efficiency
• Accelerating the rollout of innovative packaging and reuse solutions that reduce virgin plastic use or increase the value and availability of recycled materials
• Collaborating to secure federal packaging collection policy or other national-level mechanisms that harmonize efforts to build a circular economy

2023 Corporate Responsibility Report 8

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

STRATEGY

At KDP, our environmental sustainability strategy focuses on the areas of climate, water and packaging in an effort to reduce environmental impact, help to mitigate climate change risks and to build climate resiliency.

Our efforts include pursuing energy efficiency in our operations and products and working to decarbonize portions of our fleet and manufacturing operations through renewable and low carbon energy sources and technologies. In addition, we engage with key value chain partners as we work to advance joint climate goals. Our interconnected efforts and collaborations in biodiversity, deforestation, packaging, regenerative agriculture, conservation and water are fundamental to positively impact our climate journey.

We focus our water stewardship approach on water efficiency in our operations, water replenishment in our highest water-risk areas and water use within our value chain. We are also committed to supporting the reuse, recycling, repurposing and composting of our products and packaging in support of a more circular economy.

Core to our approach is the use of credible standards, disclosures and intentionally designed roadmaps to goals based on the tools and technologies available to us today. Addressing climate change and driving the transition to a circular economy is complex and requires scalable systems changes. Therefore, both individual and company responsibility and collective action are critical to advancing effective and efficient policy solutions, investing in infrastructure modernization and engaging consumers to act in more sustainable ways. To help make this happen, we partner with organizations, including state/provincial and municipal government leaders, recyclers, nonprofit organizations (NGOs), industry peers and suppliers.

MANAGEMENT APPROACH

KDP's cross-functional teams across all geographies, including Procurement, Packaging Innovation, Supply Chain, Environmental Health & Safety (EHS), Engineering and Sustainability, work to meet our established environmental goals across our supply chain, operations and products.

OurEnvironmental Policy,Climate Policy,Water Policy,Supplier Code of ConductandHuman Rights Position Statementgovern how we assess and work to mitigate risks associated with climate change and water. We also identify near-termand long-termstrategies to address environmental-relatedrisks to our business as noted in ourCDP Climate Disclosure,CDP Water Disclosureand our Task Force on Climate-relatedFinancial Disclosures (TCFD).

Specific to sustainable packaging, we leverage third-party design standards and guidelines, such as the APR Design® Guide for Plastics Recyclability to inform our packaging's compatibility with recycling against industry accepted criteria. We track and measure the impact of our efforts by reporting them through organizations including the Global Commitment, led by the Ellen MacArthur Foundation (EMF) in collaboration with the UN Environment Programme, U.S. Plastics Pact, Canada Plastics Pact and WWF's ReSource: Plastic.

We also work with regulatory agencies to meet and report on various packaging compliance regulations in place across North America, such as Extended Producer Responsibility (EPR) programs, Deposit Return Systems (DRS) and minimum recycled content requirements in place in certain jurisdictions.

Read more in Governance: Ethical Business Practices ‣

Read more in About this Report: Glossary ‣

Read more inCorporate Responsibility TopicsA-Z‣

OUR PATH TO 2030

We assess climate change risks most important to our business via a climate scenario analysis, a fleet operations assessment and periodic evaluations of our water risk in our operations and within our supply chain. This helps us to identify opportunities and implement measures for the communities and regions in which we operate. More detail can be found in our CDP Climate Disclosureand CDP Water Disclosure.

2020-2025

• Engage bottlers and select suppliers representing 50% of Scope 3 emissions to set a Science-Based Target (SBT)
• Obtain 100% electricity from renewable sources

2025-2030

• Reduce Scope 1 and 2 emissions by 30%
• Reduce Scope 3 emissions in select categories by 15%
• Encourage our value chain partners to set and make progress toward SBTs and transition to low carbon energy
• Scale regenerative agriculture solutions across the value chain

2030+

• Scale decarbonization of our fleet, including heavy-duty trucks, to electric and low carbon fuels, as infrastructure and technology allows
• Explore sustainable, low carbon fuels for our manufacturing operations
• Scale low carbon packaging solutions across brand portfolio
• Accelerate path to Net Positive Water Impact2 aspiration by investing in watershed health

2023 Corporate Responsibility Report 9

		Overview	Environment	Supply Chain	Health & Well-Being	People & Communities	Governance	Appendix

CLIMATE ACTION

We are working to reduce resource use and to increase resiliency measures to account for a changing environment. Our current 2030 Greenhouse Gas (GHG) emissions-reduction targets, validated by the Science- Based Target initiative (SBTi) are aligned to levels required to meet the Paris Agreement climate change goal of limiting global warming to well below 2°C3. Our future ambitions will be informed by evolving standards, such as SBTi's Forest, Land and Agriculture (FLAG) Guidance4 and the GHG Protocol's Land Sector and Removals Guidance5.

In 2023, we made progress toward our climate targets by increasing the electricity obtained from renewable sources to 83%. This is an increase from 74% in 2022. This continued transition to renewables contributes in

part to reduction of our Scope 1 and 2 emissions which in 2023 totaled 21%, compared to 13% the year prior. We also reduced emissions from our selected Scope 3 categories by 12% from the 2018 baseline, versus

5% in 2022. This decrease was driven in part by the improvement in the energy efficiency of our Keurig brewers. KDP continues to engage with our suppliers and bottlers to encourage them to set their own SBTs. At the end of 2023, suppliers and bottlers representing 46% of our Scope 3 emissions have set SBTs.

Read more in About this Report: Glossary ‣

Read more in Appendix: Data Summary ‣

Read more in Appendix: Goal Methodology ‣

GHG EMISSIONS BY CATEGORY

96% Scope 3 emissions accounted for more than 96% of KDP's 2023 GHG emissions.

					5%
	11%			9%
						28%
40%		SCOPE 1 & 2		48%	15%		SCOPE 3
	EMISSIONS*
							EMISSIONS*
		Fleet Fuels			19%			25%
		Natural Gas
		Electricity						Logistics
					Third-party Manufacturing
					Ingredients	Other**
					Packaging	Use of Products

*% of GHG Emissions by Category may not sum to 100% due to rounding.

**Ingredients and packaging are included in purchased goods and services; logistics includes upstream and downstream transportation and distribution; Other includes employee commuting, business travel, upstream energy-related activities, capital goods, professional services, etc. A more detailed breakdown of Scope 3 emissions can be found in the Data Summary.

PUBLIC POLICY SUPPORT

KDP knows that governments play an essential role in addressing climate change. We join other corporate leaders in acknowledging the important role we have in establishing and maintaining open dialogue with governments in support of healthy economies, substantial reductions in GHG emissions and robust adaptation measures. We support the creation of incentives to expedite investments in clean energy and transportation projects, along with initiatives to streamline permitting processes for the faster deployment of clean energy and enhanced grid resiliency.

2023 Corporate Responsibility Report 10